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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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C O N V E N T IO N S Iowa Junior Bankers ~ page 18 Montana - page 22 South Dakota - page 5 44 4 4 .4 < 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. W e invite a c -4 4 counts from bankers desiring the best. ^r< < ■< < < -^ A CEDAR RAPIDS BANK CEDAR RAPIDS ""I. SERVICING ALL IOWA. M ERCH A N TS 't NATIONAL BANK OFFICERS 4 -4 ^ < ?F. <£ < 3 » r.Jt y 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 sp ¥$• Cedar R apids Iow a 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ( 3 & m p t e le (O W E S P O H E JT d Jh e h a n d lin y S E R V IC E every corre sp o n d e n t item with e ^ id e n c y , c o u r te s y a n d d i s p a t c h hias r e s u lte d in . . . oar serviny a n ever-increasiny n u m b er ojb correspondent a c c o u n ts . ‘ ‘ I O W A ’ S I F R I E N D L Y B A N K ’ ’ C E IT R A L IA T 1 0 IA L BASK A O T R U S T COMPANY of 2)ed Mcuned- F I F T H A V E N U E Member B E T W E E N Federal Deposit W A L N U T Insurance A N D L O C U S T Corporation N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 lo ss 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 tion's le a d in g b u sin e s s in stitu tion s u se LA MONTE S a fe ty in g P ap er for this p u r p o se , a s w e ll a s for ch ec k s Your P rin ter or L ith o g r a p h e r w ill g l a d l y 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 of h u m a n 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 prod uct h a s im p ro v ed b een th rou gh E LA M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s te a d ily re se a rch O N TE & SO N b y m o r e th a n 75% c f th e n a b a n k s a s w e ll a s c o r p o r a t io n s fro m coast o u tsta n d to c o a s t . » » a n d e x p la in h o w y o u c a n h a v e y o u r o w n Trade M ark or in d iv id u a l d e s ig n in co rp o ra ted in th e c h e c k -p a p ie r its e lf. TH E SN U F F M AK ER S SON T 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 insurance protector o f American Homes and the Homes o f American Industry. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 19J1 10 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Northwestern Banker https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 — te ll th e m h o w D o u g la s -G u a rd ia n b r i n g s th e w a re h o u s e to th e in v e n to ry to p ro v id e A - l C o l l a t e r a l fo r n e e d e d m o n e y on a t 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. DOUGLAS-GUARDIAN WAREHOUSE CORP. Nation-wide Field W arehousing Service Suite 1104A, 100 W. Monroe St., Chicago, 111. 118 No. Front St., New Orleans, La. A tla n ta , Ga. E a sto n , Md. 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 i s ■— < s'" gaf* t Ä % tiS »* ' W* ^ , 311* iJ . .... '" ..... . ... • si, * " ■^ ■ •• W *W I » „» ; *•< é ^ % ■■' : : : . ■ --Ä -- T*?! s4w v , >»: « :;5*»-> m “1 * f t V, « * * M l * * ; sf, •■* ' %• - I h * v> * & ? J k * iS ^ 3 Comparison in miles of hard-surfaced roads 1920 1940 © i§ 860 miles ju sJQ (usj@) (u s jQ (usj@) (usj@ @ 0 (usj([ 8503 miles (usj@) (usj@ Comparison of resources Bankers Trust Company - ■ . ' ’ », ^ / i{ V , V „ 8 ' ’ ** 1 '* s* ' ■ ' * M tf ñ?, ■ im ' . •' ^ ■ B rw - ' ' >•- / . f ■- ^ W Jd? ** ** V r/f 1920 c* c* & & c $ $ q> $ 3 1940 ò w " *' ' :| ff w v v v ^ v v v v w v v v 23,399,000 6th and Locust Des Moines https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 , 700,000 , ; '* ^ f^ ^ 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 . https://fraser.stlouisfed.org 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 N orthw estern B anker https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 N orthw estern Banker https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 N orthw estern Banker https://fraser.stlouisfed.org 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 N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G eared to Save T im e — O ften a F u ll Day F a st S erv ice C o u n ts T o d a y , W h e n A ll E y es A re T u rn e d on B u sin ess E x p a n s io n a n d th e N a tio n a l D efen se P ro g r a m Many progressive bankers have found by experience that the highly trained staff and the specialized facilities of the Drovers —do speed collections. They appreciate the immediate personal attention which each item and collection receives under the close, personal attention of an executive. Notification of an unpaid or returned item, is prompt. Remitting of collections to banks not carrying accounts here, is geared to save time— often a full day. We Invite You to Use Drovers Service for all your Chicago Items and Collections W ÊÊm m Êtm ÊÊÊÊÊÊÊÊÊm m DROVERS NATIONAL BANK DROVERS TRUST & SAVINGS BANK U N I O N S T O C K Y A R D S , C H I C A G O I S S Ä ä ll Members, Federal Deposit Insurance Corporation 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. OM AHA 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 Home Office VALLEY BA NK BUILDING Des Moines, Iowa • O u t - o f - T o w n R a n k s • O ut-of-tow n banks and bankers will find here This is Iowa’s oldest surety company. com plete banking fa cilities for prom pt and A progressive company with experi enced, conservative management. We are proud of our hundred and fifty bank agents in Iowa. economical handling of accounts in Chicago. We would appreciate the opportunity of serving you. To be the exclusive representative of this company is an asset to your bank. • C # it y N a t io n a l W rite to AI V D T R U ST E. H. WARNER 2 0 8 S O U T H Secretary and Manager C O M PA N Y B of C h ica go L A S A L L E (Member Federal Deposit Insurance Corporation) N orthw estern B anker https://fraser.stlouisfed.org 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 fac ilities. A co n n e ctio n w ith th is in s titu tio n enables each co rresp o n d e n t to u tiliz e th ese sources o f in fo rm a tio n fo r h im self and fo r his custom ers. H e can th u s b ro ad en and reinforce th e scope o f h is b a n k ’s service to h is co m m u n ity THE NO RTH ERN TRUST COMPANY 5 0 S O U T H LA SALLE S T R E E T , C H I C A G O Member Federal Deposit Insurance Corporation •k N orthw estern Banker https://fraser.stlouisfed.org 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 "4 'T u a -'A), dr zà i* ï ; I'll trt Vu -111VJ sfltit toA N A l LFÌ Rrir„ ,Urrn In v estm en t Service The experience of seventy^seven years and immediate contact with principal cities make the services of our Bond Departm ent of particular value to correspondent banks* Inquiries by telephone, wire, or mail are invited, and quotation sheets will be mailed on request* T e le p h o n e F ran klin 6 8 0 0 —L D 9 2 -9 3 T elety p e C G O 9 8 7 BO N D DEPARTM ENT The First National Bank o f Chicago N orthw estern B anker https://fraser.stlouisfed.org 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