Full text of The Northwestern Banker : June 1941, Forty-Sixth Year, Number 647

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JUNE

1941

■

C H IE F R E D W IN G
L o o k in g n orth a c r o ss th e M is s is s ip p i R iv e r a t R ed W in g , M in n e s o ta

TH E

JU N E


Minnesota
- page 11
North Dakota - page 16
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C O N V E N T IO N S

Iowa Junior Bankers ~ page 18

Montana - page 22

South Dakota - page 5

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AMPLE FACILITIES
A m ple facilities d e v e lo p e d over more than
half a century of continuous ex p erien ce
e n a b le the M erchants N ational bank to
offer u n ex c e lle d service.

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J am es E. H am ilton , Chairman
S. E. Coquillettei, President
H. N. B oyson , Vice President
R oy C. F olsom , Vice President
Mark J. Myers , V. Pres. & Cashier
George F. M iller, V. Pres. & Tr. Officer
Marvin R. S elden , Vice President
F red W. S m it h , Vice President
J o h n T. H amilton II, Vice President
R. W. Ma n att , Asst. Cashier
L. W. B roulik , Asst. Cashier
P eter B ailey , Asst. Cashier
R. D. B row n , Asst. Cashier
0. A. K earney , Asst. Cashier
S tanley J. M ohrbacher , Asst. Cashier
E. B. Zb a n e k , Building Manager

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Member Federal Deposit Insurance Corporation

N o rth w e ster n B an k er, p u b lish e d m o n th ly b y th e D e P u y P u b lis h in g C om pan y, In c ., a t 527 7th S tr e e t, D e s M o in e s, Io w a .
S u b sc r ip tio n , 35c per cop y, $3.00 per year. E n tere d as se c o n d -c la s s m a tter at th e D e s M o in e s p o st office. C o p y r ig h t, 1941.


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June 19^1

P ayroll r o b b eries e a c h y e a r in v o lv e th e n e e d ­

a n d ex p er im en ta tio n — at all tim es k e e p in g

le s s lo ss of la r g e su m s of ca sh — freq u en tly

p a c e w ith i n c r e a s i n g d e m a n d s for s a f e t y .

a c c o m p a n ie d b y a c ts of v io le n c e a n d e v e n

» » A s a result. La M onte S a fe ty P a p ers are

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life. F o rtu n ately, th o u sa n d s

r e c o g n iz e d a s th e N a tio n 's sta n d a rd of p ro ­

of o r g a n iz a tio n s — a m o n g them the n a tio n 's

tectio n for ch ec k s a n d other n e g o tia b le in ­

la r g e st — refu se to tak e su ch c h a n c e s. T h ey

stru m ents. T od ay this p rod u ct is u se d a n d

p a y th e ir e m p l o y e e s th e s a f e w a y — “ b y

en d orsed

ch eck."» » A n ev e r in c r e a sin g n u m b er of th e se

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a n d v o u c h e r s c o v e r in g other re g u la r d isb u r se ­

su b m it sa m p le s of La M on te S a fe ty P a p ers

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m en ts. » » First in tro d u ced to B ank­
in g A m erica 70 y e a r s a g o , this
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SN U F F

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H E L and and T itle R ecords of N o rth K ingstow n, R . I.

w o rk , copying, in the latter’s studio. H e re he rem ained for several

show that on N ovem ber 5th, 1751 G ilbert Stuart, a Scotch

years, helping W est in the painting o f some o f his huge canvasses.

m illw right, entered into partnership w ith tw o gentlem en o f'N e w p o rt

U p o n reaching the age o f th irty , Stuart m arried and in 1788

for the purpose oi erecting a snuff mill on the Petaquam scott in

w e n t to Ireland w here he painted a num ber o f successful portraits.

the vicinity of N arragansett. H e re the snuff m aker built his hom e,

In 1793 he returned to A m erica. H is success was im m ediate and

a tw o -sto ry frame house w ith a gam brel roof. It was

he w orked diligently in N e w York and Philadelphia,

in the north-east bedroom that G ilb ert Stuart, the

executing the m any commissions given him by

po rtrait painter, w as born on D ecem ber 3rd , 1 7 5 5 .

some o f the great m en and beautiful w om en of

G ilb e rt’s father sold his interest in the snuff mill

those early days.

about 1 761 and m oved w ith his family to N e w p o rt,

Stuart was extravagant in his expenditures and

w here they lived in w h a t the artist later referred to

upon his death left little but some

as “ a hovel on B annister’s W h a rf” . A t the age o f

portraits. H is body lies som ew here in Boston C o m ­

thirteen G ilbert w as draw ing portraits in black lead

half-finished

m on, the exact spot being unknow n. A tablet upon

and one of his pastels, m ade in his early teens, m ay be seen at

the railing o f the C om m on, show n at the left, identifies

the Essex Institute at Salem . H is first really serious w ork was

artist as the “ Painter o f the portraits o f W ashington, Louis X V I

done in the studio o f the Scotch artist, Cosm o A lex an d er, w ho

and G eorge I I I ” and contains also the follow ing w ords: “ T h is

cam e to N e w p o rt to paint portraits o f several o f the c ity ’s w ell-

tablet placed by the Paint and C lay C lub 1897 ” .

the

to-do citizens. L ater Stuart accom panied his instructor to Scotland
and failing to support him self, after his m aster’s death, w orked
his passage hom e aboard a collier.
Soon after his return to N e w p o rt and w hile G ilb ert was pur­

The Home, through its agents and brokers, is America's leading
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suing his art and studying m usic, his father, w ho was a R oyalist,
fled to N ova Scotia leaving his family behind. H is property was
soon confiscated, and G ilb ert, sailing for E ngland just before the
Battle of Bunker H ill, found hirrtself penniless w alking the streets o f
L ondon. H e appealed to Benjam in W est for assistance and was put to

^ / O A U T71 I N S U R A N C E
e A n W l V l I j
COMPANY

* * *

NEW YORK * * *

M A R I N E

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I N S U R A N C E

n o r %h w e / t e r n

J U N E
19 4 1

FO RTY-SIXTH Y E A R

NUM BER 647

Oldest Financial Journal West of the Mississippi River

CLIFFO RD DE PUY
Publisher
R A L P H W. M O O R H E A D

IN THIS ISSUE

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

Across the Desk from the Publisher......... .............

J. STUART D A V IS
Associate Editor
527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

N EW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth A ve.

Suite 1202

Telephone MUrray Hill 2-0326
M IN N E A P O L IS O FFICE
Jos. A

>

Editorials

Sarazen

8

Feature Articles
Frontispiece .......... ......................................................
The Minnesota Convention............................. ...........
Minnesota Convention Committees..... ................... .
News and Views...........................................................
Chase National Stimulates Defense Program .......
Adopt an Outside Program ........................................
The North Dakota Convention.................................
Colorful Collection A ttracts Bank Customers.......
Iowa Junior Convention Program ............ ................
W hat the Legal Phrase Next of Kin Means_____
Know Where to Find the Answers........ ...................
The Montana Convention............. ..............................
The South Dakota Convention...................................

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

10

............................ 11

......................... 12
.Clifford De P u y 13

y

............................ 14
........... J. E. W ise 15
.................................. 16
...............................

>

17

.................................. 18
.................................. 20
..... C. Lane Goss 21

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

Y

22

................................... 23

Associate Editor
Telephone Hyland 0575

Bonds and Investments.
The Month’s Market Maneuvers...............................

CONVENTION CALENDAR
A m eric a n B a n k ers A s s o c ia tio n — H o te l
S te v e n s , C h icago, S ep tem b er 28-O ctob er 2.
A m eric a n I n s titu te o f B a n k in g — S t.
F r a n c is H o te l, S an F r a n c is c o , Ju ne
2- 6 .

N a tio n a l A ss o c ia tio n o f B an k A u d i­
to rs and C o m p tr o lle rs 17th A n n u al
N a tio n a l M e e t — C h ica g o , I llin o is ,
O c to b e r 8-11.

STATE CONVENTIONS
I o w a — H o te l F o r t D e s M o in e s, S ep ­
tem b er 8-9-10.
M ic h ig a n — Grand H o te l, M a c k in a c I s ­
lan d , Ju n e 26-28.
M in n e s o ta — S t. P a u l, Ju n e 11-13.
M o n ta n a — N e w F lo r e n c e H o te l, M is ­
s o u la , Ju n e 20-21.
N orth D a k o ta — H o te l P a tte r so n , B is ­
m arck, Ju n e 17-18.
O h io — N e th e r la n d s -P la z a H o te l, C in­
cin n a ti, Ju ne 4-5.
S ou th D a k o ta — H o te l F r a n k lin , D ea d w o o d , Ju n e 26-27.
U ta h — Grand C anyon N a tio n a l Park
L o d g e, N orth R im , Ju ne 13-14.

James H. Clarke 27

Insurance
Say It In English............................ ............................

.S tanley F. W ith e 33

State Banking News
Nebraska News ....... ....................................................
Omaha C learin g s...................... ...... ...................
Lincoln Locals ................................... ...........
South Dakota News............................................. .......
Minnesota News ............... .........................................
Twin City News........................... ................. .....
North Dakota News............... ...................................
Iowa News, ....................................................................
. Consolidation in Mason City...... ......................
Iowa Group Meeting Pictures...... ....................

39
41
43
45
49
56
59
61
64
67

The Directors’ Room
A Few Short Stories to Make You Laugh_______

82

M EM BER
Audit Bureau of Circulations
Financial Advertisers Association

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*

A re You a
Community ^Leader**

—in Fixtures
E v e r y community expects its bank to
be a "le a d e r" in all civic and com m ercial
affairs, but fa r too often the bank trails far
behind the drug store, the local "m ovie"
and even the filling station in the quality
of its fixtures.
W ith a very modest investment of time
and money, your bank can lead your com ­
munity in the appearance of its fixtures.
Furthermore, an attractive banking home
is the simplest way to increase your bank
profits.
L et th e F ish er C o m p a n y h e lp y o u r ban k beco m e a co m m u n ity
lea d er — no ob lig a tio n w hen ive p re se n t ou r p la n s to you .

E S T A B LISt-l E D
18 7 0

Charles City, Iowa

Northwestern Banker

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June 19kl

Across the Desk
From the Publisher

Unlimited National
Emergency Powers

Now th a t tlie nation
is operating un d er pow1
ers of unlim ited n a­
tional em ergency proclaim ed by P resid en t Roose­
velt, it is in terestin g to know w hat some of these
powers include.
A few of them are as follows :
1. Forbid federal reserve banks to do business
except under treasury regulations.
2. Investigate, regulate or prohibit transac­
tions in foreign exchange.
3. Place the Coast Guard under the navy.
4. Refuse clearance to vessels of a belligerent
country that discriminates against Ameri­
can vessels or citizens.
5. Empower the federal power commission to
require temporary connections for the trans­
mission of electric energy.
6. Require any vessels to leave the United
States waters or prohibit any vessel from
entering them.
7. Remove duties from imported food, cloth­
ing and medical supplies needed in emer­
gency relief work.
8. Waive or modify the monthly apportion­
ment of federal appropriations.
9. Order the National Guard and army and
navy reserves to active duty.
10. Suspend the law prohibiting more than 8
hours’ work in a day by persons engaged
on government contracts.
11. Suspend the rules covering transmission of
radio and wire communications.
12. Close certain places to the public under the
espionage laws.
13. Acquire land for military purposes.
Some of the powers m entioned are already in
effect to a g reater or less degree, but all of these

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June 19bl

powers can be p u t into effect w henever the P resi­
dent so desires.
In Septem ber, 1939, P resid en t Roosevelt p ro­
claim ed a “ lim ited em ergency” but he has now
proclaim ed an “ unlim ited em ergency” .
Some of the em ergency powers m ay be b ro ught
into use only a fte r a declaration of w ar, b u t the
m ajo rity are operative in various degrees of peril
or concern as determ ined by the P resident.

Taxes To Be
Increased 300%
For Some in 1942

The 1942 Tax Bill is
now being discussed in
Congress and it is ex­
pected to pass late in
A ugust. There are th ree im p o rtan t facts which
stan d out in the present Tax Bill, and they are
th e s e :
1. The hardest hit group includes persons with
annual incomes between $2,000 and $15,000,
of which there are some 6,300,000.
2. The increase in rates of taxes of persons from
$15,000 to $100,000 of income are much less
than those mentioned in paragraph one.
3. Married men with $2,000 a year income are
not taxed at all, yet 60 per cent of the whole
national income is received by them.
Thus the low er and m iddle b ra ck et groups will
be “ so ak e d ” three tim es as h ard as before, which
is a 300 per cent increase.
A nd fo r purely political reasons, more than
60 per cent of the national income received by
the millions who m ake $2,000 a y ear and less is
freed from any tax.
Maybe this is good politics, but it is not con­
ducive to national harm ony and u n ity about which
we h ear so much from W ashington and yet
w hich is practiced so little by the powers th a t be.
A nd if people are to be taxed to the lim it, why

9

sh o u ld n ’t the governm ent expenses be reduced
for non-defense item s?
J u s t read the testim ony by Dr. George F. Ben­
son, p resident of H a rd in g College of Searcy,
A rkansas, given before the ways and m eans com­
m ittee of the House when he suggested th a t 2
billion dollars of 11011-defense expenses of the
fed eral governm ent be discontinued.
He pointed out th a t if we do not ad ju st our
finances, 3 steps follow which are inflation,
socialism and dictatorship, and he s a id :
“ The entire history of nations and especially
the economic history of nations durin g the past
25 years, shows th a t we, the people of the U nited
States, are headed d irectly tow ard three steps
which occur in the follow ing order— inflation, so­
cialism and the w orst type of dictatorship. U n­
less the p roper initial steps are tak en by your
com m ittee and the finance com m ittee of the
U nited S tates Senate and the appropriations com­
m ittee it is my sincere belief th a t the people of
this co u n try will w itness these ev en ts.”
So we say, while taxes are being increased 300
per cent on some groups of people, l e t ’s help p re­
vent inflation by reducing non-defense expendi­
tures.

Are You Refusing
At a b a n k e rs’ convenTo Take Deposits? tion. the otbir day the

r
president of a very suc­
cessful bank located in a tow n w ith a population
of about 800, said he had recently refused a de­
posit of $1,500 because he did not know w hat to
do w ith the money.
W e suggested th a t he m ight even get some re ­
tu rn s on G overnm ent securities.
I s n ’t it bad psychology, bad banking, and poor
business to refuse deposits?
A prospective custom er or a present one should
be m ade to feel as much a t home in your bank as
in any m ercantile establishm ent.
Speaking of a desire to please custom ers, one
prom inent au th o rity said, “ Your public is actu­
ally confused as to who is doing who a favor
when Mr. A opens a checking account or Mr. B
contracts a loan. I think you have got to make
the public very clear on this point so that no cus­
tomer of a bank will be any more uncertain than
is the customer of a department store that his
custom is valued.”
A ny bank th a t refuses to tak e deposits m akes
it ju s t th a t m uch easier for the custom er to go
to some governm ent agency or to the post office
and p u t the m oney in P o stal Savings.
H elp to keep the public relations angle of your
bank on the rig h t plane by cooperating w ith your
depositors— this is no tim e to refuse deposits.

If bankers and P ro d u c­
tion C redit Associations
will cooperate, W illiam R.
Myers, head of the d e p a rt­
m ent of A g ricu ltu re Economics of the New Y ork
S tate College of A griculture, believes th a t b an k ­
ers can im prove the value of th eir services to the
farm ers and thus prevent socialized credit in the
U nited States.
Mr. Myers em phasized five points which he be­
lieves should he followed in the g ran tin g of farm
credits and the m aking of farm loans, and they
are as follow s:
1. Make farm loans for the period required for
their orderly repayment from the operating
income of the enterprise.
2. Make farm loans primarily on the basis of
repayment capacity of the farmer, with col­
lateral considered only as additional se­
curity.
3. Make farm loans on a budget basis in cases
where the amount borrowed justifies the ex­
tra labor involved.
4. Have agricultural credit handled by a man
who knows farming and farm management
as well as banking.
5. Do not make an effort to get farm loans un­
less you are w illing to finance good oper­
ators in bad times as well as good.

How io Prevent
Socialized Farm
Credit

These are suggestions w hich we believe every
banker can th o u g h tfu lly consider in deciding how
best to serve his farm er customers.

Congress Ignores
A t the beginning of
Advice of Federal the year- the Pederal
n
r
1
Reserve B oard, the presReserve Experts
idents of the twelve PFed.
eral Reserve Banks, and the F ed eral A dvisory
Council, w hich represents the 7,000 individual
banks of the F ed eral Reserve System, m ade a
recom m endation to Congress to prev en t fu tu re
inflation and one of the m ain points was to
“ Repeal Treasury authority to issue 3 billion
dollars of ‘greenback m oney’, repeal the Treasury
authority to issue money against the foreign sil­
ver it buys, and allow to expire June 30th, the
President’s power to devalue the dollar.”
R efusing to tak e the advice of these financial
experts, the House of R epresentatives voted re ­
cently 226 to 138 to continue the P re sid e n t’s au ­
th o rity to devalue the dollar and to extend the
life of the 2 billion dollar currency stabilization
fund which also expired Ju n e 30th.
Thus, Congress continues to refuse to tak e the
advice of the F ed eral Reserve B oard and its asso­
ciates on a sound program to prevent inflation.
N orthwestern Banker


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June 19J1

10

Northwestern Banker

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Jane 1941

11

The

M innesota
C O N V E N T IO N

Saint Paul, June 1 1 - 1 2 - 1 3

HEADQUARTERS — ST. PAUL HOTEL

K. O. S A T T R E
P r e s id e n t, M in n e s o ta B a n k ers A s s o c ia tio n

H E M innesota C onvention, to be
held th is y e a r at St. Paul, will
s ta rt off w ith a golf to u rn a m e n t on
the m o rn in g of W ednesday, Ju n e 11th,
on th e M idland H ills C ountry Club
course. Teeing-off w ill begin at 10:00
o’clock, and no one is to tee-off later
th a n 2:00 in th e afternoon.
T he pre-convention sm oker will
s ta rt at 7:30 o’clock on th a t evening,
w ith O. G. Jones presiding. T hese
sm okers are one of th e o u tstan d in g
e n te rta in m e n t featu res of every M in­
nesota convention, and of course th e re
will be p len ty of e n te rta in m e n t and a
real lunch following.
T h u rsd ay m orning, Ju n e 12th, w ill
be devoted e n tire ly to com m ittee m eet­
ings and th e A ssociation council m eet­
ing, and also th e M innesota E x am in ers
Club and th e P io n eer Club, all m eet­
ings tak in g place in designated room s
in th e St. P aul H otel. No luncheon
has been a rra n g e d for th e m en, b u t
th e ladies w ill be e n te rta in e d a t a
luncheon in th e m ain dining room of
th e St. P aul A thletic Club.
T he first session of th e convention
w ill be called to order a t 1:15 p. m.
on T hursday. T h a t evening the a n ­
nual b an q u et and dance w ill tak e place
in th e C ontinental Room of th e St.

T

P aul Hotel, w ith ajo u rn m en t at noon
th e follow ing day, on F riday.
T he program reads as follows:

Wednesday Evening, June 11
7:30 P. M.

Pre-C onvention Sm oker—St. P aul A th­
letic Club; Vice P resid en t O. G.
Jones, presiding
R eport of N om inating Com m ittee
A w arding of Golf P rizes
E n te rta in m e n t? —“F loor Show ” ’nuff
sed!
S m orgasbord L unch—B est Ever!

Thursday Morning, June 12
T h u rsd ay m orning devoted only to—
C om m ittee M eetings
Council M eeting, 10:00 A. M., Rooms
232-4, H otel St. Paul
M innesota E x am in ers Club, 10:30
A. M., P arlo r 334
M eeting of “The P ioneer Club”, 11:00
o’clock, Rooms 232-4, H otel St. Paul
(Giving delegates am ple tim e to
v isit and shop)

Thursday Noon, June 12
L uncheon for Ladies, St. P aul A thletic
Club (Main D ining Room)

Thursday Afternoon, June 12
1:15 P. M.

Call to O rder—C ontinental Room, H o­
tel St. Paul

Invocation—Rev. John J. Cullinan,
P astor, C athedral of St. Paul
P re sid e n t’s A nnual A ddress—K. O.
Sattre, Vice President, Blue E a rth
State Bank, Blue E a rth
R eports of Council of A dm inistration,
Secretary and T re a su re r w ill be
m ailed to m em bership
A ddress—B. M. E dw ards, P resident,
South Carolina N ational Bank, Co­
lum bia, South Carolina, and A ssist­
a n t to the Secretary of the U nited
States T reasu ry
A ddress—“Econom ics of W ar F in an c­
ing,” Dr. Paul F. Cadman, Econom ist
for th e A m erican B ankers Associa­
tion

Thursday Evening, June 12
6:30 P. M.

A nnual B anquet—C ontinental Room,
H otel St. Paul
E n te rta in m e n t—D unninger, “The Mas­
te r Mind of M odern M ystery”
D ancing—W ally Olson’s O rchestra

Friday Morning, June 13
10:00 A. M.

A ddress—H. V. K altenborn, N ationally
know n Radio C om m entator, N ation­
al B roadcasting System
A. B. A. Elections
R eport of R esolutions Com m ittee
Northwestern Banker


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Federal Reserve Bank of St. Louis

Jane 19^1

12
E lection of M. B. A. Officers
M em bers of th e several com m ittees
w hich have charge of convention af­
fairs, m ade up of St. P aul b ankers, is
as follows:

General Committee
A. B. L athrop, chairm an, F irs t N a­
tional Bank; H. B. H um ason, A m erican
N ational Bank; C. E. Johnson, E m p ire
N ational B ank & T ru st Company; and
A. L. R itt, M idw ay N ational Bank.

Entertainment Committee
C. T. Dedon, chairm an, E m p ire N a­
tional B ank & T ru st Company; W. L.
Boss, F irs t N ational Bank; J. A. Cavitzel, A m erican N ational Bank; Guy E.
Dailey, A m erican N ational Bank; Leo
R itt, M idway N ational Bank; and E.
M. V olkenant, F irs t N ational Bank.

Golf Committee
A. W. Sands, chairm an. W estern

State Bank; M. F. E rn st, vice ch air­
m an, M idway N ational Bank; P. A.
K ippels, E m pire N ational B ank &
T ru st Company; B. B. Knopp, F irst
N ational Bank; and C. A. Maley,
A m erican N ational Bank.

Women's Entertainment Committee
Miss M arie B. Nielsen, chairm an,
F irs t N ational Bank; Mrs. F rances
Busch, F irst T ru st Company; Miss
D orothy P ain ter, E m p ire N ational
B ank & T ru st Company; Miss Lillian
Teig, A m erican N ational Bank; and
Mrs. Naomi C. W ard, F irs t B ancredit
Corporation.

Retention Schedule
For Bank Records
A com prehensive stu d y of th e in te r­
esting and perplexing problem s of
p reserv atio n and destru ctio n of bank
records has been issued in booklet

form by a special com m ittee of th e
Chicago B ank A uditors Conference, L.
H. H am m erstrom , auditor, C ontinental
Illinois N ational B ank and T ru st Com­
pany, as presid en t of th e Chicago Con­
ference, announced.
The booklet has tw enty-four pages
containing detailed rep o rts of the com­
m ittee’s findings and includes a sched­
ule listing th e m inim um re tain m en t
period of m ore th a n 175 b ank records.
The com pilation covers a large p a rt of
th e records and docum ents o rd in arily
routed to and stored am ong b ank a r­
chives and is intended as a stan d ard
procedure for use in banks generally.
Copies of th e booklet m ay be ob­
tained from th e ch airm an of th e com­
m ittee, R. O stengaard, com ptrollerauditor, The Live Stock N ational B ank
of Chicago, at th e nom inal price of 50
cents each, to cover production and
m ailing costs.

St. Paul Bankers
on
Minnesota
Convention
H. B. H U M A S O N
G eneral C o m m ittee

Committees

A. B. L A T H R O P
C hairm an G eneral C o m m ittee

C. E. J O H N S O N
G eneral C o m m ittee


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

C. T . D E D O N
C hairm an E n te r ta in m e n t C o m m ittee

A. W . S A N D S
C hairm an G o lf C o m m ittee

13

News

and

OF

B A N K IN G

THE

V iews
W O RLD

By Clifford De Puy

T

O OUR banker-golfer friend s w e

give th e follow ing poem, w hose
a u th o r is u n k n o w n b u t he m u st have
been “m ost fa m ilia r” w ith th e game:
T th in k th at I sh all n ev er see
A hazard rou gh er than a tree
A tree o’er w h ich m y hall m u st fly
If on the green it is to lie;
A tree w h ich stands that green to
guard
And m akes th e sh ot extrem ely hard:
A tree w h ose lea fy arm s extend
To k ill the m ashie shot I send;
A tree w h ich stands in silen ce there
W h ile angry golfers rave and sw ear.
N ib lick s w ere m ade for fools like m e,
W ho cannot ever m iss a tree.
George J. Schaller, form er p resid en t
of th e F ed eral R eserve B ank of Chi­
cago, spoke before th e m eeting of
G roup 2 in his hom e tow n of Storm
Lake, and am ong o th er thin g s he said:
“B an k ers today m u st m erchandise
th e ir service th e sam e as an y m e r­
ch a n t or m a n u fa c tu rer on a cost-plus
basis—I believe we are in for a long
period of easy m oney—The b est place
to develop new loans today is rig h t
in y o u r ow n te rrito ry —T his is a g reat
tim e for th e producer b u t n o t th e con­
sum er —T his is a good tim e to have
b an k cu stom ers pay off th e ir debts—I
am no frien d of th e 40-hour w eek be­
cause w e m u st n o t cu rtail our service
to th e public—Service is rem em bered
long a fte r th e price is fo rg o tten .”

W hile v isitin g th e new 35 m illion
dollar eq u ip m en t a t F ort Leonard
W ood, located betw een R olla an d L e­
banon, M issouri, we w ere in terested
in signs w hich we saw in th e b u ild ­
ings u n d e r co nstruction, tw o of w hich
signs are as follows:
“AATe spend tax m oney—don’t w aste
it.”
“E conom y m arks the m aster build­
er.”

M ight suggest th ese to our congress­
m en.

p ro p er language to use now in re ­
fe rrin g to th e young m en w ho are
joining th e colors.
F ort Leonard AA7ood has 1,537 p e r­
m an en t buildings, and w ill be a p e r­
m an en t project, because it is a fort
and n ot a camp.
W hile th e original estim ate for th e
cost of th e cam p w as $28,000,000, it
finally cost $35,000,000, of w hich $3,000,000 w as used to build a railroad 27
m iles long in order to get m aterials
and m en to th e camp.
Over 32,857 m en w ere em ployed at
th e peak on construction w ork. The
cam p site pro p er occupies 5,000 acres.
B etw een 35,000 and 40,000 soldiers w ill
be en train ed at th is camp.
The acorn show n in the 70th an n i­
v e rsary ad v ertisem en t of George LaM onte and Son w as tru ly symbolic.
F o r an o th er acorn in th e form of a
young gentlem an joined th e LaM onte
Clan last m onth. He is th e son of
George A7. LaM onte, Jr., and is the
fifth generation, and a t the last rep o rt
his first nam e will definitely be George.
C ongratulations.
A rthur T. D onhow e, vice president
of th e Centra] N ational B ank and
T ru st Company, Des Moines, received
th e endorsem ent of Group 6 as a candi­
date for th e A ssociation presidency,
w h en th ey m et last m onth in Pella.
The resolution w as rig h t to th e point,
endorsing “our fellow b an k er from
th is G roup,” and gave A rth u r a good
send-off from his hom e group.
Joe AAr. K ing of th e Todd Company
w ho rep resen ts th e B ankers Supply
Division of th a t w ell-know n R ochester
firm, tells us th a t business in his te rri­
to ry increased 233 per cent from J a n u ­
a ry 1, 1941, to May 17th of th is year.
Joe trav els out of th e Des Moines
office and covers the H aw keye state
and is well know n to h u n d red s of
b an k ers in th is area.

Brigadier-G eneral U ly sse s S. Grant

(a g ran d so n of P re sid e n t U. S. G rant)
is in charge of th e E n g in e e rs’ R eplace­
m en t T rain in g C enter a t F o rt L eonard
Wood, of w hich th e re are only tw o in
th e U nited States. T he o th er one is a t
F o rt Belzoir, V irginia.
S electees and n o t draftees is th e

AA7. D ale Clark, presid en t of th e
Om aha N ational Bank, in a recen t let­
te r said:
“D ear Cliff:
“A fter peru sin g th e May issue of the
N orthw estern B anker , I am inclined
to suggest to the m anagem ent of your
publication th a t a change be m ade in

th e personnel of th e chief editorialists,
both in co n ten t and th e accom panying
picture.
“All of w hich is to say th a t I found
the article about N assau by y o u r
daughter, E v e ly n D eP uy, th e m ost in­
terestin g one in th e w hole issue.”
S. E. C oquillette, presid en t of th e
M erchants N ational Bank, of Cedar
Rapids, w hen he learned th a t Rudolph
H ess, th e No. 3 Nazi, had landed in
Scotland said he w as glad of it be­
cause, “N ow H ess is in a real tigh t
spot.”
R udolph Schroeder, presid en t of th e
Buffalo Savings Bank, tells th e story
about th e fellow w ho said “Did you
h ear W allace’s speech?” And th e
o th er fellow answ ered “Yes, b u t a good
ra in w ould have been a dam n sight
b e tte r.”
P rofessor George D. H askell of the

Econom ics D ep artm ent of th e U ni­
versity of Iow a believes th a t farm in ­
comes w ill be h igher th a n a y ear ago,
b u t th a t farm su rpluses are v ery large
and th a t th ere is no shortage in sight.
In th e in d u strial field, how ever, cop­
per, alum inum and steel are now be­
ing m an u factu red a t capacity produc­
tion, b u t this is not tru e of ag ricu ltu ral
products.
He believes th a t labor u n re st w ill
continue and increase and th a t ta x a ­
tion will p rev en t some price increases,
b u t th a t prices w ill rise if credit is ex­
panded.
H o y t R. Y oung, cashier of th e A m er­
ican N ational B ank of A rlington and
p resid en t of th e Iow a B ankers Asso­
ciation, tells th e sto ry of th e farm er
w ho w as using a big roller over his
farm , and w hen asked w h at he w as
doing th a t for, replied: “Oh, I am ju st
raisin g m ashed potatoes.”
John T. H am ilton, II, vice p resid en t
of th e M erchants N ational B ank of
Cedar Rapids, is now a skiing expert,
as he becam e v ery proficient in th is
outdoor pastim e w hile vacationing at
Sun Valley, b u t w ith w arm w eath er
he is trad in g skis for golf clubs.
R aym ond C. D eering, a ssistan t com p­
tro ller of th e M anufacturers T ru st
Com pany of New York, w rote us a
le tte r recently w hich is self-explana­
tory, and w hich we are v ery glad to
re p rin t here, as w e w an t to give full
credit to Mr. D eering for his fine
article on “Pay-As-You-Go vs. A naly­
sis ” of b an k accounts.
In his le tte r to us Mr. D eering said:
“At th e E a ste rn Regional Confer­
ence of th e N ational A ssociation of
A uditors and C om ptrollers, w hich w as

Northwestern Banker

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

June 1941

14

Chase National Bank
Stimulates Defense Program

held in th e city of Boston, M assachu­
setts, I delivered a talk on th e topic of
Pay-As-You-Go vs. Analysis.
“W hile reading the May issue of th e
N orth w estern Banker, I w as quite
pleased to note th a t you featu red a
sm all p a rt of m y talk in your editorials
‘A cross the D esk from the P u b lish er.’

N MAY 1, w hen the U nited States
T re a su ry in a u g u ra te d th e n a tio n ­
w ide cam paign for th e sale of th e new
U. S. D efense Bonds, th e Chase N a­
tional B ank of New Y ork used th e
ad v ertisem en t reproduced below in
six-colum n space in New Y ork papers.
T he illu stratio n in th e ad v ertise­
m ent, show ing th e gears enm eshed,
sym bolizes th e relatio n of citizens’
dollars to th e actu al defense itself—
in th is case an arm y tra in in g camp.

O

The heading of the advertisem ent,
“Now Dollars, Too, Can E n list,” has
becom e a slogan—has been picked up,
com m ented upon and used by m any
n ew spaper colum nists and others. The
a rt w ork, both in reg ard to subject
m a tte r and treatm en t, has attracted
th e a tten tio n of m any people. The
Chase N ational Bank, like thousands
of o th er banks th ro u g h o u t the N a­
tion, is giving its full su p p o rt to the
N ational Defense projects.

;x u v / c l i

^

t

low Dollars, too, can Enlist
T

oday

the stirring notes o f the bugle, ech o in g

through co m p an y streets, sound reveille for the

THE U. S. GOVERNMENT OFFERS:

S
ERIESE-Appreciation Bond. Registered. Not transferable.
Denominations: $25, $50, $100, $500, and $1,000. Dated first of

nation’s dollars.

T h e commercial banks throughout the land,
answering a new call, are offering their services
— without compensation or profit — to further the
sale of United States Defense Bonds.
Th e Chase National Bank welcomes the op­
portunity to cooperate with the Government in
making these bonds available to its customers and
to the general public.

S
ERIESG-CurrentIncome Bond. Registered. Not transferable.
Denominations: $100, $500, $1,000, $5,000, and $10,000. Dated
first of month in which payment is received. Matures 12 years from
issue date of bond.
2.5 percent a year. Interest is paid semiannually by Treasury check.
This bond is priced at par. It is redeemable at par if it is held by the

Be among the first to place your dollars in
the service of your country

THE C H A S E

N A T IO N A L

O F THE C IT Y OF NEW Y O R K
Head Office: P in e Street CORNER OF N assau
-BRANCHES IN CREATER

Northwestern Banker

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

Jane 19bl

BANK

H ow ever, I am ra th e r u p set to note
th a t m y view points and opinions on
th is subject have been seriously m is­
in terp reted . Y our article is concluded
by statin g ‘and each b an k er m u st de­
term in e w hich m ethod is best suited
to his own individual com m unity re ­
qu irem en ts,’ w hereas th e m ain point
stressed in m y talk on this subject
w as ‘it is m y firm conviction th a t payas-you-go and analysis both have defi­
nite places in the m odern bank of to ­
day.’
“No doubt the p rin ted in te rp re ta tio n
w as the re su lt of having available
only an excerpt of m y com plete talk
and th erefo re I can realize th a t you
w ere not in a position to correctly
state m y opinions on this subject.
“You will, no doubt, agree th a t the
num erous subscribers of y o u r publica­
tion, upon reading th e article, w ill also
come to a conclusion directly opposite
to th e one I conveyed at th e above
m entioned conference.
“I w ould greatly appreciate it if you
will, in y o u r n ex t issue, correct the
m istaken in te rp re ta tio n in w h atev er
w ay you see fit.”
W eir Jepson has recen tly been
elected presid en t of th e B ethlehem
B ank of B ethlehem , Pennsylvania.
Mr. Jepson is a native of Sioux City,
and a grad u ate of th e U n iv ersity of
Iowa. He becam e connected w ith the
B ethlehem N ational B ank w hen th e
ban k w as organized in 1934, at w hich
tim e he w as elected vice presid en t and
cashier.
P. T. Grim es, presid en t of the Davis
C ounty Savings B ank of Bloomfield,
m ade a m otion, w hich w as seconded
by J. E. K ing, p resident of th e Peoples
N ational B ank of Albia, and w as
unanim ously carried, to endorse Max
von Schrader, cashier of th e U nion
B ank and T ru st Com pany of O ttum w a,
for th e presidency of th e Iow a B ank­
ers A ssociation — th e endorsem ent
com ing from G roup 10 w hich m et at
K eosauqua.
A rthu r B rayton, secretary of th e Des
M oines C onvention B ureau, w as a
speaker a t both the T ipton and Keo­
sauqua conventions, and d em onstrated
again his excellent ability as a speaker
and story-teller.
One oP-his stories w as th a t F ran klin
R oosevelt w as in a New Y ork hotel,

15
and w an ted to get a check cashed one
night, and ’phoned dow n to ask the
clerk if he could cash a check for $250,000.
T he clerk said th a t he w as v ery
sorry, b u t th e b an k s w ere closed, and
he w ould like to accom m odate the
president, b u t he d id n ’t see how th ey
could do so, b u t E lean o r broke in on
th e line and said, “Oh, ju st m ake it
$25, F ra n k lin doesn’t know th e differ­
ence.”

If anyone th in k s th a t the laboring
m an today is not being fully paid for
his w ork, recen t figures show th a t
w h en th e ir earnings are ad justed for
th e cost of living, the purchasing
pow er of current earnings of factory
w orkers is t2 per cent h igher th a n the
1937 peak, and 17 per cent h igh er than
the 1929 peak.
John Li. Krall, cashier of the F airfax
State Savings Bank, w as elected ch air­

m an, and C harles S. M cK instry, vice
presid en t of th e N ational B ank of
W aterloo, w as elected secretary of
Group 7 w hen it m et at Cedar Rapids.
The Cedar Rapids Golf and C ountry
Club w as the scene of a real golf m atch
betw een four o u tstanding players d u r­
ing the m eeting of Group 7. T hey in ­
cluded R ichard R. R ollins (84), vice
p resid en t of th e B ankers T ru st Com­
pany of Des Moines, W ard M cFadden

To ncrease V o l ume ol
Farm Lo ans, and to
improve Service to Community,
Country Banks Should

Adopt A n
OUNTRY b an k s are u rged to
adopt an “outside p ro g ram ” de­
signed to increase th e volum e
of th e ir farm loans, im prove and ex­
ten d th e ir services to th e ir com m uni­
ties, and increase b an k in g know ledge
of farm in g procedure, by Jo h n E.
Wise, p resid en t of th e W illard U nited
B ank, W illard, Ohio.
Mr. W ise declared th a t present-day
b an k ers “recognize a radical change
in our ru ra l population, a change in
w ays of th in k in g and m ethods of fa rm ­
ing, a change in a ttitu d e s involving
com petition n ev er th o u g h t of tw en ty
y ears ago. E ith e r we are e n terin g
upon, or are already engaged in a newera program , involving new practices,
new ideas, and new m ethods, h u t we
still re ta in th e old fu n d am en tal ideas
p ertain in g to good banking.
“Before atte m p tin g an outside p ro ­
gram ,” Mr. W ise counseled, “it is w ell
to spend some tim e in self-analysis to
see if you are th e p ro p er person, or if
th e re is som eone in y o u r organization
w ho is now, or w hom you feel can be
train ed , to becom e th e p ro p er person
to tak e charge of y o u r ru ra l w ork.
“The person you select m u st be
som eone w ho is in terested in ru ra l life
and people. M ore th a n th a t, he m u st
know som ething of th e practical side
of ru ra l life; som ething concerning
soil, fe rtility , live stock, m achinery,
and ru ra l social life.
“W ith th e p re se n t com petition w hich
th e b a n k e r m u st m eet, we can also see
th a t th e tim e has come w hen th e b a n k ­
er and th e farm er to g eth er are re-

Outside Prog ram

C

j. E. W IS E

sponsible for loans. I realize th a t it is
im possible to be an ex p ert in m any
lines, b u t I am sure th a t the average
ru ra l b an k er know s enough about ag­
ric u ltu ra l conditions and problem s of
his own com m unity to be able to give
good advice and sound counsel to his
custom ers. Above every th in g else, he
m u st have th e happy faculty of really
being a friend and of gaining the re ­
spect and confidence of his com m u­
nity. W h atev er you do, you m ust be of
real value to th e farm er and his com­
m unity, and n o thing should be done
for m ere advertising.
“F irst, I suggest cooperation w ith

county agents and hom e agents in the
4-H club program of your county.
Som etim es, if you have a w ide-awake
county agent, you w ill find your 4-H
club program w ill be so well developed
th a t y o u r p a rt will have to be m ore
in th e n atu re of supplem enting his
w ork and perhaps th a t of sponsorship
of the projects he has initiated.
“A nother op p o rtu n ity and one of
m uch im portance is th a t of the social
life of ru ra l com m unities. It is neces­
sary to study the people of your com­
m unity, th e ir social problem s, th e ir
form of en tertain m en t, and w h at you
can co n trib u te to this p a rt of th e ir
lives. Som etim es it m ay be a study of
soil and for w h at it is best adapted;
som etim es a study of m arkets. Again,
we m ay be able to ren d er service and
invaluable aid to our com m unity by
em phasizing th e idea of good seed.
The study of live stock offers a b ank
an o p p o rtu n ity to raise the live-stock
stan d ard s in its banking territo ry .
Some ban k ers d istrib u te thoroughbred
calves and finance them for farm boys.
“The study of credit needs and
w here farm ers borrow th e ir money,
and of com petition, are im portant.
F ran k ly , I believe th a t the inform ed
ru ra l b an k er can give, and is now
giving b e tte r service to th e farm er
th a n any o ther type of financial in sti­
tu tio n or governm ent agency. Our
program is m ore th a n a study pro­
gram . It invovles going out into the
hay fields or w h eat fields, in th e dairy
barns, and m eeting our farm er friends
w here th ey live.
Northwestern Banker


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

June Í9M

16
(78), of Scarborough and Com pany,
Chicago, F red I). C um m ings, (89), re p ­
resen tativ e of th e D rovers N ational
B ank of Chicago, and John H aas (80),
a ssista n t cashier of th e N o rth e rn T ru st
Com pany of Chicago.

The

F ran k W arner, secretary of the
Iow a B ankers A ssociation, in speak­
ing before the Iow a group m eetings
said th a t th ere w ere 157 bills affect­
ing banking w hich w ere introduced
in th e last legislature, and th a t these

w ere all studied and analyzed care­
fully.
Of course, m any of th em w ere not
passed, and it is to th e credit of the
excellent w ork w hich Mr. W arn er did
(T u rn to page 24, please)

North Dakota Convention

Thirty-ninth Annual Meeting to Be Held in Bismarck on June 17 and 18.
Sessions will Convene in Convention Hall, C ity Auditorium
ISMARCK b an k ers w ill play host
on T uesday and W ednesday, Ju n e
17th and 18th, w hen th e th irty n in th an n u al convention of th e N o rth
D akota B ankers A ssociation is held in
N orth D akota’s capital city.
E n te rta in m e n t will s ta rt off w ith a
stag-sm oker held in the evening of
M onday, Ju n e 16th, begin n in g a t 8:00
p. m. a t the P rin ce Hotel. T his en­
te rta in m e n t is provided for visiting
ban k ers and guests by th e Bism arckM andan clearing house association.
O ther convention features, aside from
the sessions them selves are as follows:
Golf: No re g u la r golf to u rn a m e n t
has been a rran g ed b u t th e B ism arck
golf course is open to all b an k ers and
th eir guests reg istered a t th e conven­
tion.
Dance: N ine o’clock p. m., Tuesday,
Ju n e 17th, w ill be held a t th e Dome,
ju st off th e highw ay on No. 10 betw een
B ism arck and M andan. T his w ill be
a priv ate p a rty for ban k ers, th e ir
guests, and ladies.
Transportation: The tra n sp o rta tio n
com m ittee, in charge of L. P. W arren,
w ill be p rep ared a t all tim es to provide
m eans of tra n sp o rta tio n to points of
in tere st about th e city, to th e Bis­
m arck C ountry Club, or to th e dance.
Inform ation: An inform ation desk
w ill be m ain tain ed at th e P a tte rso n
H otel w h ere you m ay receive or leave
w ord for or from y o u r wives, sw eet­
h earts, or fellow bankers.
R egistration: A re g istra tio n fee of
$3 w ill be charged in order to assist
th e convention city d efraying conven­
tion expense. No fee w ill be charged
for ladies. Y our re g istra tio n badge
will en title you to adm ission to all
convention activities and e n te rta in ­
m ent features.

B

PROGRAM
Tuesday, June 17, 1941
Convention Hall, City Auditorium
10:00 o'clock

Invocation—Rev. W. E. V ater
Northwestern Banker

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Federal Reserve Bank of St. Louis

June Î941

W elcome to B ism arck—N. O. C hurch­
ill, P resident, City Commission
R esponse—J. I. Hegge, Vice P resident,
N o rth D akota B ankers Association,
P resident, F irst N ational Bank,
H illsboro
P re sid e n t’s A ddress—M artin Aas, P res­
ident, N orth D akota B ankers Asso­
ciation, Vice P resident, F irs t State
B ank, New Rockford
A ppointm ent of Com m ittee of Reso­
lutions
A nnual R eport of S ecretary—C. C.
W attam
A nnual R eport of T re a su re r—W. R.
Sandager, Cashier, F a rm e rs State
B ank, Lisbon
R eport of Com m ittee on A griculture
—F. A. Irish, C hairm an, P resident,
The F irs t N ational B ank and T ru st
Com pany, Fargo
Address: “The B ank’s P a rt in N ational
D efense,” Otis R. Preston, F ederal Re­
serve Bank, M inneapolis
L uncheon: P atte rso n Hotel, 12:00 p. m.

Afternoon Session
1:30 P. M.
Patterson Hotel

A ddress—H. W. Koeneke, Vice P resi­
dent, A m erican B ankers A ssociation
Address: “A griculture and th e W ar”
—J. H. E vans, D eputy M inister of
A g riculture, W innipeg, M anitoba
Address: “Ideals in th e Profit S ystem ”
—H a rry Swift, M archant Calculat­
ing Company, M inneapolis, M inne­
sota
3:30 P. M. A djournm ent

Wednesday, June 18, 1941
Morning Session, 10:00 A. M.
City Hall

10:00 A. M., O pening Session
P residing, P resid en t M artin Aas
R eport Com m ittee on N om inations A.
B. A. Officers for N orth D akota
E lection A. B. A. Officers for N orth Da­
kota
R eport Com m ittee on N om inations,
State A ssociation Officers
E lection S tate A ssociation Officers

A ddress—J. A. G raham , State E xam i­
ner, B ism arck, N orth D akota
Address: “D eductibility of Charge Offs
and T axability
of R ecoveries,”
C harles A. P reston, T ax A dvisor for
M innesota B ankers Association, St.
Paul, M innesota
R ound Table D iscussion
U nfinished B usiness
New B usiness
R eport Com m ittee on R esolutions
Selection 1942 C onvention City
A djournm ent
12:30: D utch Lunch, W orld W ar Me­
m orial B uilding A djoining City A u­
ditorium

Ladies Program
Tuesday, June 17th
1:00 P. M. L uncheon and Bridge P arty ,
B ism arck C ountry Club
9:00 P. M. Dance, Dome
Local b ankers and ladies nam ed on
the several convention com m ittees are
as follows:

General Entertainment Committee
Jo h n A. G raham , chairm an, F red B.
H eath, R ay M adsen, E. D. Saltzm an,
F. A. Vogel.

Reservation Committee
R obert Birdzell, H. E. H anson, Joe
Thom as.

Transportation Committee
L. P. W arren, G. H. K enney, V ernon
Onstad.

Registration Committee
Miss A ntoinette A. Lux, Miss D oro­
th y George, Miss Ja n e tte Jensen.

Entertainment Committee
A.
A. M ayer, B. F. L aw yer, George
Thom pson, N. I. Roop, Theo. Sette.

Ladies Entertainment Committee
Miss H elen B aker, Mrs. Geo. E.
B rastrop, Mrs. F. B. H eath, Mrs. B. F.
L aw yer, Mrs. Jam es M. Little, Mrs.
Ray M adsen, Mrs. A. A. M ayer, Mrs.
N. I. Roop, Mrs. E. D. Saltzm an, Mrs.
Theo. Sette, Mrs. Geo. Thom pson, Mrs.
F A. Vogel, Mrs. L. P. W ai’ren.

17

The b e a u t i f u l b a n k i n g home of the W in o n a N a t io n a l a n d S a v in g s B a n k
a t W in o n a , M i n n e s o ta

Colorful

Collection
Attracts Bank Customers

H E N b an k ers speak of collections
th e y are u su ally th in k in g in
term s of m oney or negotiable paper,
b u t in th e W inona N ational & Savings
Bank, a t W inona, M innesota, is a col­
lection w hich had its origin several
th o u san d m iles from the U nited States,
and w hen alive w as probably m uch too
active to be considered as frozen as­
sets. W e are speaking of th e collection
of A frican gam e tro p h ies w hich are on
display in several room s opening off
th e m ezzanine floor of th e ban k in g
building.
H ere is how it all happened. In
1924, and again in 1926, E. L. King, w ho
is p resid en t of th e W inona N ational
& Savings Bank, and Mrs. K ing and

W

E. L., Jr., w ent on a h u n tin g trip for
big gam e in Africa. The exhibits on
display in th e ban k w ould indicate
th a t the p a rty w as m ost successful in
its h u n tin g endeavors, and w ere also
able to obtain th e services of an ex­
cellent taxiderm ist, since the several
m ountings are indeed n atu ra l and life­
like.
In one room stands a lion m ounted
in a glass case; in an o th er room are
heads of a black rhinoceros, and h ip­
popotam us, and in this room also a
lion head. In an o th er large glass case
here we find a huge ostrich.
In an o th er room at one end of the
building appears the display of a n te ­
lope and gazelle heads w hich is pic­

tu red below. T h irteen species of a n te ­
lopes are rep resen ted in th is collection,
w hich also includes a n um ber of ga­
zelles. N um erous varieties of the a n te ­
lope fam ily inh ab it Africa, from the
jack-rabbit-sized dik-dik, w eighing six
pounds, to th e eland standing six feet
high a t the shoulders and w eighing as
m uch as fifteen hun d red pounds.
To m ake a com plete asso rtm en t a
great deal of tim e and patience tra v e l­
ing from one locality to an o th er w ould
be necessary. A species m ay be ab u n ­
d an t in one locality and entirely absent
th irty m iles distant. T here are n u m er­
ous sub-species w hich differ v ery little
from the original. A ntelopes are all
(T u rn to page 28, please)

A bove, le ft, is a p a r t o f t h e disp lay of old c h in a in th e W in o n a N a t i o n a l & S a v in g s B a n k . A t the rig h t
is a glass case c o n ta i n in g a n te lo p e a n d gazelle h e ad s w h ic h are in clu d e d in a n A f r i c a n gam e t r o p h y collection

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19J1

18

Iowa

JlM
/OrBankers to

Meet in Des Moines
Fourth Annual Meeting Will Be Held Sunday and Monday,
June 8 and 9
Follow ing is a gen eral outline of
plans for holding th e fo u rth an n u al
m eeting of “Iow a Ju n io r B ankers.”
R egistration will com m ence at 11:00
a. m. on Sunday forenoon, Ju n e 8,
1941, on th e m ezzanine floor of th e
Hotel F o rt Des Moines.
The th ird a n n u al adding m achine
contest will be held th is year. The
sam e general rules g overning previous
A ssociation adding m achine contests
w ill again prevail. The p relim in aries
will be held from 3:00 p. m. to 5:00
p. m. Sunday, Ju n e 8, 1941, on th e
m ezzanine floor of th e H otel F o rt Des
Moines. The ten hig h est ran k in g
con testan ts chosen from th e prelim i­
naries will com pete for te n cash prizes
totalin g in all $102.00 on M onday
forenoon, Ju n e 9, 1941. T his final
contest w ill be held before th e con­
ventio n audience. It will com m ence
prom ptly at 11:30 a. m. on th a t fore­
noon.
F ro m 5:00 p. m. to 6:15 p. m., S un­
day afternoon, Ju n e 8th, w ill be a
general reception period. P resid en ts
and th e ir w ives of th e Des Moines
ban k s w ill join Mr. and Mrs. H. R.
Young of A rlington, p resid en t of th e
State Association, and Mr. and Mrs.
H. J. S tuhlm iller of F ontanelle, vice
presid en t and tre a s u re r of th e State
Association, in g reetin g th e Ju n io r
B ankers. The en tire affair will be in ­
form al. Special m usic w ill also be
provided d u rin g th e reception hour.
S upper w ill be served at 6:15 p. m.
in th e ballroom , m ezzanine floor, H otel
F o rt Des Moines. Special n um bers
w ill be given th ro u g h o u t th e supper
period. H. R. Young, president, will
preside. Wm. A. Irw in, natio n al edu­
cational directo r of th e A m erican In ­
stitu te of B anking, New York City,
w ill be sp eaker of th e evening. P lans
will be discussed for th e form ation
of a p erm an en t “Iow a Ju n io r B an k ­
ers A ssociation.” A com m ittee w ill
be appointed to re p o rt th e follow ing
day on th e form ation of such an o r­
ganization. The Sunday evening p ro ­
gram will ad jo u rn not later th a n 9:00
p. m. to p erm it all w ho m ay desire to
visit p ictu re show s or o th er places of
in te re st in Des Moines if th e y wish.
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 194-1

The M onday m orning session w ill
com m ence prom ptly at 9:15 a. m. and
prefaced by a special m usical pro­
gram . Several fine talk s have been
scheduled. F inals in th e adding m a­
chine contest w ill be conducted
p ro m ptly at 11:30 a. m. and th e cash
prizes w ill be aw arded at 12:00 o’clock
noon from th e convention floor.
The afternoon session w ill com ­
m ence at 1:45 p. m. In addition to
tw o fine talks th a t will be delivered,
a panel discussion w ill follow on the
them e “A. I. B. G roup Study Classes
in Iow a—T heir Value; How to Get
A head.” T he Ju n io r B ankers Conven­
tion will ad jo u rn not later th a n 5:00
p. m., M onday afternoon, Ju n e 9th.
F o r all those w ho m ay desire to re ­
m ain for the evening it is anticipated
th a t some special e n te rta in m e n t will
be provided.
The program for th e Iowa Ju n io r
B ankers C onvention is as follows:
SUNDAY, JU N E 8, 1941
Forenoon
11:00 R egistration Commences — Mez­
zanine Floor, F o rt Des Moines
Hotel.
A fternoon
3:00 to 5:00 P r e lim in a r ie s , A d d in g
M achine Contest.
5:00 to 6:00 R eception for All Men
a n d W o m e n R eg istran ts —
Lounge, M ezzanine Floor, F o rt
Des Moines Hotel.
6:15 Supper—Presiding, H. R. Young.
P resident, Iowa B ankers Asso­
c ia tio n -M a in Ball Room, Mez­
zanine Floor, F o rt Des Moines
Hotel.
Music du rin g th e Supper Hour.
7:30 A ddress, “Looking A head,” Dr.
Wm. A. Irw in.
8:30 G eneral D iscussion on th e sub­
ject: “Shall the Iow a Ju n io r
B ankers F o rm an ‘Iow a Ju n io r
B ankers A ssociation?’ If so,
shall it be p attern ed after the
organization of th e p aren t Asso­
ciation?”
A ppoint Com m ittee to study
feasibility of form ing “Iow a J u n ­
ior B ankers A ssociation” w hich
com m ittee shall subm it its re ­

p o rt at tom orrow
m eeting.
9:00 A djournm ent.

aftern o o n ’s

MONDAY, JU N E 9, 1941
F orenoon
8:00 R egistration — M ezzanine Floor,
F o rt Des Moines Hotel.
9:15 M eeting Called to O rder—H. R.
Young, P resident, Iowa B ankers
A ssociation, A rlington.
Music—Girls M usical Trio.
9:30 R em arks of the P resident, H. R.
Young.
9:40 A W ord of W elcome—Rolfe O.
W agner, P resident, C apital City
State Bank, Des Moines; P resi­
dent, Des Moines Clearing H ouse
Association.
R esponse—L. B. Cox, A ssistant
Cashier, F irs t State Bank, Belmond.
Address, “E ducation and B ank­
ing—W ill A. Lane, P resident,
Security Savings Bank, M ar­
shalltow n; M ember, Board of
Regents, G raduate School of
B anking of A m erican B ankers
Association.
Address, “T he Ju n io r B an k er’s
Place in th e B anking P ic tu re ”—
R. L. Bunce, D eputy S u p erin ­
ten d en t of Banking, Des Moines.
11:30 F inals — Statew ide A dding Ma­
chine Contest.
12:00 Noon A w arding Cash P rizes—
H. J. Stuhlm iller, Vice P resid en t
and T reasu rer, Iow a B ankers
Association; P resident, S t a t e
Savings Bank, Fontanelle.
A fternoon
1:45 M eeting Called to O rder—H. R.
Young, P resident, Iow a B ankers
Association.
2:00 Address, “Public Problem s F ac­
ing th e Y ounger B usiness M an”
—Hon. B. B. H ickenlooper, L ieu­
te n a n t G overnor of Iowa, Cedar
Rapids.
2:30 Address, “A dvantages, If Any,
of Ju n io r B ankers Today Over
Those of Y esteryear” — B. F.
K auffm an, President, B ankers
T ru st Company, Des Moines;
(T u rn to page 28, please)

19

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19ki

W h at the Legal Ph rase

t$6X t
A M innesota banker died leaving his
p ro p erty by w ill to his sister for life
w ith the rem ain d er to h e r “n ext of
k in .” The sister died survived by
th re e sisters and one child of a p re ­
deceased sister. U nder th e sta tu te of
descent all four w ould have been en­
titled to share in any p ro p e rty ow ned
o u trig h t by th e decedent had she died
leaving no will. W ere all four entitled
to share in the p ro p erty fo rm erly
ow ned by the banker?
Yes. A d evise to “n ext of k in ” is of
the sam e effect as one to “legal h eirs”
or “legal n ex t of k in ” and the statute
of d escen t is to he taken as the stand­
ard of division in M innesota. The
E n glish rule, in cid en tally, is that
“n ext of k in ” m eans n earest of kin.
If such rule w ere applicable here, the
property w ould have gone to the three
su rvivin g sisters only.
M axw ell m aintained a checking ac­
count w ith a South D akota bank. The
deposit agreem ent, duly signed by both
parties, provided th a t th e b an k could
not be liable for any am ounts paid on
forged checks and charged to th e de­
posito r’s account unless he gave the
bank w ritte n notice of th e forgeries
w ith in 15 days a fte r th e date of th e
m ailing of th e statem en t and cancelled
checks. C ertain forgeries occurred b u t
M axwell did not n otify th e b an k as
req u ired by th e contract. Could he
recover from th e bank?
No. The South D akota Suprem e
Court recen tly held that a contract be­
tw een a hank and its depositor provid­
ing that the bank w ould not be liable
for am ounts paid on forged checks u n ­
less he gave the hank w ritten notice
of the forgeries w ith in 15 days after
the date of m ailin g the statem ent and
cancelled ch ecks to him precluded the
depositor from recovering on the forg­
eries w here proper notice had not been
g iv en to the hank as provided in the
contract.
A retired hanker, w ho w as a re si­
den t of N o rth D akota, w as one of th e
p artn e rs in a m ill business operating
exclusively in M innesota. He paid, in
M innesota, an incom e tax on his in ­
come from th e p a rtn e rsh ip and th e

Northwestern Banker

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

June 1941

These and Other Timely Legal
Questions Are Answered
By the
LEG A L DEPARTM ENT

p a rtn ersh ip w as also taxed in M inne­
sota. He did not, how ever, re tu rn in
N orth D akota as p a rt of his gross in ­
come for tax purposes th ere the m oney
he m ade from th e p a rtn e rsh ip in 1937.
The N orth D akota law applicable pro­
vided th a t income “derived from any
source w h a te v e r” should be returned.
W as such action on th e p a rt of the
p a rtn e r proper?
No. Tu a recent decision the North
Dakota Suprem e Court held, on facts
sim ilar to those outlined in the q ues­
tion, that the u se of th e phrase “in ­
com e derived from any source w hat­
ever” in the incom e tax law required
that the incom e should he returned
and that it Avas taxable in N orth Da­
kota.
A N ebraska tire com pany obtained
a ju d g m en t against a construction
com pany in th a t state. In bidding on
a city co ntract th e construction com­
pany w as req uired to post, or have
posted, a cash ier’s check for $400. The
construction com pany prevailed on
Jo rd an to do this. The construction
com pany did not get th e contract, but,
before Jo rd an could recover the check,
th e tire com pany garnisheed th e city
and the bank th a t issued th e check.
Should the tire com pany prevail?
No. W hen th e hid o f th e c o n str u c ­
tio n c o m p a n y on th e c ity c o n tr a c t Avas
n o t a cc e p te d b y th e c ity , th e c o n str u c ­
tio n c o m p a n y h ad n o fu r th e r in te r e st
in th e c a sh ie r ’s c h e c k and it AATa s re ­
tu r n a b le to Jo rd a n a s h is p ro p e r ty .
It AAas n ot th e p r o p e r ty of th e c o n ­
str u c tio n c o m p a n y a n d , th e r e fo r e ,
c o u ld n o t he rea c h e d b y g a r n is h m e n t
as su c h p ro p erty .
A K entucky hank w as tru ste e of an
estate there, the incom e of w hich w as
to go to one person for life and the

OMeans
corpus to an o th er on th e death of the
first beneficiary. As tru stee, th e bank
purchased certain bonds at a prem ium
and certain o th er bonds at a discount.
In handling th e estate w as it required
to am ortize th e prem ium s and accum ­
ulate the discounts?
No. In ad m in isterin g a trust the in ­
com e of Avhieh is giA^en to one person
and the corpus to another, prem ium s
paid for secu rities in im e s tin g trust
funds need not he am ortized, and the
am ount of the discount at w hich such
secu rities w ere purchased need not be
accum ulated. T his rule, in cid en tally,
applies in K entucky, hut it is not fo l­
low ed in certain other states.
M ust a tru stee diversify the in v est­
m ents it m akes on behalf of a tru st?
T h e courts o f th e s e \ e r a l sta te s l i a A e
approached th is q u e stio n differently
and there are differences in th e ex ten t
to w hich diversification is required.
M assachusetts and NeAAr Jersey ad op t
th e AieAv th a t a tr u s te e is ordinarily
under a duty to d iv ersify hut th e
c o u r ts o f N cav York and P en n sy lv a n ia
liaATe taken th e p o sitio n th a t there is
n o d uty to d iv ersify tru st in v estm en ts.
B l a e l t A v e l l sued a b an k for personal
in ju ries su stained by him in a build­
ing ow ned by it. The su it w as for
$7,000 and th e bank w as covered by
insurance up to $5,000. The ban k was
clearly liable to B lackw ell for the
am ount sought by him. B lackw ell’s
atto rn ey s offered to settle for $4,000
b ut th e insurance com pany, in bad
faith, refused th e offer. L ater Blackw ell recovered th e $7,000. In such cir­
cum stances w as th e insurance com­
pany liable for th e full am ount?

Y es. W h e r e a n in s u r e r is g u ilty of
fra u d or had fa ith , it is lia b le in to rt
fo r fa ilin g or r e fu s in g to co m p ro m ise
or s e ttle a cla im b r o u g h t a g a in s t th e
a ssu r e d fo r an a m o u n t AAdthin th e p o l­
ic y lim its, to th e e x te n t of a n y e x c e s s
o f a ju d g m e n t r e c o v e r e d a g a in st th e
in su r e d OArer th e a m o u n t p a y a b le b y
th e te r m s o f th e p o lic y . S in ce th e in ­
su r e r a cted in had fa ith h ere, it is lia ­
b le fo r th e fu ll a m o u n t recoA ered

(T urn to page 30, please)

21

W e M ay Not Know A ll the
Answers—But W e Know

Where to fin d Them
E ditor's Note: I n lieu of a house
organ fo r his bank, C. L ane Goss sends
out every once in a w hile w h a t he calls
“screeds.” The follow ing is a screed
w hich w e n t to the personnel of his
bank in the fo rm of a staff bulletin.
S IN STITU TIO N S and as individ­
uals we m u st alw ays go forw ard.
We can n ev er go backw ard; otherw ise
we die—m en tally or physically. The
person w ho lives en tirely in th e past
has stopped grow ing. A tre e nev er
stops grow ing u n til it dies. People
tr y to go back to th e ir childhood
h au n ts, b u t th e old p laym ates are gone
into th e w ide w orld, th e old days can
nev er quite be recap tu red . The places
them selves have changed th ro u g h the
influence of in d u stry and th e autom o­
bile. Not only will th e people, th e
localities change beyond recognition,
but also th e old w ays of life w ill pass.
In th e w ords of th e novelist Thom as
Wolfe, “You C an’t Go Hom e Again!”
If this, th en , is to be our idea of
grow th, w hy not accept th e fact and
grow as individuals and institutions?
By grow th, I m ean adding to our m en ­
tal, m oral and cu ltu re sta tu re , stre a m ­
lining our stru c tu re s to th e p resent,
re ta in in g th e good of th e past, b u t not
m aking it our idol. An idol has a w ay
of becom ing a ball and chain.
T hough we cannot tu rn back to the
y ears th a t we have lived thro u g h ,
th e re are com pensations for our ad­
vancing years. O therw ise we should
be p erp etu ally unhappy. A nd fo rtu ­
n ately o u r collective m em ories are
short. Som etim es th is is u n fo rtu n a te
in m a tte rs of state, n atio n al or local
policy w hen m em ories should m ake
people w iser.
E gotism and com placency are tr e ­
m endous factors in g ro w th lim itation.
None of us know s m uch about a n y ­
th in g really. T h erefore egotism is a
sign of retro g ressio n and th e end of
grow th. Mr. W illiam Saw yer tells a
sto ry of th e difference b etw een a
philosopher an d a scientist. The scien­
tis t know s a g re a t deal about v ery
little, an d goes on know ing m ore and

By C. Lane Goss
Vice P re s id e n t
W o r c e s t e r C o u n t y I n s t it u te f o r S a v in g s
W o rceste r, M assachusetts

A

C. L A N E

G O SS

m ore about less and less u n til he
know s ev erything about nothing. The
philosopher, on the other hand, know s
v ery little about everything, and goes
on know ing less and less about m ore
and m ore u n til he know s nothing
about everything.
A nyone in our
business or any o ther w ho th in k s th a t
he has all th e ideas first is in a diffi­
cu lt stage of retrogression, and forced
to plagiarize o ther ideas so m uch th a t
his system becomes too com plicated to
m aintain. Ideas are the resu lt of w ork,
environm ent,
association,
reading,
tra in in g and inheritance. I t is w ell
n ev er to scoff a t the ideas of another,
y et later p resen t them as your own.
Someone w ill detect you and know
you for w h at you are—for robbery is
robbery how ever you adm it it. Shoul­
d er riding is despicable, and the m an
w ho practices it carries dow n m any

o thers w ith him in th e final and com­
plete collapse.
The day has passed w hen a m an can
be the m aster of all branches of learn ­
ing. In th e com plexity of m odern life
each of us m u st concentrate or spe­
cialize in some one field in order to
equal or excel com petition or ju stify
our existence by adding to th e know l­
edge in our sphere. W e m ust never
lose our sp irit of in q u iry into other
areas of activity lest we become s tu n t­
ed and one-sided, lim iting our own
grow th in the segm ent of our own spe­
cialization. Use o th er people’s ideas
freely, b u t alw ays give them due
credit.
In a w orld appearing to be over sup­
plied w ith factories and train ed m en,
m achines, finance, etc., we m u st b u r­
row u n d er th e pile and ex tract tru th
to m ake ourselves distinctive, useful,
tim ely and valuable in an activity th a t
is u n d er supplied in order to survive
as individuals, as fam ilies, and as busi­
nesses. T his process has a w ay of re ­
versing the vicious spiral of decay.
Individuals, n ot groups or govern­
m ents, have opened up the new vistas
of h u m an progress—to illustrate,
C hrist, L eonardo da Vinci, Gallileo,
Plato, C hanning at H arvard, T ucker at
D artm outh, Osier at Jo hns H opkins,
Glass and Stonier in banking, W rig h t
in aviation, W ood in in d u stry , E in ­
stein in m athem atics, P asteur, Madame
Curie, etc., ad infinitum .
To re v e rt to th e person w ho th in k s
th a t he has all the ideas first, w ho is
contem ptuous of the ideas of others,
it is quite easy to get around him by
m aking him th in k yo u r ideas are his.
The process is a little slower, b u t ju st
as effective. None of th e m en m en ­
tioned above w ere inspired by a single
idea w hich th ey alone originated.
T heir achievem ents w ere not entirely
th e spontaneous flowering of individ­
ual genius, b u t p artly the product of
th e age, th e civilization in w hich th ey
lived. T hey had a devoted in te re st in
helping h u m an beings, and w orked u n ­
selfishly and un sp arin g ly tow ard th e ir
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June 19^1

22
goal. None of them w as one-sided,
and each respected th e contrib u tio n s
of others.
Proficiency in one activ ity has its
parallel in a n o th e r such as p ain tin g
and arch itectu re, po etry an d m usic.
Achieve com parative excellency in one
thing, and th e w orld opens up to you—
travel, friendship, ap preciation and
happiness.
It m akes no difference
w h a t it is—philosophy, m athem atics,
accounting, public relations, invest-

The

m ents, m ortgage lending, w riting,
m usic, singing, p rin tin g , anything. One
ra re ly know s th e best m en in any field
unless he him self excels in his. W hen
one rises to em inence from a false
rep u ta tio n or by intellectual robbery
and is found out, his decline is spec­
tacu lar and devastating. M any good
m en achieve excellence in one field,
y e t spread so th in ly in o thers th a t
th e y lose th e ir perspective, and lessen
th e value of th e ir achievem ent. Pro-

Montana

Convention

In Missoula Friday and Saturday, June 20 and 21
C LEV ER an n o u n cem en t of th e
th irty -eig h th a n n u al convention
of th e M ontana B ankers A ssociation,
to be held in M issoula, Ju n e 20th and
21st, has been p rep ared by Mrs. E th el
W alker, A ssociation secretary. It w as
gotten u p in th e form of a bill to be in ­
troduced into a legisuature, listed as
C onvention Bill No. 376, and p resu m ­
ably w as introduced by th e C om m ittee
on C elebrations. It reads as follows:

A

A B IL L FOR AN ACT E ntitled: “An
Act to R equire Y our A ttendance
and th e A ttendance of y o u r wife at
The M ontana B ankers A ssociation
C onvention at M issoula, M ontana, on
Ju n e 20-21, 1941; P roviding for Ac­
com m odations T hereat; P roviding
for a Golf T o urnam ent; P roviding
for P enalties in Case of F ailu re to
Comply H erew ith; and R epealing All
C om m itm ents and E ngag em en ts.”
Be it E nacted By th e E xecutive Coun­
cil of th e M ontana B ankers A ssocia­
tion:
Section 1. T h at you, or some m em ­
ber of y o u r organization, in stitu tio n , or
establishm ent, be, and you are h ereby
ordered to, in person, a tte n d th e T h ir­
ty-eighth A nnual C onvention of th e
M ontana B an k ers A ssociation a t Mis­
soula, M ontana, Ju n e 20-21, 1941.
Sec. 2. T h at if you are m arried, or
expect to be m arried before th a t date,
th a t you be, and you are hereby, or­
dered and in stru c te d to also b rin g to
said convention, th e w ife of y o u r
bosom. If you are not m arried, an d do
not w ish to becom e so before said
date aforesaid, no p en alty shall attach
to you for atten d in g alone.
Sec. 3. T h a t if you desire a room,
originally inten d ed for slum ber, b u t
seldom used for such, you shall im ­
m ediately m ake y o u r w ishes know n to
R. H. Dick, a ssistan t cashier of th e
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June 19hi

F irs t N ational Bank, or E. J. Stowe,
a ssista n t cashier of th e W estern Mon­
tan a N ational Bank, M issoula, re g u la r­
ly appointed, duly authorized and act­
ing m em bers of th e H otel Committee,
w hich gentlem en shall th ereu p o n ex­
e rt every effort to m eet your w ishes.
Sec. 4. T h at if you desire to p a r­
ticipate in the B an k ers’ Golf T o u rn a­
m ent to be held on th e day im m edi­
ately preceding th e convention, viz.,
Ju n e 19, a t the M issoula C ountry Club,
you shall w rite a letter to Newell
Gough, vice president of the W estern
M ontana N ational Bank, or to F. M.
E lliott, cashier of the F irs t N ational
B ank, M issoula, reg u larly appointed,
duly authorized, and acting m em bers
of th e Golf Committee, advising them
of y o u r in ten tio n to p articip ate and
com pete for prizes in th e to u rnam ent.
Sec. 5. R efusal to atten d th e Mon­
ta n a B ankers A ssociation Convention,
w ith o u t good and sufficient reason,
shall be deem ed to be a grave m istake
and shall be punishable by personal
loss to you of a th oroughly good tim e,
th e chance to fratern ize w ith a fine
group of ban k ers (and th e ir beautiful
w ives), an in terestin g and instru ctiv e
program , and a fine vacation in a beau­
tiful little city in a w onderful state.
Sec. 6. All of y o u r p rio r engage­
m ents and com m itm ents in conflict
h erew ith are hereby repealed (we
hope).
Sec. 7. T his Act shall be in full
force and effect from and after its
receipt by you and acknow ledgm ent
to th e A ssociation office a t H elena,
M ontana.
Approved:
R. D. M ountain, President.
J. A. Sanderson, Vice P resident.
F red H einecke, Vice P resident.
A ttest:
Mrs. E. W. W alker, Secretary.

ficiencies in certain fields do n ot al­
w ays combine. M any good m en are
excellent in research b u t poor adm in­
istrators.
Some at least of th e problem s m en­
tioned are not abstract, b u t m ay apply
to us rig h t here. A nd we should all
take advantage of the op p o rtu n ity th a t
exists in th is ban k for study, for im ­
proving our efficiency, for m aking well
considered suggestions, for tearing
w h at we can from our associates here
and elsew here for our com m on good.
It m ay be ap p ro p riate to say here th a t
by and large b an king m akes m oney
by not losing it, and th a t good b an k ­
ers m ake good banks. B anking tro u ­
bles are usually traceable to an inade­
quate know ledge of th e tools available
to those responsible.
T here are a few axiom s th a t m ay
enable us to keep a stra ig h t line course
tow ard achievem ent in our business:
1. As stated above, banks m ake m oney
largely by n ot losing it.
2. Above, good ban k ers m ake good
banks and vice versa.
3. B anks have found them selves in
trouble largely because of lack of
know ledge of th e tools already at
th e ir disposal if th e ir staffs had
tak en the tim e to search th em out.
4. Sound th eo ry alw ays precedes
sound practice. No am o u n t of ac­
tu al w ork based on an unsound
th eo ry w ill w ork practically.
5. T his m em orandum is w ritte n not
because we th in k we have all the
answ ers, b u t to show you how we
th in k and th e general area in w hich
th e answ ers m ay be found. If we
are w rong, it gives you an oppor­
tu n ity to correct our th o u g h ts by
pointing out th e errors. Therefore,
we gain eith er way.
6. In business or in any o th er activ ity
we m u st carry on th e daily job w ell
w hile searching for b e tte r ways.
M any good m en have fallen dow n
by seeking perfection for th e fu ture,
and neglecting a process th a t w orks
w ell enough to give th em a living
in th e present.
7. Most, if not all, b an king problem s
can be solved adequately.

Montana Secretary
Ben R. D raper, a ssistan t cashier of
th e U nion B ank and T ru st Company,
H elena, w as elected secretary of the
M ontana B ankers A ssociation at a
m eeting of th e officers of th e organi­
zation. He succeeds Mrs. E. W. W alk­
er, w hose resignation w as announced
by R. D. M ountain of Conrad, p resi­
den t of th e association.
Mr. D raper has lived in H elena for
m any years and has been w ith th e
U nion B ank for th e p ast tw o decades.

23

The

South Dakota
C O N V E N T IO N

D EA D W O O D
June 2 6 - 2 7

Headquarters — Franklin Hotel
H IS y e a r th e Black H ills w ill again
be th e m eeting place for th e 1941
an n u a l convention of th e South
D akota B an k ers A ssociation. Deadwood is th e city, and th e dates are
W ednesday, T hu rsd ay , an d F rid ay ,
Ju n e 25, 26 and 27. While, th e F ra n k ­
lin H otel is convention h ead q u arters,
th e business sessions w ill be held in
th e M asonic Tem ple w hich is ju s t
across th e stre e t from th e hotel.
The festivities s ta rt on W ednesday,
th e 25th, w ith p relim in ary re g istra tio n
at 1:30 a t th e F ra n k lin H otel. T hen
golf a t 2:00 P. M. for those in terested ,
an d th e big stag du tch lunch a t 6:30
P. M. th is sam e day, both golf and th e
evening affair at th e T om ahaw k Lake
C ountry Club. W hile th e m en are at
th e stag p arty , reg istered ladies w ill
be e n te rta in e d a t a th e a te r p arty.
W ith th e m o rn in g of T hursday, th e
26th, given over to com m ittee m eet­
ings, sessions of th e convention pro p er
do not s ta rt u n til 2:00 P. M. T he com­
plete p ro g ram is as follows:

T

PROGRAM
Thursday, June 26
9:30 A. M. R egistration,
F ra n k lin H otel

lobby

of

10:00
11:00
12:00
1:00

2:00

F . F. P H I L L I P P I
P r e s id e n t S o u th D a k o ta B a n k ers A s s o c ia tio n

Golf—Those w ho desire to play
golf T hu rsd ay m orning m ay use
th e facilities of th e Tom ahaw k
Lake C ountry Club or th e Lead
C ountry Club. The u sual green
fees w ill be charged.
M eeting of E xecutive Council
M eeting of th e R esolutions Com­
m ittee
M. M eeting of N om inating Com­
m ittee
P. M. Golf or Bridge L uncheon,
Lead C ountry Club (T ran sp o rta­
tion w ill be fu rn ish ed for v isit­
ing ladies)
F irs t Session, M asonic Tem ple
(Across the street from the
F ra n k lin H otel)
Call to Order, F. F. Phillippi,
M ilbank, president, South Da­
kota B ankers A ssociation
Invocation, Rev. O. Sivertson,
Deadwood, pastor, F irs t Bap­
tist C hurch
A ddress of W elcome, R ay L.
Ew ing, M ayor of Deadwood
Response, L. T. M orris, W atertow n, vice president, South Da­
kota B ankers A ssociation
O pening
R em arks, P resid en t
Phillippi

F iling of Official R eports
Address, H. W. Koeneke, Ponca
City, Oklahoma, first vice p resi­
dent, A m erican B ankers As­
sociation
“W ages and H o u rs”, Leslie K.
Curry, St. Louis, M issouri, vice
p re s id e n t,
M ercantile-Com­
m erce B ank and T ru st Com­
pany
A nnual m eeting of m em bers of
A m erican B ankers A ssociation,
including election of officers
for South D akota, T. S. H arkison, Sioux Falls, state vicepresident, presiding
5:15 P. M. M eeting of “E xecutive
Council” of state ban k ers to se­
lect nam es from w hom governor
is to appoint m am bers of B ank­
ing Commission
6:30 P. M. A nnual D inner, M asonic
Tem ple
Address, Clifton M. U tley, Chi­
cago, Illinois, director, Chicago
Council on F o reign R elations
9:00 Dance, E lks Ball Room

Friday, June 27
8:30 A. M. B reakfast Session, M ason­
ic Tem ple
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Federal Reserve Bank of St. Louis

June 19kl

24
“R ainbow s and G reen Cheese”,
W. W. Gail, Billings, M ontana,
“The M ontana M irth q u ak e”
“Public Service at a P ro fit”, Jo h n
Burgess, M inneapolis, M inne­
sota, vice president, N o rth ­
w estern N ational B ank and
T ru st Com pany
C om m ittee R eports
E lection of Officers
Selection of 1942 C onvention City
A djo u rn m en t
M eeting of E xecutive Council

DEADWOOD CONVENTION
COMMITTEES
G eneral C hairm an, C. O. G order

R eservations and R egistration, A. B.
Lord
E n te rtain m en t, A. A. Coburn, H. J.
W alker, H. S. Black, Wm. A ndrew s,
Jo h n H irning
L adies’ E n tertain m en t, Mrs. C. O. Gor­
der, Mrs. Wm. Schoen, Mrs. A. A.
Coburn, Mrs. H. S. Black, Mrs. F. S.
Howe and Mrs. Jo h n Ryan.
Am ong o th er e n tertain m en t fea­
tures, th ere w ill be several sight-seeing
tours conducted at various tim es.
Those desiring to take advantage of
these to u rs are requested to m ake th eir
w ants know n upon arriv al at Deadwood.

Here is the Point
of Prompt Collection
. . o f Wisconsin Checks an d D r a fts

11H

U 1 IJ 1 in size am ong all banks in the U nited
States, the First W isconsin N a tio n a l of M ilw auk ee
is th e largest in th e W isconsin-Iow a-M innesotaN orth and South D akota area . . . w ith unusual
fa c ilitie s
service

for

p rom p t,

th rou gh ou t

this

efficient
im p ortan t

corresp ond en t
agricultural-

industrial region .
BANKS AND BANKERS DIVISION

George T. Campbell______________________Vice President
Richard j. Lawless______________ Assistant Vice President
Donald A. Harper______________ Assistant Vice President

FlltST W ISCONSIN
NATIONAL BANK
O F M ILW AUKEE

The First W iscon­
sin serves more than
85 p er cent o f a ll
the banks in Wis­
consin. ..plus many
l e a d i n g banks
in key cities o f
neighboring states.
•
Resources Over
$285,000,000
•

Established 1853

Member of the Federal
Deposit Insurance
Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19J1

NEW S AND VIEW S
(C ontinued from page 16)
and his legislative com m ittee th a t
m ost of th e bills harm fu l to banking
w ere defeated.
M arvin R. Selden, vice presid en t of
the M erchants N ational B ank of
Cedar Rapids, presided at th e group
m eeting held in his city, and m ade one
announcem ent w hich w as v ery popu­
lar w hen he suggested th a t after the
com pletion of th e four o’clock m eet­
ing the guests w ere invited to stop in
the Corn Room of th e M ontrose H otel
for refreshm ents. A fter reaching the
room, th e boys found th a t th ey w ere
ju st liquidating corn loans.
H arold P. K lein, a ssistan t vice p res­
ident of the Iowa-Des Moines N ational
B ank and T ru st Company, has been
appointed vice chairm an of th e U nited
Service O rganization for th e Des
Moines area. Carl AV. M esm er, vice
p resident of th e B ankers T ru st Com­
pany, has been appointed tre a su re r of
th is organization. The state quota for
the U. S. O. is $400,000.
R. (). B yerrum , executive vice p resi­
dent of the F irs t T ru st and Savings
B ank of D avenport, spoke on “The
B arter S ystem and Gold” before the
m eeting of Group 5.
Am ong o th er things, Mr. B yerrum
said w ere these: “South A frica pro­
duces one-third of all th e gold p ro ­
duced.—U nless we are regim ented, it
is not likely th a t the b a rte r system
will su p p lan t gold.-—Our en tire price
system is based on gold.—40 per cent
of the w orld trad e is controlled by the
U nited States and G reat B ritain.—H it­
ler and his countries control only 25
per cent of th e w orld trade.—Cash re ­
serves and hoarding rep resen t th e es­
sential uses of gold.—The purchasing
pow er of gold has changed little in
200 years.—The $22,000,000,000 of gold
in F o rt Knox is a valuable asset to
the U nited States.—O ne-third of our
gold here is for safe keeping for other
countries.”
B. A. Gronstal, p resid en t of the
Council Bluffs Savings Bank, is very
proud, and rig h tly so, of the new bank
building w hich th ey are now build­
ing. It is not com plete yet, b ut th e
vau lt equipm ent is in and it is m ost
m odern and up to date.
Ben D uBois, secretary of the Inde­
pendent B ankers A ssociation of Sauk
Centre, of M innesota, believes th a t
b ran ch banking m ust be “frozen”
w here it is now.
“B ranch banking,” according to Mr.
DuBois, “is a form of d istan t land-

25

NEW 1941

Io w a - N e b r a sk a
B flnK D ir e c t o r y
Published by the NORTHWESTERN BANKER
Des Moines

In th e n ew 1 9 4 1 e d itio n o f th e IowaN ebraska B ank D irectory yon w ill find
the m ost c o m p le te and latest in fo r m a tio n
on Iowa and N ebraska h an k s, in c lu d in g
p e r so n n e l, cap ital, su rp lu s, d ep o sits,
loan s and d isco u n ts, b o n d h o ld in g s,
co r re sp o n d en t b an k s and oth er v a lu ab le
data.

“A n excellent d ire c to ry .”
B. C. H ew lett, ca sh ie r, F ir s t S ta te B ank, B elm ond, la.
“W e s u b s titu te y o u r excellent d ire c to ry fo r th e la rg e d ire c to ry .”
T. J. Poague, ca sh ie r, S ta te B ank of L ib e rty , N ebr.
“ I t ’s th e b e st little d ire c to ry p u b lish ed an d j u s t th e r ig h t size so one
can c a rry it in th e pocket d aily .”
H. J. Lamp, vice p re sid e n t, B e n n e tt S ta te B ank, B e n n e tt, la .
“ Y our ban k d ire c to ry is a v e ry h a n d y an d com plete book.”
Sim Bonsall, ca sh ie r, L ex in g to n S ta te B ank, L ex in g to n , N ebr.

Iowa-Nebraska Bank Directory
527 Seventh Street
Des Moines, Iowa

_______________________, 1941

Gentlemen:

Use the handy coupon at the right

Please send------------- copies of your 1941 Iowa-Nebraska Bank
Directory to us, and we will remit at the rate of $2 per copy
upon receipt of your Directory.
Company
Officer__
City

State

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19J1

26

]NfO G R E A T E R com plim ent
could be paid to the efficiency
with which the everyday trans­
actions of banking- are carried
on than that the public accepts
banking service as something
to be taken for granted.
But bankers know that these
indispensable facilities are the
result of sound inter-bank rela­
tionships built up over a long
period of years.
We best serve ourselves
serving others well.
...

by

THE . . .

P H IL A D E L P H IA
NATIO NAL

BANK

ORGANIZED 1803

PH IL A D E L P H IA , PA .

C apital, S u rp lu s and U n d iv id e d P r o fits
$ 4 4 ,0 0 0 ,0 0 0
Member of Federal Deposit Insurance Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19J1

lordism th a t w ill alw ays be objection­
able to a free people. T he su b stitu ­
tion of a m anager for a real b an k
m anagem ent is not productive of b et­
te r service. T he home-owned, homem anaged in stitu tio n w ith its sensi­
tiveness to public dem ands is m ore a
com ponent p a rt of an y com m unity
th a n a b ran ch b ank of some d istan t
m etropolitan in stitu tio n . B anking is
an individual, personal business, and
each custom er desires th e op p o rtu n ity
of discussing m atters w oth th e real
‘y es’ and ‘no’ m an of th e in stitu tio n
ra th e r th a n w ith a m anager of some
d istan t hom e office.”
J u s t as soon as th e railroads s ta rt
to show an increase in th e ir business
th e railro ad union asked for a w age
increase of 30 per cen t w hich w ould
cost $202,000,000 yearly.
E d M. W arner, presid en t of th e City
N ational B ank of Clinton, sends us
th e follow ing in terestin g paragraph:
“W H EN THANKSGIVING DAY w as
founded th e Indians w ere ru n n in g
th is co u n try w ith no taxes, no in ­
debtedness, no relief, no th ird term
$nd the w om en did all th e w ork.
W hite m en th o u g h t th ey could im ­
prove on a system like th a t.”

Assistant Cashier
H a rry A. M eyer w as elected assist­
a n t cashier of th e A m erican N ational
B ank and T ru st Com pany of Chicago
at a recen t m eeting of th e b a n k ’s
board of directors. Mr. M eyer is 42
and has been w ith th e A m erican N a­
tional B ank since 1931. H e is a direc­
tor of th e Chicago ch ap ter of th e A m er­
ican In stitu te of B anking and is also
active in am ateu r athletics, p resen tly
serving as p resid en t of th e ban k ers
softball league.

Excused
Jo h n n y played tru a n t from school
one day, and th e follow ing m orning
w as w orried as to how to square h im ­
self w ith th e teacher. He decided to
w rite a note of excuse, signing his
m o th er’s nam e, w hich resu lted in th e
following: “D ear Teacher: Please ex­
cuse Jo h n n y for being ab sent y e ste r­
day. I tore m y pants. Y ours truly,
Mrs. Jones.”

Coming Events
M other (to son com ing from Sunday
school): “Well, son, w h at did you
learn today?”
Son: “I learned th a t m an w as m ade
out of dust. Is th a t true, M other?”
M other: “Yes, m y son.”
Son: “Well, th ere is going to be a
m an u n d er our bed p re tty soon.”

27

The Month’s Market Maneuvers
The strik e in the
b itu m in o u s c o a l
m ines of the north
w as settled A pril
30th—the Ford con­
troversy w ith labor
ended — and b u si­
n ess t u r n e d up­
w ard again in May.
The actual decline
JA M ES H. CLARKE
in A pril w as not
large—but com ing at a tim e w h en
every effort w as b en t tow ard in creas­
in g production, it hurt. P erhaps, u n ­
der the fu ll n ation al em ergency,
strik es w ill d ecline, there m ay even be
legislation d esigned to force m ediation
efforts before a w alk-out occurs— cer­
tain it is th e public is puzzled w h en
one boy can be forced to carry a gun
for $21 a m onth and h is n ex t door
n eigh bor in factory w ork can not be
required to m ake a gun for five to ten
tim es as m uch.

The stock m a rk e t m illed around a
bit w ith alternate days of stren g th and
w eakness, but got n ow here at all. The
n e t change in Dow-Jones in dustrial
averages w as 52 cents on the plus side
— this includes tw enty-five days of
trading as w e w rite th is on Saturday
m orning, th e last day of the m onth.
Railroad stocks sold off slig h tly during
M ay— the Dow-Jones averages on this
class of securities dropping fro m 28.40
on the last day of A p ril to 27.65 a day
ago. The dem ands of th e B ig F ive
Operating B rotherhoods fo r a 30 p er
cent increase in pay based on rising
living costs u nd o u b ted ly h u rt railw ay
securities. T he negotiations betw een
th e represen ta tives of the roads and
labor w ill be long draw n out — six
m o n th s, at least, seem s a good guess.
I f th is is true, the earnings of 1941 w ill
n o t be m u ch affected.
Public u tility stocks also w ere w eak
—d ropping over a point in th e av e r­
ages d u rin g th e m onth. It becom es in ­
creasingly a p p a re n t as tim e goes on
th a t a w a r econom y w ould squeeze th e
u tilities. W ith risin g costs of fuel and
labor—fuel being th e im p o rta n t one in
th e case of u tilitie s—and w ith rates
fixed, it seem s certain th a t, despite in ­
creases in gross, n e t w ill do w ell to
hold its own. T h en th e re is th e factor
of h ig h er tax es—w hich w ill affect all
in d u stries—b u t th e u tilities w ill be
h a rd p u t to find a com m ission w hich
w ill g ra n t an increase in rates. Be­
sides, th e g o v ern m en t is p lan n in g
m ore public p ro jects—th e S ecretary of

Prepared for
The Northwestern Banker

By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Chicago

th e In te rio r has stated th a t our p res­
en t facilities w ill not handle th e loads
to come. W h at w ill happen after our
defense efforts are com pleted — w ill
th e re be a v ast am ount of electric ca­
pacity for w hich th ere w ill be no de­
m and—these are questions th a t bo th er
investors in th e securities of m any
public utilities.
The g o vern m en t bond m arket after
being listle ss and lo w er through m ost
of M a y , developed c o n s i d e r a b l e
strength after the an nou ncem en t of
the n ew financing—$600,000,000 2%’s of
1958— on May 22nd. The lon gest g o v ­
ernm ents w ere quoted about 110.20 on
the hid side as A pril ended—dropped
to 110.1 on the 20th— today the bid is
around 110.31— an increase of b etter
than a quarter of a point in ten days.
The n ew bonds w ere really ex p losive
—the first day th ey sold at w ell over
tw o points prem ium and in th e n ex t
few days sold above 103.

The m unicipal bond m a rk e t and the
prices for high grade corporate issues
rem ained firm in May, but second
grade corporate obligations eased off
as a result of developm ents referred to
earlier in this article. H igher m a te­
rial costs, higher taxes and higher
wages— both now and in the f u t u r e have doubtless h u rt the second grade
m a rket. F or instance, if the five broth­
erhoods should receive a 30 per cent
increase in pay, it w ould add about
$202,000,000 to the roads’ annual p ay­
rolls. Perhaps, the rails could carry
such a load during this period of
sh arply rising business— but once this
defense boom has sp en t itse lf the car­
riers w ould be saddled w ith wages th a t
w ould have fa r reaching serious effects
on th eir financial positions. B u t 30
p er cent is doubtless a bargaining fig­
u re— and labor and m anagem ent both
realize th a t som e figure m u ch below
th a t w ill be decided upon w h en settle ­
m e n t is finally made.
T here w ere tw o sizeable pieces of
refu n d in g du rin g th e m onth, th e first
being $50,000,000 of F iresto n e T ire and
R ubber Com pany deb en tu re 3’s of

1961, priced a t 99 to yield 3.05—the sec­
ond, $80,000,000 of U nion E lectric Com­
pany of M issouri, first and collateral
m ortgage 3%’s due in 1971 and priced
at 107%. The W all S treet Journal in
its colum n “C u rren t P rices of R ecent
Bond Issu es” show s a bid of 97% for
th e F iresto n es—indicating th a t th e re ­
ception w as not as good as th e u n d er­
w rite rs expected—b u t a bid of 108%
for th e U nion E lectrics, show ing th a t
in stitu tio n s bought these in good
blocks.
There are quite a few corporate is ­
su es now in registration w ith the S.
E. C. and if June m arkets are favor­
able w e shall see fu rth er offerings.
N ew York State E lectric and Gas has
an issu e of $35,393,000 lon g m ortgage
bonds registered, w h ile the P h ilad el­
phia Com pany exp ects to sell $48,000,000 m ortgage bonds and $12,000,000
serial notes. One issu e w hich should
h it the m arket in th e first w eek of
Ju ne is $13,000,000 of S outhern N atural
Gas first m ortgage 3 Vi’s of 1956. Other
issu es w hich m ay be effered in June
include $3,500,000 first m ortgage bonds
and $750,000 debentures of M ichigan
Gas and E lectric Company; tw o issu es
of debentures of the Columbia Gas and
E lectric Corporation, one for $92,000,000 and the other for $28,000,000; and
one other w hich has been h angin g fire
for som e tim e — The R epublic S teel
C orporations’ $65,000,000 of first m ort­
gage bonds and $25,000,000 of deben­
tures.

The long term go vern m en t offerings,
fu lly taxable, w hich w e shall see fro m
tim e to tim e over the n e x t fe w m o n th s
w ill offer direct com petition to the cor­
porate issues. I t w ill be in terestin g to
see if this results in any price a djust­
m ent. On the other hand, the likeli­
hood continues th a t m o n ey rates w ill
be relatively low. E ngland and Can­
ada have been able to finance their
w ar efforts at 3 per cent for long term
credit— there is no reason to believe
th a t u n d er a m anaged econom y w e
cannot do as well. T hat w ould m ean
around 2% per cent fo r m ed iu m term
securities.
P roduction figures from num erous
in d u stries — steel, aircraft, m achine
tool—become increasingly im pressive.
If th e labor problem can be settled,
our o u tp u t w ill reach unprecedented
figures in th e n ex t few m onths. In th e
m eantim e, as th e arsen al for th e de­
m ocracies, we have num erous prob­
lem s to settle a t hom e and in our forNorthwestern Banker


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Federal Reserve Bank of St. Louis

June 1941

28
eign policy. R egardless of w h at h a p ­
pens to B ritain it is certain th a t we
shall go on building, and w ar in d u s­
tries w ill be bu rd en ed by m ou n tin g u n ­
filled orders. Some consum er in d u s­
tries, how ever—those w orking in p ro ­
duction considered u n essen tial by
W ashington—m ay find th e ir sources
of raw m aterials cut off. If th is h a p ­
pens, we shall see considerable u n em ­
ploym ent of w o rk ers in th ese fields—
th u s even in tim es of tw enty-four h o u r
a day schedules we w ill still have our
relief problem .
You w ould not knock th e jokes we
use
Could you b u t read those we refuse!

GENERAL

U

MOTORS

C O LO R FU L C O LLE C T IO N S
(C ontinued from page 17)
ru m in a n t (cud-chewing) anim als. All
have horns, some so long and sh arp as
to be effective w eapons of defense, and
o th ers so useless as to be inefficient
except in battles w ith th e ir own kind.
Some are beautiful, w hile o thers are
aw kw ard and grotesque. T heir color­
ing is usually protective, blending w ith
th e ir su rro u n d in g s so th a t th ey are
not easily seen.
Also p ictured here is a beautiful col­
lection of dishes w hich Mrs. K ing has
recen tly had placed on display in an ­
o th er room in the u p p er p a rt of the
b an k building, and we im agine this

ACCEPTANCE

CORP ORAT I ON

1T I M V >

is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors C o rp o ratio n and its w orld-w ide a ffilia te s:
CADILLAC,

BUICK,

OLDSMOBILE,

PONTIAC,

CHEVROLET

automobiles; fr ig id a ir e appliances for refrigeration and
air conditioning; d e l c o lighting, power and heating
equipment; g m c trucks; Be d f o r d , v a u x h a l l and other
foreign made automotive vehicles.
The business consists of investments in self-liquidating
credits, widely diversified as to region and enterprise,
cap ital em ployed being in excess of $80,000,000.
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.

GENERAL
MOTORS
INSTALMENT

PLAN
These

notes

are available, in limited amounts,

exhibit w ould have special appeal for
th e ladies. H ow ever, one section con­
tain s fifty or m ore of th e old-style
m ustache cups, in various sizes and
shapes, and p erhaps some of th e older
m en view ing the exhibit can rem em ­
ber ’w ay back w hen. In th is p a rt of
the building also is a display of South
A m erican paintings, as w ell as n u m er­
ous rugs of all sizes w hich appear to
be native w eave from our neighbor to
the south.
The building w hich houses th e W in­
ona N ational & Savings B ank and the
m agnificent A frican tro p h y collection
is a beautiful and im posing stru ctu re,
erected, we believe, in 1916, and we
are indebted to Jo h n A m brosen, cash­
ier, for his courtesy in helping us to
b ring these p ictures to our readers.
E. L. King, Jr., now vice p resid en t of
the bank, w as a boy of ten w hen he
w ent on th e h u n tin g trip to Africa,
and it is he w ho shot the black rhinoceras w hose head is on display.

f

IO W A JU N IO R BANKERS
(C ontinued from page 18)
P resid en t of th e Iow a B ankers
Association, 1933-1934.
3:00 Panel D iscussion (One hour) —
Them e—“A. I. B. Group Study
Classes in Iow a—T heir Value—
How to Get A head.” This panel
discussion w ill consist of re p re ­
sentatives of th e several A. I. B.
Group Study Classes in this
state. Nam es of leaders and p a r­
ticipants are: Dale C. Sm ith,
Leader, M anager, T ran sit De­
p a r t m e n t , C e n t r a l N ational
B ank & T ru st Company, Des
Moines; A. I. B. A ssociation
Councilm an for Iowa; C. S. Jo h n ­
son, E xecutive Vice P resident,
F irst N ational Bank, P erry; D.
F. W arnke, Associate Cashier,
Citizens Savings Bank, Hawkeye; R obert L. Becher, Teller,
The State Bank, F o rt Dodge; L.
M. L anning, Cashier, G rinnell
S tate Bank, G rinnell.
4:00 R eport of Com m ittee on P erm a­
n en t Organization.
G eneral Discussion.
A doption of some form of p e r­
m anent organization for an
“Iowa Ju n io r B ankers Associa­
tion.”
P resen tin g T em porary Officers.
U nfinished Business.
New Business.
4:30 A djournm ent.

4

>

upon request.
EXECUTIVE

o f f ic e

NEW YORK

Northwestern Banker

branches

IN PRINCIPAL CITIES

June 19JÎ

Daughter Did
“T his piece of lace on m y dress is
over seventy-five years old.”
“I t ’s beautiful. Did you m ake it
yourself?”

r

-

4


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Federal Reserve Bank of St. Louis

29

Chicago Fiduciaries
A t th e recen t an n u al luncheon m eet­
ing of th e C orporate F iduciaries Asso­
ciation of Chicago, at th e U nion
L eague Club, W illiam W. H inshaw ,
Jr., secretary and tru s t officer of the
C ity N ational B ank and T ru st Com-

Ju n e 3rd, w hen the actual drive for
th e fund began. This m eans the re ­
c ru itin g of 150,000 v olunteer w orkers
and the organization of 1,500 separate
offices and local h ead q u arters in as
m any tow ns and cities, as well as sim ­
ilar organizations in all of th e counties
of th e states.
Mr. B radford said th a t he accepted
th e appointm ent because he considers
th e w ork an essential phase of national
defense.

Forms and Procedures
A m anual of simplified banking
form s and procedure has been p re ­

W IL L IA M

W.

pared by a special com m ittee of the
B ank M anagem ent Commission of the
A m erican B ankers A ssociation and is
ready for distrib u tio n to th e A. B. A.’s
m em bership, it is announced by J.
H arvie W ilkinson, Jr., vice presid en t
of the State-Planters B ank and T ru st
Company, Richm ond, V irginia, w ho is
chairm an of the commission. The spe­
cial com m ittee w hich conducted the
study is u n d er the chairm anship of
L. W. Bishop, vice president and cash­
ier of the State-P lanters B ank and
T ru st Company.
The m anual, a 240 page book, has
been designed to serve as a guide in

H I N S H A W , JR .

p any of Chicago, w as elected president;
L y n n Lloyd, vice p resid en t of the
H a rris T ru st and Savings Bank, w as
elected vice p resident, and W illiam P.
W isem an, tr u s t officer of th e Chicago
T itle & T ru st Com pany, w as m ade sec­
re ta ry and treasu rer.

National Vice Chairman
L indsay B radford, p resid en t of th e
City B ank F a rm e rs T ru st Com pany,
th e tr u s t affiliate of The N ational City
B ank of New York, recen tly becam e
n atio n al vice ch airm an of th e U nited
Service O rganizations to build th e n a ­
tion-wide m ach in ery for th e service
g ro u p ’s cam paign to raise $10,765,000
for carry in g on a service club p rogram
for soldiers and sailors in com m unities
adjacen t to th e m ajor tra in in g centers
th ro u g h o u t th e U nited States. Mr.
B radford will w o rk closely w ith Thos.
E. Dewey, w ho w as recen tly appointed
ch airm an of th e U. S. O.
The U. S. O. is a non-profit co rpora­
tion form ed by th e Young M en’s C hris­
tia n A ssociation, th e N ational Catholic
C om m unity Service, the Salvation
A rm y, th e Young W om en’s C hristian
A ssociation, th e Jew ish W elfare B oard
and th e N ational T rav elers Aid Asso­
ciation,
In his new post it falls largely on th e
shoulders of Mr. B radford to create a
com plete n atio n al organization by

IN V E S T M E N T D O L L A R S
to Agricxiltur al N eeds
of money gravitate to the cities for investment. Out in the
✓ country thousands of farmers and their cooperative organizations need
money to finance their current operations in much the same way as business and
industry. The Federal intermediate credit banks obtain the money in the cities
on terms suitable to investors and make it available to farmers through lending
institutions—commercial banks, agricultural credit corporations, livestock loan
companies, banks for cooperatives, production credit associations. The intermedi­
ate credit banks obtain these funds from the sale of consolidated debentures.

L

arge a m o u n t s

These debentures, in maturities not exceeding 6 months, are acceptable by
Federal reserve banks as collateral security for 15 day loans to member banks.

THE F E D E R A L IN T E R M E D IA T E C R E D IT B A N K S
LOUISVILLE, KY.

ST. PAUL, M IN N.

HOUSTON, TEX.

BALTIMORE, MD.

N EW ORLEANS, LA.

OMAHA, NEB.

BERKELEY, CAL.

COLUMBIA, S. C.

ST. LOUIS, MO.

WICHITA, KAN.

SPRINGFIELD, MASS.

SPOKANE, WASH.

Further information regarding the Debentures may be obtained from

CHARLES R. DUNN, Fiscal Agent

31 Nassau Street, New York, N. Y.

Northwestern Banker

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

June 1 9 il

30
sim plifying and m odernizing b an k
form s and to produce econom ies in
b ank operatin g procedure. It is a re f­
erence book of o p eratin g and legal
form s, a m anual of o p eratin g proce­
dure for increasin g efficiency and re ­
ducing w orking hours, and a guide in
b an k operations for th e tra in in g of
émployes.
The book contains te n chapters,
w hich are term ed “o p eratin g sections,”
dealing w ith p aying and receiving, in ­
terio r proof and tra n sit, bookkeeping,
account analysis, loans and discounts,
collections, d rafts, certification and re ­
tu rn s, g eneral ledgers, savings, general
form s, and sim ilar functions. E ach
o peratin g section is in outline form,

and describes operating procedure in
step-by-step actions to be tak en by th e
person perform ing the w ork.
O perating form s, w ith accom panying
p rin tin g specifications, are illustated.
W herever possible, th e form s have
been filled in to show typical tra n sa c ­
tions and th e form s are in one instance
correlated and carried th ro u g h to th e ir
u ltim ate position in th e general ledger.
E ach outline of procedure is followed
by com m ents enlarging on th e m ate­
rial presented, and altern ativ e proce­
d ures and form s are com pared and
discussed.
In describing th e m anual, th e A. B.
A.’s B ank M anagem ent Commission
sets forth: “This m anual has been de­

$ 75,000
IO W A G U A R A N T E E , Inc.

signed p rim arily to m eet the needs of
banks w ith deposits of $5,000,000 and
less, and to serve as a guide in th e ir
operations, because in stitu tio n s of th is
size co n stitu te over 90 p er cent of th e
banks in th e U nited States. T here is,
how ever, so m uch sim ilarity in th e
fu n dam ental n a tu re of b an k operations
th a t m ost of th e m aterial in th e m an ­
ual is applicable to all banks, reg ard ­
less of size.
“Econom ic changes of th e p ast few
years have decreased b ank incom e and
increased expenses, v itally affecting
n et earnings. C onstant increase in
salaries and w ages in relatio n to gross
incom e stresses th e fact th a t b ank
o perating m ethods should receive
m ore attention.
“R ecognition th a t n et earnings m ay
be increased by stream lin in g operating
m ethods led th e Com m ission to stu d y
b anking procedures and form s. As a
re su lt of th is study, th is m anual has
been prep ared w hich em bodies th e
Com m ission’s findings and recom m en­
dations, show ing w ays and m eans to
m odernize and develop b an k opera­
tions.”

LE G A L DEPARTMENT

10 Year 41% Sinking Fund Debentures

rather than the am ount of the p olicy
lim it.

Due December 31, 1950
Denominations: $1,000—$500

Interest dates:

July 1 and Jan. 1

C E N T R A L N A T IO N A L B A N K & T R U ST CO.
D ES M O INES, T R U S T E E

R E D E M P T IO N : The Debentures are redeemable at the option of
the Company in whole or in part (in multiples of $5,000 by lot) at
any time prior to maturity date, upon at least a 20-day published
notice, at 100 per cent plus accrued interest to date of call.
SIN K IN G F U N D : Sinking Fund payments will be made annually
to the Trustee, either in cash or in Debentures at their par value, in
amount equal to at least 5 per cent of the maximum principal amount
of these Debentures at any time outstanding.
All legal matters in connection with the issuance of these Debentures
are to be approved by Messrs. Brammer, Brody, Charlton & Parker,
Attorneys, Des Moines, Iowa.
PRICE: 98.00 and accrued interest.

J ackley

6? C o m p a n y

IN V E S T M E N T S E C U R IT IE S
EQUITABLE BUILDING

DES MOINES
Detailed Prospectus on Request

(C ontinued from page 20)

PHONE 3-5181

A bank loaned m oney to an estate on
notes secured by a deed of tru s t to
p ro p erty of th e estate. T he pro p erty
depreciated in value and th e estate
becam e insolvent. The beneficiary, al­
though not personally liable on the
notes, su rren d ered th e p ro p erty to the
b ank in cancellation of them . A loss
resulted. Can th e b ank claim it as a
capital loss for federal incom e ta x p u r­
poses?
No. T here w a s no sale or exchange
of a capital asset in the facts outlined
in th e q uestion. There w as, how ever,
a w in d in g up of a had debt transaction,
so th at the loss resu ltin g to th e bank
from its acceptance of the secu rity in
can cellation of the n otes w as deducti­
ble as a bad debt.
W here a creditor ru n s a g a rn ish ­
m en t or attach m en t ag ain st a debtor
of a person indebted to th e creditor
and such person dies w hile th e p ro ­
ceedings are pending and before a final
judgm ent, does such death abate or
dissolve the g a rn ish m en t or a tta c h ­
m ent? Assum e, in an sw erin g this
question, th a t th e applicable statu tes
m ake no specific provision for such a
contingency.
The rule p revailin g in m ost ju ris­
dictions is th at the death of th e prin-

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1941

31
cipal defendant does not affect the at­
tach m ent or garn ish m en t w here there
is no statu te p roviding for its su rvival
or dissolu tion.
California, Florida,
K entucky, and L ou isiana so hold.
There are, how ever, decision s to the
contrary in M ichigan, N orth Dakota,
and W est V irginia.
B rackton oAvned a farm in Iowa.
Jo rd an , a neighbor, w rongfully de­
stro y ed some of th e screens on some
of th e buildings and B rackton sued
him for dam ages. In th e suit, Brackton sought to recover on a basis th a t
th e farm w as w o rth a certain am o u n t
before th e dam age and a certain
am ount th e re a fte r and th a t he w as en ­
titled to th e difference. W as such a
pro p er m easure of dam ages?
No. If a th in g destroyed or rem oved
from real property, althou gh a part
thereof, has a valu e th at can be accu­
rately m easured or ascertained w ith ­
out reference to the soil on w h ich it
stands, the recovery is the valu e of
the th in g th u s destroyed or rem oved,
and not the difference in th e value
of th e land. The screen s destroyed
w ere w ith in th is rule and B rack ton ’s
m easure of dam ages AA’as th eir t^alue.

E. H. Rollins & Sons
Incorporated

Complete Investment Services
for Banks and Individuals

Loan Income Up
Incom e from loans of th e in su red
com m ercial b an k s of th e co u n try in ­
creased by $42,000,000 in 1940 to total
$769,000,000, h ig h est since th e incep­
tio n of deposit insurance, th e F ederal
Deposit In su ran ce C orporation has re ­
ported. T his increase is attrib u te d
chiefly to an expansion in th e volum e
of loans and discounts o u tstan d in g in
th ese b an k s as a re su lt of th e h e ig h t­
ened defense in d u stria l activity. Gross
earn in g s w ere larg er in 1940 th a n in
1939, reflecting chiefly th e g ro w th in
incom e from loans.
D espite th e increase in incom e on
loans and in gross earnings, th e re w as
a decline of $6,000,000 in n et earnings
as com pared w ith 1939. Gross e a rn ­
ings increased $28,000,000, w hile gross
expenses increased $34,000,000 d u rin g
th e year.
The tab u latio n of 1940 statem en ts of
earnings, expenses and dividends of
in su red com m ercial b anks disclosed
th e follow ing additional facts:
1. N et profits before dividends w ere
$13,000,000 h ig h er in 1940 th a n in 1939
and, w ith th e exception of 1936, w ere
g re a te r th a n for any o th er y ear of
deposit insurance. T his increase over
1939, in th e face of low er n e t earnings,
w as a re su lt of th e fact th a t losses and
charge-offs on assets declined consider­
ably m ore th a n did recoveries.
2. T he decline of $32,000,000 in p ro f­
its and recoveries on assets d u rin g th e

obligations issued by or guaran teed by
th e U nited States governm ent and
obligations issued by states and o th er
political subdivisions, w hich yield low­
er rates of re tu rn th a n do th e obliga­
tions of in d u strial corporations.
5. In te re st paid on tim e and savings
deposits declined in 1940 for th e sixth
consecutive year. O ther expense item s,
how ever, increased considerably.
6. Common and p referred cash divi­
dends declared and in terest paid on
capital am ounted to $237,000,000 in
1940, as com pared w ith $232,000,000 in
1939. F o r all in su red com m ercial
banks th e ra te of dividends on common
capital show ed an increase for th e

y ear w as attrib u tab le alm ost en tirely
to th e decrease in profits and recov­
eries on securities. Recoveries on
loans rem ained th e sam e in 1940 as
in 1939.
3. T otal losses and charge-offs on as­
sets w ere $52,000,000 less in 1940 th a n
1939. The decrease w as ap p aren t in
all classes of assets, b u t losses and
charge-offs on loans show ed the
largest p roportionate decline.
4. In te re st and dividends on securi­
ties decreased for th e fo u rth consecu­
tive year and w ere low er in 1940 th an
for any year of deposit insurance.
T his dow nw ard tre n d reflects th e in ­
creased concentration in holdings of

•

Bonds
PUBLIC UTILITY
RAILROAD
INDUSTRIAL
M UNICIPAL

m

E d w a r d H. K a n e

H. G e r a l d N o r d b e r g

Io w a R e p r e s e n ta tiv e

R e s id e n t M a n a g e r

1010 American Trust Bldg.
Cedar Rapids

1114 Northwestern Bank Bldg.
M inneapolis

NEW YORK
SAN FRANCISCO

CHICAGO
PHILADELPHIA

BOSTON
LOS ANGELES

Northwestern Banker

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

June 1941

32
th ird consecutive y e a r and averaged
9.0 p er cent in 1940. In te re st on capi­
tal notes and deben tu res and dividends
on p referred stock in 1940 averaged 3.8
per cent of book value b u t only 2.9
p er cent of retirab le value.

A. B. A. Graduate School
The G raduate School of B anking,
educational arm of th e A m erican
B ankers A ssociation for bank officers,
w ill en te r its seventh an n u al resid en t
session a t R utg ers U n iv ersity on Ju n e
16th, w ith a fresh m an class of a t least
242 students, a g rad u atin g class of 184,
and a stu d en t body of m ore th a n 650,
it is announced by Dr. H arold Stonier,

d irector of th e G raduate School and
A. B. A. executive m anager.
T he two-week sum m er session, w hich
b rings to g eth er b ank executives from
all sections of th e co u n try w ho are en­
rolled in th e school for classroom and
sem inar w ork, is p a rt of a three-year
course leading to a banking diplom a
issued jointly by th e A ssociation and
R u tg ers U niversity.
T his y ear’s resid en t session w ill fea­
ture, in addition to th e reg u lar courses
of study, heavy em phasis on th e in te r­
relatio ns of b anking and governm ent.
A new. course entitled “B anking and
G overnm ent,” to be given u n d er the
direction of Dr. P aul F. Cadman, A.
B. A. econom ist, and A. L. M. W ig­

B O N D S
Public U tility
In dustrial
R a ilro a d
M unicipal
A .C .A L L Y N and C O M PA N Y
In corp orated
lOO W e s t M on roe S tre e t, C h ic a g o
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

Om aha
D es M oines

B o sto n
C e d a r R a p id s

gins, ch airm an of th e association’s
com m ittee on F ed eral legislation, will
be augm ented w ith evening lectures
by M ark Sullivan, W ashington col­
um nist, and U. V. W ilcox, correspond­
en t in th e n atio n ’s capital for the
A m erican B anker, and au th o r of n u ­
m erous publications on banking. In
addition, F a th e r E dm und J. W alsh,
S. J., of Georgetown, U niversity, W is­
consin, w ill address th e banker-stu­
dents on social trends.
A panel discussion of defense lend­
ing by banks w ill also be conducted at
one of th e school’s evening sessions.
The p articip an ts of th is panel discus­
sion, all of w hom are G. S. B. faculty
m em bers, are W illiam G. F. Price, as­
sistan t vice presid en t of th e N ational
City B ank of New York; David C.
B arry, vice presid en t of th e LincolnAlliance B ank and T ru st Company,
R ochester, New York, and J. H arvie
W ilkinson, vice p resid en t of th e StateP lan ters B ank and T ru st Company,
Richm ond, V irginia, w ho is chairm an
of th e A. B. A.’s N ational Defense
Loans Committee.
The G raduate School’s faculty this
year includes th ree new m em bers in
addition to Mr. W iggins, w ho w ill lec­
tu re in th e new course on banking
and governm ent. The th ree o th er
new com ers to th e G. S. B. faculty are:
W illiam A. W hite, su p erin ten d en t of
banks of th e state of New York; Mayo
B. S hattuck, m em ber of th e law firm
of H ausserm an, Davison, and S hat­
tuck, Boston, M assachusetts, and Otto
C. Lorenz, consum er credit research
ex p ert for th e A m erican B ankers
Association.
Dr. O. C. Carm ichael, chancellor of
V anderbilt U niversity, w ill deliver the
com m encem ent address to th e school’s
g rad u ates on F riday, Ju n e 27th.

>-

A

Commercial Paper and Bonds
Since 1893

4 . G. Becker & Co.
I NCORPORATED

100 SOUTH L A SA LLE S T R E E T • CHICAGO

New York and other cities

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19J1

Speak Your Prospect’s Language—

Say I t in English
H E R E is a n a tu ra l tendency on
th e p a rt of salesm en th e w orld
over to learn to th in k in term s of
th e g lossary of technical w ords and
ph rases w hich apply specifically to th e
com m odities th ey sell. T h ro u g h con­
sta n t association these expressions are
in g rain ed in sales vocabularies u n til it
becom es second n a tu re to use them
w hen discussing th e m erits of products
w ith th e public a t large. B ut in th e
h eat and en th u siasm of th e sales p re ­
sen tatio n the salesm an often forgets
th a t he m ay be u tte rin g a strin g of
p a tte r th a t is en tirely foreign to th e
lay ear. He m ight ju st as w ell be
speaking in Chinese or some o th er
foreign language for all th e m eaning
his w ords convey to his E nglish-speak­
ing prospect.
F ew salesm en are exem pt from this
subconscious habit, w h e th e r th e y sell
in su ran ce or ice cream .
Suppose th a t you are in th e m ark et
for a radio. Im agine y o u r confusion
if th e salesm an w ho hopes to sell you
his latest m odel should launch into a
technical b arrag e of term s w hich
sound in effect som ething like this:
“Can I in te re st you in th e latest 12tu b e super-heterodyne receiver w ith
class A am plification, w ith beam pow er
o u tp u t tubes? Our n ew est m odel has
a m odern co n v erter in th e R F section,
and rem ote control tuning. T his set
also has tu n in g bands of 20, 31, and 49
m eters, as w ell as an a irc ra ft com m uni­
cation chan n el.”

T

As a scientific description of an upto-date radio, th ese w ords are perfect,
b u t as an u n d erstan d ab le sales p re se n ­
ta tio n —quite useless! By exam ining
the set closely and by w atch in g the
salesm an ’s gestures, you m ig h t be able
to gain a rough idea as to w h at he w as
talk in g about, b u t w ould you have any
p a rtic u la r d esire to b u y th e set?
P robably you w ould w a n t to know
w h e th e r th e set has clearness and vol­
um e, w h e th e r it has tone control and
p u sh-button tuning, w h e th e r it will
pick up E u ro p ean and sh o rt w ave sta ­
tions, and w h a t advantages it has over
com petitive m akes, and, unless you are
a radio expert, you w an t to be told
th ese th in g s in th e sim plest and m ost
direct m a n n e r possible.

By Stanley F. Withe
M a n a g e r P u bli city D e p a r t m e n t
Aetna C a sua lty & Surety Co.
H artford

STAN LEY

F. W IT H E

No, radios, refrig erato rs, autom o­
biles, and m ost o th er form s of m er­
chandise are n ot sold th a t w ay—and
n e ith er is insurance!
In the first place, th e protective v al­
ues of insurance m u st be visualized by
the prospective buyer en tirely th ro u g h
his im agination. Add to th is th e fact
th a t th ere are of necessity m any legal
and con tractu al term s w hich are at
best only p artially understood by the
average laym an, and we have in in su r­
ance a com m odity w hose m erits, m ore
p erhaps th a n m ost o ther com m odities,
req u ire simplified, hum anized p resen ­
tation.
The prospect w an ts to know w h at
in surance protection w ill do for him.
In su ran ce term inology in te rp re ts his
con tract in precisely-correct legal form
and in a w ay en tirely clear to the in ­
su rance ex p ert him self, b u t th e av e r­
age b u y er is able to find out w h at
th e protection w ill do for him only

th ro u g h a com m on denom inator of
w idely-used w ords and phrases. F ail­
ure of the agent to reduce his p resen ta­
tion to th is denom inator no doubt ac­
counts for th e loss of m any sales
w hich he is unable to explain.
L et us take th e case of Jack R oberts,
a typical insurance agent w ith typical
problem s to solve. Jack is well train ed
in insurance sales fundam entals. He
is enthusiastic, a h ard w orker, b ut
som ething seem s to re ta rd his produc­
tion. He consistently loses sales w hich
he feels should have dropped into th e
bag like ripe plum s. Jack looses a lot
of valuable sleep pondering over his
problem . He know s th a t his approach
is right, know s w h at his prospects
need—he m akes it his business to find
out before calling. F u rth erm o re, he is
convinced th a t he explains the various
coverages in detail.
P erh ap s th e trouble lies in this la t­
te r conviction of Ja c k ’s—perhaps he is
too detailed in his explanations; so
anxious to m ake his prospect see the
advantages of his con tract th a t he sub­
consciously lapses into insurance
phraseology. L et us exam ine th e fol­
low ing conversation betw een Jack and
his client, Mrs. Brow n, and determ ine
w h eth er or not this m ay be the case:
Jack: “Yes, Mrs. Brow n, I have ex­
actly th e policy you need. Now this
policy will indem nify you for loss of
all p ro p erty covered against th e haz­
ards of burglary, th e ft and larceny
from w ith in th e prem ises. F u rth e r­
more, the coverage is extended to in ­
dem nify you for th e loss of the prop­
e rty from any safe deposit box in any
bank or tru s t com pany. You’ll be glad
to know also th a t this co ntract con­
tain s a ‘perm issible vacancy’ clause
of six m onths.”
Mrs. B.: “B ut Mr. R oberts, w ould
I be insured w hile I ’m aw ay from
home? You know, I go to F lorida for
th ree m onths every year, and th a t’s
w hen I ’m m ost concerned about things
here at hom e.”
Jack: “T h a t’s ju st w h at I said, Mrs.
Brown, th is policy . . .”
B ut—did Jack actually say that? No.
He told Mrs. Brow n th a t th ere w as a
“perm issible vacancy” clause in his
b u rg lary contract, b ut it m eant abso­
lutely n o thing to her. L et us now reNorthwestern Banker


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Federal Reserve Bank of St. Louis

June 19bl

34
exam ine th is conversation as it m ight
have been if Jack had rem em bered to
“say it in E n g lish ”:
Jack: “Mrs. B row n, we have a con­
tra c t th a t I th in k is ju s t w h a t you
need. If a b u rg lar should b reak into
you r home, or if a n y th in g should be
stolen by se rv a n ts or sn eak thieves,
the insurance com pany w ill m ake good
any loss or dam age. Or, if any of y o u r
jew elry or o th er belongings should be
stolen from y o u r safe deposit box in
the bank, th e com pany w ill pay you
for th e loss. E v en w h en you go south

Des Moines, Iowa

BANKER
AGENTS
WANTED
The oldest mutual company of its
kind in America offers liberal
agency contracts covering—
•

AUTO INSURANCE

•

TORNADO INSURANCE

•

TOWN DWELLING INSURANCE
HAIL INSURANCE
on Growing Crops

•

Over $1,250,000 cash surplus—
48 years of proven protection.
W r i te

fo r ou r li b e r a l p r o p o s itio n
b a n k r e p r e s e n ta tiv e s .

to

n e x t w inter, y o u r insurance continues
to p rotect yo u r belongings here at
hom e.”
Mrs. B.: “Well, Mr. R oberts, th a t
sounds like th e kind of insurance I
need. D uring th e tim e th a t I am in
F lo rid a each y ear is w hen I ’m m ost
concerned about th in g s at hom e.”
T hus we see th a t w hile Mrs. Brow n
m ay not be in terested in a “perm is­
sible vacancy” clause, she is in terested
in know ing th a t she w ould be paid if
h e r jew elry, silverw are, or o th er v alu ­
ables should be stolen w hile she is
aw ay from home.
T he term “m edical reim b u rsem en t”
m ay m ean little to Officeworker Sm ith
or to M erchant Jones, b u t both m en
w ill listen w hen you talk about pay­
ing th e ir doctor and hospital bills if
th e y should be in ju red in an accident.
T he sam e prospect w ho is not in te r­
ested in th e Class A am plification fea­
tu re s of a radio also is not in terested
in release of attach m en t and service.
He would, how ever, be glad to know
th a t his autom obile policy offers a
m eans of g etting out of th e sheriff’s

EMPLOYERS
MUTUAL
CASUALTY COMPANY
DES MOINES
An Agency Company — Assets Over $4,000,000

• Automobile Insurance
Workmen’s Compensation
• General Liability
* Elevator Insurance
• Plate Glass Insurance

MR. BANKER
A tree Vacation Provided each year for our Qualified Rural Banker Friends—
PLUS A PROFIT

“ This year The B eautiful Black H ills”
Hdqs: ALEX JOHNSON HOTEL—one of the finest Resort Hotels in the West.
QUALIFICATION
Only $50,000 of Business Produced by our Special Representative. We do
the work—you cooperate on our Proven Plan. We Guarantee satisfactory
results on this Exclusively Rural Bankers Plan.

Policyholder’s National Life Ins. Co.
Old Line Legal Reserve
Sioux Falls

N orthwestern Banker

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

South Dakota

June 19

clutches so th a t he could be on his
way, in case he should become in ­
volved in an autom obile accident.
A nd so it goes. H undreds of “Jack
R o b erts” are losing sales daily because
th ey m ake th e m istake of p resenting
insurance protection to th e public in
the p arap h rases of th e insurance busi­
ness ra th e r th a n in th e term s used by
the butcher, th e baker, th e factory
m an or office w orker, to signify th a t
sam e protection.
T alking th e p rospect’s language m ay
not in itself clinch th e sale. O rdinarily
th ere are a nu m b er of reasons w hy the
prospect hesitates to buy, b u t if you
m eet his objections — overcom e his
h esitatio n —in w ords th a t he w ill clear­
ly und erstan d , you w ill find your w ork
m uch easier. It is a good idea to go
over y o u r sales talk s from tim e to tim e
and analyze your explanations of th e
various policy coverages. S ubstitute
plain, forceful language for th e w ords,
phrases and sentences w hich m ay be
technically correct b u t w hich serve
only to confuse and irrita te yo u r pros­
pect. D on’t ta lk policy phraseology.
T alk client protection—and “say it in
English!”

V

V

Bank Loans for Defense
N early one billion dollars of com m it­
m ents for loans to finance th e produc­
tion of defense supplies w as rep o rted
to th e A m erican B ankers A ssociation
as o u tstanding on M arch 31, 1941, by
345 banks in 137 cities, according to a
high-spotting surv ey m ade by th e asso­
ciation and recen tly released for pub­
lication.
To obtain an indication of th e tre n d
in th e volum e of credit extended for
the financing of defense orders, th e
A. B. A. queried 500 of th e larg er
banks. Of this num ber, 345 in stitu ­
tions in 137 cities replied th a t th ey had
o u tstan d in g on M arch 31st, com m it­
m ents to taling $934,197,688 on 5,894
loans. In addition, th e rep o rted “nego­
tiations in progress w ith loan likely to
re su lt” on 434 applications to taling
$97,027,352. Of th e com m itm ents made,
$429,050,262 w as actually in use on
M arch 31st.
The su rv ey revealed th a t 70 p er cent
of th e com m itm ents w ere m ade w ith ­
out assignm ent of con tract and th a t
such assignm ent w as req u ired in only
30 p er cent of th e loan transactions.
The 345 banks rep o rted 2,298 loan
com m itm ents for production of su p ­
plies and equipm ent to taling $394,941,425 and 2,358 for construction w ork
and p lan t facilities to taling $355,093,620.
In addition, th ey rep o rted 75 loans
for “capital purposes,” totalin g $13,893,105; 1,162 loans for “w orking capi­
tal purposes,” to taling $170,104,538, and
for “purpose unclassified,” $165,000.

A

+

35

Anchor Casualty C o.
One of th e o u tstan d in g financial in ­
stitu tio n s of St. P aul w hich w ill extend
a w arm welcom e to v isitin g b an k ers
at th e a n n u al convention of th e Min-

'

P le n ty o f F ield H elp
Helps You Build Business

I n t e l l i g e n t , tr a in e d fie ld
s e r v ic e m e n a lw a y s a r e
a t th e d is p o s a l o f W e s te r n
H E N R Y G U T H U N Z , JR .
E x e c u tiv e V ic e P r e s id e n t

nesota B ankers A ssociation is th e A n­
chor C asualty Com pany, organized in
1926 for th e w ritin g of autom obile in ­
surance. T his com pany has become

M u t u a l a g e n ts .

I n v e s t i­

gate what this extra
s e r v i c e m a y m e a n to
your agency.

L egal R eserv e — N o n -A sse ssa b le

F ir e a n d A u to P o lic ie s
S ta n d a r d P o lic y F o r m s

A. L. R O O C H
A s s is ta n t V ic e P r e s id e n t

W estern M utual
F ir e I n s u r a n c e C o.

one of th e o u tstan d in g casualty com pa­
nies of th e country.
T otal assets of th e A nchor C asualty
as of th e first of th is y ear w ere $2,946,655, and su rp lu s to policyholders w as
$877,035. T otal n et w ritin g s for 1940
w ere $2,088,040.

9th a n d G ran d

D es M o in es, Io w a

" O v e r a Third of a Century of Safety and Service With Savings”

Northwestern Banker

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

June 19bi

36

Trained Workers
R esponding to th e defense em er­
gency, th e n a tio n ’s vocational schools
are pourin g m ore t h a n 1,250,000
train ed w o rk ers into in d u stry d u rin g
the 1940-41 school year. T his is in
co n trast w ith th e first W orld W ar,
w hen th e new born vocational school
system could tra in only 60,000 m en in
a year and a half, according to a study
by N o rth w estern N ational Life In s u r­
ance Company.
A m illion of the new train ees are
“p riv a te s” for th e in d u strial arm y —

AD -IT O R IA L
For N ational D efense —
A M E R IC A N S W IL L SAVE
SO U N C L E SA M C A N SPEND
In the wake of appeals for greater
and still greater effort toward producing
the sinews of A m erica’s total defense
comes the call for stepped-up activity on
another front — the call by U ncle Sam
for more diligent th rift an d saving by
every loyal citizen.
Perhaps never before in history was
the need for personal th rift so im pera­
tive. Individual saving on a large scale
is the necessary offset to public spend­
ing on a large scale. It is our best safe­
guard against inflation w hich in an ex­
trem e form w ould endanger, and per­
haps nullify, our all-out efforts to keep
Am erica strong and free. Life insur­
ance, as a sound and proven m edium of
saving, is prepared in a practical w ay to
help every A m erican respond to the
challenge of today’s crisis.
W h e n the present em ergency is over,
however, the dollars w hich m en and
w om en save now through life insurance
w ill contribute to another k ind of n a ­
tional defense. T h e y will stand by as
potential purchasing pow er for goods
and services people need and w ant, to
assist in keeping industry’s w heels tu rn ­
ing and fam ily breadbaskets full w hen
the inevitable end of today’s transient
prosperity arrives. T h e n , as in times
past and present, life insurance will
continue to dem onstrate its practical
w orth as a m ighty, beneficent force con­
tributing tow ard a larger m easure of
security for every Am erican.
— A n advertisem ent of N orthw estern
National Life Insurance C om pany
of M inneapolis.

Northwestern Banker

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

June 1941

products of “quickie” tra in in g courses
of six w eeks or more, u n d er th e em er­
gency train in g program begun last
July. Most of them are train ed for a
single operation in m ass production,
and need skilled supervision.
B ut at least a q u a rte r m illion are
products of reg u lar vocational courses
of one to four years, w ith broad skills
and su p plem entary theoretical tra in ­
ing, w orkers w ho are adaptable to
m any jobs or for early forem anships—
excellent “non-com” m aterial for our
in d u strial legions.
The num ber of reg u lar students
tra in in g in public trad e and ind u strial
schools of th e U nited States w ill reach
an estim ated new high of over 800,000
for 1940-41, th e su rv ey states. The
U. S. vocational school system is now
a billion-dollar plant, com prising 1,053
schools in 900 cities.
A nother 50,000 stu d en ts are enrolled
in p rivate, endow ed trad e schools
w hich give especially high caliber in ­
d u strial tra in in g courses of from one
to four years.
M eanwhile, p ro p rietary trad e schools
are increasing so fast th a t no estim ate
can be m ade of th e ir enrollees. M any
of th e new p riv ate trad e schools are
sound and legitim ate, b u t th ere is also
a w ave of “ra c k e t” trad e school p ro ­
m otions, stim ulated by th e publicity
given labor shortages, plus the long
w aiting lists at m any old established
schools.
The q uality of vocational school stu ­
dents is risin g even faster th a n th e ir
num bers, th e surv ey finds. E ven ten
years ago, vocational and trad e schools
a ttra c ted a heavy proportion of “m us­

B u s i n e s s is

cle boys” and those w ho had difficulty
w ith academ ic courses in reg u lar
schools. In recen t years a gradual
aw akening to th e opportunities for
technically train ed w orkers, plus the
defense expansion, has given trad e and
vocational high schools long w aiting
lists from w hich th ey are now draw ing
the cream of high school age youth.
M eanw hile p riv ate endow ed voca­
tional schools, m any of w hich w ere
form erly peopled by g ram m ar school
graduates, are now quite generally
lim iting th e ir reg u lar enrollm ents to
high school graduates. T hey are tra in ­
ing an am bitious, intelligent class of
young m en w ho look like engineering
college freshm en and sophom ores and
are th e ir equal in intelligence, stu d i­
ousness, and technical aptitudes.
Vocational schools in over 300 cities
are now ru n n in g on a 24-hour day,
six-day-week basis. W ith reg u lar day
classes generally jam m ed to capacity,
em ergency tra in in g groups had to be
sandw iched in betw een reg u lar even­
ing classes; “re fre sh e r” and “pre-em ­
p loym ent” classes w ere added betw een
10:00 p. m. and 7:00 a. m. and dubbed
the “daw n p a tro l” in m any schools.
Vocational schools in m ajor defense
m an u factu rin g centers, p articu larly
aircraft, are w orking in close coopera­
tion w ith th e m an u factu rers, and in
m any cases school tra in in g courses
have been modeled after apprentice
tra in in g program s of such com panies
as P ra tt & W hitney, Glenn M artin,
Vultee, Douglas, and Boeing. In m any
cases th e com panies have loaned
equipm ent and in stru cto rs to the
schools to speed tra in in g program s.

UP f o r

A llied M utual

a n d for t h e ALLIED M U T U A L AGENT
R ecord b rea k in g d a y s , w e e k s a n d m o n th s are co m in g
thick a n d fast for A llie d M utual C a su a lty C o m p a n y .
This m e a n s A llie d M utual a g e n c ie s co n tin u e to b e c o m e
in c r e a sin g ly v a lu a b le to the fa rsig h ted in su r a n c e a g e n c y
o rg a n iza tio n .

A L L IE D M U T U A L
CASUALTY COMPANY
Harold S. Evans, President
Hubbell Bldg.

Des Moines, Iowa

37
sion. And the handm aid to industrial
expansion m ust be th e h ealthy flow of
investm ent savings into industry. To
accelerate th a t flow is the job of th e
in vestm ent banking m achinery w hich
we have created th ro u g h th e years.”

Too Remote
Sweet Young Thing: “Mama! Mama!
Come here and m ake Dick stop teas­
ing me!”
Mama (from stairw ay landing):
“W hat is he doing, darlin g ?”
Sweet Young Thing: “H e’s sittin g
on the o th er end of th e davenport.”

THE
T he C horus of th e N o rth e rn T ru s t C om pany, C hicago

Northern Trust Chorus
The N o rth ern T r u s t Com pany
Chorus of 52 voices w as organized two
years ago to sing carols in th e b ank
th e day before C hristm as. Since th en
it has b roadcast th re e p rogram s over
Station WGN, Chicago, w ith The
N o rth ern ers, an octet of m ale voices
w hich The N o rth ern T ru st Com pany
has sponsored for alm ost 10 years.
M em bers of th e b a n k ’s staff th e chorus
is tra in e d and directed by H a rry S.
W alsh. The group, organized by W il­
liam M. Haddow, assistan t cashier,
expects to give a public concert early
next fall. The photograph show s th e
chorus a few m om ents p rio r to going
on th e air in th e ir latest radio a p p ear­
ance before a studio audience of 600
people.

Nominating Committee
E m m ett F. Connely of D etroit, p re s­
id en t of th e In v estm en t B ankers Asso­
ciation of A m erica for two term s end­
ing in Decem ber, has announced the
ap p o in tm en t of a no m in atin g com m it­
tee to recom m end new officers for th e
com ing year, including a new p re si­
dent.
The com m ittee w ill subm it its nom i­
nees to th e board of governors d u rin g
the n e x t few m onths.
Je a n C. W itte r of Dean W itte r &
Com pany, San Francisco, past p resi­
d en t of th e In v estm en t B ankers Asso­
ciation, w as nam ed ch airm an of the
com m ittee. O ther m em bers are Paul
W. Loudon of Piper; Jaffray & Hopwood, M inneapolis; L ow ry Sw eney of
L ow ry Sweney, Inc., Colum bus, Ohio;
Ralph C hapm an of F arw ell, C hapm an

& Company, Chicago, and A lbert H.
Gordon of K idder, Peabody & Com­
pany, New York.
In nam ing the com m ittee Mr. Con­
nely notified th e board of governors
th a t he w ould not stand for reelec­
tion eith er as p resid en t or as full tim e
ch airm an of th e public inform ation
com m ittee, w hich du rin g th e past year
has initiated a nation-w ide inform ation
program rep resen tativ e of th e in v est­
m ent banking view point. Mr. Connely
will, of course, continue to serve
th ro u g h o u t his term , w hich expires
w ith th e an n u al convention of the
association in December.
“I have a n u m ber of reasons and two
in p articu lar for not standing for reelection,” Mr. Connely said. “F irst,
ro tation of officers of an association
con stantly feeds new blood and new
ideas into its ad m in istratio n and, at
th e sam e tim e, avoids th e possibility
of self perp etu atio n of any official in
office.
“ Secondly, I feel I m ust re tu rn to
m y business in D etroit and to m y fam ­
ily, from w hom I have of necessity
been separated so m uch of th e tim e
th e p ast tw o years.
“The in v estm en t banking business,
along w ith all other groups of A m eri­
can industry, faces m any problem s
d u rin g the com ing year. And in all
groups th ere are defeatists w ho be­
lieve th a t the fu tu re of th is co u n try is
behind us. I don’t belong to th a t
group.
“If we expect th a t we shall continue
u n d er th e priv ate en terp rise system ,
and I do expect it, th e n th ere m ust be
expanding industry, for priv ate e n te r­
prise feeds upon incentive to expan­

P u b l ic
N a t io n a l
Bank
AND
TRUST COMPANY
OF NEW YORK
¡S e r v ic e — M ain tain in g an
intimate, personalized corre­
spondent bank service.
E x p e r i e n c e — Officials with
years of service in this field,
assuring a knowledge of re­
quirements and valuable as­
sistance.
P o l i c y — To cooperate with
out-of-town banks rather than
compete for business which is
rightfully theirs.

ESTABLISHED 1908
MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

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

Jane 19bl

UNITED STATES
\afiotta/ BANK o/Omalta

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

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Federal Reserve Bank of St. Louis

June 1941

39

NEBRASKA
NEWS
C A R L D . GANZ
P r e sid e n t
A lvo

Federal Financing Criticized
A ctivities of th e federal govern m en t
in th e financing of hom e b uilding op­
eratio n s “is not only not needed b u t is
c o n tra ry to and re p u g n a n t to th e w ill
of th e people,” P re sid e n t J. B. Doug­
las, T ecum seh, told fellow -m em bers of
th e N ebraska L eague of Savings and
Loan A ssociations in th e a n n u al con­
vention a t H otel E v an s in Colum bus
last m onth.
Douglas asserted co n tin u atio n of the
g ov ern m en t plan “has only th e su p ­
p o rt of th a t class of business w hich
benefits directly from th e p re se n t fa n ­
tastic plan of hom e financing offered
by o u r g o v ern m en t.” H e approved
th e p re se n t system of hom e loan
banks, how ever, and recom m ended
closer affiliation.
H e said “th e re does n o t ap p ear to
be an y reaso n for our associations a t­
tem p tin g to m eet long te rm loan com ­
p etitio n ,” because “h o n est people de­
sire to be debt free as soon as pos­
sible.”
D ouglas declared th e reserv es are
now a t th e ir h ig h est po in t in th e h is­
to ry of th e building and loan m ove­
m ent, and m em ber-firm s now have on
h an d th e sm allest am o u n t of real es­
ta te since th e beginning of th e dep res­
sion.
“Our c h a rte red building an d loan
associations are in th e stro n g est finan­
cial condition th ey have ever been in,
and are in a position to h andle all of
th e hom e co n stru ctio n needs of th e
state except em ergency housing in
w a r zones and th a t is m ore p ro p erly
a federal pro ject an y w ay ,” he said.
W ade M artin, su p e rin te n d e n t of th e
sta te b an k in g d ep artm en t, also h it at
federal financing com petition in a talk
th is m orning.
“I can n o t help b u t to believe th e
policy of FH A w ill sooner or la te r lead
to d isaster.”
M entioning several federal p ro ­
gram s by nam e, M artin said: “A lot of
these federal p ro g ram s look p re tty
screw y to m e.”
M artin said w hile th e n atio n is a t­
tem p tin g to m a in ta in its h eritag e of
lib e rty and freedom , “we should not

WM. B. H U G H E S
S ecreta ry
Om aha

allow these privileges to be lost from
w ith in .”

Bank Robber Sentenced
F ed eral Judge T hom as C. M unger
last m onth sentenced O rval L. Skinner,
29, of W innebago, to tw en ty years in
federal prison for th e attem p ted rob­
bery of the Saline S tate B ank at W il­
ber.

Addresses Bank Chapter
Dr. W illiam A. Irw in, of New York,
natio nal education d irector of th e
A m erican In stitu te of B anking, spoke
a t th e forum d in n er of th e organiza­
tio n ’s Omaha ch ap ter held recently at
th e Regis hotel. Certificates w ere p re­
sented to stu d en ts w ho have com pleted
th e In s titu te ’s course of study during
th e p ast year.

ju ry to try F ra n k Abegg of M inatare,
on a federal charge of allegedly cred it­
ing to him self $1,237.10 of F irs t N a­
tional B ank money.
As a director and agent of th e M ina­
tare bank, Abegg w as indicted by an
Omaha gran d ju ry on tw o counts, one
of crediting $1,237.10 belonging to the
savings account of Rosalie Sandoz,
Gordon, to his own account, and one
of m aking false e n try in th e bank
books to show th a t George E. Sandoz,
R osalie’s guardian, had w ith d raw n the
am ount.
The g overnm ent charged th a t Abegg
carried an individual ledger account
in th e b ank in his own capacity w hich,
u n til exhausted, w as subject to p ay­
m ent of checks draw n on th e ban k by
him.
Abegg entered a credit item Ja n u a ry
13, 1937, on his ow n account for $1,483.56, w hich rep resen ted $246.46 de­
posited by him and $1,237.10 deposited
in th e Sandoz account, th e charge de­
clared. Abegg, th e g overnm ent as­
serted, w rote checks th e sam e and
next days for $1,237.10.

Miss Woofers Promoted
T.
T. V arney of th e B roken Bow
State Bank, announced last m onth th a t
Miss W ilm a W ooters has been pro­
m oted to a ssistan t cashier. Miss
W ooters has been em ployed in the
b an k th e p ast tw o years.

Accepts New Position
Accepts New Position
R oland W. Daily of Scotia has ac­
cepted a position w ith th e B ank of
A m erica in California, and w ill begin
his d uties th ere Ju ly 1.
Mr. Daily has been w ith th e State
B ank of Scotia since Jan u ary , 1935,
and is now a ssistan t cashier of the
local in stitution.

Addresses Bank Meeting
J. F. M cDerm ott, vice p resid en t of
th e F irs t N ational B ank at Omaha,
w as th e guest speaker at a m eeting
of b an k ers of th e F o u rth Regional
C learinghouse A ssociation held in
th e A uburn hotel last m onth. A large
n u m ber of ban k ers from so utheast Ne­
b rask a w ere present.

Goes to California
C larence W etzel w ho has been em ­
ployed in th e F irs t N ational B ank of
S tu a rt secured a position in a b ran ch
of th e B ank of A m erica in a suburb
of San Francisco.

Banker on Trial
The May term of th e N orth P latte
division of U. S. d istrict court opened
th e re last m onth w ith selection of a

Miss Naomi Day of P lattsm o u th has
recently become a m em ber of th e
clerical force of th e P lattsm o u th State
Bank. Miss Day takes th e place of
T h o rn to n Baker, w ho is now em ployed
on th e w est coast.

Goes to Des Moines
W alter Olson, w ho has been em ­
ployed in th e Security N ational B ank
of L au rel for several m onths, left re ­
cently for Des Moines, Iowa, w here
he has a position in a bank in th a t
city.

County Bankers Meeting
T he Otoe County B an k ers’ sem i-an­
nual m eting w as held in th e high
school auditorium at B u rr last m onth.
A ban q u et w as served.

Fieldman Appointed
Roy L. K ing of C enter has been ap ­
pointed as fieldm an for th e F ederal
L and Bank, w ith his h ead q u arters a t
H artin g to n afte r he spends about a
m onth in train in g a t th e regional b ank
in Omaha. He has served as farm se­
cu rity adm in istratio n supervisor in
K nox county since July, 1937, and p re­
ceding th a t h ad served as a ssistan t in
Cedar county a t H artington.
Northwestern Banker


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

June 1941

40

•

NEBRASKA

NE WS

Live Stock Inspector Marries

Nebraska Resources

E a rl R. C herry, Jr., em ployed by th e
Live Stock N ational B ank as live stock
inspector, m arried Miss M ary Blakey
at th e parlors of th e F irs t C entral Con­
gregational C hurch of Omaha recently,
followed by a d in n er a t th e B lackstone
Hotel.
E a rl C herry is a form er resid en t of
Sioux county, N ebraska, w here he
grew up in th e ran ch in g business and
in Septem ber 1937 becam e em ployed
a t th e Live Stock N ational Bank. He
atten d ed th e Colorado State A gricul­
tu ra l College at F o rt Collins.

R esources of th e 360 insured com­
m ercial banks in the State of Ne­
b rask a totaled $390,531,000 on Decem­
ber 31, 1940, according to a survey
m ade public by the F ederal Deposit
In su ran ce C orporation.
Deposits in the in su red banks w ere
listed as $349,941,000. D em and deposits
of the latest call date am ounted to
$287,439,000 and tim e deposits totaled
$62,502,000.
Loans and discounts of th e 13,438 in ­
sured com m ercial banks th ro u g h o u t
th e co untry totaled $18,397,775,000, an

*
increase of $1,531,754,000 or m ore th an
9 p er cent over th e am ount rep o rted
D ecem ber 31, 1939. Deposits increased
from the $56,076,349,000 rep o rted the
previous year to $63,469,603,000, the
highest figure since in au g u ratio n of
deposit insurance.

Fifty-five Years
In the May issue of th e N o rth w est­
ern Banker reference w as m ade to an
an n iv ersary celebration by th e F irs t
N ational B ank of Shelby, in w hich the
y ear w as nam ed as the “thirty-fifth.”
We now learn th e year celebrated w as
th e “fifty-fifth.” W e are glad to call

Charter No. 2 0 9

First National Bank
o f Omaha

The

w. H. PIERCE

Oldest National Bank
From Omaha West
Nationalized 1 8 63
O F F IC E R S
T.
F.
J.
C.
J.
J.

L.
W.
F.
D.
T.
F.

D a v i s ............................................. P r esid en t
A. H .
T h o m a s ....................................................V ic e P r esid
O. en
Ht.
M c D e r m o t t ...........................................V ice P r e sC.
id e H
n t.
S a u n d e r s ................................................ V ic e P r e sid
n t.
E . eN
S t e w a r t , I I I .V ic e P r e s , an d C ashier
E. F.
H .e nAt.
D a v i s .........................................................V ic e P r e sid

M ORE
Ch i s h o l m .................. A ssista n t C ashier
E l l i o t t ........................................ A ss is ta n t C ashier
V e b e r .............................................A s s is ta n t C ashier
S o l o m o n .......................................A ssista n t C ashier
J e p s e n ........................................... A ssista n t C ashier
A rnsbergker ............. A ssista n t C ashier

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

Member
Federal Reserve System

th is correction to the atten tio n of our
readers, and congratulate th e F irs t N a­
tional B ank on its m any y ears of serv ­
ice to its com m unity.
W. H. Pierce, p resident of the F irst
N ational of Shelby, has had tw entytw o y ears of banking experience, and
at one tim e m anaged a b ank in St.
Joseph, M issouri, u n d er th e direction
of W alter W. Head.

Member
Federal Deposit Insurance Corporation

N EBRA SKA
N EW S
Page 75

YOUR STATE BANKERS ASSO CIATIO N
O FFICIA L SAFE, V A U L T AN D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19bl

41

W

ILLIAM A. SA W T ELL , president

of th e Stock Y ards N ational B ank
of South Omaha, is one of seven Omahan s n om inated for as m any v acan ­
cies on th e boai’d of directors of the
Om aha C ham ber of Com m erce at the
an n u al m eeting in June. He w ill serve
th re e years.
F a rm e rs and livestock m en belong­
ing to six production cred it associa­
tions in South D akota w ere re p re se n t­
ed at a two-day conference in Om aha
May 22-23.
T aking p a rt in th e credit m eet w ere
40 leading farm ers and stockm en re p ­
resen tin g the A berdeen, H uron, M itch­
ell, P ierre, W aterto w n and W in n er
associations, se c retary -treasu rers of
the six cred it co-operatives and re p re ­
sen tativ es of th e P roduction Credit
C orporation of Omaha.
Mr. and Mrs. IV. D ale Clark w en t to
Jacksonville, Illinois, th e w eek-end of
May 25th to a tte n d g rad u atio n ex e r­
cises a t M acM urray College, w here
th e ir daughter, M iss Jessie Clark, is a
m em ber of th e senior class. Mr. Clark
is p resid en t of th e Om aha N ational
Bank.
Mrs. C lark also atten d ed M ay day
festivities a t th e college, h onoring
m o th ers of students. Miss C lark served
as one of th e a tte n d a n ts to th e May
queen. The Om aha young w om an is
presid en t of th e g rad u atin g class,
sp o rts editor of th e college new spaper,
publicity m an ag er of th e a th letic a s­
sociation. She is a m em ber of P h i Mu
society of th e college choir and of

SELL YOUR BANK
The “Walters” Way
Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LTER S CO.
Omaha, Nebraska

Cap and Gown, senior honor society,
She m ajored in psychology.
Mr. and Mrs. Jo h n L au ritzen of M in­
neapolis cam e to Omaha recently to
atte n d the w edding of Miss K ath ry n
H osford and F ra n k T. H am ilton of
C incinnati. Mrs. L auritzen, form er
queen of Ak-Sar-Ben, is the d au ghter
of T. L. D avis, p resident of the F irs t
N ational B ank of Omaha, and Mrs.
Davis. Mrs. L au ritzen served as a
bridesm aid at th e wedding.

O. D. K iplinger, 83, vice p resid en t of
the N ebraska Savings and Loan As­
sociation, died recently at his hom e in
Om aha after a long illness.
Born in Ohio, he came to Council
Bluffs, Iowa, in 1880. Coming to Om­
aha in 1888, he opened a cigar business
in th e basem ent of the old F irst N a­
tional B ank building. A bout 25 years
ago, he becam e a director of th e Ne­
b raska Savings and Loan and became
vice p resident in 1928, w as active u n til
his fatal illness. He w as a m em ber
of the original Ak-Sar-Ben board of
governors, form ed in 1895. F or 32
years, he, w ith tw o others, w as in
charge of Ak-Sar-Ben parades. Since
boyhood, he had carried in his pocket
a buckeye, sym bol of his native state.
S urvivors include tw o sons, E a rl E.,
and Don C., and a daughter, Mrs. C.
C. Allison, Jr., all of Omaha.

Am ong stu d en ts a t N orth w estern
U niversity w ho took p a rt in the an ­
nual candle-lighting cerem ony recently
w as W arren Johnson, son of A lvin E.
Johnson, president of the Live Stock
N ational B ank of South Omaha, and
Mrs. Johnson. The young m an, a
sophom ore, is a Sigma Chi and d istrict
ch airm an of N o rth w estern ’s “w ildcat
council.” L ighting tap ers from the
u n iv e rsity ’s giant 100-year candle is

L I V E ST OCK N A T I O N A L B A N K - O M A H A
S ta te m e n t of Condition A p r il 4, 1941
RESOURCES
L o a n s and D is c o u n t s ................................ ............................................................................................$ 8,347,053.12
B o n d s and O th er S e c u r it ie s ....................
3,076.27
S to ck in F e d e r a l R e se r v e B a n k ........................................................................................................
30,000.00
B a n k in g H o u s e and F i x t u r e s .............................................................................................................
1.00
O th er R e a l E s t a t e ...............................................................................................................
N one
U n ite d S ta te s G o v ern m en t S e c u r it ie s ..........................................................$4,358,093.94
C ash, S ig h t E x c h a n g e
and D u e from F e d e r a l R e se r v e B a n k . . . . 4,643,588.10
9,001,682.04
$17,381,812.34

LIABILITIES
C a p ita l S to ck (C o m m o n )....................................................................................................................$
S u rp lu s (E a r n e d ) ..................................................................................................................................
U n d iv id e d P ro fits ..................................................................................................................................
R e se r v e fo r T a x e s , In te r e s t, E t c ...................................................................................................
U n ea rn ed D is c o u n t .............................................................................................................................
D iv id e n d s U n p a id .................................................................................................................................
D e p o sits :
B a n k s .................................................................................................................... $7,902,202.93
O th er D e p o s it s ................................................................................................. 8,082,020.47

15,984,223.00
$17,381,812.34

C A P IT A L & S U R P L U S

April 4,
April 4,
April 4,

L O A N S & D IS C O U N T S

D E P O S IT S

1933 - - - $ 550.000.00 - - - $1,885,786.91 - - - $ 4,130,565.06
1937 - - 750.000.00 - - - 3,257,719.43 - - - 12,082,457.77
1941 - - - 1.000.000.00 - - - 8,347,053.12 - - - 15,984,223.40

W e offer our f a c ilitie s fo r th e d e fen se p ro g ra m of th is g r e a t M iddle W e s te rn
a re a , in c lu d in g th e v i ta l L iv e sto c k , A g ric u ltu ra l a n d C om m ercial e n te rp ris e s
fo rm in g th e m a in lin e of our d e fen se .
A L V IN E . JO H N S O N , P re s id e n t.
T h is B a n k H a s N o A ffilia te d C o m p a n ie s
M e m b e r o f F e d e r a l R e s e r v e S y s te m a n d 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

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

500,000.00
500,000.00
215,031.87
172,527.50
5,411.16
4,618.50

June 1941

42
accom panied by a pledge of loyalty to
th e u n iv ersity by both stu d en ts and
alum ni.
Mrs. D avid Davis, w ife of an Omaha
N ational B ank executive, is one of the
leaders of a m ajor Om aha Red Cross
project—w ith a quota of 60,000 su rg i­
cal dressings by m id-June.
F ran cis P. M atthew s, O m aha a tto r­
ney and ch airm an of th e board of th e
Securities A cceptance C orporation, has
been elected a d irector of th e U nited
States Cham ber of Commerce. He
rep resen ts th e d ep artm en t of finance
on th e board.

• These two statements
appear to be in conflict,
but th e y ’ re n o t. W hen you
sell Personalized Checks
on National Safety Paper,
a l l cost is recovered.
T h is little L. H . C heck
B o o k o f ours is tre m e n d o u sly p o p u la r. F or
$ 1 .2 5 y o u r c u s to m e r g e ts : 2 0 0 c h e c k s —
im p rin te d w ith his n a m e —le a th e r cover, g o ld
stam p ed w ith his nam e a t n o e x tra ch arge on
o rig in a l orders. In te re stin g fo ld e r o n request.

Customer’s name on 200
checks a n d gold-stamped
on le a th e r case w ith
in itia l order

A ll f o r $ 1 , 2 5 1

De Luxe

Plants at

NEW YORK
CLEVELAND

CHECK

PRINTERS,

CHICAGO
KANSAS CITY
ST. PAUL

I NC.

Lithographers a n d Printers

THE BEST
ADDRESS

Bond in te re st expense of th e city of
Omaha dropped $49,830 a y ear recently
w hen bonds to talling $906,000 w ere
paid off a t m atu rity .
T he re tire d issues, all draw ing 5%
p er cent since 1921, included $363,000
of sew er bonds, $43,000 of p a rk bonds,
$500,000 of stre e t im provem ent bonds.
The paym ents reduced th e city ’s
g eneral bond debt to $7,230,650, in ­
cluding th e $500,000 of a irp o rt bonds
issued last fall. The all-tim e debt peak
w as $15,112,162 in 1932.
The ashes of Lew is Balcom be Reed,
b o rn in Om aha in 1880, w ho died in
Chicago, w ere recen tly com m itted to
P rospect H ill cem etery at Omaha,
w here his p arents, Mr. and Mrs. Lew is
S. Reed, pioneers, are buried.
Mr. R eed’s fa th e r w as p resid en t of
th e old N ebraska N ational B ank of
Omaha and th e son w as an executive
of th e A m erican R adiator Com pany in
E urope m any years, m ore recently
w as presid en t of th e M ercoid C orpora­
tion of Chicago. H e w as grad u ated
from Om aha C entral high school, and
from H a rv a rd U n iv ersity in 1901.
P aul H. S tew art of th e F ederal L and
B ank of Omaha, form er extension
agronom ist at th e U n iversity of Ne­
brask a a g ricu ltu ral college, discussed
“B alanced A g ricu ltu re” at th e an n u al
w estern N ebraska feeders’ day pro­
gram in N o rth P latte recently.

> » »

BOMBAY
ROOM

A IR

»

AMBER
ROOM

YEAR

»

BLACK
MIRROR

- »

»

Experienced travelers know the value
of stopping at a hotel of distinction.
The Fontenelle is a name you can refer
to with pride - pride that comes from
knowing the accommodations will be
excellent, atmosphere dignified and
refreshing, the address self sufficient.
Beautifully modernized throughout.

Northwestern Banker

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

CONDITIONED
ROUND

FOR

COMFORT

O M A H A 'S W ELC O M E
TO T H E W O R L D !
June 1941

y

V/

yy
V/
N/

yN/
N/
V/
V/
V/

y

L ouis C. B arta of th e Live Stock
N ational B ank of South Om aha re ­
cently w as elected presid en t of the
Om aha chapter, A m erican In stitu te of
B anking, succeeding P aul H. B urke of
the F irs t N ational B ank of Omaha.
T heodore A. Spau stat and M iss E th el
E. M ellor, both of th e Omaha N ational

Bank, w ere elected vice presid en t and
secretary, respectively. R alph F . M il­
ler of th e U nited States N ational B ank
of Omaha w as elected treasu rer.
T he an n u al banquet, A pril 23, closed
th e c h a p te r’s w in ter term . F ra n k Fo(T u rn to page 44, please)

43
Fred S. W allace, state AAA ch air­
m an, and A bner K. C hestem , m em ber
of th e state com m ittee, w ere p resen t
at the m eeting. E dgar M cBride, Blue
Hill, ch airm an of th e ag ricu ltu ral com­
m ittee, w as in charge of the m eeting.
Am ong those in attendance w as Carl
Ganz, Alvo, p resid en t of th e N ebraska
B ankers Association.

Lincoln Locals

]•

“TOTAL b an k deposits in th e 284 state
I b anks of N ebraska decreased $452,346 for th e period b etw een D ecem ber
31, 1940, an d A pril 4, 1941, according
to a com pilation m ade by th e state
ban k in g d ep artm en t. F o r th e b an k
call on D ecem ber 31 to tal deposits
w ere $77,092,644 ag ain st $76,640,298 on
A pril 4. D uring th is sam e period,
loans increased $3,286,126, to tal loans
on D ecem ber 31 being $39,448,330
ag ain st $42,734,456 on A pril 4.
T he am o u n t of U nited S tates gov­
ern m e n t bonds held by th ese b anks
also increased d u rin g th e th re e m onths
period. On D ecem ber 31 th e b anks
held $12,737,176 of such issues, w hile
on A pril 4 th is am o u n t h ad increased
$221,416 to $12,958,593.
D em and deposits of individuals de­
creased $16,499, th e to tal for Decem­
ber 31 being $48,245,869 ag ain st $48,229,300. Tim e deposits in creased $104,168, th e D ecem ber 31 to ta l being $19,-

"M

983,976 against $20,088,144 on A pril 4.
M unicipal deposits decreased $387,156
and th e am ount due from banks de­
creased $104,135.
T otal capital of these banks also
increased, th e D ecem ber 31 figure be­
ing $7,659,000 against $7,725,350 on
A pril 4. On th e la tte r date th ere w as
$7,094,900 in com m on stock, $288,750 in
p referred stock and $341,700 in de­
b entures.

CHATS

ABOUT

THE

"P A Y C "

PLAN

M em bers of th e ag ricu ltu ral com m it­
tee of th e N ebraska B ankers Associa­
tion w en t on record recently as favor­
ing th e proposed m ark etin g quota on
w heat. T he group m et w ith rep resen ­
tativ es of th e AAA a t H otel Lincoln in
Lincoln.
M em bers of th e association th ro u g h ­
out th e state w ere urged to get out
th e vote am ong th e farm ers on May
31, w hen th e referen d u m w as to be
held.

e e tin g

th e

T e s t"

C haracter, strength, a n d e x p e r ie n c e are corner
sto n e s of so u n d corresp o n d en t se r v ic e .

This

b a n k m e e ts the test on e a c h of th e se fea tu res.

C

W ade M artin, head of th e state b an k ­
ing departm ent, said recently th a t
state banks have th e au th o rity to qual­
ify and serve as agent in the sale of
national defense savings bonds. M ar­
tin, in a le tte r addressed to all state
banks in N ebraska, said all such banks
are authorized to co-operate w ith the

o n t in e n t a l

m

N
of-

a t io n a l

k

H E R E ’S part of a letter which
one of m y custom ers w rote ju st the
other day about the “P A Y C ” (P ayA s-Y ou-C heck) n o - m i n i m u m b a l­
a n c e C hecking Plan:
“. . . regarding the “PA Y C ” a c­
counts, w e have had very good luck,
opening about 30 n ew accounts in
the first 30 days of the service. The
average balance is about $60.00.”
This is more of the convincing
testim on y w hich w e have received
from bankers w ho are u sing the
“P A Y C ” plan. It is certainly proof
th a t “P A Y C ” in c r e a s e s b u sin ess.
In stall the “P A Y C ” plan in your
bank. W rite today and let me give
you all the fa c ts— no obigation, of
course.
V ery truly yours,
H. A. "HOWARD" MILLER
N O T E : I f y o u a re n o t on M r.
M ille r’s te r r it o r y , w r it e a n y w a y .
W e w ill r e la y y o u r l e t te r to th e
p r o p e r “ U . 8 .” r e p r e s e n ta tiv e .

L IN C O L N

U N IT E D
Member Federal Deposit Insurance Corporation

CHECK

STA TES

BOOK

OMAHA.

COMPANY

NEBRASKA

Northwestern Banker

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

June 19J1

44

• NEBRASKA
U. S. tre a su ry in th e sale of defense
savings bonds and defense savings
stam ps, and pledge collateral secu­
rity as req u ired by tre a su ry reg u la­
tions to obtain a supply of th e series E
bonds. B anks can handle th e series F
and G bonds on only an order basis
for th e ir custom ers.
M artin said in th e event banks de­
sire to stock a supply of stam ps, it is
suggested th a t these be carried as a
subdivision of th e ir bond account, in
a m an n er th a t w ill accu rately reflect

NE WS

the daily sales and purchases of
stam ps. He also suggested th a t the
b anks m aintain am ple insurance cov­
erage.
The G arden county d istrict court has
approved a receiv er’s rep o rt and dis­
solved the F arm ers State B ank of Lew ellen, w hich w ent into receivership
Septem ber 14, 1934, D irector of B ank­
ing W ade R. M artin seid. T otal divi­
dends paid w ere $10,658, 25.3 per cent
of th e $42,133 claim ed by depositors.

*
O M A H A C LEA R IN G S
(C ontinued from page 42)
garty, com m issioner of the Omaha
Cham ber of Commerce, w as speaker.
The d inner w as followed by a dance.
R ay S lizew sk i of the Stock Yards N a­
tional B ank of South Omaha rep re­
sented th e ch ap ter at th e d istrict ora­
torical contest A pril 26.
E lected to three-year term s as m em ­
bers of th e c h a p te r’s board of gover­
nors are Slizewski, Ray Cordes of the
F irs t N ational, (). E. A nderson, F ed­
eral L and B ank of Omaha.
Robert H all, executive officer of the
N orth Side B ank of Omaha, recently
captured honors in the Class C divi­
sion of th e skeet m eet at Omaha.

“V itam in s” and N ational D efen se
U n cle S am h a s drafted V itam in s a n d P roteins a s
k e y factors in n a tio n a l d e fe n se . So g rea t food b elts,
su ch a s the S iou x C ity a r e a m ust p ro d u ce m ea t a n d
grain , not o n ly for A m erica, but for d e m o c r a c ie s
a c r o ss the s e a .
This b a n k is h a p p y to se r v e in the p rogram for in­
c r e a s e d food prod uction . A n d w h e n you r cu stom er
sh ip s h is liv e stock , grain , h a y , a n d other products
to the S iou x C ity m arket, let u s se r v e a s yo u r cor­
re sp o n d en t b an k .

O F F IC E R S
C. L. F r ed rick sen , P r e sid e n t
M . A . W ils o n , V ic e P r e sid e n t
W . G. N e ls o n , A s s is ta n t V ic e P r e s id e n t
W . C. S ch en k , C ash ier
H . C. L in d u sk i, A s s is ta n t C ash ier
C. L . A d a m s, A s s is ta n t C ash ier
J. S. H a v er, A s s is ta n t C ash ier

D IR E C T O R S
C. R. M c K en n a . P r es., J o h n so n B is c u it Co.
B . L. S iffo rd , A tto rn ey , S iffo rd & W a d d en
G. F . S ilk n itte r . P r e s id e n t, S io u x C ity
S to ck Y ard s C om pan y
C. L . F r ed rick sen , P r e s id e n t
M . A . W ils o n , V ic e P r e sid e n t
H . C. B o s w e ll, S ecr eta ry -T re a su rer ,
W e s te r n C o n tr a ctin g C orp oration

“The Bank at the Yards”
Member Federal Deposit Insurance Corporation

LIV ESTO C K
NATION AL
BANK

Northwestern Banker

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

June 194-1

S. B. W illiam s, Jr., form erly w ith the
Federal L and B ank of Omaha as state
supervisor of W yom ing, has become
associated w ith the Live Stock N a­
tional B ank of South Omaha as a spe­
cial rep resen tativ e. He w as w ith the
land bank eight years. He and his
fam ily are m oving to Omaha.
Mrs. A. C. Potter, wife of the Omaha
in v estm en t banker, w ho spent the
w in ter in Palm Beach, Florida, w ith
her m other, Mrs. W. R. Sw eatt of M in­
neapolis, re tu rn e d to h er Omaha hom e
recently. She came hom e by w ay of
New York City and Chicago and w as
m et in Chicago by Mr. P otter. Tony
and Diane, th e P o tte r children, w ere
w ith th e ir m o th er in Florida.

Omaha banks pledged co-operation
w hen defense bonds w en t on sale in
Om aha recently for th e first timd.
F irs t Omaha p u rch aser was City Com­
m issioner H a rry K nudsen. Charles
F. W ille, m oney order cashier in the
postal service at Omaha since 1890,
is in charge of sale of bonds and de­
fense stam ps at the Omaha postoffice.
At a victory d in n er clim axing the
Ak-Sar-Ben m em bership drive, which
recru ited 7,494 “k n ig h ts” for 1941, J. F.
M cD erm ott, vice presid en t of the F irst
N ational B ank of Omaha, w as one of
th e speakers. P resid en t H. M. Bushn ell and Vice P resid en t R ichard Mal­
lory of the U nited States N ational
Bank, headed one team . A nother team
had W. B. M illard, Jr., vice president
of th e Omaha N ational Bank, as co­
captain.
John Carmody, form er secretary of
the Omaha F ed eral L and B ank and
now an official of the farm security
ad m in istratio n at 'W ashington, visited
Omaha and Lincoln recently on busi­
ness.

45
million; R. B. Stevens, Citizens Bank,
V erm illion; and Jo h n N. Thom sen,
B ank of Centerville.
H. E. E dm unds, cashier of th e A m er­
ican S tate B ank of Y ankton, and a
practical b an k er w ith m uch experience
and ability, acted as in stru cto r for the
class. A t the com pletion of the course
Mr. E dm unds w as p resen ted a w rist
w atch as a token of appreciation from
the class for his efforts in bringing
the class to a successful conclusion.

SOUTH
D A K O T A
NEWS
F. F. P H IL L IP P I
P r e sid e n t
M ilbank

Bank to Remodel
Bids closed May 23 on the rem odel­
ing job to be done at th e N ational
B ank of South Dakota, Sioux Falls.
The co n tract w ill call for a new v en ­
tilation system , acoustic tre a tm e n t,
fluorescent lighting, new cages for the
tellers, counters of glass and m arble
and new flooring.

State Bankers Meet
More th a n 55 state b an k ers in te r­
ested in operatin g b ran ch b an k s m et
in H u ro n last m o n th on call of Super­
in te n d e n t E rlin g H augo to discuss
plans for unifo rm bookkeeping sys­
tem s to aid in m aking state reports.
T here are 21 b ran ch b an k s in
South Dakota, and applications of th e
F a rm e rs and M erchants state b ank of
P lan k in to n to establish a b ran ch at
W hite Lake and of th e B ank of L em ­
m on to establish one a t Bison have re ­
cently been approved.

Stephenson Speaks
B ankers and tru s t officials of South
D akota m et at th e H otel C arp en ter in
Sioux F alls last m onth to h ear G ilbert
Stephenson, directo r of th e tru s t re ­
search division of th e A m erican B an k ­
e r’s association g rad u ate school of
banking.
Stephenson, w inding up a w eek ’s
flying to u r of the m iddlew est, spoke
at a noon luncheon m eeting and con­
ducted ro u n d table discussion d uring
th e aftern o o n before his talk to 75
b an k ers and tru s t officials a t th e 6:30
o’clock b an q u et m eeting.
All eight tr u s t d ep artm en ts of the
sta te w ere rep resen ted a t th e m eetings
sponsored by th e South D akota B an k ­
e r ’s A ssociation. George S tarring, sec­
re ta ry of th e association, and Ray A.
P ankow m ade th e arra n g e m en ts for
th e m eeting.

South Dakota Resources
R esources of th e 163 in su red com ­
m ercial b an k s in th e State of South
D akota totalled $119,689,000 on Decem­

G E O R G E M. S T A R R IN G
S ecreta ry -T rea su rer
H u ro n

ber 31, 1940, according to a survey
m ade public by th e F ederal Deposit
In su rance C orporation.
D eposits in the insured banks w ere
listed as $106,292,000. Dem and de­
posits of th e latest call date am ounted
to $74,723,000 and tim e deposits totalled
$31,569,000.
Loans and discounts of the re p o rt­
ing b anks am ounted to $51,883,000, an
increase of $8,692,000 over the Decem­
ber 31, 1939, total.
D irect and guaran teed obligations of
th e U nited States G overnm ent listed
by th e South D akota banks am ounted
to $16,625,000 on D ecem ber 31, 1940.
O ther securities totalled $13,481,000.
Loans and discounts of th e 13,438
in su red com m ercial banks th ro u g h o u t
the co untry totalled $18,397,775,000, an
increase of $1,531,754,000 or m ore th a n
9 p er cent over the am ount reported
D ecem ber 31, 1939. Deposits increased
from the $56,076,349,000 reported the
previous year to $63,469,603,000, the
highest figure since inau g u ratio n of
deposit insurance.

To Entertain Bankers
W ith th e South D akota B ankers
Convention m eeting in Deadwood
Ju n e 26th and 27th, the F irs t N ational
B ank of the Black H ills w ill act as
host to th e b ankers who w ill atten d
this im p o rtan t m eeting.
E xecutives in the Deadwood office of
the bank are: C. O. Gorder, vice p resi­
dent and m anager; A. H. Shostrom ,
a ssistan t cashier and assistan t m an­
ager; H. P. Person, assistan t cashier;
LaV ern M itchell, a ssistan t cashier.
A ccording to th e ir statem en t of
A pril 4, 1941, the F irs t N ational Bank
of th e Black Hills had total deposits
of $10,220,000, loans and discounts
$5,179,000, capital stock of $500,000,

Class Concludes Year
May 15 b ro u g h t to conclusion the
c u rre n t sem ester of class w ork in bank
organization and operation for 19 stu ­
dents receiving certificates of study
from th e S o u theastern South D akota
stu d y group of th e A m erican In stitu te
of B anking. These stu d en ts re p re ­
sented banks in seven tow ns besides
Y ankton. T hey w ere Centerville, Gayville, Irene, Tabor, Viborg, W akonda
and V erm illion.
M eetings of th e local group w ere
held in th e d irecto r’s room of the
A m erican State B ank each T h ursday
evening for 22 weeks, each session be­
ing tw o ho u rs in length.
The officers this year w ere, R ussell
B. K nudsen, A m erican State Bank,
Y ankton, president; M artin Slemp,
F irs t N ational Bank, Y ankton, secre­
tary -treasu rer; and th e board of gov­
ern o rs consisted of A. L. M ikkelson,
Security State Bank, W akonda; H. L.
Sm ith, N ational B ank of S. D., V er­

R. E . D R I S C O L L

su rp lu s of $325,000, and undivided
profits of $156,000.
The officers in charge of th e bank
at R apid City are: R. E. Driscoll, p resi­
dent; C. C. A nderson, executive vice
president; Noel W. K lar, vice president
and cashier; H. R. Brow ning, assist­
ant cashier; Jas. T. Noble, assistan t
cashier; M aude C. Nelson, assistan t
cashier and auditor; H. R. H orlocker,
a ssistan t cashier; H. A. B artlett, as­
sistan t cashier.
Northwestern Banker


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

June Ì9M

46

Regional Bankers Meet

South Dakota
Farm Mortgages
for Sale
•
S ecu rity lo c a te d in a ll se ctio n s
of the S tate. N ote a n d m o rtg a g e
am ortized o v er 10 y e a r s at 4
p er cen t interest.
lo a n s.

C o n se rv a tiv e

W ill se ll o n e or a ll—

n o d iscou n t.

W rite

RURAL CREDIT BOARD
Pierre, South Dakota

Regional B ankers of M cPherson,
E dm unds, P o tter, and F au lk counties
m et at th e Legion H all in Roscoe for
th e ir an n u al election of officers. P re ­
ceding the business session, th e tw en ty
m em bers p resen t enjoyed a tw o course
dinner.
H. C. Gross of Bowdle, p resid en t of
th e organization presided over the
business session. The follow ing of­
ficers w ere elected for th e ensuing
year: A rt H aerter, H osm er, president;
A ndy A nderson, C resbard, vice p resi­
dent, and Louis Schipke, Roscoe, sec­
retary .
B anking in stitu tio n s in the follow­
ing cities w ere rep resen ted at the
m eetings: Ipsw ich, C resbard, Roscoe,
Bowdle, Leola, H oven and H osm er.

Bowling Matches Closed
The F irs t N ational B ank of Beresford bow ling team closed its m atch
gam e season at V erm illion recently.
The schedule w as a successful one
w ith 68 victories and 47 losses in 113
m atches on alleys a t Beresford, Wakonda, Y ankton, Canton, Sioux Falls,
V erm illion, and Sioux City.
The bank team scored 95,606 pins
for an average of 831.3 p er game,

From y \ irp la n e Parts to j£inc
Inventories mean Loans!
If your clients
n e e d m on ey
an d
h a v e inventory
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tra c tiv e te rm s.

Field Warehousing byDouglas-Guardian
Over 18 years of experience rendering this specialized service.
References of finest quality. Customer list of high calibre.
W R ITE for FR EE Booklet. Your questions gladly answered.

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Nation-wide Field W arehousing Service
Suite 1104A, 100 W. Monroe St., Chicago, 111.
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C levelan d, Ohio Los A n g e le s, Cal.
D allas, T ex a s
M em phis, T en n .
N e w Y ork , N . Y.

N orthwestern Banker

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

June Í9bl

P h ila d e lp h ia , P a .
P o r tla n d , Ore.
T am p a. F la .
R o ch ester, N . Y .

S p rin g field , Mo.
S p rin g field , M ass.
S an F r a n c isco , C al.

w hile its opponents counted 92,514 for
a gam e average of 804.4.
The team personnel consists of
E lm er B ehnke, A rt N orling, V ern
H am erly, Les Volden, and E d Landeen. All of these reg u lars h ad av er­
ages of betw een 161.5 and 169.9. Carl
Volden, S. Salberg, L. Jacobson, Jo h n
Chadwick, Jess W im ple, and I. T anck
also filled in on th e b ank team and all
had good averages.

Civil Service Position
L o rrain e Donnason, w ho has been
em ployed w ith th e N orthw est Secur­
ity N ational B ank of G regory for the
p ast year, has left for W ashington,
w here she w ill be em ployed u nder
civil service.

-t

-y

A Prominent Banker Dead
A. H. B row n, 79, pro m in en t Mobridge business m an, died last m onth
a t his hom e in th a t city after an ill­
ness of tw o m onths.
Mr. B row n w as th e founder and
presid en t of th e Citizens B ank of Mobridge.

Directors Meet
D irectors of th e F irs t N ational B ank
of th e Black Hills, of R apid City, re p ­
resen tin g nearly every city in th e area,
held a reg u lar m eeting and luncheon
at th e A lex Johnson hotel, Rapids
City. C ham bers K ellar, Lead, ch air­
m an of the board, presided.

T

Bank Figures Up
S u p erin ten d en t of B anks E rlin g
H augo rep o rted a “steady increase of
s tre n g th ” for South D akota’s 124 state
banks in su b m itting a com parative
ab stract show ing the condition of the
in stitu tio n s as of A pril 4.
Com pared w ith a y ear ago, banks
show ed a to tal increase in resources
of over five m illion dollars and a like
increase in deposits, he said. Loans
and discounts show ed an increase of
m ore th a n four m illion dollars. A
com parison of a call A pril 4, 1941, w ith
M arch 26, 1940 follows: Resources,
$50,027,420, $5,008,761: Surplus, $1,236,628, $124,636; U ndivided profits, $1,105,568, $205,813; Total Deposits, $43,657,496, $4,690,734; Loans and Dis­
counts, $23,459,064, $4,670,207.
The second figure in each group in ­
dicates th e increase.

Banker Passes Away
C. A. Stone, 59, p resident of the
F a rm e rs S tate B ank of C arthage since
1919, died th ere last m onth after a
w eek’s illness from a cerebral h em or­
rhage. Mr. Stone w as form erly in the
banking business a t A ndover.

A

47

— ---------------------- - •

S O UTH D A K O T A

Bank Clearings Increased
B ank clearings for th e m onth of
A pril show ed an increase of $2,400,011.84 over th e fo u rth m onth of last
y ea r it w as revealed recen tly a t th e
Sioux F alls clearing house in th e
N o rth w est S ecurity N ational B ank.
T he figures for th e m onth show ed a
to tal of $8,425,834.97 for A p ril’s b an k
clearings here th is year, as ag ain st
$6,025,823.13 for th e sim ilar m o n th in
1940.

Directors' Meeting
The directors of th e B ank of K im ­
ball held th e ir re g u la r m eeting a t K im ­
ball recently. T he follow ing d irectors
w ere p re se n t for th e m eeting: M. P lin
Beebe and Lloyd C ronholm of Ipsw ich,
L. M. L arsen of W essington Springs,
Mrs. J. H. D rips of G ann V alley and
R. A. Jo h n so n of K im ball.
T he re g u la r business of th e b ank
w as checked and a call w as m ade a t
P u k aw an a w h ere a v isit w as m ade to
th e exchange office m ain tain ed th e re
and at v ario u s business places.

Bank Pays Depositors
D epositors of th e H udson State
Bank, w hich closed in 1938, are being
paid as speedily as certificates are sent
in, B anking S u p erin ten d en t E rlin g
H augo re p o rts from P ierre. He said
all com m on claim s are being paid 100
p er cent and th e e n tire $172,230.80
w ould be re tu rn e d to th e depositors.
L iquidation of th e H udson Bank,
H augo pointed out, coincides w ith th e
a d m in istra tio n ’s policy of h astily
clearing up th e business of closed
ban k s w ith a m inim um expense to
depositors.

Issuing Agent
T he A m erican N ational B ank and
T ru s t Com pany of Chicago has offered
its services to th e U nited States T reas­
u ry D ep artm en t in m aking available
to th e public th e new D efense Bond
issues, and has been qualified as an
issuing agent.
The b an k has d istrib u ted to its cus­
tom ers a folder “In v estin g for De­
fense,” giving com plete in form ation
concerning th e bonds and explaining
how to p u rch ase th em at th e bank.
The b an k has also offered its facili­
ties to th e g eneral public th ro u g h th e
follow ing ad v ertisem en t in Chicago
new spapers:
“The A m erican N ational B ank and
T ru st C om pany is pleased to cooperate
w ith th e U nited States T re a su ry De­
p a rtm e n t in m aking available to th e
public, effective May 1st, th e th re e new
types of U ntied States Savings Bonds,

NEWS

popu larly know n as Defense Bonds.
These bonds are direct obligations of
th e U nited States G overnm ent and the
proceeds of th e ir sale w ill be used in
financing the national defense p ro ­
gram .
T hrough th e th ree new issues of De­
fense Bonds, th e governm ent offers an
in v estm en t program for th e en tire
public. A bond m ay be purchased for
as little as $18.75, and a m eans is also
p r o v i d e d to accum ulate sm aller
am ounts of m oney for in v estm en t in
Defense Bonds th ro u g h D efense Sav­

W

•

ings Stam ps. Complete inform ation
concerning Defense Bonds and Stam ps
w ill be provided upon req u est and
your orders w ill be executed, w h eth er
you are a custom er of this bank or not,
w ith o u t charge.”
T he em ployes of th e b ank have been
given a bulletin of in stru ctio n s so th ey
m ay be prep ared to answ er questions
concerning Defense Bonds and to di­
rect people properly. M ilton J. Hayes,
a ssistan t cashier, has been designated
as th e officer in charge of Defense
Bond service.

e lc o m e * * » to the

SOUTH

DAKOTA BANKERS
CONVENTION

The First National Bank of the Black Hills extends a sincere
w elcom e to bankers who will attend the South Dakota Bankers
Convention, to be held in Deadwood June 26th and 27th
S ta te m e n t o f C o n d itio n A p ril 4 , 1 9 4 1
R ESO UR C ES
C ash on H a n d , in F e d e r a l R e se r v e B a n k , and D u e from
B a n k s and B a n k ers ..................................................................................$2,497,171.27
U . S. G o v ern m en t O b lig a tio n s .........................
2,090,455.00
S ta te and M u n ic ip a l B o n d s ..........................................................................
886,447.68
O th er B o n d s and S e c u r it ie s ..........................................................................
152,008.00
C o m m ercia l P a p er .............................................................................................
185,000.00
S to ck in F e d e r a l R e se r v e B an k in M in n e a p o lis ..........................................................
O v e rd ra fts .......................................................................................
L o a n s and D is c o u n ts ....................................................................................................................
B a n k in g H o u s e s , F u rn itu re and F ix t u r e s ..............................................................................
I n c lu d e s B a n k in g H o u s e s a t R a p id C it y , L e a d , D ea d -w o o d , B e lle
F o u rc h e , S tu r g is , S p e a r fis h , a n d N e w e l l, a ll c le a r o f e n c u m b ra n c e s.
R ea l E s ta te O w n ed , o th er th an B a n k in g H o u s e s ..........................................................
I n te r e s t E a rn ed b ut n o t C o lle c t e d ...........................................................................................

$ 5,811,081.95
24,750.00
11,177.43
5,179,800.96
147,732.14
7,509.00
80,874.11
$11,262,925.59

TOTAL
L IA B IL IT IE S
C a p ita l S to ck , C om m on .................................................................................$
S u rp lu s ....................................................................................................................
U n d iv id e d P ro fits ...............................................................................................

500,000.00
325,000.00
156,243.24

$ 981,243.24
R eserv ed for I n te r e s t. T a x e s , and O th er E x p e n s e s .....................................................
34,516.32
I n te r e s t C o lle c te d b ut n o t E a r n e d ........................................................................................
26,967.77
D e p o s it s
............................................................................................................................................... 10,220,198.26
$11,262,925.59

First National Bank
OF THE BLACK HILLS
RAPID CITY • LEAD • D E A D W O O D
HOT S P R I N G S

• STURGIS

• BELLE FO UR CH E

• SPEARFISH

♦ NEWELL

Se rv in g the Entire Black Hills Territory
AFFILIATED WITH THE NORTHWEST BANCORPORATION
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

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

June 19bl

Call to Order

★

*

A tte n d in g c o n v e n tio n s o f sta te b a n k e r s’ a sso c ia tio n s is
an obi sto r y to m o st se a so n e d b a n k ers. But tb is y ea r
th e r e ’s n o th in g ste r e o ty p e d o r h a c k n ey e d a b o u t th e
p r o b le m s th at will be m o st d isc u sse d at su c h c o n v e n ­
tio n s. T h e m a g n itu d e o f th e p r o b le m s fa c in g th e n a tio n
to d a y c a lls fo r fr e e and fra n k d isc u ssio n , e a rn est stu d y
a n d th e m ost c o n s tr u c tiv e c o n c e r te d a ctio n that h a n k ­
ers can d e v ise. B a n k ers o f th e N o rth w est h a v e alw ays
sh ow n a d isp o sitio n to w ork to g e th e r in th e ir c o m m o n
in te r e st a n d fo r th e p u b lic w elfa re. C o n d itio n s to d a y
d em an d th e fu llest m e a su r e o f su c h c o o p e r a tio n — and
th e sta te c o n v e n tio n s w h ich cro w d th e c a len d a r in
J u n e are a n a tu ra l sta r tin g p o in t.
I f y o u ’re p la n n in g t o b e in t h e T w in C it ie s to a t t e n d t h e M in n e ­
s o t a B a n k e r s A s s o c ia t io n C o n v e n t io n , J u n e I I to 13 in S a in t P a u l,
y o u ’ll b e a w e lc o m e v is ito r a t t h e F ir s t N a t io n a l o f M in n e a p o lis .

F ir s t N a t io n a l

M in n e a p o l is

Member Federal Deposit Insurance Corporation

M. O. Grangaard

•

C. B. Brombach

V ice P r e s id e n t

•

W. A. Volkmann

V ice P r e s id e n t

*

A s s is ta n t C a s h ie r

Bank Advisory Division, K. T. Martin

j . J. Maloney
A s s i s t a n t C a sh ie r

• J. M. Downes

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

A f f i l i a t e d wi t h
Northwestern Banker

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

June Î9J1

F

i r s t

B

a n k

S

t o c k

C

o r p o r a t i o n

49
olis, statistician of the federal reserve
bank, spoke on financing th e defense
program , and W illiam D uncan, secre­
ta ry of th e M innesota B ankers Asso­
ciation, also w as a speaker.

M IN N E S O T A

Capital Stock Increased

NEWS
K . O. S A T T R E
P r e sid e n t
B lu e E arth

Propose Bank at Campbell
F ifty business m en and farm ers of
Cam pbell and su rro u n d in g com m unity
held a m eeting th e re recen tly to d is­
cuss sta rtin g a b an k at Campbell. L.
A. M cCaffery w as ch airm an and in tro ­
duced A tto rn ey Leo R u th e r of Breckenridge, one of th e speakers. Mr.
H a rris of Cottonw ood w as an o th er
speaker.
A com m ittee com posed of H erm an
J. R eyelts, C harles G ran and Dr. K en­
n e th S evern w as appointed to in v esti­
gate th e situ atio n m ore thoroughly.
The group at th e m eeting all agreed
th a t th e re w as need for a b an k and
w en t on record in favor of one. Cam p­
bell at one tim e had tw o b an k s and
has been w ith o u t th e service of any
for th e p ast ten y ears or so.

New Bank Quarters
P lans are u n d er w ay for th e rem od­
eling of space on th e ground floor of
th e M edical A rts B uilding at D uluth,
to be occupied by th e N o rth w estern
S tate Bank, w hich is now housed in
th e W olvin Building.
F u ll details are not available at th is
tim e, but th e rem odeling is to include
new b an k fixtures and a new entrance.

Minnesota Resources
R esources of th e 644 in su red com ­
m ercial b anks in th e sta te of M inne­
sota to taled $1,128,455,000 on Decem ber
31, 1940', according to a su rv ey m ade
public by th e F ed eral D eposit In s u r­
ance Corporation.
D eposits in th e in su red b an k s w ere
listed as $1,017,558,000. D em and depos­
its of th e latest call date am ounted to
$683,009,000 and tim e deposits totaled
$334,549,000.
Loans and discounts of th e rep o rtin g
banks am ounted to $375,609,000, an in ­
crease of $40,728,000 over th e Decem­
b er 31, 1939, total.
D irect and gu aran teed obligations of
th e U nited States gov ern m en t listed
by th e M innesota banks am ounted to
$239,244,000 on Decem ber 31, 1940.
O ther securities totaled $98,645,000.
Loans and discounts of th e 13,438

W IL L IA M D U N C A N , J r .
S ecreta ry
M inn eap olis

in su red com m ercial banks th ro u g h o u t
th e co u n try totaled $18,397,775,000, an
increase of $1,531,754,000 or m ore than
9 p er cent over the am ount reported
D ecem ber 31, 1939. Deposits increased
from th e $56,076,349,000 reported the
previous year to $63,469,603,000, th e
hig h est figure since in au g u ratio n of
deposit insurance.

Business Is Good
In a recen t v isit w ith him in his
bank, Jo h n Carlancler, p resid en t of the
State B ank of F aribault, stated th a t
business in his locality, and especially
for his bank, w as extrem ely good. De­
posits of th e State B ank now stand at
$420,000 as com pared w ith $360,000 at
th is tim e a year ago. Since last year
Mr. C arlander said his loans had in ­
creased by $60,000, and su rp lu s and
profits of th e bank now are $47,000.
He rep orted m aking FH A loans d u r­
ing th e p ast few m onths.

Rapid Growth
The F irs t N ational B ank of Anoka
has enjoyed rapid grow th since it
sta rtin g business in May, ten years
ago. In May, 1931, resources of the
b ank w ere $75,793. In May this year
this resources figure had increased to
$1,007,475. The F irs t N ational of
Anoka has capital of $50,000, surplus,
reserv e and undivided profits of $41,750, and deposits on May 10th of $915,725.

Bankers Elect Officers
H. W. Schroeder, Long P rairie, w as
elected p resid en t of the C entral M inne­
sota Clearing H ouse A ssociation at the
annual m eeting held at th e St. Cloud
C ountry Club. Mr. Schroeder succeeds
Jo h n B uettner, St. Cloud, re tirin g p res­
ident of th e association.
O ther officers elected w ere John
W elle, Melrose, vice president, and
H en ry Sauer, Paynesville, secretary
and treasu rer. The d inner and m eet­
ing w as attended by approxim ately
120 b ank officials from central M inne­
sota.
A t th e d in n er R. D. Baker, M inneap-

C apital stock of th e U nion N ational
B ank of R ochester w as increased to
$100,000 at a special m eeting of stock­
holders last m onth.
W ith th e increase in common stock,
th e capital stru c tu re is raised to $240,000. The p referred stock and surplus
is approxim ately $140,000. Total re ­
sources are $2,500,000.
B ank officials said the increase was
necessitated by a substan tial increase
in deposits in th e last six years.

Belview Bank Opens
A fter m onths of intensive effort on
th e p a rt of W. C. Dahl of Echo and
business m en of Belview, the Belview
State B ank opened its doors last
m onth. In charge of the new in stitu ­
tion will be W. C. D ahl as cashier, and
Oscar Sjaastad as assistan t cashier.
The opening of the Belview B ank is
th e re su lt of a drive w hich began in
th e la tte r p a rt of 1940.
A ppearing as incorporators of the
b ank w ere: W. C. Dahl, Louis C. Gryting, L. O. K nutson and Sam uel Sam p­
son. D irectors in th e new organiza­
tion are: O. A. Lende, G ranite Falls,
president: E. H. Dahl, vice president;
L. O. K nutson, W. C. Dahl, Gust Jo h n ­
son and N. R. Ryerson.
The new b ank is using the building
form erly occupied by the State B ank
of Belview. It has been com pletely
rem odeled and redecorated.

A . I. B. Meeting
B. F. P erk in s of th e F irst N ational
B ank of W inona w as elected president
of W inona chapter, A m erican In stitu te
of Banking, at an ann u al chapter b an­
quet attended by 125 at th e Oaks night
club in W inona last m onth.
O ther chapter officers elected w ere
W illiam P. T heuer, W inona N ational
& Savings Bank, as vice president, and
H arry Kowalczyk, M erchants Bank,
secretary-treasurer. Elected to the
board of governors for three-year
term s w ere E. Max B unn and Alvin C.
Grullcowski of th e M erchants Bank.
H oldover m em bers of th e board are
Clarence F. W itt and E dw ard L. H artn er of the F irst N ational B ank and
Mrs. V ivian E. A lbert and S. J. Kryzsko of th e W inona N ational & Sav­
ings Bank.
P ren tiss Bailey, form erly w ith the
Chase N ational B ank of New York at
its P aris branch, w as introduced by
E. E. Shepard. Mr. Bailey review ed
Northwestern Banker


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

June 1947

50

•MINNESOTA
his b anking experiences d u rin g the
Nazi invasion and occupation of Paris,
and gave his view points of th e p re s­
en t w ar as “a un iv ersal stru g g le.”
T he outgoing president, Mr. Grulkow ski, presided at th e m eeting, w hich
was atten d ed by about 125. He in tro ­
duced th e guests, w ho included Mr.
and Mrs. Roy O verm ann of St. Paul.
Mr. O verm ann is first vice p resid en t of
th e St. P aul ch ap ter and is associated
w ith th e F irs t T ru st Company. The
M inneapolis ch ap ter w as n o t officially
rep resen ted due to conflicting dates on
ch ap ter activities.
The an n u al re p o rt of th e educational
com m ittee w as p resen ted by Mr.
T h e u re r w ho announced th e aw ard of
educational certificates d u rin g th e p ast
year. P re-stan d ard certificates w ere is­
sued by th e national office to Mrs.
A lbert and to C yril L. K ram er of th e
A ltu ra State B ank and a grad u ate cer­
tificate w as aw arded to Joseph H.
K nopp of th e M erchants Bank.

40th Anniversary
Celebrated
The N o rth ern N ational B ank of Bem idji celebrated its 40th an n iv ersary
last m onth. S tartin g in 1901 as th e

NEWS*

“L u m b erm an ’s B ank,” w ith W. L.
Brooks, form erly of th e F irs t N ational
B ank of M inneapolis, as cashier and
backed by th e “B aum bach’s,” prom i­
n e n t W adena bankers, th e in stitu tio n
occupied a building on th e south side
of T hird S treet across from its presen t
location. A t th a t tim e it w as a p riv ate
in stitution, changing later into a state
b an k and th e n into a n ational bank.

Canby Bank Remodels
R em odeling of th e N ational Citizens
B ank of Canby got u n d er w ay last
m onth. F ix tu re s in th e B ank of Canby
are being used in connection w ith the
enlarging and m odernizing of th e N a­
tional Citizens Bank.
The b ank w as to be open for busi­
ness w hile th e rem odeling is tak in g
place.

New President Elected
A t th e recen t reg u lar m eeting of the
d irectors of th e F irs t S tate B ank of
Paynesville, G. O. Voss w as elected
p resident of th e bank, to succeed th e
late N. H. Dreis. Mr. Voss w as form ­
erly vice president. H en ry J. Sauer,
form erly b an k cashier, w as selected as
vice presid en t and cashier, and L. P.

P eterson, assistan t cashier, w as ap ­
pointed as a m em ber of the board of
directors.
The new ly elected president, Mr.
Voss, is an old tim e resid en t of P ay n es­
ville and becam e associated w ith th e
F irst State B ank as a d irector in 1936.

Prominent Man Dies
Charles P atterso n of St. Paul, p resi­
dent of th e A m erican D evelopm ent
Com pany of th a t city, and form er
b an k er there, died recen tly at St.
Jo sep h ’s H ospital.
Mr. P atterso n w as a presid en t of
th e form er N ational E xchange B ank
and w as head of the form er P atterso n
S treet L ighting Company, reorganized
later into the A m erican D evelopm ent
Company. He also organized th e
O’Donnell Shoe Company, w ith the
late W illiam O’Donnell.

Bank Modernized
The P ine R iver S tate B ank of Pine
R iver has m odernized its interior. The
old cage w o rk w hich reached alm ost
to the ceiling has been rem oved and a
new m odernistic chrom ium railing
takes its place. F u rth e r changes are

W ELCO M E T O S A IN T P A U L
P la n n o w to a tte n d th e
M IN N E S O T A B A N K E R S C O N V E N T IO N
J u n e 1 1 , 12 a n d 13

As one of your hosts, the Empire National Bank and Trust
Company is delighted to welcome you, and we hope you will
visit our bank while in the city.

1

!

You will find here complete facilities for the handling
of your business.
W e w ould a p p re c ia te th e o p p o rtu n ity of serving you.

Empire National Bank and Trust Company
St. P a u l, M innesota
Alex. H ig h lan d , P resid en t
Member Federal Deposit Insurance Corporation
Affiliated with Northwest Bancorporation

Northwestern Banker

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

June 19J1

t l U ST

a s it s sk y scra p ers r e st o n

s o lid

p a s s e d , t h e B a n k g r e w w it h t h e c o m m u n i ­

M in n e s o t a lim e s t o n e , so S a in t P a u l i t s e l f

t y , w e a v in g i t s s e r v ic e s in t o t h e w a r p a n d

is r o o t e d d e e p in t h e r u g g e d p io n e e r p a s t

w oof of

o f M in n e s o t a .

f u n d a m e n t a l r o le , s c o r e s o f e a r ly N o r t h ­

p ie r c e d

th e

L o n g b e fo r e t h e r a ilr o a d s

f o r e s t,

S a in t

P a u l ’s le v e e s

e c h o e d t o t h e c l a t t e r o f w in c h e s o n s t e a m ­
b o a ts

b r in g in g

g ood s,

s e ttle r s ,

and

c iv iliz a t io n t o t h e b u r g e o n in g N o r t h w e s t .

S a in t

P a u l.

w est bank ers ch o se
t h e ir

R e c o g n iz in g

th is

in s titu tio n

S a in t P a u l c o r r e s p o n d e n t .

th is

as

T oday

T h e F ir s t N a t i o n a l B a n k o f S a in t P a u l
c a r r ie s o n i t s le d g e r s t h e a c c o u n t s o f 84

A s e a r ly a s 1853, t h e l i t t l e “ b a n k in g h o u s e ”

N i n t h D is t r ic t b a n k s a s o ld o r o ld e r t h a n

w h ic h la t e r g r e w u p in t o T h e F ir s t N a ­

t h e M in n e s o t a B a n k e r s A s s o c ia t io n . . .

t io n a l B a n k o f S a in t P a u l h a d a p la c e in

w h ic h

t h is

A n n u a l M e e t in g i n S a in t P a u l.

in d u s t r io u s

p ic t u r e .

As th e

years

t h i s y e a r h o ld s i t s

F if t y - S e c o n d

T h e F ir s t N a tio n a l B a n k w e lc o m e s t h e M in n e s o ta
B a n k e r s A s s o c ia tio n . O u r o ffic e rs a r e lo o k in g
f o r w a r d to m a n y f r i e n d l y v i s i ts w i t h N in th
D i s t r i c t B a n k e r s d u r in g t h e c o n v e n tio n . W h e th e r
y o u u s e u s a s c o r r e s p o n d e n t o r n o t w e c o r d ia lly
u r g e y o u to s t o p in a n d s e e u s w h e n y o u a r e a t
th e c o n v e n tio n .

T he F irst N ational

B ank of Saint Paul

A F F IL IA T E D

M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

W IT H F IR S T B A N K S T O C K C O R P O R A T IO N

DEPARTM ENT

OF BANKS AND BANKERS

Alden B. Lathrop - - - - - - Rodney F. Sturley - - - - - - Lee A. Sauer - - - - - - - Elmer M. Volkenant - - - - - Wallace L. Boss - - - - - - -


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

- Vice P residen t
A ssista n t Cashier
A ssista n t Cashier
A ssista n t Cashier
A ssista n t Cashier

52

•MINN ESOTA
also anticipated. The w ork w as done
by George D urkee.

Cambria Banker Dies
Jo h n F. Jones, a directo r of th e
C am bria S tate Bank, and a Cam bria
tow nship farm er, died recen tly at his
home. A son of Blue E a rth county
pioneers, Mr. and Mrs. E llis Jones, he
had lived in th a t county for 70 years.

"Open House" Staged
T he S tate B an k of W a rre n recen tly
staged an “Open H ouse” in its new ly

NEWS

rem odeled and enlarged b anking q u a r­
ters. F avors w ere given to those who
attended, and en terta in m e n t w as pro­
vided, including a full length feature
m otion picture.
G.
J. Johnson of St. Paul, president
of th e W arren bank, w as on h and for
th e occasion.
A new low type foyer of H otw ill
and Morocco m arble w ith four w ickets
w ith deal plates of Belgian black m a r­
ble has been erected. T his w ill p ro ­
vide m ore convenience in w aiting on
custom ers. T he floors are of asphalt
tile in v arigated colors of red and black

To the Northwest Bankers:

GOOD WISHES

•

>

w ith green borders. The w alls are of
pale green w ith th e w oodw ork in d ark
green. T he ceiling is of com position
in n a tu ra l light color. L ight fixtures
are of m odern type. P riv ate q u arters
for persons holding safety deposit
boxes are also available w hile confer­
ence q u a rte rs and office space has also
been m ade available. The enlarged
lobby provides needed space for cus­
tom ers.
Officers of th e b an k include Mr.
Johnson as president; R. B. T aralseth,
vice president; W. R. H olbrook, vice
president; R. J. Schirber, cashier; D.
H. A ustinson, teller, and Miss M ar­
garet Goulet, teller.

Accepts Position
Carl J. M euhring, form er assistan t
cashier of th e W rig h t County State
B ank of Monticello, has accepted a
position as cashier of th e F a rm e rs and
M erchants State B ank of New Ulm.

and

GOOD NEWS!
If y o u r u n u su a l p ro b le m s are in su ran ce p ro b ­
lem s— th e y can be p ro m p tly solved by co n su lt­
ing th e . . .

In su ran ce C ounsel to Banks
offered b y th e

uSt. Paul” Group
w ritin g
B a n k e r ’s B la n k e t B o n d s
One policy covering Infid elity of E m ployees,
R ob b ery , H old-up, B urglary, M essenger and
o th er im p o rta n t coverages

F orgery
S a fe D e p o sit (A ll R isk )
R e g is te r e d M ail
A ll O th e r L in e s

St. Paul Fire & M arine Insu ran ce Co.
M ercury In su ran ce Co.
St. Paul-M ereury In d em n ity Co.
S a in t P a u l, M in n e so ta
G. R. Moeller

Northwestern Banker

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

Executive State Agent

June Í9J1

New Officers
Increased business activ ity in th e
In te rn a tio n a l F alls area w as reflected
recen tly in a prom otion and addition
to th e staff of th e F irs t N ational Bank.
Officers of th e in stitu tio n announced
th a t C. M. P re tty m a n has been p ro ­
m oted from cashier to vice president
and th a t th e post of cashier w ill be
filled by Lloyd V. H anson, an experi­
enced banker.
In his capacity as vice president,
Mr. P retty m an w ill devote th e g reater
p a rt of his tim e to m anaging the
b a n k ’s in su ran ce departm ent, He w ill
continue as a director of th e bank.
Mr. P re tty m a n has served as cashier
since 1922.
Mr. H anson, th e new cashier, has
been engaged in th e b anking business
for some 20 years, w ith extensive ex­
perience in M ontana and M oorhead,
M innesota. H e is now in terested in
th e F irs t S tate B ank of F ertile w ith
his b rother, E. B. H anson, w ho is
presid en t of th a t in stitu tio n and tre a s­
u re r of th e M innesota B ankers Asso­
ciation.
O ther officers and em ployes of the
b an k w ill continue in th e ir presen t
positions.

*

A

Minneapolis Banker Dead
David S. Baird, 88, died recently at
his hom e in M inneapolis.
Mr. B aird w as w ell-know n in M inne­
apolis business circles, and at th e tim e
of his death w as a director of th e M ar­
q u ette N ational Bank.

>

53

A Logical C orrespondent
The payment of $106,000,000.00 to 278,000
patrons of this market in 1940 represents a sub­
stantial percentage of income to farmers and
stockmen, and emphasizes the importance of this
market to Northwest agriculture.
If livestock is a factor in your bank's business
an account with us will be profitable to you.
Our complete facilities assure prompt and effi­
cient handling of your transactions in this territory.

Stock Yards National Bank
S outh St. Paul, M innesota
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

Northwestern Banker

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

June 19^1

54

• MINNESOTA
Brief Minnesota
News Items
W illiam M organ of th e F irs t N a­
tional B ank of H opkins has recen tly
been called to active d u ty in th e U nited
States Arm y.
The S ecurity S tate B ank of H opkins
rep o rts several changes in its p e r­
sonnel.
E a rl K ucera, fo rm er teller of th e
bank, has been called to th e A rm y,
and is stationed at Camp Claiborne,
Louisiana. Also, H. M. A nderson and
V irgil D vorak have gone to Los A n­
geles, C alifornia, to accept positions
w ith th e B ank of A m erica there.
E. W. Oredson, fo rm er Chief Clerk

NEWS

of th e M innehaha N ational B ank of
M inneapolis, has been elected to th e
position of A ssistant Cashier of th a t
in stitution. Mr. Oredson has been in
th e em ploy of th e M innehaha N a­
tional B ank for th e p ast 15 years.
H. W. Schroeder, Cashier of th e Peo­
ples N ational B ank of Long Prairie,
announces th a t his b ank w ill be en­
larged and rem odeled th is sum m er.
Two new cages are to be installed,
th e bookkeeping d ep artm en t is to be
m oved to a new room at the back of
th e bank, and th e counters are to be
pulled back th ree feet in order to give
additional room for traffic in the lobby.
F re d H. H atz, A ssistant C ashier of
th e F irs t N ational B ank of Glencoe,

patite, 3Uebber

Sc

(£u.

E s ta b lis h e d 1880
M e m b er s N e w Y ork S to ck E x c h a n g e
and oth er p r in c ip a l e x c h a n g e s

RAND TO W ER
M IN N E A PO L IS

EX C H A N G E B U IL D IN G
DULUTH

P IO N E E R BU IL D IN G
ST. PA UL

Stock quotations are broadcast during summer months as follows:
W DGY
1130 k y c .

W CCO
830 k y c.

M ONDAY through FR ID A Y
8:40 A. M. and 1:15 P. M.
SATUR D A Y
8:40 A. M.

SATUR D A Y
11:15 A. M.
Weekly Market Review
and Closing Quotations

M unicipal
Bonds

•
has recently been called by Uncle Sam
to Camp Claiborne, Louisiana.
The F arm ers & M erchants State
B ank of L am berton w ill have a new
hom e com pleted late th is sum m er, as
th ey are now sta rtin g w ork on a new
all-brick, m odern building.
The size of th e building w ill be 25
feet by 85 feet, and all equipm ent, in ­
side and out, w ill be com pletely up-todate.
L. S. Olson, Vice P resid en t and
C ashier of the F irst N ational B ank of
Cloquet, is enjoying an extensive
m otor trip in the E a st and South.
Mr. Olson’s son, L ieu ten an t Clarke
Olson, has been called to A rm y duty
at F o rt Belvoir near W ashington, D.
C., and Mr. Olson is driving him to
camp.
A nother son, Cort Olson, w ho w as
form erly A ssistant C ashier of th e
F reeb o rn C ounty N ational B ank of Al­
b e rt Lea, is now stationed at P ensa­
cola, Florida, w ith the A ir Corps, and
Mr. Olson plans to v isit him w hile on
his trip.

Burgess Heads
Aquatennial Publicity
So large and varied is th e com ing
M inneapolis A quatennial, Ju ly 12th to
20th, th a t a special com m ittee of 100
leading business m en has been nam ed
to issue th e thousands of in v itations
w hich th e gigantic sum m er festival

LEGAL IN V EST M E N T
For
IN SU R A N C E CO M PANIES
Accounts Insured up to $5,000
C on ven ien t . . . S afe

C. S. A slim u n
C om pany
Investment Securities
1212 F irst N ational-Soo L ine B uilding
M IN N E A PO L IS , M IN N E SO T A
B ell System T eletype MPLST11
B rid g ep o rt 1175

Northwestern Banker

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

June 19^1

2>%
(C u rre n t R ate)

St. Paul Federal
Savings & Loan Association
A xel A. O lson, Sec’y-Mgr.
4 E ast F o u rth St., ST. PA U L , M IN N .

J o h n B u rg ess, v ic e p re s id e n t N o rth ­
w e s te rn N a tio n a l B a n k & T ru s t Com ­
p a n y , M in n e ap o lis, p lac es sig n a tu re
on n a tio n -w id e in v ita tio n .

is extending A m erica at large to atten d
its m am m oth 200-event program .
W ielder of th e huge pen in mock
cerem ony above is Jo h n Burgess, vice
presid en t of th e N orth w estern Na-

00

-• M I N N E S O T A N E W S *
tio n al B ank & T ru st Company, and
ch airm an of th e g eneral publicity com ­
m ittee, w ho is signing an equally large
official in v itatio n to th e b an k ers of
A m erica, to atten d th e A quatennial.
The girls assistin g him are garbed in
festival attire, for use in p arades and
o th er gala events.
A huge nine-day audience of m ore
th a n 2,500,000 persons is expected to
a tte n d th e scores of events scheduled.
Am ong th e leading featu res are a
gru ellin g 450-mile P au l B unyan canoe
derby, th re e m o n ster parades, th e n a ­
tional row ing reg atta, a gigantic rodeo
in circu it w ith Cheyenne, W yom ing,
F ro n tie r Days and th e Pendleton, Ore­
gon, R oundup, and a gorgeous illum i­
nated w a te r pagean t on L ake Calhoun.
A series of sp ectacular stage show s
in th e auditorium , a statew ide Queen
of th e L akes contest, stirrin g band
and d ru m m ajo rette com petitions, a
b rillia n t A qua Follies Show, th rillin g
horse races, and a full pro g ram of
sum m er sp o rts ro u n d out th e carnival.
In tw o sh o rt years, th e A quatennial
has becom e know n as A m erica’s big­
gest outdoor su m m er festival.

Bright Job Horizon
E m ploym ent prospects for 1941 g rad ­
uates from A m erican colleges and u n i­
v ersities are th e b rig h test since 1928,
b u t selective service is slowing the
h irin g of m ale graduates w ho are eligi­
ble for m ilitary training. W om en’s job
chances, how ever, have been im proved
by the national p reparedness program ,
according to prelim in ary resu lts of a
national survey m ade public by E. E.
Crabb, p resident of Investors Syndi­
cate.
N inety-three per cent of 135 in stitu ­
tions of h igher learning in th e survey
rep o rted th a t 50 p er cent or m ore of
th e ir 1941 graduates w ould have jobs
before the end of th is sum m er. These
an sw ers included positions in defense
ind ustries, b u t did not include m ilitary
service w hich m ay in terfere w ith jobs
obtained by or prom ised to m ale g rad ­
uates in eith er defense or non-defense
fields.
Job prospects th e sam e as or g reater
th a n those of June, 1940, w ere p re ­
dicted by 97.5 p er cent of th e schools
an sw ering th e nation-w ide survey.
A th ird of th e schools said con­

scription clouded job prospects of m ale
college graduates this June, b u t an
eighth of th e in stitu tio n s asserted the
d raft had increased prospective posi­
tions in non-m ilitary fields. F o u rteen
view ed national defense tra in in g as
only slightly affecting prospective em ­
ploym ent, and ten asserted it had not
affected job recru itin g on th e ir cam ­
puses. F o rty schools did not answ er
this question.
N inety-seven per cent of th e coedu­
cational and m en ’s colleges predicted
th a t half or m ore of th eir graduates
w ould be attach ed to a reg u lar payroll
w ithin n in ety days of graduation.
Wife: “Jo h n —I ’m sure I h eard a
m ouse squeak.”
Jo h n (half asleep): “Well, I sup­
pose I ’ll have to get up and oil it.”
F arm er: “Yes, w e’ve got all the new
fangled m achinery th ere is. Our la t­
est buy w as tw o jnilking m achines.”
City Miss: “How interesting! But
tell me, do th ey really give as good
m ilk as th e cows?”

P A R T O F T H E MAIN B A N K IN G FLO O R A T T H E M ID LAN D B A N K

THE MIDLAND IS THE BANK
FOR EFFICIENT CORRESPONDENT
SERVICE IN MINNEAPOLIS

N a tio n a l B a n k & T r u s t Co.
S E C O N D A V E N U E S . A T F O U R T H ST.
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 orp.

Northwestern Banker

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

June Í9J1

56

T w in C ity N e w s

L

EROY V. ROSE has been nam ed

m an ag er of th e real estate an d
m ortgage d e p a rtm e n t of Colum bia
H eights S tate B ank, it w as announced
by H erbert S. W oodward, cashier.
Rose has been connected w ith Tw in
City financial in stitu tio n s for 25 years.
H enry S. K ingm an, p resid en t of
F arm e rs and M echanics Savings Bank,
M inneapolis, has been nam ed M inne­
sota ch airm an for m u tu al savings

By Jam es M. Sutherland
Special Correspondent

b an k s in th e g o v ern m en t’s cam paign
to encourage sale of defense savings
bonds.
Charles P atterson, one-time p resi­
den t of th e N ational E xchange B ank
in St. Paul, died recently at the age

MUNICIPAL AND

Greetings

CORPORATION BONDS

to
Jftltnnegota jankers

FOR
BANK INVESTMENT

May your 1941 Annual Convention,
June 11-13 in St. Paul, be highly
successful and enjoyable

•

Bankers D eserve the Best

KALMAN

a n d w h e n y o u r w a rd ro b e n e e d s
re p le n ish in g w e invite y o u to
co m e in a n d se e us.
“We cater to the well dressed man”

&

COMPANY
In v estm en t S e cu rities
M IN N E A P O L IS
M cK n igh t B ld g.
A tla n tic 5313

Northwestern Banker

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

ST . P A U L
E n d ic o tt B ld g.
G arfield 3305

June 19 M

Malmstedts
111 S ou th 7 tK S tr e e t
MINNEAPOLIS

of 67. He served as p resident of th e
bank from 1922 to 1924. H e w as also
active in num erous o ther business and
civic organizations d uring his 43 y e a rs’
residence in St. Paul.
N om inating com m ittee of the M inne­
sota B ankers A ssociation has p u t up
th e following slate of officers for the
an n u al m eeting in St. P aul in June:
O. G. Jones, Red W ing, now vice p resi­
dent, for president; E. O. Olson, cash­
ier, M idland N ational B ank & T ru st
Co., M inneapolis, for vice president,
and Jam es H. H ogan, K errick, for
treasu rer.
E lm er V olkenant, a ssistan t cashier
of F irs t N ational Bank, St. Paul, w as
honor guest a t the an n u al b an q u et of
St. P aul chapter, A m erican In stitu te
of B anking, May 20. V olkenant’s term
on th e national executive board of the
AIB expires th is m onth. W . J. Came­
ron of th e F o rd M otor Com pany w as
principal speaker, w hile Jam es Day,
presid en t of the St. P aul chapter, p re ­
sided.
Tw in City B ank A uditors and Comp­
tro llers A ssociation had as delegates
to th e an n u al convention of th e n a ­
tional association in C leveland M ay 15
to 17: A. W . M ills, auditor, M inneapo­
lis F ederal R eserve Bank; C. G. G ustaf­
son, F irst N ational B ank & T ru st Co.,
M inneapolis; J. R. Sm ith, com ptroller,
N o rth w estern N ational B ank & T ru st
Co., S. J. Sm ith, F irs t N ational Bank,
St. Paul; and S. G. Sinclair, president
of th e Tw in City organization th e p ast
year.
Tw in City Bond Club is scheduled
to have its tw en tieth an n u al outing
Ju n e 12 a t W hite B ear Y acht Club.
F rank McGuire is chairm an of the
com m ittee in charge. O ther m em bers
are L o w ell D riscoll, M erritt M cDonald,

57

• MINNESOTA

NEWS

Jam es A rm s, R udy Juran and M ahlon
B undy.

secretary-treasurer. On th e board of
governors are V ictor Clausen, K lem er
Jen sen, G w yneth N ich olson and Ger­

C. T. Jaft'ray, p resid en t of F irs t B ank
Stock C orporation, has been m ade
ch airm an of th e finance com m ittee of
N o rth w estern F ire and M arine In s u r­
ance C om pany of M inneapolis.

ald H ow e.

Dr. P aul F . Cadman, econom ist for
A m erican B an k ers A ssociation, w as
principal sp eaker a t th e forty -th ird
an n u al b an q u et of the M inneapolis
chapter, A m erican In stitu te of B ank­
ing.
N ew officers, p reviously a n ­
nounced, w ere installed. H arry L. T y­
son of N o rth w estern N ational B ank &
T ru st Co., w as in charge of a rra n g e ­
m ents. F . F. D urand, m an ag er of the
cred it d ep artm en t of F irs t Service Cor­
po ratio n and re tirin g president, p re ­
sided. R obert C. R utherford, execu­
tive secretary , delivered th e educa­
tional report.

•

Stuart W. W ells, p resid en t of WellsDickey Co., M inneapolis, and R ichard
C. L illy, presid en t of F irs t N ational
B ank, St. Paul, have been nam ed m em ­
b ers of a b ankers com m ittee of 14 to
assist in raising funds for th e Royal
A ir Force B enevolent F u n d of the
U nited States, Inc. M oney goes to
relieve distress am ong m em bers of the
R A F and th e ir families.

The in v estm en t d ep artm en t of F irst
N ational B ank & T rust Com pany has
been m oved from its q u arters a t 115
South F ifth street, w hich it occupied
for 31 years, into new, rem odeled
q u arters on the east side of th e F irst
National-Soo Line building’s ground
floor lobby.
Q uarters vacated w ill be rem odeled
for th e personal tru s t division of the
bank. The corporate tru s t division
w ill take over th e space occupied by
the personal tru s t division, releasing
for th e use of Title Insu ran ce Com-

Britain’s Man of
the Hour Says—

Otto Brem er, ch airm an of A m erican
N ational B ank, St. Paul, is back a t his
desk a fte r a th re e and one-half m o n th s
vacation in th e west.

" 9 {
M

y

'W

9
a y

cM ad
.

.

John E. T enge, associated w ith F irs t

Service C orporation a t M inneapolis
since 1930, has been nam ed a ssista n t
vice p resid en t of F irs t N ational B ank
& T ru s t Com pany, H elena, M ontana,
an affiliate of F irs t B ank Stock Cor­
poration.
R onald R ansom , W ashington, vice
ch airm an of th e F ed eral R eserve
Board, m et w ith directo rs of th e M in­
neapolis F ed eral R eserve B ank a t
th e ir May m eeting.

N ine T w in City m en atten d ed th e
m eeting of th e A ssociation of R eserve
City B ankers a t H ershey, P e n n sy l­
vania.
T hey are: W. N. Johnson, vice p resi­
dent, N o rth w e ste rn N ational B ank &
T ru s t Co., L ym an E. W akefield, p resi­
dent, and V. F. R otering, vice p resi­
den ts of F irs t N ational B ank & T ru st
Co.; E dgar L. M attson, president, and
A rnulf U eland, vice president, Mid­
land N ational B ank & T ru st Co., all of
M inneapolis; P hilip I . Ray, president,
F irs t T ru s t Co., St. Paul, and Julian
B. Baird and A. B. Lathrop, vice p resi­
dents, F irs t N ational B ank of St. Paul.

. . . . I would write the word 'IN­
SURANCE' over the door of every
cottage and upon the blotting book
of every public man, because I am
convinced that for sacrifices which
are inconceivably small, families can
be secured against catastrophes
which would otherwise smash them
forever."
CHURCHILL

Protection of e a r n in g s a n d in co m e is prim ary in su r a n c e a n d
w ithou t it p a y m e n t of p rem iu m s for a n y other ty p e of in su r a n c e
m a y b e jeo p a rd ized .
S p e c ia l p o lic ie s for b a n k er s w ith $25.00 or $50.00 a w e e k for
illn e s s or injuries, p a y a b le up to tw o y e a r s, w ith $5,000 prin­
c ip a l su m .
M em b ersh ip fe e of o n ly $2.00 p er unit p a y s for in su r a n c e in
full to the m id d le of S ep tem b er 1941.

S e n d for application and literature.

j

John F. H u n zik er has been nam ed
presid en t of th e F irs t N ational B ank
G roup Club, m ade up of em ployes of
F irs t N ational B ank & T ru st Co., M in­
neapolis, and its b ran ch offices.
O ther officers are Thom as K elley,
vice president, and W alter B enson,

MINNESOTA COMMERCIAL
MEN’S ASSOCIATION
2550 P illsb u ry A v e .

M in n ea p o lis, M inn.

Northwestern Banker

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

June 19^1

58

• MINNESOTA

NEWS *

president; R ay Overm an, first vice
president; V eronica H ealy, second vice
president; A lv in a Jansen, th ird vice
president; W illiam W olf, secretary;
Joseph
R echtiene, tre a su re r,
and

pany of M innesota the q u a rte rs it now
occupies.
New officers of th e St. P aul ch ap ter
of th e A. I. B. are: A lbert J. T rossen,

RESIDENCE BURGL ARY
INSURANCE
IN S U R E S

J E W E L R T , silverw are and furs.

to your home including van­
dalism or malicious mischief, caused by burglars,
except fire.

ALL DAM AGES

ALL PR O PER TY
stolen from safe deposit
b oxes, or public w areh ou ses.
P A Y S F O R articles stolen from porches, storerooms, b asem en ts, laundries, ga ra g es,
sta b les and yard s up to $100.00.

protection for your guests and servants.
Coverage at new location, when moving.

Provides 10-day Automatic

PRIVATE R ESIDENCES AND TWO-FAIVIILY HOUSES
(Rate per $ 1 ,0 0 0 of Coverage)
Territory
4

Divided
Coverage
$ 8 .5 0

4

$ 1 0 .5 0

Special $ 5 0 0
Blanket Policy
$ 7 .5 0

$ 1 0 0 Limit
100 %
Blanket
Blanket
$ 8 .5 0
$ 1 2 .7 5
APARTM ENTS AND FLATS
$ 1 5 .7 5

$ 1 0 .5 0

|

$ 7 .5 0

D IV ID ED COVERAGE— Section (a) covers jewelry, watches, necklaces, bracelets, gems, precious and semi­
precious stones, articles of gold, platinum, sterling silver and furs. Section (b) covers household goods,
personal property, plumbing, heating, refrigerating, electric, gas and water fixtures and equipment, also
$ 1 0 0 on stamp and coin collections and $ 6 0 on money and securities.
PU LL BLA NK ET— Combines Section (a) and (b) of the Divided Form.
LIMITED BLA N K ET— Combines Sections (a) and and (b) of the Divided Form, but not more than $ 1 0 0
of insurance per article is applicable to Section (a) property.
OPTIONAL COVERAGE— Theft outside premises— in temporary residences (hotels, etc.) public convey­
ances, purse-snatching, pocket-picking, hold-up, etc.
RATES
Terri$ 1 ,0 0 0
$500
Policy
Policy
tory
$ 3 .4 0
4
$ 2 .0 0
All Policies written for three years at two and one-half times the annual premium if paid in advance or two
and one-half times the annual premium plus 5 % if paid in installments of 50 % , 3 0 % and 2 0 % for the first,
second and third years respectively.

N e w h o u se P a p e r C o.
“Better Printing Papers 99
T his co m p an y extends greetings to b an k ers of
th e

N o rth w est w ho

are h o ld in g th e ir

A ssociation C onventions th is m o n th .

State

W e are

h a p p y to serve you an d y o u r clients th ro u g h o u t
th is te rrito ry w here we o p e ra te and m a in ta in
p a p e r w arehouses in these cities:

M in n e a p o lis , St. P a u l, D u b u q u e , M o lin e a n d D es M o in e s

Northwestern Banker

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

June 19J1

The St. P aul office of The M ilw aukee
Company, inv estm en t firm, is not di­
rectly affected by th e recen t m erger
of th a t concern w ith E dgar, R icker &
Company, according to H erbert K.
Moss, m anager. T he concern continues
u n d er th e nam e of The M ilwaukee
Company.

Second Vice President

C L O T H I N G , personal effects, household goods,
furnishings, fixtures and ap p lian ces.

IN C L U D E S

H enry A yd and M. E. W eim er, m em ­
bers of th e board of governors.

T hom as P. Jerm an , w ho form erly
rep resen ted th e G u aranty T ru st Com­
pany of New Y ork in th e m iddle w est,
w ith h ead q u arters in Chicago, has
been appointed a second vice p resi­
dent of th a t com pany, according to an
announcem ent m ade recently.
Mr.
Jerm an , w ho is now located a t th e
com pany’s m ain office in New York,
w ill continue to be identified w ith
th e b a n k ’s business in th e m iddle w est
district, w here he has a w ide acq u ain ­
tance in business and financial circles.
Mr. Jerm an w as bo rn in Raleigh,
N orth Carolina, and after grad u atio n
from th e U n iversity of N orth Caro­
lina gained his early b an king experi­
ence w ith th e Com m ercial N ational
B ank of Raleigh and w ith th e N ational
B ank of Commerce in New York.
W hen th e la tte r bank w as m erged
w ith th e G u aranty T ru st Com pany of
New York in 1929, he continued w ith
th e com bined in stitu tio n , w ith w hich
he has since served in th e w ork of th e
banking departm ent.

Drive Chairman
A ppointm ent of Jo h n W. H anes,
form er under-S ecretary of th e T reas­
u ry and m em ber of th e Securities and
E xchange Commission, as chairm an
of th e N ational C orporation Com m it­
tee, w as announced by the U nited
Service O rganizations.
U. S. O. rep resen ts th e co-ordinated
effort of th e Young M en’s C hristian
A ssociations, th e N ational Catholic
C om m unity Service, th e Young W om ­
en ’s C hristian A ssociation, th e Salva­
tion A rm y, the Jew ish W elfare B oard
and the N ational T ravelers Aid Asso­
ciation, to provide program s of e n te r­
tain m en t, social activities and guid­
ance for the m en and w om en engaged
in national defense.
A drive for $10,765,000 to conduct
U. S. O. service clubs w herev er th ere
are arm y or navy cam ps or defense in ­
du stries began Ju n e 3d.

“ Say, haven’t you been engaged to
me before somewhere?”
“Well, er, er, you certainly seem to
have a familiar ring.”

j

r

59
Loans and discounts of th e 13,438
in su red com m ercial banks th ro u g h o u t
the co u n try totaled $18,397,775,000, an
increase of $1,531,754,000 or m ore th an
9 per cent over th e am ount reported
D ecem ber 31, 1939. Deposits increased
from th e $56,076,349,000 rep orted th e
previous year to $63,469,603,000, the
highest figure since inau g u ratio n of
deposit insurance.

NORTH
M A R T IN A A S
P r e s id e n t
N ew R ock ford

DAKOTA
NEWS

Accepts New Post
F ra n k G. Suttle, vice p resid en t of
th e F irs t N ational B ank of A berdeen,
South Dakota, and actively identified
w ith its affairs for m ore th a n a q u a r­
te r of a centu ry , last m onth announced
his resignation, to tak e effect Ju ly 1st.
Mr. S uttle w ill tak e up residence
in E llendale, w h ere he will be vice
p resid en t of th e F irs t N ational Bank.
Mr. S uttle is a n ativ e son of E lle n ­
dale, hav in g been born th e re and fo r­
m erly engaged in business in th a t
city.
Mr. S uttle w ill re ta in his position
w ith th e A berdeen b an k as a director,
as w ell as d irecto r and th e vice p resi­
d en t of th e F irs t N ational B ank of
Hecla, w ith w hich he has been affili­
ated for m any years.

Bank Liquidation Completed
The F irs t S tate B ank of B urlington,
w hich som etim e ago discontinued
business vo lu n tarily , has com pleted
liq uidation of its deposit liability, of­
ficers of th e b an k said recently.
A bout a y ear ago th e b an k ceased
receiving an y new deposits, and since
th e n th e v o lu n ta ry liquidation has
been in process of com pletion. The
doors w ere closed last October.
H arv ey J. Johnson, B urlington,
president, C. A. Bugge, B urlington,
vice presid en t, and H. A. K luver, Mi­
not, cashier, w ere officers of th e bank.
It w as organized in 1909. A fter th e
tim e of th e b an k holiday th e in sti­
tu tio n operated u n d e r restrictio n s.

Prominent Man Dies
M. L. A yers of D ickinson, v e te ra n
new sp ap er m an, b a n k e r and in su ran ce
agent, died last m o n th a t his home.
Mr. A yers w as th e founder of th e
D ickinson Press and Recorder-Post.
He w as also a foun d er of th e form er
M erchants N ational B ank of D ickin­
son and w as founder of th e D ickin­
son B uilding and L oan Association,
of w hich he w as vice p resid en t a t the
tim e of his death.

Retired Banker Dead

P. H. Kelly, 75, re tire d Brocket
banker, died recen tly in a hospital
at Devils Lake of h e a rt disease. Kelly
w as a form er state rep resen tativ e
from R am sey county and a pioneer
New Bank Head
G.
J. Johnson, vice president of the resid en t of Brocket.
A m erican N ational B ank of St. Paul,
an Otto B rem er in stitution, w as re ­ Quarter of a Billion
More th a n a q u a rte r of a billion dol­
cently nam ed to head th e F arm ers
S tate B ank of Lisbon as president. lars w as lent by th e savings, building
Johnson w ill hold th e office b u t will and loan associations th ro u g h o u t th e
not be in Lisbon nor take active co untry du rin g the first q u a rte r this
year, according to th e U nited States
charge.
Savings and Loan League. M orton
W. R. Sandager, able cashier of the
bank, will be in charge of th e in sti­ Bodfish, Chicago, executive vice p resi­
tu tio n as active executive. Lewis E. dent of th e League, said th a t th e $267,L ilyquist, son of th e late W. A. Lily- 932,000 lent from Ja n u a ry th ro u g h
quist, has been added to th e staff in M arch w as $40,000,000 m ore th a n d u r­
capacity of a ssistan t cashier. L ily­ ing th e sam e period th e y ear before
q u ist relinquished a position w ith a and co n stituted a record for any like
period since th e figures began to be
Chicago u n d erw riters bureau.
S andager has long been engaged com piled six y ears ago.
M arch, a heavy co n trib u to r to the
in th e banking business in Lisbon,
h aving m ore th a n th irty years of q u a rte r’s expanded lending business,
w as th e tw enty-eighth consecutive
experience to his credit.
T here w ill be no change in the busi­ m onth in w hich the savings, building
ness policies of th e Lisbon bank, San­ and loan associations’ volum e of loans
dager said. D irectors of th e bank had been g reater th a n the sam e m onth
are Mrs. W. A. Lilyquist, Jakob W al­ of th e previous year. It saw the lend­
ters, Jo h n Challey, K nute R ingdahl ing of $105,162,000, of w hich 39.6 per
cent w as to help people buy existing
and Sandager.
W olters continues as vice p resident homes. A spectacular rise of $11,500,and Miss M arie M organ as senior as­ 000 from F e b ru a ry m ade its hom e p u r­
sista n t cashier. T ellers are Mrs. M ary chase loans g reater th an any m o n th ’s
A. C arter, Miss E ileen Johnson and since May of last year. Loans for th is
purpose w ere in proportionately g reat­
Gordon H. W eber.
er dem and th a n those for hom e con­
struction,
a circum stance a ttrib u te d to
North Dakota Resources
th e h u rry of th e public to invest its
R esources of th e 150 insured com­
m oney in som ething tangible, and pos­
m ercial banks in th e state of N orth
sibly som ew hat to rising building
D okota totaled $94,657,000 on Decem­ costs.
b er 31, 1940, according to a survey
Mr. Bodfish pointed out th a t the in ­
m ade public by th e F ed eral Deposit
creases over th e first q u a rte r of a year
In su ran ce C orporation.
ago w ere entirely in the categories of
D eposits in th e in su red banks w ere
hom e purchase and hom e construc­
listed as $83,977,000. D em and deposits
tion loans, th e volum e for refinancing,
of th e latest call date am ounted to
m odernization and repairs, and m is­
$54,094,000 and tim e deposits totaled
cellaneous purposes being approxi­
$29,883,000.
m ately th e sam e as last year.
Loans and discounts of th e re p o rt­
ing banks am ounted to $46,092,000,
an increase of $11,638,000 over the
Pointed Sales Talk
D ecem ber 31, 1939, total.
Custom er: “I ’d like to see som e­
D irect and guaran teed obligations th in g cheap in a felt h a t.”
of th e U nited States G ivernm ent listed
A ssistant (under notice): “C ertain­
by th e N orth D akota banks am ounted
ly sir. T ry th is one on. The m irro r
to $16,118,000 on D ecem ber 31, 1940. is on th e left.”
O ther securities totaled $7,742,000.
C. C. W A ÏT A M
S ecreta ry
F a rg o

N orthwestern Banker

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

June 19bl

60

r

ALLEY
AVING
BANK
offers

ficient, Helpful Service
On Your Des Moines
T ransactions
Frederick M. Morrison, P r e s id e n t
Winfield W. Scott, V ice P r e s id e n t
J. R. Astley, C a sh ier
Edward P. Kautzky, A s s is ta n t V ice P r e s id e n t
Marvin L. Payne, A s s is ta n t C a sh ie r
Frank M. Thompson, A s s is ta n t C a sh ier
Member Federal Deposit Insurance Corp.

Northwestern Banker

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

June 19M

61
R. M. T uttle, Dan E. Cole, Chas. C.
Collester and Otto A. B jornstad.
B ranch offices are m aintained at
both E v erly and Rossie, tw o Clay
county com m unities, w ith Dale Barru s in charge at E v erly and N. E.
R usset at Rossie. B oth hold th e of­
fices of assistan t cashier and other
assistan t cashiers at th e Spencer in ­
stitu tio n are R obert G. Lexvold, A. J.
P rechel and A lvin G. H ansen.

N EW S

H. R. YOUNG
P r e s id e n t
A rlin gton

Warns Against Overlending
R alph Bunce, Iow a dep u ty su p er­
in te n d e n t of banking, w arn ed of over­
lending last m onth at th e closing ses­
sion of th e Iow a A ssociation of P e r­
sonal F in an ce Com panies at H otel
Savery in Des Moines.
He said state su pervision w as for
th e public in terest, ra th e r th a n th e
in te re st of th e lenders and th a t w hile
su pervision has b ro u g h t m any con­
stru c tiv e developm ents for borrow ers,
th e re is considerably m ore to be done.
B unce urg ed lenders to m ake every
loan so th e b o rro w er cannot only re ­
pay it b u t be in a b e tte r position a fte r
he pays. He said m any applicants
need counsel m ore th a n m oney, and
urged lenders to give such advice.

Retired Banker Dies
C harles N. Wood, 80, re tire d Logan
b anker, died suddenly a t his hom e
th e re last m onth. He w as engaged in
th e b an k in g business 62 years.

Cashes 19-Year-Old Check
W hen th e P. I. P eterso n fam ily
m oved from th e ir farm so u th w est of
N orthw ood to L ake Mills last spring,
Mr. P eterso n found a check for th e
sum of 50 cents th a t he had received
in May, 1922, for road w ork, and had
m islaid am ong o th er papers. The
check w as issued by th e S tate of Iow a
and w as d raw n on th e B ankers T ru st
Com pany of Des Moines.
Mr. P eterso n took th e check to th e
b an k in L ake Mills w h ere it w as
cashed and cleared th ro u g h th e Des
M oines b an k p ro m p tly and w ith o u t
question, in spite of th e elapse of
19 y ears since its issuance.

To California Bank
T h ree young m en of A lta have re ­
cen tly accepted positions w ith th e
B an k of A m erica, and w ill re p o rt for
w o rk v e ry soon. T hey are F ey Mieras,
A rt R yden and M ervin P eterson. Mr.
M ieras and Mr. R yden have been em ­
ployed by th e F irs t T ru s t and Sav­
ings B ank of Alta.

FRANK W ARNER
S ecreta ry
D es M oines

The young m en do not know as
yet w h at tow ns th ey w ill be stationed
in, since th e B ank of A m erica is a
chain of some 500 banks.

Orient Banker Dead
F u n e ra l services for A. K. Reed,
89, form er presid en t of th e O rient
Savings Bank, w ere held at th e M eth­
odist ch urch in O rient last m onth.

Goes to Harlan
Jo h n R ossm an of Defiance has ac­
cepted a position w ith th e Shelby
C ounty S tate B ank of H arlan.

25th Anniversary Celebrated
In observance of th e tw enty-five
y ears of continuous service in Spen­
cer, th e F a rm e rs T ru st and Savings
B ank held “open house” Tuesday, May
27th, and friends and custom ers of
th e in stitu tio n w ere invited to in ­
spect th e renovated and redecorated
b anking rooms.
Officials and em ­
ployes of th e b ank w ere on h and to
show th e v isitors some of th e new
features, such as “friendly co u n ter”
and cash protection system .
Its prosperous grow th is m utely told
by its increase in deposits. A t th e
end of th e first year, th e deposits at
th e F a rm e rs T ru st and Savings B ank
totaled $187,288.56, w hereas this total
h ad leaped to $2,110,172.51 a t th e end
of th e tw enty-fifth year.
At th e tim e th e F arm ers T ru st w as
organized it had a capital stock of
$50,000. D eposits th e day of th e open­
ing am ounted to $5,606.45. D uring th e
tw enty-five y ears th e capitalization
has been increased to $100,000 and a
su rp lu s of $50,000 is being carried, all
derived from earnings of th e in stitu ­
tion.
Since its organization, th e F arm ers
T ru st has had th re e presidents, W il­
liam F lin d t and H. B. Noll, both de­
ceased, and L. A. W itter, the presen t
head of th e in stitu tio n . O ther officers
are R. M. T uttle, vice president, and
K arl R. T uttle, cashier. T he board
of directors consists of L. A. W itter,

Opens July I st
The stock for th e new b an k in
R uthven, to be know n as th e Ruthven State Bank, has been subscribed.
The new bank w ill have a capital
stock of $25,000 and a su rp lu s fund
of $5,000, and as th is m oney is being
paid in it w ill be placed on deposit
for th e R u th v en State B ank in th e
Iowa-Des Moines N ational B ank &
T ru st Company, in Des Moines, w hich
in stitu tio n w ill certify to th e paid
in capital stock.
As soon as th e organization is com ­
pleted, th e officers and directors w ill
be announced. W. W. L inebarger of
Mason City, w ho w as assistan t cash­
ier of th e F irs t N ational B ank at
Clarion for a num ber of y ears and
later cashier of th e B attle Creek B ank
u n til he disposed of his in terests there,
w ill be cashier.
The new b ank w ill open for business
in th e place w here th e p resen t ban k
office is located.

M orrell W e e k was h e ld recently in
O ttum w a, honoring John M orrell &
C om pany.
T h e above display, d e ­
signed by J oseph F unk , was arranged
for by Union B a n k & T ru st C o m p a n y
of that city, and was e x h ib ite d in the
lo b b y of the bank.
Northwestern Banker


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

June 19bl

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

WHAT’S BEEN HAPPENING IN

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Comparison in miles of hard-surfaced roads

1920
1940

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Comparison of resources Bankers Trust Company
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23,399,000

6th and Locust
Des Moines

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

4 , 700,000

, ;

'*

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64

• IOWA

FRED

C. H E N E M A N

NEWS

•

D E A N H. L IG H T N E R

Consolidation in Mason City
H E m erger of th e N o rth w est Sav­
ings B ank w ith th e F irs t N ational
B ank of Mason City, u n d er th e nam e
of th e F irs t N ational B ank has been
approved by th e W ashington a u th o ri­
ties, and th e physical aspects of th e
m erger have already been com pleted.

T

The F irs t N ational Bank, w hich w as
organized 71 years ago and is th e re ­
fore one of th e oldest banks in Iowa,
th ro u g h th e acquisition of th e busi­
ness of th e N o rth w est Savings Bank,
th ereb y takes its place am ong Iow a’s
te n largest banks w ith total resources

“FIDELITY FACTS”
-X- In su ran ce in F orce—
$51,699,874.00
Assets— $11,687,400.86
-JL- Assets fo r each
lia b ilitie s— $115.81

$100

ross Surplus R atio
★ bGilitie
s— 15.81%

★

of

to lia ­

Cash benefits p a id to memIm n o fi
o r io c
in
beneficiaries
1940- 1,069,176.33

berS and
iin d

-X- Cash benefits p a id since 1896
^ — over $34,000,000.00

LIFE ASSOCIATION
Fulton, Illinois
Legal reserve life in su ra n ce in stitu tio n
doing business in Illin o is, Iow a, W is­
consin, Texas, N ebraska, M issouri,
K ansas, M ichigan, In d ian a , M innesota
and Ohio

T h e y b a n k w ith

The CITY NATIONAL BANK
C L IN T O N , IO W A
M em ber o f th e F ed era l D ep o sit In su r a n c e C orp oration

Northwestern Banker

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

June 19M

Wm W. BOYD

of $9,694,369.45 as of May 12th. De­
posits of the bank as of May 12th w ere
$8,780,405.98.
The new official lineup of officers
of the F irs t N ational B ank is as fol­
lows: F red C. H enem an, president;
Dean H. L ightner, first vice president;
Carl A. P ark er, vice president; W illiam
W. Boyd, cashier; C. S. Thom pson,
a ssistan t vice president; Douglas G.
Swale, a ssistan t vice president; Al­
fred M. Halsor, assistan t cashier; Roy
B. Johnson, a ssistan t cashier; H a rry
C. F isher, assistan t cashier; and Ralph
E. W iley, assistan t cashier.
D irectors o th er th a n officers include:
Ja y E. Decker, form er packer; Remley J. Glass, attorney; Carl H enkel,
contractor; Floyd E. Johnson, coal
and ice; Lee P. Loomis, publisher;
Jo h n A. Senneff, attorney; E a rl Smith,
attorney; L. S. Thom pson, grocer; E.
H. W agner, investm ents.

65

• IOWA
T he F irs t N ational B ank w as o r­
ganized in 1869 and for m any decades
w as know n as th e M cNider B ank, al­
th o u g h th e recen t resig n atio n of Col­
onel H anford M acNider as chairm an
of th e board leaves th e b an k w ithout
one of th e M cNider fam ily on its offi­
cial board, for th e first tim e in history.
The N o rth w est Savings B ank w as
organized in 1929. Dean H. L ightner,
fo rm er w ell know n South D akota
banker, has been its p resid en t for th e
p ast five years.

NEWS

•

th e F irs t State Bank, B ritt, to es­
tab lish a farm service departm ent.
T his d ep artm en t is to be headed by
M ark F. Miller, w ho is w ell know n
in th a t com m unity and w ho has had
a broad experience w ith farm ing and
farm m anagem ent.
Mr. M iller w as raised in B ritt and
a fte r spending tw o years at Ames he
farm ed a section of land south of
B ritt. In 1930 he m oved to Des Moines
and took a position as field m an w ith
th e U nion C entral Life Insu ran ce
Company, in w hich position he has

serviced th e ir farm loans and looked
after an y farm s th e com pany owned.

Final Payment
Effective last m onth, a final pay ­
m ent w as m ade on th e tru s t certifi­
cates of th e M elbourne Savings Bank,
rep resen tin g th e balance of th e origi­
nal am ount held in tru st.
In a le tte r to certificate holders, A1
Sanderm an, cashier, on behalf of the
directors and officers of th e bank,
th an k ed those in terested for th e ir
splendid cooperation.

Memorial Day Address
Guy O. V anderveer, W averly b anker,
delivered th e M em orial Day address
a t N ashua F riday, May 30th.
Mr. V anderveer is an o u tstan d in g
p atrio tic sp eak er and he also deliv­
ered an address on A m ericanism for
th e N ashua Lions Club not long ago.

Appointed U. S.
Commissioner
V ernon U. Sigler, Des Moines in ­
su ran ce m an and in v estm en t banker,
recen tly w as appointed U nited States
com m issioner
by
F ed eral
Judge
C harles A. Dewey. Sigler’s appointb e n t becam e effective Ju n e 2nd, w hen
he succeeded Jo h n R. H am ilton, w hose
resig n atio n w as announced last m onth.
The U nited States com m issioner
holds p relim in ary h earin g s in all
crim inal cases involving federal law s
and m ay e ith e r dism iss th e charge or
bind th e accused over to th e g ran d
ju ry and set th e n ecessary bond.

Daughters in Hawaii
N aom i and Lois L udem ann, d augh­
te rs of J. J. L udem ann, vice p re si­
d en t of th e Peoples Savings Bank,
W ellsburg, both hold positions in th e
H aw aiian Islands.
Naomi, as a reg istered nurse, is
w ith th e Aeia P lan tatio n H ospital.
T his p lan tatio n is one of th e larger
su g ar p lan tatio n s in th e Islan d and
has 3,800 em ployes. Lois has ju s t re ­
cen tly ta k e n a position as dietician
w ith th e T rip ler G eneral H ospital at
F o rt S hatter, a gov ern m en t hospital
in H onolulu. Naom i has been in th e
Islands eighteen m onths and plans
on m aking h e r hom e there. She w as
m arried on Ju n e 1st to A lfred A.
F ix ter. Before leaving for th e Islands,
Lois w as em ployed by Stanford U ni­
v e rsity H ospital in San Francisco.

Farm Department
In order th a t it keep in closer touch
w ith its farm er custom ers it has been
decided by th e board of directo rs of

ANNOUNCEM ENT
The d irectors of the First N a tio n a l B ank in
S io u x C ity a n n o u n c e the e le c tio n of A . G. S a m ,
form er v ic e p resid en t to the P re sid en cy , s u c ­
c e e d in g the la te A . S. H anford.

The co m p lete

official staff of this institution is n o w a s follow s:

A. G. Sam, P resident
J. P . H ainer, Vice P resident
Fritz Fritzson, Vice Pres, and Cashier
J. T. Grant, Assistant Cashier

J. R. Graning, Assistant Cashier
E. A. Johnson, A ssistant Cashier
W. F. Cook, Auditor

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

IN

S IO U X C IT Y
N orthw estern B anker


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Federal Reserve Bank of St. Louis

June 19JÎ

66

—• IOWA
Fifty Years
F iftie th an n iv ersaries only come
once to any individual or institu tio n ,
so th a t event w as quite a day for th e
Lone T ree Savings B ank, th e day
m ark in g the fiftieth a n n iv e rsa ry of
its incorporation as th e first b an k in
Lone Tree.
A t a special m eeting of th e stock­
holders it w as voted to re-incorporate
for an o th er fifty y ear period, and to
renew th e b a n k ’s c h a rte r for an equal
leng th of tim e. Also at th is m eeting
W. R. B rew ster w as elected as p re si­
dent of th e bank, filling th e vacancy
left by th e d eath of Jo h n P. B urr, and
Gus H e rrin g w as elected vice p re si­
dent, th e post form erly held by Mr.
B rew ster.
The Lone T ree Savings B ank w as
originally in corporated in 1891.

Iowa Resources
R esources of th e 586 in su red com­
m ercial b anks in th e sta te of Iow a
totaled $778,669,000 on D ecem ber 31,

NEWS

—

1940, according to a su rv ey m ade pub­
Appointed to Committee
lic by th e F ed eral Deposit In surance
W. K. N iem ann, ch airm an of th e
Corporation.
U nited Service O rganizations for th e
Deposits in th e in sured banks w ere
Des Moines area, recen tly announced
listed as $708,112,000. D em and depos­
appointm ent of H arold P. K lein as vice
its of the latest call date am ounted to
ch airm an and Carl W. M esm er as
$477,614,000 and tim e deposits totaled
treasu rer.
$230,498,000.
Mr. K lein is an a ssistan t vice p resi­
Loans and discounts of th e re p o rt­ dent of the Iowa-Des Moines N ational
ing b anks am ounted to $316,128,000, B ank and Mr. M esm er is vice p resi­
an increase of $33,670,000 over th e De­ dent of th e B ankers T ru st Company,
cem ber 31, 1939, total.
both of Des Moines.
D irect and guaran teed obligations
of th e U nited States G overnm ent
Bank Picnic
listed by th e Iowa banks am ounted to
Em ployes of th e F o rt Dodge N a­
$101,466,000 on D ecem ber 31, 1940.
tional Bank, w ith th e ir w ives or h u s­
O ther securities totaled $81,725,000.
bands, enjoyed a picnic recently a t
Loans and discounts of th e 13,438
th e B errier cabin near Badger. N ear­
in su red com m ercial banks th ro u g h o u t
ly fifty shared in th e function.
th e co u n try totaled $18,397,775,00, an
increase of $1,531,754,000 or m ore th a n
Bankers Club Ladies Meet
9 p er cent over th e am ount reported
D ecem ber 31, 1939. D eposits increased
Ladies of the B ankers Club of Des
from th e $56,076,349,000 rep o rted the M oines m et last m onth at th e hom e
previous year to $63,469,603,000, the
of Mrs. George B ram m er for a m orn­
hig h est figure since inau g u ratio n of ing musicale.
deposit insurance.
Mrs. L ehm an P lum m er w as chair-

A T T H E I O W A G R O U P M E E T IN G S
1— E v erett M. Griffith, a s s is ta n t v ice p re s id e n t, Iow a-D es
M oines N a tio n a l B a n k a n d T ru s t C om pany, D es M o ines; Fred
W iebel, a s s is ta n t cash ie r, T ip to n S ta te B a n k , T ip to n , a n d Irw in
M osher, c ash ie r, W e s t L ib e r ty S ta te B a n k , W e s t L ib e rty . 2—
Fred Cummings r e p re s e n ta tiv e of th e D ro v e rs N a tio n a l B a n k
of C hicago, r e g is te rin g a t th e m e e tin g of G roup 3 a t H a m p to n .
3— In c o m in g a n d o u tg o in g s ta te b a n k in g s u p e rin te n d e n ts . M el­
v in E. E llis, th e n ew su p e rin te n d e n t, s h a k in g h a n d s w ith D. W.
B ates, th e r e tir in g s ta te su p e rin te n d e n t of b a n k in g . 4— D. W.
B ates, r e tir in g su p e rin te n d e n t of b a n k in g , a n d Frank W arner,
s e c re ta ry of th e Io w a B a n k e rs A sso c ia tio n , o p e ra tin g th e
“ m o w in g m a c h in e ” a t K e o sa u q u a. 5— Carson W illiam s, vice
p re s id e n t a n d c a sh ie r, S e c u rity S ta te B a n k , M t. A y r; Ralph K.
M cGee, v ice p re sid e n t, C lark e C o u n ty S ta te B a n k , O sceola, and
new c h a irm a n of G roup 9, a n d Ju lian F rost, e x e c u tiv e v ice p re s ­
id e n t a n d c ash ie r, D e c a tu r C o u n ty S ta te B a n k , L eon. 6— G. J.
L iljedahl, vice p re sid e n t, F i r s t N a tio n a l B a n k , E sse x ; D e Los
Quist, a s s is ta n t cash ie r, F i r s t N a tio n a l B a n k , E ssex, a n d A u stin
L. V ickery, c ash ie r, U n ite d S ta te s N a tio n a l B a n k , O m aha. 7—
F. J. H oskins, c ash ie r, K e y sto n e S a v in g s B a n k , K e y sto n e ; E.
W . Jones, vice p re sid 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, D es M oines; P. E. Sorg, a s s is ta n t c ash ie r, F a r m ­
ers S ta te S a v in g s B a n k , In d e p e n d e n c e ; W esley T. H eck t, p re s i­
d e n t, G ru n d y N a tio n a l B a n k , G ru n d y C e n te r, a n d A . F. A gena,
cash ie r, F a rm e rs S a v in g s B a n k , G arw in. 8— W illiam W. Boyd,
c ash ie r, F i r s t N a tio n a l B a n k , M aso n C ity , a n d c h a irm a n of
G roup 3, a n d A lbert H alvorson, cash ie r, St. 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 s e c re ta ry o f G roup 3. 9—
Y ates E. A llen , c ash ie r, F i r s t S ta te B a n k , C h u rd a n ; R. R. R ol­
lins, vice p re sid e n t, B a n k e rs T ru s t C om pany, D es M o in es; R ay
O. B ailey, p re sid e n t, J a s p e r C o u n ty S a v in g s B a n k , N e w to n ; M ax
Von Schrader, c ash ie r, U n io n B a n k a n d T ru s t C om pany, O t­
tu m w a, a n d Clarence A. D iehl, vice p re sid 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, D es M oines. 10— C. J. Garmen, c ash ie r, P e o p les S a v in g s B a n k , E lm a, a n d p re s id e n t o f
H o w a rd C o u n ty B a n k e rs A sso c ia tio n , a n d W. C. D ostal, c ash ie r,
B o h em ian S a v in g s B a n k , P ro tiv in , a n d vice p re s id e n t o f H ow -

N orth w estern B anker

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Federal Reserve Bank of St. Louis

June 1941

a rd C o u n ty B a n k e rs A sso c ia tio n . 11— Oscar H elgerson, c a sh ie r,
H o u g h to n S ta te B a n k , R ed O ak, a n d n e w ly e le c te d c h a irm a n
o f G roup 5. 12— R. H. K roeger, vice p re sid e n t, a n d S. B. W il­
liam s, Jr., re p re s e n ta tiv e , L iv e S to c k N a tio n a l B a n k , O m aha.
16— C. E. Okey, p re sid e n t, O key-V ernon N a tio n a l B a n k , C orn­
in g ; A. E. Jensen, p re sid e n t, F i r s t N a tio n a l B a n k in C re sto n ,
C reston, an d F. A. Ide, c h a irm a n of th e b o a rd , F i r s t N a tio n a l
B a n k in C reston, C reston. 14— I. G. M cQueen, c ash ie r, F a rm e rs
S ta te B a n k , R id g ew ay , a n d c h a irm a n of G roup 4, a n d C. H .
M egorden, cash ie r, W au k o n S ta te B a n k , W au k o n , a n d s e c re ta ry
of G roup 4. 15— H. L. Bass, 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; R. A. Sw eet, vice p re s id e n t a n d c ash ie r, S to ry
C o u n ty S ta te B a n k , S to ry C ity. 16— W. B. Griffin, Jr., c a sh ­
ier, Io w a S ta te B a n k a n d T ru s t C om pany, F a irfie ld ; R. M.
Shields, c ash ie r, E x c h a n g e B a n k , B loom field; Ed. W. Shaw, c a sh ­
ier, D a v is C o u n ty S a v in g s B a n k , B loom field, a n d B. C. Casady,
cash ie r, S ta te S a v in g s B a n k , C a n tril. 17— P a ra d e d u rin g th e
T u lip F e s tiv a l a t P e lla . 18— P. G. Y oung, c ash ie r, B e n to n C oun­
t y S ta te B a n k , B la irsto w n ; J. R. V erm azen, c ash ie r, C helsea
S a n v in g s B a n k , C helsea; A. T. Donhowe, v ice p re s id e n t, 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, a n d R. R.
Schroeder, v ice p re s id e n t a n d c ash ie r, Io w a C ounty S a v in g s
B a n k , M aren g o . 19— H en ry B. W alters, p re s id e n t, T ip to n S ta te
B a n k , T ip to n , a n d P. A. D ietz, p re s id e n t, W a lc o tt T ru s t & S a v ­
in g s B a n k , W a lc o tt. 20— J. W. D avis, p re sid e n t, C itiz en s S a v ­
in g s B a n k , A voca, a n d J. H. Pullm an, vice p re sid e n t, F re m o n t
C o u n ty S a v in g s B a n k , S id n e y , r e tir in g c h a irm a n o f G roup 5.
21— L. W. Ross, vice p re sid e n t, C itiz en s S ta te B a n k , O a k lan d ,
a n d H. E. Ross (no re la tio n ), p re sid e n t, C ity N a tio n a l B a n k ,
S h e n a n d o ah . 22— D. D. Bram well, p re sid e n t, F i r s t N a tio n a l
B a n k , H a m p to n , a n d D. D. In glis, p re s id e n t, H a m p to n S ta te
B a n k , H a m p to n , a n d p re s id e n t F r a n k lin C o u n ty B a n k e rs A sso­
c ia tio n . 23— P aul Farnsw orth, a s s is ta n t c ash ie r, Cresco S ta te
B a n k , Cresco, a n d s e c re ta ry -tre a s u re r H o w a rd C o u n ty B a n k e rs
A sso c ia tio n , a n d V. Spalding M iller, a s s is ta n t c ash ie r, W a te rlo o
S a v in g s B a n k , W aterlo o .


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Federal Reserve Bank of St. Louis

68

• IOWA
m an for th e day, assisted by M esdames
F. M. M orrison, H e rb e rt L. H orton and
D. J. V an Liew.
Follow ing th e business m eeting a
program w as given in charge of Mrs.
W alter L. Stew art.

Celebrates 50th Anniversary
L ast m onth th e State B ank of V in­
ton celebrated its 50th an n iv ersary ,
receiving co n g ratu latio n s from its
m any friends and custom ers.
The S tate B ank of V inton w as o r­
ganized early in 1891. On May 18th
of th a t y ear th e b an k opened for b u si­
ness.
T h ro u g h o u t th e in terv en in g

NEWS

•

years, in good tim es and bad, th e in ­
stitu tio n has nev er closed except d u r­
ing th e brief b anking holidays ordered
by th e m ayor of V inton and th e P resi­
d en t of th e U nited States. No deposi­
to r ever lost a cent of m oney e n tru sted
to th e bank.
Since 1933 th e State B ank has been
V inton’s only bank. Today it is big­
ger and stro n g er th a n ever before
w ith deposits totaling in excess of
$1,500,000. More th a n half of th e de­
posits are loaned to farm ers, business
m en and citizens of th e V inton com­
m unity. The b ank has approxim ately
2,500 custom ers.

F ifty y ears ago w hen th e doors of
th e in stitu tio n w ere first opened to
the public its officers w ere: P aul Correll, president; Jam es W. H aw kins,
vice president; W alter S. Goodhue,
cashier; W alter S. Palm er, secretary;
F ra n k G. Ray, D. D. Johnson and M.
M eredith, directors.
Today th e in stitu tio n is headed by
P resid en t Jo h n W. Tobin. M. J. Tobin,
a director since 1904, is vice president. C harles B. B arron is cashier.
Clint Schlotfelt and Clare O. Donels
are directors.
O ther officers and em ployes are:
H arold C. B ryant, assistan t cashier;
M. J. Dwyer, teller; A rth u r Sim anek,
teller; E d w ard V anourny, m anager
G arrison branch; G ertrude Schlotfelt,
chief bookkeeper; K ath erin e R ichart,
bookkeeper; V irginia Leem on, filing
clerk; Dicta H arm on, stenographer.

Officers Elected

CLOSE

TO

BASI C

C H I C A G O ’S

INDUSTRIES

Jam es Brow n, m anager of th e credit
d ep artm en t of th e Iowa-Des M oines
N ational B ank and T ru st Company,
w as elected first vice presid en t of the
Des Moines C hapter of th e A m erican
In stitu te of B anking last m onth. He
w ill autom atically becom e presid en t
n ex t year.
W alter H aw ley w as nam ed second
vice president; H erm an P atrick, tre a s­
u rer, and M arie H enderson, secretary.
E d Bliquez, w ho w as first vice p resi­
dent, m oved up to th e presidency.
F o rre st G albraith w as aw arded a
free trip to th e convention of th e n a­
tional u n it in San Francisco, Cali­
fornia, Ju n e 5th, for having th e highest
grade in th e c h a p te r’s n ig h t school last
w inter.

Furniture is im portant to Chicago, ranking ninth in the list of basic
industries of our city. Chicago is likewise im portant to the furni­
ture industry, for it leads all other cities in em ploym ent with
nearly 20,000 workers, and serves as style, sales and distribution
center for the entire industry. . . . T he American N ational Bank
and T rust Com pany is qualified through facilities and experience
to represent the interests of o u t-o f-to w n bankers in all m atters
related to this im portant Chicago industry.

A M E R I C A N N A T I O N A L BANK
AND T R U S T COMPANY

Essex Bank Celebrates
T hree h u n d red cigars and 500 candy
bars w ere given aw ay at th e F irs t N a­
tional B ank of E ssex a t its fo rtieth
an n iv ersary celebration last m onth.
Nine beautiful bouquets adorned th e
w indow s. T hese w ere presen ted to the
b ank by Page County S tate and Citi­
zens B anks of C larinda, S ecurity and
T ru st of Shenandoah, U. S. N ational
of Omaha, C ontinental Illinois N a­
tional of Chicago, F irs t N ational of St.
Joseph, W. J. D enny Com m ission Com­
pany, of Omaha, Mrs. F ran ces Cagley

Banks Sold or Bought!
quietly, quickly and in a personal! manner

M e m ber F ederal D eposit Insurance C o rporation

LA

S AL L E

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Federal Reserve Bank of St. Louis

S T R E E T

June 19bl

AT

W A S H I N G T O N

JAY A. WELCH
Haddam, Kansas
“35 years Practical Banking
Experience”

*

69
of C larinda and th e E ssex Booster
club.
T h ere w ere b a n k e rs p re se n t from
Red Oak, S henandoah, C larinda, Sid­
ney, C orning and Omaha.

North Iowa’s Largest Bank

Sam Heads Bank
D irectors of th e F irs t N ational Bank,
Sioux City, last m onth elected A. G.
Sam as b an k p resid en t to succeed A.
S. H anford, w ho died recently. The
session w as a reg u lar m onthly m eet­
ing held in th e bank.
No oth er

HE merger of the First National Bank and
the Northwest Savings Bank of Mason
City has given this part of the state a bank

T

with total resources, ranking it among the
first ten in Iowa.
STATEMENT OF CONDITION
May 12. 1941
RESOURCES

Loans and Discounts..............................................
$3,371,097.48
Stock in Federal Reserve Bank......................................
18,000.00
Overdrafts .................
891.39
Bank Building ................................................................. 346,250.00
Furniture and Fixtures.............. .................... ...............
8,984.82
Other Real Estate Owned...............................................
13,692.92
Interest earned but not collected.................. ......... .....
46,598.28
United States Bonds........... ...............
2,071,283.45
Other Bonds and Securities............................................ 1,370,506.46
Cash and Exchange .........
2,447,064.65
$9,694,369.45
A. G. SAM

changes in officers w ere m ade, no
new vice p resid en t being added to
succeed Mr. Sam.
Mr. Sam has been a vice p resid en t
since October, 1939, w hen he becam e
associated w ith th e F irs t N ational
B ank. F o rm erly he had been p re si­
den t of th e Live Stock N ational Bank.
Mr. H anford, 78, died May 2nd a fte r
a long illness. He had been p resid en t
of th e F irs t N ational since A pril 15,
1931.

Former Aigona Man Dies
F u n e ra l services w ere held recen tly
in Los Angeles, C alifornia, for Col.
T hom as F ra n k Cooke, fo rm er A igona
resid en t w ho had lived in C alifornia
ab o u t 35 years.
A business m an and b anker, Col.
Cooke w as a m em ber of th e Los A n­
geles City Council and once w as c h a ir­
m an of its finance com m ittee.

Accepts Position
H elen M atthew of L arrab ee h as ac­
cepted a position at th e P eterso n State
B ank and began w o rk th e re recently.
Miss M atthew w as em ployed by N el­
son an d N elson, atto rn ey s, in C hero­
kee p revious to com ing to P eterson.

LIABILITIES

Common Stock.......... :............ — ............ ........... ........... $ 400,000.00
421,860.69
Surplus and Undivided Profits...._________
Reserves ..........................................................................
92,102.78
Deposits ........
8,780,405.98
$9,694,369.45

A c c o u n ts o£ B a n k s S o lic ite d
A good b an k to tie to
DIRECTORS OTHER THAN OFFICERS
Jay E. D ecker.......................Form er Packer
Lee P . L oom is..
Remley J. Glass...............................Attorney
John A. Senneff
Carl Henkel .................................. Contractor
E arl Smith ..........
FÌoyd E. Johnson....................... Coal and Ice
L. S. Thompson.
E. H. W a g n e r . . . . .................. .Investm ents
OFFICERS
Fred C. H enem an............................ President
D. H. L ig h tn er...................... Vice President
Carl A. P a r k e r ...................... Vice President
William W. B oyd
................... Cashier
C. S. Thompson. . . A ssistant Vice President

Douglas G. Swale. .A ssistant Vice President
Alfred M. H also r...............Assistant Cashier
Roy B. Johnson.................A ssistant Cashier
H arry C. F ish er.................A ssistant Cashier
Ralph E. W iley.................Assistant Cashier

First National Bank
M ason C ity, Iow a
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E

C O R PO R A T IO N

N orthw estern Banker

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Federal Reserve Bank of St. Louis

Publisher
. Attorney
. Attorney
. . . Grocer

June 19

70

• IOWA
County Bankers Meeting
A m eeting of th e A llam akee B ank­
ers A ssociation w as held at th e W aukon State B ank last m onth, follow ing
a 6:30 d in n er a t th e Model Cafe. Covers
w ere laid for 18. As th is w as th e an ­
nual m eeting election of officers took
place.

Bank Officers Elected
At th e an n u al m eeting of th e stock­
holders of th e Jack so n S tate Savings
B ank of M aquoketa held last m onth
all officers w ere reelected for th e com ­

NEWS

*

ing year. These include L ynn F uller,
president; M. O. Sagers, D. D. F u ller
and Lewis S. Lein, vice presidents; and
Jo h n Jargo, cashier. The directors are
A. P. Beck, F. W. Gibson, L ynn F uller,
H. D. Keeley, H. K. Lee, M. D. Mc­
C arthy, H a rris Penrose, M O. Sagers,
L. H. R asm ussen and F ra n k W irtb.
Mr. Sagers gave a survey of the past
y e a r and discussed problem s confront­
ing th e bank th e com ing year caused
by the E u ropean w ar including th e
U. S. G overnm ent’s preparedness pro­
gram . A five p er cent dividend w as

declared and o ther usual business w as
transacted.

Improvement at Bank
Two large m irrors, each 3x6 feet,
have been hu n g on each side of th e
clock on the w est w all in th e Tam a
S tate Bank. T he m irro rs are a beau­
tiful im provem ent to th e in terio r of
the bank.

Banker Passes Away
E.
R. N orton, 54, a ssistan t cashier
of th e P eterson State B ank and a very
pro m in en t leader in church, lodge and
civic activities, died at his hom e in
P eterso n last m onth of h e a rt disease.
He had been critically ill for six weeks.

Bank Officers Promoted

F o r M o re T h a n
SO Y e a rs
Many of the oldest and strongest
banks and trust companies in the
United States maintain correspondent
relationships with Central Hanover.
For example, 159 American banks
have been correspondents continu­
ously for more than half a century.

C e n t r a l H a n o ver
BANK AND TRUST COMPANY
NEW Y O R K

MEMBER

N orthw estern B anker

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Federal Reserve Bank of St. Louis

FEDERAL

DEPOSIT

Juné 19^1

INSURANCE

CORPORATION

The stockholders of the Jefferson
State B ank m et last m onth w ith all
directors and officers reelected. V. W.
M iller w as advanced to th e position of
executive vice president, w hile R. H.
M aloney w as advanced to th e position
of cashier, tak in g th e place m ade v a­
cant by Mr. M iller in accordance w ith
his prom otion. Mr. M aloney for a
n u m ber of y ears has been assistan t
cashier.

Meeting at Keosauqua
B anks of V an B uren county w ere
hosts to the m em bers of group 10 of
th e Iowa B ankers A ssociation a t an
all-day m eeting T hursday, May 15th, in
K eosauqua.
The
convention
w as
opened at th e lodge in Lacey-Keosauqua state p a rk a t noon and in th e eve­
ning a session w as held a t the H otel
M anning.
In addition to ban k ers from the
seven counties in th e district, th e visi­
to rs included rep resen tativ es from the
correspondent b anking houses, the
presid en t and secretary of th e State
B ankers A ssociation and th e state
banking com m issioner.

71

• IOWA
Joins New Bank
R alph L. E astrid g e, son of Mr. and
Mrs. W. 0. E astrid g e of R unnells, has
recen tly becom e associated w ith th e
new Iow a S tate B ank at Des Moines.

Anniversary Observed
A decade of pro g ress and p ro sp erity
w as celebrated last m o n th by officers,
directors, and em ployes of th e C entral
T ru s t & Savings B ank of Cherokee
w ho w ere observing th e 10th an n iv e r­
sary of th e b an k in g in stitu tio n .

NEWS

•

P etroleum Co.; W alter F. M eiburg, as­
sista n t secretary of the O ccidental Life
In su ran ce Co.; Ju liu s Junge, realtor,
and F ritz K eppy and G ilbert Ruehm ann, farm ers. Officers and directors
w ill serve u n til th e first ann u al m eet­
ing.
Subscriptions have been received
for $100,000 in capital stock and $25,000 su rp lu s tow ard opening of th e new
bank. R em odeling w ork a t th e bank
b uilding a t S ixteenth and W ashington
stre e ts is now u n d er way.

Cashier Resigns
Carl Jones, w ho has been cashier of
th e M acedonia office of th e State Sav­
ings B ank of Council Bluffs for th e
p ast seven years, subm itted his resig ­
nation last m onth.

Former Banker Dies
J. W. L ovitt, a re tire d farm er and
director of the form er Shenandoah
N ational Bank, died recen tly a t th e
Shenandoah hospital follow ing an ex­
tended illness.

Bank Fixtures Sold
A deal has been closed for th e sale
of th e fixtures in th e old T ra e r State
B ank building to th e new b an k w hich
w ill be opened soon in V inton. The
consideration w as rep o rted ly around
$800 or $900. The co n tract provides
th a t th e fixtures m u st be rem oved
from th e T ra e r b uilding before Ju ly
30th. T he V inton b an k is expected to
open som etim e a fte r Ju ly 15th.
R eports of th e sale of th e T raer
b an k building are w ith o u t foundation,
according to th e tru stees. Some offers
have been received, b u t no deal has
been com pleted and none is said to be
seriously pending.

Banker Dies
T. T. H enryson, 79, p ro m in en t citi­
zen and p resid en t of th e F irs t N ational
B ank at S tory City for 20 years, died
at his hom e th e re last m onth.
He h ad been in failing h ealth since
1928 b u t had been b edfast only two
w eeks. Old age and com plications
w ere given as th e cause of death.

Bank Officers Named
A tto rn ey H e n ry Jebens w ill be p re si­
d en t and H a rry C. L ynn, w ho has been
ex am in er in charge of liquidation of
th e old N o rth w est D avenport Savings
Bank, w ill be executive vice p resid en t
and cashier of th e new N o rth w est
B ank & T ru s t Co. of D avenport.
T hey w ere so designated in articles
of in co rp o ratio n signed by th e incor­
po rato rs at a re ce n t m eeting a t w hich
plans w ere m ade for filing th e articles
im m ediately and speeding operations
to have th e b an k in operation before
Ju ly 1st. A te n ta tiv e opening date to ­
w ard w hich w o rk is being directed is
Ju n e 16th.
D irectors designated in th e articles
of in co rp o ratio n in addition to Mr.
Jebens and Mr. L y n n are Dr. A. B.
K uhl, Sr., physician; M artin Thom sen,
p resid en t of th e T hom sen Tobacco Co.;
R. C. Sm ith, p resid en t of A m erican

400 Banks
in the Middle West
carry accounts with us. They have
found our 73 years of banking ex­
perience of value to them. May
we explain how this experience
can be made of value to you?

LIVE STOCK
NATION
nal
A L BANK
O M N I ! OF CH IC A G O
Established 1868

UNION

STOCK

YARDS

Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

June Í9J1

72

• IOWA
New Bank Employe
Miss E ldora R ohw er is th e new
bookkeeper and sten o g rap h er at th e
F a rm e rs Savings B ank, G arw in, ta k ­
ing th e place of Jen n ie S hrader, w ho
recen tly resigned a fte r th re e an d a
half y ears em ploym ent w ith th e bank.

Open Saturday Evening
T he Citizens S tate B ank of Hopkinton w ill be open from 7 to 9 p. m.
each S atu rd ay evening, for th e con­
venience of its custom ers. M any peo­

NEWS

*

ple of th e su rro u n d in g com m unity w ill
appreciate th is op p o rtu n ity to take
care of banking affairs, w hile looking
a fte r other business m atters.

Building Renamed
K now n since its erection in 1895 as
th e Cedar Rapids Savings B ank build­
ing, th e brick bank, office, and store
building at th e n o rth w est corner of
T h ird avenue and T hird street South­
east, in Cedar Rapids, has been
changed to G uaranty building.

Banker Undergoes Operation
C. G. M iller, cashier of th e H edrick
Savings Bank, after an illness of a
week, w as taken to th e St. Joseph
hospital in O ttum w a last m onth and
operated on for appendicitis.

Four-County Meeting
At a four-county m eeting of b an k ­
ers held a t Spencer recently, O. M.
Chaney of Spencer w as elected p resi­
den t of th e four-county b an k ers as­
sociation, W ayne Curl of E sth erv ille
w as nam ed vice p resid en t and D elbert
H inch of E stherville, secretary-treas­
u rer. A bout eighty persons, including
b an k ers and th e ir wives, w ere presen t
at th e b an q u et follow ing th e business
m eeting. T he four counties re p re ­
sented w ere D ickinson, Palo Alto, E m ­
m et an d Clay.

Prominent Banker Dies
A rth u r Scott H anford, 78, president
of th e F irs t N ational B ank of Sioux
City and founder of th e H anford
cream ery, w hich u n d er his m anage­
m ent becam e “th e larg est in th e
w orld,” died last m onth a t his hom e
in Sioux City. Mr. H anford h ad been
in failing h ealth for some tim e, b u t
w as a t his desk as late as tw o w eeks
before his death.
In addition to his b anking activities,
Mr. H anford w as v ery m uch in terested
in aviation, and a t th e tim e of his
death he w as a director of th e Mid­
continent A irlines.
Mr. H anford w as v ery w ell know n
in Iow a b an king cirles, and w ill be
g reatly m issed by his m any friends.

State Deposits High
Part of the Personal Trust Division

Continental I llinois
N ational B ank
and T rust Company
of C hicago
Member Federal Deposit Insurance Corporation

N orthw estern B anker

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Federal Reserve Bank of St. Louis

June Î9JÎ

Iow a’s 543 state-chartered banks had
deposits of $484,786,222 a t th e close of
business A pril 4th, D. W. Bates, state
su p erin ten d en t of banking, announced
recently.
T heir c u rre n t deposits, B ates said,
are th e h ighest in eight years. T hey
increased by $37,546,964 in th e y ear
since th e call for statem en t of condi­
tion M arch 26, 1940, and by $19,457,354
since th e D ecem ber 31, 1940, call.
B ank loans on A pril 4th, th e consoli­
dated statem en t showed, am ounted to
$305,443,878. T his w as an increase of
$8,963,842 since a y ear ago, and an in ­
crease of $22,765,106 since D ecem ber
31, 1940.
T otal footings of th e 299 savings
banks and 244 state banks w ere $535,228,876. T his rep resen ted an increase
of $40,741,260 for th e y ear and of $20,958,167 since th e end of last year.

73

i

• IOWA
T he 543 b an k s h ad su rp lu s of $14,114,255, an increase of $1,974,300 in a
y ea r b u t a decrease of $198,100 since
D ecem ber 31st. T he com bined u n d i­
vided profits w ere $12,313,577 on A pril
4th, or $930,145 m ore th a n a y e a r ago,
an d $1,300,331 m ore th a n on D ecem ­
b er 31st.
Real estate ow ned by th e b an k s had
decreased to $1,012,077 on th e A pril 4th
statem en t. T his w as $261,431 less th a n
th e holdings of a y e a r ago, and $133,409 less th a n on D ecem ber 31st.
The average cash reserv e in all statech a rte red b an k s w as 33.6 p er cen t on
th e c u rre n t statem en t.
F ollow ing is th e consolidated sta te ­
m en t of condition as of A pril 4th:
RESOURCES
Loans and discounts................................... $305,443,878
United States Securities.......................... 46,951,850
Securities guaranteed by governm ent.. 13,221,075
Overdrafs ..................................................
143,344
Stock in Federal Reserve b a n k ..............
257,250
5,010,444
Banking house and fixtures..................
Other real e s t a t e ........................................
1,012,077
Credits subject to sight d r a ft.................. 146,831,263
Cash in v a u l t .............................................. 16,075,953
Other assets ..............................................
281,739

NEWS

*

in state and n ational b ank associa­
tions th ro u g h o u t th e nation.
The
function of th e A. B. A. executive
council is to ad m inister th e affairs
of th e A m erican B ankers Association.

Dividends Declared
D irectors of th e N orthw est Bancorporation recen tly declared a dividend
of 20 cents a share on 1,556,601 shares
o u tstanding payable May 26, 1941, to
stockholders of record at the close of
business May 10, 1941, according to
J. C. Thom son, president.
T he corporation resum ed dividends
in 1939 w ith paym ent of a dividend
of 10 cents a sh are on N ovem ber 25,
1939. In 1940 dividends of 10 cents
a sh are each w ere paid on May 25,
1940, and N ovem ber 25, 1940.

Accepts New Position
Jim McConnell, w ho has been a ssist­
a n t m anager of th e H arlan G raham
store for th e p ast five years, started
w ork at th e H arlan N ational B ank
last m onth. P rio r to tak in g up his
duties at th e bank, Mr. McConnell
took a tw o-w eeks’' course on ru n n in g
a posting m achine at Omaha.
Two recen t vacancies have occurred
in th e H arlan b an k w ith th e resig n a­
tions of Damon Peasley and Don
Blakely.

New Check Plan
In au g u ratio n of a new checking ac­
count service called th e “PAYC” PayAs-You-Check plan w as announced
recen tly by th e Citizens State B ank
of Oakland. It is a new service de-

Total ..................................................... ..$535,228,876
LIABILITIES
Capital stock ............................................$ 23,770,500
(Preferred “ A” ) ..................................
2,012,735
(Preferred “B” ) ..................................
388,500
(Common) .............................................. 21,369,265
Surplus fund .............................................. 14,114,255
Undivided profits ...................................... 12,313,577
Due depositors .......................................... 484,786,222
36,608
Bills payable and rediscounts ..............
Other liabilities .........................
207,713
Total ............................................ ........... $535,228,876

Banker Injured
V ernon E. N ordstrom , cashier of th e
Oxford Ju n c tio n B ank, fell dow n th e
steps of his hom e recen tly and his
shoulder crashed into th e bu m p er of
his car b reak in g his rig h t a rm about
half-w ay betw een th e shoulder and
elbow.
N ot realizing th e arm w as broken,
he trie d to raise h im self on th e rig h t
h an d and telescoped th e fractu re.
He w as ta k e n to St. L u k e’s H ospital
in Cedar R apids, w h ere th e condition
of th e in ju ry w as rep o rted so bad
th a t th e atte n d in g p h ysician w as u n ­
able for a tim e to set th e break.
R alph Orr, cashier of th e W yom ing
B ank, is ta k in g N o rd stro m ’s place in
th e bank.

Attends Hot Springs Meeting
B. L. McKee, vice p resid en t and
cashier of th e M uscatine B ank and
T ru st Com pany, atten d ed th e an n u al
m eeting of th e A m erican B ankers
A ssociation held recen tly a t H ot
Springs, V irginia.
Mr. McKee, w ho is state vice p re si­
d en t of th e A m erican B ankers A s­
sociation, stated th a t th e executive
council of th e A. B. A. consists of
175 bank ers, w ho are chosen in ac­
cordance w ith th e ir executive ra n k
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Federal Reserve Bank of St. Louis

June 1941

74

• IOWA
signed to give those w ho desire the
convenience of a checking account
w ith o u t m ain tain in g a m inim um bal­
ance, th e only re q u ire m e n t being a
deposit sufficient to cover checks
w ritten .
T here are no m o n th ly service fees
or activ ity charges on these accounts.
T he only cost is five cents p er check,
th e cost of a book of tw e n ty checks
$1. C ustom ers m ay w rite as few or as
m an y checks as desired, th e re b y con­
tro llin g th e ir ow n cost.
R egular checking accounts w ill be
continued th e sam e as before and

NEWS

p resen t custom ers w ill find no change
in m ethod, b u t custom ers m ay choose
th e plan th ey prefer.

A ccording to A. B. Buckeridge, ex­
ecutive secretary of th e C redit B ureau
of G reater New York, Inc., host organi­
zation, m ore th a n 2,000 credit m en and
executives of 1,500 firms, rep resen tin g
Instalment Selling
sixty business, in d u strial and com­
The F ederal R eserve B oard’s plan m ercial classifications in th e U nited
to curb in stalm en t selling of autom o­ States are expected to a tten d th e con­
biles, refrig erato rs, fu rn itu re and other vention at th e H otel New Y orker, Ju n e
expensive item s to p rev en t inflation
16 to 19. It w ill be th e biggest con­
and to aid the defense program , will vention of credit m en to discuss buy­
be discussed in group activities of the ing on tim e problem s ever held in th e
T w enty-ninth A nnual Conference and U nited States.
C redit Sales F o ru m of th e N ational
Because of th e trem endous national
R etail C redit A ssociation n ex t m onth. in te re st to business, th e convention
proceedings, Mr. B uckeridge said, w ill
be open to firm s and individuals,
w h eth er m em bers of th e N ational Re­
tail Credit A ssociation or not. Anyone
in terested in credit problem s m ay
register.
The convention is sponsored join tly
by th e N ational R etail C redit Associa­
tion, th e A ssociated credit B ureaus of
A m erica, C redit W om en’s B reakfast
Clubs of N o rth A m erica and the Collec­
tion Service Division. Besides group
sessions, luncheons and sightseeing
tours, seventeen of A m erica’s out­
standing office appliance m an u factu r­
ers w ill display m odern credit facilitat­
ing devices in a special exhibition hall
in th e hotel. A collection of ad ju st­
m ent, credit and collection form s and
collection letters gath ered from all
sections of th e co u n try w ill be ex­
hibited.
P rin cip al speakers and th e subjects
of th e ir talk s at th e convention are:
S tanley M. Shaw, editor, Econom ic and
In v estm en t A dvisory Publications,
S tandard and P o o r’s Corporation,
“W artim e B usiness, Inflation and the
Efficient, quick service—plus
C redit M an”; J. E. R. Chilton, Jr., p res­
ident, A ssociated C redit B ureaus of
complete facilities make this
Am erica, Inc.; “It C an’t H appen to U s”;
bank the logical channel for
H en ry H. H eim an, executive m anager,
N ational A ssociation of C redit Men,
all your Northeastern Iowa
“Credit and R econstruction”; A rth u r J.
business.
M orris, president, M orris P lan In d u s­
trial B ank of New York, “C onsum er
C redit”; Malcolm L. M erriam , in charge
of credit research, B ureau of F oreign
and Dom estic Commerce, “C u rren t De­
velopm ents in Consum er C redit”; and
R. M. Severa, R. H. Macy & Co., “W hat
Is th e F u tu re of In stalm en t C redit?”.
E rw in K ant, of M ilwaukee, W iscon­
sin, presid en t of th e N ational R etail
Credit A ssociation, w ill open th e con­
vention and M ayor F iorella H. LaG uardia, w ill welcome the delegates to
New York. G eneral convention ch air­
m an is A. J. K ram er of B orden’s F arm
Member— Federal Reserve System
Products, New York, and general sec­
Member— Federal Deposit Insurance Corporation
retary , A. J. W orsdell, of th e A djust­
m en t B ureau, C redit B ureau of G reat
er New York, Inc.

HEADQUARTERS
^

FO R

m NORTHEASTERN

IO W A
BANKERS

*

t h e

•

NATIONAL BANK
OF WATERLOO

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June 1941

75

-•
Special p ublicity folders w hich list
in advance th e speakers, th e ir subjects
and th e questions w hich w ill be a n ­
sw ered a t g roup sessions are available
by ad dressing th e C redit B ureau of
G reater N ew York, Inc., 55 F ifth A ve­
nue, New Y ork City. E v e ry re g istra n t
w ill be given a folder upon registering.

Dividend
T he directo rs of th e F irs t N ational
B an k in St. L ouis a t a recen t m eeting,
declared a dividend of $1.20 p er share,
payable as follows: 40c p er sh are pay­
able May 31, 1941, to stockholders of
record May 26, 1941; 40c p er sh are p ay­
able A ugust 30, 1941, to stockholders
of record A ugust 25, 1941; 40c p er share
payable N ovem ber 29, 1941, to stock­
holders of record N ovem ber 24, 1941.

IOWA

NEWS

•

Highest Bank Clearings
B ank clearings for A pril a t H ast­
in g s’ tw o banks reached a new high
to tal for 1941 and w as th e highest re ­
corded since A ugust of 1940.
C learings reached $668,607.07 in th a t
m o n th as com pared to $697,848.57 in
A ugust of last year. A pril’s figures
w ere am ong th e h ighest since J a n u ­
a ry 1937, only four o ther m onths, in­
cluding last A ugust, topping them .
O ther h ighest totals are Ju ly 1939,
$693,029.32; Ju ly 1938, $745,597.20, and
Ju ly 1937, $833,561.20.

F ig u res for th e first th ree m onths
w ere considerably below those of
A pril, Ja n u a ry w as $630,491.12, F e b ru ­
ary $547,909.43, and M arch $620,276.39.
Q uarterly figures for 1941 reached
$2,477,284.01 as co n trasted to $2,250,927.78 in 1940.

Wilson Passes Away
A llan B. W ilson, 64, of N ebraska
City, banker, g rain m an and extensive
land ow ner, died recently in a K nox­
ville, Iowa, hospital of cerebral hem or­
rhage after tw o y e a rs’ illness.

NEBRASKA NEWS
Employed at Bank
D onnie M iller sta rte d w o rk recen tly
as bookkeeper a t th e C itizens State
B ank of H addam .

60th Anniversary Observed
The F irs t N ational B ank of F u lle r­
ton observed its 60th a n n iv e rsa ry last
m o n th by holding open house for its
m an y frien d s and custom ers. Souve­
n irs of th e occasion w ere d istrib u ted
to th e guests.
The F irs t N ational B ank w as opened
for business on M ay 1, 1881, being
know n th e n as th e “N ance C ounty
B ank.” I t w as founded by C hauncey
W iltse, Sr., w ho served as its p resi­
den t u n til his d eath in 1894. T heodore
Koch w as p resid en t u n til 1912, w hen
he w as succeeded by Jam es R. Russell,
w ho becam e connected w ith th e in ­
stitu tio n a t th a t tim e and served as
its p resid en t u n til 1928 w hen he w as
follow ed by Jo h n T. R ussell w ho is
presid en t at th is tim e. E. M. Black
becam e cashier in 1928.
The rem ain d er of th e b an k p erso n ­
nel a t p re se n t are: J. H. Kem p, vice
president; W alter H artm an , a ssistan t
cashier; M arg aret R ussell, bookkeeper,
and th e follow ing directors: J. H.
Kemp, Lew is G. K rem er, W. H. R us­
sell, E. M. B lack an d J. T. Russell.
T he F irs t N ational B ank is th e old­
est established business in stitu tio n in
N ance county. I t is one of 26 b anks
still rem ain in g in th e state th a t w ere
organized in 1881 or earlier. Of th is
num ber, 20 w ere organized before
1881.


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N orthw estern Banker

June I9JI

76
*

U ntil his h e a lth failed, W ilson op­
erated th e A. B. W ilson G rain com ­
pany w hich ow ned a strin g of ele­
v ato rs in so u th eastern N ebraska and
F rem o n t county, Iowa.
He w as a form er p resid en t and di­
recto r of th e N ebraska City N ational
Bank, a Spanish-A m erican w ar v e t­
era n and active in Boy Scout w ork.

Bank Lobby Revamped
C ustom ers a t th e S tephens N ational
B ank of F rem o n t recen tly observed
th e resu lts of a rem odeling project.
The first w indow has been rem oved
as has th e iron grillw o rk at th e re a r
of th e lobby, th e form er to p erm it
m ore room for reception of custom ers
by b ank officers, th e la tte r to provide
increased space for th e savings d e p a rt­
m en t and stenographic personnel. A
new w indow has been installed a t th e
rear, facing th e b an k entrance.

Bank Given High Rating
The ra tin g and prestig e of th e F irs t
N ational B ank in T ekam ah has been
given a decided boost in th e T en th
F ed eral R eserve D istrict of th e U nited
States. It is an h onor of w hich both
th e b an k officials as w ell as th e city of
T ekam ah can be ju stly proud.

MERCHANTS
MU T U A L

BONDING
COMPANY

I O W A

N E W S

•

The following le tte r to R obert I.
Stout, th e b a n k ’s president, from the
F ed eral R eserve B ank of K ansas City,
is self explanatory:
“I th o u g h t you m ight be in terested
in know ing th a t y o u r bank w as the
first in th e S tate of N ebraska, and
sev en th in th e en tire T en th F ederal
R eserve D istrict to qualify as an issu­
ing agent for th e sale of U S. Defense
Bonds of Series E. V ery tru ly yours,
John Phillips, A ssistant C ashier.”

Program Permanent
The executive council of th e A m eri­
can B ankers A ssociation voted u n a n i­
m ously at its an n u al spring m eeting
to m ake p erm an en t th e enlarged p ro ­
gram of A. B. A. activities u n d er w hich
five new dep artm en ts w ere created and
th e services of th e A ssociation’s reg u ­
lar d ep artm en ts and divisions to m em ­
ber b anks w ere g reatly expanded.
The executive council’s approval of
th e A ssociation’s “stream lin ed ” stru c ­
tu re and operations co nstitutes official
organization endorsem ent of the reso­
lution adopted in 1939 by th e Associa­
tio n ’s ad m in istrativ e com m ittee w hich
b ro u g h t the new and extended A. B. A.
program into being.
T his resolution, adopted w ith o u t a
d issenting vote, provided for a special

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
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assessm ent of $250,000 w hich 200 of
th e c o u n try ’s larg er banks w ere asked
to subscribe, in addition to th e ir regu­
lar dues, and fu rth e r provided th a t
if and w hen th e enlarged program
w as proved to be sound and service­
able, th e v o lu n tary subscriptions
w ould be discontinued and th e dues
schedule w ould be revised so th a t sev­
eral th o u san d banks w ould provide for
continuance of th e w ork. Satisfied
th a t th e soundness and serviceability
of th e p rogram had been established,
th e executive council voted today to
m ake it p a rt of th e p erm an en t w ork
of th e A ssociation and to revise the
dues schedule to m ake th is possible,
in line w ith th e recom m endations of
th e adm in istrativ e com m ittee.
T his is th e first revision of th e As­
sociation’s dues schedule in tw en ty
years. The last change w as m ade in
1921. T he c u rre n t revision w ill re ­
store th e incom e of th e A ssociation
from dues to th e level of th a t of 1929
by spreading th e cost of th e enlarged
program over a g re a te r proportion of
th e banks benefiting from it. A pproxi­
m ately 8,700 banks w ill be affected.
The 200 in stitu tio n s w hich contributed
the special assessm ent fund w ill con­
tin u e th e ir su p p o rt by carry in g m ore
th a n half of th e dues increase, w hile
th e dues of 8,500 o ther banks w ill be
increased to c a rry th e balance.
T he new and enlarged program w as
b ro u g h t into being as a re su lt of a
survey m ade by th e A ssociation’s offi­
cers in 1939 u n d er th e leadership of
R obert M. H anes, th en p resid en t of th e
Association. The survey revealed th a t
the m em bers w ere m aking increasing

Incorporated 1933

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Federal Reserve Bank of St. Louis

June 19bl

ank

S T R E E T

77
*

dem ands for service from th e A ssocia­
tion in connection w ith th e m any new
problem s th a t h ad arisen and th e m any
new form s of b an k in g activ ity th a t
had evolved d u rin g th e previous dec­
ade. Replies to in q u iries addressed
to m em bers indicated im p erativ e need
for assistance in several of th e new
typ es of b an k in g activ ity and in ­
creased service in older activities. Ac­
cordingly, th e existing services of th e
A ssociation w ere stepped up and five
new d ep a rtm e n ts w ere added. These
covered th e fields of a g ric u ltu ra l credit,
consum er credit, p ersonnel an d cus­
tom er relations, real estate and m o rt­
gage finance, and econom ic research.
Specialists in th ese fields w ere en­
gaged to head th ese dep artm en ts. T hey
are A. G. B row n, fo rm er p resid en t of
th e Ohio Citizens T ru s t Com pany, To­
ledo, for a g ric u ltu ra l credit; W alter
B. F ren ch , fo rm er executive vice p resi­
d en t of th e T ru s t Com pany of New
Jersey, Je rse y City, for consum er
credit; Dr. E rn e s t M. F ish er, form er
econom ist of th e F ed eral H ousing Ad­
m in istratio n , for real estate and m o rt­
gage finance; W illiam Pow ers, form er
a ssista n t vice p resid en t and personnel
directo r of th e N ational B ank of De­
tro it, for perso n n el and custom er re la ­
tions, an d Dr. P au l F. Cadm an, form er
p resid en t of th e A m erican R esearch
F o u n d atio n , for econom ic research.
T hese m en, and o th er m em bers of th e
staff, have divided th e ir tim e betw een
w o rk in th e field and a t h ead q u arters.
T h eir services have been m ade avail­
able to th o u san d s of b an k s th ro u g h
correspondence and inform ative b ulle­
tin s and th ro u g h p ersonal appearances
a t scores of b a n k e rs’ group m eetings,
sta te association conventions and edu­
cational conferences. In addition, th e
staff of th e W ash in g to n office has been
enlarged.
R epo rtin g to th e executive council
on b ehalf of a special com m ittee on
dues revision, R obert M. H anes, p resi­
d en t of th e W achovia B ank and T ru st
Com pany, W inston-Salem , N o rth Caro­
lina, said:
“T he p ro g ram has p erm itted th e A s­
sociation to offer m an y new services to
its m em bers and, in addition, has
g reatly increased th e scope of w ork
of a n u m b er of th e older departm en ts.
As a resu lt, th e A ssociation h as m ore
to offer b an k s th a n a t any tim e in its
history. T his effort has been en th u si­
astically su p p o rted by th e m em bers.
More th a n 1,100 new m em bers have
joined th e A ssociation since th e en ­
larged pro g ram has been p u t into
operation.
“M oreover, m em bership in th e
A m erican B an k ers A ssociation has

I O W A

N E W S

*

paid a dollars and cents profit to m em ­
b ers,” Mr. H anes declared. “E very
b an k has recovered its dues at least
tw ice over th ro u g h reductions in b ank
in su rance prem ium s negotiated by the
A. B. A. insurance d ep artm en t in th e
past four years.
“C hartered banking has never need­
ed a w ell organized and rep resen tativ e
national association so m uch as it
needs it today,” he added. “The A m eri­
can B ankers A ssociation w ith its new
d ep artm en ts and th e additional serv ­
ices now being provided by its older
divisions, is th e answ er to th e need for

strong and unified rep resen tatio n of
every bank in th e country.
“The A ssociation’s enlarged program
of services to A m erican banking has
proved sound and practical. The p ro ­
gram deserves th e support of all m em ­
ber banks both m orally and finan­
cially.”
A com plete rep o rt on th e Associa­
tio n ’s activities u n d er the enlarged
program and the details of th e dues
schedule w ill be sent to all m em bers.
In addition to Mr. H anes, those of
th e special com m ittee on dues revision
are: H a rry A. B ryant, p resid en t Par-

"YOURS IS A BROAD PROGRAM OF
CORRESPONDENT SERVICE ..
T h a t is a very n a tu ra l co m m en t for
an o u t-o f-to w n b a n k e r to m ake. F o r
o u r service is based u p o n a k n o w l­
edge o f w h a t m o st co rresp o n d en ts
desire from us. We m ak e a stro n g
effort to be useful far b ey o n d th e
m echanics o f n o rm al, ro u tin e tra n s­
actio n s. T h ere h av e develo p ed here,

o v er m an y y ears, useful fact-fin d in g
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Federal Reserve Bank of St. Louis

June 19J1

78

-•
sons Com m ercial B ank, Parsons, K an­
sas; D unlap C. Clark, president, A m eri­
can N ational Bank, Kalamazoo, M ichi­
gan; B. M urray Peyton, president, The
M innesota N ational Bank, D uluth,
M innesota; Charles E. Spencer, Jr.,
president, F irs t N ational B ank, Bos­
ton, M assachusetts, and A. L. M. W ig­
gins, president, B ank of H artsville,
H artsville, South Carolina.

IOWA

NEWS

urged as a positive check on inflation­
a ry price rises by Otto C. Lorenz, con­
sum er credit research ex p ert for the
A m erican B ankers Association.
Mr. Lorenz asserted th a t banks and
o th er lending agencies th a t provide
credit for purchases of consum ers’
goods such as autom obiles and house­
hold appliances should req u ire larger
dow n paym ents, re stric t th e num ber
of m onths over w hich rep ay m en ts are
made, and establish sim ilar lim ita­
tions on sm all in stalm en t cash loans.
He declared th a t although these vol-

Inflation Check
T hree v o lu n ta ry steps by consum er
cred it lending agencies have been

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Federal Reserve Bank of St. Louis

June 19J1

•
u n ta ry steps w ould reduce the earning
capacity of lending agencies th a t u n ­
d ertake them , th e y are necessary in
th e public in te re st as anti-inflation
m easures.
“W e are all fully aw are of the g reat
b u rst of activ ity w hich has tak en place
in in d u stry because of th e defense pro­
gram . Steel m ills are taxed to ca­
pacity, th e autom obile in d u stry has
v o lu n tarily agreed to reduce its pro­
duction of cars by 20 per cent in order
to give p rio rity to defense production
needs, and th e dem ands of w ar upon
our people are becom ing felt th ro u g h ­
out th e len g th and b read th of the
n atio n ,” Mr. L orenz asserted.
“T his w ar activ ity has resu lted in
greatly increased payrolls, increased
incomes, far and wide. P urchasing
pow er has jum ped and our people
again have cash available to buy food,
stoves, clothing, autos and household
fu rn ish in g s w hich th e y have denied
them selves for over eight long years.
Now, th e sp u rt in ability to buy is ac­
com panied already by th e fact th a t
th ere are few er goods to buy—few er
autom ibiles, few er alum inum kitchen
goods, few er everything, and w h at
happens? Up goes the price of the
available goods. T h a t’s inflation—in­
flation pu re and sim ple—inflation
caused by th e fact th a t our good peo­
ple have m ore cash w ith w hich to
buy things and less goods available
for purchase.
“If we add to th is increased cash
available, w hich is already causing in­
flation, th e purch asin g pow er devel­
oped by over-liberal consum er credit
facilities, we shall have w h at some
au th o rities fear w ill be an explosion
of prices or inflation in its w orst
form ,” Mr. Lorenz declared. “These
credit facilities m ake possible th e p u r­
chase of durable goods not otherw ise
purchaseable, durable goods w hose
production has already been curtailed
because of w ar dem ands, durable
goods such as autom obiles an d refrig ­
erators.
“L et me add th a t th e fear in inflation
is already in th e m inds of th e A m eri­
can people—already in th e ir m inds
because of th e condition of the govern­
m e n t’s finances and th e stra in p u t
upon those finances by w ar. L et me
say th a t A m ericans, having before
them the horrible exam ples of w h at
curren cy inflation did in E urope, are
today creating th e ir savings in the
form of hard, durable goods, w hich
will retain th e ir usefulness and liv­
able value regardless of w h at m ay
happen to the dollar. T h at m ay be
a very sm art th in g for th e A m erican

79

.
people to do, if inflation is u n avoid­
able, inevitable.
“B ut, it is m y opinion and th e opin­
ion of m any a u th o ritie s th a t inflation
of th e explosive, all-destructive kind
need not come. T hat, in fact, it is far
from being im m in en t if we exercise
our w its and our self-restrain t a t th e
p re se n t tim e.
“How, th en , shall we avoid inflation?
W h at are some of the th in g s we should
do to control th e forces w hich brin g
inflation about? W e can introduce
self-restrain t in th e sale of finance of
goods on tim e or th e g ra n tin g of p e r­
sonal cash loans in a n u m b er of w ays.
“F irst: W e can in sist upon h ig h er
dow n paym ents. T hat, presum ably,
w ill m ake it h a rd e r for th e public to
buy cars and tak e some of th e stra in
off th e dem and for available cars.
“Second: W e can lim it the nu m b er
of m o n th s over w hich pay m en ts are
to be m ade. If, for exam ple, everyone
w ere to go ‘h a y w ire ’ and let th e public
tak e 24 m o n th s in stead of 12 to pay for
som ething, th e n th e am o u n t of m oney
tied up w ould be alm ost doubled. In ­
stead of hav in g $6,000,000,000 o u tsta n d ­
ing, on th e n a tio n ’s consum er credit
books, we w ould have about $12,000,000,000—an increase of 100 p er cent—
an increase w hich, at th e p re se n t tim e,
w ould be b e tte r tu rn e d to th e purchase
of defense bonds.
“Third: W e can control the am ounts
g ran ted for p ersonal or cash loans by
re stric tin g th e term s of repaym ent.
F o r exam ple, a recen t discussion on
th e p a rt of m y colleague on th e re ­
search staff seem s to indicate th a t a
m axim um of 15 m onths for rep ay m en t
should be considered a t th e p resen t
tim e.
“T hese controls are positive—th ey
w ill definitely cu rta il pu rch asin g

IOWA

NEWS

•

pow er in certain areas and so lessen
th e dem and for certain durable goods.
B ut these controls m u st n ot be applied
too h arsh ly or th ey w ill have th e op­
posite effect of curbing inflation. Too
h a rsh a stiffening of credit term s m ay
b rin g about th e v ery inflation our
econom ists in W ashington fear.
“You m u st realize th a t too h arsh a
cu rtailm en t of credit term s m ight
frig h ten our durable goods m anufac­
tu re rs into an ticip atin g too g reat a
reduction in dem and. T hey would,
th erefore, und erestim ate th e num ber
of cars, for exam ple, w hich should be
produced and so create a scarcity of
goods and an inflationary force w hich
w ould be even w orse th a n th e one we
are try in g to avoid.
“We need to store up reserve
stre n g th at th e p resen t tim e,” Mr.
L orenz asserted. “W e should re stra in
our credit facilities now so th a t if, as,
and w hen a post-w ar depression h its
us, our people will not find them selves
in an over-borrow ed condition. We
m u st lay up enough stren g th to nurse
th e w eakened borrow ers th ro u g h the
depression period. Most im p o rtan t of
all, we m u st be ready then, not now,
to loosen up on our dow n paym ent re ­
quirem ents, to lengthen our term s, to
m ake it possible for our people to buy
on g reatly reduced incom es and so
keep th e w heels of in d u stry tu rning.
“By so doing, we shall elim inate th e
necessity for governm ental pum p
p rim ing and relief projects w hich have
proved so costly and so futile on th e

whole.
In d u stry needs a different
k ind of consum er purchasing pow er
th a n governm ent doles to s ta rt itself
out of a depression period. Consum er
credit facilities w hich you b ankers can
and m u st provide at th a t tim e are a
far b e tte r in stru m e n t to prim e th e
pum p,” he declared.
“Then, too, by exercising re stra in t
a t th e p resen t tim e, you w ill actually
im prove th e financial condition of
some m erch an ts and dealers in your
com m unity w ho m ay be offering con­
sum er credit term s w hich invite b an k ­
ru p tcy even in a boom period. Com­
p etition am ong some auto dealers, for

Fidelity & Surety Bonds
Blanket Bonds
Burglary & Forgery
Insurance

☆

T
Iow a’s L argest B u sin ess T raining School

HE keen executive equips his

clerical force

with G-F Goodform

chairs of aluminum.

Many banks, 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. FENTON, President

AmericanInstitute of Business
DES MOINES
10th and Grand
Tel. 4-4203

He knows it's

good business to keep his office help
comfortable and relaxed.

NATIONAL SURETY
CORPORATION
VINCENT CULLEN

KOCH BROTHERS

President

FRUITERS - BOOKBi nOE RS - OFFICE OUTFITTERS
STRTIOIIERS - B USI I) ESS ÎÏIRCHinES

G R A n D

RVEI1UE

AT

FOURTH

N orthw estern Banker

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

June 19^1

80

r
home
Jj
FEDERAL SAVINGS
AND LOAN ASSOCIATION
OF DES MOINES
— ou r F ed erally In su red u p to
$ 5 ,0 0 0 savin gs accou n ts are
th e so lu tio n to you r in v e st­
m en t and trust p rob lem s.
C urrent d iv id en d 3F4 p ercen t.

Statement on request.
414 Sixth Avenue
Des Moines, Iowa

New Bank Film

J lo tu e A ^ t G o d t
Our policy provides a maximum
assessment of 2 x/i % in Zones
One and Two—and 3 x/i% in
Zone Three (Western Iowa).

Hawkeye Mutual Hail
Insurance Association
Carver B ld g.

F ort D o d g e, Iow a

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

O ldest and L argest
in Des M oines
411 6th Ave.

Dial 4-7119

ELMER E. M ILLER
Pres, and Sec.

HUBERT E. JAM ES
A sst. Sec.

M em ber Federal Home Loan Bank System

S AF E T Y IN
INVESTMENT
Accounts Insured Up To
$5,000.00

Federal Savings
and

Loan A ssociation
Or S t . P a u l

350 Cedar St.

St. Paul, Minn.

( ] 4 £ ± 1 L in C j
B a n k e r s

In response to a long felt need for
an educational film d em onstrating the
m ost effective m ethods of selling bank
services to custom ers, The Todd Com­
p any of Rochester, New York, an ­
nounces th a t it has recen tly com pleted
a sound-slide film entitled “Selling
Your B ank.”
The film is devoted to the sale of
special checking accounts by bank offi­
cers and employees, b u t has been so
treated th a t it applies w ith equal effec­
tiveness to th e sale of all types of spe­
cial b ank services. It has been dis­
trib u te d to Todd sales offices at cen­
tra l points th ro u g h o u t th e co untry
and is im m ediately available for use
by b anks w ho req u est it.
A t each show ing a m im eographed
sh eet listing custom er benefits ob­
tain ed by a special checking account
service, a suggested sales talk for use
by b ank personnel, and a p rin ted fold­
er sum m arizing th e principal topics
of th e film are distrib u ted free of
charge to all b ank em ployees p resen t
a t th e showing.
The film itself is en terta in in g as well
as in structive, according to J. M.
Lewis, m anager of the com pany’s b ank
supply division. It presen ts a typical
group of b ank staff m em bers and
show s how easily and effectively th ey
can tra in them selves to b rin g new
business and increased earnings to
th e ir b an k by selling th e b a n k ’s serv ­
ices. Two cardinal principles of sales­
m anship are em phasized th ro u g h o u t
the film. The first is th e im portance
of looking a t th in g s from th e custom ­
e r ’s po int of view; and the second is
th e w isdom of describing ju st one big
advantage of the special checking ac­
count plan, or of any o ther plan th a t
happens to be u n d er discussion. The
film m akes clear th a t th is advantage
should be the p articu lar th in g —presI f y o u a re a t y p i c a l s u c c e s s ­
f u l b a n k e r , y o u h a v e n ’t m u ch
tim e to w r ite a d s y o u r s e lf .

£ rl ( j l c £ ±

L i k e

D. R. W e s s l in g ,

exam ple, is so com petitive th a t cars
are sold to people w ith incom es so u n ­
certain and so sm all th a t trouble, seri­
ous trouble, m u st ensue. By discour­
aging excessive credit facilities, you
b an k ers w ill do m uch to m ain tain a
b e tte r presen t m a rk e t for th e retailer.
“But, by far th e m ost im p o rtan t
reason for control of consum er credit
facilities at th e p resen t tim e is the fact
th at, u n d er certain conditions, these
facilities m ay lead to an explosive in ­
flation of prices.”

the

S t y l e

of

Wessling
es

N orthw estern B anker

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

Copy

pr e sid e n t

June 19JI

¿ ß l/\o Lizes ,

o cva

tige, economy, safety, or convenience
—in w hich th e custom er is interested.
The com plete show ing takes about half
an hour.
“D uring recent y ears banks have un­
dergone m any im p o rtan t changes and,
am ong o ther things, have become in ­
creasingly sales-m inded,” Mr. Lewis
stated in explaining th e reason for the
m aking of th e film. “A n u m ber of
y ears ago, before th e B ank H oliday of
1933, banks offered m any g ratu ito u s
services to custom ers m erely for the
purpose of creating good-will. N ow a­
days all th a t has changed, and th e a tti­
tude of th e b an k er has changed w ith
it. Today th e b an k er realizes th a t in
order to establish profitable relations
w ith his custom ers it is necessary for
his personnel to sell th e services w hich
his in stitu tio n offers. C ustom ers w on’t
use such services unless th ey are told
about them , and telling about them
requires salesm anship. My com pany
has prep ared th is film, ‘Selling Your
B ank,’ to show b ank officers and p e r­
sonnel how to m ake th e ir own posi­
tions m ore secure by selling th e serv ­
ices w hich th e ir banks offer. W herever
th e film has been show n it has been
received w ith enthusiasm , and I am
sure th a t d uring th e m any hu n d red s
of tim es it w ill be exhibited in the
fu tu re, th e response w ill be as in te r­
ested and spontaneous as it has been
in the p ast.”
The film is now in th e hands of re p ­
resen tativ es of The Todd Com pany at
cen tral points th ro u g h o u t th e co u ntry
and w ill be show n to banks on re ­
quest. B ankers in terested in seeing
it, Mr. Lew is stated, should get in
touch w ith th e Todd sales office in
th e ir city or w rite directly to th e Ad­
vertisin g D ep artm ent of The Todd
Company, 1150 U n iversity A venue,
Rochester, New York.

Push Publicity Program
The In v estm en t B ankers Associa­
tion of A m erica has determ ined to go
ahead full steam w ith its public in ­
form ation program , it w as disclosed
w ith th e ap p o in tm en t of four addi­
tional m em bers to the com m ittee th a t
is directing th e national activity
launched ju st a y ear ago.
In view of th e critical tim es, how ­
ever, all possible econom ies are to be
observed in th e conduct of th e pro­
gram and all plans w ill be keyed to
the rapidly sh ifting conditions in n a­
tional affairs, it w as stated by E m m ett
F. Connely of D etroit, p resid en t of th e
Association.
New com m ittee m em bers added “in
order to increase m anpow er in th e
over-all direction of th e program ,” are:
Charles R. B lyth of San Francisco,
presid en t of B lyth & Co., Inc.; A lbert

-k

*

81
H. G ordon of N ew York, p a rtn e r of
K idder, P eabody & Co.; E d w ard Hopkinson, Jr., of Philadelphia, p a rtn e r of
D rexel & Co.; and Cloud W am pler of
Chicago, p resid en t of Stern, W am pler
& Co., Inc.

\
N a t i o n a l B a n k o f W a t e r l o o .........................
N a t i o n a l S u r e t y C o r p o r a t i o n .......................
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 r t h w e s t e r n N a t i o n a l L if e I n s u r a n c e
C o m p a n y ............................................................
O
O m a h a N a t i o n a l B a n k .....................................

74
79
58
77

FO R

S A F E DEPOSIT
BOXES

19

P

Index
Advertisers
A

A lle n W a le s A d d in g M a c h in e C o r p ...........
A llie d M u tu a l C a s u a l t y C o ...........................
A. C. A lly n a n d C o m p a n y ..............................
A m e r ic a n I n s t i t u t e o f B u s i n e s s ................
A m e r ic a n N a t i o n a l B a n k a n d T r u s t C o..
A n c h o r C a s u a l t y C o.........................................
C. S. A s h m u n C o m p a n y ..................................

83
36
32
79
68
58
54

B

P a in e , W e b b e r a n d C o m p a n y ......................
P h i l a d e l p h i a N a t i o n a l B a n k .......................
P o l i c y h o l d e r s ’ N a t i o n a l L if e I n s u r a n c e
C o m p a n y ............................................................
P u b lic N a tio n a l B a n k a n d T ru s t C om ­
p a n y — N e w Y o r k ............................................
R
E . H . R o llin s a n d S o n s .....................................
R u r a l C r e d it B o a r d — S o u th D a k o t a .........
S
S t. P a u l F e d e r a l S a v in 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 ty C o...............
S to 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 . .
U
U n ite d S t a t e s C h e c k B o o k C o m p a n y ...
U n ite d S t a t e s N a t i o n a l B a n k .....................

■54
26
34
37
31
46

A ll or any part of 500
boxes— 250 in each stack
8 different sizes, m ajority
small, and some large.
—

54
52
53

Send inquiries to
43
38

Box 500
Northwestern Banker
527 Seventh Street
Des Moines, Iowa

V

V a lle y S a v in g s B a n k . .

w
C h a r le s E . W a l t e r s C o m p a n y ..................
J a y A. W e l c h .........................................................
W e s s l i n g S e r v ic e s ...........................................
W e s t e r n M u tu a l F i r e I n s u r a n c e C o ...........

SALE

36

41
68
80
35

B a n k e r s T r u s t C o m p a n y .............................62-63
A. G. B e c k e r a n d C o m p a n y ............................ 32
c
C e n tr a l H a n o v e r B a n k a n d T r u s t C o.. . .
C e n tr a l N a t i o n a l B a n k a n d T r u s t C o.. . .
C ity N a t i o n a l B a n k o f C l i n t o n ..................
C ity N a t i o n a l B a n k a n d T r u s t C o m p a n y ,
C h ic a g o .............................
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 ...............................................
C o n t i n e n t a l N a t i o n a l B a n k o f L i n c o l n ..

70
3
64
76
72
43

D

D a v e n p o r t a n d C o m p a n y .............................40-76
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 s M o in e s B u ild in g , L o a n a n d S a v in g s
A s s o c ia tio n ....................................................... 80
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 ......... 46
D r o v e r s N a t i o n a l B a n k ................................... 75
E

E m p ir e N a t i o n a l B a n k a n d T r u s t ............ 50
E m p l o y e r s M u tu a l C a s u a l t y C o .................. 34
E p p le y H o t e l s C o................................................ 42
F
F a r m e r s M u tu a l H a i l I n s u r a n c e C o.........
F e d e r a l I n t e r m e d i a t e C r e d it B a n k .........
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 s s n .. .
F i r s t N a t i o n a l B a n k o f t h e B la c k H i l l s .
F i r s t N a t i o n a l B a n k o f 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 f M a so n C i t y .........
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 —-St. L o u i s ................
F i r s t N a t i o n a l B a n k — St. P a u l .....................
F i r s t N a t i o n a l B a n k — S io u x C i t y ...........
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 o f M in ­
n e a p o lis ..............................................................
F i r s t W is c o n s in 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 , T h e .......................................

34
29
80
47
78
69
40
73
51
65
48
24
7

We have loaned . .
and are loaning
MILLIONS of DOLLARS

G
G e n e r a l M o to r s A c c e p ta n c e C o r p o r a tio n 28

to speed the

II
H a w k e y e M u tu a l H a i l I n s u r a n c e A s s n .. 80
H o m e F e d e r a l S a v in g s a n d L o a n A s s n .. 80
H o m e I n s u r a n c e C o m p a n y ............................ 5

N a tio n a l Defense Program

I
I o w a - D e s M o in e s N a t i o n a l B a n k a n d
T r u s t C o m p a n y ................................................ 84
I o w a - N e b r a s k a B a n k D i r e c t o r y ................ 25

and stand ready to extend th e fullest coop­
eration to banks th ro u g h o u t the country
in financing G overnm ent defense orders.

J

J a c k l e y a n d C o m p a n y ....................................... 30
J a m ie s o n a n d C o.. ................................................ 56
Iv
K a lm a n a n d C o m p a n y ..................................... 56
K o c h B r o t h e r s ..................................................... 79
L
G e o rg e L a M o n te a n d S o n ................................
L e s s i n g A d v e r t i s i n g C o..................................
L iv e S to c k N a t i o n a l B a n k —C h i c a g o . . . .
L iv e S to c k N a t i o n a l B a n k — O m a h a .........
L iv e S to c k N a t i o n a l B a n k — S io u x C ity . .

4
70
71
41
44

MANUFACTURERS
TRUST COMPANY
PRINCIPAL OFFICE
55 BROAD STREET, NEW YORK
67 C o m plete B a n k in g O ffices

in

G rea ter N e w Y o r k

M

M a l m s t e d t ’s .........................................................
M a n u f a c tu r e r s T r u s t C o m p a n y ...................
M e r c h a n ts M u tu a l B o n d in g C o ..................
M e r c h a n ts N a t i o n a l B a n k ..............................
M id la n d N a t i o n a l B a n k a n d T r u s t C o ...
M in n e s o ta C o m m e r c ia l M e n ’s A s s n ...........

56
81
76
2
55
57

__Member Federal Deposit Insurance Corporation.

N orthw estern Banker

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

June VdM

82

IN THE DIRECTORS' ROOM
i

Smack!

Finesse

Hard-boiled d rill serg ean t to m arried
recruit: “B u tto n y e r coat!”
R ecru it (absently): “Yes, dear.”

Mrs. W.: “N orah, w as the butcher
im pudent again w hen you telephoned
your order this m o rn in g ?”
N orah: “Sure, b u t I fixed him this
tim e. I says, ‘W ho th e hell do you
th in k y o u ’re talk in g to? T his is Mrs.
W. talking!’ ”

Feet Tired?
Sally: “I w as out last n ig h t w ith a
perfect stra n g e r.”
Betty: “W here did he h ail from ?”
Sally: “A cute yellow ro a d ste r.”

Copy Cats
L ittle Leona: “Mama, do dogs get
m arried ?”
M other: “C ertainly not, dear.”
Leona: “T hen w h at m akes old Towser grow l so a t Bessie w h en th ey are
eatin g th e ir b re a k fa st? ”

Strong Woman
B u rstin g w ith satisfied pride, Mrs.
N ew lyw ed carefully cut th e cake on
the table and placed a handsom e slice
on h e r h u sb a n d ’s plate.
“I m ade it all m yself darlin g ,” she
said. “My first cake.” A nd sam pling
it w ith g rad u ally d im inishing e n th u ­
siasm , he said: “Did you lift it out of
the oven all by yourself, d ear?”

Boy: “A nd now, doctor, th a t I ’ve
told you I am going to m a rry Anne,
th e re ’s one th in g I w a n t to get off
m y chest.”
Doctor: “W h at is it, m y boy?”
Boy: “A tattooed h e a rt w ith th e
nam e Mabel on it.”

Thank Goodness!
“Now don’t w o rry about y o u r wife.
You’ll have a different w om en w hen
she gets back from th e hospital.”
“T h a t’ll be swell, doc. B ut w h at if
she finds ou t?”

Looked Natural
A contest w as going on am ong th e
passengers on th e steam er. T hey w ere
try in g to see w ho could m ake th e
w orst face.
“Stop,” said th e judge, “Mr. Crowley
w ins.”
“B ut I w a sn ’t playing,” said Mr.
Crowley.

Daze and Daze
Helen: “Oh, how I h ate him —h ate
him!”
Jam es: “A nd how long has this
rom ance been going on?”


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

“D on’t be dow nhearted,” said the
stew ard to th e suffering passenger.
“Seasickness has never killed any
one.”
“D on’t say th a t,” m oaned the stric k ­
en one, “it’s only the hope of dying
th a t has kep t me alive so far!”

She: “Say, it’s p ast m idnight. Do
you th in k you can stay here all
n ig h t?”
He: “Gosh, I ’ll have to telephone
m o th er first.”

Ruined

One Way

Je w eler’s Custom er: I w an t to leave
m y w atch to be repaired. The m istake
I m ade w£S in dropping it.”
Jew eler: “No, sir, the m istake you
m ade w as in picking it up again.”

“H urrah! Five dollars for m y latest
sto ry .”
“C ongratulations, young man! From
w hom did you get th e m oney?”
“F rom th e express com pany. They
lost it.”

Wrong Number
“Sandy, now th a t w e’re engaged,
y o u ’ll give me a ring, w on’t you?”
“Of course I will, darling-—w h a t’s
y o u r phone nu m b er?”

His Mark

Off With the Old

N orthw estern B anker

Going Any Moment

June 19J1

S helter Barber: “H av en ’t I shaved
you before, sir?”
B ritish V eteran: “No, you are m is­
taken. I got th a t scar a t D unkerque.”

Shuffling Along
He: “D ancing is in m y blood, you
know .”
She: “Your circulation m u st be
bad, it h a sn ’t reached y o u r feet!”

High Finance
D raftee: “Can you lend me a dol­
lar? I don’t get paid u n til tom orrow .”
V eteran: “Sorry. I h av en ’t a cent.
I w as paid y esterd ay .”

Sounds the Same
She: “W hat heavenly sw ing—le t’s
dance.”
He: “T h at isn ’t sw ing—the w aiter
ju s t dropped our d in n er.”

Smart
“Now, dear,” said th e visitor, “if
y o u r m o th er gave you a large apple
and a sm all apple and told you to give
one to yo u r b ro ther, w hich w ould you
give h im ?”
“Do you m ean m y big b ro ther, or
m y little one?” w as th e reply.

\
À

Willing

x

A Half-Truth
H usband: “H av en ’t I alw ays given
you m y salary check on the first of
every m o n th ?”
Wife: “Yes, b u t you never told me
you got paid on th e 1st and 15th, you
em bezzler!”

■A
4

-r

Clean
Dumb: “W e’re going to give the
bride a show er.”
D um ber: “Count me in. I ’ll b ring
the soap.”

Tactics
“Com pany attention!” baw led th e
drill serg ean t to th e aw kw ard squad.
“Company, lift up yo u r left leg and
hold it stra ig h t in fro n t of you.”
By m istake one m em ber held up his
rig h t leg, w hich b ro u g h t it side by side
w ith his neig h b o r’s left leg. “And
w ho is th e galoot over th ere holding
up both legs?” shouted th e hardboiled
sergeant.

■4

<r

Move Over, Silas
Silas w as becom ing v ery h a rd of
h earin g and upon th e advice of a
friend he consulted a doctor.
Bill: “W hat did th e doctor tell you
to do?”
Silas: “He told me I w ould have
to quit d rin k in ’ or become stone deaf.
I been a th in k in ’ and I like w h a t I
been a d rin k in ’ so m uch b e tte r th a n
w h at I been a h e a rin ’ th a t I th in k I ’ll
ju st keep on d rin k in ’.”

i*

4
t

WHEN EVERY MINUTE COUNTS UNDER PRESENT DAY STRESS
SPEED YOUR WORK WITH AN ALLEN WALES
More than 100 models available for every type of
business and requirement. More than 400 distribut­
ing points in U. S. A.
Indorsed by thousands of users sales have increased
more than 600 percent in the past 6 years.
Our nearest agen cy will be glad to let you try
a machine —without obligation — telephone them
or write to us.

ALLEN WALES ADDING MACHINE CORPORATION
444 Madison Avenue, New York, N. Y.
SALES AND SERVICE IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES

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

I'li'ttilli to

ÌI I

SPECIAL CREDIT DEfllAnDS
With National Defense work gathering headway, unusual credit
demands may be encountered by Iowa Banks serving manufacturing plants
in their communities.
As opportunities are presented we shall be pleased to co-operate
with Iowa banks to meet the credit requirements of their customers for
any sound purpose.
This co-operation is offered as a helpful, constructive service to our
correspondent Banks and their customers. In no way do we wish to
compete for business belonging to local Banks.
W e would welcome an opportunity to
discuss with you needs of customers who require
larger credit lines than you can extend.

& TRUST compunv
M e m b e r F e d e r a l D e p o s it In su r a n c e C o rp o ra tio n


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