Full text of The Northwestern Banker : June 1944, Forty-Ninth Year, Number 683

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JUNE
1944

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Federal Reserve Bank of St. Louis

T H E F IF T H W A R L O A N
Back the Attack— Buy More Than Before

How to Keep Your Community Interested in Your Ban
Page 13

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AS W E SEE IT !
Good correspondent service, as we see it, is the kind of effi
cient, friendly cooperation you would receive if you were
our one and only correspondent.
On this foundation the Merchants National Bank has been
built.

On this premise we will continue to serve.
A CEDAR RAPIDS BANK

CEDAR
R A P ID S

SERVICING ALL IOWA

MERCHANTS
NATIONAL BANK
OFFICERS
J a m e s E. H a m il t o n , Chairman
S. E. C o q u il l e t t e , President
H. N. B o y s o n , Vice President
R o y C. F o l s o m , Vice President
M a r k J. M y e r s , V. Pres. & Cashier
G eorge F . M il l e r , V. Pres. & Tr. Officer
M a r v in R. S e l d e n , Vice President
F red W. S m i t h , Vice President
J o h n T. H a m il t o n II, Vice President
R. W. M a n a t t , Asst. Cashier
L. W. B r o u l ik , Asst. Cashier
P eter B a il e y , Asst. Cashier
R. D. B r o w n , Asst. Cashier
O. A. K e \r n e y , Asst. Cashier
S t a n l e y J. M o h r b a c h e r , Asst. Cashier
E. B. Z b a n e k , Building Manager

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published monthly by the De Puy Publishing Company, at 527 Seventh St., Dès Moines, Iowa. Subscription, 35c per copy, $3.00 per year.
Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.

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Federal Reserve Bank of St. Louis

• It is our earnest desire to meet all the demands for
Allen W ales A dding Machines, but as a result of our
effort in the manufacture of vital war materials, we
may build only a limited number of adding machines.
If you are in need of Adding Machine Equipment, we
suggest that you get in touch with our nearest agency
or write to our home office for further information.

ALLEN W WALES

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Federal Reserve Bank of St. Louis

ADDING MACHINE CORPORATION
4 4 4 Madison Avenue, New York, N. Y.
A WHOLLY-OWNED

S U B S I D IA R Y

THE NATIONAL CASH REGISTER CO.

ARGENTINA

Buenos Aires
Flores
(

Buenos Aires)

Plaza Once
(

Buenos Aires)

Rosario
BRAZIL

Rio de Janeiro
Pernambuco
Santos
Sao Paulo
C A N A L ZONE

Balboa
Cristobal
CHILE

Santiago
Valparaiso

The Local Bank

COLOMBIA

w ith a

Bogota
Barranquilla
Medellin

W orld-W ide V iew point

CUBA

Havana
Cuatro Caminos
(

Havana )

Galiano
(

Havana)

La Lonja
(

h e t h e r

exact banking service you want.
N ational C ity offers a thorough fam iliarity w ith busi
ness conditions throughout the 48 states.
A nd thirty years o f overseas experience have made
N ational C ity a recognized authority on Latin-A m erican
business and ways o f doing business.
T h is intim ate know ledge is all important today. T w o w ay trade between the A m ericas is solving mutual prob
lems o f new markets and new supplies.
T o our business and affiliate banking friends we bring a

ENGLAND

London
II7, Old Broad St.
11, Waterloo Place
INDIA

Bombay
MEXICO

Mexico City
PERU

Lima
PUERTO RICO

San Juan
Arecibo
Bayamon
Caguas
Mayaguez
Ponce

view point gained by serving m illions of customers all over
the w orld.
O ne piece of a d v ice w e offer now is the sam e ad vice
w e h ave given in every period of peace and w a r;

R E P U B L I C OF

PANAMA
Panama

the bonds of the United States Governm ent have
been, and are, the best investm ent in the w orld.

THE N ATIO N AL CITY B AN K
OF N E W Y O R K

Havana

Caibarien
Cardenas
Manzanillo
Matanzas
Santiago

simple or com p lex— N ational C ity offers the

URUGUAY
Montevideo
VENEZUELA

Caracas

Branches in China Japan
and Philippine Islands are

F IR S T I N W O R L D -W ID E

B A N K IN G

Head Office:

65 Branches in

55 W all Street

Greater N ew Y ork

M E M B E R

F E D E R A L

N orthw estern Banker June 194-4
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Federal Reserve Bank of St. Louis

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

in enemy territory

CORRESPONDEN T BAN KS
IN

EVERY

C O M M E R C IA L L Y

IM P O R T A N T

C IT Y

W ORLD

TH E

The F.B.I. S e a l sh ow n a b o v e , is r e p r o d u c e d in this
a d v e r t is e m e n t with the a p p r o v a l o f J. E d g a r H oo v e r,
D ir e c t o r o f t h e F e d e r a l B u re a u o f I n v e s t i g a t i o n .

The Federal Bureau of Investigation is Uncle

fer of funds by check. La Monte Safety Paper

Sam 's own "arm of the la w ". This organiza

proves a potent instrument of Law and Order

tion acts on espionage, sabotage and other

— and one which performs a dependable

^ V IC T O R Y

violations which threaten the internal security

service to bankers and businessmen. This

BUY

of these United States. The F .B .I.'s record

product safeguards against forgery and alter

is a brilliant one — its efficiency is so thor

ation so effectively it has become the ac

oughly recognized and respected that it has

cepted "safety standard" in check protection

become this nation's most powerful w eapon

—the choice of a great majority of the nation's

in curbing Federal crime. »

leading banks and business organizations.

STATES

WAR
BONDS

L e t ’s a ll

In the trans

For Sam ples of La M onte Safety Paper see
you r Lithographer or Printer —or write us direct

PAPER

G EO R G E L A M O N T E & S O N , N utley, N . J.

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Federal Reserve Bank of St. Louis

BACK THE ATTACK

N ote that the issuing orga niza tion's Trade-M ark is
th e p a p e r i t s e l t — th u s p r o v i d i n g i n d i v i d u a l
i d e n t i f i c a t i o n o n both th e front and b a ck o f the ch eck .
in

forgotten. . .
Somewhere, deep In enemy territory, our captured

— is one of the great unsung stories of this Avar.

soldiers wait out the duration. Herded in prison

Supplementing this help to our caged fighting

camps, the shining event in their routine is the

men, the International Red Cross, the parent or

periodic arrival of a link from home— the American

ganization, is authorized to transfer messages from

Red Cross package.

prisoners of Avar to their homes. Thus a two-way

Listen to the stories of exchanged prisoners—

channel of communication between those hraAre

hear them tell you that it was the food packages

captives and their homeland functions regularly.

sent through the American Red Cross that literally

Y e t— this is but one of the many great services,

kept many of them alive, and kept hope and faith

in war and in peace, performed by the American

alive in all of them. For the work of the

Red Cross. It is Avith a feeling of sincere

American Red Cross in sending needed food

gratitude that we salute this unique, essential

— and comforts such as clothing and tobacco

and most humane of institutions.

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This is the third, o f a series o f advertisements dedicated to the American R ed Cross by

TH E H OM E IN SU RA N CE COMPANY, N E W YO R K
FIRE

•

AU TOM OBILE

•

MARINE

NORTHWESTERN
T h e fo llo w in g letters w ere re c e iv e d
from N orth w estern B an k er readers.
Y ou r view s and o p in io n s on any su b
je c t ivill he glad ly p u b lish ed in this
colu m n .

DES

"Plenty of Fish"
“ We had a swell time in St. Petersburg,
Florida, and both Elizabeth atid I got as
brown, if not browner, than we have been
other years. We were lucky in getting an
apartment right on the beach— two bed
rooms, living room, kitchen and bath for
the month-—so we were in our bathing suits
alihost all the time. I went surf fishing
each morning and caught trout, flounder,
whiting, and even sharks right out of the
Gulf in front o f the house. So we had
plenty of fish to eat. ’ ’
F r a n k P. S y m s , Vice Pres
ident, Northwestern Banker, 505 Fifth Avenue, New
YorTc City, New York.

"Especially Good"
" I wrould appreciate very much receiv
ing an additional copy of the April issue
o f the N o r t h w e s t e r n B a n k e r . The May
issue is especially good and I want to con
gratulate you on it. ’ ’
C. C. R ie g e r , Manager, Bond
Department,
Jamieson <$•
Company, Minneapolis.

“The Oldest Savings Account"
"D e a r Cliff: Being the editor of the
W orld’s outstanding publication (and I ’m
not being sarcastic, either) thought you
might be interested in the enclosed article
which appeared in the New York Times.”
W i l l i a m B . W h i t m a n , A s
sistant Secretary, Manufac
turers Trust Company, 55
Broad Street, New York
City.
And here is the article to which Mr. W hit
man refers:

(Turn to page 22, please)

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Federal Reserve Bank of St. Louis

N U M B ER 683

F O R T Y - N IN T H Y E A R

O ldest Financial Journal West of thefMississippi River

"Excellent and Timely"
"Y o u r editorials in the N o r t h w e s t e r n
B a n k e r have been excellent and have a
lot of punch to them. Keep them rolling!
" A ls o enjoyed very much the article in
the N o r t h w e s t e r n B a n k e r by Marshall
Corns on ‘ Five Problems of Bank Manage
ment.’ It is a most timely article and you
are to be congratulated on having men like
Mr. Corns contribute to the cause of
banking. We hope that you can have him
write again as he certainly knows the
weak spots.”
R o b e r t W e i d e n b a c h , Cash
ier, First National Bank,
Eldon, Iowa.

MOINES

IN T H IS JU N E , 1944, ISSU E
Editorials
8

Across the Desk from the Publisher.

Feature Articles
7
Dear E ditor ............ .................. ...... .................. -...................................... ........................
F rcn tispage
............ ...... ......... ..................... ...................................... —-.......... —- H
H ew Bulls Build Business fo r Our Bank..................................................................... 12
How to Keep Y our Community Interested in Y our Bank..... F red R. Zim m er 13
Rich U ncle............ ............................................................ .................. G eorge S. Benson 14
The Position o f Capital and Labor A fte r the W a r....................... A . B. Cahalan 15
News and View s o f the Banking W orld ...................................... Clifford De B uy 16
The South Dakota Convention.................................................................................... ---- 18
The M innesota Convention............ ................................................................................— 20
The North Dakota Convention...... ............................................................. -................... 22
W hat Do You T h in k?............. ....................... .................................... -......... -................. 26

Bonds and Investments
Governm ent Bonds A re Not Like Peas in a P od -------- ------------ R. R. Schroed er 27

Insurance
W hy My Premiums Total $18,000 A n n ually............... ...................... C. R. H ew itt 31

State Bankins News
M innesota News ...................................................................................... ,........................... 37
Duluth News ..... ................. ..................................... -....... -................................ -...... 37
Tw in City N ew s.______ ___ _____________________ __ James M. Sutherland 40
South Dakota N ew s....................................................-.................. -.................................... 45
Sioux Falls N ew s......................................................................................................... 45
N orth Dakota N ew s..........................................................................-.................................. 49
F arg o News ........................................................ -........................................................ 49
Nebraska News ..............................—...............................................-................................. 51
Omaha Clearings ............................ ......... .......................-........ -..................... -........ 53
Lincoln Locals ........
55
Iow a News .............................r............................................ ................. .........................
57
Iow a Bankers D iscuss Present and Postw ar Problem s at Group
M eetings ....................................................................................................................... 60
Iow a Group M eeting P ictu res....................-............................ -.........................61, 62
Des Moines N ew s......................... -........ -..... -................. ....... ....... ............................ 67

The Directors’ Room
A Few Short Stories to Make Y ou L au gh .................................................... -............. 70
Conventions ............... ......... —........... ....... ....... .............-.......... -..............— .......... -....... 70

•

N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9, Iowa, Telephone 4 -8 1 6 3
C L IF F O R D DE PU Y, Publisher
R A LP H W. M O O R H E A D
Associate Publisher
H EN R Y H. H A Y N E S
Editor

RUTH K IL L E N
Associate Editor

E L IZ A B E T H C O L E
Advertising Assistant

M A R G U E R IT E B R O W N
Office Supervisor

BETTY M IL L E R
Circulation Department

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 H ill 2-0326

Across the Desk
From the Publisher

2>ea^i Qene^cd Jl. Jl. Arnold:
As chief of the Army air forces, don’t you
think you were a little “ tough” on the Foremen’s
Association of America when you asked them to
call off their strike last month?
After all, these 3,300 striking foremen were
only preventing 73,000 workers in Detroit from
building long range fighters for use in our in
vasion program.
You seem to think, General Arnold, that war
production, which in turn will help to make
Victory more certain and thus shorten the war
and save lives, is more vital than the fact that
the Foremen’s Union went on a strike to settle
grievances which seemed more important to them
than to help win the War.
In your statement you said,
“ What can I say to the families of crews shot
down, taken prisoner and perhaps wounded?
How can I explain to the relatives the lack of
fighter aircraft; the lack of protection for the
bombers; the lack of planes that might have
been there to save their lives?”
Just say, General Arnold, that the Foremen’s
Union comes before any union of the Allied Na
tions fighting for victory and eventual peace.

3 ) e a .'i

H w n ce:

As a member of the Division of Research and
Statistics of the Federal Reserve Board, we were
interested in your statement that, “ Preliminary
estimates indicate that we may have some 50,000,000 acres too much land in crops the year fol-

N orthw estern Banker Jane 19bb

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Federal Reserve Bank of St. Louis

lowing the defeat of Japan. This is assuming a
national income of $140 billion and prices at
100 per cent of parity on the 1943 level. Most
people agree that we should plan to supply a
low-cost adequate diet to all families with less
than $1,500 income a year, but even if we do this,
only 8,000,000 more acres will be utilized.”
As we see it, Mr. Bunce, agriculture, like in
dustry, must find more uses for farm products,
and this is already being done to some extent
in the research laboratories of our universities
as well as in the laboratories of many manufac
turing plants.
It is to be expected when the war is over, that
agriculture, like industry, will have a decreased
demand for products used because of the war,
and therefore, if industry is to continue at a high
level of production it will have to turn to the
manufacture of civilian goods as well as create
new products for new markets.
Agriculture, which has had a tremendous de
mand because of the war, must expand its ex
port business as much as possible, although we
must realize that only 6 per cent of our total
national income is represented by our foreign
trade. We have every confidence that as a re
sult of the many improvements, both mechanical
and chemical, developed during the war that these
improvements will be translated into the manu
facture of articles and goods which have not here
tofore appeared for the use of civilians, and this
increased market will help in turn to maintain
our national income at the high level which we
hope to establish.

u b e a A fy ticu tJ z rW a > i* ie.'i:

In your recent address before several of the
Iowa Bankers’ Group Meetings, you discussed
the subject of “ WHAT IS THE IDEAL BANK
STATEMENT.” You asked your listeners how
many felt that they had the ideal bank statement.
In other words, from published bank statements
the reader public otherwise having no contact
with the bank itself drew his conclusions as to
whether he liked that bank or whether he pre
ferred to do business with some other banking
institution; the published bank statement is the
“ outpost” of his contact with the bank.
You stressed in your talks how fundamentally
important it is to periodically analyze our bank
statements from the standpoint that the published
statement represents a “ bank salesman.”
It was surprising to us that in the more than
250 bank statements covering 29 States that you
have been analyzing for more than two years, you
could point out so many of what you call “ un
mentionables” which here and there throughout
the land have been permitted seemingly to creep
into the set-up or “ pattern” of a bank statement.
You called your listeners’ attention to instances
where a published bank statement was talking
more to the “ stockholders” of its bank than to
the depositors or to the reading public. You
pointed out various statements of banks in cer
tain sections of the Nation that were downright
boastful about the progress of the bank. Your
remarks clearly indicated the items that should be
avoided in a bank statement pattern and unques
tionably would be, had the Officers and Boards
given more study and thought to what their state
ment was actually saying to the public and how
the public was goiug to react to those items.
Your discussion was one of the few we ever
heard on bank statements. Somehow we perhaps
have just gotten the impression that a bank state
ment just couldn’t be different and anything that
was said about it was all right just so the “ "Re
sources” and the “ Liabilities” balanced. But you
have rendered a distinct service to bank officers
and boards of directors by calling to their atten
tion as yon did, the importance of their analyzing
and studying the preparation of their published
bank statements so that they in truth, will be the
best possible emissary of the bank whose financial
and operating condition it relates. But of all
the important things yon point out about a bank
statement, we were particularly impressed with
what you had to say about the possible overcapitalization of banks. You did impress on us

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Federal Reserve Bank of St. Louis

the fact that stockholders should provide a rea
sonable amount of Capital Structure fairly con
sistent with the bankable business of the terri
tory served. But it seems to us that your dis
cussion about Boards giving consideration to
stop constantly piling up Capital Structure be
cause of fair or reasonable annual earnings with
out giving proportionate heed to bank lending
that such Capital Structure could serve, was some
thing, it seems to us, that is worthy of very deep
attention. Two of the convincing arguments that
you so splendidly narrated are these:
(1) Your reference to bank stockholders, par
ticularly majority bank stockholders of a family
or group who have reached the age when they
desire to retire and discover at that time that to
the degree that they piled up “ book value” of
their stock, so have they reduced the number of
potential purchasers of that stock and at a time
when those older stockholders were most desirous
of liquidating their holdings in order to avail
themselves of a vacation and relaxation to which
their many years of constant toil and responsibil
ity in the management of their bank entitled them.
(2) You significantly pointed out that on the
other hand there were the oncoming younger
bankers equipped with fine and adequate bank
ing ability but that in the main such class of
younger bankers did not have the funds with
which to purchase the stock of older bank owners
at such high levels of “ book value.” Your kindly
admonition that it would be well for Boards of
Directors to give some consideration to limiting
the amount of “ book value” that they would
permit their stock to have and thus keep their
stock always reasonably salable, is worthy of
much thought.
Then a word about your stressing the fact that
“ RESERVES” today has a great deal more sig
nificance to the bank statement reader than the
mere piling up of great sums of so-called “ Un
divided Profits” and “ Surpluses” as well as
“ Capital.”
Of one thing we can be quite sure—in these
days of social and political unrest throughout the
world and in the United States, bankers in our
opinion must be more careful than ever to put
their best “ financial foot” forward so that they
will receive from the public the greatest amount
of “ good w ill” and cooperation, while the bank
ers at the same time, give the greatest amount of
service and receive the least amount of criticism
and one of the best ways to do that is to pay
special attention to the set-ups and preparations
of their published bank statements.

N orthw estern Banker June

Complete In Its
Correspondent Services

Always Prompt
and Courteous In
Its Attention to All
Correspondent Needs

Iow a’s Friendly Bank”

THE CEDTRflL nflTIORflL BRF1K
HOD TRUST compRny
Fifth Avenue Between Locust and Walnut
DES MOI NES , I O WA

Northwestern Banker June 19M

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Federal Reserve Bank of St. Louis

N orthw estern Banker June 19b4

How Bulls

BuiId Business
For O ur Bank

The Home o f the Farmers and Merchants Bank
of Richland Center, Wisconsin

A Wisconsin Institution Uses "Lend-Lease" to Improve Livestock
in Its Community
N AN effort to improve the quality
of dairy herds in the community,
the Farmers and Merchants Bank
of Richland Center, Wisconsin, for the
past few years operates what it calls
a “ Bull-lending” program. Instead of
the usual method of loaning the dairy
farmer money to buy his own bull, the
bank buys pure-bred bull calves, se
lected from accredited herds by the
County Agent, and then “lends” or
“ loans” , them to farmer customers.
The farmer of course signs a contract
setting forth certain stipulations.
Speaking of the project, C. A. Cutter,
cashier of the Farmers and Merchants
Bank, says:
“The greatest trouble we have with
the program is that we cannot locate
and buy enough bulls to supply the
demand. In most cases, the farmers
buy the bulls outright, rather than
enter into the contract.
“This year we have a new program
with the 4-H boys and girls of highschool age. We are financing them for
any kind of an animal they wish to
buy. We take their personal note,
signed by their parents, for a period
of one year at four and one-half per
cent. This plan will permit us to en
large on our program, and will allow
us to branch out into other kinds of
pure bred livestock” .
The contract which the farmer and
the bank sign, and which carries a
detailed description of the animal,
reads as follows:

First party, by these presents, here
by lends to second party one pure bred
.............................. bull for the term of
three years from date upon the follow
ing terms and conditions:
Second party agrees to keep and care
for said bull in a proper and husband
like manner; to give the bull proper
feed and shelter and patronage; to give
the bull proper veterinary attention
by a duly licensed veterinary when it
reasonably appears that medical atten
tion is necessary; to use every reason
able effort to keep his herd free of
Bang’s disease; to use bull for breed
ing purposes only after it has attained
an age of at least one year; to use said
bull for breeding within his own herd
exclusively—said bull shall not be used
as a neighborhood bull.
Second party further expressly
agrees: Not to sell or encumber said
bull during the time of this contract.
This contract shall be terminated (at
option of first party) at any time that
it appears that second party has will
fully neglected or refused to perform
the conditions of this contract.
Second party shall be responsible
only for death or damage done to said
bull as a result of his carelessness or
neglect.
At the termination of this contract
(or at any time prior thereto) second
party shall (at his option) buy said
bull or return it to the bank.
Farmers & Merchants Bank

Contract for Lending of Bull
This article of agreement entered
into this
. day o f ....................... ,
194 by and between the Farmers &
Merchants Bank of Richland Center,
party of the first part, a n d ...................
................, of the Town o f ....................
Richland County, Wis., party of the
second part, WITNESSETH:
N orthw estern Banker June ljb b

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Federal Reserve Bank of St. Louis

Farmer
In presence of:

I hereby consent to the above con
tract............................................... .......
Share crop landlord

Approved..................................
County Agent
To many of my good country banker
friends, this will seem like a waste of
time and effort but if you will con
sider that it simply means that you can
earn % of 1 per cent on these funds
without any risk, I think that you
will be interested because I cannot
conceive of anyone preferring to have
the cash at no earning than to have
an investment that earns % of 1 per
cent per annum and is the same as
cash in their portfolio. All in all, there
seems to be no excuse at this time for
banks not to be invested up to their
full limit all the time.

Spring Meeting
The regular spring meeting of the
board of governors of the Investment
Bankers Association of America was
held in Rye, New York, June 1, 2 and
3, or ten days before the opening of the
Fifth War Loan drive, as announced
through the association’s office by J.
Clifford Folger of Folger, Nolan & Co.,
Washington, president. Among other
business of the meeting plans were per
fected for intensifying in the Fifth War
Loan the “drive within a drive” which
the securities dealers of the nation have
conducted in connection with each of
the other war bond campaigns by their
professional solicitation of the larger
investors. Participating in the meet
ing were Ted R. Gamble and Edward
B. Hall, both assistants to the Secre
tary of the Treasury, and, respectively,
national director and assistant national
director of the Treasury’s War Fi
nance Division.

How to Keep Your Community
Interested in
The Banker and His Bank Is the Economic Spark-plug of Most Small
Communities— W hy Keep It a Secret?
ERHAPS no men in any group,
business or profession, have the
intimate daily contacts and wield as
great an influence in any community
as the bankers and newspapermen.
But, the average banker and the aver
age newspaperman are not exerting
the influence which their fields of oper
ation permit.
With gasoline and tire rationing
every town must stand on its own.
Now, even with limited stocks, is the
golden opportunity for your town to
sew up the business which logically
belongs in your town’s stores. Every
other town is in the same position.
Your advantage will be exactly what
you and your merchants make of it.
We face a whale of a job. As Presi
dent Edward A. O’Neal of the Ameri
can Farm Bureau has so well said:
'‘We face a whale of a job to preserve
those things which have made our na
tion great. We must work together.”
Those four words—“We Must Work
Together”—might well become the slo
gan of all bankers associations and doz
ens of other organizations. There is
so much to be done in meeting the
tasks ahead of us that the combined
effort and talent of many groups will be
required. However, much depends on
how well each individual banker and
each individual newspaperman does
the job in his own community—how
wisely we apply good common sense to
the problems we foresee in order that
we may better combat those which we
do not now recognize.

The average man and woman is
ready to support any sound program.
What we require is leadership in our
respective communities to chart the
course which will mean a sound pro
gram. The individual banker stands
at the head of the list of men who can
do that job—and who have the oppor
tunity for doing it.
In your daily conversations with cus
tomers who come into your banks, you
can contribute information and, like
wise, obtain information. Through the
exchange of ideas between the farmer,
the business man and the banker, a

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

By Fred R. Zimmer
Editor, C e d a r C ou n ty News
H a r t i n g t o n , N e b ra s k a

F R E D R. Z I M M E R
“ In te rests are m utual”

pretty sound pattern as to the future
course to follow can be worked out.
In turn, these men discuss their ideas
with their neighbors and the message
is spread in ever widening circles.
Bankers, perhaps, are often too mod
est to expand their opportunity for this
type of leadership. They do a good
job in their own banks, but overlook
the greater good they might do and
could do by reaching more of their
patrons and non-customers. This could
be accomplished through more fre
quent contacts with the country news
paper editor and through the use of
advertising space in the weekly news
paper.
Please do not misunderstand me. I
am not trying to persuade you to spend
a few dollars every week or two with
your local newspaper—for just those
few dollars. But, I do want to point
out to you how easy it would be and

how effective it could be, if you would
call in your local newspaperman and
discuss with him the gist of some of
the conversations you have had with a
farmer customer or one of your local
business men. Together, you, the coun
try banker, and your country editor—
or you alone for that matter—could
work one of these conversations into a
brief message which could be published
in your local newspaper over the name
of yourself and your bank. Through
this method you could give all the
readers of your local newspaper the
benefit of the information and advice
you may have otherwise provided for
just the few men whom you contacted
that week. The more neighbors and
customers of your bank you can ad
vise and inform, the better.
It is generally recognized that the
country bank is the heart of the terri
tory it serves. However, some people
forget that fact. Strangers come along
and paint a grand picture about doing
business elsewhere. Too often your
customers, and especially the farmers,
are weaned away from the bank with
out fully realizing where their best
interests lie.
When farmers and business men
stop to think, they know they must
have these country banks. But bank
ers, and particularly country bankers,
should not delude themselves with the
thought that they do not have the re
sponsibility to keep that fact before the
public and their customers, week in
and week out.
With other agencies pumping infor
mation via newspaper, radio and mail,
trying to win your customers away
from you, you should not be surprised
if that effort costs you good patrons
when you have not taken the trouble
to give the true and correct facts to
your clients. And that isn’t a job you
can do twice a year by publishing your
bank statement. You have to tell your
public something interesting about
your bank, your work and their work,
and the community work. Why do
large businesses repeat their stories to
the public weekly and two or three
times a week in some cases? If big
N orthw estern Banker June

business has made a success doing this
sort of thing, isn’t it all the more neces
sary that small business must proceed
along this proven route?
I know some of the many things
bankers do for their customers and for
their towns and trade areas. And they
do a great many good things. But why
keep it secret? Why not let the gen
eral public know in a businesslike way
some of these things you are doing? If
you are misunderstood at times; if
some politicians put something over on
hanking; if a new competition arises
and takes away business that belongs
to you—you should not blame the other

fellow. In this day and age you must
present your own case. And you have
a good case. But, the opposition and
the competition has been outselling
you. And actually they do not have
the bill of goods to sell which you have
to offer. It is a matter of telling the
facts and telling them again and again
in an interesting manner so as to in
form and enlighten your public, and
thus retain the business which belongs
to you and which your community
should bring to your bank. And you
win that community support if you
present your story and do it consist
ently.

Rich Uncle
By GEORGE S. BENSON
President of Harding College
Searcy. Arkansas

A YOUNG 4-F of my acquaint
ance works at a chemical labora
tory in a distant city. While
visiting at home a few months ago
he scratched around considerably
on his father’s big farm collect
ing rocks. When he went back, he
took the rocks with him, also
notes on elevations and thick
nesses of strata. He said he had
always believed t h e s e shale
glades might have value. Now he
would find out!
More recently he was at home
again with a business-like glint
in his eye, saying nothing about
his mineral samples. One morn
ing he went horsy and saddled a
nag. Not pleasure; it was a busi
ness trip. He cantered directly to
the home of his mother’s uncle,
the richest retired capitalist
thereabout. When he returned he
was a sadder, wiser young man.
Pretty
Dream

APPARENTLY his home
acres are full of a good
grade of valuable ore.
He had visions of incorporating a
new, local industry soon after the
war, offering jobs to veterans and
former war workers. All he need
ed was capital, he thought. He had
even charted markets, demands
and prices for past years show
ing probable production and prof
its to interest the uncle.
“ Uncle Jeff knows his busi
ness,” the lad said sadly. “ He
says he has $100,000 to put in
such a venture if he can figure a
way to come out whole. I showed
him how we could earn $100,000
the first year, but he got out tax
Net Profit ........................ .
Normal P r o fit..................
Normal Tax 40% .............
Excess Profit ..................
Excess Profit Tax 85% •..
Total T a x e s ......................
Net Profit After T axes...
Personal Income Tax 85%
Income Remaining .........

N orthw estern Banker Jane 19h4
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Federal Reserve Bank of St. Louis

sheets and showed me that 100%
yearly return on a $100,000 in
vestment was no good to him. All
that tax laws will let him keep,
along with his other income, is
less than $3,000.”
Grave
Risks

OF COURSE a $3,000
income is $60 a week,
good pay if it is sal
ary; no investment and no risk of
financial loss. But when people
invest sizable sums of money in
industry, it is not usually in a
“ sure thing.” There are always
risks to run, and here arises our
gravest prospect at the end of the
war: Our victorious fighters to
come home and find no jobs.
The figures below support the
young man’s story. He proved at
considerable trouble what econo
mists have been saying for two
years. Capital earns about as
much and is safer frozen in bonds
than active in business. When an
investor’s money returns but lit
tle, he wants it safe, in munici
pal bonds for example; not in
venturesome enterprise.
We Americans need a lot of
items now and would buy them.
Manufacturers know how to make
them, good enough for anybody
at popular prices. Such work can
provide peace-time jobs for mil
lions, but will it happen? Well—
there’s one sure way to spoil the
prospect: Keep tax laws just like
they are, so people who invest in
industry can’t benefit from it. In
vestments are absolutely essen
tial to making jobs.
$ 10 0 ,0 0 0
$ 8 ,0 0 0

; 3,200
$92,000
78,200
81,400
$ 18,600
■ 15,810
$ 2,790

The country editor in Iris fight to re
tain a free press and the country bank
er in his fight for freedom of private
enterprise have a common cause.
Neither the press nor the banking
interests can win this fight on their
own account. It is only good common
sense for us to join hands and work
together, for the best interests of the
communities we serve. It is teamwork
that counts. And included in this team
work should be your business and pro
fessional men of your town and the
farmers in your trade areas.
It should be the job of every banker
and every newspaperman to impress
upon every business man, professional
man and farmer that community coop
eration is not only necessary, but a
means of the majority survival. The
banker and the publisher who secure
the full cooperation of their commu
nity, who take the lead in planning
how their community can get through
this crisis, will go a long way toward
having their communities in a position
to take advantage of the great days
which will follow this war.
It’s a business proposition — both
ways. Your interests are mutual. Give
your community the combined leader
ship—the intelligent, honest, effective
leadership which is within the power
of banker and editor to provide.

A . I. B. President
Alfred E. Langenbach was elected
president of Chicago Chapter, Ameri
can Institute of Banking, at the recent
annual meeting. Mr. Langenbach is
an assistant cashier of the First Na
tional Bank of Chicago.
Arthur E. Urick, associated with the
Harris Trust & Savings Bank, was
elected vice president of the chapter;
and Edward Damstra, associated with
the Chicago City Bank & Trust Com
pany, was elected treasurer.
Six directors were elected to fill
terms expiring May 31: Frederick H.
Dilley, Jr., of the American National
Bank & Trust Company, Roy E. Hiestand, of the Harris Trust & Savings
Bank, Victor Jankoski, of the Milwau
kee Avenue National Bank, Harold T.
Nelson, of the Continental Illinois Na
tional Bank & Trust Company, War
ren Smetters, of the First National
Bank of Chicago, and Frederick A.
Zuhlke, of the Northern Trust Com
pany.
The American Institute of Banking
is the educational section of the
American Bankers Association. There
are chapters in over three hundred
cities and towns. Chicago Chapter,
with 4,200 members—of whom 900 are
in the armed forces—is the largest
chapter in the organization.

The Position oí Capital and
Labor

After the Wat

A Workable Labor Relations Policy Should Be Inaugurated Now
( E d i t o r ’ s N o t e : — In a recent ‘‘What
Do You Think?” column in the N o r t h
w e s t e r n B a n k e r the following question
was asked, “ Do you think Labor Un
ions will grow stronger or weaker after
the war?”
A. B. Cabalan, president of the First
National Bank, Miller, South Dakota,
answered the question at some length
and in detail, so that his reply appears
here as a separate article. You will be
interested in reading his views on the
subject.)

RESENTING my views as a rural
banker I wish at the outset to let
it be known that labor unions are
something that I have very little to do
with, since we have none in this coun
try, but as one from the outside looking
in, I feel that there has been a definite
increase in union-management cooper
ation, especially during the wartime
period, and labor relations problems
covering wages, hours, and working
conditions have been permitted to be
heard most favorably on practically all
questions that have arisen.
Loyalty programs, self-educating pro
grams, have definitely enhanced the
dignity of the worker, and greater effi
ciency by virtue of better adaptation of
the man to the job has taken place. A
new factor in personnel work is bound
to be injected into management requir
ing the employment of ex-service men
now and even after the war, and while
this compulsory rehiring presents in
terference with the employers’ right to
hire and fire, labor
© relations will carry
plenty of complications.

By A . B. Cahalan
P r e s id e n t
F i r s t N a t io n a l Bank
and
P a st P r e s id e n t , S o uth D a k o t a Ba n k e rs
Association
M il le r, S out h D a ko ta

I look for a smaller employment shift
if the labor supply will become rela
tively fixed due to the laws of seniority
and the swing away from normal com
petitive conditions within the field of
capital and labor. Workers will cer
tainly become more organized on a
nation-wide industrial basis. Chamber
of Commerce Trade Associations, small
business associations, will in time es
tablish agencies for use in properly
distributing labor, and if the move
ments of these associations are helpful

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Federal Reserve Bank of St. Louis

A. B. C A H A L A N
“ In d u stry and the F arm er must
work to g eth er’ ’

in promoting the labors best interests
and their greater efficiency, a slow
down in agitational methods for pro
moting union organizations and for
pushing and achieving labor gains will
not take on the agitational type of
union promotionalism we have seen in
the past.
There has been some growing recog
nition of truth behind that element of
the New Deal which contended that we
need a wider distribution of income.
This, as I understand it, the Wagner
Act and other social legislation were
designed to assist. The public de
mands, and I think rightfully so, that
there be public accounting of union
funds expended and likewise some edu
cation of the public to better under

stand organized labor methods so that
certain problems of business may not
be solely dictated by the management.
Where controversial issues are in evi
dence collective bargaining contracts
may be made for shorter periods where
all questions may be made subject to
arbitration. When peace comes, it
strikes me that the success of the man
agement-union cooperation will depend
upon how openly such decisions are'
discussed and without secret commit
ments so that the rank and file of labor
may understand the issues raised and
can conscientiously examine the deci
sions and accept them or reject them
if they are not fair.
1 believe that the profit motive will,
in a greatly modified form, exist
whether it be liberalized capitalism or
socialized production, or democratized
industry. In any case profits may be
permanently restricted and labor will
be an integral part of management.
Since the reserves of smaller business
are low, strikes are particularly dan
gerous to them since their margin of
safety is slimmer; and no one can ever
expect strikes to be legislated out of
existence. Present postwar labor rela
tions may carry on for some time after
the peace is signed, but small business
today has a duty to face and now is
the time to face the inevitable neces
sity of having to deal with postwar
compulsions of some sort in the post
war era.
Small business may even show the
way for bigger business to follow in
taking a liberal stand with helpful and
informative emphasis on postwar in
dustrial relations problems that labor
itself has to mount. The industrial
progress of our nation has a great deal
to do with the plight of the farmer and
the demand for raw materials, so that
we here in the west are anxious to see
few disruptions in the industrial field.
Let’s have a labor relations policy
inaugurated now so that it can be sold
to the general public before the chan
nels of business become clogged with
driftwood of bad. industrial relations.
N orthw estern B anker June Í944

New s

and

ie w s

OF THE BANKING WORLD
By Clifford DePuy
LOWELL DRISCOLL has been
. appointed manager of the Minne
apolis office of Merrill, Lynch, Pierce,
Fenner & Beane, succeeding the late
Walter M. Paulson, who died in April.
Mr. Driscoll is a very popular and
well known investment banker, who
has many friends throughout the
N o r t h w e s t e r n B a n k e r territory.
His
brother, R. E. Driscoll, is president of
the First National Bank of the Black
Hills, Rapid City, South Dakota.
Prof. Albert Einstein of Princeton
University has really put the flag of
victory on the fourth term for Presi
dent Roosevelt by declaring that it
would be “Arery dangerous to change

throughout the state. At one of these
meetings in Des Moines, the entire
War Bond Sales Organization of the
Iowa Bankers Association convened.
This brought together about 160 bank
ers and one of the main topics of the
agenda was the fixing of sales goals
and setting up the mechanism for
regular progress reports during the
drive.”
Phil R. Easterday, chairman of the
board of the First National Bank of
Lincoln, Nebraska, in d i s c us s i ng
“What government bonds shall I buy,”
believes that, “At this time, and at
these markets, I rather like a three-

leadership now.”

This will probably make just as
much sense to a great many voters as
does Einstein’s theory of relativity,
which is described as, “A mathematical
development of two postulates, (a) If
two systems are in relative motion
with a uniform linear velocity, it is
impossible for observers in either sys
tem by observation and measurement
of phenomena in the other to learn
anything more about the motion than
the fact that there is this relative mo
tion. (b) Measurements of the velocity
of light in either system regardless of
the position of the source of light al
ways give the same numerical value.”

- No doubt, Professor Einstein wants
to keep Roosevelt in perpetual motion
as far as the presidency is concerned
and if he does, the “measurement of
this phenomena” may be something
that even Einstein can’t figure out.
' Tom K. Smith, president of the
Boatmen’s National Bank of St. Louis
and chairman of the sub-committee of
the A. B. A. War Finance Committee,
paid tribute to the “ Iowa Plan” worked
put so successfully by Frank Warner,
secretary of the Iowa Bankers Asso
ciation, who built up a permanent
statewide bankers’ “War Bond Sales
Organization,” when Mr. Smith wrote
to all the state associations and said,
“Here is a word about how they are
proceeding in Iowa.
“ There was a joint meeting attended
by representatives of the Iowa War
Finance Committee, the State Banking
Department and the Iowa Bankers
Association. Arrangements were made
to hold a series of regional meetings
N orthw estern Banker June i9 k !f

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Federal Reserve Bank of St. Louis

P H IL R. E A S T E R D A Y
" I lik e th ree-d ivision diversification”

division diversification for the bulk of
one’s holdings— %% Certificates, for
the short holding; a four-year maturity,
say 1948, for the medium maturity;
and for the third division around a
1950-52 maturity. That would keep
you in an eight-year range, and in most
cases, I believe furnish reasonable
earnings—provided you keep your
idle money working in these %% Cer
tificates.
“With proper proportions, fitting
your own situation, between these
three maturities, you would certainly
be operating conservatively. A sug
gestion as specific as this might nat
urally require some modification at
another date.

“ If you have not already, reconcile
yourself to the fact that you are going
to continue to hold for many years,
very substantial blocks of Govern
ments.”
Lewis F. Gordon, president of the
Financial Advertisers Association, in
a letter to the members of that organ
ization, said, “ Since the first of the
year I have talked to and with some
2.000 bankers in various sections of the
country. Therefore, what I presume
to say is based on fact and not on imag
ination.
“Never was there a time in the his
tory of banking when bank men were
so receptive to the ideas and actions
which are the essence of the Financial
Advertisers Association. Never was
there a greater challenge to us to prove
our ability to do a job and our right
to be the one militant, independent
organization in our field.”
James V. Forrestal, the new Secre
tary of the Navy, was graduated from
Princeton in 1915. He later became a
bond salesman with William A. Read
and Company, later Dillon, Read and
Company.
In 1917 he enlisted in the naval re
serve as a seaman second class and
was subsequently assigned to aviation.
He was trained with the royal flying
corps at Toronto, Canada. He was
commissioned ensign that November
and assigned at various times to the
First Naval District, New York, the
office of the chief of naval operations,
Washington, and the naval air station
at Hampton Roads, Virginia.
At the close of the war he was dis
charged with the rank of lieutenant.
He returned to Dillon, Read and Com
pany, becoming president in 1937. In
1926 he married Josephine Ogden. The
Forrestals have two sons.
M. R. Baty, a partner in the firm of
Wayne Hummer & Company, 105
West Adams Street, Chicago, in dis
cussing the “Bankers’ Approach to In
vestment of Venture Capital,” said:
“There are about 15,000 banks in the
United States. These banks on June
30, 1943, the latest date for which com
plete figures are available, had bor
rowed from their depositors $96,329,000,000, exclusive of inter-bank depos
its.
“Under an ever-growing economy,
corporate enterprise provides an everincreasing part of the nation’s method
of doing business. Corporate enter
prise is the vehicle through which the
population of a maturing economy can
participate with venture capital, rep
resented largely in a modern economy
by common stocks.”
(Turn to page 32, please)

P rom pt Transit Service

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Federal Reserve Bank of St. Louis

THE
OMAHA
NATIONAL
BANK
N orthw estern Banker June

The South Da ko ta
Convention
Aberdeen — June 9 -10
President,

T. N. H A Y T E R
South Dakota Bankers

A ssocia tion

Headquarters — Alonzo Ward Hotel

LL plans for the 1944 convention auditing committee consists of H. C.
of the South Dakota Bankers Whaley, Huron, and A. E. Schnad,
Association are now complete, Huron.
according to Acting Secretary Lois
The detailed program reads as fol
Halvorsen. The meeting will be held lows:
in Aberdeen on Friday and Saturday,
Friday, June 9
June 9th and 10th, with headquarters
Noon
at the Alonzo Ward Hotel. Registra
12:00 Registration—Mezzanine Floor,
tion will begin Friday noon, the exec
Alonzo Ward Hotel.
utive council will meet Friday after
Afternoon
noon, and a stag party will take place
2:30 Meeting of Executive Council—
at the Aberdeen Country Club Friday
Room “D,” Alonzo Ward Hotel.
evening. Sessions of the convention
7:30 Stag Party — Aberdeen Country
proper will start Saturday morning,
Club.
June 10th, all taking place in the
Alonzo Ward Hotel, and the day will
Saturday, June 10
be packed with speakers bringing
Morning
n e e d e d information on numerous
8:00 Breakfast Meeting of Nominat
banking problems.
ing Committee — Room “A,”
Among those on the program will be
Alonzo Ward Hotel.
R. A. Bezoier, vice president of the
8:30 Breakfast Meeting of State Bank
First National Bank, Rochester, Min
“Executive Council” — Room
nesota; M. Q. Sharpe, governor of
“D,” Alonzo Ward Hotel.
South Dakota; H. J. Gramlich, general
9:00 Registration Continued—Mezza
agricultural agent for the Northwest
nine Floor, Alonzo Ward Hotel.
ern Railroad, and Karl Goldsmith, an
9:30 Business Session —Ball Room,
attorney from Pierre. Following the
Alonzo Ward Hotel.
annual dinner the evening of June
Call to Order by the President—
10th, speakers will be William C. Way,
T. N. Hayter, Sioux Falls.
of Cleveland, Ohio, president of the
Invocation—Rev. F. E. Stillwell,
American Institute of Banking, and
pastor, Episcopal Church.
Dr. Paul Cadman, economist of the
Address of Welcome—O. M. Tif
American Bankers Association.
fany, Mayor of Aberdeen.
T. N. Hayter of Sioux Falls, presi
Response—H. R. Kibbee, Jr.,
dent of the South Dakota Bankers
Mitchell, vice president, South
Association, has named the following
Dakota Bankers Association.
on the nominating committee: J. M. 10:00 Opening remarks of the Presi
Lloyd, chairman, Yankton; A. R. Olson,
dent.
Beresford; C. J. Poshusta, New Under
Filing of Official Reports—
wood; H. N. Thomson, Presho; L. T.
A. G. Berger, chairman, Agricul
Morris, Watertown, and A. B. Cahalan,
tural Committee.
Miller.
John N. Thomson, chairman,
Appointments to the resolutions
Subcommittee on Government
committee are: J. M. Patton, chair
Lending Agencies.
man, Mitchell; T. M. Brisbine, Woon
Carl Odegard, chairman, Sub
socket; John L. Wood, Hartford; R. M.
committee on Farm Chemurgy.
Watson, Sioux Falls; J. O. Van Nice,
Wm. C. Rempfer, chairman.
McLaughlin; R. W. Douglass, Dupree,
Bank Management Committee.
and W. H. Jarmuth, Vermillion. The
C. C. Anderson, chairman, Pub

Northwestern Banker June T.944

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Federal Reserve Bank of St. Louis

lic Relations Committee.
Walter H. Burke, chairman,
Taxation and Legislation Com
mittee.
11:00 “ABA Country Bank Commis
sion and Checking Account Serv
ice Charges”—R. A. Bezoier, vice
president, First National Bank,
Rochester, Minnesota.
11:30 Discussion.
11:45 “ Fifth War Loan”—C. H. Lock
hart, War Finance Committee.
Noon
12:00 Recess.
12:00 Luncheon Meeting of Resolu
tions Committee — Room ’ “A,”
Alonzo Ward Hotel.
Afternoon
2:00 “Postwar Employment” — S. S.
Shaw, field director, Postwar
Employment Survey, Greater
South Dakota Association, Wat
ertown.
2:30 “ Spinning the Crystal Ball”—H.
J. Gramlich, Chicago, Illinois,
general agricultural agent, Chi
cago and North Western Rail
way Company.
3:00 “Legal Problems in the Safe
keeping of Customers’ Securi
ties”—Karl Goldsmith, attorney,
Pierre, South Dakota.
3:30 Discussion.
3:45 Reports of Committees.
Election of officers.
New business.
Selection of 1945 convention
city.
Adjournment.
Annual meeting of members of
the American Bankers Associa
tion at close of session—for elec
tion of officers.
Evening
6:30 Annual Dinner—Ball Room, Al
onzo Ward Hotel.
Toastmaster—Dwight Campbell,
Aberdeen.
(Turn to page 45, please)

If poorly designed checks cost you
time and money. . .

4 examples of
faulty check design
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no one of them the amount.

DO POORLY DESIGNED “ headache checks” waste y o u r
tellers’ and bookkeepers’ time? If so, you’ll find this new
Hammermill idea-book useful. “ Business Checks” lists 15
examples of common faults, and gives the 8 essentials of
good check design— all based on interviews with bankers
and conforming to recommendations of the A.B.A.
We believe you will want to present copies of this book
to your important customers who plan and design their
checks. It will be a service to them and to yourself. Send
the coupon. No obligation. No salesman will call.
B ank c h e c k s a n d b u sin e ss c h ec k s th a t give
th e g r e a te st sa tisfa c tio n are o n th e s a fe ty
p a p er th a t p r o v id e s true p r o te c tio n
Ham
m e r m ill S a fe ty . This p a p er is d ep en d a ble
m
use, im p r e ssiv e in appea ra nce, a nd
carries th e b e s t k n o w n n a m e in p a p er.

Please send me— free— a copy o f “ BUSINESS CHECKS— their
proper planning and design.”
N am e............................................................Position............................
(Simply attach coupon to, or write on, your bank letterhead) NB— Jun

MANUFACTURED

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Federal Reserve Bank of St. Louis

HAMMERMILL

PAPER

COMPANY,

ERIE,

PA. ,

FOUNDED

1898

Northwestern Banker June 19H

The
Minnesota

•s

Convention
St. Paul, June 13-14
y

Headquarters
Hotel St. Paul

H. R. K U R T H
President, M inn esota Bankers A ssocia tion

HE 1944 convention of the Minne W. Randolf Burgess, vice chairman of
sota Bankers Association will get the board of the National City Bank,
off to a flying start the evening of New York, and C. W. Bailey, vice presi
Tuesday, June 13th, with the usual dent of the First National Bank,
pre-convention smoker held in the Clarksville, Tennessee. A social hour
Continental Room of the Hotel St. will follow the afternoon session.
The annual banquet will be held
Paul. All convention sessions will be
held in the Hotel St. Paul, including Wednesday evening, and H. V. Kaltenentertainment. The one exception will born, popular news analyst, will fol
be the ladies luncheon on Wednesday, low.
The detailed program reads as fol
June 14th, which will be at the Hotel
lows:
Lowry.
Tuesday Evening, June 13
Minnesota this year will again fol
(Beginning promptly at 7:30)
low the custom of a one-day meeting
on Wednesday, June 14th. The two Pre-Convention Smoker — Continental
Room, Hotel St. Paul, Vice President
speakers on the morning program are
W. F. McLean, presiding.
K. J. McDonald, president of the
Iowa Trust & Savings Bank, Esther- Report of Nominating Committee.
ville, Iowa, who is chairman of the Entertainment???—A Military Secret!!!
Don’t Miss It!
Country Bank Operations Committee
of the American Bankers Association, Food, Food, Food, etc.,—No points nec
essary.
and Herbert Gaston, assistant secre
tary of the United States Treasury.
Wednesday Morning, June 14
9-30 a. m.
The opening of the afternoon session
will be largely given over to Associa Call to Order—Continental Room, Ho
tel St. Paul, H. R. Kurth, president,
tion reports, including the annual ad
presiding.
dress of the President of the Minne
sota Association, H. R. Kurth, who is Invocation—Dr. Irving A. West, D.D.,
Minister, House of Hope Church, St.
president of the Citizens Bank, Hutch
Paul.
inson. Other afternoon speakers are

N orthw estern Banker June

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Federal Reserve Bank of St. Louis

Address—K. J. McDonald, president of
Iowa Trust & Savings Bank, Estherville, Iowa; chairman of Country
Bank Operations Committee, Ameri
can Bankers Association.
Address — Herbert Gaston, assistant
secretary of the treasury.
A. B. A. Elections.
M. B. A. Elections.

Wednesday Noon, June 14
12 Noon

Luncheon for Ladies—Ball Room—
Lowry Hotel.

Wednesday Afternoon, June 14
1: 15 p. m.

Call to Order—Continental Room, Ho
tel St. Paul.
President’s Annual Address—H. R.
Kurth, president, Citizens Bank,
Hutchinson, Minnesota.
Reports of council of administration,
secretary and treasurer being mailed
to membership.
Address—W. Randolph Burgess, vice
chairman of the board, National
City Bank, New York, and vice presi
dent of American Bankers Associa
tion.
Address—C. W. Bailey, vice president,
(Turn to page 37, please)

Warehouse R eceipts
L oans A gainst I nventories
Inventories are valuable assets and they constitute
the repaying power of many manufacturers, proces
sors, producers and dealers . . . .
Where inventories are present banks have splendid
opportunities to profitably employ their resources
through new and larger loans based on them . . . .
And when secured by our Warehouse Receipts in
ventory loans are sound.

Long experience, integrity

and responsibility stand behind our operations . . . .
For inventory collateral there is no substitute for a
Warehouse receipt issued by an experienced bona
fide Public Warehouse Company . . . .
Without obligation , our representative will call on
request and explain how our Field Warehousing serv
ice provides collateral on inventories on the owner's
location . . . .

§5>t $aul terminal TOarefjouöe Co.

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Federal Reserve Bank of St. Louis

ST. PAUL, MINN.
— Iowa Office —

— Other Offices —

515 Iowa-Des Moines National Bank Building
DES MOINES
TELEPHONE 2-1208
T. C. CANNON, DISTRICT MANAGER
TELEPHONE 4-2353

MINNEAPOLIS MILWAUKEE CHICAGO DETROIT
NEW YORK
BOSTON
PHILADELPHIA
PITTSBURGH
SYRACUSE
MEMPHIS
ATLANTA
ALBANY, GA.
CHARLOTTE

"The only company engaged in Field Warehousing with an office in Iowa”

Northwestern Banker June 1944

The
North Dakota Convention
Fargo — June

Headquarters — Hotel Gardner

H. A. F IS C H E R
P resident, North Dakota Bankers A ssocia tion

EMBERS of the North Dakota
Bankers Association are hold
ing their annual convention
this year in Fargo, with a get-together
social function the evening of Friday,
June 30th, and the convention proper
a one-day session on Saturday, July
1st. Headquarters, so far as registra
tion is concerned, will be at the Gard
ner Hotel, but plans and arrangements
are not sufficiently advanced as this
goes to press to be able to give all the
convention details.

3 0 - July 1

Among those who will be on the
program, according to C. C. Wattam,
secretary, will be D. J. Needham, gen
eral counsel for the ABA, who resides
in Washington, D. C., representing the
American Bankers Association; and
O. B. Jesness, of the Agricultural Divi
sion of the University of Minnesota.
Mr. Jesness will discuss postwar agri
cultural problems.
John Graham, state examiner for
North Dakota, will be on the pi’ogram,
and Mr. Wattam is arranging for a

speaker to discuss the new Home
Front manual recently distributed by
the American Bankers Association.
The Fargo Clearing House Associa
tion we understand is arranging for
several gatherings aside from the busi
ness sessions, and visitors to the an
nual convention of the North Dakota
Bankers Association are assured of a
royal good time, as well as helpful in
formation on wartime bank manage
ment.

DEAR EDITOR
(Continued from page 7)

Oldest Bank in North Dakota
Established 1878

Statement of Condition April 13« 1944
RESOURCES
Loans and D is co u n ts .............$ 1,357,658.91
O verdrafts ..................................
760.48
Stock in Federal R eserve
Bank ........................................
19,500.00
Bank B u i l d i n g .........................
233,750.00
Other Real E s ta te ...................
None
Furniture and S afety D ep osit
V au lts ....................................
3,222.70
Interest Earned, not
C ollected ................................
40,616.35
Q uick A ssets:
*U . S. G overnm ent B o n d s ... 10,434,688.44
♦M unicipal B onds ...................
390,756.08
♦Other B o n d s ..............................
90,645.03
Cash and Due from B anks. . 4,045,171.30
$16,616,769.29

L IA B IL IT IE S
350.000.
00
Capital ...................................... $
300.000.
00
Surplus ......................................
U ndivided Profits and
252,514.41
R eserves ................................
Interest C ollected , N ot
8,611.33
Earned ....................................
D ep osits (In clu d in g U. S.
W a r Loan D eposits,
$1,046.472.41) ....................... 15,705,643.55

$16,616,769.29

“ A 125-Year Savings Account
‘ ‘ The Bank o f Savings, a venerable sav
ings institution in New York City has
presented a ‘ contender’ in the lists for
the title o f the oldest savings account in
this country. The account was started in
1819, the year in which the bank was
established, with $10 deposited for John
S. Thorne, at his birth. Five dollars were
added one year later. Nothing more was
deposited, but the compound interest
has brought the account to $3,999,999. The
account has been in the b a n k ’s own name
since 1931, when Thorne’s heirs assigned
it to the bank to keep the account alive
and to enable them to draw against the
balance then standing.”

*A t market or less.

"Comments Cover the Essence"

FIRST
NATIONAL BANK

OFFICERS
F. A. Irish, Chairman of the Board
G. H. Nesbit, President
H. D. Crosby, Vice Pres, and Trust Officer
G. W. Jensen, Vice President and Cashier
and Assistant Trust Officer
G. H. May, Assistant Cashier
and Assistant Trust Officer
R. J. Schmallen, Assistant Cashier
M. W. Loffer, Assistant Cashier
M. C. Fremstad, Assistant Cashier

AND

M em ber Federal D ep osit Insurance C orporation
A ffiliated W ith N orthw est B ancorporation

N orthw estern Banker June 1944

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Federal Reserve Bank of St. Louis

TRUST CO.
of targo

“ Your open letter on “ Gold, the Beal
Ruler of the W orld,” in your May issue
of the N o r t h w e s t e r n B a n k e r , is much ap
predated. Your comments cover the very
essence of the book and indicate an under
standing of the subject far above that of
the magazine editors with whom we have
talked.
‘ ‘ While writing you, I cannot overlook
the opportunity to congratulate you on
the general make-up and contents o f the
N o r t h w e s t e r n B a n k e r . I am really much
impressed with it and I am sure that it
must impress your banker readers most fa
vorably.
‘ ‘ There was something I wanted to say

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Federal Reserve Bank of St. Louis

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.

CENTRAL
HANOVER
AND

TRUST
NEW

BANK
COMPANY

YORK

MEMBER FEDERAL DEPOSIT IN SUR AN CE CORPORATION

Northwestern Banker June 19M

24
about putting me elbow to elbow with Dr.
Schacht. I have sat elbow to elbow Avith
him but did not like it. Your editorial
indicates that you approve of my reference
to the dear Dr. in my book. I am sure
that you and I and Horace Greeley are fully
agreed in our dislike for Dr. Schacht and
his methods.”
F r a n k l y n H o b b s , Author,
‘ ‘ Gold, the Beal Buler o f the
W orld,” Chicago, Illinois.

"Unusual Stamp"
“ May 10, 1944, marked the Seventyfifth anniversary o f the completion o f the
First Transcontinental Railroad and driving
of the Gold Spike at Promontory Point,
Utah, joining the Union Pacific and Cen
tral Pacific Railroads.
“ A splendid record has been made by
the railroads in the development of our
country and progress of our nation.
“ We, of Omaha, are specially proud of
the Union Pacific Railroad Company, the
pioneer railroad of the West, Avith general
headquarters in Omaha.
“ In addition to the Union Pacific, ten
other trunk lines enter Omaha.
“ With the thought that you perhaps are
interested in unusual stamps, we are mail
ing this to you on first day of issue of re
production of stamp in use in 1869.”
A n n a T. O l s s o n , Live Stock
National Bank, Omaha, Ne
braska.

Warehousing Pioneer

THE JOB AHEAD: JUNE 12-JULY 8
It won’t be easy; and for those of us in bank
ing, the job ahead is a double job: To do our
share, personally, in the 5th War Loan . . .
and, equally important, to urge and encour
age every bank depositor to do his full share.
It is doubtful if any other group can so read
ily contact so many millions of able-to-invest
Americans as we, the men and women of
America’s banks. We must not fail!

FIRST W isco nsin
NATIONAL BANK OF MI LWA U K E E
WISCONSIN'S

BANK

FOR

BANKS

—

N orthw estern Banker June Í9 !tk

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Federal Reserve Bank of St. Louis

MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Founded in 1916, St. Paul Terminal
Warehouse Company occupies a fore
most position in the nation’s ware
house industry.
The company pioneered the develop
ment of field warehousing throughout
the north central states and is the larg
est operator in that territory. Through
its acquisition in 1939 of the New York
Terminal Warehouse Company, Inc.,
an extensive operator of field ware
houses east of the Mississippi river,
the company makes available to banks
and businesses an unequalled service
for loans against inventories. Its 15
offices are located at strategic centers
chosen for the most convenient and
expeditious service to banks and in
dustry.
In addition to its terminal operations
at St. Paul, the company owns and
operates Minneapolis Terminal Ware
house Company in Minneapolis and
Midway Terminal Warehouse Com
pany at Minnesota Transfer between
the two cities, and offers to industry
serving the Northwest, the finest fa
cilities in terminal storage, distribution
and trucking.
Holders of St. Paul Terminal Ware
house Company’s warehouse receipts
are insured up to $500,000 at each
warehouse location, against any loss
for which the company is legally liable.
This protection is in addition to the
company’s financial responsibility as
reflected in its balance sheet.

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

O ... that speaks fa r Its e lf!

f the items we handled in just one day

were placed end to end, they would
reach from Philadelphia to Downingtown,
Pa.—a distance of 35 miles.
A great many of these items represent
checks being collected for other banks
—testim ony to the efficiency of our
Transit Department. Yet this is but one
of many unusual qualifications which
we offer correspondents —not the least of
which is a proven desire to cooperate
with other institutions.
W e cordially invite inquiry.

THE P H IL A D E L P H IA
NATIONAL BANK
PHILADELPHIA
M E M B E R

F E D E R A L

PA.

D E P O S I T

ORGANIZED
I N S U R A N C E

1803

C O R P O R A T I O N

Northwestern Banker Jane 19bk

Question: Do you agree
with the banker who
wrote us: "I am really
discouraging loans ex
cept short term or rea
sonable farm loans that
would hurt a customer
should prices drop” ?
E. H. Buerkle, cashier Farmers and
Merchants State Bank, New York
Mills, Minnesota: “ I think it is rather
hard to answer your question. What

do you mean by short term loan?
Three months or three years? I would
not discourage either one of them. If
we would, we are inviting the PCA
and FSA to make them for us. If suf
ficient securitjr is taken at the time
the loan it made, it wouldn’t hurt a
customer even though the prices
should drop.”
T. T. Varney, president Broken Bow
State Bank, Broken Bow, Nebraska:
“ I think that our borrowers should
keep liquid assets on hand and not be
in debt too much so that after the war
they will he ready to adjust them
selves to the new set-up in business.”

gnillllllllllllllllllllllllllllll!llllllllll!l!lllllllllllllllllllllllllllll!llllllllll!l!|||||||!|||||||l||||||!ll||!ll||!||||M|||ll||||||||[||||l|l!l!||||!|||!!|||||||||!||||il||||||||||!||||||||||!l!|||||||||||||||||||m||||||||||||||i||||[||||||l|||||||||||^

INTERESTED

Commodities
Consider these facts:
/'"'XUR extensive commodity contacts, supported by our broad wire service, plus the
fact that sixty of our eighty-five offices are
located in territories where commodities are
either grown or processed, enable us to gather
pertinent information on any commodity
quickly.
Further, we maintain a specialist in each
commodity who is in a position, due to his
experience and knowledge, to interpret the
meaning of such information.

Next time your bank or one of its customers
wishes expert commodity service, why not get
in touch with either our home office, 70 Pine
Street, New York, or another of our offices
nearer your own location. We will be glad to
cooperate in every respect.

M errill Lynch , P ierce, F enner & B eane
Underwriters and Distributors of Divestment Securities
Brokers in Securities and Commodities
70 PINE STREET

N E W Y O R K 5, N. Y .
Branch Offices in S5 Cities

^lll!lllllllllllllllllllllll!ll!l!lllll!lllllllllllllll!llllllllll!llll!llllllllllllll!ll!l!llll!llll!lll!illlllllllllllllllll!lllilllll!l!l|lllll!llli;illllll]|lilllillll!lllllll!l!!lll!!ll!ll!llll!llllllllllll!!llllllll!lll!ll!llll!l|||!ll!ll|||||ll||ll|i||IIIIIIÌH

orthw estern Banker June 1.944
Digitized forNFRASER
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Federal Reserve Bank of St. Louis

F. M. Fladmoe, assistant cashier,
Bank of Belle Fourche, Belle Fourche,
South Dakota: “ I think livestock loans
should not follow the trend of the
market. It is much better for the
farmer and the banker both if the
loans are held down to a minimum. It
is easy for a loan to go up with the
prices but it is very hard to go down
with the prices.”
H. C. Larson, cashier Citizens State
Bank, Decatur, Nebraska: “Now is the
time for people that are in debt to get
their financial affairs adjusted so that
when a decline in prices comes they
will be able to continue in business or
farming without interruption or fear
of being foreclosed. Debts should be
paid now, while prices are good.”

Newell S. Knight Becomes
Manager Bond Department
The Mercantile-Commerce Bank and
Trust Company, St. Louis, has an
nounced the appointment of Newell S.
Knight as manager of the bank’s bond
department. Knight comes to Mercan
tile-Commerce from Barcus, Kindred &
Company, Chicago. He attended the
Hotchkiss School and Yale University,
leaving college to enlist in the navy in
World War I. After serving overseas,
he returned to Annapolis where he
was commissioned an officer, and
served on a cruiser until 1919, resign
ing in that year to enter the security
business with the Harris Trust & Sav
ings Bank, Chicago.
William P. Sharpe, vice president,
will continue to supervise the activi
ties of the bond department.
The board of directors of the Mer
cantile-Commerce Bank and Trust
Company has declared three quarter
ly dividends of $1.75 each, payable
July 1 and October 1, 1944, and Jan
uary 1, 1945, to stockholders of rec
ord the 20th of the month preceding
payment.

Government Bonds
A re

Not Like

Peas in a Pod

Even Though They Are as Sound as Whole W heat in the Bin
HE soundness of the various issues
of United States Government Bonds
is not questioned in this article, as
all are sound and will be paid in full
at maturity. They constitute the best
investment in the world and are cer
tainly suitable to banks for the em
ployment of depositors’ funds.

There is a difference in the coupon
rate and maturity of the various issues.
Some of them might not do so well
“ market-wise” if a “wet spell” of chang
ing interest rates set in before they
mature. The maturities or varieties
of government bonds best suited for
each bank depends entirely upon the
size and nature of the bank—the type
and construction of its deposits—the
relation of the government bond ac
count to its other assets. For example,
a bank with a large percentage of time
money could hold more of the longer
maturities than a bank whose deposits
are all demand. Then, too, a bank with
a large holding of real estate mortgage
loans (including FHA loans) is in a
different category than a bank which
does not have any long-term loans or
other long-term securities. So it can
be seen that each bank must select its
own variety of government bonds as
there is no set formula for the per
centage of long-term bonds in relation
to shorter maturities.

Interest Rates
I dare say that no one can safely or
surely predict the interest rate which,
in turn, governs the price of any gov
ernment bond, fifteen years hence, ten
years hence or even five years hence.
Many different forecasts have been
made, of which some are bound to be
correct. Yet, no Treasury or Federal

ing, banks were limited in the ex
change of their own bonds to a four
and one-half year maturity.

By R. R. Schroeder
Vice P r e s id e n t an d C a s h i e r
I o w a C o u n t y S a v i n g s Bank

The stability of bank deposits after
the war is a moot question. How about
the large accounts of the merchants
and tradesmen who now have a large
bank balance and an abnormally low
inventory? Will the farmer use his
large bank balance for the purchase of
new equipment, for improvements or
the construction of new buildings as
soon as material is available? Pur
chases of new automobiles, household
equipment and even private planes are
expected to be on a vast scale. These
factors will have a tendency to shift
deposits from one center or locality to
another after the duration.

M areng o, Iowa

It has been said that the public lost
millions of dollars after World War I
when they sold their
per cent Lib
erties in the low eighties. This loss
need not have been taken, as all of the
bonds were naturally paid in full. I
believe that very few of the bonds were
sold by people actually in need of the
cash—John Doe sold his bonds in order
to buy land, silk shirts, oil stock, auto
mobiles, etc.

R. R. S C H R O E D E R
“ A ll G overnm en ts A r e Sound”

Sound Banking
Reserve official will guarantee future
prices nor will they state, that in time
to come, loans of par value will be
granted. Apparently the government
does not desire to have commercial
banks “ loaded” with long-term bonds
as evidenced by the fact that none of
the recent long-term bonds issued by
the government were eligible to be
held by banks accepting commercial
deposits. In the recent exchange offer

Good banking demands staying close
to the shore at all times, especially if
the sea is liable to get rough. For the
average bank, a substantial investment
in the various maturities of the % per
cent certificates of indebtedness is
sound banking.
They are the best buys among the
various government bonds, as the yield
is more liberal than can be obtained
from other investments in comparison

Scarborough ^ C ompany

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Federal Reserve Bank of St. Louis

(laHÀcic'là. te^ßiiivkA
First National Bank Building, Chicago

Horace A. Smith, Iowa Representative
Des Moines, Iowa

N orth w estern Ranker June

28
a “ must” investment if the bank’s net
income is in the 95 per cent bracket.
First grade municipal securities are
equally as sound as governments and
should be segregated from other bonds
in the statement to the public.

with like maturities. In other words,
the “yield scale” is a great deal more
favorable on one year governments
than it is, e.g., on municipal securities.
These certificates may be purchased
in the market at various yields, depend
ing on the maturity. A bank with ap
portioned maturities within a period of
one year has, for all practical purposes,
the equivalent of sixty to ninety day
paper. The Treasury has been follow
ing a program of refunding these se
curities with certificates of comparable
yield and maturity. With a setup like
this, there is no need for the average
country bank to invest in ninety day,
% per cent Treasury bills.
Reference to municipals discloses
some interesting data. While munici
pals are currently quoted at high
prices, their exemption from present
Federal Income Taxes makes them
quite attractive. They are considered

A Yardstick
A rough yardstick for a country
bank, flexible to each individual case,
would divide the maturities of a bond
account in the following manner: Forty
per cent due within one year—35 per
cent due from one to five years—25
per cent due from five to ten years.
The Series F and G bonds held by
banks can be considered short-term,
since they are payable six months after
the date of issue. Iowa banks that for
tunately bought Series F or G Bonds
last year, can credit the purchase of
these securities to the effort and fine
service of Mr. M. W. Ellis, superintend

ent of Iowa banks. In the last War
Loan drive, commercial banks were
limited in the purchase of F or G Bonds
to 10 per cent of their savings deposits.
In the next drive certificates of depos
its, issued in the name of individuals,
will be classified the same as savings
deposits. Banks should note the vari
ous new regulations of the Fifth War
Loan drive.
Some bankers may feel that they can
safely carry all long-term securities and
then sell them, if and when the market
changes. Under this plan, all the “ eggs
are carried in one basket,” with the
expectation of carefully watching the
“basket.” It is extremely difficult to
buy at the low or sell at the high.
Experience has proven the propensity
to sell at a discount or loss.
The practice established by many
banks of grouping government bonds,

Serving this Northern California Area

T
N

ork

rust

m pan y

Capital Funds . $45,000,000

SACRAMENTO

IO O B R O A D W A Y
STOCKTON
MODESTO

M A D IS O N AVENUE

TRACY

»#&JTA ROSA

¿OÌNOma

■P^PfTfSuRG
CONCORD
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AND 40T H STREET

LOS BANOS,

R ic h m o n d ¿ ie d m o n t
:
l iv e r m o r e
l
BERKELEY 5 OAKLAND
■
ALAMEDA SAN LEANDRO

TEN
ROCKEFELLER

aERYVILLE

PETALUMA
rSAN RAFAEL ;
.AN A NSELM O 1
.ALITO

SAN JOSE

GILROY

S anta ciara

PLAZA

PALO ALTO
BURLINGAME
REDWOOD CITY

HEAD

DEPOSITS

O F F IC E :

SAN FRANCISCO

N orthw estern Banker Jane 19tib

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

OVER

$ 5 5 0 ,0 0 0 ,0 0 0
M em ber o f the Federal Deposit Insurance Corporation

WAYNE HUMMER & CO.
SECURI TY

C O R R E S P O N D E N T

FOR

BANKS

105 W est A dam s Street, Chicago 90
Telephone ANDover 1700

29
FHA loans, etc., along with their cash
reserves, in their bank statement, not
only places the customer’s “head in the
sand,” but also, like the ostrich, may
have a tendency to hide the banker
from any possible or prospective dan
ger. A good real estate mortgage may
be more liquid in five years than a
long-term government bond.
All government bonds are sound, but
they are not like peas in a pod.

New MM Director
Warren C. MacFarlane, Jr., manager
of the Minneapolis-Moline Como Spe
cial Ordnance Plant, was elected to the
board of directors recently. He has

Promotions
Mississippi Valley Trust Company,
St. Louis, announces the election of
three new assistant vice presidents—
Drew Brown, William F. Schroer, and
Wm. D. Walsh, and the appointment
of a new credit manager, Harrison F.
Coerver.
A graduate of Georgetown Univer
sity, Mr. Brown has been with the bank
since 1932 in the new business de
partment. Prior to his recent promo
tion he had been an assistant secre
tary, having been elected to this posi
tion at this office in 1940.
Mr. Schroer began his banking ca

reer in 1924 with the State National
Bank, which merged with Mississippi
Valley Trust Company in 1929. The
greater portion of this time he spent
in the credit department, and in 1940
was elected credit manager. He is en
tering this summer his last year at
the Graduate School of Banking at
Rutgers University. For the past two
years he has been a member of the
faculty of the American Institute of
Banking.
Mr. Walsh joined the official staff of
Mississippi Valley Trust Company as
assistant secretary in 1936. Prior to
this time he had been executive vice

Federal Intermediate Credit Bank
Consolidated Debentures Offer..,

Desirable
Short M aturities
/t
W A R R E N C. M A C F A R L A N E , JR.
N ow a board member

been connected with Minneapolis-Mo
line since 1928 at which time he start
ed in the combine shop as a helper on
the assembly line. He attended Lawrenceville School at Lawrenceville, New
Jersey, and then returned to Minne
apolis-Moline in 1932 and worked in
the purchasing department. In 1936
he became a junior buyer and in 1937
he was made a senior buyer, and an
assistant treasurer of the company. A
year later he was made assistant man
ager of the MM Moline plant. He held
this position until the war broke out in
1941 when he was made manager of the
Special MM Ordnance Plant.
Mr. MacFarlane has been a director
of the LaSalle National Bank, LaSalle,
Illinois, since 1940 and is a member of
several national integration commit
tees on Army and Navy ordnance
projects including the Minnesota Pro
duction for Victory committee.

ih e y

afford

popular medium through

which institutional funds, earmarked for tem
porary employment, may be invested securely
at favorable term rates. These obligations of the
twelve issuing banks are made available regu
larly for subscription in denominations ranging
from $5,000 to $100,000, due at convenient
intervals up to one year. Debentures which
mature within six months are acceptable as
collateral security for fifteen-day borrowings by
member banks of the Federal Reserve System.

TH E F E D E R A L IN T ER M ED IA T E CREDIT B A N K S

Requests fo r other salient information respecting the above
described issues should be addressed to
31

CHARLES R. DU N N, Fiscal Agent
assau Street
N e w Y o r k 5, N. Y.

M odern Maiden s Prayer
Dear Lord, bring him back safe,
sound and single.

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

N orthw estern Banker June 19kb

JO
president of the Easton Taylor Trust
Company. He, like Mr. Brown, is asso
ciated with the new business depart
ment of the bank.
Mr. Coerver has been with the Mis
sissippi Valley Trust Company since
1935, in the credit department. Since
1940 he has been acting in the capacity
of assistant credit manager.

able as follows: 40 cents per share pay
able May 31, 1944, to stockholders of
record May 24, 1944; 40 cents per share
payable August 31, 1944, to stockhold
ers of record August 24, 1944; 40 cents
per share payable November 29, 1944,
to stockholders of record November
23, 1944. The dividend declared is the
same as May, 1943.

executive officer, with jurisdiction over
all departments and headquarters in
Minneapolis. Mr. Grout was born in
Wausau, Wisconsin, and attended the
University of Wisconsin. He has been
connected with the engineering and
operating departments of the Canadian
Pacific Railway, his latest position
with that company being general man
ager, Western Lines.

Increase Surplus

Named Chief
Executive Officer

New Assistant Vice President

The directors of the First National
Bank in St. Louis have authorized the
transfer of $600,000 from undivided
profits to surplus account, making to
tal surplus $5,800,000. A dividend of
$1.20 per share also was declared, pay

A s

G. W. Webster and Joseph Chapman,
trustees of the Minneapolis, St. Paul &
Sault Ste. Marie Railway Company
(Soo Line), have announced the ap
pointment of Horace C. Grout as chief

S.
Sloan Colt, president of Bankers
Trust Company, announces that at a
meeting of the board of directors, John
B. Lewis was elected an assistant vice
president.
Mr. Lewis has been with Glore, Forgan & Company as manager of their
buying department for the past seven
years. Prior to that, he was president

paper goes, our Policy is not worth

very much, but in performance it is the
greatest dollar's worth of value that you
can buy for the protection of your earn
ings and your family.

Our claim service is second to none and
we would appreciate the opportunity of
telling you of our liberal low cost acci
dent and health insurance.

Write for application and literature to

MINNESOTA COMMERCIAL
MEN'S A S S O C I A T I O N
Paul Clement, Secretary, 2550 Pillsbury Ave.
MINNEAPOLIS 4, MINN.

N orthw estern B anker June 19

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

J O H N B. L E W I S
A ssistant V ic e President

of American Houses, Inc., for three
years and with the Guaranty Company
of New York for six years.
Mr. Lewis has been a member of
Squadron A for the past five years,
and is a member of the Down Town
Association and the Piping Rock Club.
He is on the membership committee
of the Chamber of Commerce of the
state of New York.

One W ay
First M.P.: “ So your prisoner got
away? Didn’t you guard the exits?”
Second M.P.: “ Yes, he must have
gone out one of the entrances.”

Cootie Cure
From a private in Italy we get the
latest report on how they get rid of
cooties over there. The G.I.’s bathe
in gravel and then take an alcohol rubdown. The cooties get drunk and kill
each other throwing rocks.

13 Reasons W h y M y
Premiums Total $ 1 8 ,0 0 0 Annually
Forty People— a Bank, a Store, a Garage, a Filling Station,
Two Churches, and a Dozen Dwellings

By C . R. Hewitt
TOOK charge of the insurance
D o r s e t , M in n e so t a
agency in 1920, when there was less
than $200 in premiums on the books.
For the past three years my total pre
miums have exceeded $18,000. I find
the following sale methods effective:
1.
Through the years I have accu
mulated a mailing list of 1,000 names.
I never send out mail without enclos
ing some good pieces of advertising. I
use folders calling attention to rent in
surance, extended coverage, unearned
premium, automobile insurance, burg
lary insurance, life insurance and
stress the fact that building and cost
of materials have gone up.
2.
My assistant makes out income
tax reports and we call the taxpayer’s
attention to the fact that the percent
age a car is used in business can be
deducted from his income tax. Farm
ers especially are interested, and I
have written more new auto public lia
bility and property damage insurance
in the past two years on farmers than
in any previous five years. One of our
companies is now even advertising the
fact that a proportion of the cost of
C. R. H E W I T T
“ Y ou still have to se e them to s e ll them ”
car insurance is deductible from in
come tax reports.
3.
I take all county newspapers andlary policies. I use blotters, household
watch the news as to people, who are inventories, year books and calendars
moving,' so a renewal permit can be at to very good advantage.
tached or a vacancy clause attached to
5. To make money you have to
their policies. Also, I watch sale of spend money. Keep your name before
property so proper transfer can be the buying public. I use the slogan
made to the purchaser.
insurance specialist, and try to live up
4.
I use advertising in home papersto the slogan. Make your telephone
and call attention to any new change number known to all customers and
in policies, such as 10 per cent of house prospects, and put it on all advertising.
6. Last year I went through all my
hold goods covering away from the
premises and outside coverage in burg- files and called attention to the fact

Scarborough ¿¿COMPANY
e
6/

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

M M hr

First National Bank Building, Chicago

that building costs have gone up at
least 60 per cent. This, also, applies
to household goods and you will be
surprised how many policyholders will
increase their insurance when it is
called to their attention. AVith the
number of people in defense jobs there
is more money, and people are buying
more furniture.
7. A good salesman must like to sell
and feel the urge to have the prospect
buy insurance. Cultivate friendships,
as your friends and patrons are your
ambassadors of good will. Become
acquainted with your public officials, as
they can do numerous good turns for
you. In our county, although I do not
live in the county seat, I have all the
county business I am entitled to.
8. “You have to see them to sell
them.” You cannot do this sitting in
an office chair and putting a shine on
the seat of your pants. You have to
use your shoe leather to see people and
sell insurance.
9. Although I write 90 per cent or
better of my own business personally,
I make an effort to go out with state
agents and special agents, but only if
they notify me in advance they are
coming so I can arrange my affairs to
spend a day with them. I find such
days full of information and lucrative.
10.
I make special drives and con
centrate on certain lines of insurance
on certain days. For example, I write
life insurance about ten days a year
and write $100,000 volume a year.
Average is $10,000 daily and sometimes
as high as $20,000 a day. I also try
to arrange special drives for burglary
insurance, auto insurance, farm fire in
surance, but when I am out on these

. 0

-f-

7 / /

/ IV' /¿7Tmri£

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

N orthw estern Banker June 1944

32
drives, I pick up any insurance busi
ness that the applicant is in the market
for.
11. Filing system. Due to lack of
help and as a time saver and to sim
plify the work, I have installed an en
velope system. My system consists of
a filing envelope for each assured, as-

sured’s line record, company monthly
statement and cash journal of income
and outgo. To my knowledge I am the
only agent in the county having this
system and I would not be without it.
The old system of having an individual
register for each company is cumber
some and takes up too much of the
agent’s time. Up until 1940' I did all
my own selling and bookkeeping and
this system saves many hours, which
means money to a salesman.
12. I have lost $25 in collections in
the past 23 years of business. I expect
my customers to pay monthly and they
do. I have a couple of forms of bill
ings that are good and bring responses.
13. I take the good trade magazines
and get many new ideas from them. I
urge all insurance men to belong to
their state association, as the contact
with other agents gives them new ideas
and an incentive to go out and write
more insurance. In union there is
strength.

I T ’S N O
SECRET

N EW S A N D VIEW S
(Continued from page 16)

THAT for over a third of a

Dr. Melvin T. Copeland, director of

research of the Harvard School of
Business Administration, believes that
the United States will enjoy an indef
inite period of postwar prosperity in
which industry and employment will
maintain their wartime level. Dr.
Copeland testified before the Senate
sub-committee that “Full employment

century we have been writing
Mutual

Insurance which

lias

gained wide acceptance through
out the Middle West. Why not

should be reached within a year or 18
months after the end of the war. Full
employment then should continue for
several years and then we will go into
new phases of production. Many of

investigate the advantages en
joyed by hundreds of hanker
agents?
Write or eall today!

★

WESTERN MUTUAL

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Investigate these Allied Mutual lines backed up by Allied Mutual’ s
proven loss payment service.

FIRE INSURANCE COMPANY

N orthw estern Banker June 19Ü

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

F u ll C o v e r a g e A u to m o b ile

• W o r k m e n ’s C o m p e n s a tio n

•

T e n a n ts

O w n e r s , L a n d lo r d s

M a n u fa c tu re r s
L ia b ility

and

P u b lic

L ia b ility

•

P u b lic

• E le v a t o r P u b lic L ia b ilit y

P e r so n a l L ia b ility
O u ts id e T h e f t

•

F arm

S to re

L ia b ility

C o n tra c to r s

L ia b ility

•

P u b lic

• C o m p re h e n siv e
•

K e e p e r B u r g la r y

R e sid e n c e and
and

R obbery

All Policies Non-assessable

ALLIED MUTUAL CASUALTY COMPANY
Harold S. Evans, President
Hubbell Building

Des Moines, Iowa

33
the technological developments of the
war period cannot be utilized for sev
eral years, but they then will come
into general production.”

plus and profits of $144,255, and de
posits of over $3,500,000.

A former bank robber who is now
an evangelist. Emmet T. Vestal, and
who is described as a “transformed
criminal,” is lecturing throughout the
country on “My Last Bank Holdup.”

den publications, are as follows:
$5,000 or more
. 8.3%of all families
$3,000 to $4,999 . 17.5%“ “
$2,000 to $2,999 . 30.6%-“ “
$1,000 to $1,999
29.5%“ “
Less than $1,000
14.1%“ “
“

The “no strike” clause of labor
unions has not been adhered to very
well if you give consideration to the
figures recently included in the United
States Steel Corporation Annual Re
port, which says, “During 1943, strikes
and work stoppages in the operating
subsidiaries were four-fold those of
1942. Estimated steel production lost
as a result thereof was 318,000 tons,
compared with 53,000 tons so lost in
1942. The estimated loss of coal pro
duction in 1943 due to strikes was 2.6
million tons, compared with 32,000 tons
in 1942. Estimated man-hours lost by

Charles B. Mills, who has just re
turned to his home in Moline, Illinois,
after a visit in Birmingham, Alabama,
tells us that he has had only one letter
from Major Miles M. Mills since he
landed in England, but hears regular
ly from his son. Captain Carl Mills.
He has had no word from General
Hanford MacNider for many weeks.
Charley also mentioned the wonder
ful work being done by Abner J. Stilwell of the Continental Illinois Na
tional Bank and Trust Company, Chi
cago, with the Chicago musical situa
tion. He is vice president and treas
urer of the Chicago Symphony, which
recently brought the Metropolitan
Opera from New York for two weeks.

work stoppages in 1943 were 4,845,000,
a 17-fold increase over 267,000 man
hours similarly lost in 1942.”
W. F. Keyser, retiring secretary of

the Missouri Bankers Association, Sedalia, will receive $4,000 a year retire
ment fund from the Association. The
new secretary is Robert Hill of Co
lumbia, Missouri, who has been alumni
secretary and publicity director of the
University of Missouri. His salary will
be $12,000 per year.

Estimated U. S. incomes as of Janu
ary, 1944, as compiled by the Macfad-

Since the post offices have been open
longer hours, this has contributed, ac
cording to many authorities, to the
increase in postal savings deposits,

Under the Old Republic Plan
insurance on personal loans
gives economical protection
to both lender and borrower

The largest independent
company exclusively insuring
the lives of borrowers

309 W . Jackson

Chicago

Clay W. Stafford, president of the
Ames Trust and Savings Bank, has
made a very fine record with his bank,
which has a capital of $100,000 and sur

SIN C E
19 19

Your present Bankers Blanket Bond . . . what is it costing you ior
the coverage and the service you receive?
W h y not ch eck into it w ith our rep r esen ta tive ?

H. P. MARTIN
Manager

Hawkeye Mutual Hail
Insurance Association
Carver Bldg.

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

Fort Dodge, Iowa

L. R. MOELLER
Executive St. Agt.

R. O. ALBRECHT
R. W. WETHERALD
Special Agents
Old Colony Bldg.
Des Moines, Iowa

INSUR ANCE

I l l W Fifth St.
St. Paul. Minn.
OF S A IN T P A U L

C O UNC ELLO RS

FOR

BANKS

N E W S and V I E W S
(Continued from page 33)
which are now $1,867,000,000, or an in
crease of $400,000,000 since a year ago.
Whether savings banks will make a
change in their banking hours to meet
this competition remains to be seen.

7 ^ < y ¿ ¿ c c ^ o íd e M
c u td 0? 'ite < td &
. . . Under lilis title Northwestern National
Life presents a brief and concise record of
operations covering the past year. This
report, now being distributed, is lively
reading for even the casual observer of life
insurance. It is, in effect, a policyholder
meeting in print— modeled after the policy
holder meetings which NWNL experimen
ted with so successfully before Pearl Har
bor. Here are just a few selected facls from
the Report, told in the first person by
President O. J. Arnold:
"Thousands of agents are now
serving in the armed forces
of the country. NwNL alone
has 'loaned’ more than 20 per
cent of its field force to the
armed forces. Y et those
NWNL men who remain . . . provide
you better service than ever.”

The Barucli-Hancock report on post
war adjustment policies gives this
marvelous tribute to the American
System:
“The war has been a crucible for all
of the economic systems of the world,
for our own, for Communism, Fascism,
Naziism—all the others. And the
American System lias outproduced the
world!”
Wiley R. Reynolds, president of the
First National Bank of Palm Beach,
is fearful that someone may think his
bank with $40,000,000 in deposits is
operated by “tourists,” so in front of
the names of the officers of his insti
tution on his published bank statement
is an asterisk and down below it says
“Legal Resident of Florida and the
Palm Beaches.”

it falls into the next larger classifica
tion of Federal member banks. In the
several terms that Mr. Williams has
served, the rural banks in Iowa and
those in the other states in this Fed
eral district, he has made an outstand
ing director from the standpoint of
service to them and to all other mem
bers of the Federal Reserve Bank of
Chicago.
In a recent address, Mr. Johnson ex
pressed his views on current affairs
by saying: “It would be an unthink
able tragedy if we should lose our
form of political life. Far more than
a pious hope moved those who chal
lenge King John at Runnymede, who
died on Concord Bridge and who suf
fered through our hopeless impotency
the ignominy of Corregidor. Since the
dawn of history, the urge for political
expression has tempered the dreams
and motivated the lives of all the peo
ples of this earth. The record proves
that only in democracy can human he-

"B y far the greater part of the
103 million dollars which you
and more than 200,000 other
¡3 NWNL policyholders have set
aside for your future security
’ is at work in channels which
The news that V. W. Johnson,
contribute directly or indirectly to the
successful fighting of the war.”
dent of the First National Bank,

"NW NL was one of the
largest purchasers of W ar
Bonds of any corpora
tion in the Northwest
area in both the Third
Its Home
and Fourth War Loans.
Office employees, long participating
100% in regular purchase of War Bonds
via the payroll savings plan, during
1943 increased their purchases to an
average of over 12% of payroll.
A c o p y o f th e R e p o r t w ill g la d ly he »en l on r e
q u e st. S im p ly d r o p a p o s t c a r d t o the H o m e O ffice.

N o r t h w e s t e r n

National LIFE
INSURANCE

COMPANY

O . J . A r n o ld ,

M in n e a p o lis ,

P r e s id e n t

M in n e s o ta

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

presi
Cedar
Falls, and president of the Iowa Bank
ers Association had earlier informed
his friends of his candidacy for the
directorship of the Federal Reserve
Bank of Chicago to represent the small
rural banks in Iowa (those with a
capital and surplus of less than $200,000), has brought only the most favor
able responses. He is considered by
his many banker friends in both small
er and larger banks throughout the
state as excellently qualified to repre
sent the body of rural bankers that be
long to the Federal Reserve System.
The present incumbent of this director
ship is Frank D. Williams, president
of the First Capital National Bank,
Iowa City, who will not be a candidate
for re-election, the chief reason for
which is due to the fact that his splen
did institution has grown so large that

BANKER
AGENTS
WANTED
A strong mutual company in its 52nd
year offers liberal agency contracts
covering—
•

AUTO INSURANCE

•

TORNADO INSURANCE

•

TOWN DWELLING INSURANCE
HAIL INSURANCE
on Growing Crops

•

Surplus to Policyholders
$1,327,171.08
51 years of proven protection.
W rite for our liberal proposition to
bank representatives.

DESIGNED FOR B A N K USE
D uring the F ifth W a r Loan D rive, you w ill undoubtedly sell a great m any W a r Bonds. T h is o ffers
your Ban k an opportunity to render a C ustom er Service. H ow ever, thru the use of Ju s trite W a r
Bond Ja c k e ts you can dress up those Bond sales and at the same tim e Sell Y o u r B an k Services by
im p rinting the Bond Ja c k e ts w ith an appropriate message.
Justrite War Bond Jackets offer an attractive container for the Bonds you sell— and
they carry your Bank Name and Advertising Message for many years to come. This
long term advertising media is available to you at a cost of only 1c to 2c per envelope
in thousand lots.
If your Dealer is unable to supply you, w rite d irectly to our factory fo r sam ples and prices.

noRTHeRn strtcs envelope co.

3 00 E. Fourth St.
St. Paul 1, Minn.

35
iiigs so dream and live. All other
political philosophies have, in the final
analysis, failed to satisfy humanity.
Socialism is not Democracy. Free en
terprise will ultimately die in compe
tition with government subsidized
business and tax exempt profits. Only
by holding firm to our democratic in
stitutions can we remain free, and you
and I must not stand mute in their de
fense. The loss of this war Avili lose
for us our political existence.”

Largest Single Loan
A

What is believed to be the largest
single loan ever sponsored by a Kan
sas City bank was announced last
month by the City National Bank and
Trust Company—a 12% -million-dollar
V type of credit to Aircraft Accessories
Corporation.
Financing of this kind is available
to concerns engaged in the production
of war supplies.. The borrower, which
has its main plants in Kansas City and
at Burbank, California, has experi
enced a rapid expansion in the past
few years in meeting the demands of
the war program. Randolph C. Walker
of Kansas City is president.
Kearney Wornall, vice president of
the City National, who represented
the bank throughout the negotiations,
said the corporation is one of the coun

try’s largest 'manufacturers of radio
transmitting equipment and of hy
draulic controls for aircraft.
Eleven other banks participated in
the financing program. They were:
First National Bank, Riverview State
Bank, Security National Bank and
Union National Bank of Greater Kan
sas City; Bank of America National
Trust and Savings Association, Los
Angeles; Central Bank and Trust Com
pany, Denver; Chase National Bank,
New York; Fourth National Bank,
Wichita; Manufacturers Bank anu
Trust Company, Mercantile-Commerce
Bank and Trust Company and Missis
sippi Valley Trust Company, St. Louis.

One Reason
Sergeant: So you complain of find
ing sand in your soup?
Private: Yes, sir.
Sergeant: Did you join the army to
serve your country or to complain
about your soup?
Private: To serve my country, sir,
not to eat it.

Stop
Cpl. to Taxi Driver: “What are you
stopping for?”
Driver: “ I thought I heard the young
lady say stop.”
Cpl: “ She wasn’t talking to you.”

M E R CMUTUAL
H A N TS

B O N D IN G
COM PANY
Incorporated 1933

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

charts and information of value to banks

Des Moines, Iowa

•

OPIES o f this booklet containing tables,

interested in the purchase and sale of United

•

States Government securities will be forwarded
This is Iowa’s oldest surety company.

upon request.

A progressive company witli experi
enced, conservative management. We
are proud of our hundred and fifty
bank agents in Iowa.

BOND DEPARTMENT

To be the exclusive representative of
this company is an asset to your bank.

THE N O R TH ER N

•

Write to

TRU ST COM PANY

E. H. WARNER

CHICAGO 90, ILLINOIS

Secretary and Manager

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

★

*
Northwestern Banker June 1944

Essential Travel

State B a n k e rs Associations
1944 Convention Dates
WISCONSIN . . M ilw au kee . . June 8-9

SOUTH DAKOTA . Aberdeen . June 9-10
A

MINNESOTA . . . St. Paul . . . June 13-14
MONTANA_____ B u tte _______ June 16-17
NORTH DAKOTA . Fargo . J u n e 3 0 - J u ly l
IOWA . . . . Des Moines . . . . Sept. 3-4

F or every banker alert to the needs of his depositors
and his bank, attendance at his state bankers’ association convention is a
“ must” this year.
That banks will continue to play an important part in the nation’s war effort and
that they will be confronted with a host of postwar problems is obvious. What
to do and how to do it with the best results for the community and the
bank will be major topics for consideration this year at every meeting of bankers.

»
At the First National of Minneapolis these matters are the subject of constant study.
W e look forward to working in close cooperation with banks
throughout the Northwest in meeting war and postwar problems.

First N a tio n a l B a n k o f Minneapolis
Lyman E. Wakefield, President
Department of Banks and Bankers
M. O. G rangaard, Vice President
C. B. Brombach, Vice President

Member

Northwestern Banker June

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

W. A. Volkmann, Assistant Vice President
J. J. M aloney, Assistant Cashier

Federal

Deposit

Insurance

K. T. M artin, Assistant Cashier
J. M. D ownes, Manager of Bank Advisory Division

Corporation

★

37
M. W. Stevens has taken Mr. Mc
Rae’s place as cashier in the Grace
ville bank. He was with the first
service corps in Minneapolis.

M IN N E S O T A

Cashier Convalescing
Erwin Holtmeier, cashier of the Vic
toria State Bank, Victoria, Minnesota,
is recovering from a recent operation.
L. B. Reak is taking his place tempo
rarily.

NEW S
W ILLIAM DUNCAN, Jr.
Secretary
Minneapolis

H. R. KURTH
President
Hutchinson

The Minnesota Convention
(Continued from page 20)
First National Bank, Clarksville,
Tennessee; chairman “ Food for
Freedom Committee” , and member
of Agricultural Commission, Ameri
can Bankers Association.
Report of Resolutions Committee.
Social Hour—Casino Club—5:00 p. m.
to 6:00 p. m. Courtesy of St. Paul
Clearinghouse Association.

Wednesday Evening, June 14
6:45 p. m.

Annual Banquet—Continental Room,
Hotel St. Paul.
Address—H. V. Kaltenborn (national
ly known radio commentator and
news analyst).
Dancing—Hal McIntyre’s Orchestra.

Minnesota, for the past four and a half
years, took over the Elgin State Bank,
Elgin, Minnesota, last month, and has
assumed immediate possession. He
will act as president and cashier of
the Elgin bank and will also continue
as president of the Eyota bank. His
time will be divided between the two
institutions. Elizabeth Steichen, cash
ier and director of the Eyota bank, is
also a director of the Elgin bank. Miss
Steichen has had 28 years of banking
experience. Neva Prescher will con
tinue as an employee with the Elgin
bank.

Resources, Deposits Up

Combined bank deposits in Still
water, Minnesota, in a recent call were
Gary P. Bauman, Ellsworth mayor $7,611,675, the statements of the three
and for the past seven years or more banks, Cosmopolitan State Bank,
cashier of the Ellsworth State Bank, Farmers and Merchants State Bank
Ellsworth, Minnesota, last month be and the First National Bank, reveal.
Adding to this the deposits of the
gan his duties as assistant cashier with
the Luverne National Bank, Luverne, First State Bank of Bayport, Minne
sota, approximately $600,000, the com
Minnesota.
munity had better than $8,000,000 on
deposit in its four banks.
Final Rites for O . L. Mather
Combined assets of the three Still
Oscar Lord Mather, retired banker
water banks were $8,452,093. The Bank
and timber operator, passed away at
of Lake Elmo reported deposits of
his home in Madison Lake, Minnesota,
$614,564 and assets of $659,971.
last month. In 1923, acquiring con
The resources of the three banks of
trolling interest in the Peoples State
Bank, he came to Madison Lake and New Ulm, the Citizens State Bank,
served as president of that institution Farmers and Merchants State Bank
until his retirement due to ill health and the State Bank of New Ulm, at the
recent call were $5,999,503, while the
in 1932.
deposits were $5,432,433. At the April
call in 1943, the resources were $5,257,Resigns as Teller
178 and the deposits $4,725,376. This
Orlin Ness, who has been employed shows an increase in resources of
as teller at the Marshall County State $742,324 and in deposits of $707,057
Bank, Holt, Minnesota, the past num during the past year.
ber of years, resigned his position and
last month took over the management
Becomes Cashier
of the large cattail plant operated by
Gordon McRae, formerly cashier of
his father, O. T. Ness.
the First State Bank of Graceville,
Minnesota, who has gone to Cando,
Heads Two Banks
Clare Talen, who has been president North Dakota, is now president of the
of the Farmers State Bank, Eyota, First State Bank there.

Banker-Mayor Leaves

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

Personnel Changes
Recent additions to the staff of the
Murray County State Bank, Slayton,
Minnesota, are Frank H. Sisson and
Mrs. Loma F. Sierk. Mr. Sisson was
located in Lake Wilson, Minnesota,
before taking charge of the Slayton
rationing office. Mrs. Sierk was for
merly with the First National Bank
of Waseca and is now in the book
keeping department of the Murray
County State Bank. Helen Lucker left
her position as assistant cashier of the
bank for employment with the State
Bank of Worthington, Worthington,
Minnesota.

Floodwood President Resigns
S. B. Ruohoniemi has resigned as
president of the First State Bank,
Floodwood, Minnesota. He has sold
his shares of stock to Chris Nielsen as
well as the First State Bank Insur
ance Agency. Stockholders of the
bank will hold a special meeting to
appoint new directors of the bank. A
reorganization meeting will follow.
Directors will then appoint new offi
cers for the bank.

Duluth News
(Jack) Olson, small
loans department manager of the
First and American National Bank,
headed a delegation of Duluth credit
persons attending the national con
vention of the National Retail Credit
Association in Milwaukee in May. He
is president of the Duluth Associated
Retail Credit Men.
ILD1NG J.

Edward B. Boyle, Duluth attorney
and a director of the Bank of Com
merce & Savings, is chairman of the
banquet committee for the annual con
vention of the Minnesota State Bar
Association in Duluth July 13 and 14.
Otto G. Lachmund, a director of
Northern National Bank, and Julian
V, Hagberg, vice president of Duluth
National Bank, have been appointed
members of the newly-created Duluth
airport board, which will deal with de
velopment of Duluth’s WilliamsonJohnson municipal airport.

Northwestern Banker Jane 194-4-

• MI N N ESOT A N E W S *
Willis 1). Wyard, president of First
and American National Bank, and
Richard L. Griggs, president of North
ern National Bank, were reelected di
rectors of the Minnesota Power &
Light Co. at the annual meeting of
stockholders in May.
I
Savings deposits of individuals and
firms in Duluth—mostly those of in
dividuals—are setting new records un
der the influence of wartime business
and expanded payrolls, an analysis of
Duluth bank statements reveals.
When bank statements were pub

l u

lished in mid-April, they disclosed
that combined time deposits of the
city’s eleven banks amounted to $28,690,000 compared with $26,937,000 on
January 1, or a gain over the three
and one-half month period of more
than $1,750,000.
Savings accounts appear in banks’
statements under the title, “Time De
posits of Individuals, Partnerships
and Corporations,” but Duluth hank
ers explain that 90 per cent or more
represents the savings of individuals.
AVhen year-end condition statements
were published last January, it was

important shipping center
of the Nation
Since 1879 the First and American National Bank
has contributed to the commercial and industrial
growth of Duluth and the Head-of-the-Lakes area.
Through country-wide connections it offers you
unexcelled correspondent bank facilities.

FIRST AND AMERICAN
NATIONAL BANK
DULUTH, MINNESOTA
MEMBER FED ERAL DEPOSIT IN SU RA N CE CORPORATION

Northwestern Banker Jane

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

pointed out savings deposits in Duluth
banks had increased 24 per cent in the
period between Pearl Harbor and
January 1, 1944, climbing to $26,937,000
from $21,621,000 at the year-end of
1941.
This increase in savings accom
panied wide expansion in Duluth’s
war production effort, with its attend
ant swelling of employment and pay
rolls of shipyards, factories, iron
founderies, the Morgan Park steel
plant, railroads, ore docks, and other
lines of production activity.
The jump in aggregate savings to
$28,690,000 in mid-April demonstrates
that the practice of “putting some
thing by” for the postwar period out
of wartime earnings still continues.
Added to this backlog of postwar pur
chasing power is the money invested
in war bonds. In the Fourth War
Loan, for instance, Duluthians pur
chased $3,484,000 worth of “E” bonds.
Duluth people owe a lot less money
on debts today than they did in 1940,
and they have almost doubled their
liquid assets over what they were be
fore the war—summing up to a healthy
and encouraging cash and credit situa
tion awaiting the beginning of the
postwar era in business and employ
ment.
In general, Duluth’s population on
June 30, 1943, was more than $54,000,000 better off in its cash and credit
position than it was on June 30, 1940.
These are the principal conclusions
contained in a survey conducted by
the finance subcommittee of the Du
luth Committee for Economic De
velopment, which made a financial
study of the city under the chairman
ship of Sylvester T. Strain, cashier of
First and American National Bank
and manager of the Duluth Clearing
House association.
The report points out that indebted
ness of Duluthians on June 30, 1943,
amounted to $24,917,691 compared with
$30,684,689 on June 30, 1940, represent
ing a debt reduction of $5,766,998. On
the other hand, total liquid assets in
creased over the period from $58,007,184 to $106,472,546.
“ It can be undeniably stated that
Duluth has made better than the aver
age record in retiring its debt and in
creasing its assets,” the committee as
serted.
Two previous reports made public
by the Duluth Committee for Eco
nomic Development dealt with em
ployment possibilities in the immedi
ate postwar period, and with buying
intentions of Duluthians in the first
two years after the conflict ends. The
first came to the conclusion there

• MI N N ES OTA N E WS *
would be 39,918 persons gainfully em
ployed in the city and 4,825 unem
ployed, or 4,152 more persons working
than there were in 1940. The second
foresaw $40,000,000 worth of retail
business awaiting to be done in the
things which people generally can’t
buy today because of wartime restric
tions.
Appointment of Charles F. Liscomb,
Duluth insurance man and bank direc
tor, as executive vice chairman of the
Minnesota War Finance committee,
was announced by O. J. Arnold, Min-

Edwin B. Bredeson, City National
Bank, was installed 1944-45 president
of the Duluth chapter, American Insti
tute of Banking, at the chapter’s 37th
annual dinner meeting May 25th. Wil
lard F. Ario, First and American Na
tional Bank, retiring president, was
toastmaster. Other new officers for
the year are: Edward M. Erickson,
first vice president; Charles E. Tay
lor, second vice president; Mabel Refseth, secretary; Rose C. Moritz, treas
urer; Viola Drogsvold, chairman of the
women’s committee, and Lucille Berglund, Harry W . Gooch, and Rena T.

Pearson, elected to the board of gov

ernors.
On a tour of Texas recently, Robert
S. Mars, president of the Duluth
Chamber of Commerce and a director
of First and American National Bank,
conferred the title, “Ambassador Ex
traordinary” upon a number of civic
and business leaders of the Lone Star
state, among them Governor Coke R.
Stevenson. The titles were bestowed
upon behalf of the Ambassadors of
Duluth, goodwill group of the Head
of the Lakes city.

CHARLES F. LISCOM B

neapolis, chairman of the Minnesota
body.
Mr. Liscomb will take over the du
ties of Harold G. Wood, St. Paul, who
has been forced by illness to give up
his services with the committee.
In his new capacity, Mr. Liscomb
will have direct charge of the Minne
sota Fifth War Loan campaign June
12th to July 8th. The state’s war bond
quota for the drive has been fixed at
$246,000,000.
Sharing Mr. Liscomb’s former posi
tion as chairman of the St. Louis Coun
ty War Finance committee will be
Fred W. Buck, Duluth real estate man,
and S. A. Rockwell, Hibbing mining
engineer, who received appointment
as co-chairmen of the county war bond
unit.
Chosen early this year as Duluth’s
latest Hall of Fame member, Mr. Lis
comb is a director of the First and
American National Bank, past presi
dent of the Duluth Chamber of Com
merce, and a leading figure in North
west insurance circles. He was head
of the Duluth and St. Louis county
war bond program from its inception
in 1941.

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

is it S o u t h

t . P

a u

W e invite out of town bankers attending
the Minnesota Bankers Convention to call
on us in South St. Paul and learn more
about

the

operation

their livestock

market.
W e would welcome the opportunity of
becoming better acquainted with you.
★

The

★

Stock Yards National Bank
Sooth Saint Paul, Minn.
M E M B E R F E D E R A L D E P O S IT INSURANCE C O R P O R A T IO N

Northwestern Banker Jane

T w in C it y N ew s

lexander A. McRae, 74, founder

By James M. Sutherland

and chairman of the board of
Special Correspondent
Fourth Northwestern National Bank
and prominent in Minneapolis civic
affairs, died suddenly last month.
Born at Glencoe, Ont., he came to
Minnesota in 1890 and worked in a ago he and Mrs. McRae sold their
bank in Little Falls. In 1892 he or home to the city to become the resi
ganized the Bank of Hutchinson, dence of Sister Elizabeth Kenny.
Minn., remaining there as assistant
cashier until 1899. At that time he
Robert E. Smith, Minnesota Com
moved to Minneapolis and organized
the South Side State Bank, serving as missioner of securities for the past
cashier, vice president and president five years, has been elected a vice
until it affiliated with Northwestern president of Investors Syndicate, in
National Bank, becoming the Fourth charge of sales of investment certifi
cates of Investors Syndicate of Amer
Northwestern.
With this affiliation, Mr. McRae be ica, Inc., and of shares of Investors
came vice president of Northwestern Mutual, Inc., Earl E. Crabb, chairman
National, holding that position from of the board, announced following a
1917 until 1935, when he reached the meeting of directors.
65-year retirement age. He continued
Mr. Smith’s resignation has been
with Fourth Northwestern, however. accepted by Governor Edward J. Thye.
Mr. McRae also was vice president He is a graduate of University of Min
of the Minneapolis Park Board. A year nesota college of law. Prior to his

appointment as state securities com
missioner by former Governor Har
old E. Stassen, February 1, 1939, he
had extensive experience in the insur
ance and investment businesses, and
has served as vice president of the Na
tional Association of Securities Com
missioners.
Assets of the Investors Syndicate
group of affiliated companies exceeded

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

C it y N a tio n a l I I a n k
AND

T R U S T

2 0 8

S O U T H

C O M P A N Y

of Chicago

L A S A L L E

(Member Federal Deposit Insurance Corporation)

Northwestern Banker June 1944

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

S T R E E T

R O B E R T L. S M IT H
E lected V ice President

$218,000,000 as of December 31, 1943,
while holders of their securities num
bered more than 325,000. With head
quarters in Minneapolis, the compa
nies operate in 43 states, District of
Columbia and eight Canadian prov
inces and maintain divisional offices
in 150 cities of United States and Can
ada. Directors of Investors Syndicate
are Paul E. A on Kuster, John M. Har
rison, Henry M. Gallagher, Earl E.
Crabb, chairman and president, and
E. M. Richardson, vice president and

treasurer, all of Minneapolis.
(Turn to page 42, please)

W elG am z to - S a in t P a u l-A

program o f w artim e banking and

postwar banking considerations— two
days
th e

o f purposeful

m eetings— th a t’s

M in n e so ta Bankers A ssociation

Convention in Saint P aul!

MINNESOTA BANKERS
ASSOCIATION
CONVENTION
JUNE

W e hope you ’ re com ing— to benefit
by the “ brass-tack”

13 A N D

SAINT

sessions— to see

PAUL

the old friends— and to have a part in
the relaxation o f the entertainm ent
features. I t ’ s our feeling th at June 13
and 14 will, for any M innesota banker,
be days well spent in Saint Paul.

at the First N ational the decks will be
cleared for good old-fashioned visiting

And we w ant you to know that here

The First National
Richard C. Lilly, President
AFFILIATED

WI T H

F I RST

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

BANK

STOCK

with all our fellow-banker guests.

Bank of Saint Paul
Frederic H . Bigelow, Chairman Board of Directors

CORPORATION

MEMBER

FEDERAL

DEPOSIT

D E P A R T M E N T OF B A N K S AND B A N K E R S
A ld e n B. Lathrop - - - - - - - - Vice President
Rodney F. S t u r l e y .............................................................................................. Cashier
Lee A . Sauer
- - ................................................... Assistant Cashier
Elmer M . Volkenant
- - - - - - - - - - - - Assistant Cashier
Wallace L. Boss - - - - - - - - - Assistant Cashier

INSURANCE

CORPORATI ON

• M I N N ESOT A NEWS
Richard C. Lilly, president of First
National Bank, St. Paul, was re-elected
a director of the Great Northern Rail
way at the annual meeting of stock
holders, held in St. Paul. He was one
of fours directors re-elected for threeyear terms.
H. I. Ziemer, vice president Federal
Reserve Bank of Minneapolis, is the
new president of the Minnesota group,
Robert Morris Associates. Other offi

• • •f or
over 40

cer-s named at the annual meeting
were: C. P. Reis, assistant cashier
American National Bank, St. Paul,
vice president; James A. Galbraith,
assistant cashier of Midland National
Bank & Trust Co., Minneapolis, secre
tary-treasurer. Elected to the board
were: A. L. Peters, vice president of
First National Bank, St. Paul, the re
tiring president of the organization,
and Araulf Ueland, president Midland
National Bank & Trust Co.

Good Bank to

Based on a Policy
of Cooperation
—N ot Competition
Under the direction o f officials
with years o f service in this field,
assuring a knowledge o f require
ments and valuable assistance.

Do Business ^ itli*
GTfte

The City National
Bank of Duluth
DULUTH, MINNESOTA
M em b er
F ed era l D e p o s it Insu rance C orporation

Northwestern Banker June Í944

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

William J. Kay, president of North
land Greyhound Lines, Inc., was elect
ed a director of Produce State Bank,
Minneapolis, at a meeting of stock
holders of the First National Bank

A n Intimate,
Personalized
Correspondent
Bank Service

years . . .
“A

•

Public National
BANK

AND

COMPANY

TRUST
NEW

E S T A B L I S H E D

YORK
1908

Main Office: 37 Broad Street
M em ber: N ew Y ork Clearing House
Association, Federal Deposit Insurance
Corporation

W I L L I A M J. K A Y
D irector

affiliate. Other directors are President
Guy W. LaLone, Hugh Arthur, G. O.
Lee, S. T. McKnight, S. G. Palmer, Jr.,
A. P. Staey, Ell Torrance and C. F.
Witt.

Another Minneapolis Federal Reserve
Bank official, A. W. Mills, cashier, was
elected president of the Twin City
Bank Auditors and Comptrollers Con
ference at its annual meeting.
Elected vice president was C. W.
Messenger, assistant cashier Stock
Yard National Bank, South St. Paul;
secretary, 1). W . Palmer, cashier Chicago-Lake State Bank, Minneapolis;
treasurer, Fred Paul, First Trust Co.,
St. Paul.
H. C. Timherlake, economist for
Northwest Airlines and former statis
tician of the Federal Reserve Bank,
told the group that American business
after the war will be dominated to a
large extent by air-minded men as a
result of wartime emphasis on avia
tion. He said aviation authorities
foresee an increase of 1,000 per cent in
air travel and 5.000 per cent in air
cargo after the war, with 4,000 to 5,000
commercial airliners in operation.
R. AY. Webb, vice president of First
National Bank, Minneapolis, has start
ed his fifty-first year with that institu
tion. He began with the Minneapolis
Trust Co., which in 1933 was merged
with First National.

• MI NN E SOT A NE WS F. A. Amundson, Minnesota state
banking commissioner, has announced
several changes in his department.
Rolf B. Hage, assistant examiner in the
country department, has been made
office manager succeeding H. J. Dover,
in military service. Floyd O. Smith,
assistant examiner on credit unions,
has been shifted to a similar post in
the country department, and Frank
H. Coyle, assistant examiner, has been
transferred from city banks to credit
unions.

County Bankers Meet
Banking problems and war finance
were the highlight topics at the quar
terly meeting of the AVright County
Clearinghouse Association held at St.
Michael, Minnesota, last month. Helmuth Kurth, president of Minnesota
Bankers Association, greeted the
guests and gave a review of present
banking conditions. The problem of
“exchange” was discussed by Wm.
Duncan, Jr., also of the Minnesota
Bankers Association. Emil Boie, dep

uty manager of the agricultural divi
sion of the Treasury Department, pre
sented an outline of the plan to finance
the next war bond drive. L. C. Vobeyda also devoted his remarks to the
war bond drive. A short talk also was
given by Albert P. Hechtman of Osseo.

Fill Vacancy
At the regular meeting of the di
rectors of the First National Bank of
Herman, Minnesota, held recently,
Louie Hidde was elected president to

Thirty-fifth anniversary of the found
ing of Midland National Bank & Trust
Company was observed last month
with a dinner of officers and directors
of the bank. Organized as Scandinavian
American National Bank, it changed
its name to Midland in 1914. Ariralf
Ueland, present president, is a son of
the late Judge Andreas Ueland, one of
the founders. Where the bank had
$720,309 in deposits at the end of the
first year, its current deposit total is
$49,250,949.
The greatest service bankers can
render their communities and the na
tion is to provide adequate financial
service needed by nearly 2,000,000
small business men, members of Min
neapolis chapter, American Institute
of Banking, were told at their 46th
annual meeting. Speaker was Jay C.
Hormel, president of Geo. A. Hormel
& Co., Austin, Minnesota, packing
firm.

J a m ie s o n
&

C om pany
Members

Correspondent Bank
Service
A

policy of strict adherence to
sound banking p rin cip les has
brought to this bank correspond
ents from every part of the country.
They find here adequate facilities
and competent counsel.
The bank needing a Chicago corre
spondent will find an association
that should prove pleasant and
profitable.

New York Stock Exchange
and Other Principal Exchanges

★

STOCKS
BONDS
COMMODITIES
★
MINNEAPOLIS
ST. PAUL
DULUTH

FARGO
GRAND FORKS
SIOUX FALLS

The First National Bank
o fChicago
Building ivith Chicago and the Nation since 1863

PRIVATE WIRES

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

Northwestern Banker June 1944-

• MINNESOTA
fill the vacancy occurring through the
death of Ernest E. Peck. Mrs. Bertha
E. Peck was elected a director.

Bank Second in County
Columbia Heights State Bank, Co
lumbia Heights, Minnesota, shows
total resources of $956,000. When the
bank has grown another $44,000, it will
have reached the coveted “Million Dol
lar” mark, which it has been shooting
at for six years. In commenting on
the bank’s growth, Henry Woodward,
cashier, said: “Our home bank is now

NEWS

•

the second largest bank in Anoka
county. In 1937, when it opened for
business, it was the smallest of this
county’s four banks. In 1938 and 1939
its growth raised it to third place. The
present statement shows it has passed
another of its neighbors and is now in
second place.”

American National Bank of Little
Falls. He served in that capacity for
10 years and was cashier for 14 years.
He left the bank in 1922 and opened
an insurance and real estate effice of
his own. Later he served as liquidat
ing agent for the state banking de
partment.

Former Banker Dies

Minnesota Bank Debits

E. J. Richie died at his home in Lit
tle Falls, Minnesota, last month. In
1898, Mr. Richie accepted a position
as assistant cashier in the German

Accumulated totals indicate that for
the first quarter of this year debits in
the Mankato, Minnesota, area are run
ning 19 per cent above those for the
same 1943 period. Bemidji’s accumu
lated totals indicate that for this same
period debits are 48 per cent above
those for 1943. A 13 per cent increase
was indicated for the first quarter of
1944 over those for the same period
last year in Red Wing, Minnesota, ac
cording to the Ninth Federal Reserve
Bank.

Slick Up Bank

T h e C en ter Spot

C. L. FRED RICKSEN
President
M. A. W IL SO N
V ice President

Four states “ Put In” and "T ake Out” of
the Sioux City market, and the Live Stock

W . G. NELSON
Assistant V ice President

The Farmers and Merchants State
Bank, Ruthton, Minnesota, is under
going a few changes and improve
ments on the interior. The fixtures
will be changed from the old style
“caged in” type. A fine marbelized in
laid linoleum covering has been laid
in the office at the rear. Redecorating
of the walls is also being done.

National Bank of Sioux City serves the

W. C. SCHENK
Cashier

bankers of all four states, including Iowa,

H. C. L IN DU SKI
Assistant Cashier
and Manager of
Air Base Facility

South Dakota, Nebraska and Minnesota.
Our front line location right in the center

C. L. ADAMS
Assistant Cashier

of the Sioux City stock yards means better

J. S. H A V E R
Assistant Cashier

service to our country bank customers. Let

JAMES L. SM ITH
Auditor

us serve you, too, as we serve scores of
banks in the Sioux City market area.

Talks on "Federal Debt"
Dr. Roger W. Valentine, economist
for Halsey-Stuart and Company, was
an Iowa visitor last month, as the
guest of Holden H. Smith of Des
Moines, representative for the com
pany. Dr. Valentine talked at sev
eral meetings in Des Moines with
banks and insurance companies. He
also addressed meetings in Ames and
Cedar Rapids, and was the speaker at
a meeting of the Marshall County
Bankers Association in Marshalltown,
speaking on “The Federal Debt and
Its Effect on Banks.”

Fall Conference

L
N

ive

a t i o n a l
OF

SIOUX
M E M B E R

'7 / t^

Northwestern Banker June

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

o c k
B

CITY.
F .D .I .C .

t/ te

IOWA

The Fall Conference of the Robert
Morris Associates, a national associa
tion of bank credit men, will be held at
the Edgewater Beach Hotel in Chicago
on October 22, 23 and 24. The Chicago
Chapter, under the presidency of John
F. Mannion, vice president, Continen
tal Illinois National Bank & Trust
Company, will act as host. The Chap
ter’s executive committee is preparing
a program based on important current
subjects that it believes is certain to
assure a large attendance of the or
ganization’s members

SOUTH
D A K O T A
NEWS
T. N. HAYTER
President
Sioux Palls

Acting Secretary
LOIS J. HALVORSEN

GEORGE M. STARRING
Secretary-Treasurer
Huron
( I n the S ervice)

The South Dakota Convention
(Continued from page 18)
“An AIB Story for Country
Bankers”—Wm. C. AVay, Cleve
land, Ohio, president, American
Institute of Banking.
“Problems and Prospects in
Postwar Finance” — Dr. Paul
Cadman, economist, American
Bankers Association, New York,
New York.

Bank Sold
The Chancellor State Bank of Chan
cellor, South Dakota, was recently pur
chased by C. G. Benning, Vinal Clikeman and Verne Gotthelf of Parker and
Alan Bogue, Ray G. Stevens and Rich
ard Stevens of Vermillion and A. H.
Winter of Sioux Falls. E. C. Hofmeister, who has been president of the
bank for many years, has been run
ning the bank alone for the past nine
months. Verne Gotthelf, now cashier
of the Parker State Bank, will operate
the Chancellor Bank until permanent
help can be secured.

Assumes Office
E. O. Anderson, who was elected a
vice president of the Farmers and
Merchants Bank, Watertown, South
Dakota, at the January meeting of the
board of directors, became active in
the management of the bank last
month. He came to South Dakota in
1919 and was connected with the Da
kota State Bank at Blunt for 14 years,
first as a bookkeeper and teller and
then as an officer of the bank. For
seven years he served as a regional
supervisor of collections in the Fed
eral Land Bank of Omaha.

Joins Mitchell Bank
Bernice Brown, daughter of Mr. and
Mrs. Bernard Brown, formerly of Ar
mour, has recently accepted a position
at Commercial Trust and Savings
Bank at Mitchell, South Dakota.

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Former Banker Dies
Word has been received of the death
of J. E. Platt, a pioneer resident of
Clark, South Dakota, and prominent
throughout the state of South Dakota
for a number of years. Mr. Platt was
one of the organizers of the Security
Bank in Clark and served as its cash
ier and later as president until selling
to H. L. Hopkins and associates.

Changes Cashiers
Wm. Wenzel, who has been em
ployed in the Security State Bank, Mc
Intosh, South Dakota, for the past
year as cashier, left recently for Eu
reka, where he will take over his
brother’s business. J. W. Anderson is
slated to take over the cashier job at
the Security State Bank.

Bank Employe Married
In a wedding ceremony at St. John’s
Episcopal church in Omaha, Nebraska,
recently, Betty Norling, daughter of
Art Norling, Beresford, South Dakota,
became the bride of Corporal Leslie
Volden of Fort Story, Virginia. The
bride graduated from Beresford High
School in 1942 and has since been em
ployed in the Omaha National Bank
and in the office of the bomber plant
at Omaha. The bridegroom is now
stationed at Fort Story, Virginia.

Sioux Falls News

ment, who gave an inspiring talk on
“Business Plans for Postwar Prosper
ity.”
Among the guests present for the
meeting were J. Cameron Thomson,
Minneapolis, president of the North
west Bancorporation; Dr. Arthur Upgren, Minneapolis, vice president of
the Federal Reserve Bank, and A. H.
Kennedy, Minneapolis, president of
the First Bank Stock Corporation.
The evening meeting followed an
afternoon conference on results of ex
tensive postwar employment surveys
made by the Greater South Dakota As
sociation and the extension division of
South Dakota State College. The sur
veys indicated that 26,000 more jobs
would be available after the war than
in 1940, and that minimum postwar
capital expenditures would total $250,000,000 for the state.
At the evening meeting, Mr. Hoff
man called for a 30 to 45 per cent in
crease in production and distribution
of goods over the 1940 level as the only
means of preventing mass unemploy
ment or mass government employ
ment, either of which he said “would
lead straight down the road to dis
aster.”
More than 700 business leaders at
tended the meeting, at which Mr. Wat
son presided.
As the result of two recent meet
ings, a permanent organization of
South Dakota bankers serving rural
communities has been formed. The
proposed organization was discussed
recently at a meeting at which the
Maybank bill in the U. S. senate was
given unanimous approval.
Last month approximately 100 rural
bankers met at Huron and organized
the South Dakota State Bank commit
tee. Named to the executive board
were O. D. Hanson, vice president of
the Bank of Union County, Elk Point;
George D. Belli, president of the Farm
ers and Merchants State Bank, Scot
land; L. C. Foreman, president of the
Corn Exchange Bank, Elkton; J. F.
Holdhusen, cashier of the Ipswich
State Bank, Ipswich, and C. J. Poshusta, president of the Underwood
State Bank, New Underwood.
Functions of the committee will not
conflict in any way with those of the
South Dakota Bankers Association, it
was reported.

USINESS leaders from throughout
the midwest convened in Sioux
A syndicate composed of the North
Falls last month for a meeting arwest Security National Bank, the
ranged under the chairmanship of Union Savings Bank and the Western
Ralph M. Watson, president of the Surety Company, all of Sioux Falls,
Chamber of Commerce and the North purchased city real estate purchase
bonds in the amount of $30,000.
west Security National Bank.
The bonds were issued to finance the
Speaker of the evening was Paul G.
Hoffman, president of the Studebaker purchase of 40 acres of land in the city
Corporation and national chairman of as the site for a veterans’ administra
the Committee for Economic Develop tion hospital, and will be partially re-

Northwestern Banker June 1944-

•

SOUTH

tired with $12,000 which the city will
receive for the land from the admin
istration.
The city will pay one per cent in
terest on the bonds, which are to run
for one year from date of issuance.
When the bond issue was approved
by city voters it was provided that the
interest rate should not exceed three
per cent per annum.
S y n d ica te representatives were
Ralph M. Watson, president, and P. H.
McDowell,' vice president and cashier,
for the Northwest Security National
Bank; William C. Duffy, vice president
of the Union Savings Bank, and Tom
Kirby, attorney for the Western Sure
ty Company.
Election of Oscar A. Fristad as as

DAKOTA

NEWS

sistant manager of the Huron branch
of the National Bank of South Dakota
was announced by Tom S. Harkison,
president of the bank. Fristad former
ly was a field representative for the
Mutual Benefit Life Insurance Com
pany. He will succeed C. W. Davis,
assistant manager of the branch, who
contemplates early military service.
C. A. Christoplierson, president of
the Union Savings Bank, was elected
a delegate to the national Republican
nominating convention in the May
South Dakota primary. He has ex
pressed his support for Gov. Thomas
E. Dewey of New York for the presi
dential nomination and Gov. Earl
Warren of California for vice presi
dent.

NORTHWESTERN BANKERS PROFIT BY
COOPERATION
N O W CELEBRATING OUR 25TH ANNIVERSARY
W e Offer You A Successful Plan of Cooperation
RESULTS OBTAINED
R eie ren ce s:

A n y Banker N ow M aking M oney On This Plan

Policyholder's National Life Insurance Company
Sioux Falls

South Dakota

•
Christopherson has also announced
his candidacy for the position of Re
publican national committeeman from
South Dakota. The position was to be
filled at the party’s state convention at
Watertown on May 29.
The 1944 Sioux Empire fair in Sioux
Falls will feature five nights of stage
entertainment, produced by Ernie
Young, it was announced by Frank J.
Cinkle, cashier of the National Bank
of South Dakota and treasurer of the
Sioux Empire Fair Association. Strong
emphasis at the fair will be placed on
4-H club achievement days and a pure
bred livestock show, expected to at
tract exhibitors from throughout the
midwest, Cinkle said.
Robert M. Watson, president of the
Northwest Security National Bank,
was toastmaster at a recent luncheon
at which 75 Sioux Falls business men
gathered to hear a discussion by Doug
las Scaley, vice president and manager
of the Utah-Idaho Sugar Company.
Scaley predicted that South Dakota’s
increase in sugar production during
1944 will be greater than in any other
sugar growing area of the western
United States, and said production in
the Black Hills area will be at least
40 per cent over the 1943 level.

All Sioux Falls banks are making
extensive preparations for participa
tion in the Fifth War Loan campaign,
opening June 12. The state’s quota in
the drive is $37,000,000, an increase of
$9,000,000 over the goal in the January
drive, it was announced by C. A. Chris
topherson, president of the Union Sav
ings Bank and executive director of
the state war savings staff. Of the
Minnehaha county goal of $6,584,000,
Sioux Falls will be asked to sell bonds
totaling $5,346,400 in the drive.

S e r v in g “ T h e H i l l s " S in c e H e ld H u sh H u g s
A/

f f O W , as then, we welcome the opportunity to be of service to bankers and their
clients in the Black Hills. In our main office, seven branches, and A ir Base facility
we continue to offer increasin sly complete banking facilities and pridefully point
to the many services we offer.

First National Bank o f The Black Hills
RAPID CITY • LEAD • DEADWOOD • BELLE FOURCHE
HOT SPRINGS • STURGIS • SPEARFISH • NEWELL
Serving the Entire Black Hills Territory
AFFILIATED WITH NORTHWEST BANCORPORATION

Northwestern Banker Jane

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Federal Reserve Bank of St. Louis

•

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

•

SOUTH

Sioux Falls bankers have enjoyed
meeting Pvt. W. H. Brenton, Jr., a
student at Sioux Falls Army Air Field,
who is the son of AV. H. Brenton of
Des Moines, president of the Brenton
banks at Dallas Center, Jefferson,
Grinnell, Perry, Adel, Emmetsburg
and Vinton in Iowa.
B. C. Grangaard, assistant cashier of

the National Bank of South Dakota,
served as critic judge of a debate on
the question of establishing a United
States of Europe after the war, staged
in Sioux Falls by the Athenian Club

DAKOTA

NEWS

Mr. Buckman had been with the
Fargo bank about a year, coming from
Valley City, N. D.. where he was cash
ier of the First National Bank.
A\r. R. Braseth, employe of the Mer
chants National Bank and Trust Com
pany, Fargo, was elected president of
the Fargo Junior Chamber of Com
merce, succeeding Glenn Nelson, at
the annual meeting.
North Dakota’s biggest postwar job
will be to assist returning servicemen
to locate and finance farm homes, it
was agreed at a conference held in

•

Fargo May 17th of officials of the
Greater North Dakota Association,
North Dakota State Planning Board,
North Dakota Taxpayers Association,
North Dakota Bankers Association,
farm managers and investment com
panies.
Highlights of the conference were
addresses by Paul G. Hoffman, presi
dent of the Studebaker Corporation
and chairman of the national commit
tee for economic development, and by
J. Cameron Thomson of Minneapolis,
president of the Northwest Bancorporation.

New Bank at Leola
The Leola State Bank of Leola,
South Dakota, opened for business
last month with a capital of $25,000
and a surplus of $5,000, it was an
nounced by Erling Haugo, superin
tendent of banks. The officers of the
new institution are: J. F. Holdhusen,
president, John J. Rath, vice president,
and C. E. Knutson, cashier.

F A R G O N EW S
(Continued from page 49)
H ector and associates, Mr. Macfadden
became its first cashier. He later
served with other Fargo banking in
stitutions. He became secretary of
the state bankers association when it
was organized in 1903. He devoted his
full time to that office in later years
and in 1932 retired. One of the out
standing problems in those days, be
fore the radio and fast cars, was bank
robbery, which flourished throughout
the Northwest. Through his intensive
study of the problem Mr. Macfadden
was able to accomplish much in the
reduction of the number of holdups.
Mr. Macfadden was a member of the
Masonic lodges, the Fargo Country
Club, Detroit Lakes, Minn., Country
Club, near where he maintained his
summer home; the Sons of the Ameri
can Revolution, Sons of Veterans, the
Y. M. C. A. and Gethsemane Episcopal
church. He was church treasurer 25
years and was a former president of
the Y. M. C. A.
In his youth Mr. Macfadden was a
member of Company C, 17th Regiment,
Ohio National Guard, and during his
later years served as civilian aide for
North Dakota to the U. S. secretary
of war, retiring ih 1940.

STATEMENT OF CONDITION

N O R T H W E S T

SECU R ITY

N A T IO N A L

B A N K

of Sioux Falls, South Dakota
“ South Dakota s Leading Bank ”
A p r il 13, 1944
RESOU RCES
Cash on Hand, in F ederal R eserve Bank, and Due from Banks
and Bankers ..................................................................................................$ 6,744,135.65
U. S. Governm ent O b lig a tio n s ................................................................... 17,216,453.28
State and M u n icip al B o n d s ..........................................................................
818,229.43
Other Bonds and S e cu ritie s........................................................................
346,263.81
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 N ot C o lle c te d ....................................................................................
T O T A L ...................................................................................................................................

$25,125,082.17
30,000.00
3,157.28
3,088,945.25
314,383.22
99,276.02
$28,660,843.94

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

500,000.00
500,000.00
361,438.86
$1,361,438.86
101,701.01
7,652.70

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 e p o s its :
T im e ................................................................................................................ $ 3,137,197.57
Dem and ...............................
21,672,552.21
U. S. W a r L o a n ........................................................................................... 2,380,301.59

$27,190,051.37
T O T A L ...................................................................................................................................

$28,660,843.94

BRANCHES AT

BROOKINGS, CHAMBERLAIN, DELL RAPIDS,
GREGORY, HURON, MADISON
B A N K IN G F A C I L I T Y A T

SIO U X F A L L S A R M Y A IR F IE L D

Donald AV. Buckman, assistant cash
ier of the Merchants National Bank
and Trust Company, of Fargo, N. D.,
recently entered the service of his
country. He is the only officer of the
bank serving in the armed forces.

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Federal Reserve Bank of St. Louis

Sioux F alls, S. D.

FRED H. H O LLISTER
Chairman

R A LPH M. WATSON
President

United States Depositary
Member Federal Deposit Insurance Corporation

Northwestern Banker Jane 1944

LIFE WITH

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in envelopes, we "live with Uncle
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velopes are built to conform to
the latest postal regulations.
Tension knows how!

T e n s io n

E n v e l o p e

C o r p .

BERKOWITZ ENVELOPE CO.
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WARTIME has greatly speeded up the volume and
tempo o f transactions between banks. The facilities o f
Manufacturers Trust Company are available to corre
spondent banks for:
The handling o f notes, drafts and collections. . . servicing
o f mortgages on property located in Greater Neu> York,
Long Island and Westchester . . . safekeepingof securities
fo r the account o f correspondents.. .quotations on govern
ment bonds, and the handling o f purchases and sales. . .
investment advisory service . . . advice on tax problems.

These are but a few o f the services which we now make
available to correspondents.

MANUFACTURERS
TRUST COM PANY
PRINCIPAL OFFICE: 55 BROAD STREET, NEW Y O R K 15, N.Y.

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6 8 COMPLETE BANKING OFFICES IN GREATER NEW YORK

Member Federal Deposit Insurance Corporation

F. A. Irish, president of the First
National Bank and Trust Company of
Fargo and chairman of the North Da
kota CED, presided at the sessions.
Mr. Hoffman spoke at a banquet in
the Elks temple, which concluded the
all-day meeting. He cautioned against
“the hazards of thinking about num
bers alone when we think about jobs,”
and criticized those who seek a 30-hour
or 40-hour week as the solution to the
problem.
“They forget,” he declared, “that
only by producing more can we have
more to be divided. They don’t real
ize they are preaching a gospel of de
spair and launching nothing more
than an attack on our standard of liv
ing.”
“Once more we are being told,” Mr.
Hoffman said, “that technological ad
vancements, accumulating during this
war period, should be introduced in
our postwar economy with great cau
tion. My one fear is that it will take
too long to take advantage of new ma
terials, the new manufacturing proc
esses and the new inventions.
“Only by speeding up, not slowing
down the application of these ad
vances, can we bring into full play
that prime tool for expanding mar
kets—better, fresher merchandise at
prices that represent better values.”
Mr. Thomson declared it had been
explained to him that North Dakota
does not have a single great war in
dustry; that there would be no great
transition problems and that the state
would welcome home its service men
and those who had gone to munition
plants.
“But you have a farm problem,” he
said, “and I feel North Dakota has
perhaps gone farther than any other
state in working toward a solution.”
Gov. John Moses of North Dakota,
who spoke during the day, gave a re
port on his recent trip to Washington
in the interests of the Missouri river
development program and he ex
pressed the hope that a compromise
program may be worked out.

99 Per Cent Greater
Bank debits in Jamestown, North
Dakota, increased 17.2 per cent in 1941
over their 1940 volume. In 1942 they
were 29 per cent greater than in 1940,
while the 1943 volume was 67.6 per
cent greater than 1940 debits.

New Exchange Manager
Marion Whitehead, daughter of Mr.
and Mrs. Henry Whitehead of Inkster,
North Dakota, former Fordville resi
dents, has accepted the position as
manager of the bank exchange at
Fordville. She will succeed Alice
Ryba who resigned her post.

49
State Bank. He replaces Paul Skarstad, who has resigned. Mr. Lee’s wife
and children are joining him the first
of this month.

NORTH
D A K O T A

Fargo News

NEWS
H . A . F IS C H E R
President
W ashburn

New Mandan Cashier
The First National Bank of Mandan, North Dakota, recently an
nounced the election of Arthur Hagen
as cashier to fill the vacancy caused by
the resignation of A. E. Lubke. Mr.
Hagen has been a resident of the State
of North Dakota since 1915, being as
sociated with the Farmers State Bank
of Arnegard, now the First Interna
tional Bank of Watford City, as cash
ier and vice president. He resigned
his position there in 1933 to become
affiliated with the Regional Agricul
tural Credit Corporation during the
refinancing period and acted as their
field supervisor for the western half
of the state. In 1937 he resigned that
position to affiliate with the Federal
Deposit Insurance Corporation which
position he held until the present time.

Receives Honor
For the thirteenth time the North
Dakota Bankers Association has won
the “ 1,000 plus rating” of the Ameri
can Bankers Association for its rec
ord of service to farmers, according to
A. C. Brown, deputy manager of the
ABA. Brown reported to C. C. Wattam, secretary of the North Dakota
Association, that replies to question
naires have been received from 123 of
the 157 banks, which gave the state
an official rating of 2,068 points. He
writes: “ I want to congratulate the
officers, Fred Irish and you for the
fine cooperation which has made this
possible, particularly since you stress
the importance of agriculture in your
state.”

Exchange Charge Regulation
The North Dakota Banking Board
has adopted the following regulation
with reference to exchange charges by
state banks in North Dakota:
WHEREAS, A great deal of dissat
isfaction and criticism has been
aroused by the exchange charges ap
plied by state banks of this state in
remitting for items received in cash
letters, particularly the charges on
small items and the allegedly exorbi
tant charges made on exceptionally
large items, and

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Federal Reserve Bank of St. Louis

C. C. W A T T AM
Secretary
Fargo

WHEREAS, There is a very definite
probability that this dissatisfaction
may result in the enactment of legis
lation which would prohibit all such
charges, and thus deprive our state
banks of this necessary and legitimate
form of revenue, unless a more equi
table and satisfactory schedule of ex
change charges is adopted and uni
formly observed, and
WHEREAS, A majority of the oper
ating state banks in this state have in
dicated a desire to have such exchange
charges regulated and controlled by a
formal regulation of the State Bank
ing Board;
NOW, THEREFORE, Under author
ity granted by Section 3, Chapter 71,
of the 1933 Session Laws of the State
of North Dakota, the following is
hereby adopted as the Order and Reg
ulation of the State Banking Board of
the State of North Dakota:
From and after May 1, 1944, no state
bank, organized and operating under
the laws of the State of North Dakota,
shall charge, deduct, or otherwise col
lect, exchange fees on checks or other
cash items received in the regular
course of business from other banks
or trust companies within or without
the state for collection and remittance
or collection and credit, in excess of
the amounts set forth in the following
schedule; provided, however, that this
order and schedule shall apply only to
items received in what are commonly
known as regular “Cash Letters,” and
shall not be construed to apply to bills
of lading, sight drafts, or other items
requiring special handling:
On items of $1 and under, no charge;
on items of $1.01 to $10, not to exceed
5 cents per item; on items of $10.01 to
$100, not to exceed 10 cents per item;
on each item over $100, not to exceed
10 cents for each hundred dollars or
fraction thereof per item, provided
that the maximum charge for any one
item shall not exceed $1.

Comes to Grafton Bank
Alver E. Lee of Lamberton, Minne
sota, arrived in Grafton, North Da
kota, recently to begin his new duties
as assistant cashier at the Security

C. MACFADDEN of Fargo, N.
♦D., a resident of North Dakota
for 59 years and first secretary of the
North Dakota Bankers Association,
died at age 87 in a Fargo hospital,
where he had been a patient since May
9. Mrs. Macfadden died in January of
this year.
Surviving are a daughter, Mrs. S. L.
Chesley of Fargo, and two sons, Wil
liam S. of Minneapolis, Minn., and Lt.
Cmdr. Ward Macfadden, USNR, serv
ing with the Pacific Fleet and sta
tioned at San Diego, California.
Mr. Macfadden served 29 years as
secretary of the North Dakota Bank
ers Association. He also was a former
treasurer of Cass county and was ac
tive in banking in Fargo.
Born at Mount Vernon, Ohio, on

W . C. M A C F A D D E N

March 17, 1857, he was educated in the
local schools, then entered the employ
of the Knox National Bank of Mount
Vernon, where he became assistant
cashier. Fie came to North Dakota in
1885, settling in Everest township,
Cass county, where he purchased land,
engaged in farming and also grain
buying. In 1891 he was named deputy
Cass county treasurer, serving a year
and a half. In 1893 he became cashier
of the Cass County State Bank of Casselton, serving until 1894, when he
was elected county treasurer. He was
re-elected in 1896.
In 1897, when the Fargo National
Bank was founded by the late Martin
(Turn to page 47, please)
Northwestern Banker June

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Federal Reserve Bank of St. Louis

51
Gering, Nebraska, will move soon with
his family to Lincoln where he will be
employed in the Bank of Commerce.

NEBRASKA

Saturday Evening Hours
The State Bank of Scotia, Scotia,
Nebraska, last month announced that
the bank will be open every Saturday
night from 7 to 9:30 o’clock. The new
Saturday hours were put into effect to
give better service to rural customers.

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

R. I. STOU T
President
Tekamah

Five Candles
The Bank of Bertrand, Bertrand, Ne
braska, celebrated its fifth anniversary
recently. In comparing statement fig
ures now and June 30, 1939, deposits
showed $49,570 then and are $425,893
now. Total assets have increased from
$74,307 to $455,256 over that period of
time. Officers of the Bank of Bertrand
are: H. S. Kingsley, president; Theo
dore Swanson, vice president; Andrew
Jensen, vice president; A. H. Walentine, cashier, and Marjorie Bjorklund,
assistant cashier. Directors include
Mr. Jensen, Mr. Swanson, Mr. Kings
ley and Neil Shreck.

Becomes Assistant
Vice President
J. O. Peck, president of the Central
National Bank, Columbus, Nebraska,
announces that at a recent meeting of
the board of directors of that institu
tion, William L. Boettcher, Jr., was ad
vanced to assistant vice president. He
was formerly assistant cashier.
Mr. Boettcher has been with the Cen
tral National for the past ten years,
coming there from the Farmers State
Bank of Columbus. He is a native of
Columbus, is a director of the local
park board, a director of the Junior
Chamber of Commerce, and a member
of the Columbus fire department.

Bank President a Delegate
E. E. Jackson, president of the Farm
ers National Bank of Grant, Nebraska,
was elected a delegate to the State
Republican Convention, which met at
Norfolk last month and at the district
meeting was elected to the state cen
tral committee of the Republican party
for the coming two years. He was also
the keynote speaker at the Republican
Convention Rally at Ogallala, Nebras
ka, recently.

Y. H. Seaton, cashier of the Bank of
Hemingford, was named president of
the Hemingford Community Club at a
meeting held at the city hall last
month. The club had been inactive
for the past year and many of the old
officers had moved away, so it was de
cided to elect new officers who will
hold office until the annual meeting in
September.

Resigns as Bookkeeper-Teller

Bookkeeper

Rolland Chase resigned his position
as bookkeeper-teller with the Security
State Bank of Allen, Nebraska, recent
ly, to accept a position as manager of
a bulk plant for Mid-Continent Oil
Company at Sioux City, Iowa. Mr.
Chase had been with the Security State
Bank and its predecessor, the Allen Co
operative Credit Corporation, since
February of 1941. No one has been
found yet to fill his position with the
bank.

Staff Shifts
New employes at the Plainview State
Bank, Plainview, Nebraska, since the
first of the year, include Mary Wolpert,
Dorothy Hamel and Irene Mason. Mil
dred Kuhl, formerly teller, was recent
ly advanced to assistant cashier, which
position was left unfilled when Meldy
Petersen was called for army duty
some months ago.

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Community Club President

Mary Ann Barcal commenced her
duties as bookkeeper last month at the
Farmers & Merchants Bank, Schuyler,
Nebraska.

Bank Organizer Dies
Davis R. Rowe, 66, who helped or
ganize the Fremont Trust and Savings
Bank in 1904, now the Stephens Na
tional Bank, and became its vice presi
dent, died last month.
Rowe, former Fremont Chamber of
Commerce president, also was an or
ganizer and president of the Fremont
Securities Company, helped organize
the Fremont State Company and had
long served the Y. M.' C. A. as a state
director.

To Lincoln
Rex E. Miller, who has been em
ployed in the Gering National Bank,

Tenth Birthday
The State Bank of Scotia celebrated
its 10th birthday recently. The bank
was organized in the depression years
and has made a steady and substantial
growth. The statement of the bank’s
resources shows that it has grown
from an $81,286 bank in 1934 to $472,946.
Harry L. Miller is president of the
bank; Elmer W. Larson, executive vice
president; E. L. Vogeltanz of Ord, vice
president; Albert Babcock, cashier, and
B. Faye Cargill, assistant cashier. Di
rectors are: Frank Miller, Harry Mil
ler, L. M. Clark, E. L. Vogeltanz, and
Elmer W. Larson. Clarence M. Davis
of Ord is the bank’s attorney.

Changes Banks
Gladys Gauchat, who has been with
the Bank of Wood River, at Wood
River, Nebraska, has accepted a posi
tion with the First National Bank in
Auburn.

Final Dividend
Dividend checks were being handed
out at the American National Bank,
Creighton, Nebraska, for the final divi
dend of 1.2 per cent, which brings the
total recovery to the depositors up to
78.2 per cent figured on the original
amounts of the individual deposits in
the former Bank of Creighton.

Arthur Neumann Dies
Arthur L. Neumann, 74, of Oakland,
Nebraska, state legislator from 1927 to
1935, and president of the Farmers and
Merchants National Bank, died re
cently.
Active in state banking circles since
1892, Neumann introduced and shaped
much of the state banking legislation
during his five terms in the Nebraska
senate. During his years in the bi-cam
eral legislature, Neumann sponsored a
measure to make bank robbery a capi
tal crime, subject to the penalty of life
imprisonment, which he termed “ the
answer to the 1934 wave of bank rob
beries.”
He also introduced measures to re
duce from 50 per cent the surplus a
bank must set aside before declaring
dividends and a constitutional amendNorthwestern Banker June /944

• NEBRASKA
merit to abolish double liability on
bank stockholders. While a member of
the legislature he served as chairman
of the banks and banking committee of
the old senate and was a member of the
judiciary committee of the same group.

A 21-year-old Colorado laborer was
arrested recently to face charges of rob
bing the State Bank of Hyannis, Hyannis, Nebraska. He was captured 75
miles southwest of Hyannis, after po
lice recognized the car he was driving
as belonging to Walter Stroud, the
bank cashier who was taken hostage
by the bandit and later released.
Eighteen hundred and thirty dollars
was found in the youth’s possession,

D o n ’t O w n

and discounts of $700,000, and U. S.
bonds totaling $4,566,000.

New Deposit Boxes

Bank of Verdigre

Statement of condition of the Bea
trice National Bank, Beatrice, Nebras
ka, shows deposits of $6,500,000, loans

Million Dollar Bank

R o ck e t

S h ip

Y e t

Ausi(

CITY NATIONAL BANK 8 TRUST CO.
Z

The First State Bank of Gothenburg,
Nebraska, went into the million dollar
class recently, the report of condition
at the close of business then showing
total deposits of $1,065,777.
This marks the high point in the
bank’s history.
The officers of the bank are: Wm.
Kittenbrink, president; J. H. Cams,
vice president, and C. E. Davidson,
cashier.

U. S. Cham ber Director
Christopher J. Abbott, Hyannis, Ne
braska, rancher and banker, has been
re-elected a director of the Chamber of
Commerce of the United States, results
of a mail ballot have disclosed.

Leaves Banking Department

*7/te C u& ttonesi ^ 8 ^ % - ß u iU ß ca tk

’ " V

First State Bank

Beatrice Nationa!

" C i t y N a t i o n a l ” alw ays has
availed itself of the latest equipment
and the fastest methods in serving
its correspondent banks. There is no
speedier or more efficient transit serv
ice today than ours and there never
will be— even in the days when
rocket ships are common.

8 tranci

Not a year old, the Bank of Verdigre,
Nebraska, has already resources of
$210,000. The deposits are $191,499.

An examination of the report of the
First State Bank, Beaver City, Nebras
ka, discloses the fact that the bank has
deposits in the amount of $971,272.
This is the largest amount ever on de
posit at the bank.

But we will when they become
available and practical to speed our
transit service for you.

•

although bank officials had estimated
the loot only about $1,500.

Due to the big increase in demand
for safety deposit boxes, the First Na
tional Bank in Wahoo, Nebraska, had
a large crew of men recently moving a
new set of such boxes into their vault.
These new boxes, which were “dis
covered” by James L. Kudrna on his
recent trip to St. Louis, are ready for
use. The cabinet contains 184 separate
boxes in various sizes.

Bank Robbery

W e

NE WS

Kansas t i l ,, H .,

E. H. Schumacher, Tilden, Nebraska,
has resigned his position with the state
banking department to accept the posi
tion of manager of the Lincoln branch
of the Occidental Building and Loan
Association of Omaha.

Omaha
At T h e
Of

Crossroads

Oldest Nati onal Bank
F r o m O m a h a We s t

O m a h a
MEMBER FDIC

Northwestern Banker June

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Federal Reserve Bank of St. Louis

53
Capt. Leonard H. Vail Horne, 30,
son of Mr. and Mrs. Edwin N. Van
Horne, has been promoted to major in
England with the 65th finance disburs
ing section. He attended Lincoln High
School and the University of Nebras
ka. He was engaged in banking in
Kansas City, where his wife and son,
Hugh, live, when called with the re
serve officers in September, 1941. His
father is president of the Federal Land
Bank of Omaha.

A spring wedding united Marcia
McCumsey, daughter of Mr. and Mrs.
Charles McCumsey, and Frank Dixon
Conlin, son of Dr. and Mrs. Frank M.
Conlin. Mr. Conlin, a member of the
naval reserve, is a sophomore at the
University of Nebraska school of med
icine.
T THE annual meeting of officers
of the Nebraska Investment Bank
A
ers Association, the following officers
were elected for 1944-45: President,
Eugene C. Dinsmore; vice presidents,
James F. McCloud, Harry R. Greenway and Lyman G. Cross; secretary,
Eli C. Eisele; treasurer, John M. Doug
las.

Various proposals for activities of
the association for the year were dis
cussed. Committee appointments will
be announced later. Retiring presi
dent is J. Cliff Rahel.

check them out against their obliga
tions.
The system is in use in some outstate and Iowa banks, including one in
Council Bluffs, said a local banker.
Bankers said the recent increase in
postal order rates will have no effect
on the growth of the new checking
accounts. They say bank drafts al
ways have been much cheaper than
postoffice money order charges.

The bride was a princess of Ak-SarBen in the court of W. O. Swanson and
Mrs. Frank Hamilton, the former
Kathryn Hosford. Her father is for
mer president of the Federal Land
Bank of Omaha.
Grant Miller of Omaha was elected
president of the Nebraska Mortgage
Bankers Association at the annual
meeting. He succeeds Grover K.

r
The pay-as-you-check bank account
is growing more popular, according to
officials of three South Omaha banks
which have been using the system
several years.
Such checking accounts require no
minimum balance, and a fee of 5 cents
or 10 cents is charged for handling
each check.
The Live Stock National, the Pack
ers National and the Stock Yards Na
tional use the system, charging 5 cents
for each check.
There are different kinds of the payas-you-check checking accounts used
by banks in different parts of the
country.
The uptown Omaha banks are mak
ing a study of the pay-as-you-check
accounts, but so far have not decided
whether to install the system.
South Omaha bank officials are en
thusiastic over the plan, saying that
persons without money enough on
hand to open a checking account and
maintain it at a high enough level to
avoid service charges, are enabled to
deposit their pay checks regularly and
Y O U R ST ATE B A N K ER S A S S O C I A T I O N
O FFICIA L SAFE, V A U L T A N D
T IM E LO C K EXPERTS

F. E. D A VEN PO RT & CO.
OMAHA

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Federal Reserve Bank of St. Louis

WARTIME SERVICE
As a DeLuxe customer or a potential
buyer o f DeLuxe bank checks, you
may be interested in this little inci
dent. Recently one o f our plants got
behind in its service and its backlog
represented eight full days’ produc
tion. That is considered very bad in
our business because if we don’t clear
small orders quickly they clutter up
the plant and keep our people busy
on the phone explaining delays.
In this case the difficulty was solved
by sending a portion o f each day’s
orders to two o f our other plants, and
in a reasonably short time the situa
tion was cleared up. From the banks’
standpoint the interesting aspect o f
this case is the flexibility o f our serv
ice, made possible by our multiple
plant set-up.
Obviously it isn’t a good
idea to shoot orders around
the country, but it is better
to do it and get them out
than allow them to pile
up in one plant. In an
emergency it provides a

" p lu s ” value fo r the banks who
depend upon us for service.
To us the most gratifying part was
the spirit with which our factory
people tackled the orders from the
plant in distress. They really w a n te d
to get them out and, without being
told to do so, gave them priority over
their own orders. As long as we can
keep that spirit alive, and as long as
we can retain workers in som e o f our
plants, we will get out the orders.
This is no time to talk much about
service and, because we have our
sights focused upon peacetime stand
ards, we’re not too happy about the
job now being done. But, in view o f
conditions, which include delays both
ways in the mails, we aren't doing
so badly. So if you should ever
receive an order from one o f
^ our plants other than the
one to which it was sent.
justrememberit is only be
cause we want to get the
checks in your hands in
the shortest possible time.

M anufacturing Plants at
NEW YORK

CLEVELAND

CHICAGO

KANSAS CITY

ST. PAUL

V__________________________ J
Northwestern Banker Jane 1944-

•
Baumgartner of Lincoln. George Salladin of Lincoln was named vice pres

ident.
The group made plans for the an
nual short course conducted by the
agronomy department of the Univer
sity of Nebraska for mortgage bankers
in the farm mortgage field. The course
is scheduled for Lincoln June 23.
John F. Davis, a vice president of
the First National Bank of Omaha and
son of T. L. Davis, president, has
joined the navy, receiving a commis
sion of lieutenant, junior grade. He
was ordered to report at Hollywood
Beach, Florida, for two months train
ing.
W. A. C. Johnson, 74, retired Nebras
ka farmer, died recently in a hospital
at Omaha following a heart attack. A
native of Chillicothe, Ohio, he came to
Nebraska in 1896.
He served as president of the Citi
zens National Bank of St. Paul, Ne
braska, as vice president of the First

NEBRASKA

NEWS

State Bank of Dannebrog, Nebraska,
and of the State Bank of Farwell, Ne
braska, and as cashier of the Packers
National Bank of Omaha.
Mr. Johnson was a member of the
Omaha Club and the Omaha Country
Club. He is survived by four brothers
and a sister.
Burial was at Washington, Iowa.
When the one hundred and seventh
reunion of Scottish Rite Masons was
held recently in Scottish Rite Cathe
dral at Omaha. Leslie E. Martin of the
Nebraska Savings and Loan Associa
tion and veteran officer of the State
League of Savings and Loan Associa
tions, was in charge of the work as
acting wise master of Semper Fidelis
chapter. Legislative duties prevented
Rep. Howard Buffett, venerable mas
ter, and former Omaha investment
banker, from being present, A class
of 125 received the degree work.

Thomas C. Hornby, 76, resident of
Nebraska more than 50 years and as
sociated with the Federal Land Bank
of Omaha 20 years, died recently in an
Omaha hospital. He had lived at Val
entine, Nebraska, the last few years.
Mrs. Hornby died in 1939.
Operator of a trading post at Rose
bud for many years, he came to Omaha
in 1917, a few months after the Fed
eral Land Bank had been chartered.
He was first a bank appraiser, later
chief appraiser and then was named
vice president. He retired from active
business in 1937.

Survivors include Lt. Cedric C.
Hornby, USNR, Seattle, AVashington,
son; H. C., Duluth, Minnesota; John
A., Davenport, Iowa and Ben H., Do
ver, Idaho, brothers. Burial was at
Valentine.

One Year's Progress
The need for a commercial bank in
Hemingford, Nebraska, has been fully
realized with the first anniversary of
the Bank of Hemingford showing its
progress.
The bank was opened on April 17,
1943, with a capital stock of $25,000
and a surplus of $5,000.

th e

€

•

OJVTMEimL
BANK & TRUST COMPANY
OF NEW YORK
Frederick E. Hasler

James A. Jackson

chairman of the board

PRESIDENT

MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

One year later, April 15, 1944, depos
its have reached the total of $704,845,
with undivided profits of $4,177.
Officers and directors of the bank
are: C. J. Abbott, president; LeRoy
Abbott, vice president; F. A. Black,
vice president, and Y. H. Seaton, cash
ier. C. A. Shindler, Henry Spalding,
C. H. Sudman, H. D. Wells, Hannah E.
Abbott and H. S. Keane are directors.

Brule Banker Dies
George Douglas Adams, 62, president
of the Bank of Brule, Brule, Nebraska,
died last month at a North Platte hos
pital.

IpÄj

b T O O T L E -L A C Y

FIFTY-FIVE^ Y EA R S OF EXPERIENCE WITH EVERY M ODERN FACILITY

Northwestern Banker June 19J4

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

00
loans as of April 13 totaled $33,351,617.14; government bonds, $1,539,530.33; federal reserve stock, $31,835;
cash and due from banks, $82,499,661.40; banking house, furniture and
fixtures, $869,016.54; other real estate,
$5,806.36, and other assets, $62,413.52.
Total deposits reported were $207,500,001.16; total liabilities, $207,585,697.02, and total capital accounts, $14,763,351.20.

■pED THOMPSON of the National

I Bank of Commerce has been elected
president of the Lincoln chapter of the
American Institute of Banking, suc
ceeding G. Henry Crane of First Na
tional. Other officers are: Harold Leinberger, vice president; Ann Gustafson,
secretary; and Joe Martin, treasurer.
These four officers, with Glenn
Yaussi, Clifford G. Weston and Bela
Glover, comprise the chapter’s board
of governors.
Sixty-five students were instructed
this season. The Lincoln chapter, now
in its 11th year, has a total member
ship of 85.

Edward Lincoln Cline, president of
Bills and Cline Company, died in Lin
coln last month. Born in Pittsburgh,
Pennsylvania, he attended the Pitts
burgh schools, coming to Nebraska in
1881 and entering the hardware busi
ness in Hastings. Later he entered
the banking business in Fairbury and
served two terms as county clerk
there. He came to Lincoln in 1903 and
formed a partnership with Col. C. J.
Bills in investment banking.

Announcement was made that An
drew Molley has accepted a clerical
position in the Security State Bank,
at Broken Bow, Nebraska, and began
his work there last month.

Former Banker Leaves
Ray W. Smith, who came to York,
Nebraska, last summer to be con
nected with the new York State Bank
as cashier, severed his connection with
the bank recently when J. A. Boyle
took over the cashiership.

No Show
One of the less salty sailors was
stopped by a lieutenant and queried:
“ Don’t you know you are supposed to
salute me?”
The acolyte nodded, “Yes, sir, I
know. But I’m AWOL and I don’t
want to be conspicuous.”

Our gratitude for your business
is shown daily in the efficiency
and

Nebraska’s 278 state banks reported

total assets, liabilities and capital ac
counts on hand April 13 at $222,349,048.22, the state banking department
announced, an increase of $12,195,615.47 over the report of December 31,
1943.
On the resources side of the ledger,

BANKS

Join Bank

promptness

with

which

your items are handled.

(Co n t i n e n t a l R

a t io n a l

B ank

Bought and Sold

L IN C O L N

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
39

Years

S atisfacto ry

Member Federal Deposit Insurance Corporation

Service

THE CHARLES E. WALTERS CO.
OM AHA. NEBRASKA

N A T IO N A L

B A N K

ST. JOSEPH, M0.

MILTON TOOTLE, JR.

E. H. ZIMMERMAN

R. E. WALES

E. H. SCHOPP

P R E S ID E N T

V IC E P R E S ID E N T

C A S H IE R

ASST. C A S H IE R

GRAHAM G. LACY

MILTON TOOTLE, III

FRED T. BURRI

E. L. CRUME

V IC E P R E S ID E N T

A SST. C A S H IE R

ASST. C A S H IE R

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Federal Reserve Bank of St. Louis

M e m b e r Federal D eposit
Insurance Corporation

Northwestern Banker June 7944

Tr^ansit Items
W e are in a position to handle transit items
with rapidity - insuring quick returns - and
offer you the advantage of this specialized
service.

Many Banks route all their
Transit Items through us.

WE SERVE

MAY

YOU ALSO?

W e buy or sell U . S. Governm ent Bonds for
our customers - and invite you also to take
advantage of our Bond Department service
^

No commission charged

All transactions handled promptly

LIVE STO CK N A T I O N A L B A N K
OMAHA, NEBRASKA
Member of Federal Reserve System and Federal Deposit Insurance Corporation

Northwestern Banker June 1944

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Federal Reserve Bank of St. Louis

57
and secretary of the Page County
Bankers Association at the annual
meeting held in Shenandoah last
month. Sam Knittle, cashier of the
City National Bank, is vice president
and Clarence Liljedahl, treasurer. The
association has five member banks in
the county.

N EW S

Hamburg Bank Cashier
FRANK W ARN ER
Secretary
Des Moines

Resigns as Assistant Cashier
After continuous service with Northwood banking institutions for over 27
years with the exception of six months
in World War I, Carl L. Bolender has
resigned as assistant cashier of the
North wood State Bank, Northwood,
Iowa, to become associated with his
father, R. F. Bolender, in the Gildner
& Bolender clothing business there.

Honor President
Open house was held one day last
month at the Pomeroy State Bank,
Pomeroy, Iowa, in honor of President
John F. Gutz, who has had fifty years
of continuous service with the bank.

tory were taken from their statement
of 1932 instead of 1943.
The officers of this fine institution
are: C. A. Knudson, president; C. F.
Curtiss, vice president; T. E. LaVelle,
cashier; C. H. Budolfson, assistant
cashier; L. J. Sifrit, assistant cashier,
and M. S. Heggen, manager of the
Slater office.

In the Service
Harold Geerdes, assistant cashier of
the Peoples Savings Bank, Wellsburg,
Iowa, was called to the service. He
joined his father in the banking busi
ness in 1939.

Gifts to Seniors

Members of the senior class of 1944
were presented with autograph regis
ter and roster books by the Redfield
office of the Dallas County State Bank,
C. A. Knudson, president of the Col Adel, Iowa, last month.
The student’s name and the name of
lege Savings Bank of Ames, Iowa,
shows an increase of 1700 per cent in the school were printed in silver on
the growth of his bank’s deposits in the brown cover.
the last 11 years.
Contents of the book included space
In March, 1933, the College Savings for snapshots, autographs, high lights
Bank had deposits of $183,000 and in and sports. Two pages were devoted
March, 1944, the bank’s deposits in to a list of the names of the faculty
creased to $3,200,000.
members and the senior class roll. A
If any other bank in a town of 12,500 poem, “ Game of Life,” and a quotation
population has made a comparable in from Goethe concluded the book.
crease in deposits it has not come to
our attention.
Heads Bank Auditors
In a recent letter to the N o r t h w e s t
Ralph Storrs, assistant cashier of the
ern
B a n k e r , Mr. Knudson said, “An
City National Bank, Council Bluffs,
item of further interest might be the Iowa, was elected president of the
fact that we have increased our capital Omaha and Council Bluffs conference
from $25,000 to $100,000 in 1943, of the National Association of Bank
through common stock dividends of Auditors at a dinner meeting held last
300 per cent to stockholders. In addi month at Rainbow Gardens.
tion cash dividends on the original 250
Thirty members from Omaha and
shares have been paid each year from Council Bluffs were guests of the Coun
1934 on in amounts ranging from $10 cil Bluffs banks at the meeting. Coun
per share to $24 per share. Our capital cil Bluffs banks represented were
account as of this date is as follows:
Council Bluffs Savings Bank, State
common stock, $100,000; surplus, $50,- Savings Bank and the City National
000 and undivided profits, $26,000.”
Bank.
The N o r t h w e s t e r n B a n k e r is espe
cially glad to make mention of this Clarinda Bankers Officers
fine growth of the College Savings
James Peterman and Orville Thomp
Bank and also because of the fact that son, president and assistant cashier,
through an unintentional error the fig respectively, of the Page County State
ures in the 1944 Iowa-Nebraska Direc- Bank, Clarinda, were named president

Deposits Increase
I 700 Per Cent

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Federal Reserve Bank of St. Louis

Harold Stewart of Maryville, Mis
souri, began work last month as cash
ier at the Iowa State Bank, Hamburg,
Iowa, taking the place made vacant by
Rex Canon. Mr. Stewart has recently
been connected with the Maryville
office of the St. Joseph Credit Produc
tion Association. He was at one time
with the Tootle-Lacy Bank of St.
Joseph and later with a trust company
and a finance company.

Ridgeway Banker Dies
Funeral services for I. G. McQueen,
54, who died at his home at Ridgeway,
Iowa, last month were held at the
home and at the Ridgeway Methodist
Church. Mr. McQueen was president
of the Farmers State Bank, Ridgeway.
He served two years as president of
Group 4 of the Iowa Bankers Associa
tion and was one of northeastern
Iowa’s best known bankers.

To Assist Treasurer
Ira L. Hays, cashier of the City Na
tional Bank, Council Bluffs, Iowa, has
been elected assistant to Dwayne
Evans, treasurer of the Council Bluffs
Chamber of Commerce, Floyd P. Willette, secretary, announced last month.

Stock Increased
The capital stock of the Jackson
State Savings Bank, Maquoketa, Iowa,
was increased from $50',000 to $100,000,
through the declaration of a 100 per
cent common stock dividend, at a di
rectors’ meeting. The entire staff of
officers and employes were re-elected.

Former Serviceman Back
Louis Peyton has returned to Tama
and resumed his position as vice presi
dent of Tama State Bank after serving
with the army since September, 1942.
Peyton was given a medical discharge
April 26th at Percy Jones General Hos
pital, Battle Creek, Michigan, where he
was a patient two and a half months.

Assistant Cashier
F. L. Miller of Miller, Iowa, has ac
cepted a position as assistant cashier
of the Hancock County National Bank,
Garner. He will succeed Lucille Wes
son, who has accepted a position in
Des Moines as teller at the Iowa-Des
Moines National Bank and Trust
Company.
Northwestern Banker June 19'h't

IOWA
Former Cashier Dies
Frank R. Kirk, Sioux City, died sud
denly at his home recently of a heart
attack. For many years he was cashier
of the First National Bank in Sioux
City, and for the last 14 years had
operated the firm of F. R. Kirk & Com
pany, investment brokers.

New Service
The new service bureau of the Miles
Savings Bank, Miles, will give patrons
a chance to have their wants and needs
advertised in the local newspaper, in

NEWS

the Miles Savings Bank advertisement
each week. For example, as the wants
of his patrons are made known to
John Witzigman, cashier, he will in
sert them in paragraphs in his ad.

Chickasaw County
Bankers Meet
C. E. Leach was elected president of
the Chickasaw County Bankers Asso
ciation at their meeting last month in
New Hampton, Iowa. He is cashier of
the First State Bank, Fredericksburg.
Walter W. Meyer, cashier of the State

Bank of Lawler, Lawler, Iowa, was
named secretary and treasurer. How
ard W. David and William E. Hurley
were named on a committee to meet
with Frank Hunt, county agent, in con
nection with the Farm and Home Ex
position there.

Joins Steamboat Rock Bank
Ben Jaspers of Steamboat Rock,
Iowa, has accepted a position as assist
ant cashier in the Farmers Savings
Bank at Steamboat Rock. He had been
secretary of the Hardin County REA.
In this new work he succeeds Henry
Janssen, who recently resigned to take
a position with a Hampton bank.

Purchase Citizens State Bank
: •-

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* III NATIONAL
BANK

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W A T E R L O O ,

I O W A

HEADQUARTERS
FOR
YOUR
NORTHEASTERN
IOWA
BUSINESS

i
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A group of men from Ackley, Iowa,
consisting of H. A. Carstens, G. L. Carstens, A. A. Carstens and H. S. Lekwa,
purchased the controlling interest in
the Citizens State Bank, at Iowa Falls,
Iowa. At a meeting last month H. A.
Carstens and H. S. Lekwa were elected
to the board of directors, with Mr.
Carstens as chairman of the board,
H. S. Lekwa, president, Elmer Ringeon, executive vice president and Leo
Jorgenson, cashier. Mr. Jorgenson has
been with the bank since it was organ
ized in 1935 as assistant cashier. Mr.
Ringeon has lived in Iowa Falls for
several years and represented the
Aetna Life Insurance Company in
their farm loan department. Previous
to that time he was connected with a
bank at Ridgeway as cashier.
Since the deaths of Irvin B. Bleeker
and E. H. Klisart the first of the year
Mrs. Bleeker and Miss Klisart have
served until the reorganization.
The bank has about $3,000,000 in deposits.

A New Bank in View
■X

★

Norman Guenther, president of First
Trust & Savings Bank of Wheatland,
Iowa, and F. A. Lettow of Chicago, Illi
nois, stated recently that the state
banking department has approved
their application for a bank in Lost
Nation, Iowa, and that every effort is
being made to expedite the opening.
Lost Nation has been without a bank
since the closing of the First National

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BANK BROKER
Haddam, Kansas
“ 36 Y ea rs Practical B a n k in g E x p e r ie n c e ”

★

Northwestern Banker June 1944-

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Federal Reserve Bank of St. Louis

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Northwestern Banker Jane 1944-

Iowa Bankers Discuss Present and
Postwar

Problems

Most of the Current Banking Problems, as W ell as Many of the
Postwar Issues Affecting Finances, W ere Discussed at the
Eight Group Meetings Held During May
— 175 were
registered at the meeting of
Group 5 and S. R. DeCou, chair
man of the Group and cashier of the
First National Bank of Woodbine,
made an excellent presiding officer.

o u n c il

bluffs

V. A4T. (Vivacious AATilling) Johnson,

president of the Iowa Bankers Asso
ciation and president of the First Na
tional Bank of Cedar Falls, spoke on
“Bankers and war-time banking,” and
among other things said, “As bankers,
you and I know, that if the Treasury
estimate of 152 billions of national in
come is available to buy 85) billion dol
lars of consumer goods, the remaining
63 billion dollars, if left with the peo
ple, will ultimately set the economic
fabric afire. After deducting the esti
mated 35 billions saved by the Amer
ican people, there still remains 28 bil
lions excess purchasing power with
which to create a violent price rise.
Do you recall that it was once said that
the 10 per cent surplus of farm prod
ucts fixed the price of the other 90
per cent? AAThat could that 28 billions
surplus—a much greater percentage—
do to the 89 billions of goods, if at least
a portion of it were not siphoned off?”
Harry B. Coffee, president Union
Stock Yards of Omaha, spoke on “ Safe
guarding the Live Stock Industry” and
said that, “Omaha is the second larg
est livestock market in the United
States. In 1943, over 23 per cent of the
total receipts sent to the Omaha mar
ket came from Iowa. In Nebraska,
70 per cent of the cash farm income is
from the sale of livestock. Before the
war, 94 per cent of our goods and agri
cultural products were sold and con
sumed in the United States and only
6 per cent were exported.”
George W. Woods, executive vice

president of the First National Bank
in Council Bluffs, wore a brown suit
sprinkled with white dots, which was
the envy of all bankers present.
John K. Langum, vice president Fed
eral Reserve Bank of Chicago, dis

Banker June L94Y
Digitized forNorthwestern
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Federal Reserve Bank of St. Louis

cussed “War Time Growth and Fost
War Trends in Bank Deposits” .
He presented a chart showing the
“Ownership of United States Govern
ment Securities, Direct and Fully
Guaranteed” , which as of January 31,
1944, were as follows:
Held by U. S. Govenment agencies and
trust funds:
Special issues .......
Public issues
Total
Held by Federal Re
serve Banks
Held by commercial
banks
Held by mutual sav
ings banks
Held by insurance
companies
Held by other inves
tors:
Marketable issues .
Nonmarketable is
sues ......................
Total
Total interest-bearing
securities

12,873 Billions
4,279 Billions
17,152 Billions
12,073 Billions
62,800 Billions
5,700 Billions
14,200 Billions

21,800 Billions
37,600 Billions
59,400 Billions
171,312 Billions

B. A. Gronstal, president Council
Bluffs Savings Bank, had many re
quests for the letter one of his farmer
customers had written to President
Roosevelt while he was “manager of
Montgomery Ward and Company”.
If you would like a copy, we are
sure Bert would send you one, or we
will.
Melvin AAT. Ellis, superintendent of
Banking, and Ralph L. Bunce, deputy
superintendent of Banking, gave their
famous talk on “How 9 per cent be
came 30 per cent.” These two wizards
of finance are known as the “ R.P.A.”
experts or Riskless Profit Advocates
—or perhaps this should be changed
to “Reckless Promotors of Assets”.
Frank Warner, secretary of the
Iowa Bankers Association, commented
on current topics facing bankers in the
Hawkeye state. Mr. Warner is being
highly complimented because his “War

Bond Sales Program” for Iowa is be
ing adopted by the American Bankers
Association, or at least they have re
quested that copies of Mr. Warner’s
plan be sent to the A.B.A. headquar
ters and they in turn will distribute
copies of it to every state banker’s as
sociation.
O. A. Otto, vice president of the
Whitney Loan and Trust Company
of Atlantic, told us that his famous
golfing daughter, Phyllis T. Otto, who
graduates this June from Chris
tian College at Columbia, Missouri,
which is a junior college, will attend
Northwestern University this fall.
During the summer she will assist
Alvin E. Johnson, president of the
Live Stock National Bank of Omaha,
in making that an even bigger bank.
She will, however, compete in both the
open and amateur golf tournaments in
June and August.
BOONE—H. L. Bass, executive vice
president of the City State Bank of
Ogden, presided at the meeting of
Group 6 at which lj50 were registered.

Hugh McCleery, cashier Peoples Sav
ings Bank of Laurel, was elected chair
man of Group 6 for the ensuing year
along with R. A. Sweet, vice president
and cashier of the Story County State
Bank of Story City, who was elected
secretary.
Col. T. L. Ashford, president Boone
State Bank and Trust Company of
Boone, welcomed the bankers to Boone
and his able remarks were very ex
cellently responded to by Walter T.
Robinson, vice president, Newton Na
tional Bank.

Rex Beresford, extension animal
husbandman, Iowa State College,
Ames, spoke on “Feeder Cattle Prices”
and suggested that bankers tell their
customers to, “start culling out cattle
in the next three months in line with
the feed supply they have and before
range cattle are sent to the market
this fall.”

61
Warren Garst, cashier of the Home
State Bank of Jefferson, and a member
of the Agricultural Commission of the
A.B.A., asked how many bankers had
read, “ The A.B.A. Home Front Man
ual” and only 4 raised their hand. Mr.
Garst believes that “P.C.A. competi
tion is one of the biggest problems
facing bankers. P.C.A. rates are not
4% per cent as they advertise, but
they are 5 per cent to 9 per cent, de
pending on the amount borrowed and
the maturity date of the notes.”
Cullen H. Wriglit, Union Stock
Yards Company of Omaha, spoke on
“ The Banker and his Community.”
Mr. Wright is known as the “Will
Rogers of Nebraska” and he lived up
to his title and if you want a list of
good stories, just write and ask him
to send you a few of his, as they are
full of spice, sparkle and spirit.

,J. J. Maloney, assistant cashier First
National Bank of Minneapolis, at
tended the Boone meeting and ably
represented his very fine institution.
CENTERVILLE— The meeting of
Group 10 started at the County Club
with no official program in the after
noon except visiting, golfing and “re
freshments” .
H. L. Pollard, vice president of the
Union Bank and Trust Company of
AT THE TOWA GROUP M EETINGS—
1. V. W. Johnson, president o f the Iowa
Bankers Association and president, First
National Bank, Cedar Falls; H. L. Pollard,
vice president, Union Bank and Trust Com
pany, Ottumwa; F. L. Sawyers, president,
Centerville National Bank, Centerville;
Frank Warner, secretary, Iow a Bankers
Association, Des Moines. 2. R. A. Sweet,
vice president and cashier, Story County
State Bank, Story City, newly elected sec
retary of Group 6; Hugh McCleery, cash
ier, Peoples Savings Bank, Laurel, newly
elected chairman o f Group (5. 3. Fred W.
Thomas, vice president, First National
Bank of Omaha; M elvin W. Ellis, superin
tendent of Banking of Iow a; Alden S. Bagnail. vice president, Live Stock National
Bank, Chicago; S. R. DeCou, cashier, First
National Bank, W oodbine, and chairman of
Group 5. 4. E. A. Wimmer, vice president
and cashier, Farmers and Merchants Sav
ings Bank, Ottumwa; Richard L. Dunlap
assistant vice president, Commerce Trust
Company, Kansas City; Lawrence A.
Kempf, second vice president, Northern
Trust Company, Chicago; L. Nevin Lee,
vice president, Bankers Trust Company o f
Des Moines. 5. Ina E. Burket, manager,
Granger office of the Brenton State Bank
of Dallas Center; Mrs. R. H. Barber, w ife
o f R. H. Barber, president o f the Citizens
National Bank of Boone; Mrs. H. A.
Boehm, w ife of H. A. Boehm, assistant
cashier, City State Bank, Ogden. 6. C. H.
Haesemeyer, president, Union Trust & Sav
ings Bank, Stan wood, and chairman of
Group 8; Ensign Carl H. Haesemeyer DV
(S ) USNR, who has been on active duty in
the South Pacific; P. A. Dietz, president,
W alcott Trust & Savings Bank, W alcott,
and retiring chairman of Group 8.

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Federal Reserve Bank of St. Louis

Ottumwa, retired as chairman of Group
10 and the new chairman is .Julian
Frost, executive vice president, De
catur County State Bank, Leon, and
who is now on leave with the armed
forces. The secretary for 1944-1945 is
Oliver Anderson, cashier of the Farm
ers Savings Bank of Wright.
John H. Young, cashier Iowa Trust
and Savings Bank of Centerville, has
been so short of help and so far be
hind in his spring plowing because
of the rainy weather that he has been
helping with the “night shift”. After
banking hours, he puts on his overalls
and runs one of his tractors and does
it like an expert.
Max von Schrader, vice president
and cashier of the Union Bank and
Trust Company of Ottumwa, and Mrs.
von Schrader have been spending the
month at the Edgewater Gulf Hotel at
Biloxi, Mississippi, where Max has
gone for a complete rest following two
recent heart attacks. All of his many
friends will be wishing for an earty
return to his usual good health.

The official program at Centerville
was held at night and W. O. Steel,
president First National Bank of Cen
terville, gave the address of welcome,
which was responded to by P. T.
Crimes, president, Davis County Sav
ings Bank, Bloomfield.
AT THE IO W A GROUP M EETIN GS:
L eft to right (I ) H. B. Tangeman, cashier
Security State Bank, Guttenberg, newly
elected chairman of Group Four; C. H.
Megorden, cashier Waukon State Bank,
retiring chairman Group Four. (2) R. C.
Kiester, assistant cashier First National
Bank, Mason City, and secretary Cerro
Gordo County Bankers Association; M. A.
Arneson, president Clear Lake Rank and
Trust Company, and president o f the Cerro
Gordo County Bankers Association; H. S.
Lekwa, vice president and cashier, Ackley
State1 Bank and chairman of Group Three.
(3) Here are 3 brothers and all cashiers
of Iowa banks (Do you know of any other
banking fam ily like this?) L. H. Buenneke, cashier Maynard Savings Bank,
Maynard; Walter Buenneke, cashier Iowa
Savings Bank, Coon Rapids; Edward F.
Buenneke, cashier Security Savings Bank,
Scranton. Together they have been in the
banking business 84 years.
(4) F. A.
Arnold, president First National Bank,
Klemme; Fred C. Heneman, president First
National Bank, Mason City; H. L. Ollenburg, president Hancock County National
Bank, Garner, and secretary of Group
Three.
(5) Charles S. McKinstry, vice
president National Bank o f Waterloo and
chairman of Group Seven; E. G-. Engelbrecht, cashier W averly Savings Bank,
W averly, and secretary of Group Seven.
(6) H. N. Boyson, vice president M erch
ants National Bank, Cedar Rapids; C. E,
Kindwall, cashier Albert City Savings
Bank, Albert City; John F. Glitz, presi
dent Pomeroy State Bank, Pomeroy, who
started in the banking business at the age
o f 21 and has just finished his 50th year
as an active banker.

------------------------------------- • I O W A
In addition to the other regular
speakers, Walter B. Garver, agriculturist economist, Research and Statistics Department, Federal Reserve
Bank of Chicago, spoke on “The Cur
rent Food and Agricultural Situation.”

NEWS

• ------------------------------------

many, only 10 to 15 per cent of their
factories have been permanently destroyed. It may take us until the mid-

die of 1945 to defeat Germany and it
will take us from 2 to 3 years to lick
Japan.”

DAVENPORT— C. H. Haesemeyer,

president, Union Trust & Savings
Bank, Stanwood, was elected chairman
of Group 8 and Bruce Townsend, ex
ecutive vice president of the City Na
tional Bank of Clinton was elected
secretary.
J. H. (Mike) Rulil of the Iowa War
Finance Committee told the bankers
that Iowa’s quota in the 5th War Loan
campaign would be 202 million dollars
and that their quota for the 4th War
Loan had been 177 million dollars and
which had been considerably over
subscribed.
Senor Roberto de la Rosa, graduate
of University of Mexico, and sent here
by the Mexican Government to foster
better inter-American relations, spoke
on “Mexico and Her Relations with
the United States.” He said that,
“While there have been many minor
revolutions in Mexico the real one
came in 1910 after President Diaz had
been in office for 35 years—and let that
be a lesson to you in the United
States.”

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news commen
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that “with all of our bombing of GerBob

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Des Moines. Iowa

Northwestern Banker June 19'di

•
R. O. (Ted) Byerrum, executive vice
president First Trust and Savings
Bank, Davenport, entertained a num
ber of his friends at luncheon in the
Mirror Room of the Blackhawk Hotel
during the meeting of Group 8. Those
who attended said the meeting in the
Mirror Room was simply another “re
flection” of Ted’s thoughtfulness, kind
ness and delightful hospitality.
Charles C. Kuning, vice president of
the American National Bank and Trust
Company of Chicago, attended a meet

IOWA

NEWS

•

ing of the Shrine while he was in
Davenport. Charley was potentate of
the Shrine for 2 years when he lived
in Cedar Rapids.
Jack W. Edge, president of the Tipton State Bank of Tipton, attended the
graduation of his son, Don B. Edge,
from Annapolis. Following his gradu
ation, he went to Minneapolis where
he was married before reporting to
Jacksonville, Florida, where he will
be stationed for one month before be
ing assigned to sea duty.

George M. Bechtel, president of the
First Trust and Savings Bank, Dav
enport, told us that Major Harold R.
Bechtel was now stationed in England
with the A. M. G. Major Bechtel is a
very fine linguist and speaks Spanish,
French, German, Italian and Russian.
Erwin AV. Jones, vice president of
the Iowa Des Moines Bank and Trust
Company, has a son— 1st Lt. Donald
O. Jones, who is stationed in England
with the Allied Military Government.
Don graduated from the Drake School
of Commerce.
Richard L. Dunlap, assistant vice
president of the Commerce Trust Com
pany, Kansas City, attended most of
the southern Group Meetings, where
he ably represented his well known
institution.
FORT

DODGE — Harry

Huff,

chairman of Group 2 and cashier of the
State Bank of Fort Dodge, presided at
the meetings which were held in the
American Legion hall.

N o more than you could thread a rope through a needle’s
eye can you hope to stuff thousands of cases of peas or toma
toes— carloads of coal— a mountain of feed, grain or other
commodities into your vaults.
But, with a Field Warehouse Operation installed and conduct
ed by us, you have the equivalent, so far as is humanly possi
ble, of collateralized inventory protected with the guaranteed
safety it would have if locked in your own vaults.
Added to this exceptional security, the commodity is out there
working and earning for you and for your
borrower.

Special speakers on the program in
cluded Robert G. Lexvold, president
Iowa Junior Bankers Association and
assistant cashier Farmers Trust & Sav
ings Bank, Spencer, and G. O. VanDerveer, chairman War Bond Commit
tee of I. B. A., and cashier State Bank
of Waverly, who spoke on “Selling
War Bonds.”
Any time you want a real high-pow
ered, dynamic talk on what America
really stands for, just ask “G. O. V.,”
better known as “G. O. P.” VanDerveer.
Ben W . Olson, secretary of Group 2
and president of the Security Savings
Bank of Eagle Grove, led the discus
sion on “War Time Banking Subjects”
at the end of the afternoon session.

In the evening a dinner was given
in the ballroom of the Hotel Wahkonsa and the speaker of the evening was
Dr. AValter Aitken of Lincoln, Ne
braska.
The new officers of Group 2 are Ben

fa/nUe fati (ausi tf-siee ßoaJzlet

W. Olson of Eagle Grove, chairman,

and Wayne C. Currell, president Em
met County State Bank of Estherville,
secretary.

Y O U R STATE B A N K ER S A S S O C I A T I O N
OFFICIAL SAFE, V A U L T A N D
T IM E LO C K EXPERTS

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Federal Reserve Bank of St. Louis

• IOWA
C. AV. Jjynn, president of the Secur
ity State Bank of Sutherland, who
never flew a plane until a year ago,
now owns his own “Zephyr of the Air”
and flew to Lake Park and picked up
Ernest McDowell, president of the Se
curity State Bank and brought him to
the Port Dodge Group Meeting—all in
the elapsed time of only 45 minutes.
Charles R. Gossett, president of the
Security National Bank of Sioux City,
and Mrs. Gossett went to Ames after
the meeting of Group 2 to visit with
Charley’s father and mother, Mr. and
Airs. AA\ L. Gossett, who are now both
81 years of age.

NEWS

•

bankers that the city indebtedness of
Mason City for many years had been
$1,100,000, but that it had been reduced
to $410,000.
E. A. Heiden, cashier, Osage Farm
ers National Bank, Osage, responded to
the mayor’s address and pointed out
that “We are stewards of the money
deposited with us and we face many
war problems which we must help to
solve.”
Elmer H. Warner, president of the
Merchants Mutual Bonding Company
of Des Moines, was recently elected

Tom C. Cannon, the handsome rep
resentative of the St. Paul Terminal
Warehouse Company, has a banking
background as he worked for three
years in the Ninth Federal Reserve
Bank at Minneapolis and from there
went to the Farmers State Bank at
Morton, Minnesota.

“president” of the Washington, Iowa,
This club meets every
morning at ten o’clock in the North
Side Cafe and if you are a guest you
are elected president and given all of
the “coffee checks.”
Coffee Club.

Charles M. Nelson, vice president
and cashier of the Northern Trust
Company of Chicago, has a son, Lt.
David H. Nelson, who is on the staff of
Admiral Richard Conolly. Lt. Nelson
has been on active duty in the South
Pacific and previous to his recent as
signment was 21 months on the U.S.S.
Louisville.

SOLVING NEW PROBLEMS
" W e do the difficult at once.

The impossible takes

tim e."

L. K. Billings, assistant vice presi

dent of the City National Bank and
Trust Company of Chicago, is finan
cially interested in Waterman & Asso
ciates of Chicago, which organization
has invented a fuse for use in air
planes. They have licensed the Simmonds Hydraulic Fuse Company to
manufacture this fuse, which saves the
balance of the fluid that would ordi
narily escape through a bullet-pierced
hydraulic system.

The sage who coined that one must have had in
mind

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Long years of experience among our officers help
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MASON CITY—Over 150 registered
at the meeting of Group 3, which was
presided over by Harry S. Lekwa,
chairman of Group 3 and vice presi
dent-cashier Ackley State Bank, Ack
ley. Mr. Lekwa emphasized the im
portance of having group meetings in
order to discuss the many problems
facing bankers and the operation of
their institutions.

A. G. Sam,
J. P. Hainer, Vice President
Fritz Fritzson, Vice Pres, and Cashier
J. T. Grant, Assistant Cashier

President
J. R. Craning, Assistant Cashier
E. A. Johnson, Assistant Cashier
W. F. Cook, Auditor

Ray E. Pauley, mayor of Mason City,
in his address of welcome told the

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Federal Reserve Bank of St. Louis

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Northwestern Banker June 194b

• IOWA

NEWS • -

thought she would surrender, but
didn’t. Some of the points in Dr.
Palyi’s address were: (1) Bombing has

WATERLOO—Charles S. McKinstry,

vice president, The National Bank of
Waterloo, presided with his usual ex
cellent ability as chairman of Group 7.
His introductions of speakers were
short, to the point and always appro
priate.

only destroyed 10 to 25 per cent of Ger
many’s production. (2) China is fac
ing a breakdown soon unless sbe gets
some help. (3) Japan can stand a sea
blockade for two years if China should
fall now. (4) Our national debt may
reach $350,000,000,000. (5) It will take
live years to produce enough automo
biles to supply the demand after the
war. (0) We must have a free econ
omy after the war and not be re
stricted by so many bureaus and gov
ernment commissions.

Dr. Melelioir Palyi, economist, Uni
versity of Chicago, spoke on “War and
the Outlook,” and reminded the audi
ence that he had predicted Germany
would surrender in 1943. This was
based on his assumption that when
Germany knew she could not win, he

Ben F. Swisher, Waterloo attorney,
gave an address on “The Ghost of
George III.” Some of the points in
Mr. Swisher’s talk were these: (1)
Congress in 1933 gave President Roose
velt 77 laws which violated the Consti
tution. (2) If I want a job today, 1
have to join a union whether I want
to or not and 1 must pay dues to such
a union, all in violation of the Consti
tution. (3) Preservation of the rights
of the states is our greatest protection
in the United States. (4) In Iowa,
there are 20,000 state employes and
00,000 federal employes.
V. W. Johnson, president of the
Iowa Bankers Association and presi
dent, First National Bank, Cedar Falls,
entertained 27 of the “traveling torea
dors”— (bull-throwers to you)-—-at a
steak dinner at the Russell Lamson
Hotel in Waterloo. The special guest
was Commander E. E. Pettee of Cedar
Falls.
Harold Peterson of the United States
Check Book Company of Omaha at
tended the Waterloo meeting in place
of his brother, Homer H. Peterson, as
Homer was having a “siege of the
mumps,” which we assume was an in
dication that he was just “renewing
his youth.”
DECORAH— C. H. Megorden, chair
man of Group 4 and cashier Waukon
State Bank, Waukon, was “master of
ceremonies” at the Decorah meeting,
where 250 bankers and their wives
enjoyed a very fine noonday luncheon,
followed by an excellent program.

U R military and governmental leaders have assured us that

The new officers of Group 4 are H.
B. Tangeman, cashier, Security State
Bank of Guttenberg, and J. V. Keppler,

this year will see the maximum war-winning effort by our

allies and ourselves. Y et even now government is considering

cashier, First National Bank of Du
buque, secretary.

plans for peace; management, likewise, must begin to anticipate
" V Day.”
Y ou are doubtless called upon to aid business in your area,

\V. F. Baker, assistant cashier, De
corah State Bank, gave a very interest
ing “History of Group 4.”

as we are in ours, both in the changing requirements o f war and
the far-sighted planning for peace. Many correspondent banks
have found the broad experience and ready cooperation o f the
American National o f great assistance in connection with their

Russell County Building
and Loan Association

service to customers. Possibly we can be equally helpful to you.

AMERICAN NATIONAL BANK
AND TRUST COMPANY

Russell, Kansas

OF CHICAGO
LA S A L L E S T R E E T

----------------------------------------------- — -vir
Member Federal Deposit

O U R

Northwestern Banker June 7944

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

I S

W e

pay

fu n d s

in v e s t e d

w ith

u s.

AT W A S H IN G T O N

w
T O

Insurance Corporation

George E. Y ird en , Secy.
D iv id e n d s

H E L P

have

b e e n p a id e a c h
o r g a n iz a tio n .

year

s in c e

• IOWA
L. Nevin Lee, vice president, Bank
ers Trust Company, Des Moines, after
finishing the group meeting circuit at
Decorah, spent the week end at Clear
Lake as the guest of Allan Beck of
Mason City, where they opened the
fishing season. Whether the fish were
as long as the fish stories which Nevin
brought back has not yet been ascer
tained.

NEWS

•

pany, chairman of the women’s com
mittee.

of the University of Iowa Alumni As
sociation for the coming year.

Director of the Central National
Bank and Trust Company Walter L.
Stewart was recently elected president

Attending the convention of the Na
tional Association of Credit Men held
in Omaha in May was Edward P.
Kautzky, assistant vice president of

Des Moines News
Mrs. Melissa A. Crawford, 94, widow
of the late R. A. Crawford, who found
ed the Valley Savings Bank in Des
Moines, died in her home last month.
She was married to Mr. Crawford in
1875. They first lived at Altoona,
where they ran a bank and store but
in 1893 Crawford entered the banking
business in Des Moines, commuting
between the two places, while Mrs.
Crawford managed their interests in
Altoona.
They moved to Des Moines in 1900
where Mr. Crawford continued in the
banking business. He was president
of the Valley Savings Bank when he
died seven years ago.
S. G. Barnard of the Bankers Trust
Company recently was elected presi
dent of the Des Moines chapter of the
American Institute of Banking. Other
officers named and the banks with
which they are connected are: Harold
Carlson, Central National, first vice
president; L. A. Rodenbangh, Iowa
State, second vice president; Clarence
Reibert, Iowa-Des Moines National,
treasurer; Roberta Rusher, Bankers
Trust Company, secretary; Mabelle
zum Brunnen, Bankers Trust Com-

A GREAT TEAM-CATTLE AND CORN
C om ,
th e

lfm

g rea test
upper

F rom
w h ic h

t h is

has

ANOTHER

TEAM
a

th e

m u ch

th o u sa n d s

a ll,

A m e rica .

com e

depends

th at

crop

M is s is s ip p i

th e jo b o f f e e d in g

fin d

y . Serving Iowa Businessmen

th e

b road

C orn

th e

n a t i o n 's

b a s ic

fa r m

w ith

p rodu ct

a lo n e

c a n 't

th e

N a tio n a l

This Is Worth
Fighting For
For more than a century and a half, our
country and all ifs people have been free. We
Americans can say whaf we like . . . read whaf
we like. No dictator can tell us what lo do.

e n t.

B ank

lo g ic a l

c o m b in a tio n

life

YOUR

D rovers

You

N a tio n a l
h e lp

your

C h ic a g o

w ill

Bank

your

bank

D rovers

corresp on d

Y o u r in q u ir y is in v ite d .

North Central

F ederal

D e p o s it

In su ra n ce

States

(Milk cows and heifers not
included )

1944
Total
Total

number .
38,536,000
value. . . $2,867,528,000

1943
Total number .
37,110,000
Total value. . $2 814,814,000
1933-42 Average per Year
Total number .
33,978,000
Total value. . .$1,171,950,000

Note: Cattle on feed April 1,
1944 was 23 per cent less than
a year ago, reflecting tight feed
supplies and representing liqui
dation from all-time record in
national cattle population.
SOURCE:

M em b ers,

USDA

C o r p o r a tio n

DROVERS NATIONAL BANK
DROVERS TRUST 0 SAVINGS BANK
U N I O N

This is the American Way of Life.

upon

th ou san d s

BANK:

c a p ita l— w ill

c h o ic e

CATTLE ON FARMS

c o n v e r t e d in to m e a t .

to g i v e f a s t , c o m p l e t e , u n d e r s t a n d i n g s e r v i c e to f e e d e r s .

O v e* 5 4

of
do

fa m ilie s .

AND

liv e s to c k

fa r m

corn

c a ttle -c o r n

e c o n o m ic

DROVERS

c o n n e c tio n

C h i c a g o — th e

th e

m u st b e

great

M id d le w e s le r n

—

V a lle y — y et

S T O C K

Y A R D S ,

C H I C A G O

Koch Brothers' Employees are 100% behind
the "all-out" war effort!

K
r

och

ro th e r s

■5 P R I N T E R S

“H ESTABLISHED

1889

------------ A

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

e rut ce 5
B a n k

P u b l i c

R e l a t i o n s

S T A T IO N E R S
BOOK BINDERS
OFFICE OUTFITTERS \ ^ _ ^ - ^ B U S I N E S S MACHINES

G rand Av e . at Fourth

W J e ó ó lin c j
C o u n s e l

Plan to use an advertising program of
well worded messages created by
W essling S ervices, D es Moines, Iowa

De s M o in e s , Ia .

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

S .

otnei 9, S ol

Northwestern Banker June i.944

68
the Valley Savings Bank. Mr. Kautzky is also the director of the Polk
County Salvage committee.
An increase of $100,000 in the sur
plus account of the Iowa-Des Moines
National Bank & Trust Company was
authorized by the board of directors
at a meeting in May.
President Herbert L. Horton said
the capital account after this increase
totals $5,274,639. The capital account
consists of $2,500,000 of capital stock,
all common; $1,600,000 of surplus, and
$1,174,639 of undivided profits and un
allocated reserves.

Death came to Henrietta Moore of
the Valley Savings Bank in a Des
Moines hospital last month. She has
been an employe of the bank for many
years and has held a number of differ
ent positions there.
Central National’s women’s bowling
team was this year’s winner in the
women’s Capital City bowling league.
The champion bowlers were bank em
ployes Marie Hulderson, Oma Hulderson, Mary Angela Heartney, Hazel
Bliquez and Bernadine Harsh.

BANKERS
WANTS
M ay W e Help You ?
R a t e — 5c p er w o rd w it h o rd er
NORTHW ESTERN BANKER
527 Seventh Street, Des Moines 9, Iowa

In uniforms of Marine green and
Bank teller, with previous experience
as assistant cashier in country banks,
desires position in country bank as cash
ier or assistant. Twenty-five years in
banks. Write DMC c/o Northwestern
Banker, 527 7th Street, Des Moines,
Iowa.
Small town bank wants draft exempt
bookkeeper. Write stating experience,
when available, salary asked, references.
Write M. M. B., c/o Northwestern Bank
er, 527 7th St., Des Moines, Iowa.

Assistant with city and group banking
experience wants connection with me
dium sized bank in a fair sized city. Now
employed, seeking opportunities. Write
222, c/o Northwestern Banker, 527 7th
St., Des Moines, Iowa.

Y o u r C u s t o m e r a n d F o r e ig n T r a d e
B an ks w ith cu stom ers w h o are in terested in fo reig n

Navy blue are Alice Gavin, formerly a
bookkeeper with the Iowa-Des Moines
National Bank & Trust Company, who
left the bank last month to join the
Marines, and John McCormick, who
joined the Navy later in the month.
He was in charge of the collateral de
partment of the Iowa-Des Moines.

trade are in v ited to co n su lt o u r Foreign Trade Infor

mation Department. T h e activities o f this special unit
in clu d e :
A ssistin g A m e r ic a n exporters to reach m arkets
a b ro a d .
A id in g

im p orters

establish

relation s

w ith

fo reig n sh ippers.
F in d in g sources a bro a d o f co m m o d itie s in w hich
im p orters are in terested.
O b ta in in g in fo rm a tio n o n fo reig n g o v e rn m e n t

Surplus and Profits
In publishing figures for the Cedar
Falls Trust and Savings Bank in the
1944 edition of the Iowa-Nebraska
Bank Directory, the surplus and un
divided profits item was inadvertently
omitted. According to the December
31, 1943, statement for the bank, sur
plus, undivided profits and reserves
stood at a total of $71,297.88, of which
$50,000 was surplus. The Cedar Falls
Trust and Savings Bank is capitalized
at $50,000.

reg u lation s a ffectin g ex p o rt and im p o rt trad e.
B a ck o f these special services are facilities fo r h a n
d lin g w orld-w ide tra d e, created d u rin g m a n y years
o f experien ce in fin ancing in tern ation al c o m m e rce .

I r v i n g

T r u s t

ONE WALL STREET
M em ber

Northwestern Banker June

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

F ederal

•

D e p o s it

C o m p a n y

NEW YORK 15, N. Y.
In s u r a n c e

C o r p o r a tio n

In Bank 50 Years
James Nuckolls, president of the
Hardin County Savings Bank, Eldora,
Iowa, celebrated his 50th anniversary
in the banking business on June 1st,
spending the entire 50 years in the
same location. He entered what was
then the Hardin County Bank, from
the University of Chicago on June 1,
1894, and has seen the bank grow from
deposits of a little over $100,000 to
$3,500,000 at the present time. A new

■i

• IOWA
building was constructed on the same
location in 1920 and in 1942 the build
ing was completely remodeled and en
larged to the comfortable quarters
which the bank now occupies.

Death Takes David Bates
David W. Bates, 71, of Albia, Iowa,
Iowa superintendent of banking from
1933 to June, 1941, died last month.
Following his retirement as banking
superintendent, Mr. Bates joined the
liquidation division of the Federal De
posit Insurance Corp. at Washington,
D. C.
Also a lawyer, Mr. Bates practiced

NEWS

•

last month to join the navy. The bank
lost the manager of the Deep River
office at Deep River last July, so this
leaves M. L. Arendt, vice president, to
run the bank and the office with the
help of five women.

Bank Entertains
Cattle Feeders
The cattle feeders meeting held last
month in Woodbine, Iowa, was the re
sult of the combined efforts of the ag
ricultural department of the local high
school, the state agricultural extension

department and the First National
Bank of Woodbine. A tour of feedlots
was made with Rex Beresford, Iowa
State College Extension animal hus
bandman. The bank furnished dinner
with S. R. DeCou, cashier, banquet
host and toastmaster. The dinner
preceded the talks of Byron Demorest,
managing editor of the Omaha Daily
Journal Stockman, and Mr. Beresford.
Over 60 cattle feeders managed to at
tend in spite of unfavorable weather
conditions. Its success as expressed
by these men may lead the affair to
becoming an annual event.

S t . Louis is a centrally located city
with excellent mail schedules both
D.

B ATES

law at Albia for 28 years before taking
the banking post. Previously, he had
served as clerk of the district court
there and as Monroe county attorney
for six years.
A Democrat, Mr. Bates was first ap
pointed banking superintendent by
former Governor Clyde Herring and
was reappointed by former Governor
Nels G. Krasehel.
Mr. Bates also had been president of
the former Home Savings Bank, Des
Moines, president of the Albia State
Bank, and director of the First Iowa
State Bank, Albia.

by rail and air. We are equipped
to m ake fu ll use of these, in
handling correspondent business.

-w

FIRST N AT id NAL BANK
IN ST.
Ir
MEMBER

FEDERAL

DEPOSIT

OUIS
-“t !
INSURANCE

CORPORATION

Cashier to See the World
L. L. Arendt, cashier of the Gibson
Savings Bank, Gibson, Iowa, who has
been with the bank for nine years, left

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

Northwestern Banker June 1944

In the D ir ec to r s ' R o o m
Rugged
John: So you’re from the sheriff's
office.
Bill: Oh, you saw the badge on my
shirt.
John: Why, you haven’t got a shirt
on.
Bill: So that’s why it hurt when I
pinned it on.
Girl
Hayfoot: I’d like to meet a girl who
doesn’t smoke, drink, pet or dissipate
in any way.
Strawfoot: What for?
T ougher
“ What’s wrong, Henry?” asked his
wife.
“ My razor,” boomed the voice within
the bathroom. “ It doesn’t cut at all.”
“ Don’t be silly. Your beard can’t be
tougher than linoleum.”
Commercialized
The newspaper publisher’s little
daughter returned from Sunday School
carrying an illustrated card.
Mother: “What have you there?”
Little Girl: “ Oh, just an advertise
ment about heaven.”

Blows
During the remote control broadcast
of a prize fight, a California station cut
in with a special bulletin announcing
the death of a noted citizen. “ This
comes as a great blow to the com
munity,” concluded the local announ
cer before transferring back to the
arena.
“ The blow didn’t mean a thing,”
were the fight announcer’s next words.
“ It was just one of those lucky acci
dents.”
A ffairs
Mistress: “ I suspect my husband is
having an affair with his stenog
rapher.”
Maid: “ Oh, you’re just saying that
to make me jealous.”
Success Story
A certain chief we know says he
started from scratch. Now he itches
all over.

Eggs
The codfish lays a million eggs,
The little hen but one;
But the codfish doesn’t cackle
When her little stunt is done.
And so we praise the artful hen,
The codfish we despise;
Which makes it plain to thoughtful
men
It pays to advertise.

■i

CONVENTIONS
June
6 -8 ,
A M E R IC A N
IN S T IT U T E
OF
B A N K IN G ,
S ta tle r H o t e l,
S t.
L o u is
J u n e 8 -9 , W I S C O N S I N ,
M ilw a u k e e

P fis te r

J u n e 9 -1 0 , S O U T H
D A K O TA ,
W a r d H o te l, A b e rd e e n

H o te l,
A lo n z o

J u n e 1 9 - J u l y 1, G R A D U A T E S C H O O L
O F B A N K I N G , R u tg e rs U n iv e r s ity ,
N e w B r u n s w ic k , N e w J e r se y
June
3 0 -J u ly
1, N O R T H
D A K O T A ,
G ard n e r H o te l, F a r g o
June
1 3 -1 4 ,
H o t e l, S t.

M IN N E S O T A ,
Paul

S t.

Paul

S e p t. 3 -4 , I O W A , F o r t D e s M o in e s H o
te l, D e s M o in e s
S e p t.
1 9 -2 0 ,
N A T IO N A L
A S S O C IA
T IO N O F B A N K A U D IT O R S A N D
C O M P T R O L L E R S , C le v e la n d , H o t e l
C le v e la n d
S e p t. 2 4 -2 7 , A M E R I C A N
B AN K ER S
A S S O C I A T I O N , C h ic a g o
O c t.
2 5 -2 9 ,
F IN A N C IA L
A D V E R
T IS E R S
A S S N .,
E d g e w a te r
B each
H o t e l, C h ic a g o

Index To Advertisers
A
A llen W a les Adding- M achine Co...............
A llied M utual C asualty C om pan y...........
A llison W illia m s C om pan y...........................
Am erican National Bank and T rust Co..
Am erican T rust Com pany.............................

3
32
42
66
28

Bankers Trust Company— Des M o in e s .. 71
Burroughs A dding Machine C o m p a n y .. 59
C

Central H anover Bank and Trust Co.. . .
Central National Bank and Trust Com
pany— Des Moines ......................................
City National Bank of D u lu th ....................
City National Bank and Trust Company
— Chicago ........................................................
City National Bank and Trust Company
— K ansas City ...............................................
Continental Bank and Trust Company
New Y ork ........................................................
Continental National Bank— L in c o ln ...

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

22
24

It
H am m erm ill Paper C om pany.................... 19
H aw keye M utual H ail Insurance A ssn .. 33
Home Insurance Com pany...........................
6

10
42
40
52
54
55

34
29
32
38
46
43
36
52

New York Trust C om pany...........................
Northern States Envelope Co......................
Northern Trust C om pany.............................
N orthw est Security National B a n k .........
Northw estern National L ife Insurance
Company ..........................................................

28
34
35
47
34

«
Old Republic Credit L ife Insurance Co.. 33
Omaha National B a n k .................................... 17
P

Iow a-D es Moines National Bank and
Trust C o m p a n y ............................................. 72
Irvin g Trust C om pany.................................... 68

Northwestern Banker June 19

69
41
65

Davenport, F. E. and C om pan y...............53-64
DeLuxe Check Printers, Inc........................ 53
Des Moines Building, Doan and Savings
A ssociation .................................................... 63
Drovers National B a n k .................................. 67
F
F arm ers M utual H ail Insurance Co.........
Federal Interm ediate Credit B a n k s .........
Financial Developm ent C om pan y..............
F irst and Am erican N ational Bank—
Duluth ...............................................................
F irst National Bank of the Black H ills.
F irst National B ank— C h icago..................
F irst National Bank— M in n eapolis.........
F irst National Bank— O m a h a ....................

F irst National Bank— St. L o u is................
F irst National B ank— St. P a u l..................
F irst National Bank— Sioux C ity ..............
F irst N ational Bank and Trust Com
pany— F argo .................................................
F irst W isconsin National B a n k ..................

Jamieson and C om pany.................................. 43

K
Koch B r o t h e r s .................................................... 67

L
LaM onte, George and S on .............................
L essing A dvertisin g C om pany..................
Live Stock National B ank—-Chicago. . . .
Live Stock National Bank— O m ah a.........
Live Stock National Bank— Sioux C ity. .

5
65
63
56
44

M
M anufacturers T rust C om pany..................
Merchants M utual Bonding Com pany. . .
Merchants National B a n k .............................
M errill Lynch, Pierce, Fenner, and
Beane .................................................................
M innesota Commercial Men’ s A ssn ...........

Philadelphia National B a n k ......................... 25
Policyholder’s National L ife Insurance
Company .......................................................... 46
Public National Bank and T rust Co......... 42

R
R ussell County Building and Doan
A s s o c ia t io n ............................................

St. Louis Terminal W arehouse Co........... 64
St. Paul M ercury Indem nity Co.................. 33
St. Paul Term inal W arehouse Co............. 21
Scarborough and C om pany.................27-31-63
Stock Yards National B ank— O m a h a ... 50
Stock Yards National Bank— St. P aul. . . 39
T

48
35
2

Tension Envelope Corporation.................. 48
Tootle Lacy National B a n k ..................... 54-55

26
30

W a n t Ads .............................................................
W’ alters, Charles E ..........................................
W ayn e H um m er and C om pany..................
Wrelch, Jay A ........................................................
W e sslin g Services ...........................................
W estern M utual Fire Insurance Co.........

N
National Bank of W a te r lo o ......................... 58
National City Bank of New Y o r k ................ 4

W
68
55
28
58
67
32

sue can

Free Co
So that she and millions of other children can grow
up in a free country— what better reason could
we Iowa bankers have for devoting our time
and energies to the successful comple
tion of the 5th W ar Loan, probably

the most important financial
effort to date — perhaps
the most important of
the whole conflict?

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

BANKERS T R U S T
C O M PA N Y tt:;? des moines

5- f

. |

, . •/ ,

" r "

v '

-..

L t •.'

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FC^/ICTORY
d U BU Y
U N I T F .D
ir'M statks
n f r WAR
/V a S r ONDS
STAMPS

16 B I L L I O N D O L L A R S

Iowa’s Quota

*202,000,000
W it h

*7 4 ,0 0 0 ,0 0 0
Of

This
"E"

Total

Bonds

Iowa has oversubscribed its quota in
each of four previous War Loan
campaigns.
Iowa can DO IT AGAIN in the 5th
War Loan.
But a tremendous selling job lies
ahead. As Bankers we have the
opportunity and the obligation to
provide the financial leadership so
necessary for success.
By making face-to-face contacts with

owa -D es

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

June 12<J< - July 89 - 1944

every depositor in each community
and by selling larger amounts of War
Bonds to a greater number of
investors, we can contribute to the
progress of the War effort here at
home and accomplish much for the
future of the Nation and the preser
vation of our institutions. Our sights
should be set high.
LET’S GO . . . for the Knockout Blow
. . . by doing a better War Bond
selling job than ever before.

M oines N ational
& TRUST COMPANY

M e m b e r Federal Deposit Insurance Corporation