Full text of The Northwestern Banker : June 1943, Forty-Eighth Year, Number 671

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FOOD WILL WIN
Bankers A re H elp in g Farm ers on the H om e Front
See Page 12

South Dakota - Minnesota - North Dakota - Convention!

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Federal Reserve Bank of St. Louis

Pages 1 7 - 1 8 - 2 0

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K E E P IN G

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S T E P

For sixty-two years this bank has kept step with the financial
growth of Iowa and the Middle West, building up an organiza
tion which can take emergencies in its stride.
Banks and their customers, having business in this area, are
invited to use the facilities of this bank for the efficient handling
of their items.

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A CEDAR RAPIDS BANK

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RAPIOS

SERVICING ALL IOWA,

MERCHANTS
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NATIONAL BANK
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Federal Reserve Bank of St. Louis

James E. H am ilton , Chairman
S. E. Coquillette, President
H. N. B oyson , Vice President
Roy C. F olsom, Vice President
M ark J. M yers, V. Pres. & Cashier
George F. M iller, V. Pres. & Tr. Officer
M arvin R. Selden , Vice President
F red W. S m it h , Vice President
John T. H amilton II, Vice President
R. W. M an att , Asst, Cashier
L. W. Broulik, Asst. Cashier
Peter B ailey , Asst. Cashier
R. D. Brown , Asst. Cashier
0. A. K earney , Asst. Cashier
Stanley J. M ohrbacher, Asst. Cashier
E. B. Zban ek , Building Manager

• --------------

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No“

OFFICERS

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

E W fi& T B K - * " - —

THAT White Spot MAKES AN
ALTERED CHECK Useless

Look what happens when anyone attempts to

where, and no other sensible person, would

alter either the face or back o f any check writ

think o f cashing or endorsin g such a dis

ten on La M onte Safety Paper!

figured check. » » La M onte Safety Papers

A g l a r in g

show s up instantly — ines

have become widely recognized as the stand

capable evidence that the check has been

ard o f safety in check protection. Today they

tam pered w ith ! T h is,

are used by over 7 5 % o f America’s leading

o f co u rse , m akes a

banks — and outstanding industrial corpora

check

for

tions from coast to coast. » » To appreciate

no bank t e lle r an y-

the amazing effectiveness o f La M onte Safety

w h it e

spo t

W ORTH LESS—

Paper in preventing fraudulent alteration,
make the three simple tests illustrated at the
left. That shows what forgers and counter
feiters are up against when you ask your
printer or lith og rap h er fo r "ch eck s on
La M o n te Safety Paper.”
— or use an Eraser as gingerly
as you please — again that tell
tale; WHITE
w h i t e SPOT
s p o t shows up !

— or try to scratch it off with a
penknife. N o use — there’s that
w h i t e s p o t , again!

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Federal Reserve Bank of St. Louis

& f e ii/ n m

GEORGE LA MONTE & SON, Nutley, N. J.

A T E A M FOR
nected with civilian defense — so impor
tant to the nation at war.
What’s more, they are patriotically
cooperating with our company in its
modest contribution to financing the war
through the Ninetieth Anniversary War
Loan campaign in the following way:
All new gross premiums collected on fire
and other policies that the Home ivritesfor
the balance o f the year are being invested
in War Loan Bonds. These purchases are
OVER and ABOVE the normal govern
ment bond purchases which the Company
is continuing to make.
That’s American teamwork— and it’s
cooperation that can only spell Victory!

From the split-second timing of gridiron
strategy to the perfect precision of planeground force coordination, efficient team
work is an outstanding American char
acteristic.
And it’s a characteristic that American
property insurance agents have demon
strated in this national emergency— in
more ways than one. For instance, they
are bringing sound insurance protection
to American homes and American in
dustry, and are maintaining efficient
service to policyholders, in spite of many
handicaps, such as shortage of help and
curtailment of transportation facilities.
And this in addition to many duties con

ATHE HOME A
N E W
FIRE

★

AU TOMOBILE

Y O R K
★

MARINE

INSURANCE

Ninetieth Anniversary Year

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Federal Reserve Bank of St. Louis

ò
‘ ‘ One (1) withdrawal per week, without
charge, may be made on accounts with bal
ances over $500. Additional withdrawals
may be made at any time, but each is sub
je ct to a charge o f 10 cents. Each with
drawal on accounts with balances o f $500
or less is subject to a charge o f 10 cents.
‘ ‘ Savings accounts closing within a period
o f nine (9) months from opening, or drawn
below $5.00 balance are subject to a serv
ice charge o f $2.00.
‘ ‘ Inactive accounts with balances o f $100
or less inactive, for a period o f six (6)
months are subject to a service charge o f
$1.00 each six (6) month period the account
remains inactive.
‘ ‘ Out-of-town checks deposited to savings
accounts are handled at the exchange rate o f
one-tenth o f 1 per cent with a minimum o f
10 cents each. The account will be subject
to charge fo r any exchange,
‘ ‘ No interest, is paid on, savings ac
counts. ’ ’

"Thanks for your Cooperation"
The following letters were received from Northwestern Banker
readers. Your views and opinions on any subject will be gladly
published on this page.

Wants Northwestern Banker in
North Africa
"W o u ld it be at all possible for you to
mail overseas the N o r t h w e s t e r n B a n k e r
and also the U n d e r w r it e r s R e v i e w ?
"O n e of our employes is now in North
A frica and we received a letter from him
asking that we find out i f it would be at
all possible for him to receive these maga
zines. He states that if they were sent to
him direct from you, he would receive them
much better than if we were to mail them
to him. Please advise. ’ ’
W. H. B r o w n , Cashier, Tri-County
Bank, Zearing, Iowa.
In replying to Mr. Brown, Ralph Moor
head, associate publisher, said, “ I have
taken this up with the officials o f our local
post office and they tell me that it is im
possible for any publication to send regular
subscriptions to our armed forces abroad. One
reason is that transportation needs demand
priority on food and ammunition rather than
on reading material, and secondly, the post
office has no way o f knowing just how per
manent may be the address o f any individual
soldier.
“ I presume, furthermore, that all atten
tion is given to first class mail in preference
to second class and magazine matter.
‘ ‘ Thank you for your inquiry, however,
and we are sorry that we cannot take care
o f your employe in North A frica .”

"An Outstanding Publication"
‘ ‘ I read the splendid article in the May
issue of your good publication, the N o r t h
w e s t e r n B a n k e r , about 'Y ou r Customers
Look at Y ou .’ I congratulate you on an
especially fine piece of work. I have shown
not only the article but also the N o r t h
w e s t e r n B a n k e r to some of my associates
and they agree with me that it is good.
" I am quite impressed by the job you
are doing with the N o r t h w e s t e r n B a n k e r ,
and in speaking with a representative of

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Federal Reserve Bank of St. Louis

one of New Y ork ’s banking publications, a
newspaper, he said that the N o r t h w e s t e r n
B a n k e r is one o f the outstanding banking
publications of the country. ’ ’
J o s e p h B a m e , Manager o f Adver
tising, The Commercial National
Bank and Trust Company o f New
York, 46 Wall Street

Service Charges Are Higher
in Florida
" A m pleased to receive the N o r t h w e s t
B a n k e r regularly. I assure you that I
find much o f interest in every issue.
" I am especially pleased to learn that
through the cooperation of the State Bank
ing Department and the State Banking
Board the Iowa banks have been able to
get together on a uniform schedule of serv
ice charges.
This schedule seems most
equitable towards the customers.
‘ ‘ Am taking the liberty o f enclosing here
with three folders covering the service charge
schedule o f the various forms of accounts
carried by our banking group here in Miami.
You will note that our schedule is much more
drastic and we do live up to it most re
ligiously here. Needless to say it brings us
a handsome source of revenue.
‘ ' There is considerable activity here due
to the fact that we have a great number
of service men here, together with the ex
tension of airports, etc.
This has also
created a lot of activity in real estate— espe
cially residences. ’ ’
C l a r e n c e S. R y e , Vice President
Little River Bank and Trust Com
pany, Miami, Florida
ern

E ditor’s N ote: The following are the
service charges used by Miami banks:
‘ ‘ Savings accounts may be opened with
any amount as low as $5.00. Deposits may
be made as often as the depositor wishes,
without charge. Withdrawals may be made
at any time.

" W e wish to thank you for all o f your
cooperative assistance and help in making
the meeting of Group 6 a success. We have
the feeling that all of the visitors had a
good time and a very profitable meeting.
At least we Warren county banker folks
feel that we were well repaid for all o f our
efforts and tried to make things go, and
hope that some day we may have the priv
ilege of having Group 6 in our city again.
"W ith all kind regards for you and
your staff. ’ ’
W. N. G r a n t , Vice President
Peoples Trust and Savings Bank
Indianola, Iowa

No General Convention
Ottmar A. Waldow, comptroller, the
National Bank of Detroit, and presi
dent of the National Association of
Bank Auditors and Comptrollers, has
announced that because conditions of
travel, due to war times, have not
materially improved since 1942, and
because of the serious shortage of ad
ministrative men in banks and the con
sequent difficulty for the members ■to
leave their positions, the executive
committee decided to follow the prece
dent of 1942 and not hold a general
convention.
However, an abbreviated annual
meeting will be held in Detroit, Michi
gan, September 24, 1943, to elect
officers and to transact such other
business as would ordinarily come
before such a meeting.
At noon on September 24, in Detroit,
there will be a meeting of the organi
zation committee, and since the presi
dents of all conferences are members
of that important committee, it is
expected that they will be in attend
ance. Also in attendance will be the
national committeemen, representing
the Federal Reserve districts, and
chairmen of the various standing com
mittees.
Northwestern Banker

June 19^3

★

NATIONAL CITY’S
Inter-American Family

Overseas
Branches
ARGENTINA
Buenos Aires
Flores
( Buenos Aires')
Plaza Once
( Buenos A ires )
Rosario

is D a ily G roiving Closer

BRAZIL
Rio de Janeiro
Pernambuco
Santos
Sao Paulo
CANAL ZONE
Balboa
Cristobal
CHILE
Santiago
Valparaiso
COLOMBIA
Bogota
Barranquilla
Medellin
CUBA
Havana
Cuatro Caminos
( H a va n a )
Galiano
(H a v a n a )
La Lonja
(H a v a n a )
Caibarien
Cardenas
Manzanillo
Matanzas
Santiago
ENGLAND
London
117, Old Broad St.
11, Waterloo Place
INDIA
Bombay

THE
NATIONAL CITY BANK
OF NEW YORK

MEXICO
M exico City

has a group o f officials at

PERU
Lima

Head Office wholly engaged

PUERTO RICO
San Juan
Arecibo
Bayamon
Caguas
Mayaguez
Ponce

in handling Latin-American

REPUBLIC

PANAMA
Panama

relationships. They are in
close touch with N ational
City officials in 35 LatinA m erican Branches and

URUGUAY
Montevideo

many strategically located

VENEZUELA
Caracas

Correspondents throughout
the Americas.

66 Branches
in
Greater
New York
CORRESPONDENTS
EVERYWHERE

THE

N A T IO N A L

B A N K

N E W

H ead O ffice: 5 5 W a ll Street
M E M B E R

Northwestern Banker

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Federal Reserve Bank of St. Louis

C IT Y

June 1943

F E D E R A L

DEPO SI T

I N S U R A N C E

C O R P O R A T I O N

Y O R K

J U N E

19 4 3

n o i ^m w e
DES

tern

MOINES
N U M B ER 671

F O R T Y - E IG H T H Y E A R

O ldest Financial Journal West of the Mississippi River

IN T H IS IS S U E

C L IF F O R D D E P U Y
Publisher

R A LPH W. M O O R H EA D
Associate Publisher

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

527 Seventh Street,
Des M oines, Iowa
Telephone 4-8163

N E W Y O R K O F F IC E
Frank P. Syms
V ice President
505 Fifth A v e .
Suite 1 806
Telephone MUrray Hill 2-0326

Editorials
8

A cross the Desk from the Publisher.......... .....

Feature Articles
D ear E ditor— Letters from R eaders...............
F ron tispa ge ............. .......... ...... ...... ........ .......... .
Help the F arm er Produce M ore F ood............
Y ou r Bank Has a Job to D o................................
A P ost-W ar Plan fo r the M oney Q uestion___
1943 Stream lined B anking___ _______________
News and V iew s o f the B anking W orld ........
The South Dakota Convention— Program ....
The M innesota Convention— P rogra m ...........
The N orth Dakota Convention— P rog ra m ....
W hen a Tenant Leaves— Legal Departm ent.

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

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

. Hilton D. King 13
........ G. M. Titus 14
...... M. W. Ellis 15
Clifford De Puy 16
............................. 17
...........................
19

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

20
22

Insurance
Your Customer Tells You.............. ..... ......................... ....... .......... John C. Conley 25

Bonds and Investments
Convert Cash Into Government Securities__ ____ ___________ James H. Clarke 29
Guarantee Prices for Cattle________________ _____ ________ __ _________ _____ 32

★

CONVENTIONS
AMERICAN BANKERS
ASSOCIATIO N
A m erican Institute o f B anking, Chi
ca go— June 9-10.
A m erican Bankers A ssocia tion , W a l
d orf-A storia H otel, N ew Y ork C ity—
W eek o f Septem ber 13.

STATE ASSOCIATIO N S
South D akota, M itch ell— June 9-10.
M issou ri, Jefferson H otel, St. L ou is—
June 10-11.
M inn esota, H otel N ico lle t, M in n eap o
lis— June 16-18.
N orth D akota, F argo— June 18-19.
M ontana, B illin g s — June 21-22.
W iscon sin , M ilw aukee— June 23-24.
Iow a, Fort D es M oin es H otel, Des
M oin es— Septem ber 5-7.

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Federal Reserve Bank of St. Louis

State Banking News
Minnesota_______________ ___ ___ ______
Twin City News..................................
Brief News from Duluth............ ........
South Dakota News................ ....... ....... —Brief News from Sioux Falls..............
North Dakota News.....................................
Brief News from Fargo............ ..... —
Nebraska News .................................. -........
Omaha Clearings .................................
Lincoln Locals .................. ..... ..............
Iowa News ...........~-------------------- ----Group Meeting Gossip.......... ..............
Pictures at the Iowa Group Meetings.

35
37
38
43
43
46
46
49
51
53
57
60
61

The Directors’ Room
A Few Short Stories to Make You Laugh.

Across the Desk
From the Publisher

20 Years of Banking Perhaps you will be
From 1922 to 1942 as interested as we were
in seeing what has hap
pened in twenty years of banking in the United
States from 1922 to 1943.
W e have been analyzing the consolidated state
ments of American banks during the past twenty
years and the four following divisions give some
interesting figures and tell the story of a very
exciting period in the history of banking in this
country.
We have given the high and low figures for
these four divisions, including: 1, Total Banks;
2, D eposits; 3, U. S. Government Securities; and
4, Loans and Discounts.
Here they a re :
1. Total Banks

High,
1922..............
Low, 1942.......

31,034
14,903

2. Deposits
High,
1942.............$100,905,000,000
Low, 1933................. 42,544,000,000
3. U. S. Government Securities
High,
1942...............$45,986,000,000
Low, 1933................... 8,286,932,000
4. Loans and Discounts
High,
1924...............$50,264,392,000
Low, 1935................... 20,470,154,000
Another interesting comparison is that while
the total number of banks from 1922 to 1942
decreased over 16,000, total deposits increased
$55,000,000,000.
Another comparison is that when our loans went
to their lowest in 1935 and amounted to $20,470,154,000, our total deposits were $51,730,000,000
whereas now with an increase in loans up to
$24,179,000,000 our deposits' have increased to
$100,905,000,000, thus American banking, as it
always does, follows the ups and downs of the

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19'f3

economic cycle influenced by wars, depressions,
and prosperity.

Let's Be Proud of
In an address before life
Our Svstem
insurance men, Dr. George
H.
Gallup, director
American Institute of Public Opinion, expressed
the view that the average American is worrying
more about the money problem than anything
else except, of course, the war.
We quite agree with that view, and we also
believe that, under the system of Government
established by our forefathers a hundred and
fifty years ago, we have the best kind, which is
the Capitalistic System, of achieving what we
really desire in this country better than any other
place in the world.
Roane Waring, national commander of the
American Legion, expresses his thoughts on this
important subject when he says, “ The arsenal
of Democracy was once a small group of com
munities where straight-thinking, stout-hearted
men and women with boundless courage lived
and worked.
‘ ‘ Because they wanted above all to have a
free country, these stalwarts made a Capitalistic
Nation. It ought to stay that way. But now that
the toughest part of the nation-building is over,
a lot of people— who ought to know better— have
a tendency to shy away from the ‘ Capitalistic’
idea.
“ Let’s be proud of our system— God knows we
have a right to ! Capitalism is the kind of system
that has made America the greatest and most
powerful nation on earth. A nation of unlimited
opportunities, where every man can start with
an equal chance, advance as far and achieve as

much as his own ability and brains and strength
and energy can carry him. And that is more than
anybody can say for any other kind of govern
ment ! ’ ’

It is important, we believe, to keep in mind
what the Capitalistic System has done in this
country to help put this nation in the forefront
of all the nations in the world and especially so
as we eventually face victory throughout the
world and come to sit around the council tables
again to discuss the kind of a world we should
live in and what we must do to preserve peace
when the shooting is over.
In the meantime, le t’s be proud of our own
Capitalistic System, and what it stands for in
this country.

"The Banker
There can be no doubt
Has Com e Back" in. the minds oi

thinking American that
the banker today has really “ come back” during
the past 10 years of readjustment in our economic
structure.
The great effort which bankers have given to
war financing has probably done more than any
one thing to again place them on the pedestal of
public esteem— a position ydiich they have been
striving to reoccupy since 1932.
In discussing this very interesting question F.
Palmer Armstrong, retiring president of the New
Jersey Bankers Association, states the case for the
bankers of the country in forceful language
when he says:
“ A year ago it was being said that the action of
the banks in the coming financing of the war
might be the test of the survival of our system
of independent banking in this country. But
today you do not hear any such statements. There
is no doubt left now. The banker has come back.
“ No other industry or business has come to the
aid of the Government the way banks have in
this emergency. And it has been service without
adequate compensation.
“ But now let us not be content with our return
to our old place in the confidence of the public,
but, by working together for what is right and
just, let us even attain a higher place in the
scheme of things than we ever held before. The
opportunity is before us.
“ Banking can and must build democracy, and
democratic banking practice is, first and fore
most, ethical banking practice.”
Banks today are, of course, burdened with vari

ous restrictions and taxes and competition and
wage and hour laws and ration banking and a
dozen other things that make it difficult to carry
on their regular activities, but, in spite of all this,
they have surmounted these obstacles and are
going forward to do their share in helping to
finance the war and win a victory, not only for
democracy but also for chartered banking and
private enterprise which will be invaluable when
Mussolini is muzzled and the Nazis are no more
and the “ rising scum” of Japan is sinking into
oblivion.
Yes, indeed, the banker has come back.

Our "Kids" Are
As Winston Churchill
Winning This W ar said in his sPeech before

congress, the Democracies
with all of their mistakes and failures and many
times inefficiencies have still demonstrated to the
world, and especially to their enemies, that a
victorious army can be recruited from the fields,
the factories, the filling stations, the offices and
the stores.
Edward M. Warner, president of the City Na
tional Bank of Clinton, used this idea as a basis
for copy in his local advertising, and it is such
a fine tribute to the youth of America that we
want you to read it. Here it i s :

“ When the history of these times is written,
the impartial historian will give full credit to
youth. For youth, in large measure, is winning
this war.
“ All honor to the ‘ k id s!’ The kid who was
‘ Butterfingers’ on the sandlot; the kid who
dribbled gas over your car’s polished surface at
the filling station; the kid who jerked sodas at
your favorite emporium; the kid who delivered
your newspaper; the 4-H farm boy who ditched
his chores to drop a hook in Elk River, Deer
Creek or the Mississippi . . . kids like these, who
became men, our protectors overnight, are pluck
ing victory out of the clouds, wresting it from
hilltops, gaining it on the high seas. The cream
of the entire world!
“ W e salute our kids . . . your kid and my
kid.”
Yes indeed, our kids are winning this war

and the job which faces us is that after this war
is won we still may win the peace.

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

Dur whole concept of a complete
correspon dent service is based
upon the principle of determining,the needs of our correspond
ents ... and servicing them with
the combined facilities of a well
equipped transit department and
an efficient personnel.

"Iowa s Friendly Bank

C EIH T IU L \ I I l l l \ l l
AND T R U S T CO MP A N Y

M&med

M ember Federal Deposit Insurance Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

llllk

-t

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Federal Reserve Bank of St. Louis

Northwestern Banker

June 19b3

Once upon a time the “ chicken and egg m oney” was regarded as just a small sideline for
farm income— but now the lowly hen is proving she can be a war winner, too.

Help the Farmer Produce More Food
Machinery and Labor Short-cuts to Pass on to Your
Farmer Customers
HE importance of the production
of an adequate supply of food in
the total war effort is being more
fully recognized as the war continues.
It is imperative that there be food for
our armed forces, for our civilian pop
ulation, for our Allies, and for the
people of the territories occupied by
our armed forces. While we may have
thought about it before, we are rap
idly coming to realize that food is
essentially a munition of war, and
that in this leading agricultural sec
tion of the nation, each state must not
fail to do its part.
Aside from the factor of weather—
rainfall, temperature, etc., farmers al
ways have with them the problem of
labor and machinery, and of course
right now this problem assumes seri
ous proportions. Suggestions as to
how to make farm labor and machin
ery more effective have been released
by Iowa State College, and bankers
may wish to pass on to their farmer
customers some of the points outlined
in the following:

Making Farm Labor and
Machinery More Effective
A. Crop Production
1. Repair all farm machines in ad
vance of need
a. Not only will the machines
give better performances but
loss of time for repairs during
the busy season will be
avoided
2. Use the largest practicable pow
er units
a. Within practical limits the
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

output of labor varies with the
amount of power used
(1) The largest practicable
team of horses should be
used
(2) Full use of tractors should
be made when available
Make maximum use of all avail
able machines that save much la
bor
a. Such machines as tractors,
combines and cornpickers
Use the more important labor
saving machines as many hours
per day as practicable through
two or more shifts arranged for
by neighborhood organization or
individual hire
Use combination of machines, re
ducing the number of operations
a. Such as smoothing and disk
harrows, plows with harrow
attachments, etc.
Use labor saving machines in
haymaking
a. Side
delivery rakes, hay
bucks, stackers, slings and
forage harvesters can be made
to save much labor in Iowa
Plan programs of work to avoid
labor peaks
a. The time of planting or va
riety of crop will control to
some extent the time of har
vest
b. Some choice of crops may be
made
c. Plan all work in advance
Do as much preparatory work as
practicable in advance

a. For example, early plowing,
preparing seed, etc.
9. Reduce operations—cut corners
a. Make two cultivations with ef
fective equipment take the
place of three or four if pos
sible
b. Omit stalk cutting, etc.
10. Plant tested and treated seed and
avoid wasted labor
11. Set up standards of achieve
ments
a. Check proposed production
with “War Units” standards
as developed in the commu
nity
12. Harvest crops with livestock
a. The “hogging down” of corn
is often practicable
B. Dairy, Livestock and Poultry
1. Simplify chores
a. Eliminate any unnecessary
operations
b. Store feeds near barns or lots
c. Use wagons and convenient
equipment for moving feed
2. Plan time of farrowing pigs to
avoid labor peak
a. Avoid cold weather farrowing
unless adequate housing is
available
3. Self-feed livestock and poultry
a. Use large capacity units that
need to be filled at rather long
intervals
4. Use automatic waterers
a. May be connected to small
reservoirs if water system is
not available
(Turn to page 31, please)

Y OUf B a tìk Has a Job To Do
HE RAW material of the small
town or neighborhood bank is
the money of the small merchant
and businessman, of the workingman,
farmer, and housewife, doing business
or living in the limited area from
which come the deposits that the bank
processes into the loans and financial
services that are its finished products.
The writer doubts if there is another
industry of business in which so little
attention is paid to, and so little is
known about, that important item, the
source of raw material. On the other
hand, it is almost certain that there
are few if any other producers of
raw material among whom will be
found the outright ignorance about
the business or finished goods into
which their product goes, that is found
among the said small merchants and
businessmen, the workingmen, farm
ers, and housewives, about the bank
ing business and what makes it tick.
Banking is a business, and bankers
are businessmen, though having much
in common with those who follow the
more classic professions of law, etc.
They are not sorcerers or magicians,
and there is little of magic formula
or of secret lore about banking. It is
la r g e ly straight-forward, com m onsense business, and explainable in
words of one syllable. However, to the
majority of the people who supply the
raw material (deposits), and even to
far too many of the purchasers of the
finished products (loans and financial
service) of small town and neighbor
hood banks, banking is still a mystery
—a mystery once cloaked with false
semi-sanctity, but of late unfortunate
ly tainted with unjust suspicion of
natural evil.

So What?
All of which may bring from you
the colloquial but pithy question: “ So
what?” To which the writer replies,
with equal pithiness, “Plenty!” And,
furthermore, now is the time to do it.
In the first place, why not meet Mr.
and Mrs. John Jones and make them
informed friends?
Mr. and Mrs. John Jones, multiplied
by x, are your depositors and custom
ers. Now the Joneses that deal with
small town and neighborhood banks
are swell people by and large, good
Americans who want to play fair and
be reasonable—but the majority of
them know little or nothing about
banking, not much about finance, and
probably not much more about the

By Hilton D. King
Chicago

The author, in his capacity
as a long-time customer of
small-town and n e ig h b o r
hood banks, and at several
times a modest holder of
s t o c k in t h e s e banks, be
lie v e s th at ignorance on
th e p a r t o f depositors is
not bliss, at least so fa r as
the b a n k e r is concerned.
In this article he suggests
s e v e r a l w a y s b a n k s ca n
m ake t h e ir c u s t o m e r s in
formed friends.

simpler economic laws than you do
about Ohm’s law of electrical relations
or Einstein’s theory of relativity. And
because of this the Joneses are the
possessors of a most amazing collec
tion of false ideas and superstitious
fears of banks, banking, and finance in
general. This is a rather unhealthy
condition for several reasons, and the
neighborhood and small town bank
can and should do something about it.
Definite recommendations which are
made below may be used as a frame
work for a fairly complete plan of ac
tion, or merely as a reservoir of ideas
from which the individual bank can
choose and combine those which best
fit its needs and which it can use most
effectively. However, the writer first
wishes to point out two facts that af
fect banking generally and the neigh
borhood and small town bank in par
ticular.
First, let us state the truism that
there is no substitute for sound bank
ing. But you know and I know that,
both during the great depression and
at other times, many sound and wellmanaged small banks have gone under
due to a hysterical wave of baseless
fear among depositors. Perhaps some
bank closed a hundred miles away, or
perhaps knowledge of a sizable loss or

of the freezing of some large asset of
the local bank had leaked out. Then
the backdoor gossip and the lunchhour know-it-all went to work (and
how they did work!), and trouble
started. Now most of the bank’s de
positors may have had confidence in
their bank, and most of them were
well meaning and wished to be fair
and reasonable—but it was all strange
to them, this banking business, and
they had so little knowledge with
which to combat the rumor-monger
and the hysterical fool that their in
herent decency and fairness was of
little avail. Of course deposit insur
ance has done much to overcome this
problem—but has it lessened your re
sponsibility for getting and maintain
ing the enlightened confidence of your
depositors and borrowers any more
than it has decreased your responsi
bility for sound banking? In the long
run, in a free democratic society, any
time an individual relinquishes to
government a responsibility he can
or should assume, he is the long-time
loser.
Though such “passing the
buck” may be easy and popular, it is
one swell way to lose political and
economic freedom and one’s own selfrespect.

Critical Days Ahead
Second, let us consider the critical
days that lie ahead for those who sin
cerely believe that a system of free
economy is essential if we are to have
a free political system and all the
other freedoms that we cherish. Times
of change, crises, and danger always
beget a hectic seeking of legislative
panaceas by self-seeking demagogues
and sincere though unsound fanatics.
Times without number in the past the
hard work that committees and indi
viduals have done to frame sound
banking laws, or to bring existing
laws up to date to meet changed con
ditions has been rendered futile by
the ignorance or indifference of voters,
who either did not vote at all or
voted from misinformed prejudice
when a constitutional amendment was
put on a referendum ballot. And have
we a right to blame the voters for
this, or for indifference to and failure
to fight against bad banking and finan
cial legislation proposed in Congress
or the state legislatures, when we have
done so little to inform them of the
simple, basic facts about banking and
finance?
Now for some specific suggestions
on how to meet Mr. and Mrs. Jones
Northwestern Banker

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Federal Reserve Bank of St. Louis

June Í9J3

14
and help make them informed friends
and possibly better customers and
more reliable producers of raw ma
terial.

Public Relations
First, every small town and neigh
borhood bank should designate one of
its staff as either a full-time or parttime (depending on the size of the in
stitution) public relations and infor
mation man. He should be a good
“mixer”—but not just a “popular”
chap or a “glad hander” , because more
than anything else he should sincerely
believe in the essential role played by
the sound and honest bank in Ameri
can life, be well informed as to this
role, and be able to explain to and
inform others in simple language
about the why and how of banks and
banking. He should be free during

banking hours so that he can at some
time during each six-month period in
formally welcome and spend a few
minutes chatting with every regular
depositor and customer of the bank.
During the first such conversation he
could express personally the bank’s
wish to be of service, not only in the
usual business of banking, but also
in standing ready to offer informed,
considered, and unbiased advice on
financial problems. When he feels
that the customer has time to spare
for it, he could, perhaps, ask him into
his private office for “just a few min
utes’ talk on this business of banking” ,
and use this informal talk to get across
what he can of how banking works
and of the bank’s importance to the
community. All of this will tend to
bring about the feeling that the bank
is really interested in its customers

Post-Wat Plan

For the M oney Question
The following suggestions concern
ing our very important “money ques
tion” after the war have been pre
pared by G. M. Titus, president, Titus
Loan and Investment Company, Mus
catine, Iowa, and we thought the read
ers of the N o r t h w e s t e r n B a n k e r might
be interested in expressing their own
opinions on this very timely topic.—
Editor’s Note.
A An international non-profit bank
I . supported at first by England,
the United States and Russia.
2. Located in this country because
we have, I understand, 80 per cent or
more of the gold of the world.
3. The facilities of this bank open
only to nations who will stabilize their
currencies in conformity with the reg
ulations of the bank.
4. The charges of the bank only
sufficient to pay expenses and prop
erly conduct the same. This would in
dicate to all nations that the bank is
established to facilitate international
trading.
5. Since the business of threefourths of the world is done with sil
ver only, gold should be the base, but
gold and silver on some reasonable
ratio should be used.
6. If this were done, it would, in my
judgment, secure greater world pros
perity than has hitherto been known.
7. In my judgment, the postwar
money question is the most important
problem for solution.
8. It would probably be necessary
for this country to pledge some portion
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

G. M . T I T U S
A M o s t Im portant Q u estion

of its gold reserve to stabilize its inter
est in the international bank.
9. In my judgment, it would be
very desirable if the suggestion for
such a bank would come from Eng
land.
10. This whole money question
should be acted upon in a non-partisan
way. In other words, the solution
should be on the part of both the
Democrats and the Republicans in this
country.

and make the customers interested in
the bank.
Second, the bank should take ad
vantage of the present community
mindedness, brought about by mutual
interest in and cooperative effort to
forward the war effort and civilian de
fense, to show its friendly community
spirit by offering to act as depository
for even the smallest community funds
allowing them to be checked against
without charge or fee by the author
ized and responsible officers or trus
tees. This will be appreciated and re
membered by those men and women
who are spending time and effort on
these activities—who are quite often
not business people, but who are, in
some degree, leaders of thought and
action.

Part the Banker Plays
Third, the bank should take an ac
tive, vital interest in informing and
educating the community, as well as
its own depositors and customers, in
the important part played by banks
and banking in America’s scheme of
things. It can do this in many ways,
with very little expense. For example:
(1) It could offer to give yearly talks
along this line by its public relations
man or an officer of the bank at meet
ings of the local chamber of com
merce, businessmen’s association, par
ent-teacher association, or other com
munity organizations.
Such talks
should always deal with banks and
banking in general—never in any way
“touting” or advertising your own
bank. If there are two or more banks
in the community, they should co
operate in these enterprises. (2) In
addition to its annual statement of
condition in the local paper (usually
a stereotyped thing, and just a mean
ingless batch of figures to the unin
itiated), it could print this statement
in inexpensive but enlarged pamphlet
form, with brief explanations of the
various items written in clear and
simple fashion for laymen. Included
in this pamphlet could be a summary
of the year’s business highlights; any
changes in banking laws made or con
templated, with strictly fair commen
tary thereon; and short friendly intro
ductions to new officers or members
of the staff of the bank whom the pub
lic may meet. This pamphlet could
be included with the depositors’ next
month-end statement and cancelled
checks. (Many large corporations are
doing this sort of thing for their an
nual stockholders’ report now, and
consider it very worthwhile).
(3)
Provide a speaker for a “Your Bank
and Its Work” talk before an assembly
period of the senior class of the high
(Turn to page 33, please)

1943 Streamlined Banking
It Is Important that Bank Management Keeps Up
With Changing Times
the year 1942. Total resources in
creased so greatly that for each unit
there was a decrease in spite of the
actual dollar increase.
Demand deposits show an increase
of $7,686. In dollars for all of the
banks this increase exceeds $156,-

By M. W. Ellis

HESE charts have heen prepared
with the idea of making what
might otherwise be dry statistics,
a bit more interesting to you. By
means of the chart we can sometimes
visualize figures better than they can
be told to us.
Our principal job now is winning
this war rather than worrying about
bank profits but it is important that
bank management keep up with the
changing times.
All of the charts are based upon bal
ance sheet and operating statements of
the average of the 542 Iowa state
chartered banks translated into units
of $100,000 of resources. This puts
each bank on an equal footing. One
banker should do as well with each
$100,000 under his management as any
other banker. If your bank has $500,000 of total resources your comparison
would be five times what the charts
will show, whereas, if your bank has
$10,000,000 of total resources, your
comparison would be 100 times the
figures shown in the chart.
You have often heard it said that
“ Figures will not lie but liars can

I o w a S u p e r i n t e n d e n t o f Banking
Des M oines

lilliiiiitii!
SlIllliHll

TO ADI

WHERE THE INTEREST
ON EACH * 1 0 0 .0 0 0 OF
RESOURCES WENT IN 1942

EACH IÖÖ.ÖÖ0 OF RESOURCES
m oiàfWBèn a i»

BASED UPON EACH
400.000 OF RESOURCES

COMPOSITION
I94Z

m i

* • ;
"•
DEPOSITS S9494 6?!00

m m

m í DEPOSITS

■■

v-'¡o
...M P I

ACTUAL 1342 INTEREST INCOME

■ <' o : .V ■
7.6Ô6

\imm

■

j <:
• 13.870

44«». j¡¡j|

m¡LWKS0 tísk mm a s s e
1CASH

35.1SO 35 A 3

00300 100,000
CHART ONE

.490

|f 2^0

' 170
8Ô

‘ 1,818

'
-

¡Ä 1 I 1 I Ä ;
-•
iher mm

207

All TAXES

iazt

: i ACTUAL' 1942 NET PROFIT
PCTO

'1025

OThTK I

8
!

ÍHAKfcf 0— 5

II
2 ' W ML

!
4*ID 2Û.! <
t c p l l l l l l I l i ‘NCOMf jj§j
>808
1
| 1 Í Í ¡ ¡ p | | | EXPENSE
I
f*7

! A T T E S T CK 7E-.A

ÄÖ0 1942 RISKLESS FEE INCOME
ÄD0 OTHER INCOME

79 3_ 332*2 T

SA.A^ES M « f i l i

e?* r?? a\x\ -anMS

i 2.Ö25
I 871

IME

.: Q25 i l l

TOTA. MEREST INCOME

13.

3ij650 25M0

'100000 mm

total

WML

Investments, Chart One
The increase of $13,870 in United
States securities in each unit repre
sents in dollars an increase of $124,000,000. An increase of $1,000,000 in
other bonds translates into a decrease
of $1,490 to the unit. The decrease of
$12,210 shown for each unit in loans
was in dollars a decrease of $18,150,000.
While total investments show an in
crease of only $170 for each unit, they
actually increased $107,000,000. The
$80 a unit increase in cash represents
an actual increase of $58,336,000.
The decrease of $250 in fixed assets
is an actual net decrease of $221,000 in
(Turn to page 28, please)

Composition, Chart One

ALL IOWA
HARTERED B A N K S

’

Time deposits increased $6,650,000
in the year, though in the unit they
show a decrease of $6,050.

In Chart One we show what com
poses a $100,000 total resource unit. It
shows a decrease of $1,636 in capital
funds, in spite of the fact that there
was an actual increase of $2,300,000 in

IOWA CHARTERED BANKS

•

000, 000.

make figures.” That is all probably
correct but I assure you there is noth
ing tricky about these figures though
there are some interesting deviations
in the comparison of the actual total
dollars and the comparison of the
translations of them into these $100,000
units of resources.
Mark Twain has said “Truly, noth
ing is so astonishing as figures if they
once get started.” So watch closely
but with confidence that the figures on
these charts are actual true arithmet
ical averages of the condition and per
formance of these Iowa banks.

154

345

..93
592

|||

35S

2 4 | | | i l p DN AX)U 0 U K US BONDS

335
! 54

93 i
76A

f f 5,000 # 1.4325 p )

l, 2 m

CHART TWO

CH ART THREE

T hese are the three charts to w hich the author refers in his article above.

Northwestern Banker

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

June 1943

N ew s
OF

THE

a n d
B A N K IN G

V ie w s
W O RLD

By Clifford DePuy
l) F. BUCKLEY, president of the

Central National Bank and Trust
Company, has been elected vice presi
dent of the Des Moines Rotary Club
for the year beginning June, 1943, to
May, 1944.
A memorial Mass was held last
month for Ensign Gustave Kerndt,
U.S.N.R., who has been reported miss
ing in action, and who was attached
to the U. S. S. Destroyer Sims which
was lost in battle in the Coral Sea on
May 7, 1942. Ensign Kerndt was the
son of Moritz Kerndt, Jr., vice presi
dent of the Kerndt Brothers Savings
Bank of Lansing, Iowa.
Lieutenant (j. g.) Stanton C. Arendts,

with the Pacific fleet since his gradu
ation from Annapolis, and who lives
at Kensett, Iowa, tells what he thinks
of strikes in a letter to his relatives
back home, when he says:
“I heard the news about strikes that
closed down two plants. What’s the
matter with those guys, don’t they
know there is a war going on?
“I just hope every stinking one of
them finds himself under enemy shell
ing, bombing and strafing for hours,
days and weeks.
“Then they can just stay and take
it, waiting for the planes they didn’t
make to come to their rescue.
“I haven’t talked to anyone in the
service who isn’t mad and can you
blame them?”
James E. Hamilton, chairman of the
Merchants National Bank of Cedar
Rapids, and Mrs. Hamilton very kindly
invited us to their home for “refresh
ments” and to the Country Club for
dinner when we were there recently.
Also, as a guest was George Booth, a
partner of Lamson Brothers and Com
pany of Chicago. Mr. Booth started
with Lamson Brothers 31 years ago in
Cedar Rapids.
Second Lieutenant John T. Hamil
ton II is with the 8th Army Air Corps
stationed in England.
Just to keep himself “fit as a fiddle” ,
Jim walks two and a quarter miles
every morning to the bank.
Winthrop W. Aldrich, chairman of
the board of directors of the Chase
National Bank of the city of New
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

York, in a recent discussion of the
problem of post-war monetary sta
bilization, suggests a new plan for
handling this complex question and
puts his proposition this way: “ I
would like to suggest as an alterna
tive to the two plans proposed in
tentative form by the American and
British experts that at the earliest
possible moment a ‘free dollar’ be
established in the post-war world. This
would involve the checking of do
mestic inflationary forces, the re
sumption of gold payments, and the
removal of all foreign exchange con
trols. If these measures were taken,
the dollar would constitute a sure
anchorage for the currencies of other
nations and would become a generally
acceptable international medium of ex
change. All international transactions,
including short- or long-term capital
movements, could be cleared on the
basis of a dollar freely redeemable in
gold and freed of foreign exchange
controls.”
S. E. Coquillette, president of the
Merchants National Bank at Cedar
Rapids, attended a meeting in Minne
apolis last month of the “ Industrial
Information Committee”, which met at
the Minneapolis Club and which was
headed by Harry A. Bnllis of General
Mills.
The object of this meeting was to
discuss plans for employment and pro
duction of civilian goods when the war
is over.

now a lieutenant in the U. S. Navy
Reserves and has gone to Columbia
University to begin his training.
While Ralph is away, his very able
assistant, Grace Marie Mack, will be
advertising manager, as she has been
in that department for some time and
is very familiar with the work.
Erwin W. Jones, vice president of
the Iowa-Des Moines National Bank,
has a son, 2nd Lieutenant Don O.
Jones, who is going to Fort Custer at
Battle Creek, Michigan, to take train
ing in military government. Don
graduated from the Drake University
School of Commerce in 1937.

W h ile Johnny’ s hom e on furlough, le t’s
drop dow n to M ik e ’ s place to see him !

Vern L. Bartling, assistant vice presi
dent of the First National Bank in
Chicago, has a daughter, Jacqueline E.
Bartling, who joined the WAVES re
cently and is now taking her prepara
tory work at Hunter College, New
York.
F. Van Erdewyk, president of the
Breda Savings Bank of Breda, Iowa,
did some very effective advertising in
behalf of the war bond campaign, and
if you have not seen the advertise
ments he used, we suggest you write
and get them as they were very timely
and interesting. Mr. Van Erdewyk’s
bank was Co-Chairman in his commu
nity which was pledged to raise
$81,600, the bank’s share being $31,385.
In one of his ads Mr. Van Erdewyk
made this very effective appeal:
“Are we going to stand idly by and
‘Feather Our Own Nest’, while our
boys are Fighting to save you and us
and Everybody else and Everything
we or they own?
“They are Fighting on the Battle
Fronts. AVe must Fight on the Home
Front. It’s a Duty We Owe Them,
Ourselves, and Owe Our Country—The
Land of the Free and Home of the
Brave.”

Ralph K. Brown, formerly adver

tising manager of the Mississippi Val
ley Trust Company of St. Louis, is

“7

Joseph G. Parr, president of the
Trust Company of New Jersey and
new president of the New Jersey’s
Bankers Association in a recent ad
dress pointed out the problems that
face the present generation, both its
citizens and bankers, and emphasized
that governments are established to
be of service to men and not their
masters. Mr. Parr puts it this way:
“ It is in the grain of our breed to know
that governments are ordained not for
the mastery but for the service of
man. Of no less moment, however, is
the great precept which supplements
this. It is that government derives its
just powers from the consent of the
governed and can derive them no(Turn to page 53, please)

The

South d a ko ta
Convention

M IT C H E L L -J U N E

9-10
H. N. T H O M S O N

Headquarters — Hotel Widmann

ONFORMING to restrictions of
time and travel which are placed
around c o n v e n t i o n s during
these war times, the annual meeting
of the South Dakota Bankers Asso
ciation to be held in Mitchell on
Thursday, June 10, will be confined to
a one-day business and informative
session, with all subjects on the pro
gram devoted to speeding the war
effort.
J.
M. Patton, vice president of the
Mitchell National Bank, is general
chairman of the group of Mitchell
bankers on the several convention
committees. Others on committees
are: Annual Dinner, H. R. Kibbee, Jr.,
vice president, Commercial Trust &
Savings Bank, and Walter Fredine,
assistant cashier of the same bank;
Registrations, Norman Shelby, Mitch
ell National Bank, and George Toft,
assistant cashier, Mitchell National;
Hotel Reservations, C. J. Schlitz,
assistant cashier, Mitchell National,
and J. W. Bryant, vice president, Com
mercial Trust; Transportation, E. A.
Loomer, cashier, Commercial Trust;
and Reception, J. M. Patton and other
executive officers of Mitchell banks.

Conference headquarters will be at
the Widmann Hotel, where registra
tion will start the afternoon of
Wednesday, June 9, to be followed by
an informal get-together that evening.
Registration will continue the morn
ing of Thursday, June 10, with the
first conference session opening at
9:45 at the Elks’ Home, continuing
there throughout the day. The South
Dakota Bankers Association annual
dinner will be held the evening of the
10th at the Masonic Temple.
The program of the meeting is as
follows:

Wednesday, June 9
Afternoon

2:30 Registration, Lobby, Widmann
Hotel.
2:30 Meeting of Executive Council,
Small Dining Room, Lawler
Hotel.
Informal get-together Wednes
day e v e n i n g at Mi t che l l
Country Club.

Thursday, June 10
Forenoon

8:30 Breakfast meeting of Nominat
ing Committee, Small Dining
Room, Lawler Hotel.
8:30 Breakfast meeting of State Bank
“Executive Council” , Navin
Cafe.
9:00 Registration continued, Lobby,
Widmann Hotel.
9:45 Business Session, Elks’ Home.
Call to Order by the President,
H. N. Thomson, Presho.
Invocation, Rev. F. E. Lockridge,
Pastor, First Methodist Church.
Address of Welcome, E. A. Kirk
patrick, S ec r et ar y , Mitchell
Chamber of Commerce.
Response, T. N. Hayter, Sioux
Falls, Vice President, South
Dakota Bankers Association.
10:00 Opening remarks of the Presi
dent.
Filing of Official Reports.
10:15 “ Some P r o b l e m s of Country
Bankers in War Time” , Frank
P. Powers, Mora, Minnesota,
President, State Bank Divi
sion, A. B. A.
10:45 “The Necessity of the Bankers
Participation in the Rationing
Program” , W i l l i a m Duncan,

President
South Dakota Bankers A ssocia tion

Jr., Secretary, Minnesota Bank
ers Association.
11:10 Discussion.
11:30 “War Financing and the Banks” ,
Otis R. Preston, Minneapolis,
Vice President, Federal Re
serve Bank.
11:50 Recess.
12:00 Luncheon meeting of Resolu
tions Committee, Small Dining
Room, Lawler Hotel.
Afternoon

1:30 “Listening to the Other Fellow” ,
G. O. Thorpe, Chippewa Falls,
Wisconsin, President, Wiscon
sin Bankers Association.
2:10 Discussion.
2:15 “Bank Aid in Solving the Prob
lem of Distressed Plants” , by a
Representative of the Smaller
War Plants Corporation.
2:45 “Banking and G o v e r n m e n t ” ,
D. J. Needham, Washington,
D. C., General Counsel, Ameri
can Bankers Association.
3:30 Reports of Committees.
Election of Officers.
New Business.
S el e ct i on of 1944 Convention
City.
Adjournment.
Annual meeting of members of
the American Bankers Asso
ciation at close of session, for
election of officers.
6:30 Annual Dinner, Masonic Temple.
Toastmaster, Herbert E. Hitch
cock, former U. S. Senator.
“War and the Farmer” , O. B. Jesness, Chief of Division of Agri
cultural Economics, University
of Minnesota.
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19Í3

L . O. O L S O N
President, M inn esota Bankers A ssocia tion

The

Minnesota Convention
June 16th and 17th

EMBERS of the Minnesota Bankers Association will
come to Minneapolis on Wednesday and Thursday,
June 16th and 17th, to attend the annual convention of the
organization. Headquarters will be at the Hotel Nicollet.

In keeping with the all-out war effort, the convention
this year will be restricted to a one-day meeting, with a
get-together the evening before.
The Minneapolis Clearing House Association has set up
only one convention committee this year, of which J. J.
Maloney, assistant cashier of the First National Bank, is
chairman. Others on the committee are E. W. Engstrom,
assistant cashier of the Midland National Bank & Trust
Company; E. P. Gisvold, assistant cashier, Northwestern
National Bank; William F. Kunze, vice president, Mar
quette National Bank, and Genevieve M. Nevin, Northwest
Bancorporation.
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19J3

Even though the convention period is somewhat shorter
than usual, a most interesting and instructive program
has been arranged, and all Minnesota bankers are urged
to attend.

Wednesday, June 16
Evening Smoker and Dutch Lunch.

Thursday Noon, June 17
Convention in session throughout the day.
Dinner Speaker—Dr. Richard Struna, last American to
leave Czecho-Slovakia before the present war.

Thursday, June 17
Ladies Lunchen, Minnesota Terrace, Hotel Nicolllet.
Special Entertainment.

MEM BER
FEDERAL
D E P O S IT
IN S U R A N C E
C O R P O R A T IO N

The Omaha
National Bank
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1943

The

North Dakota
Convention

FARGO-JUNE

18-19

J. O. M I L S T E N
President
North Dakota Bankers A ssocia tion

HE 1943 “War Conference” of the
North Dakota Bankers Associa
tion, to be held for one day, Sat
urday, June 19, in Fargo, has been
stripped of the usual convention frills
and will be a day of hard work in an
earnest effort to learn more about how
the banker can better aid in winning
the war.

Registration and all other activity
will center around the Elks Club
Building. Friday evening, June 18,
registration will start at 5 o’clock, to
be followed by a social hour and din
ner, with visiting bankers guests of
the Fargo Clearing House Associa
tion. Registration will continue at the
Elks Club Saturday morning, with the
first session getting underway at 9:30.
Following adjournment of the meeting
on Saturday, the executive council of
the North Dakota Bankers Associa
tion will hold a dinner meeting to dis
cuss plans fo r f ut ur e Association
activity.
The general committee for the
convention consists of Chairman G. H.
Nesbit, vice president of the First
National Bank; R. H. Butterwick, vice
president, Dakota National Bank;
Clarke Bassett, vice president, Mer
chants National Bank; and Earl Shaw,
president of the Fargo National Bank.
R. H. Barry, assistant cashier of the
Merchants National Bank, is chairman
of the reservations committee, assisted
by O. J. Boyle, cashier of the Dakota
National; Groege May, assistant cash
ier of the First National; and Lester
Smith, cashier of the Fargo National.
Agnes Newman is chairman of the
registration committee, with Velma
Franek and Mary Welsh her assistants.
The complete
follows:

program

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Federal Reserve Bank of St. Louis

reads as

June 19^3

Headquarters — Elks Club

Friday, June 18
Evening

5:00 - 8:00 Registration, Elks Club.
Social evening and dinner
as guests of Fargo Clear
ing House Association.

Saturday, June 19
Forenoon

9:00 Elks Club Registration contin
ued.
9:30 Business session called to order
by President, J. O. Milsten,
Belfield, North Dakota.
Invocation.
Address of Welcome, Mayor F.
O. Olsen.
Response, H. A. Fischer, Wash
burn, North Dakota, Vice
President, North Dakota Bank
ers Association.
10:00 Address, President, J. O. Milsten,
First National Bank, Belfield,
North Dakota.
Filing of official reports.
10:15 “Problems of the Country Bank
er in War Time” , Frank P.
P o w er s, Mora, Minnesota;
President, State Bank Division,
A. B. A.
10:45 “ Bankers Participation in the
Rationing Program” , William
Duncan, Secretary, Minnesota
Bankers Association.
11:10 Discussion.
11:30 Report, Agricultural Committee,
F. A. Irish, Chairman; and B. E.
Groom, G. N. D. A.
Election, A m e r i c a n Bankers
Association officers.
12:00 Recess.
Afternoon

1:30 “ Agriculture and the War” , H. J.
Gramlich, C hi cago, Illinois,
General Agricultural Agent,
Chicago and North Western
Railway Company.

2:00 Address, John A. Graham, State
Examiner, Bismarck, N or th
Dakota.
2:30 “Post War Planning” , Honorable
Charles R. Robertson, Bis
marck, State Chairman, Com
mittee for Economic Develop
ment.
3:00 Report, Bank Management Com
mittee on amendment of .by
laws, dues schedule, Martin
Aas, New Rockford, Chairman.
Discussion.
3:30 Report, Junior Bankers Com
mittee, Short Form Analysis,
“The Decatur Plan” , R. H.
Barry, Fargo, Chairman.
Discussion.
4:00 Election of Officers.
New Business.
Election of 1944 Convention City.
Adjournment.
6:00 Dinner Meeting, Executive Coun
cil.

Attends Mexico Convention
W. L. Hemingway, president of the
American Bankers Association and
president of the Mercantile-Commerce
Bank and Trust Company, addressed
the annual convention of the Mexican
Bankers Association held last month
at Chihuahua, Mexico. Mr. Hemingway
talked to the convention in Spanish.
He was accompanied on his trip by
J. M. O. Monasterio, vice-president of
the bank, vice-president of the Bank
ers Association for Foreign Trade,
and secretary-treasurer of the St.
Louis Committee of the Pan American
Society of which Mr. Hemingway is
chairman. Following the convention,
the bankers spent some time in Mexico
City and visited the industrial center
of Monterrey in the course of their
trip.

Announcing . . .
The Opening of a Branch Office
In Des Moines to Provide Better

FIELD WAREHOUSING
SERVICE

FOR

IOWA

An increasing volume of Field Warehousing business
in Iowa has necessitated the opening of a branch
office at Des Moines to insure the best possible serv
ice for our customers throughout the state.

Field W areh ou sin g Helps to
Safeguard Loans . . . Increase Profits
Warehouse Receipts issued by our company are supported by its strong
financial position; its long, successful operating experience, and by
substantial legal liability insurance. These receipts may be issued to
collateralize inventory regardless of location.
Convenient and low in cost. Field Warehousing enables the banker to
lend in excess of open-line credit safely and profitably.
F o llo w in g are som e
of the m any types of
inventories
being
F ield W a re h o u se d :

Consultation service is free to banks. Your in
quiries are cordially invited and will receive
prompt, careful attention.

W ool
Grain
Seed Corn
Canned G oods
C oal and Coke
G roceries— W h o le sa le
Lum ber

ST. PAUL TERMINAL
WAREHOUSE COMPANY
St. Paul, Minnesota

P etro leu m Products
Eggs
F rozen and P ow dered
Soy Beans
O il and M eal
Steel
W o o le n and Cotton
Piece G oo d s

------------------------- IO W A OFFICE ------------------------510 Iowa-Des Moines National Bank Building
Des Moines, Iowa
T. C. Cannon, District Manager
Telephone 4-2353

OTHER OFFICES AT: CHICAGO • DETROIT • NEW YORK • MEMPHIS • ATLANTA • PITTSBURGH • MINNEAPOLIS

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Federal Reserve Bank of St. Louis

Northwestern Banker

June 1943

W hen a Tenant Leaves Can He
Remove Improvements He Has M ade?
SOUTH DAKOTA banker applied
for certain life insurance. The
A
insurance company did not act prompt
ly on the application. The banker died
before the application was approved.
The beneficiary, his widow, sued the
insurance company for negligent de
lay. Can she recover?
No. In a recent decision the South
Dakota Supreme Court held that no
recovery could be had in the circum
stances outlined. It said that to permit
a recovery would be to indulge in
judicial legislation and that it would
not care to do this. Minnesota also
holds in accordance with South Da
kota, but there are other states that
permit recoveries.

Winton, an Iowa banker, rented his
farm in that state to Marcel. Marcel
placed certain small buildings and
fences thereon. The intent of the
parties was that the placement would
be permanent. There was no agree
ment to the effect that Marcel might
remove the property when he left, but,
despite this, Marcel took them with
him when he moved. Winton sued to
recover. Can he do so?
Yes. From the earliest times, fences
have been considered a part of the
realty to which they are annexed and
this is also true of buildings. By reason
of this and the fact that there was no
agreement for rem oval, Marcel’s
actions were illegal and Winton can
recover.

A Minesota bank purchased a space
heater for a building owned by it. The
heater did not work properly and
damaged the premises. It so happened
that the bank carried insurance that
partially reimbursed it for the damage.
Subsequently the bank sued the com
pany that sold it the heater for
damages for breach of an implied war
ranty of fitness. Should any damages
awarded the bank be reduced by the
amount of the payment on the in
surance?
No. In an action to recover damages
for breach of an implied warranty of
fitness the damages assessed are not
to be reduced by any insurance reNorthwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

These and Other Timely Legal
Questions Are Answered
By the

LEGAL DEPARTMENT

covery. Insurance coverage of the
plaintiff has no effect on the liability
of a defendant for a tort.

Abelson, a North Dakota banker,
owned a farm in that state. A power
company, through condemnation pro
ceedings, obtained an easement for
certain power lines over the property.
Could Abelson continue to use the land
that had been condemned so long as
such use was not inconsistent with
and did not interfere with its use for
the purposes of the easement?
Yes. Generally, nothing passes as
an incident to the grant of an ease
ment in land except what is requisite
to the fair enjoyment thereof, and the
grantor retains the right to full domin
ion over and use of the land except
so far as limitation thereof is essential
to the reasonable enjoyment of the
easement. Applying this principle, the
North Dakota Supreme Court recently
held that an owner of land covered
by an easement condemned for an
electrical transmission line right of
way has the right to enter on and use
the land for his own purposes, if such
use is not inconsistent with and does
not interfere with its use for the pur
poses of the easement.

Swarthmore and Jordan, Iowa bank
ers, were partners in certain land
deals in that state. A dispute devel
oped as to the proper division of cer
tain partnership funds and Jordan
sued to dissolve the partnership and
collect some $2,500 due him. The trial
court found for Jordan and ordered
Swarthmore to pay him the $2,500
plus interest. The latter appealed
claiming the interest allowance was
excessive because he had tendered Jor
dan $1,500 previous to the suit. He
admitted, however, the tender was

made with an understanding it would
be in full settlement and that Jordan
was claiming $2,500 at the time. Should
Swarthmore prevail?
No. A tender, to be good, must be
unconditional. Such, obviously, was
not the case here and the decision of
the trial court was, therefore, correct
and should be sustained on appeal.
The Iowa Supreme Court so held in a
recent decision involving analogous
facts.

An Iowa farm implement store
bought certain goods on credit. As an
incident to the credit arrangements,
the local banker personally guaran
teed the payment of the account in
writing. The guaranty instrument
provided, among various things, that
a written acknowledgement of the
amount of the account by the store
would be binding on the guarantor.
Was this provision valid?
Yes. A clause in a contract of guar
anty that a written acknowledgement
of the account by the debtor will bind
the guarantor is not void in Iowa.
Some states hold that such clauses
violate public policy in that they oust
courts of jurisdiction, but this line of
reasoning is not followed in that state
because, the Iowa Supreme Court reently said, they do not bar guarantors
from showing vitiating fraud or mis
take in the acknowledgements of the
indebtednesses. Minnesota, Louisiana,
and Alabama also follow this reason
ing.

Section 20-2141 of the 1941 Nebraska
Statutes provides that, when a petition
is filed for the satisfaction of a mort
gage, the court shall have the power
only to decree and compel the deliv
ery of the possession of the “prem
ises” . In a recent law suit there the
question arose of whether this pre
cluded the allowance of a deficiency
judgment in a chattel mortgage fore
closure. The controlling factor was
whether the legislature meant, by the
word “premises” , simply real estate
mortgages or chattel mortgages, as
well. What would be your ruling?
In a recent decision passing on the
matter the Nebraska Supreme Court

23
held that the word “premises” is used
in both law and common speech to in
dicate lands and tenements, and means
property conveyed in a deed. By rea
son of this, it held that the statute
specifically referred to is not appli
cable in cases involving chattel mort
gages and that deficiency judgments
may he entered therein.

Martinson owned two lots in an
Iowa city. On one was a bank build
ing and on the other a store. They
were adjoining and both buildings had
a common wall. Martinson sold the
bank building to a bank and the store
building to a store. The conveyances
were silent regarding the party wall.
Did each grantee acquire title to half
of the wall and a right to support in
the other half?
Yes. Where an owner of two adjoin
ing lots, occupied by buildings having
a common wall, conveys the proper
ties to different persons, each grantee
acquires title to half of the wall and
a right in the other half for the sup
port of his share of the Avail, e\7en
though the conveyances are silent as
to the parties’ right in the wall.

An Iowa trucking company main
tained a checking account with a bank
in that state. Certain forgeries oc
curred and, in the resulting law suit
between the company and the bank,
the contention was made that the
hauler should have verified each check
with its records of the details of each
of the transactions for which the
checks were issued. Was such con
tention sound?
No. While a drawer must certify his
canceled checks and statements of the
drawee bank, the drawer is not re
quired to verify each check with its
records in the particular transaction.
Of course, if there is reason to suspect
illegal acts, verifications of more than
routine nature should be made, but,
since the facts aboA^e recited did not
indicate the possibility of this, that
feature is not involved.

May issued a check to Snow drawn
on an Iowa bank. An unknown party
obtained the check somehow and
forged Snow’s endorsement thereon.
Subsequently the check came into
Brown’s hands and he endorsed it and
passed it to Hall. Hall endorsed it and
presented it to the drawee bank and
obtained the money thereon. Both
Brown’s and Hall’s endorsements were
genuine and the drawee bank knew
such to be the case. In such circum
stances was the bank relieved from
the duty of looking to the genuine
ness of all endorsements?

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MEMBER OF THE FEDERAL DEPOSIT INSURANCE^CORPORATION

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Federal Reserve Bank of St. Louis

June Í9J3

24
No. When a cheek is presented by
a third person with the alleged en
dorsement of the payee, the paying
bank generally must ascertain at its
peril whether the endorsement is
forged, and the genuineness of the last
endorsement on a check does not re
lieve such bank from the duty of look
ing to the genuineness of preceding
endorsements.

Guaranty Vice President
Eugene W. Stetson, president of the
Guaranty Trust Company of New
York, has announced the appointment
of Alfred R. Thomas as a vice-presi
dent of the company. For the last
year he, has been a second vice-presi
dent, and with his new appointment

A L F R E D R. T H O M A S
N amed V ic e President

continues to be identified with the
company’s banking relationships in
the Pacific Coast territory.
Mr. Thomas was formerly executive
vice president of the First Trust and
Savings Bank of Pasadena, California,
and late in 1941 resigned that post to
take charge of the priorities division of
the War Production Board for the
Southern California area. Prior to his
association with the First Trust and
Savings Bank, he was engaged in the
investment banking business in Pasa
dena, where he was successively with
Blyth and Company and Chase Securi
ties Company. He was graduated from
Cornell University in 1923 with the
degree of mechanical engineer. He is
a past president of the California
Bankers Association.
Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 19^3

Your Customer Tells
W hat a Buyer Expects from His Insurance Agent
HE HANDLING of the insurance
for our firm must be classed as a
side line which has been added to
my other duties. Primarily I am a
credit man. We deal with credit prob
lems on the basis of three principal
yardsticks commonly called the Three
C’s, which are character, capital and
capacity. I have tried to divide my
subject into three parts which I feel
cover most requirements of an insur
ance buyer.

Security
The first essential is security. No one
is more conscious of what a failure
means to a firm than a credit man, and
we must realize that failures usually
come in periods of greatest catastro
phes. Firms in the mercantile business
absorbed very substantial credit losses
during the past ten years when busi
ness profits were at a low ebb. Major
catastrophes in the insurance field can
not be anticipated except by reserves,
and when calamity strikes you, you
will give the most serious thought to
the value of security. Our firm, in ex
istence for seventy-one years, has ex
perienced no substantial insurance
loss. We want none, but if it should
come, we want to know that our insur
ance has been so placed that settlement
of any reasonable claim will be made
fully and promptly. I have had occa
sion to contact many other insurance
buyers in similar positions in firms
throughout the middle west. Not one
has failed to place security as the most
important element in insurance.

By John C . Conley
A ssista n t T rea su re r
W r ig h t & Wilhelm y C o m p a n y
O maha

ferring to those in Washington today
but rather those still engaged in pri
vate enterprise. I believe business
operated by honest men, regulated by
the law of supply and demand, striving
to make a profit only in proportion to
the capital and effort involved, will
continue to give a good account of it
self. Business today is highly special
ized. You are specialists in your field.
If and when I have need for a special
ist, I feel I should pay for that service.
I know little about the hardware busi
ness, but I know less about the insur

was, “Two tons.” The teacher said,
“That is not right, Johnny,” and he
said, “ I know it isn’t, but that’s what
you get anyway.” Many insurance buy
ers feel the same way about insurance,
but I believe this is gradually being
corrected.
There is less reason to
argue price now than, I believe, was
true years ago. Fire risks are careful
ly studied and inspected. Efficient rat
ing bureaus classify the risk involved.
Methods of preventing accidents have
shown splendid returns bringing about
a decrease in casualty insurance rates.
I feel insurance written today can be
handled without jockeying on the part
of the buyer for price, but the greatest
difficulty lies in insurance which has
been in existence for years. Too often
a line of insurance is carried year after
year without reviewing the risk and

"I believe every insurance agency needs a buying depart
ment, or possibly each agent selling insurance should make
it a practice to be his own buyer. He must know what
is on the market, what is new, what his trade requires,
where to get the coverage at the right price, and then
be able to pass it along through the sales end to us."
ance business, and I feel that if the
cost is not too great, I can afford to em
ploy an insurance specialist to carry
the risk of insuring our business and
devote more of my efforts to my
chosen field.

Private Enterprise

Price

I am and always have been a firm
believer in the advantages of private
enterprise. I believe in proper recog
nition of business specialists, not re-

The second item I wish to mention
is price. The teacher asked Johnny,
“ If coal is $10.00 a ton, how much do
you get for $25.00?” Johnny’s answer

the present rate at which the insurance
would be accepted. Too often a new
type policy may not be offered the
buyer and the result is that the vari
ance, between what he has and what
he could buy is not brought to light ex
cept by competitive agents. As agents
receiving commission, I believe there
would be little change in your income
if every effort were made to write or
renew each policy providing the max
imum coverage at the going rate, and

S carborough ^ C ompany
C < H cn h cÌcìS
First National Bank Building. Chicago

Horace A. Smith, Iow a Representative
Des Moines, Iowa

Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 19^3

you would not only give your competi
tion less to work on, but you would
gain in friendship, reputation and in
business.

Service
The third and not the least important
point to be considered by an insurance
buyer is service. I do not refer to the
delivery of the policies or the auto
matic renewal of expiring insurance. I
mean real honest to goodness service
on which we must depend to make up
for our own lack of knowledge on the

subject. An example of such service is
the grouping of many coverages in a
single policy to offer the maximum
protection. You are or should be fa
miliar with what can be done along
this line, and an insurance buyer will
certainly appreciate your suggestions
and help. I breathed a sigh of relief
when I purchased at a slight additional
cost a policy with substantial limits
covering comprehensive bodily injury
liability. I have been constantly afraid
I might overlook a risk which should
be covered, and I would like to see a

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A
...
if j'S /v i;

li Jr! t r *

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further consolidation of policies com
bining different types of coverage, or,
in other words, insurance wrapped up
in a small parcel to cover a multitude
of sins. Strides along this line are
being made, and I believe every insur
ance buyer will agree that from his
standpoint such a change is very de
sirable.
Our business is composed of various
departments, among which is the buy
ing department. A hardware buyer
should know what is on the market in
his line, what new products are being
introduced, what will best fill the needs
of his trade in his particular territory,
where to buy the product to the best
advantage, and then how to present
the product and the information intel
ligently to the sales department so it
can be passed on to the customers. You
cannot expect the sales department to
analyze each new item, to recognize
each new improvement in the product,
and it would be a duplication of effort
if they tried to do so. I believe every
insurance agency needs a buying de
partment, or possibly each agent sell
ing insurance should make it a practice
to be his own buyer. He must know
what is on the market, what is new,
what his trade requires, where to get
the coverage at the right price, and
then be able to pass it along through
the sales end to us. This must involve
a boiling down process so insurance
buyers with limited intelligence can
understand what you are talking
about. The more you can wrap it up
in a small package and explain it in a
few words the better chance you have

ighteen forty-nine to 1949 . . . nearly a
century has passed since the gold rush to
C alifornia. W h e n forty-nine returns, the
Golden State o f Cabrillo and Portola will
have become one o f the great industrial areas
of the Nation. This transformation, effected
D es M oines, Iow a

largely in the past ten years and now accelerated by total war, makes

in more than 300 cities and towns— through a branch banking system

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AGENTS
WANTED

which affords an invaluable service and an "on-the-spot” representa

T h e oldest mutual com pany of its

California a major consumer market of 7,500,000 people and a vital
industrial as well as agricultural producer.
Bank of America serves this modern California through branches

tion to bankers and businessmen throughout the country.

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Federal Reserve Bank of St. Louis

Surplus to P olicyholders
$1,369,325.58

B lu e and G o ld BANK o f A M ER ICA T R A V E L E R S C H EQ U E S
are available through au tho rized banks and a g e n cies
e ve ryw h ere . C a rry them w hen you travel.

June 1943

W rite for our liberal proposition to
bank representatives.

of getting it across to us. If the doctor
speaks to you in professional language,
you may not understand what he
means, but if he tells you you have a
stomach-ache and what will cure it,
you can follow his instructions. I
realize service costs you money, but I
also believe it will result in more busi
ness than repeated calls offering mere
ly to quote prices to the customer of
your competitor. Good service will be
good advertising and will be worth the
effort and the cost.
Many of my statements have been
rather pointed, but unless I speak
honestly, I feel I would not be fair
to you. What I have said may be of
some service to you in measuring how
well you fit into the picture of what
an insurance buyer desires. I will say
we probably expect too much, but I
believe there is a meeting ground on
which we can do business to our mu
tual satisfaction.

Garden "Accidents"
An ambitious Minneapolis subur
banite who has just had two acres
plowed up for his spare time Victory
garden will be shocked to learn that
such a plot will require from 23 to 69
hours of his “spare” time per day dur
ing June, warns a “garden mistakes”
summary by Northwestern National
Life Insurance Company.
A bumper crop of minor accidents
and infections, as well as waste of
much valuable seed can result if in
experienced Victory gardeners tackle
more than they can possibly manage,
are careless in handling poisonous in
secticides, or disregard homely pre
cautions in caring for abrasions, insect
bites, etc., the bulletin warns.
The experienced home gardener will
average all the way from two to six
hours’ work per week per 1.000 square
feet of miscellaneous planted vege
tables during the busy season, the
study says. The beginner is liable to
take twice as long to care for the same
area—a plot 25 by 40 feet, for example.
This is “upkeep” time, after the soil
has been prepared; it includes planting
and maintenance. It will, of course,
vary considerably, according to the
proportion of different vegetables
grown—a celery bed takes much more
care per square foot than does a plot
of sweet corn.
Don’t hurry through a big dinner,
then rush out and work head down
ward in the garden until nightfall,
suggests the bulletin. Better just take
a sandwich and a glass of milk to stay
your appetite when you first get home,
and come back to a late but leisurely
dinner after garden chores are done.
Be sure to scrub your hands
thoroughly with hot water and soap

immediately after using Paris Green
or other insecticides. This is is a good
general precaution even when using
the n o n - p o i s o n o u s varieties. Use
special care not to get garden chemi
cals into cuts or open blisters. Give

even small abrasions prompt “first aid’>
with thorough cleansing and the appli
cation of a good antiseptic; then cover
with a gauze bandage to exclude dirt.
Plenty of soap and hot water after
each stint of work in the garden will

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Stream-lined Policy that has been broadened,
simplified, made understandable even to the
novice who hasn't time to spend studying legal
phrasing and fine-print technicalities.
Many of the old-time exclusions, restrictions
and waiting periods eliminated
entirely
Income Insurance that pays for your time when
nobody else will buy it— when you are disabled
by accident or sickness.

A C C ID E N T & H E A L T H D IVISION
The State A utom obile
Insurance Association
DES M O IN E S, IO W A

ALLIED MUTUAL AGENTS

SELL

Two Outstanding Public Liability Policies.
FAR M LIABILITY In suran ce d efend s the farm er from judgm en ts
resu ltin g

from op eration

of his farm .

Pays

m ed ical,

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PE R SO N AL LIABILITY In suran ce d efen d s lia b ility of e v e r y m em ber
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It will pay you to Investigate. Write

ALLIED

MUTUAL

CASUALTY COMPANY
Harold S. Evans, President
Hubbell Building

Des Moines, Iowa

Northwestern Banker

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

su rg ica l,

h osp ital b ills of h ired h elp.

June 19b3

28
also lessen the likelihood of skin irri
tations resulting from allergies com
mon to many people.
Accustom your skin to sunburn
gradually. Wear heavy-soled shoes
when spading, to protect the feet from
injury. And don’t leave that rake
lying around!

1943 STREAM LIN ED
BA N K IN G
(Continued from page 15)
which, I am happy to say, there is in
cluded a decrease in other real estate
of $229,000, this item composing but a

SURETY
BONDS
★

Efficient Service

★

Reasonable Rates

★

Adequate Resources

★

Experienced

Non-Assessable

★

Only Iowa Surety
Rated

Surety Division
XX

THE STATE AUTOMOBILE
INSURANCE ASSOCIATION
DES

M O IN E S,

IO W A

A u t o m o b i le a n d T r u c k —
A c c id e n t a n d H e a lth
— F id e lity

and

Northwestern Banker

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

In 1942 for each $100,000 resource
unit the average Iowa bank collected
$2,025 in interest illustrated by the
full length of the horizontal bar on
Chart Two. This compares with $2,640
in 1941, clearly illustrating the sharp
decline in interest income.
From our $2,025 interest income bar
we must first deduct $207 for taxes
represented by the yellow portion. The
blue section shows the $793 portion
consumed by salaries and wages of
the bank’s staff, while the orange
portion represents the $416 of other
expenses. This leaves us $609 avail
able for interest on deposits and for
losses and for the shareholders.
Charge-offs
including
inventory
write-downs, fixed asset depreciation,
as well as bad debts and losses on
bonds sold, took $233 while recoveries
brought back $173, leaving the black
bar of $60 representing the net chargeoffs.
Out of the $549 remaining the aver
age bank paid out $395 or 73 per cent
of it to the time depositors, who you
will note, contributedj but 25.6 per cent
to each unit. This left but $154 of the

Potential Income, Chart Three
Now we turn to Chart Three and
find again our $154 after deducting
from the $2,025 of interest income the
$1,871 of expenses including interest
on deposits.
There was collected from the bank’s
commercial depositors $345 in the
(Turn to page 41, please)

Just as surely as the ships that sail the seas
are bankers tied to the war effort.
The
financing of agriculture is of first importance
and each community knows the influence of
both banking and insurance in local and
national economy.

by Bests

" A "

Interest Income, Chart Two

interest income available for the
shareholders.
If, therefore, you were to persuade
time depositors to withdraw $100,000
from your bank for investment in gov
ernment bonds, the most you could
lose would be $154 and then only if it
were necessary for you to take this
from your invested assets which
brought in this interest income. You
have, however, ample cash to meet the
withdrawal without calling in any in
vestments.
It is quite patent from the chart
that the payment of so large a por
tion of the amount available after ex
penses, for interest on deposits is al
together too liberal. Your local bor
rowers don’t borrow money from you
unless they can use the money to ad
vantage but apparently the banker
continues the payment of interest on
borrowed funds whether he has use
for them or not.

Bankers J
A weigh J

Management
★

trifling per cent of the total resources
of our Iowa chartered banks.

Hundreds of Banker agents attest the accept
ance of our policies for the protection of net
worth and collateral.
Write us today for
particulars.

WESTERN MUTUAL
FIRE INSURANCE COM PANY
DES MOINES

In s u r a n c e
S u r e ty

Bonds

June Í9k3

“ O v er a third o f a cen tu ry o f
S a fety and S erv ice w ith S a vin gs”

Convert Cash Into Government Securities
O r It May Be Necessary to Enter Market for Bonds
Already Outstanding

The Month's Market Maneuvers
Prepared for
The Northwestern Banker

By Jam es H . Clarke

ening-up pr oc ess
JA M E S H. C L A R K E

j-ftg

is la n d s

A s s i s t a n t V ice P r e s id e n t
A m e ri c a n N a tio n a l Bank & T r u s t C o.
Chicago

Sardinia and Sicily
—as well as in Italy itself. In the north
west Pacific, Attu was invaded—ap
parently successfully. On the home
front, however, the news was not so
encouraging. John Llewellyn Lewis,
the Lucas, Iowa, boy who made good
in the nation’s capital, got the head
lines in May. His threats once again
frightened the Administration and the
War Labor Board sufficiently to guar
antee him another victory—at least,
so it appears at this writing. By devi
ous means, a complete shutdown of all
mines was averted except for a day or
so. But the mine operators feel that
the old solution—complete surrender
to J. L.’s demands—will be the “com
promise” arrived at.
Severe strikes in Detroit and Akron
closed up essential war industries.
Strikes in other sections of the country
also flared up. Congress talked con
siderably about legislation to restrict
strikes during wars. Certain state leg
islatures took some action. All in all,
May was a bad month for the home
front—and as we write this on the
morning of May 26th, to meet our to
morrow’s deadline, the labor situation
is still unsatisfactory. Most of the
present strikes are in the so-called “un
authorized” category. In other words,
labor leaders themselves did not call
them. But this indicates clearly what
little control these leaders have.
Markets in general were somewhat
better during the month. The victory
in Tunisia brought some recession in
stock prices in the second week of
the month on the basis that the
“good news” was out— but on the
whole, prices improved. On the last
day of April the Dow-Jones average
of industrial stocks stood at 135.48—
last night it closed at 139.17. This
morning as we write this we learn
that in the first hour of trading the

average is up .78. Tn short, prices on
industrial securities, according to the
averages, probably will be up as much
as four points for the month—unless
something very unusual happens in
the four days of trading that are left.
After starting out with five consecu
tive days of volume exceeding 2,000,000
shares, activity in the market slowed
down to under 1,000,000 shares per
day on the average in the past two
weeks. All things considered, the May
stock market was good— despite the
fact that prices had already reached a
new high in this recovery movement—
and despite the fact that the market
had been in an upward trend for
about thirteen or fourteen months
without any corrective set-back of any
importance. Such strength may be
attributed to the large amounts of
money available for investments, as
well as inflationary fears. This seems
to he especially true when one consid
ers that earnings and dividends have
probably passed their war-time peak
as a result of lower margins of profit
in Government contracts, and higher
taxes in the offing.

Government bond markets in May
likewise were good. Both the new 7/8
per cent Certificates of Indebtedness
due April 1, 1944, and the new 2 per
cent Treasury bonds due 1952/50—the
issues which were of particular inter
est to bankers in the April financing—
quickly went to premiums. We are
advised that this morning there is a
bid of 100.22 for the 2 per cent bonds.
Municipal bonds also reached new
highs in May. Such high prices doubt
less are the result of tivo factors—
first, a scarcity value; and second, the
tax-free factor. Very little new mu
nicipal financing comes into the mar
ket, as municipalities naturally are not

increasing their debts to any great ex
tent in the war period. As a result,
when an issue is offered for sale, a
large number of dealers bid for it and
the re-offering price to the public is
most likely to be high. These high
prices, however, have brought very
little selling into the market, as most
oivners of tax-free bonds are loath to
get rid of them.
There were a few corporate bond
offerings in May and most of them
went very well. As long as the Treas
ury offers large amounts of bonds at
frequent intervals it is doubtful, how
ever, that many corporations will do
open market financing. Banks in the
larger centers are handling most of
this now, which indicates that follow
ing the war there should be quite a
bit of corporate financing in the mar
ket.
Returning to the Government bond
situation—from statements made by
the Secretary of the Treasury it seems
likely that the next public drive will
come in September. While the April
financing was exceptionally successful
from a monetary standpoint, on the
other hand, there were weaknesses in
it. Only 18 per cent of the securities
sold went into the hands of individuals
and it is quite possible that many of
these will he re-sold in the open
market and thus acquired by banks.
Over five billions went to the classi
fication known as “Other Corpora
tions” and si nee a large part of this
money was invested in Tax Anticipa
tion Notes and Certificates of Indebted
ness, very little aid was received from
this quarter for the Government’s
longer-range investing program.

There are those in Congress—Rep
resentative Patman, for instance—who
feel that if the Treasury is able to
raise its quota through sales outside
the banks, no bonds should be sold to
banks. For example, if a quota of
thirteen billion is set up as the amount
to be raised, it is the idea of this group
that the banks should not be called in
unless at the end of the campaign it
is felt that sufficient money has not
been raised through other sources.
It should be readily apparent to banks
what such a plan can do. For the
country as a whole it is strictly antiNorthwestern Banker

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

June 19f3

30
inflationary, but for the banks them
selves it means that they may find a
period when it will be necessary to
enter the market for bonds that are
already outstanding instead of se
curing them on an original offering.
Since the Treasury has such a large
financing program ahead of it, this de
velopment does not seem likely to
occur. The bare possibility, however,
of such a development should most
certainly spur banks who are holding
exorbitant amounts of cash to con
vert this money into government se
curities.

St. Paul Terminal
Warehouse Company
Opens Office in Des Moines
Harry G. McNeely, president of St.
Paul Terminal Warehouse Company
of St. Paul, Minnesota, announces the

opening of an office of his company
at 510 Iowa-Des Moines National Bank
Building, Des Moines, with Thomas C.
Cannon as district manager.
The St. Paul Terminal Warehouse
Company was founded in 1916, and
since 1926 has been actively engaged
in field warehousing. It pioneered
this type of service throughout the
north central states. In 1938 it pur
chased the field warehousing business
of the Hansen Storage Company of
Milwaukee, and in 1939 acquired the
New York Terminal Warehouse Com
pany, an extensive operator of field
warehouses in the territory east of the
Mississippi. Today the company is
one of the largest operators of field
warehouses in the country and main
tains offices at St. Paul, Minnesota, At
lanta, Albany, Georgia, Chicago, De
troit, Syracuse, Memphis, New York,

Philadelphia, Pittsburgh, Charlotte,
Des Moines and Milwaukee.
The company has for some time felt
that the field warehousing needs and
interests of Iowa industries and banks
could be properly served only through
the establishment of an office in the

“ F or ivhat avail, the plow

or sail, or land or life,
i f freedom fa il?’’'’

T . S T A N L E Y JA C K S O N
M anager F ield W arehouse D iv ision

state. It is the only company engaged
in this service which has taken this
step. The Des Moines office will serve
Iowa, Eastern Nebraska, South Dako-

The nation’s banks are doing much to
help win the War. They are a vital
force for Victory. We are always glad
to be of se rvice to correspondent
banks in connection with their financ
ing of lo cal w ar industry projects.

FIRST NATIONAL BANK
IN

MEMBER

Northwestern Banker

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

FEDERAL

ST.

DEPOSIT

June 19f3

IN SURAN CE

CO RPO RATIO N

T O M C. C A N N O N
Iow a R epresentative

ta, and portions of Missouri and Kan
sas.
Field warehousing is the establish
ment of the facilities of a warehouse
company on the premises of manu
facturers, producers and dealers.

31
Through the issuance of warehouse re
ceipts, first security covering the raw
and finished products of the owner is
conveyed to a lending bank. Banks
are thus placed in a position to finance
deserving concerns on a sound and
profitable basis and be assured of ab
solute control of the borrower’s in
ventory.
T. C. Cannon, district manager, is in
charge of the new office, located at
510 Iowa-Des Moines National Bank
Building, Des Moines. He has had
wide financial and warehousing expe
rience and is in a position to render
prompt, personalized, on-the-spot field
warehousing service for banks and
businessmen throughout Iowa.
The holders of St. Paul Terminal
Warehouse Company’s warehouse re
ceipts are insured by Lloyd’s of Lon
don up to $1,000,000, with coverage of
$500,000 at any one location, against
loss for which the company is legally
liable as a warehouseman.
Paul W. Frenzel, vice president of
the company, is president of the Amer
ican Warehousemen’s Association Mer
chandise Division. T. Stanley Jackson, who is well known to many Iowa
bankers, is manager of its field ware
housing department.

HELP THE FARM ER
PRO DUCE M ORE FO O D
(Continued from page 12)
5. Simplify barn cleaning opera
tions
a. When practical, load litter di
rectly onto spreader
6. Plan and simplify transportation
of people and products to and
from town through neighbor
hood cooperation
a. For example, reducing mile
age in marketing cream and
livestock, and delivering gas
and oil

Recruit Non-farm Labor
C. Recruit Non-Farm Labor
1. A systematic canvass will in
volve a somewhat different ap

proach for workers who may be
recruited from the smaller towns
and from the larger cities
a. Rural non-farm people (those
living in smaller towns)
(1) These families can be can
vassed by urban farm la
bor committees, with as
sistance of schools, United
States Employment Serv
ice, defense councils, civic
groups and other organi
zations
(2) The
local
community
must accept primary re
sponsibility for meeting

cio member. This com
mittee should get the co
operation of the schools
and other groups. The
canvass should be made
as soon as possible after
the need has been deter
mined. It should be em
phasized that only those
who are qualified and in
terested can make a real
contribution.

the need for additional la
bor within its trade ter
ritory
b. Persons living in towns and
cities
(1) The campaign to recruit
available help for farm
work in cities should be
organized by a committee
including the manager of
the local USES office, the
chairman of the defense
council, a representative
of the schools, a leading
farmer and the county ex
tension director as ex-offi

S i n n i f f

2. Train and supervise non-farm
youth workers

a. Develop plans, with school
people, for training city and

h o r t

e r m

OBLIGATION
☆

☆

Consolidated collateral trust debentures of the
Federal intermediate credit banks are joint and
several obligations of these banks, established
under an Act of Congress twenty years ago.
The Debentures are legal investment for trust funds, insur
ance companies and savings banks in New York and other
States. They are eligible to secure all fiduciary, trust and
public funds, including war loan deposit accounts, under
authority or control of officers of the United States. They
are approved security for deposits of postal savings funds.
Maturities to six months may be purchased by the Federal
reserve banks and are acceptable by them as collateral
for fifteen day loans to member banks. Denominations of

$5,000, $10,000, $50,000, $100,000, maturing in three to
twelve months, are offered periodically through recog
nized dealers and dealer banks at current market rates.

THE FEDERAL INTERMEDIATE CREDIT BANKS
SPRINGFIELD, MASS.

LOUISVILLE, KY.

ST. PAUL, MINN.

HOUSTON, TEX.

BALTIMORE, MD.

NEW ORLEANS, LA.

OMAHA, NEB.

BERKELEY, CAL.

COLUMBIA, S. C.

ST. LOUIS, MO.

WICHITA, KAN.

SPOKANE, WASH.

F u rth er in form a tion reg a rd in g th e D eb en tu res m a y b e o b ta in ed fr o m

C H A R L E S R . D U N N , Fiscal A g en t

31 N assau Street, N e w Y o r k

Northwestern Banker

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

June 1943

32
town boys to do farm work
(now in progress)
b. Develop “ on-the-job” training
by farmers

Declare Dividend
Directors of the First National Bank
in St. Louis, at a meeting last month,
declared a dividend of $1.20 per share,
payable as follows: 40 cents per share
payable May 29, 1943, to stockholders
of record May 25th; 40 cents per share
payable August 31, 1943, to stockhold
ers of record August 25th; 40 cents per
share payable November 30, 1943, to
stockholders of record November 24th.
This is the same amount for the period
as in 1942.

Elected to Board
James T. Lee, a vice president of the
Chase National Bank for the past four
teen years, has been elected a member
of the bank’s board of directors. At
the same time, Mr. Lee resigned from
the official staff of the bank in order
to devote himself primarily to the
e x e c u t i v e responsibilities he has
assumed recently as president of the
Central Savings Bank, New York City.
Mr. Lee is widely known as an au
thority in the field of real estate invest
ment and management.

Til
m u17
,

Public
National
Bank

Guarantee Prices for Cattle
|N RESPONSE to an editorial on the
| beef situation appearing in a recent
e di ti on of The Ch ic ago Tribune,
Charles C. Kuning, vice president of
the American Nat i onal Bank and
Trust Company, Chicago, wrote the
following letter which was published
in the “Voice of The People” section of
that newspaper. Mr. Kuning wrote:
“ I read with much interest your
article on the beef situation.
“ In my official capacity a great por
tion of my time is devoted to loaning
money on livestock in the territory
west of the Mississippi, both to feed
ers and to the rangemen. Previously
I was associated with many country
banks in the state of Iowa and I also
operated one of the governmental
loaning agencies set up during the last
depression—the Regional Agricultural
Credit Corporation at Omaha, Ne
braska—where I was manager and
where at one time our peak loans on
livestock were close to 40 million
dollars. This included both feed lot
loans and range type loans on cattle
and sheep.
“To begin with, please bear in mind
I am thoroughly opposed, in general,
to subsidy of the farmers and especi
ally at this time when the average
grain farmer is making good money.
However, there is a positive shortage
of finished beef and, unless something
is done, it will continue to get worse
instead of better.
“Therefore, I proposed that the feed
er be allowed a guaranteed price
spread, if it became necessary, of two
and one-half cents or preferably three
cents a pound, depending on the sta

bility of grain prices and proteins that
make up these feed mixtures.
“Taking your own article as an ex
ample, the feeder would go out and
buy a 650 pound steer and, at present
day markets, he would probably have
to pay 15 cents a pound, at least, for
this steer. I would say that the gov
ernment should guarantee him at least
17% or 18 cents for his steer when it
is finished out with the definite agree
ment that he would have to put on at
least 60 per cent more weight on
that steer before he could qualify for
the guaranteed price. He would also
have to be an experienced feeder,
having had at least three years’ experi
ence in feeding cattle and would have
to have the equipment and the feed.
“This would do several things. In
the first place it would encourage
many feeders, who cannot afford to
take the chance of a loss in feeding,
to put cattle in their lots. Second, the
feeder who always feeds would in
crease his feeding operations to the
full capacity of his equipment. Third,
it would eliminate slaughtering of
grass cattle by the packers and take
them out of competition with the feed
ers in the market. Fourth, it would
make a safe loan for any bank to
handle, almost r e g a rd l e ss of the
financial standing of the feeder, and
fifth, it would insure the feeder a
profit. Last and far from least, it
would double the production of beef.
“There seems to be, in my own
opinion at least, just one ‘fly in the
ointment’. These feeders might go
out and pay any price for the stocker
cattle. However, a ceiling on livestock

AND TRUST COMPANY
OF NEW YORK
S e r v i c e — M a in ta in in g an
intimate, personalized corre
spondent bank service.

| Out-of-Town

Experience-—Officials with
years o f service in this field,
assuring a knowledge o f re
quirements and valuable as
sistance.

O ut-of-tow n banks and bankers will find here
com plete banking facilities for prom pt and
economical handling o f accounts in Chicago. W e

Policy -—To

cooperate with
out-of-town banks rather than
compete for business which is
rightfully theirs.

would appreciate the opportunity o f serving you.

imm

mmm

C it y N a tio n al B a n k
ESTABLISHED 1908
MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION
-------------------------------------------- :-----------;-----------------------------

Northwestern Banker

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

June 19M

A N II T It 1 S T
2 0 8

S O U T H

CO M P AN V o f C h i c a g o
L A S A L L E

{Member Federal Deposit Insurance Corporation)

S T R E E T

33
on the hoof, as far as beef is concerned,
would eliminate that danger, but you
will find the growers in the range terri
tory opposed to this kind of a ceiling.
However, I say to you, with my experi
ence, even at this stage of the game,
the growers are making money on this
beef at much lower prices than they
are now obtaining for their cattle. Of
course, setting a ceiling on the live
animal would automatically set a
proper ceiling all the way down the
line.”

Y O U R BANK H A S A
JO B T O DO
(Continued from page 14)
school, and offer to conduct an in
struction project for a late afternoon
period for the seniors, at which the
bank staff can be present to show the
youngsters how to prepare the various
forms and checks used in their future
personal or business banking. Remem
ber—these high school boys and girls
will soon be your depositors and cus
tomers, and also citizens and voters
with a keen and critical interest in
their country and its way of life. (4)
Develop and maintain a small no
charge loan library of books and pam
phlets on banking, finance, and invest
ment, on taxes and bookkeeping for
small businesses and retailers, and, if
in a farming community, on agricul
tural economics. Fifteen to thirty
books, written for the interested lay
man, would be adequate for a start.
A letter to the dean of the school of
business of your state university will
bring you a list of such books and
pamphlets and where to get them, and
the cost will be slight.
To some this may sound like rather
expensive advertising; to others, like
high pressure propaganda. Property
handled, both of these ideas are wrong.
It need cost very little, and direct ad
vertising of one’s own bank is to be
avoided—though the indirect adver
tising and good will your bank will
get will be of great and increasing
value. As to propaganda—poppycock!
Any voicing of an opinion could be
defined as propaganda. What the writ
er has in mind is the supplying of hon
est, straight-forward, and valuable in
formation and, to a certain extent, edu
cation.
You will find meeting Mr. and Mrs.
Jones interesting, stimulating, and,
over the long pull, beneficial and profit
able; and you will at the same time
assume a responsibility that is yours
and that cannot safely be shrugged
off much longer.

is incidental, in the writer’s opinion),
direct if small profits will accrue to
you, which within the course of time
will more than carry the slight cost
involved. These profits will come
from decreased time taken in handling
business, due to greater knowledge
on your customers’ part of how to
deal with his banking, and from addi
tional sales of services sure to develop.

value of $25 each, and the surplus of
the company increased from $25,000,000
to $30,000,000 through the sale of
100,000 shares of additional capital
stock at $75 per share.
All but 2 per cent of the new
stock was subscribed for by the stock
holders of the company.
The offering was underwritten by
Morgan Stanley and Company and
associates.

Capital Stock Increased
John E. Bierwirth, president of The
New York Trust Company, has an
nounced that the capital stock of the
company was increased on May 18,
1943, from $12,500,000 to $15,000,000,
consisting of 600,000 shares of the par

Positive Proof
1st Baby (in maternity ward): I’m
a little boy baby.
2nd (of same): How do you know?
1st: My name is Henry!

—
... ............—

-------- :—

Post-W ar Planning
is one of the m o st t a l k e d - o f
topics of today.
O u r p la n s f o r th e p o s t - w a r
period will be a im e d t o w a r d
providing you with the best of
service under post-war condi
tions, just as our present plan
ning is directed toward giving
you the best possible s e r v i c e
under war-time conditions.

ST.

M em ber Federal Deposit
Insurance Corporation

L O U IS

88 Years
of Banking Experience

Beyond a doubt, too, (though this
Northwestern Banker

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

June 19^3

☆
Investment Help fo r
Busy Banks
Banks devoting much of their time and facilities
to furthering the war effort will find helpful the
services we can render in connection with United
States Governm ent securities. Our Investm ent
Departm ent executes prom ptly and accurately
orders to buy or sell all Governm ent issues.
Our Bank Advisory Division has helped a great many
correspondent banks with constructive suggestions
about how to diversify their holdings of “ Govern
ments’ ' with proper consideration of rate, maturity,
yield and redemption features. Inquiries invited.

First National Bank of Minneapolis
M em ber F ed era l D ep o sit In su r a n c e C orpora tion

<=■'2 ^ e p a t t m

e n t

M . 0 . G r a n g a a r d , Vice President
C . B . B r o m b a c h , Vice President

J ^ J a u L i

a n d .

( ffy a u L e t J

J- J. M

Volkm ann

Assistant Vice President

aloney,

K. T. M

a r t in ,

Assistant Cashier
Assistant Cashier

Bank Advisory Division, J. M . D o w n e s , Manager

A ffilia ted

Northwestern Banker June 19^3

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

with

rst

ank

tock

o rpo ra ti o n

Ringiand Named Vice
President of Guaranty
Trust, New York

M IN N E S O T A
NEWS
L. O. OLSON
President
M inneapolis

Severs Connection With
Wilmont Bank
In an announcement last month it
was revealed by the First National
Bank of Wilmot, Minnesota, that E.
W. Nun had severed his connections
with that institution as cashier.
In a transaction completed last
month, Mr. Nun sold his interest to
E. L. Meyer, who now has controlling
interest in the bank.

New Assistant at Lafayette
Alfred E. Precht is the first assistant
cashier of the Citizens State Bank of
Lafayette, Minnesota. Mr. Precht has
been employed in the Citizens State
Bank of New Ulm since August, 1926,
and has been one of the assistant cash
iers since 1937. The new position is in
the nature of an advancement for Mr.
Precht.
The Citizens State Bank of Lafay
ette is a strong financial institution,
having approximately $500,000 depos
its. V. F. Quist is cashier.

New Directors Named
On April 22d stockholders of First
National Bank of Minneapolis elected
as directors of the bank John H. Mac
Millan, Jr., and Henry E. Atwood,
both of Minneapolis.
As president of Cargill, Inc., Mr.
MacMillan heads one of the nation’s
largest grain firms. Mr. Atwood, vice
president of B. F. Nelson Manufactur
ing Company since 1936, was for nine
years associated with Minneapolis
Trust Company, former affiliate of the
bank, and for three years prior to en
tering the manufacturing business was
vice president of the First National
Bank in charge of its investment de
partment. He is currently chairman
of the Minneapolis Civilian Defense
Council.

Kern Resigns Bank Post
Ray G. Kern, one of the most widely
known men in Washington county,
has resigned as director and cashier
of the State Bank of Lake Elmo, Min
nesota.

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

W IL L IA M D U N C AN , Jr.
Secretary
Minneapolis

Mr. Kern sold his interest in the
bank, to local business men. Mr. Kern
became interested in the State Bank
of Lake Elmo by buying a controlling
interest in 1914 shortly after its or
ganization. The bank then had a capi
tal of $10,000 with deposits of $40,000.
Its present capital structure is $41,715.85, deposits $490,130.18, and total
resources $538,873.92.
F.
J. Schneider, president of the
bank, announced that in the resigna
tion of Mr. Kern as director and cash
ier, the bank lost a faithful officer,
who always had the utmost confidence
and support o£ the directors and the
public, and who has always had the
welfare of the community at heart.
Mr. Schneider announced the ap
pointment of E. A. Beutel as cashier.
Mr. Beutel has been connected with
the bank for the past 27 years, and
the last 25 years has been assistant
cashier.

Eugene W. Stetson, president of the
Guaranty Trust Company of New
York, has announced the appointment
of Joseph F. Ringland as a vice presi
dent of the company. Mr. Ringland
comes to New York from the presi
dency of the Empire National Bank
and Trust Company of St. Paul, Min
nesota. He will be identified with the
Guaranty’s banking department dis
trict that embraces the company’s rela
tionships in the states of North and
South Dakota, Nebraska, Colorado,

Increase in Capital
Chartered in 1914 with capital stock
of $10,000 the Farmers State Bank of
Pequot Lakes, Minnesota, has in
creased its capital stock to $25,000 and
now has over half a million in depos
its. Julius C. Nelson, president, has
been with the bank 28 years and A. C.
Larson, cashier, 23 years.

Bank Head Retires
Chris Fitzer, who has served as
president of the Luverne National
Bank of Luverne, Minnesota, since it
was organized in April, 1931, has re
signed his office because of ill health,
S. R. Hammer, executive officer of the
bank announced recently.
He will be succeeded by J. L. Goembel, vice president. His successor on
the board of directors has not yet
been named.

New Cashier at Darwin
Because of the retirement of Roy
Simms who is enroute to Fort Ban
ning, Georgia, to enter officers train
ing school, the Farmers State Bank of
Darwin, Minnesota, has a new cashier,
Leonard Lefgren, of Mora.

J O S E P H F. R IN G L A N D
N ew ly E lected V ic e President

Kansas, Missouri, Oklahoma, New
Mexico, Arkansas and Texas.
Mr. Ringiand was born in Wayne,
Nebraska, in 1901, the son of Harvey
S. Ringiand, who was associated with
the First National Bank of that city.
He received his early education in
Wayne, was graduated from Iowa State
College at Ames, Iowa, in 1924, and in
that year entered the employ of the
United States National Bank of Oma
ha, Nebraska, of which he later became
assistant cashier. From 1934 to 1936
he was vice president of the Great
Falls National Bank, Great Falls, Mon
tana, and for the next six years served
as president of the Stock Yards Na
tional Bank of South St. Paul, Minne
sota. He became president of the Em
pire National Bank and Trust Com
pany of St. Paul in January, 1943. He
is a director of both last named insti
tutions and of the Northwestern Mort
gage Company of Minneapolis.
Northwestern Bunker

June 19^3

A s e ctio n in th e S a fety D ep o sit V aults o f “ N orth w estern ”

. . . ROOM A-PLENTY IN

NORTHWESTERN’S SAFETY VAULTS
If the war bonds your patrons are bring
ing into your safety vaults fo r safe-keeping
are overcrowding your facilities . . . avail
y o u r s e l f o f s p a c e in “ Northwestern’ s”
Safe Deposit Vaults, as so m any banks
are already doing.

Y o u ’ ll find service is

dependable, a n d c o n v e n i e n t l y

prom pt.

Business d e t a i ls h a n d le d b y s p e c ia lly
trained personnel.
Absolute safety is assured. “ Northwest
ern’ s” Safety Vaults are fire p ro of, flood
p ro o f, riot p ro of— and under armed guard
night and day. M ake use of these fine,
m odern, s a f e v a u lt s . D e p e n d o n th is
“ Fortressed Security.”

USE "N ORTH W ESTERN " SERVICES
Department of Banks and Bankers
W

m . N. J o h n so n
V ice P resid en t

F. W . C o n r a d

D. E. C r o u l e y

L. P. G isvo ld

A sst. V. P res.

A sst. Cashier

NORTHWESTERN

NATIONAL

BANK

O F M INN EAPOLIS
Marquette A ven ue: 6tli to 7th Street
M E M B E R

Northwestern Banker

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Federal Reserve Bank of St. Louis

F E D E R A L

Jane 19^3

D E P O S I T

I N S U R A N C E

C O R P O R A T I O N

T w in C it y N ew s

ENRY D. THRALL, Robert L.
John and Walter P. Space have

joined Woodard-Elwood & Co.,
Minneapolis investment house, in ex
ecutive capacities.
All three had been associated with
Thrall West Co., which is discontinu
ing active business. The latter Arm
was organized in 1933, when banks
were required to discontinue their in
vestment business, taking over the in
vestment department of Northwestern
National Bank. Mr. Thrall was presi
dent and Mr. John secretary-treasurer.
In Woodard-Elwood, Mr. Thrall is a
director, Mr. John is vice president and
Mr. Space is manager of the trading
department, the same position he held
with Thrall West. Other officers of
Woodard-Elwood continue as before.
They include L. B. Elwood, president;
L. B. Woodard, vice president and
treasurer; E. C. Kibbee, vice president,
and E. F. Jacobs, secretary.
Edwin F. Kelley, Minneapolis super
intendent of Western Union Tele
graph Co. for more than 20 years, has
been elected a director of Marquette
National Bank, according to announce
ment by Ralph W. Manuel, president.
Mr. Kelley succeeds Eugene H. Day, a
member of the Marquette board 22
years, who resigned preparatory to
moving to Balboa, Calif.

The Minneapolis Clearinghouse As
sociation has appointed four men to its
committee for the annual meeting of
the Minnesota Bankers Association in
Minneapolis June 16th and 17th.
They are J. J. Maloney, assistant
cashier, First National Bank, chair
man; E. W. Engstrom, assistant cash
ier, Midland National Bank and Trust
Co.; William F. Kunze, vice president
Marquette National Bank, and L. P.
Gisvold, assistant cashier, Northwest
ern National Bank.

By Jam es M. Sutherland
Special Correspondent

Expanding its directorate from 18
to 20 members, Northwestern Bancorporation has added two outstanding
Northwest businessmen to the board—
Edward B. Cosgrove, president of Min
nesota Valley Canning Co., Le Sueur,
Minn., and John Morrell Foster, vice
president of John Morrell & Co., Sioux
Falls, S. D.
The two were elected at the regular
monthly meeting of directors in Min
neapolis.
Mr. Cosgrove heads the largest vege
table canning company in the United
States and is an officer, director, trus
tee or finance committee member of
several other firms and organizations
in the canning field.
Mr. Foster has spent his entire busi
ness life in the meat packing industry
and is active in aviation.
Paul W. Petterson, of Marquette Na
tional Bank, was named president of
Minneapolis Chapter, American Insti
tute of Banking, at the organization’s
annual meeting.
Other officers named were Christian
Ries, Federal Reserve Bank, first vice
president; Maurice G. Carlson, First
National Bank, second vice president;
Ralph Emerson, Northwestern Na
tional Bank, treasurer.
Elected to the board of governors
were Mariner Clerk, Federal Reserve
Bank; Lawrence R. Peterson, North
western National Bank;
Dorothy
Ahern, Lake street office, Northwest
ern National Bank.
Mr. Petterson •was selected as the
chapter delegate to the AIB war time
convention in Chicago in June.

Fortieth anniversary of American
National Bank of St. Paul was cele-

brated last month. Outgrowth of the
Northern Exchange Bank of St. Paul,
organized in the early ’90s, American
National included in its first board of
directors Otto Bremer, now chairman
of the board. Its present president,
H. B. Hu mason, has been associated
with the bank and its predecessor
since 1896, holding the presidency
since 1939.
John G. Rossman, owner and gen
eral manager of Model Launderers and
Dry Cleaners, and Carl R. Bergquist,
vice president and general manager
of Zinsmaster Baking Co., have been
appointed members of the advisory
board of the Lake Street Office of
Northwestern National Bank, Min
neapolis.
Clarence A. Wisby has been pro
moted to assistant cashier of Fifth
Northwestern National Bank, Minne-

J amieson
&

Com pany
M em bers

New York Stock Exchange
and

O ther

P rin cip al

E x ch a n ge s

★

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BONDS
COMMODITIES
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FARG O
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SIOU X FALLS

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Northwestern Banker

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

June 1943

•MINN E S O T A

N E W S '

tion’s nominating committee in Min
neapolis. Nomination usually is tan
tamount to election. Nominees are:
H. R. Kurth, Hutchinson, now vice
president of the association, for pres
ident; W. F. McLean, Duluth, vice
president, and A. P. Hechtman, Osseo,
treasurer.

apolis, an affiliate of Northwestern Na
tional Bank. He joined the latter bank
in 1928 and has been associated with
Fifth Northwestern most of the time
since.
Thomas A. Roden, associated with
the old Wells-Dickey Co. for the past
28 years, has joined the agency divi
sion of the trust department of First
National Bank of Minneapolis.

George E. Gere, 70, manager of the
safe deposit department of Empire Na
tional Bank and Trust Co., St. Paul,
died unexpectedly at his home late in
May. A St. Paul resident 45 years, he
had been associated with the bank 16.

Nominees for top posts in the Min
nesota Bankers Association were
named at a meeting of the organiza-

He was an organizer of the Minnesota
Safe Deposit Association and served
several terms as its president.
Six Minneapolis bankers will attend
the annual summer session of the
American Bankers Association’s Grad
uate School of Banking at Rutgers
University in June. They are Willard
W. Holmes and I). E. Crouley, North
western National Bank; Harold G. Mc
Connell and A. W. Mills, Federal Re
serve Bank; W. R. Chapman, Midland
National Bank and Trust Co., and A.
H. Moore, First National Bank.

Brief News
from Duluth
K ENNETH W. DENNIS, member of

64 years of
experience
to meet today’s
needs!
RESOURCES
O V E R $ 5 0 ,0 0 0 ,0 0 0

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FIRST

AN D

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D U L U T H , M IN N E S O T A
Affiliated W ith N orthw est B ancorporation
M em ber Federal

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the personnel staff of First and
American National Bank of Duluth
and immediate past president of Du
luth chapter, American Institute of
Banking, headed a staff of Duluth
bank employes which worked late
after-hours in promotion of the Second
War Loan campaign at the Head of
the Lakes city. His group composed
the auditing committee of a war bond
queen contest, and more than 15 mil
lion votes were tabulated before the
staff’s job was completed. Eighty-four
young women were candidates in the
contest. The queen christened a United
States coast guard vessel built by Ma
rine Iron & Shipbuilding Co., of which
Arnold W. Leraan, president, is a di
rector of Northern National Bank of
Duluth.
A Duluth banker was appointed by
Minnesota’s Governor Harold E. Stassen (before the governor left for active
duty with the United States navy as
a lieutenant commander) to be chair
man of the important Metropolitan
Airports commission, a body created
by the 1943 Minnesota legislature.
The Duluth banker is Lewis G. Cas
tle, executive vice president of North
ern National Bank of Duluth, a past
president of the Duluth Chamber of
Commerce, and now chairman of the
chamber’s aviation committee.
Placed with the airports commission
is the duty and responsibility of locat
ing where shall be constructed a cen
tral airport for Minneapolis and St.
Paul—an airport which, in the post
war vision of Minnesota leaders, shall
be the hub of a wheelwork of airports
covering the entire state of Minnesota.
Willard F. Ario, member of the
junior officer staff of First and Amer-

Northwestern Banker

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

June 19^3

EMPIRE
National
Bank
of Saint Paul
EXPERIENCE
The broad banking experience of our officers
enables them to offer valuable assistance in
meeting your many new banking problems.

CONFIDENCE
A comprehensive banking service for corre
spondents with full consideration for their
interests in every transaction.

FRIENDLINESS
An outstanding characteristic of this bank is
the cordial relations we have maintained
with our correspondents.

Serving St. Paul and the Northwest
Member Federal Deposit Insurance Corporation

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

Northwestern Banker

June Í9J,

MINN E S O T A
îcan National Bank, Duluth, was
elected president of the Duluth chap
ter of the American Institute of Bank
ing at the chapter’s annual meeting
in May.
Other officers chosen for the year
were Edwin B. Bredeson, City Na
tional Bank, first vice president; Ed
ward M. Erickson, Minnesota Nation
al, second vice president; Elaine D.
Langdon, Northwestern State, secre
tary; Roy W . Olson, Duluth National,
treasurer, and Mabel Refseth, Minne
sota National, Women’s committee
chairman.
Named to the chapter’s board of gov-

NEWS

ernors for two-year terms were Ann
Eydon, City National; Madeline McGee,
First and American, and Folke Young,
Northern National. Incumbent board
members whose terms expire in 1944
are Belle Riddle, Western National;
Violet Anderson, Pioneer National, and
Paul H. Peterson, City National.
Mr. Ario last January joined the
ranks of junior bank executives in
Duluth when he was elected an as
sistant cashier of First and American
National Bank. He began his career
with the bank as a messenger in Au
gust of 1928 and has worked in all de
partments of the Duluth institution.

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LIFE WITHOUT

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ILY HEAD RECOVERS AND GOES TO W O R K ."
"IT 'S G O O D FOR THE VICTIM'S BANK ACCOUNT
AND HIS LIFE INSURANCE TO ELIMINATE THE NEED
FOR DRAW ING O N THOSE RESOURCES TO COVER
LIVING EXPENSES AND THE COST OF TREATMENTS."
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PROTECTION OF HIS EARNING P O W ER ."
You can buy this essential "PEACE OF M IND " at an
extremely low cost in a reliable member-owned company
with more than 38 years successful service.

Mr. Ario will represent the Duluth
chapter at the AIB national conven
tion in Chicago June 9th and 10th.
Ration coupon banking, one of the
many war services Duluth banks are
performing on a non-profit basis, was
described in the May 16th magazine
section of The Duluth News-Tribune
under the title, “Odyssey of Your Ra
tion Coupons.”
Collaborating on the story were Syl
vester T. Strain, manager of the Du
luth Clearing House Association and
cashier of First and American Na
tional Bank of Duluth, and Margaret
Morris, News-Tribune staff writer. The
story said in part:
“The housewife who thinks she has
worries keeping her ration coupons
straight ought to speak to one of Du
luth’s bankers.
“Mrs. Housewife has her 16 points a
week for meats, cheese and butter, and
her 48 points a month for canned
goods, multiplied by as many mem
bers as there are in her family. Using
in the proper sequence and trying to
make them last over their periods of
validity is her principal concern.
“Consider, however, Mr. Banker.
“He’s the man who gets all the
coupons after you hand them over to
your butcher, to your grocer, to your
shoe merchant, or to your gas station
attendant.
“You think of coupons in multiples
of 16 and 48. He thinks of them in
terms of millions.”
The story took the reader through
the many intricate steps in which the
banks are engaged in ration coupon
banking until, at the end of the month,
“the banker, with two witnesses, hauls
the whole collection down to the fur
nace and tosses the coupons on the
flames.” The article concluded with:
“ Some 15,000,000 points are now be
ing handled daily by the city’s banks.
To take care of this business the banks
have had to establish separate clear
ance departments, which handle cou
pons only. The work is all done on a
non-profit basis as one of the many
war services banks are performing.
“And you think you have your
ration problems, Mrs. Housewife?”

There is no medical examination— simply write to the

Minnesota Commercial Men’s Association
Successful Insurance for Select Risks for more than 37 years.

Paul Clement, Secretary

2550 Pillsbury Ave.

Minneapolis, Minnesota

Northwestern Banker

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

June Î9J3

A collection of war posters from
every one of the United Nations except
Poland is being assembled by Albert
C. Armstrong, president of the North
western State Bank of Duluth.
The collection was put on display
in the bank as a promotion feature of
the Second War Loan drive in Duluth.
It is composed of duplicate copies
of works by master artists of Britain,

• M I N N E S O T A
Canada, China, Holland, Free France,
Czechoslovakia,
Scotland,
Russia,
Norway, Greece and the United States.
No posters have been available from
Poland since it was invaded by Ger
many.
Mr. Armstrong made a similar col
lection in World War I, and is as
sembling the World War II collection
for his sons.
Harold G. Glenn, a director of West
ern National Bank of Duluth and gen
eral superintendent of the Zenith Fur
nace division of Interlake Iron Corp.,
died in a Duluth hospital. He had been
elected a director of Western National
last January, and had been scheduled
to take office July 1st as president
elect of the Duluth Rotary Club. He
was 62 years old.

NEWS

•

1943 STREAM LIN ED
B A N K IN G
(Continued from page 28)
form of riskless fee income and other
income, consisting of rental from the
upstairs office room and other mis
cellaneous sources which brought in
$93, so the actual net earnings for
each $100,000 resource unit was $592,
which incidentally compares with $960
in the year previous.
By reducing the cost of interest paid
on deposits one-third we could have
added $132 to our earnings. The aver

age rate of interest paid by these
banks in 1942 was 1.54 per cent. Dur
ing last year and since many more
banks have made adjustment in the
rate of interest paid. This, of course,
is the easiest way in the world to
make money—to save it by reducing
expense.
Riskless fee income in some banks
pays its entire salary roll. If this can
be done by some it can be done by
others, so by scoring our best ball we
might, quite readily, bring the $438
of fee and other income up to the $793
expended for salaries and thus add
$355 to our net operating earnings.

Flags of the United Nations deco
rated the lobby of Minnesota National
Bank of Duluth in promotion of the
city’s Second War Loan campaign.
The flag display was arranged by B.
Murray Peyton, president, and Wilbur
F. McLean, vice president of the bank
ing house.

New Assistant
Joseph F. John has begun his new
duties at the Lee State Bank of Browerville, Minnesota. Mr. John takes the
place of assistant cashier Elmer Eickschen, whose resignation took effect
last month.

Resigns Cashier's Post
Mrs. Jessie Jensen has resigned her
position as cashier of the State Bank
of Taunton (Minnesota). Mrs. Jensen
began working at the bank July 1,
1913, and so would have been em
ployed for a period of thirty years on
July 1, 1943.

L E T ’S HELP PRODUCE
The banks of the country are an important part of the
war machinery necessary to bring about greater produc
tion of essential foods for our armed forces.

Meat and

meat products are among the most essential foods needed.
Our facilities are available to banks in need of assistance

A ccepts Treasury
Department Position
W. O. Sohre, who for a number of
years has been cashier of the State
Bank of Wood Lake, Minnesota, has
announced his resignation to accept a
position with the Treasury Depart
ment of the Internal Revenue. He will
be located in an office in Minneapolis
after June 1st.
Light Sentence
Rastus: How long did you get in
the jug for shootin’ yo’ wife, Moze?
Moze: Two weeks.
Rastus: Only two weeks for killin’
yo’ wife?
Moze: Yeah, then I gets hung.

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

in taking care of feeder loans to individuals which might
exceed the bank's legal limit, and such loans will receive
prompt and efficient attention.
W e offer a complete service to correspondent banks in
handling items, collections, or discounting loans.

★

The

★

Stock Yards National Bank
South Saint Paul, Minn.
M E M B E R F E D E R A L D E P O S I T IN S U R A N C E C O R P O R A T I O N

Northwestern Banker

June 1943

•
This may seem a long reach but ever
so many banks who have adopted
the Iowa uniform schedule and other
wise adjusted upward fees for serv
ices, report that they have doubled
their income from this source so I
contend this is perfectly within the
realm of realization to a well man
aged bank.
Now we turn back to Chart One and
find that at the close of last year we
have for each unit approximately the
same amount of cash ($35,260) that
we had at the close of the previous

MINN ESOT A

NEWS

year. Times changed mightily in that
12 months and have continued to
change during the current year. It
is no longer necessary for a country
bank to carry 35 per cent of its re
sources in cash. Many of its loans are
in corn and soy bean advances redeem
able by a government agency and
bearing IV2 per cent interest. These
are practically demand government
obligations that can be realized upon
overnight, so are quite as liquid as
cash; so too are the 90-day treasury
bills and Vs per cent certificates of in

More Meat, Please!

•
debtedness. The average country bank
might well take $20,000 from these
cash resources and invest it in gov
ernments. This $215 item is the result
of taking but $15,000 from cash and
investing it half and half in Vs per
cent certificates of indebtedness and
the second war loan issues of 2’s due
in 1950-52, $100,000 of which was made
available to every bank. If another
$5,000 were thus invested you would,
of course, add another $72 to these in
come possibilities. If the whole $5,000
was invested in Vs per cent certificates
of indebtedness the additional income
would be $43.75. If in 90-day treasury
bills, $19. This isn’t chicken feed
either for $19 is an addition of 12 per
cent to the average net interest in
come of $154 while $43.75 is an addi
tion of 28 per cent.

War Loan Deposit
The stockman today is a Number One worker for Uncle
Sam. With an unprecedented demand for meat and still more
meat, the livestock raiser and feeder must have the very best
of financial assistance back of him.
W e are prepared to help you in helping YOUR customers.
Consult us on your livestock problems— and use this bank
as your correspondent in Sioux City.

D I R E C T O R S
H arold C. B o s w e l l
Sec’y-Treas., W estern C ontracting Corp.
Sec’y-Treas., B. G-. Everist, Incorporated
Ca r l L. F r e d r ic k se n
P resident
Ch a r l e s R . M cK e n n a
President, Johnson B iscuit Co.
V ice President, Tolerton & W arfield Co.
Gen. Mgr., R obb-R oss Company

'/ A

B y r o n L . S iffo rd
Counsel
Sifford & W adden, Attorneys
G eorge F. S il k n it t e r
President, S ioux City Stock Yards Co.
President, Sioux City Term inal R y. Co.
President, Iow a R endering Company
President, Sioux Falls Stock Y ards Co.
President, Butte P ublic Stock Yards,
Butte, M ont.
M a r k A . W il s o n
V ice President

c '

LIVE STOCK
N

a t i o n a l
OF

5 /O I /X

a n k
MO W A

Ba*iÁ aJrth e
M em ber Federal D ep osit Insurance C orporation

Consider seriously the advantages
to your bank through qualification for
a war loan department account.
Each $100,000 in such an account
will yield your bank $380 a year addi
tional interest income if invested in
90-day treasury bills. This is assured
through the fixed price tender effec
tive for the first time in the offering
of treasury bills dated May 12, 1943,
wherein you are assured of acceptance
of tenders for 90-day bills up to $100,000 at 99.905 per $100. This brings you
$95 each quarter or at the annual rate
of $380 for each $100,000 of bills.
If you invested $50,000 in Vs per
cent certificates of indebtedness and
$50,000 in treasury bills your annual
rate would be $627.50.
This will help you recoup at least
a part of the cost of extra clerical help
required for war bond sales and ration
banking. The Iowa law requires that
state chartered banks obtain the ap
proval of the superintendent of bank
ing for the pledging of securities
against such an account but you may
be assured this will be promptly given
upon request. You are not required
to pay Federal Deposit Insurance Cor
poration assessment nor carry re
serves against such an account. It will
pay you to qualify, which is a simple
operation.
There is nothing mysterious about
this type of operation. It is different
from the way we learned to operate
but it is the 1943 streamlined method.
Except for those of you who continue
to have a good local demand for prime
loans there is no other way to operate
than to reduce the rate of interest
(Turn to page 45, please)

Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 19'f3

43
member of the board of directors of
the Farmers State Bank, Flandreau,
South Dakota, and is now working as
a teller in the institution, aiding to fill
in the gap created when C. H. Whealy
recently retired from the organization
to move to California.

SOUTH
D A K O T A

Bank Opens Branch
At Technical School

NEW S
H. N. THOM SON
President
Presho

A ctin g
M IL D R E D

Yankton Debits Show
Big Increase
The volume of bank debits in Yank
ton for the month of April, 1943, was
42 per cent greater than for the same
month a year ago, while figures for
this year to date showed a 43 per cent
increase in debits when compared
with the same four months of last
year.
For South Dakota as a whole, the
April debits total was only 40 per cent
higher than for the same month last
year, while for the four month period
the increase for the state as a whole
was only 28 per cent, compared with
Yankton’s 43 per cent.
For the entire ninth Federal Re
serve District, which includes all of
Minnesota, Montana, South Dakota,
and portions of Michigan and Wis
consin, the April, 1943, debits were
only 39 per cent above April, 1942, and
for the January-April period the gain
for the district was only 22 per cent.
This business indicator therefore
shows that Yankton is well ahead of
both the state of South Dakota and of
the ninth Federal Reserve in the in
crease over a year ago.

Beck Heads New
South Dakota Bank
A. J. Beck, Elk Point attorney, was
named president of the Bank of Union
County at a meeting of stockholders.
The bank opened on Monday, May 3d,
succeeding the Union County Bank
which began voluntary liquidation on
that date.
Other officers elected were O. D.
Hansen, executive vice president, who
comes from the American State Bank
in Yankton; Martin Kothe, cashier,
who has spent several years as exam
iner for the South Dakota banking de
partment; E. R. Arneson, vice presi
dent, who has headed the state seed
and feed loan program; Maxwell Bird,
assistant cashier, who has been asso
ciated with the former hank in that
capacity.
The board of directors will be com

A branch office of the Northwest Se
curity National Bank was opened at
Secretary
the Technical School, AAFTTC, in
S T A R R IN G
Sioux Falls, South Dakota, for the
convenience of army post personnel, it
was announced by R. M. Watson, pres
posed of A. J. Beck, O. D. Hansen, Ivar
ident of the bank.
Hayhome, E. R. Arneson and Edward
Under the management of G. Oliver
Holden.
Nordby, previously assistant cashier
at the downtown bank, the branch will
Bank Head Succumbs
offer all banking services, including
K.
E. Jacobson, president of the savings and checking accounts, bank
Farmers State Bank of Canton, South drafts and the sale of war bonds.
Dakota, died last month. He would
The office will operate under a spe
have been 70 in July.
cial permit from the United States
Born in Lincoln county, he had re treasury department.
No charge will be made for the cash
sided in Canton all his life, attended
Augustana Academy, and for 35 years ing of government checks at the post,
it was announced.
had engaged in banking.
E. M. Dean, who has been cashier
of the bank for maiy years, was elected
president to succeed Mr. Jacobson; P.
S. Paulson, vice president, and H. E.
Iverson, cashier. C. E. Anderson was
elected to complete the unexpired
term of Mr. Jacobson on the board of
directors. Other members of the board
BRANCH office of the Northwest
are Knute Ulrickson, O. G. Laxson and
Security National Bank was
Harold Bogue.
opened last month at the Army Air
Forces Radio School in Sioux Falls,
for the convenience of post personnel,
Liquidator's Office Closed
Liquidation office of Federal Deposit it was announced by R. M. Watson,
Insurance Corp., Receiver Whitewood president of the bank.
Under the management of G. Oliver
Banking Co., and St. Onge State Bank
establishment, Whitewood, South Da Nordby, previously cashier at the
kota, banking house, closed May 1st. downtown bank in Sioux Falls, the
Liquidation work is practically com branch offers all banking services, in
pleted and in the future this work will cluding savings and checking accounts,
be handled from the F.D.I.S. Liquida bank drafts and the sale of war bonds.
The office operates under a special
tor’s office at Ipswich, South Dakota.
permit from the United States treas
ury department.
GEORGE M. ST A R R IN G
Secretary-Treasurer
Huron
(In the Service)

Brief News

from Sioux Falls

Assistant Resigns at Oldham

H. E. Halligan, who has been em
ployed as assistant cashier at the Old
ham State Bank, Oldham, South Da
kota, for several months, severed his
connection with that institution the
first of May and returned to his home
in Bryant.

Quits Drugs to
Become Banker
After having been employed as a
pharmacist in the Olson drug store
since coming home from the first
world war, Basil Langan is going into
banking as an avocation as well as an
investment.
Langan has for some years been a

C. A. Christopherson, president of
the Union Savings Bank, received
wide recognition in the press of South
Dakota for an address on the dangers
of inflation, prepared for delivery be
fore the Sioux Falls Rotary Club.
Calling for a substantial increase in
federal taxes Christopherson said,
“Winning the war is our first job, but
we should have the courage and in
telligence to preserve our domestic
economy and to make sure that the
American dollar is worth 100 cents
after the war.”
Christopherson was also called upon
to give the main address at a pro
gram May 17th, sponsored by the Sons
Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 1943

•

SO U TH

of Norway and marking the Norwegian
Independence Day.
Speaking on “Norway and the war,”
he reviewed events which made the
day significant and paid tribute to
the influence which the peace-loving
country has exerted in a world at
war.

T he
N ew Y ork T rust
Com pany
Capital Funds . $45.000,000

IO O

BROADWAY

MADISON AVENUE
AND 40TH STREET

D A K O T A

N EWS

accepted the resignation of George K.
Brosius, assistant manager of .a branch
bank at Vermillion, South Dakota. A
veteran of the banking business, Bro
sius was elected to the bank’s advisory
board.

Minnehaha county reached 151 per
cent of its quota in the Joe Foss Vic
tory Loan campaign, organized by a
war finance committee of Sioux Falls
bankers, final tabulation revealed in
May.
Total war bond purchases were
$4,009,889.26, on a county quota of
$2,750,000. W. 4V. Baker, president of
the First National Bank and Trust
Company, was chairman of the war
finance committee. Other members
were R. M. Watson, president of the
Northwest Security National Bank;
T. M. Hayter, vice president of the
First National Bank and Trust Com
pany; T. S. Harkison, vice president of
the National Bank of South Dakota,
and W. C. Duffy, vice president of the
Union Savings Bank.

Sioux Falls bank clearings registered
a decline during April, when com
pared with record March levels, it was
reported by C. A. Christopherson, as
president of the Sioux Falls Clearing
House Association. But the showing
continued strong when compared with
levels of a year ago.
Without the stimulus of income tax
payments, bank clearings were re
ported at $13,023,666.51 for the month,
an amount 30.9 per cent above the
April, 1942, level, when clearings
were $9,942,593.15.
The increase reported in March was
47 per cent above the previous year’s
level.
Another reason for the slump was
a sharp decline in the cash value of
livestock receipts at the Sioux Falls
stockyards, where the gain of 33.3 per
cent over the 1942 level compared with
a 60 per cent gain in March.

Sioux Falls bankers lost an hon
ored friend last month, with the death
May 3rd of K. E. Jacobson, 69, presi
dent of the Farmers State Bank at
Canton, South Dakota. Mr. Jacobson
had lived in Lincoln county his entire
life, and had been engaged in banking
for 35 years.
John Barton, vice president of the
Northwest Security National Bank,
and F. J. Cinkle, cashier of The Na
tional Bank of South Dakota, were
named as team captains in the annual
YMCA-YWCA joint finance drive in
Sioux Falls. A goal of $27,500 was es
tablished in the campaign designed
to obtain funds for expansion of the
“Y” youth program in Sioux Falls.
Cinkle’s team was the first to reach
its goal, reporting subscriptions total
ling 101 per cent of its quota on May
16th.

TEN
ROCKEFELLER
PLAZA

★
BUY
WAR
BONDS

•

Pierce H. McDowell, vice president
and trust officer of the Northwest Se
curity National Bank, has been recog
nized by representatives of the United
States navy for yeoman service in as
sisting recruiting. McDowell is chair
man of the local committee for naval
officer procurement.

Reorganization of the Sioux Falls
chapter of the Izaak Walton League
for 1943 found William Perrenoud,
cashier of the First National Bank and
Trust Company, appointed chairman
of the Split Rock Lake committee. The
Split Rock project calls for construc-

M em ber o f the Federal Deposit Insurance Corporation

At their May meeting, directors of
The National Bank of South Dakota,

S ervin g

i6Thc H ills ** Sin ce Unid H ush Hugs
/ H R O U G H our main office and several of our branches, we have served South
Dakota and the Black H ills for more than half a century. W e take pride in the
developm ent and progress of the State and the area which we serve, and we con
tinue to offer increasingly com plete banking facilities to this region.

First National Bank o f The B lack Hills
RAPID CITY • LEAD © DEADWOOD • BELLE FOURCHE
HOT SPRINGS © STURGIS © SPEARFISH • NEWELL
Serving the Entire Black Hills Territory
A F F IL IA T E D

W IT H

Northwestern Banker

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

NORTH W EST

June 1943

B A N C O R P O R A T IO N

MEMBER

FEDERAL

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

•

S O U TH

tion of a large artificial lake four miles
east of Sioux Falls immediately after
the war. Land to be inundated has
adready been purchased by the South
Dakota Game and Fish Commission.
As state treasurer of Ducks Unlimit
ed, Inc., Perrenoud has also been busy
showing wild life films at meetings
of service clubs throughout south
eastern South Dakota.

1943 STREAM LIN ED
BA N K IN G
(Continued from page 28)
paid; obtain fees for services rendered;
and go all out in governments. A well
balanced program of bank investment
in government bonds is a requisite.
It is quite possible to obtain a fair
yield without going beyond 10-year
maturities and by keeping the major
portion of the investment maturing
within five years. A bank’s invest
ment program must work year in and
year out under all conditions, pro
viding a regular flow of income.
Spaced maturities of U. S. bonds will
provide that income and will not be
hazardous from an inventory stand
point.
Holding idle cash in anticipation of
an increase in interest rates is a policy
that can not be supported by sound
reasoning. It is not being conserva
tive as some bankers think. It is pure
speculation and in the meantime in
come is not coming in.
Increase in deposit totals will be
with us for a long time. We must
learn to make profits from them even
though we are required to operate on
a smaller margin than previously.

In W ar Finance Drive
One out of every three of the nation’s
bank employes was actively engaged
in the Second War Loan drive which
culminated in the sale of more than
eighteen billion dollars of government
securities during the month of April,
according to a nationwide survey made
by the American Bankers Association,
the results of which were presented to
the Secretary of the Treasury by the
A. B. A.
The survey shows that 97,800 out of
a total of 280,000 people employed in
the banks throughout the country took
an active part in the three weeks’
campaign, while at the same time
banking activities were continued
without interruption through the re
doubled efforts of all.
More than 11,000 of the nation’s
15,700 commercial banks, sa v in g s
banks, and trust companies partici
pated in the survey which showed that

D A K O T A

NEWS

97,852 bank people took an active part
in the three weeks’ campaign and that
in most communities bankers served
as chairmen of local War Finance com
mittees.
This service of the banking fra
ternity to the nation’s war effort was
acknowledged by Henry Morgenthau,
secretary of the treasury, in a letter to
A. B. A. president W. L. Hemingway
as follows:
“The bankers of the nation played a
large part in the successful First War
Loan drive. The results obtained in
the Second War Loan drive clearly

•
indicate that the bankers entered with
even greater energy and enthusiasm
the task of making this drive the
success that it was. I know that we
can continue to count on the fine co
operation of the American Bankers
Association and its member banks for
which we are most appreciative.”
Louder, Please
Testimonial to patent medicine con
cern: “For nine years I was totally
deaf, but after using your ear salve
only ten days, I heard from my
brother in Nebraska.”

S T A T E M E N T O F C O N D IT IO N

N O R T H W E S T SECURI TY
N A T I O N A L BANK
of S i o ux Fal l s, South Dakot a
“ South Dakota' s Leading Bank"
December 31, 1942
RESO URCES
Cash on H and, in Federal R eserve Bank, and Due from Banks
and Bankers ................................................................................................. $6,706,993.05
U. S. G overnm ent O b lig a tio n s ..................................................................... 8,416,234.85
State and M u n icip al B o n d s .............................................................
703,394.27
Other B onds and S e cu ritie s..........................................................................
445,430.79

Stock in Federal R eserve Bank in M in n e a p o lis ...........................................................
O verdrafts .................................................................................................................................
Loans and D is co u n ts ..............................................................................................................
B anking H ouses, Furniture and F ix tu re s ......................................................................
Includes Banking Houses at Sioux Falls, Brookings, Chamberlain,
Dell Rapids, Gregory, Huron and Madison, all clear of encumbrance.
Interest Earned but not C o lle c te d ............................................................
T O T A L ..........................................................................................................................

$16,272,052.96
30,000.00
1,845.21
4,676,788.44
344,516.51
71,500.97
$21,396,704.09

L IA B IL IT IE S
Capital Stock— Comm on .............................................................................$ 500,000.00
Surplus .....................................
500,000.00
U ndivided Profits and R e se rv e s.................................................................
192,747.14

R eserve for Interest, T axes, and Other E x p e n se s.....................................................
Interest C ollected but N ot E arn ed ..................................................................................
D ep osits .....................................................................................................................................

$ 1,192,747.14
53,037.40
10,798.34
20,140,121.21

T O T A L ...........................................................................................................................

$21,396,704.09

BRAN CH ES AT

BROOKINGS, CHAMBERLAIN, DELL RAPIDS,
GREGORY, HURON, MADISON
and

ARM Y AIR SCHOOL AT SIOUX FALLS
FRED H. HOLLISTER

Chairman

R A LPH M. W ATSON

President

Member Federal Deposit Insurance Corporation
Affiliated with Northwest Bancorporatlon

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

46
from 1934 to 1939 and was a director of
the First State Bank of Hebron, N. D.,
in 1938-39. He has been at the Mer
chants National in Fargo for three and
one-half years.

NORTH
D A K O T A
NEWS

J. O. M ILSTEN
President
Belfield

Completes Reorganization
W. H. Westergaard, C. B. Neal, Ron
ald Crighton, R. G. Rasmusson and J.
M. Brown have been announced as
new directors of the First National
Bank of AVilliston, North Dakota.
The announcement came after the
procedure of reorganization had been
completed, following sale of control
ling interest in the bank by J. Arthur
Cunningham and Mrs. A. F. Windel.
After the stockholders of the bank
had named the directors, the board or
ganized by electing Mr. Westergaard
as president, Mr. Neal as executive
vice president, and Mr. Rasmusson as
cashier, a position he has held since
1939.
There will be no change in the cler
ical force of the bank, it was an
nounced. Ruby Morehouse and M. A.
Thorson were named assistant cash
iers, and Jean Emde, Sylvia Larvick
and Arlene Snydal remain as tellers
and bookkeepers.

C. C. W A T T A M
Secretary
Fargo

Fargo News
assistant cashier of
•Merchants N a tion a l Bank and
RTrust
Company of Fargo, has been
H. BARRY,

appointed executive vice president of
the Fargo Chamber of Commerce, an
nounces J. D. Farnham, chamber pres
ident.
In the banking business in North
Dakota and Minneapolis for the last
ten years, Mr. Barry has submitted
his resignation to the Merchants Na-

Purchases Controlling Interest
O. A. Refling, of Drake, has pur
chased the controlling interest in the
First National Bank of Bottineau,
North Dakota, it was announced re
cently.
Refling has held an interest in the
bank at Bottineau for several years,
and has been serving as its president.
He is also president of banks in
Drake and in Fessenden.
R. H.

Redecorates Bank
Redecorating and repair work is
being done on the First State Bank
of Munich, North Dakota.

Changes Positions
Merrill O. Nelson has resigned his
position at the First State Bank of
Benson, Minnesota, to accept a posi
tion as assistant cashier of the North
western State Bank at Hillsboro,
North Dakota, and assumed his new
duties recently.
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19^3

BARRY

tional Bank and Trust Company but
will not make the change until a suc
cessor is chosen. However, the move
is expected about June 15th.
W. P. Chesnut, chamber secretary,
who suffered a heart attack five
months ago, has been given a year’s
leave of absence.
Mr. Barry began his banking career
with the credit departments of the
First National Bank of Minneapolis
and the First Service Corporation of
Minneapolis and was with the First
National Bank of Bismarck, N. D.,

William Stern, president of the Da
kota National Bank of Fargo and a
member of the Northwest Airlines,
Inc., board of directors for many years,
has been named assistant to the presi
dent of the Northwestern Aeronau
tical Corporation, Minneapolis.
Mr. Stern will serve as assistant to
John E. Parker of Washington, D. C.,
president of the Northwestern Aero
nautical Corporation who is a nation
ally known leader in the investment
banking field, being associated with
Auchincloss, Parker and Redpath at
AVashington.
A glider recently used on a test flight
was equipped with two light detach
able motors and was the first of its
kind so used. The Northwestern Aero
nautical corporation is a year old and
has been building troop transport glid
ers in the Twin Cities.

Founded in 1893 by the late Herbert
L. Loomis, the Northwestern Mutual
Savings and Loan Association on May
15th observed its fiftieth anniversary.
In those 50 years, the Northwestern
Mutual Savings and Loan Association
has enjoyed continuous growth and
today has more than 6,000 investors.
Since its organization, it has closed
13,829 loans on homes, aggregating
more than $37,000,000. Assets of the
firm has increased from $364,407.35 on
June 30, 1903, to $4,156,757.04 on May
1, 1943.
At the time of the firm’s founding,
Mr. Loomis was assistant cashier of
the Citizens National Bank of Fargo.
He served actively with the associa
tion until his death on May 28, 1938.
H. H. AYooledge, active president
since 1938, joined the association in
1901. A. M. Cornwall, viçe president
and secretary, joined Northwestern in
1910. James McGuigan, vice president
and treasurer, joined in 1906; Miss
Inga Nordhaug, assistant secretary, in
1907; L. F. Mische, assistant treasurer,
in 1929; H. H. Wooledge, Jr., assistant
treasurer, in 1938; Ruth Howard, in
1923, and William W. Wooledge, in
1942.
Directors are H. H. Wooledge, Sr.,
Mr. Cornwall, Mr. McGuigan, L. B.
Hanna, W. H. Shure, H. F. Emery and
H. T. Alsop, all of Fargo.
Clarence H. Olson, cashier of the
Merchants National Bank and Trust
Company of Fargo, has been elected
commander of the Gilbert C. Grafton
post of the American Legion in Fargo.

•

NORTH

He succeeds A. I. Johnson, Fargo at
torney.
Two Fargo bank employees have
been elected to offices in the Fargo
Junior Chamber of Commerce. AV.
R. Braseth of the trust department of
the Merchants National Bank and
Trust Company, was named second
vice president, and Ward Dwight, as
sistant cashier of the Fargo National
Bank, was named treasurer.
Marvin Campbell, formerly with the
Walsh County State Bank at Grafton,
N. D., recently was promoted to cap
tain in the army while on maneuvers
in Tennessee. He entered the army
in February, 1941, and was commis
sioned a second lieutenant in May of
1941.

Marked increase in the marketing of
livestock, grain and other farm prod
ucts is reflected in the 22 per cent in
crease of April bank debits in Fargo
over the same month a year ago, in
the opinion of Fargo bankers.
Bank debits, as shown in the Min
neapolis Federal Reserve report for
April, showed a figure of $30,293,000,
as compared to $24,751,000 for April
1942.
Some purchases of war savings
bonds during the April campaign are
reflected in that increase, bankers say,
but the increase for that purpose
would amount to about $2,000,000.
Remainder of the $5,542,000 boost re
flects the increased marketing, they
say.

DAKOTA

NEWS

with $24,751,000 in April last year, a
gain of $5,542,000 or 22 per cent.
Some of this gain may be due to the
bond sale campaign through April, as
most of the Fargo purchases would
be reflected in checks against individ
ual accounts—in other words bank
debits. But the Fargo purchases would
only account for something over $2,000,000 of the increase in April, and
bankers comment that there were
some bond sales in April last year, too.
“ I think that, in large measure, the
increase in bank debits is an evidence

•

of the larger numbers of livestock be
ing marketed, increased sales of grain
over a year ago, and the general in
crease in business transactions which
comes from this increased farm in
come,” said a Fargo banker.
Moorhead showed an even greater
gain. The Moorhead debits in April
were $4,082,000 against $2,603,000, a
gain of $1,479,000 or 57 per cent.
All North Dakota cities except Bis
marck show a big increase in April
debits compared to those of April,
1942.

What Correspondent
Banks Expect
Year after year correspondent banks
receive from Central Hanover the
service they want: speedy, accurate
attention to regular banking business;
assistance on investment portfolios;
intelligent cooperation at all times.

A North Dakota banker and one
from nearby Minnesota have been
named as the finance advisory and
planning board for the Fargo office of
the War Production Board, which cov
ers 19 North Dakota and 15 northwest
ern Minnesota counties, announces
Paul W. Fawcett, manager of the
WPB office. They are Fred Orth, pres
ident of the First National Bank of
Grand Forks, and O. U. Habberstad,
president of the Fergus Falls, Minn.,
National Bank.

CENTRAL
H A N O V E R
AN D

TRUST
NEW

B A N K
C O M P A N Y

YORK

Fargo Bank Debits Up 20%
Booming bank debit records in Far
go and other North Dakota and north
ern Minnesota cities, reflect increased
marketings of livestock, grain and
other farm products in the opinion of
Fargo bankers.
The Minneapolis Federal Reserve
Bank reports that Fargo bank debits
were $30,293,000 in April as compared
«

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Federal Reserve Bank of St. Louis

M E M B E R FEDERAL DEPOSI T INSURANCE C O R P O R A T I O N

Northwestern Banker

Jane 1943

SO U N D
B A N K IN G

SE R V IC E

OFFICERS
H. M. BUSHNELL, President

C. Y . OFFU TT, Trust Officer

E L L SW O R TH MOSER, Executive Vice President

A. L. V IC K E R Y , Cashier

V. B. C A LD W ELL, Vice President

E. E. LAN D STR O M , Assistant Cashier
E. W . L Y M A N , Assistant Cashier

★ R . H. M A L L O R Y , Vice President
T. F. M U R P H Y , Vice President

N. L. SHOLIN, Assistant Cashier

H. W . Y A T E S , Vice President

E. C. M cE L H A N E Y , Asst. Trust Officer
H. T. UEH LIN G , Assistant Trust Officer

H. E. ROGERS, Assistant Vice President

if In service of the United States

U N IT E D
W

a tic m

i£

»T A T E S
N

M E M B E R

Northwestern Banker

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

June 1943

K
FDIC

o fV m

a A

NEBRASKA
NEWS
R. F. C L A R K E
(O n leave of absence
w ith Red Cross)
Papillion

W M . B. H U G H E S
Secretary
Omaha

Takes Position With
Fairbury Bank

most of the time in Neligh, since the
AAA first was established.

John Rada, cashier and director of
the Citizens National Bank of Tobias,
Nebraska, resigned his position to ac
cept a position with the First National
Bank in Fairbury.
Mr. Rada has been connected with
the Tobias bank for 22 years.

New Employe

New Bookkeeper
Miss Elaine Wapelhorst has joined
the staff at the Farmers State Bank,
Scribner, Nebraska, in the capacity
of bookkeeper. She had been em
ployed in the county treasurer’s office
at the Dodge county courthouse for
the past 10 months.

"Bob" Clarke in Australia
Robert F. “ Bob” Clarke, president
Banking House of A. W. Clarke, Pa
pillion, Nebraska, has arrived safely
in an Australian port, according to in
formation relayed by the Red Cross
headquarters in New York to his sis
ter, Mrs. Doris Becker of Papillion.
He made the trip in one of the new
Kiser Munitions ships and had been
on the water perhaps six weeks, a long
trip these days of air planes and other
speedier means of transportation.
Mr. Clarke will be a district area
supervisor, and will have charge of
the Red Cross work looking after the
welfare of several thousand of Uncle
Sam’s soldiers.

To Coleridge
Alfred J. “Pete” Pilger, for a number
of years cashier of the Osmond State
Bank, Osmond, Nebraska, recently has
accepted a position in the Coleridge
National Bank at Coleridge.

Joins Land Bank
Vernon Nelson, chief clerk in the
Neligh, Nebraska, AAA office, has re
signed his position, effective June 1st,
and will become field man for the Fed
eral Land Bank at Norfolk. Mr. Nel
son has been associated with the AAA

Mrs. Stanley Wells is now employed
at the Lexington State Bank, of Lex
ington, Nebraska. She was employed
there for a time following her gradua
tion from high school a year ago.

Widow of Banker Dies
Mrs. Charles G. McEndree, 64,
widow of the late Charles McEndree,
president of the Frst National Bank,
Central City, Nebraska, died at her
home recently. She had been a Central
City resident more than 50 years.

New Bank at York
Plans are underway for the estab
lishment of a new banking house in
York, Nebraska, to be known as the
York State Bank. A charter has been
applied for and a suitable location is
under discussion.
According to announcement the
principal incorporators are Dean Sack,
Andrew Grosshans, R. W. Smith and
W. W. Harrington. With the excep
tion of Mr. Smith, all the men named
are well known residents and business
men of York. Mr. Sack came to York
from Gresham and Mr. Harrington
now of Fairmont, was formerly from
Lushton, while Mr. Grosshans has
been engaged in business here for
many years. Mr. Smith is from Iowa
where he is at present serving as
cashier of a bank in Boone and has
a record of experience in the banking
world.

G ag e County Bankers Meet
Bankers of Gage county, Nebraska,
held a dinner meeting and round table
discussion last month.
The bankers discussed various ways
of fixing service charges, found there
was nothing like uniformity among
them, and the variations were wide.
A simplified system was recommended
by those who studied service charge
problems.

L. Boyd Rist, Wymore, presided at
the round table and Ivan Hedge. Filley, acted as secretary.
Bankers present were: Henry Grauman, Adams; Ed Chittenden and H. J.
Riechers, Clatonia; C. C. Shoemaker
and A. F. Harms, DeWitt; I. W. Hedge,
Filley; Dick Reil and Wm. Vanderhook, Pickrell; L. B. Rist and Gordon
Jones, Wymore; F. J. Patton, Blue
Springs; A. Mayborn and W. E. Ander
son, Diller; Wm. and Tom Stanosheck,
Odell; E. A. Hubka, Walter Erickson
and Alfred Henzel, Virginia; Tom
Pogne, Liberty. Beatrice banks were
represented by E. C. Howey, W. C.
Black, R. W. Trefz, George Ryan, Ho
mer Hobbs, E. W. Austin, J. H. Doll,
W. W. Cook, Raleigh Mudge, Ray
Grupe.

Resigns as Assistant
Miss Dorothea Ehrenhard has re
signed her position at the Farmers and
Merchants National Bank in Ashland,
Nebraska, and has accepted a position
in the Iowa-Des Moines National Bank
of Des Moines, Iowa. Miss Ehrenhard
has worked in the F. & M. National
Bank in Ashland for nearly seven
years, and at the time of her resigna
tion was assistant cashier.

Colorado Bank Changes
Ownership
The First National Bank at Wray,
one of the oldest banks in eastern
Colorado, passed into new ownership
recently when M. B. Holland and Mr.
and Mrs. P. J. Sullivan sold the con
trolling interest to C. L. Mann and A.
L. Johnson of Denver. Mr. Holland
and the Sullivan’s started the bank
first as a private loan establishment
shortly after the turn of the century
and later made it into a national bank.

Strange Meeting in Tropics
A lonesome navy Seabee, far from
his friends and home in Cedar county,
Nebraska, was walking down the
street of an army post somewhere in
New Caledonia. His glance wandered
through the window of a headquarters
building. What he saw sent him dash
ing through the door.
“Where did you get that Bank of
Hartington calendar?” asked Lawr
ence Frerichs, son of Mr. and Mrs.
John D. Frerichs, Coleridge. “ Is there
anyone from Hartington here?”
A soldier called Tech. Sgt. Fredric
J. Stevens, a former Bank of Harting
ton employe, who has been stationed
in New Caledonia for some time. Al
though Stevens and Frerichs had nev
er met before, they enjoyed a session
about home folks.
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1943

•
Tobias Bank in Liquidation
The directors of The Citizens Na
tional Bank of Tobias, Nebraska, have
announced that they are placing their
bank in voluntary liquidation. The
announcement says:
“Owing to wartime conditions,” the
bank announces, “we are confronted
with increasing difficulties in the way
of transportation and securing com
petent help. Due to this, and with the
increasing difficulty of securing suit
able bank loans, the directors of this

RATION

N E B R A S K A

bank have deemed it wise to pay off
our depositors and creditors.”
On and after Monday, May 10, 1943,
the Citizens Bank of Tobias announces
that “the bank will accept no deposits
and will be prepared to pay all depos
itors and other creditors upon proof of
their claims.”

Speaks at Tapping
Ceremonies
Edward J. Hunwaldt, Grand Island,
Nebraska, banker, was the featured

BANKING

M o s t banks are taking R ation Bank
in g i n strid e . I t ’ s ju s t an oth er
splendid contribution to the war e f
fort which 1ends to the complexities
o f rationing a swift transfer o f credits
and a m uch needed audit control
not possible thru any other agen
cies. O n e m ore service stripe for
the fraternity!
Because there is little possibility for
profit you m ust watch your supply
costs. D o n ’t overload. D o n ’t buy
large quantities. W atch those inven
tories. Just think! A s this is written
you are carrying six different types
o f checks and six different types o f
deposit slips— to say nothing o f
other necessary form s— and the
chances are that the number will be
expanded even m ore. This
certainly establishes the need
for conservation. Perhaps
it is a nuisance to buy
s m a ll an d o fte n , but
th a t’ s th e o n ly safe
t h i n g t o d o as far
as r a t i o n f o r m s are

concerned. Here at D e Luxe we
started b inding checks 25 to the
b o o k and deposit slips 50 to the pad
in order to m ake them stretch twice
as far during the initial stages o f the
program. W e are glad we did because
otherwise inventories w ould by now
be out o f bound s.
Incidentally, as a further aid to con
servation, we have developed an
"a ll-p u rp o se ” P ro o f Sheet that we
think you will like. Sells at $ 1 .2 5 for
one hundred and $ 1 .0 0 for each ad
ditional one hundred. A n d o f course
we still carry all the approved R e so
lution Forms. W h e n you have o c
casion to re-order any R ation Bank
ing form s that need to be im printed
try, if possible, to allow tw o weeks
for delivery. Parcel post and express
shipments just aren’t getting
thru on schedule and it is
necessary^ to a llo w fo r
delays. O u r five plants
are pushing the orders
th ru v e r y f a s t b u t
delays in transit are
b e y o n d ou r c o n tr o l.

M a n u fa c tu rin g P la n ts a t
NEW YORK

CLEVELAND

NEWS

CHICAGO

KANSAS CITY

•
speaker at the National Honor Socie
ty’s tapping ceremonies at Central
City High School May 26th.

Former Genoa Banker Dies
Funeral service were held recently
at the Mrs. Anna B. Pugsley home
for Bernard Gorman, 60, former pres
ident of the First National Bank of
Genoa, Nebraska, who died in San
Francisco after a short illness.
His wife accompanied the body
back from the coast. Burial was at
Genoa Cemetery.

Names New Officers
The Nebraska League of Savings
and Loan Associations named Phil
Hockenberger of Columbus its pres
ident, and 95-year-old T. L. Matthews
of Fremont, dean of state association
officers, as president emeritus again.
Selected as vice presidents were
Will Rowe, Fremont; C. E. Grundy,
Grand Island, and E. M. Boyington,
McCook. Leslie E. Martin, Omaha,
was elected secretary-treasurer.

Retired Banker Dies
Stephen P. Duncan, 59, retired bank
er of Crawford, Nebraska, died last
month of a heart ailment at an Omaha
hospital where he had been a patient
since last January.

Assistant Leaves for Army
M.
C. Blazek, assistant cashier of
The Howells State Bank, Howells, Ne
braska, has enlisted in the officers
training course of the United States
armed service and left for service last
month.
Edward J. Honcik has been em
ployed as bookkeeper to assist at the
bank, according to L. R. Coufal, pres
ident.

r^TOOTLE-LACY
SIN CE 1 889 WE H A V E S P E C IA L IZ E D AS "A BANKERS' BANK"

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1943

51
the latter was in Nebraska to speak
at the Republican Founder’s Day ob
servance at Lincoln in March.
Edwin H. Van Horne, president of
the Federal Land Bank of Omaha, re
cently conferred the 50-year Masonic
membership badge on his father, H. C.
Van Horne, of Pawnee City, Nebraska,
at a ceremony there.
Both father and son are members
of Pawnee City Lodge No. 23, A. F. &
A. M., and the father is the oldest ac
tive banker in Nebraska, having
served the Farmers’ State Bank at
Pawnee City more than 50 years.

M. E. Welsh, Jr., former vice presi
dent of the Federal Land Bank of
Omaha, has been confirmed as presi
dent of the
Federal Intermediate
Credit Bank of Omaha by A. G. Black,
governor of the Farm Credit Adminis
tration at Washington.
Welsh took over his new duties last
month. He was nominated for the
post by FCA directors at a previous
monthly meeting, after Charles McCumsey, named as president original
ly, was rejected by Black.
Black’s “veto” of McCumsey “clari
fied the record,” McCumsey com
mented, and added: “ I am completely
satisfied.”
McCumsey said he had agreed to
allow the directors to nominate him
for the intermediate credit bank post
only after he had been “assured” that
he would be acceptable to Black. “The
record is now clear,” said McCumsey.
“ It is only Black who doesn’t want
me—not the farmers and ranchers of
the four states in the Omaha district.”
McCumsey said his friction with
Black dates back to 1940, when he re
fused to support the Jones-Wheeler
bill because he thought it would so
cialize machinery of the farm credit

administration.
McCumsey favored
continuation of the cooperative prin
ciples upon which the system was
founded, he said.
“ I am against any program for com
plete centralization of authority in a
governmental lending system, which
takes away local authority and re
sponsibility,” McCumsey declared.
Alvin E. Johnson, president of the
Live Stock National Bank of Omaha,
entertained at dinner recently at the
Fontenelle Hotel in Omaha for Glenn
Martin of Baltimore, president of the
Glenn Martin Company, airplane man
ufacturers, and for Mr. Martin’s moth
er, Mrs. Minta Martin, who stopped in
Omaha on their way to the east from
California.
Sharing honors were Mr. and Mrs.
G. T. Willey, newcomers to Omaha
from Baltimore. Mr. Willey is new
manager of the Martin Company’s
Omaha bomber plant.
Governor John W. Bricker of Ohio
has written Mr. Johnson, inviting the
Omahan to visit him when he is in that
part of the country. Mr. Johnson met
Governor Bricker (often mentioned as
a GOP presidential possibility) when

NATIONAL BANK

Nobody in the United States is going
to go hungry, R. M. “ Spike” Evans, ag
ricultural member of the board of
governors of the federal reserve bank
system and former national AAA ad
ministrator, said in Omaha recently.
He conferred at Omaha with Lloyd
H. Earhart, managing director of the
Federal Reserve Bank’s Omaha branch
and H. G. Leidy, president of the Fed
eral Reserve Bank of Kansas City.
There will be plenty of staples, al
though people may have to cut out the
fancy items in their diet, he predicted.
“We will be better fed than any com
bat nation in the world,” said Mr.
Evans, a native of Laurens, Iowa,
where he still owns and operates an
800-acre farm.
The number of employes of the Fed
eral Land Bank of Omaha, which
serves four states, has been reduced
from a peak of about 1,500 several
years ago to fewer than 500 now, it
was announced recently.
This is due, it was explained, to a
marked and “welcome” shrinkage in
the bank’s farm holdings. Four years
ago, the bank had acquired, through
foreclosures, a total of about 10,000
farms and ranches in Nebraska, Iowa,
South Dakota and Wyoming. Today
the number of farms held by the bank
is less than 1,000, mostly in Nebraska
and South Dakota.

ST. JOSEPH, MO.

M IL T O N T O O T L E , JR .
P R E S ID E N T

E . H . Z IM M E R M A N
V IC E P R E S ID E N T

R. E. W ALES

GRAHAM G. LACY
V IC E P R E S ID E N T

M IL T O N T O O T L E , III
V IC E P R E S ID E N T

FRED T. BURR I
ASST. C A S H IE R

C A S H IE R

e m

b e r

F e d e r a l

I n s u r a n c e

Northwestern Banker

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Federal Reserve Bank of St. Louis

D e p o s it

C o r p o r a tio n

June 1943

•
The farms sold have been purchased
almost entirely by former farm ten
ants, or by farm owners who increased
their acreage.
Eugene W. Burdic, 81, former Wash
ington county commissioner 20 years
and active in banking for 30 years,
died recently in Omaha at the home of
a daughter, Mrs. Robert Daugherty.
He came to Nebraska in 1878, settled
on a farm near Herman.

N E B R A S K A

NEWS*

His wife, three sons, including Lloyd
and Neil, of Omaha, also survive. After
services in Omaha, rites were held at
the American Legion hall at Herman,
Nebraska. Burial was at Herman.
Stephen P. Duncan, 59, retired
banker of Crawford, Nebraska, died
May 15th of a heart ailment at an
Omaha hospital, where he had been a
patient since January.
Survivors include his wife, one

daughter, Mrs. Kathleen Houston of
Crawford; one son, Donald, of Omaha.
Dr. John W. Duncan and James T.
Duncan of Omaha are brothers. Mrs.
Frank Davis of Crawford and Misses
Frances and Ann Duncan and Mrs.
Frank Roth of Omaha are sisters. Rites
were held in Omaha at St. Cecelia’s
Cathedral, with burial in Holy Sep
ulcher cemetery at Omaha.
Ford E. Hovey, president of the
Occidental Building and Loan Asso
ciation of Omaha, attended a meeting
of the executive council of the United
States Savings and Loan League in
Chicago recently.

For the first week in May, Omaha
bank clearings showed a gain of 63
per cent over the same week a year
ago, while bank debits at Omaha were
higher by 55 per cent.

ight now is the time to see
your custom ers in the
milling business — about new
wheat loans. The trend is for
millers to get the wheat in their
own elevators where they have
direct control over it.
In order to do this, m any of
them will need working capital
loans to carry this extra inven
tory. W e , at St. Louis Terminal

------------ %

W arehouse Company, can pro
tect these loans for you by
establishing a field warehouse
on your customer's premises.
Y o u h o ld th e w a r e h o u s e
receipts as collateral until the
loan is repaid.
C a ll a St. Louis Terminal
representative and let him give
you the details.

ST. LOUIS TERMINAL WAREHOUSE C O . ____________
,832 Clark Avenue, St. Louis, Missouri

I I W ith out o b lig a tion
p lea se send m e
com p lete in form a tion
o n F ie ld W arehou-se

N a m e .............................................................................T i t l e ............................
B a n k o r F i r m ...................................................................................................

Inventory L oa ns.

A d d r e s s .................................................................................................................

I I H ave a representa— tive s t o p i n to s ee m e .

C i t y ................................................................................ S t a t e .................. ..

You Said It
Nit: I hear they’re rationing shoes.
Wit: Yeah, everything for defense—
nothing for defeat.
W on at Last
“ See how the bride is blushing.”
“That’s no blush—that’s the flush of
victory.”
Arithmetic Problem
Mother: “ I certainly hope they
make an example of that silly aviator
who looped-the-loop fifteen hundred
times in three hours.”
Willie: (At his arithmetic lesson):
“They will, Mother, they will!”
Quiet, Please
“Don’t send me letters full of your
troubles at home,” writes a soldier
from New Guinea. “ I want to enjoy
this war in peace.”

* OF THE NATION IS OMAHA
OF OMAHA IS THE 1ST NATIONAL BANK
PLUS

OVER

Y E A R S OF E X P E R I E N C E
MAKES
THIS
HOME-OWNED
BANK
T H E L O G I C A L P L A C E F O R S E R V I C E AND
DEPENDABILITY— SEND US YOUR C A SH ITE M S
Northwestern Banker June 19^3

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Federal Reserve Bank of St. Louis

53
First National developed the mailbox
replica, and states that it has to be
refilled more often than he had ever
anticipated. The box is placed on the
counter in the lobby.

Changes at Burchard
Ben C. Wischmeier, vice president
of the State Bank of Burchard, Ne
braska, for the past ten years, passed
away last month. The institution lost
another employe when H. L. Schram,
assistant cashier, joined the navy and
left for Farragut, Idaho, for his basic
training. Mrs. F. H. Obermann, wife
of the cashier of the bank, has been
drafted into service in the bank as as
sistant to replace Mr. Schram.
has
resigned her temporary position
with the Extension Service at the
Agriculture College in Lincoln and has
accepted a position with the Conti
nental Nationwide Bank in Lincoln.

onna

jean

brusnahan

A “short” in the hand switch of the
National Bank of Commerce elevator

was the cause of two fire alarms.
Firemen were first called at 11:47
p. m. when the fire was discovered by
the night watchman. Shortly after
midnight they were again called to the
bank building for the same reason.
There was only slight damage to the
elevator, officials of the fire depart
ment said.
Earl Johnson, for some time assist
ant cashier of the Havelock National
Bank, has accepted a position with the
First National Bank in Lincoln.

Twelve

women

employes

interest at 3 per cent per month
on installment loans of finance compa
nies. This conflicted with a 9 per
cent designation on installment loans
by banks.
If the bills are approved in their
present form, banks will be empow
ered to make small loans at one-half
the interest rate charged by finance
companies. These loans, by banks, will
not apply on real estate where the
statutory limit still is 9 per cent.

Bank-by-Mail Envelope
Dispenser
The First National Bank of Omaha
has developed a unique method for
giving out bank-by-mail envelopes; a
miniature mailbox, which holds the
envelopes and then dispenses them
the same way paper towels are taken,
has been most effective in pushing
this service. John Lauritzen of the

N EW S A N D VIEW S O F
THE B A N K IN G W O R LD
(Continued from page 16)
where else. When in that fast ap
proaching hour victory shall suddenly
stand before our people, with its bless
ings in one hand and its burdens in
the other, may they be found ready.
But they will be ready only if their
consent as free men, whose will dom
inates the decisions of the State, shall
be purged of all things that are wis
dom’s enemies.”
Have you heard the new definition
of a Conference which is, “a group of
men who individually can do nothing,
but who, as a group, can meet and de
cide that nothing can he done.”
Claude F. Pack, president of the
Home State Bank of Kansas City, Kan
sas, and former president of the Kan-

of the

First National Bank were present at

an informal meeting recently at the
Lincoln Hotel.

Three Service Features

The Nebraska legislature »adopted

W e offer, among others, these three important

the suggestion of Speaker Robert Cros
by, North Platte, to eliminate “sugar
coating” and express terms of interest
in all bills relating to bank and finance
company loans uniformly.
Crosby’s motion empowers the bill
drafters to term the rate of interest
for finance companies at 36 per cent
per annum on declining balances, and
for small loans by banks at 18 per cent
per annum.
Hubka’s bill, as advanced, fixed the

service features of a bank which has "grown
up” with the community it serves—

BANKS

Bought and Sold

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
38 Years Satisfactory Service

THE CHARLES E. WALTERS CO.
OMAHA,

QUICK SERVICE in routing and presenting
checks and drafts.
DIRECT COLLECTION of items.
CORDIAL RELATIONS with every transac
tion, based on years of continuous service.

C ontinental N ational
B a n k
f
L I NCOL N
Member Federal Deposit Insurance Corporation

NEBRASKA

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Federal Reserve Bank of St. Louis

Northwestern Banker

June 19^3

•
sas Bankers Association, believes that
the American Bankers Association has
been doing a good job in fighting gov
ernment competition and takes ex
ception to some of the things which
E. E. Placek, president of the First
National Bank of Wahoo, Nebraska,
has been doing in criticizing the A.
B. A.
Mr. Pack has this to say about what
the national organization has been
doing:
“ Recently, the Independent Bankers
Association and the Nebraska Bank

1863

N E B R A S K A

N E WS

ers Association have both been very
much in the headlines concerning their
fight in combating competition from
Federal lending agencies. While it
is perfectly true that both organiza
tions have recently conducted quite a
vigorous campaign along those lines,
very few of the rural banks of Amer
ica know of the long and effective ef
forts which the American Bankers
Association through its Washington
office has exerted, before those who
only recently joined the chorus ap
peared aware of the danger.”

1943‘

*
The United States Department of
Commerce believes that when the war
is over we will have an era of “un
paralleled prosperity” in the United

States.
Lou E. Townsend, assistant vice
president and publicity director, Bank
of America, San Francisco, California,
and president of the Financial Adver
tisers Association, and Mrs. Townsend
were in Des Moines last month visiting
Mr. Townsend’s cousin, C. F. Town
send, 3521 Kingman Boulevard, and
their son, Private Warren Townsend,
an army air crew student at Drake
University.
While in Des Moines, Mr. Townsend
was a luncheon guest of Clifford DePuy, publisher of the N o r t h w e s t e r n
B anker.

'CORRESPONDENT B A N K

Relations

with The First National Bank of
Chicago assure prompt handling of
checks, notes, drafts and collections;
afford facilities for the exchange of
credit information, for checking in
vestment portfolios, and other bankto-bank services.
W ith The First National Bank of
Chicago correspondent bank relation
ship is one of long duration, having
been inaugurated in 1863.

Today

the Banks and Bankers Division is
handling a nation-wide business, and
invites accounts upon a basis that so
long has proved mutually satisfactory.

The First National Bank
o f Chicago

Charles B. Mills was in the east re
cently to say goodbye to Captain Miles
M. Mills and Captain Charles B. Mills,
Jr., both of whom have gone over
seas. Charlie’s son-in-law, Colonel
Shallene, is still at Birmingham, and
as Charlie says in a recent letter to the
N orthw estern
B anker,
“With two
grandsons in the navy, I feel proud
to wear five stars.”
Charlie is now at 808 Seventeenth
Street, Moline, Illinois.
Laurance Armour, Chairman of the
Board of the LaSalle National Bank of
Chicago, has issued a very interesting
booklet about his institution entitled
“Wings to Victory—A Study of Mod
ern Finance.”

This is a folder that explains “mod
ern finance for war peace” and tells
the story of “Chicago’s Most Modern
Bank.”
The booklet is a conversation be
tween “Pop and Junior,” both of
whom are making a tour through the
bank.
Preston E. Reed, Executive Vice
President of the Financial Advertisers
Association of Chicago has announced
that Dan R. Wessling, president of the
Wessling Services of Des Moines has
been appointed Chairman of the mem
bership committee of the F.A.A. for
the Hawkeye state.

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
MEMBER

FEDERAL

Northwestern Banker Jane 19k3

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DEPO SIT

IN SU R A N C E

CO R PO R ATIO N

OMAHA

• N EBRASKA
Frank G. Burrows, publicity di
rector of the Irving Trust Company,
New York, has announced the first of
a series of advertisements for the
Irving Trust Company, designed to
show how American commercial banks
are helping to win the war.
This series will be printed in color
in the magazine Time, and the cam
paign is scheduled to run every third
week until well into next year.
How bank credit is being employed
to advance the war effort is the subject
of the first advertisement.
Those
which follow will be based on actual
instances of Irving financing in the
production of mine sweepers, oil tank
ers, housing for war workers, food
for civilian and military consumption
and other essentials for war. Empha
sis is being placed on the many war
time services being performed by
commercial b an k s throughout the
nation.

A . I. B. Confe rence
OMPLETION of a program for the
day and a half Wartime Con
ference of the American Institute of
Banking, the educational section of the
American Bankers Association, in Chi
cago, June 9-10, directed at finding
solutions for the manpower problems
of banks and the development of war
time chapter leadership, is announced
by David E. Simms, national president
of the Institute, who is assistant mana
ger of the Salt Lake City branch of the
Federal Reserve Bank of San Fran
cisco.
The conference will be held at the
Drake Hotel from noon Wednesday,
June 9, through Thursday afternoon,
June 10. It will consist of four sessions,
these being a conference on manpower
problems and solutions, another on
chapter leadership, and two general
business sessions, plus the annual
national public speaking contest.
Decision to hold a briefed and
streamlined meeting devoted to the
most essential things was announced
last D e ce m b e r b y the Institute’s
Executive C o u n cil in deference to
wartime travel restrictions and bank
manpower shortage.
The first session of the conference
scheduled for Wednesday afternoon,
June 9, will include addresses on the
manpower problem and panel dis
cussions on the training of women in
banks, and meeting the educational
needs of bank people.
The national public speaking contest
will be held during the evening of the
first day and will be followed by the
first and brief business session.

N E WS

The second general business session
will be held Thursday morning, June
10. Officers will be elected at this
session. The closing meeting will be
on Thursday afternoon, June 10, with
a conference on chapter administra
tion, the theme of which will be the
development of chapter leaders in war
time.

Service Men Honored
The Chemical Bank and Trust Com
pany recently unveiled in the lobby
of its main office a plaque in honor of
the 295 members of the staff who are

•
now serving with the armed forces.
Percy H. Johnston, chairman of the
board, made a short dedicatory address
before the entire staff and the bank’s
string ensemble and chorus provided
a musical background.
Station T-TS-T
“Here lie the remains of a radio fan,
Now mourned by his many re
lations;
He went to a powder mill, smoking
his pipe,
And was picked up by twenty-one
stations.”

A lw ays Ready
W ith

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O F F IC E R S

AND

D IR E C T O R S

ALVIN E. JOHNSON
President

R. H. KROEGER

HOWARD O. WILSON

H. C. KARPF

Vice President

PAUL HANSEN
Cashier

H. H. ECHTERMEYER

C. G. PEARSON

L. V. PULLIAM

Asst. Cashier

H. B. BERGOUIST

L. S. BURK

W. P. ADKINS

Coal and Grain

Chicago

Chairman

T. E. GLEDHILL

LEO T. MURPHY

JAS. J. FITZGERALD

Farmer

Mgr. Allied Mills, Inc.

Pres. Commercial Sav.
& Loan Assn

HERMAN K. SCHAFER

CARL A. SWANSON

Pres. Maney Milling Co.

Pres. Jerpe Com. & Cold Storage Co.

J. L. WELSH

Butler-Welsh Grain Co.

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Federal Reserve Bank of St. Louis

June 1943

NEWS
B. A. GRON STAL
President

FRAN K W ARN ER
Secretary

Council Bluffs

Des Moines

Retires After 46
Years of Service
After more than 46 years of con
tinuous service with the Cresco Union
Savings Bank, Cresco, Iowa, W. H.
Tillson has resigned as vice president
and retired from business.
When Mr. Tillson commenced as an
employe in the bank in March, 1897,
his brother-in-law, the late Robert
Thomson, was president of that insti
tution. In April, 1898, Mr. Tillson was
elected a member of the board of
directors. He was chosen vice presi
dent in 1910 and so continued through
the remainder of his banking career.
Following Mr. Tillson’s resignation,
the board of directors elected A. J.
Thomson, president; J. A. Thomson,
vice president; J. P. Thomson, cashier,
and M. H. Webber, Miss Alice M.
Davis and Miss Frances Handke, as
sistant cashiers.

New Assistant at Laurens
Blaine Gildea of Lytton, Iowa, has
accepted a position in the Laurens
State Bank, replacing Don Miller at
his post.
Don Miller will be on a leave of ab
sence from the bank for the duration
only, and his job will be waiting for
him, when he returns, according to
E. K. Winne, bank president.

Joins Bank Staff
S. J. Marshall, former Atlantic drygoods merchant and school board
member, began work recently at the
Whitney Loan and Trust Company
Bank, of Atlantic, Iowa, and Paul Sand-

horst, employed at the bank for the
last four years, has been promoted to
assistant cashier.

Scott County Bankers Meet
Gerhard Bruns, vice president of the
New Liberty Bank and Trust Co., was
elected president of the Scott County
Bankers’ Association at the annual
meeting held recently in Davenport,
Iowa. He succeeds Louis Martin, as
sistant cashier of the First Trust and
Savings Bank, Davenport.
Other officers elected were: C. C.
Brown, assistant cashier of the Farm
ers’ Savings Bank of Princeton and
LeClaire, and Loyd Fromme, cashier
of the Northwest Bank and Trust Co.,
Davenport, secretary-treasurer.
A dinner preceded the meeting, with
all banks in the county represented.

New Cashier
Miss Betty Johnson, daughter of Mr.
and Mrs. Conrad Johnson is now the
new cashier at the First National
Bank of Newell, Iowa. She is filling
the vacancy of Eleanor Johansen who
resigned previous to her marriage.
Miss Johnson was employed at the
Peterson, Iowa, bank before coming
back to Newell.

Mr. Wilkinson has disposed of his
holdings in the bank to associates and
plans to retire permanently from the
banking field, in which he has been
interested for some 35 years. He will
devote his time to management of
farms he owns in north and central
Iowa.
E. W. Clark, chairman of the board,
was named to take Mr. Wilkinson’s
place as a president, holding both
offices. A. J. Marshall was named to
fill the vacancy on the board. R. A.
Potter is cashier and C. F. Weaver,
assistant cashier.

Changes at Grundy National
Dale Bee was named cashier of the
Grundy National Bank, Grundy Cen
ter, Iowa, succeeding Thomas J. Neessen who resigned April 1st.
Marcella Wanitschke has been en
gaged as bookkeeper.

Trust Officer and
Assistant Cashier
George B. Aden, widely known Web
ster City, Iowa, attorney, has just
been elected trust officer and assistant
cashier by the board of directors of
the Farmers National Bank of that
city.
He entered upon his new duties
June 1st.

Resigns as Cashier
A. J. Schueler, for the last 16 years
cashier of the Alburnett State Bank,
has disposed of his stock in the bank
and resigned. M. M. Strait, president
of the bank, will become active for the
present.
Deposits are now between $700,000
and $800,000.

Former Bank President Dies

Services were held last month for
Henry A. Giese, 83, who died of a
heart attack at his home in Baxter,
Wilkinson Retires as
Iowa. He formerly was president of
the Baxter bank and had extensive
Bank Head
C.
O. Wilkinson, a leading figure in property holdings there.
the organization of the United Home
Bank and Trust Company in Mason Marshall County
City, Iowa, has announced his retire Bankers Elect
ment as president and director of that
Cecil Orr, cashier of the Security
institution.
Savings Bank of Marshalltown, Iowa,

S carborough c Company
First National Bank Building, Chicago

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Federal Reserve Bank of St. Louis

Horace A. Smith. Iow a Representative
Des Moines, Iowa

Northwestern Banker

June 19^3

58
•

I O W A

N E W S

•

has been elected president of the Mar
shall County Bankers’ Association to
succeed W. L. Haesemeyer, president
of the Central State Bank of State
Center. Hugh McCleary, cashier of the
Peoples Savings Bank at Laurel was
named vice president and F. J. Paul
vice president of the Fidelity Savings
Bank of Marshalltown was chosen
secretary-treasurer.

Modale Savings Bank replacing Miss
Marietta Vittitoe who resigned to go
to California.

method of advertising recently, and
found that the public is skeptical
about accepting money when it is
offered.

Named Director

A pile of the new war pennies was
placed on a table in the lobby of the
bank with a sign inviting customers
to “take one with the compliments of
the bank.”

New Assistant at Modale

Novel Method of Advertising

Mrs. Pearle Jones has accepted the
position of assistant cashier at the

A. C. Thornburg, president of the
Iowa Falls State Bank, tried a novel

Mrs. Roy Warrior has been elected a
member of the board of directors of
the Union State Bank of Bridgewater,
Iowa, to succeed John McDermott, de
ceased.

Some read the sign, looked at the
pile of new silvery pennies—then
walked on. Mr. Thornburg said the
men were more skeptical than the
women.
The reason for the unusual method
of advertising was to acquaint the pub
lic with the new coins.

Bond Drive a Success
Nevada National Bank customers
rallied to the April Bond Drive and
subscribed for over $100,000 in bonds,
according to L. R. Bassett, cashier
of the bank.

Scholarship Award
William Howard, teller at the IowaDes Moines National Bank and Trust
Company, has been given the scholar
ship award made annually by the Des
Moines chapter of the American In
stitute of Banking to the person re
ceiving the highest grades in the chap
ter’s banking classes. Howard will
get a trip to the next convention of
the A. I. B. with all expenses paid.
Officers of the Des Moines chapter
have been re-elected for the coming
year. They are James R. Brown,
Iowa-Des Moines, president; S. G. Bar
nard, Bankers Trust, first vice presi
dent; Arnold Dressier, Central Na
tional, second vice president and treas
urer; and Eldred McIntosh, Iowa-Des
Moines, secretary.

ERE in C hicago we see a great aluminum plant spring from

idle prairie, a steel mill erected on form er swam p land, and

a giant airplane plant com e into being on the site o f a corn field.
Every day we see h ow well industry has met the challenge o f war.
Banks, too , are devoting all their efforts to assisting g overn

New Bank Director

ment and industry in the national em ergency. For this reason,

At the regular meeting of the board
of directors of the Union Bank and
Trust Co., Strawberry Point, Iowa,
Alfred Osterman was voted as a new
director to take the place of R. C.
Norris, recently deceased. Will Rieniets was elected president, to fill the
unexpired term, caused by Mr. Norris’
death.

the Am erican N ational believes that now, m ore than ever, cor
respondent banking relationships should g o far beyond routine
transactions. W e w ill be happy to cooperate with you in any
matters requiring a C hicago representative.

AMERICAN NATIONAL BANK
AND TRUST COMPANY
OF CHICAGO
LA S A L L E S T R E E T , f l
Member Federal Deposit

O U R

Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 19^3

i s

Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
TIM E LO C K EXPERTS

A T W A S H I N G T O N ____

Insurance Corporation

F. E. DAVENPORT & CO.
t o

h e

OM AHA

Wide World Photo

Destination...T O
Down she glides toward the sea— the float
ing fortress that carries the name— IOW A.
Her displacement, 45,000 tons. Her cost,
over $120,000,000. Her fighting power—
second to none.
Second to none, also is Iow a’s War
Bond Record. For nine out of twelve
months in 1942, Iowa led all states

in per capita purchases.
In one single
month of 1943, April, Iow a’s W ar Bond
purchases were more than enough to put
another “ Iow a” into service.
Earnest, effective effort by Iowa banks
and bankers has helped to make this record
possible. M ay there be no slackening of that
effort until the day of complete Victory.

B A N K ER S

T R U S T

FQEAICTORY
BU Y
U N ITE !»
STATES

WAR

" llt lllll

BONDS
AND

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Federal Reserve Bank of St. Louis

C O M P A N Y ttr

des moines

STAMPS

Group Meeting Gossip
Seen and Heard at the 1943 Group Meetings of the
Iowa Bankers Association
Oscar Helgerson, cashier, Houghton
State Bank, Red Oak, was in Texas
during the meeting of Group 5 at
Council Bluffs and therefore did not
preside as chairman of the meeting.
S. R. De Cou, cashier, First National
Bank, Woodbine, was elected chair
man for the coming year and con
ducted the meeting in the absence of
Mr. Helgerson.
Don C. Dougan, president of the
Iowa State Bank of Hamburg, was
elected secretary of Group 5.
Mr. Dougan told us of the battle
they had with the floods when the
Missouri River overflowed and he said
that farmers sold their crops and their
livestock, fearing that they would be
flooded out, and as a result, loans in
his bank went down $60,000 and de
posits up $50,000. Their total deposits
are now $1,500,000.

and in speaking on the policy of the
United States after the war, said, “We
should not give away everything we
have to all the countries of the world,
and thus bring our standard down to
theirs—why not let them work for
what they want the same as the United
States has done?”

B. A. Gronstal, president Iowa Bank

chief engineer,
Modification Plant, Glenn L. MartinNebraska Company of Omaha, gave a
very interesting talk on Japan and
China, where he lived for six years.

ers Association and president Council
Bluffs Savings Bank, Council Bluffs,
extended greetings to bankers at the
various sessions throughout the state

Herbert V. Prochnow, assistant vice
president, First National Bank of Chi
cago, spoke on the “Banker’s Steward
ship” and said that he was opposed to
the philosophy of urging people to buy
government bonds with the idea of
cashing them as soon as the war is
over and spending the money for
goods and merchandise, because the
market would not stand the dumping
of so many bonds at one time and that
all people should be urged to hold
their war bonds until maturity.
Charles

Day,

Bankers G o ^Jeeping^

Official U. S. N avy Photograph

At the U.S.N.A.S., Ottumwa, Iow a: From left to right in the jeep are M a x von
Schrader, cashier Union Bank & Trust Co., Ottumwa; Robert Root, chauffeur,
Chicago; M . C. Hook, Jr., assistant secretary Mississippi Valley Trust, St. Louis;
R. R. Rollins, vice president Bankers Trust Company, Des Moines; and Bert
K in g , Adel, Iowa.

Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 19b3

He went to China to build airplanes
and said that there are no mechanics
in China, and he spent his first year
teaching engineering.
He also said, “The worst atrocities
you have ever heard about the Japs
are an understatement.
I was in
Nanking when the Japs took it over
and I saw the Jap soldiers parade
down the main street of the city with
a baby on every bayonet. I have seen
them gather 15 to 20 Chinese soldiers
together, tie ropes around them, pour
gasoline on them and set them afire.
“Japan has an army of eight million
trained soldiers and she will never sue
for peace except to give her a
breathing spell for further war on the
United States.
“We will not win this war in five
(Turn to page 62, please)
A T THE IOW A GROUP MEETINGS—
The pictures on the opposite page were
taken at the recent Iowa Group meetings.
Those appearing, from left to right, are:
1— R. A . Potter, cashier United Home
Bank, Mason City; and A lb ert Halverson,
cashier Citizens State Bank, St. Ansgar.
2— H arry T. Huff, cashier State Bank, Ft.
Dodge, and chairman Group Tw o; and T.
H . Lekw a, assistant cashier Williams Sav
ings Bank, and president Hamilton County
Bankers Association. 3— George E. Porter,
vice president First National Bank, St.
Joseph, Missouri; and R ay W . Snyder,
cashier First St. Joseph Stock Yards Bank,
South St. Joseph, Missouri. 4— V iv ia n W .
Johnson, president First National Bank,
Cedar Falls, and next president Iowa Bank
ers Association; W . L . Spencer, president
Oakland Savings Bank; and S. R. De Cou,
cashier First National Bank, Woodbine,
and new chairman of Group Five. 5— A
group o f bankers waiting for the meeting
to start at Webster City. 6— C. H . Haesemeyer, president Union Trust & Savings
Bank, Stanwood, secretary Group Eight;
P. A . Dietz, president W alcott Trust & Sav
ings Bank, and chairman Group Eight; and
B. A . Gronstal, president Council Bluffs
Savings Bank, and president Iowa Bank
ers Association.
7-— Verne Bartling, as
sistant vice president First National Bank,
Chicago; Erw in Jones, vice president IowaDes Moines National Bank; Frank Covert,
assistant cashier Drovers National Bank,
Chicago; and Louis Jacoby, Chase Na
tional Bank, Chicago. 8— W . W . Blaiser,
president Farmers State Bank, Jesup, presi
dent Buchanan County Bankers Associa
tion; C. S. M cK in stry, vice president The
National Bank, Waterloo, secretary of
Group Seven; and John J. K ra ll, cashier
Fairfax Savings Bank, chairman of Group
Seven.
9— H ugh G. M cCleery, cashier
P eople’ s Savings Bank, Laurel, secretary
Group Six; H . L. Bass, executive vice
president City State Bank, Ogden, and
chairman Group Six; and M . F. Hender
son, cashier Peoples Trust & Savings Bank,
Indianola.

■*r

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Federal Reserve Bank of St. Louis

•
years if we do not get help to China
and establish bases in China from
which we can bomb Japan.”
George E. Porter, vice president of

the First National Bank, St. Joseph,
Missouri, attended the meeting of
Group 5 and visited with many of his
banker friends.
Mr. Porter has two sons in the
Service, one of whom has just been
commissioned a lieutenant (j.g.) in
the Navy and the other son, Captain
George E. Porter Jr., is a Jap prisoner
on Bataan.
Vernon Clark, Iowa administrator of

the War Savings Stamps, attended the
meeting of Group 5 and enjoyed his
trip so much to Council Bluffs that
he fell sound asleep and rode on over
to Omaha and had to taxi back to the
hotel at 10 p. m. Otherwise, Vern was
a very wide-awake young man.
George W. Woods, executive vice
president of the First National Bank
in Council Bluffs, received word re
cently that his daughter, Lieutenant
Harriet Woods, who has been in the

IO W A

NEWS

Army Nurses Corps at Ellington Field,
Texas, will soon be sent abroad.
Ray W. Snyder, cashier, First St.
Joseph Stock Yards Bank of South St.
Joseph, Missouri, attended the meeting
of Group 5 and reported that Joe A.
Greenfield, Jr., vice president of his
bank, was a “grand-dad again” , as his
daughter, Mrs. Julia Hauber of Wi
chita, Kansas, presented the family
with a baby boy.
M. Carl Hook, Jr., assistant secretary
of the Mississippi Valley Trust Com
pany, St. Louis, attended the Group
Meeting at Ottumwa and was “official
host” for his bank to many of his
friends and customers of that fine
institution.
Herbert L. Pollard, vice president of
the Union Bank and Trust Company
of Ottumwa and chairman of Group 10,
was presiding officer at the banquet
and did an excellent job. Herb was
the M. C., who is sometimes known as
master of ceremonies or marvelous
conducter, but in the banking business
it means more cash.

Fred S. Risser, president of the First
State Bank of Chariton, Iowa, has a
son, Lieutenant Commander R. 1). Ris
ser, who is in the submarine service
and who graduated from Annapolis in
1934. He also took postgraduate work
in chemical engineering at the Uni
versity of Michigan.
Leo J. Wegman, president of the
Citizens Savings Bank of Anamosa, in
welcoming the bankers in Maquoketa
said the way things were going in
Washington they will be “substituting
the eagle for the bull before long”.

C. A. Phillips, dean of the College
of Commerce of the State University
of Iowa and economist for the Federal
Reserve Bank of Chicago, speaking to
the bankers at Maquoketa, said, “The
price level at the close of all of our
great wars has been just about twice
the level at the beginning of the war.
Our price level will be about 130 at
the end of this year.
“At the close of the war there will
be a demand for between four and five
million new homes, a greatly increased
demand for automobiles, radios and
refrigerators. Our manufacturing ca-

CO N CEN TRA TED FOOD
Thanks to America’s newly expanded dehydration industry, our
armed forces on every front have a more nutritious diet. Because
dehydration makes tremendous savings in shipping space and
refrigeration possible. For instance, five ounces o f the golden pow
der that makes a wholesom e dish of scrambled eggs is the equiva
lent o f one dozen shell eggs, weighing about twenty-four ounces.
2. R E V O L V I N G C O I L S C H IL L the product in these vats to in
sure keeping the egg s w h oleso m e until they g o to the drier.

1. Y O L K S A N D W H IT E S are churned together thoroughly by special agitators
in these containers. Eggs are then clarified to rem ove shell and to insure a
perfectly hom ogeneous product.

D R O V E R S N A T I O N A L RANK
D R O V E R S T R U S T & SAV IN G S RANK
MEMBERS, FEDERAL

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3. T H I S H U G E D R I E R dehydrates e g g liquid alm ost instantly.
Its capacity is 5 m illion pounds annually; 72 5 pounds hourly.

Northwestern Banker June 1943

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Federal Reserve Bank of St. Louis

•
pacity will be very great and with a
large number of new inventions which
have been used in making army equip
ment, available for making civilian
goods, there is no reason why we
should not have a great period of
prosperity.
“After the war our main trouble will
be wages and labor and it will require
the best economic statesmanship we
can produce to handle these questions
satisfactorily.”
Registrations totaled about 125 at
the meeting of Group Six at Indianola.
It was at this meeting that W. H. Brenton, president of Brenton Banks, In
corporated, talked on the wage stabili
zation plan as it applied to banks. Mr.
Brenton has made an exhaustive study
of the law, and said he was sure it
would be worth the while of all banks
coming under the Act to classify their
employes in relation of position to
salary. He suggested doing the best
possible job to comply with the law
as each banker understood it, and to
keep an accurate record of changes in
position and increases made.
At Indianola also P. I. Bukowski,
assistant manager of the loan agency
of the RFC, Chicago, told bankers that
war takes material, men, and money,
and that it is the job of the local banks
and the RFC to handle the financing
problem incident to k e e p in g the
wheels of war production turning. The
RFC, he said, is prepared to share the
risk with banks which feel they do not
care to assume the burden them
selves. Mr. Bukowski spoke at all the
eight Group Meetings held last month.
Josh Billings, City National, Chicago,

the old mushroom maestro, accumu
lated several bags of these cow-pasture
edibles somewhere along the Group
Meeting trip, and at Webster City
Messrs. Billings and Frank Covert,
Drovers National, Chicago, persuaded
the cook at the local hotel to prepare
them. What supposedly were ack-ack
explosions, heard as far south as Des
Moines, turned out to be the smacking
lips of the two gentlemen as they
finished their feast.

IO W A

NEWS

•

Lake, and a past governor of the Chi
cago Fed., was slated to give the re
sponse to the address of welcome at
Webster City, but illness prevented his
appearance. The job was taken over
by John F. Gutz, president of the Pom
eroy State Bank.

or move any baggage until the all-clear
signal sounded. Several games of
chance of various kinds were in prog
ress when the blackout arrived, and
since it was a surprise affair, the parti
cipants naturally wondered what it
was all about, but could do nothing
but sit around in the hotel rooms and
chew their fingernails until the lights
came on again.

Late arrivals at Mason City, for the
Group Three Meeting, popped right
into a blackout scheduled for that area.
All lights in the Hotel Hanford went
out at the pull of a master switch, so
it was impossible to find one’s room

Practically all of those traveling
from one meeting to another stopped
over in Waterloo between the Group

For the Duration
This bank, like all banks, has enlisted lor the
duration. W e are selling war bonds every minute
and are doing everything the government asks us
to do.
On the home front, we are helping our customers
with "a ll out" service.

A s your correspondent in

Sioux City, w e invite your inquiry.

G. Sam,

J. P. Hainer, Vice President

President
J. R. Graning, Assistant Cashier

f ritz Fritzson, Vice Pres, and Cashier

E. A . Johnson, Assistant Cashier

J- T . Grant, Assistant Cashier

W . F. Cook, Auditor

Member Federal Deposit' Insurance Corporation

George J. Schaller, board chairman
of the Citizens First National at Storm

Banks Sold or Bought!
quietly, quickly and in

a personal

NATIONAL BANK

manner

JA Y A. W ELCH
BA N K BROKER
Haddam, Kansas

¿ o to c

Cctui

“35 Years Practical Banking Experience”

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Federal Reserve Bank of St. Louis

Northwestern Banker

Jane 19^3

64
At the same time, announcement
was made of Mr. Gadd’s election as
chairman of the board of directors of
the bank. He also will continue to
serve as vice president.
The change means that although
Mr. Gadd is retiring from the active
day-by-day management, nevertheless
he will continue with the bank in an
important advisory capacity.
Mr.
Gadd’s successor in the active man
agement is Harry T. Huff, cashier.

Buy Bomber to Blast Berlin

Adds New Tier of Boxes
Because of the demand for safety
deposit boxes the Valley State Bank,
of Rock Valley, Iowa, has added an
other bank of them in its vaults for
the accommodation of customers, the
supply of empty boxes having been
exhausted.
Most of the present unprecedented
demand for safety deposit boxes is
thought to be due to the desire of
war bond owners to have a safe place
for keeping their bonds.

Last Fall the Palmer State Bank, Palmer, Iowa, sponsored the sale of War Bonds
in its community and Pocahontas county o f sufficient amount to purchase a
bomber. The bonds were sold, and above is the result— the “ Spirit o f Poca
hontas.”
During the more recent Bond drive, the public was urged to buy
bonds to purchase six fighter planes to convoy the bomber. V . H . Reid, cashier
o f the Palmer State Bank, said that when the drive closed, not six, but seven,
fighters were assured.

Three Meeting in Mason City and the
Group Seven Meeting in Independence,
and it was here that Frank Covert
learned of the death in Michigan of his
father-in-law. Frank caught a train
into Chicago immediately.
Following the close of the Group
Seven Meeting at Independence, Iowa
Senator C. L. Rigby, director of the
State Hospital located near there, in
vited about twenty-five, mostly out of
state bankers, to have dinner at his
farm home located at the edge of the
Hospital grounds. The food, of course,
was delicious, especially the countryfried chicken, and it was decided that
all of the food served, with the ex
ception of a slice of pineapple and the
olives, was produced on the Senator’s
farm.
The State Hospital grounds consist
of more than 1,300 acres, with about
1,200 acres under cultivation, and 120
acres devoted to Hospital buildings.
The institution has a herd of 200 dairy
cattle, has about 1,800 inmates, and
requires a staff o f 270 p e rs o n s to
operate it.

Observes 40th Anniversary

The success of the Iowa Bankers
Association Group Meetings, which
have been an annual affair for many
years, is due largely to the tireless
efforts of Secretary Frank Warner.
Through his office in Des Moines, Mr.
Warner arranges the meetings, dates
and places, makes suggestions to the
several group officers as to speakers to
appear on the programs, gathers and
disseminates a wealth of information
on travel facilities between the group
meeting towns (no small task in these
days), and then is on the job at each
meeting to lend assistance whenever
called upon. At each meeting also Mr.
Warner outlines briefly what might be
termed the “state of the order”—
accomplishments of the Iowa Associa
tion during the past few months and
objectives to be attained. Hats are off
to Frank Warner for the manner in
which he gets things done.

C . W . G ad d Retires
Retirement of C. W. Gadd as man
ager of The State Bank, Fort Dodge,
Iowa, was announced recently.

An event of interest was quietly
observed last month when the First
National Bank of Logan, Iowa, com
pleted its fortieth consecutive year as
a member of the National Banking
System.
It was May 3, 1903, that the private
bank, organized by John Wood and
Sons November 1, 1888, became a na
tional bank.
John M. Wood of the private bank
was elected president of the new bank
and with him his sons, C. N. Wood,
vice president; Will Wood, cashier; and
B. J. Wood, assistant cashier, com
pleted its personnel.
At the death of John Wood in 1923,
C. N. Wood was elected president. B.
J. Wood was already cashier. C. N.
Wood passed away in 1941, and the
present officers are, Dr. L. M. Wood,
president, and B. J. Wood, vice presi
dent and cashier.
A distinguishing feature of the First
National Bank of Logan is that in the
fifty-five years of service here, the
affairs of the bank have been under
the management of one family.
The bank today is in the strongest
position ever attained by a Logan

S carborough &Lfo•MPANY
,

¿hyThiM&i,

JnAi

F irst N a t i o n a l B a n k B u ild in g , C h i c a g o

H o r a c e A . S m it h , I o w a R e p r e s e n t a t i v e
D es

Northwestern Banker

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

June 19k3

M o in e s , Io w a

IOWA

NEWS

bank. It is capitalized at $65,000, and
the total assets as of this month ap
proximate $1,200,000. This is undoubt
edly the largest total in the history of
any single bank in Logan.

Colfax, Iowa, Paul Monroe was named
president of the institution, succeeding
Dr. F. E. Boyd.
Mr. Monroe and his father, W. H.
Monroe, have purchased the interest
of Dr. Boyd in the bank.

Former Bank Clerk Now
Lieutenant Colonel

Dr. F. E. Boyd, the retiring presi
dent, has been connected with the
First National Bank for 35 years and
spent much of his time in the interest
of the institution. He plans to devote
his entire time to the practice of medi
cine, which at this time, with many
doctors in the army makes his services
more in demand than ever.

Murland E. Loes, native of Cascade,
Iowa, has been advanced from major
to lieutenant colonel. An expert in
commissary operation and subsistence,
he is a graduate of army schools in
Chicago and Philadelphia.

Named President
Ben W. Olson has been elected presi
dent of the Security Savings Bank of
Eagle Grove, Iowa. Orvin G. Uhr was
named vice president and cashier and
Dr. L. C. O’Toole of Le Mars was se
lected to succeed his father, the late
Dr. T. J. O’Toole as a member of the
board of directors.

New Bank Owners Take O ver
The sale of the First National Bank
of Stuart, Iowa, to its new owners has
been completed.
The new owners, who have pur
chased more than a majority of the
stock, are: Arthur T. Donhowe, vice
president Central National Bank and
Trust Co., of Des Moines, Donhowe &
Company, Des Moines, and R. L.
Bunce, deputy state bank superintend
ent, Des Moines.
All the shares of stock offered for
sale have been bought by the new
owners.
Four of the former directors have
retained some stock and were elected
as directors as follows: Frank Eckardt,
J. C. Potter, Everett Sherman and
Foster Davis. Mr. Donhowe and Mr.
Bunce were the other two directors
elected.
Officers elected were: Frank Eck
ardt, president; Chas. Kelly, vice pres
ident and cashier, and Miss Lucile
Lyddon and Miss Bethane Gerber,
bookkeepers.

This ê x /m ¿enee
may be useful
to you
• • •

Since 1868 this institution
has co-operated with banks
throughout the middle
west in extending credit
facilities to sound com
mercial borrowers.
This experience is at your
disposal without obligation.

LIVE STOCK
eA a / i e n a / BANK c / ' V /tc c tf/e
ESTABLISHED

At a meeting of the board of direc
tors of the First National Bank of

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

At their monthly meeting directors
of Union-Whitten State Bank of
Union, Iowa, elected LaMont Moore
to the office of assistant cashier.
Mr. Moore has moved his office to
the bank and with office help will
operate the general insurance busi
ness of the bank as well as continue
his own.
He has represented the Equitable
Life Insurance Co. of Iowa since Sep
tember 18, 1933, and began selling
other lines of insurance the following
year.

New President

A V A ILA B LE
Eperienced banker— now em ployed—
over draft age— desires to make new con
nection. Thirty years experience in both
city and country in an executive capacity.
Address inquiries to B ox H HH, N orth
w estern Banker, 527 Seventh St., Des
M oines-9, Iow a.

Named Assistant

U N IO N

/ j/ /

STOCK

1868

YARDS

? / i t * ¿ ¿ v e l i a t t f ifJe a / i

M em ber Federal Deposit Insurance Corporation

Northwestern Banker

June 1943

• IOWA

NEWS

He will assist the present staff with
their regular banking business and
look after outside contacts for them.

•

naval, scientific, and literary history
of the country.
The display covers a span of 186
years, the earliest having been drawn
in 1733 by Thomas Penn, son of Wil
Exhibit of Checks
V.
W. Johnson, president of the liam Penn, and the latest by Warren
First National Bank of Cedar Falls, G. Harding in 1919.
Iowa, tells of a historic exhibit in
Many of the checks are simple or
his bank of checks written by famous ders on the cashier of the bank, writ
Americans.
The exhibit includes ten on plain pieces of paper. The
checks of 72 men who were famous in smallest amount is 75 cents on a check
the early business, political, military, signed by President Fillmore. The

largest is $16,733 signed by Russel
Sage at the time he was a member of
the New York Stock Exchange. The
only certified check in the collection
is one for $3,500, drawn by “ Boss”
Tweed.
Included in the items is a check
signed by S. L. Clemens (Mark
Twain). Another, written by Robert
R. Livingston to the order of Robert
Fulton, is said to represent part of the
capital used in building the first steam
boat, the “ Clermont.”
A check of Thomas Jefferson’s car
ries the earliest date of nine which
were signed by presidents of the
United States. President Madison’s
check is signed, “yours respectfully.”

George W . Richter Retires

We figlit not toenslave,
but toset acountryfree,
and to make roomupon
tlieeartli for honest men
.om as

George W. Richter, 69, vice presi
dent, director and trust officer of the
Capital City State Bank, Des Moines,
Iowa, has retired after 52 years of con
tinuous service with that institution.
Friends of the banker say he must be
entitled to the “stay-in-one-spot” cham
pionship here, as he was born on the
corner where the bank now stands,
took his first job with the bank, and
has continued with it through more
than a half-century.
Richter, dean of Des Moines bankers
in length of service, entered the bank
as a messenger in the summer of 1891.
He was successively, bookkeeper,
teller, assistant cashier, cashier, and
vice president—an office he has held
for 20 years. He was given the addi
tional title of trust officer in 1933.
He will continue as a director of the
Capital City State Bank and the An
keny State Bank.

Pioneer Banker Dies
Henry H. Spalti, 78, pioneer Oakland
banker and businessman, died sud
denly at his home last month.
He retired from active business in
1917 and since then has devoted his
time to managing his real estate hold
ings.

MERCANTILE
B ank , an d

SAINT I

Northwestern Banker

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

June 19^3

COMMERCE
T ru st C om p an y
L O U IS

Leads Landing Party
A 1941 Creighton commerce grad
uate, Lt. Paul J. Kovar, 25, of Missouri
Valley, Iowa, led a detachment under
cover of darkness over unfamiliar ter
rain to help establish a United States
air base on Amchitka island, only 63
miles from Kiska.
His exploit was revealed recently
when announcement was made that
the island was occupied by United
States forces last January 12th.
Lt. Kovar’s parents are Mr. and Mrs.

.
John A. Kovar of Missouri Valley. His
father is cashier of the People’s State
Bank.

R. R. Rollins a
Lieutenant in Navy
Richard R. Rollins, vice president of
the Bankers Trust Company, Des
Moines, has been sworn in as a lieu
tenant (j.g.) in the navy, and ordered
to proceed to Washington, D. C., where

IOWA

NEWS

•
her parents, Mr. and Mrs. H. B.
Reyelts, in Sioux Falls.
Miss Reyelts, who has been em
ployed at the Rock Rapids bank for
the past seven years, has accepted a
similar position with the Northwest
ern Security National Bank of Sioux
Falls.

Company, Boone, Iowa, has resigned
and will open a new bank in York,
Nebraska, it was revealed recently.
Smith has been on the local bank staff
for more than three years, coming to
Boone from Grand Island, Nebraska.

Carlisle Cashier
Resigns Position

To Minnesota

Robert Pendry has resigned his po
sition as assistant cashier at the Hartford-Carlisle Savings Bank in Car
lisle, Iowa, where he has been em
ployed for the past 17 years. He is
making plans to go to Alaska to work
on United States construction work.

J. T. Heaney, who has been cashier
of the Burt Savings Bank of Burt,
Iowa, has resigned to accept a position
in the Kanabec State Bank at Mora,
Minnesota, where he began his new
duties last month. This bank is in a
county seat town and is a large insti
tution, the only bank there. Mr.
Heaney has been connected with the
local bank 12 years, and has also been
mayor of the town for some years. His
position in the Burt bank has not yet
been filled.

Leaves Bank
Miss Ruth Reyelts has resigned her
position in the bookkeeping depart
ment of the Rock Rapids State Bank
(Iowa) and will make her home with

COLLECTIONS
--------ON C LIN TO N --------R. R. R O L L IN S
Lieutenant in the N avy

he will report to the chief of the navy’s
bureau of supplies and accounts.
Mr. Rollins is a director of the
Chamber of Commerce, a member of
the city planning and zoning commis
sion and a former president of the
Wakonda Country Club.
He has been granted a leave of ab
sence from the bank. His wife and
their two daughters will remain in
Des Moines, for the present.
Mr. Rollins several months ago was
recommended for a commission as
major in the army specialists corps,
but the corps was discontinued before
commissions were issued.

Bank President Is Dead

YOU

are invited to send us all
collection items on Clinton!

W E promise prompt and efficient
attention! “Bang-up service”

NATIONAL

FI FTH AVENUE
SOUTH-226-

CLINTON, IOWA

21st year planning a d vertisin g program s
fo r banks and trust com panies . .
W r ite fo r Program K e y e d to W a r T im es.

C o u n s e l

Ray W. Smith, an assistant cashier
at the Boone State Bank and Trust

C & n to r t,
Member Federal Reserve
System and Federal Deposit
Insurance Corporation

T. J. Ainsworth, president of the
American National Bank of Arlington,
Iowa, since its organization in 1910,
died recently at the University Hos
pital at Iowa City, where he had been
a patient for four weeks. Born June
6, 1865, he had lived most of his life
in and around Arlington.

Resigns Bank Job

BANK

o n

B a n k

D . R . W E S S L IN G , P R E S ID E N T

b l

e l a t i

¿í A/[o ü 2£±, Ú oüJCI
Northwestern Banker

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

June 1943

IOWA

NEWS

Twenty-five Years Ago
Names in Northwestern Banker News From the
Pages of 1918 Issues
said, “When this war is finished,
Germany will not be permitted to con
tinue her nefarious work under the
“The third Liberty Loan went over same conditions and with the same
the top with greater ease than either objects in view. She has awakened
one of the previous loans.” . . . Francis all democracies to the necessity of
H . Sisson, vice president of the Guar standing firmly together if they are
anty Trust Company of New York, not to perish from the earth.” . . .
HE following news items were pub

lished in the N orthwestern B anker ,
25 years ago, in 1918.

★

G. Lonsdale, president of the
National Bank of Commerce in St.
Louis, said, “ The manufacture and sale
of non-essentials should be restricted
to such an extent as to release suffi
cient materials and labor for war
purposes—but only to that extent.” . . .
Fred W . Ellsw orth, secretary of the
Guaranty Trust Company of NewYork,
has recently become vice president
and director of the Hibernia Bank and
Trust Co. of New Orleans. . . . Frank
W arner, secretary of the Iowa Bank
ers Association, originated the plan
last year of having the group meetings
of the state on consecutive dates and
he has carried out the same plan this
year. . . . H arry Blaekhurn, vice presi
dent of the Iowa National Bank of Des
Moines, when he returned from his
last trip to China, brought George Mes
senger, superintendent of banking, a
number of Chinese coins. . . . C. H.
McNider, chairman of the Liberty
Loan Committee for Iowa, put the state
over the top and at the head of the
list in the recent campaign. . . . David
R. Forgan was p re s id e n t o f the
National City Bank of Chicago. . . .
Simon Casady was president of the
Central State Bank of Des Moines. . . .
M. T. Barlow was president of the
United States National Bank of Omaha.
. . . Luther Drake was president of the
Merchants National Bank of Omaha.
. . . H. D. Bostwick was president of
the Stock Yards National Bank of
South Omaha. . . . The Omaha National
Bank, of which J. H . Millard was presi
dent, had deposits of $31,000,000. . . .
A . O. Netland, president of the State
Bank of Northfield, Minnesota, had
deposits of $531,000. . . . E m il A . Boie
was elected cashier and a director of
the National Bank of Commerce of
Mankato, Minnesota. He had had 11
years banking experience and for
merly was one of the state bank ex
aminers. . . . The Scandinavian A m eri
can National Bank changed its name
to the Midland National Bank of M in
neapolis. . . . W . S. Davidson, cashier
of the Gallatin Trust and Savings
John

★

VALUABLE
WARTIME INFORMATION
FOR CORRESPONDENTS

O R R E S P O N D E N T S o f The
Northern Trust Company w ill find
here up-to-the-m inute information on
the subjects o f " V ” loans, municipal
and U. S. Governm ent bonds, and ration
banking. In addition, our banker-cus
tomers are free to draw upon whatever
o f our data and experience they may
find useful. You are invited to visit
our bank and consult our people con
cerning a connection here.

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

THE NORTHERN
TRUST COMPANY

Oldest and Largest in Des Moines
411 6th Ave.

Dial 4-7119

ELM E R E. M IL L E R
Pres, and See.

50 S O U T H LA SALLE ST R E E T , C H IC A G O

H U BE R T E. JAM ES
A sst. Sec.

FO R Y O U R E N JO Y M E N T . . .

Member Federal Deposit Insurance Corporation

Listen to the
“ W O R L D OF M U SIC ”
KSO, 1460 KC

★
Northwestern Banker June 19J3

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Federal Reserve Bank of St. Louis

★

9:30-10 :00 a. m. Sundays

69
Bank, Bozeman, Montana, since its
organization in 1902, was elected presi
dent of the institution, succeeding the
late H . A . Pease. . . . E . S. Edsall, who
has been the bookkeeper and assistant
cashier for the past 14 years, was
elected cashier to succeed Mr. David
son. . . . The Security Bank of W ebster,
South Dakota, which has $40,000 in
capital and $700,000 in deposits, was
admitted to membership in the Fed
eral Reserve system. . . . H . W . Paul
son was elected assistant cashier of
the First State Bank of Pierpont, S. D.
. . . H . E . W ildsang was elected cashier
of the Sterling State Bank of Sterling,
N. D. . . . I. E . Hansen, cashier of the
Equity International Bank of Fargo,
North Dakota, has resigned to become
associated with the First National
Bank of St. Paul.

of $100,000, is expected to open about
September 1st.
Officers are George Allbee, Mason
City, Iowa, president; J. Peter Olesen,
Waterloo, vice president; W. A. De
wees, Waterloo, cashier.

Incorporated 1933

Home Office
V A L L E Y B A N K B U ILD IN G

Des Moines, Iowa

This is Iowa's oldest surety company.
A

Hawkeye Mutual Hail
Carver Bldg.

this company is an asset to your bank.

•

Fort Dodge, Iowa

W rite to
Secretary and M anager

K
B a n k o f A m e r ic a ................................................. 26
B a n k e r s T r u s t C o m p a n y , D e s M o i n e s .. 59
C
47
10
67
32
53

G e o r g e L a M o n te an d
L e s s in g A d v e r tis in g
L iv e S to c k N a tio n a l
L iv e S to c k N a tio n a l
L iv e S to c k N a tio n a l

S o n ................................
C o m p a n y ....................
B a n k , S io u x C ity .
B a n k , O m a h a ..........
Bank, C h ic a g o ....

M
M e r c a n tile -C o m m e r c e B a n k an d T r. Co.
M e rc h a n ts M u tu a l B o n d in g C o m p a n y . . .
M e rc h a n ts N a tio n a l B a n k .............................
M in n e s o ta C o m m e rc ia l M e n ’s A s s n ............
M issis s ip p i V a lle y T r u s t C o m p a n y ..........

58
50
68
62

N a tio n a l C ity B a n k o f N e w Y o r k ............
N e w Y o r k T r u s t C o m p a n y ...........................
N o r th e rn T r u s t C o m p a n y ................................
N o r th w e s t S e c u rity N a tio n a l B a n k ..........
N o r th w e s te r n N a t’l B a n k , M in n e a p o lis

E m p ire N a tio n a l B a n k an d T r u s t C o .. . . 39

O m ah a N a tio n a l B a n k .......................................

E
F
26
31
38
44
54
34
52
55
30
63
24

Though selections may not be large and
substitute m e rch a n d ise d is p la y e d — rest
assured we are doing our best to serve
your immediate requirements—-and at the
same tim e e n th u s ia s tic a lly support our
country in the “ A ll- O u t W a r Effort."
"B u y U . S. Bonds and Stamps"

6
44
68
45
36

ESTABLISHED

S T A T IO N E R S V
1889
^ BOOK B IN D E R S
OFFICE O
U TFITTER
T F IT T E RSS ^ -------- ^ ^ - ' ' b USINESS MACHINES
OU

Grand Av e .

Fourth

De s Moines , Ia .

P h ila d e lp h ia N a tio n a l B a n k ......................... 23
P u b lic N a tio n a l B a n k an d T r u s t C o......... 32
S
St. L o u is T e r m in a l W a r e h o u s e C o ............
St. P a u l T e r m in a l W a r e h o u s e C o..............
S c a rb o r o u g h an d C o m p a n y ............ 25, 57,
S ta te A u to m o b ile In s u ra n c e A s s ’n . . . 2 7 ,
S to c k Y a r d s N a tio n a l B a n k , St. P a u l. . .

52
21
64
28
41

T o o t le -L a c y N a tio n a l B a n k ....................50, 51

U n ite d S ta te s N a tio n a l B a n k ......................
U n ite d S ta te s T r e a s u r y D e p a r t m e n t. . . .

IMMEDIATE
SALES

I o w a -D e s M o in e s N a tio n a l B a n k & T r . Co. 72

48
71

K
B r o t h e r s ........................................................

66
69
2
40
33

W e 'v e had our problems in the past, and
we’ve successfully met them.
W e have
our problems today— and with your help,
we can overcome them again.

T
69
4

K och

3
69
42
56
65

C o m p a n y ..................................

•

E. H. W A R N E R

an d

hfty

A llie d M u tu a l C a s u a lty C o m p a n y ............ 27
A m e r ic a n N a tio n a l B a n k an d T r u s t C o .. 58

J a m ie so n

are proud of our hundred and

Insurance Association

tfriè z x Ç)o

H a w k e y e M u tu a l H a il In su ra n c e A s s n ..
H o m e In su ra n c e C o m p a n y .............................

progressive company with experi

enced, conservative management.

To be the exclusive representative of

The bank, which has a capitalization

F a r m e r s M u tu a l H a il In su ra n c e C o . . . .
F e d e ra l In te r m e d ia te C red it B a n k s . . .
F ir s t and A m e r ic a n N a tio n a l B a n k . . .
F ir s t N a tio n a l B a n k o f th e B la c k H ills
F i r s t N a tio n a l B a n k , C h ic a g o .................
F ir s t N a tio n a l B a n k , M in n e a p o lis ..........
F ir s t N a tio n a l B a n k , O m a h a ......................
F ir s t N a tio n a l B a n k , St. J o s e p h ...............
F ir s t N a tio n a l B a n k , St. L o u i s .................
F ir s t N a tio n a l B a n k , S io u x C i t y ............
F ir s t W is c o n s in N a tio n a l B a n k ...............

bank agents in Iowa.

Formation of a new Waterloo bank
was announced, coincident with the
approval of articles of incorporation
for the Peoples Savings Bank by M.
W. Ellis, state superintendent of bank
ing.

F . E . D a v e n p o r t and C o m p a n y ............ 54,
D e L u x e C h ec k P rin te rs,
In c .....................
D e s M o in e s B u ild in g , L o a n & Sav. A s s n .
D r o v e r s N a tio n a l B a n k ..................................

BONDING
COMPANY

Twenty-four
Years of

A New Bank at W aterloo

C e n tra l H a n o v e r B a n k an d T r u s t C o ...
C e n tr a l N a tio n a l B a n k and T r u s t C o ...
C ity N a tio n a l B a n k , C l in t o n .........................
C ity N a tio n a l B a n k an d T r. Co. C h ic a g o
C o n tin e n ta l N a tio n a l B a n k , L i n c o l n . . .

MERCHANTS
MUTUAL

C h a rle s E . W a l t e r s ..............................................
J a y A . W e l c h ...........................................................
W e s s lin g S e rv ic e s ...............................................
W e s t e r n M u tu a l F ir e In s u ra n c e C o .........

52
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Northwestern Banker

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

June 1943

IN THE DIRECTORS' ROOM
She Really Did
The papers recently carried a story
about a New York woman who fainted
when the air raid warden of the large
apartment in which she lived told her
the woman in the apartment above
kept a pet rooster. When she had been
revived, she explained, “You’ll have to
pardon me, but for the past three
months I’ve been under the care of the
most expensive psychiatrist in New
York—because I kept hearing roosters
crow!”
Trouble Brewing
The officer of the day entered the
guard-room and found it empty except
for a private who, stripped to his shirt
and trousers, was lounging on a chair
and smoking a pipe.
“Where’s the sergeant of the guard?”
demanded the officer, angrily.
“Gone across to the sergeant’s mess
to have a drink, sir,” replied the pri
vate.
“And the sentries?”
“ In the canteen, sir.”
“Then, confound it, what are you do
ing here?”
“Me, sir?” was the reply. “ I’m the
prisoner.”
M ore! M ore!
The war was over. Hitler’s death
had finished it. And the corporal who
had helped lay the body well and truly
underground was describing the scene.
“The Germans put the coffin down
twenty-five times,” he said.
“Twenty-five times,” echoed his lis
teners. “What for?”
“Encores,” said the corporal.
Honesty
Executive (interviewing applicant
for position): “Are you absolutely hon
est, straightforward and trustworthy?”
“Yes, indeed, I am decidedly just
that, sir!”
“ If you should enter this office to
morrow and find a wallet containing
$100,000, what would you do?”
“What would I do? I’d do nothing
and live on my income.”
A Wise Crack
Several men were traveling by train.
Presently one produced a large fruit
cake, which he devoured greedily.
Time passed. Suddenly he began
groaning and doubling himself up and
straightening out again. When this
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19k3

had gone on for some time, a friend
asked him:
“ ’S’matter, Jim?”
“That cake I ate,” groaned the suf
ferer. “ It had nuts, and I think the
missus forgot to shell them.”
“Lor!” said his friend. “And can
you crack ’em just by bending?”
Pineapples, Maybe
“ Come on, Liz, there’s the air raid
siren!”
“Wait a second, I got to go back and
get my false teeth.”
“What do you think the’yre drop
ping, sandwiches?”
Cold Indeed
A new farm hand from the city was
told, one wintry morning in the small
hours, to harness the mule. In the
dark he tackled one of the cows in
stead of the mule. The farmer shouted,
from the house, “ Say, what are you
doing? What’s keeping you so long?”
“ I can’t get the collar over the
mule’s head,” shouted the new farm
hand. “His ears are frozen.”
There’s a Difference
“Dad, what is inertia?”
“Well, if I have it, it’s pure laziness,
but if your mother has it, it’s nervous
prostration.”
An “ Oldie”
A traveler in Ireland stopped for a
drink of milk at a white cottage with
a thatched roof, and as he sipped his
refreshment, he noted, on a center

E very tim e I date the L ieutenant, he
wants to know if I ’m hiding any m ilitary
s e cre ts !

table under a glass dome, a brick with
a faded rose upon the top of it.
“Why do you cherish in this way,”
the traveler said to his host, “that
common brick and the dead rose?”
“ Shure, sir,” was the reply, “there’s
certain memories attached to them.
Do you see this big dent on my head?
Well, it was made by that brick.”
“But the rose?” asked the traveler.
His host smiled quietly.
“The rose,” he explained, “is off the
grave of the man that threw the
brick.”
Don’t Throw It
She Moron
(visiting a railroad
round-house): “What’s that enormous
thing?”
He Moron: “That’s a locomotive
boiler.”
She: “Why do they boil locomo
tives?”
He: “To make the engine tender.”
New Definition
A woman is a person who can hurry
through a drug store aisle 18 inches
wide without brushing against the
piled-up tinware and then drive home
and knock off one of the doors of a
12-foot garage.
“ Highway” Robbery
The Sunday drivers had picked the
farmer’s fruit and his flowers, and
their car was full of plunder. Point
ing to an unexplored highway, they
inquired of the farmer:
“Shall we take this road back to
the city?”
“You might as well,” replied the
farmer, “you’ve got almost everything
else!”
Too Blind
A slender young private, obviously
a newcomer to the armed ranks,
lounged against the guardhouse, puf
fing nonchalantly on a cigarette. A
captain passing by stared at him in
credulously. “ Can’t you see that sign
ten feet in front of your eyes,” cried
the captain, “which distinctly says ‘no
smoking’?”
The soldier regarded him sadly.
“ Captain,” he said, “if I could read
that sign, I’d be in the navy now.”
Her Mistake!
Tipsy Blonde (at cosmetic counter):
Shay, Toots, I want the besh stuff you
got for circles under the eyes.”
Salesgirl: “Er-r-r — Ah-h-h — Liquor
department, four aisles over.”

h e year 1943 promises to be the grimmest, hardest
year this country has ever faced. Every effort, and
every dollar of national income not absolutely needed
for existence, should go into war work and War Bonds.
In the Pay Boll Savings Plan, America finds a potent
weapon for the winning of the war—and one of the
soundest guarantees of the preservation of the Amer
ican way of life!
Today about 30,000,000 wage earners, in 175,000
plants, are buying War Bonds at the rate of nearly half
a billion dollars a month. Great as this sum is, it is not
enough! For the more dollars made available now, the
fewer the lives laid down on the bloody roads to Berlin
and Tokio!
You’ve undoubtedly got a Pay Roll Savings Plan in
your own plant. But how long is it since you last checked
up on its progress? I f it now shows only about 10% of the
gross 'payroll going into War Bonds, it needs jacking up!
This is a continuing effort—and it needs continual at

tention and continual stimulation to get fullest results.
You can well afford to give this matter your close
personal attention! The actual case histories of thou
sands of plants prove that the successful working out of
a Pay Roll Savings Plan gives labor and management a
common interest that almost inevitably results in better
mutual understanding and better labor relations.
Minor misunderstandings and wage disputes become
fewer. Production usually increases, and company spirit
soars. And it goes without saying that workers with sub
stantial savings are usually far more satisfied and more
dependable.
And one thing more, these War Bonds are not only
going to help win the war, they are also going to do much
to close the dangerous inflationary gap, and help prevent
post-war depression. The time and effort you now put in
in selling War Bonds and teaching your workers to save,
rather than to spend, will be richly repaid many times
over—now and when the war is won.

You’ve done your bit f t Now do your best!
This space is a contribution to v ic to ry today and sound business tomorrow b y The Northwestern Banker

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Federal Reserve Bank of St. Louis

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