Full text of The Northwestern Banker : June 1948, 53rd Year, No. 731

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JU N E

1048

■

r ft

Conventions:
North and
South D akota-^ 21
Minnesota— Page 22

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Federal Reserve Bank of St. Louis

SCHOOL FOR BANK PUBLIC RELATIONS MEN— Page 13

Facilities for Everyone
Banks, firms which do a national business, and indi
viduals having business in the Cedar Rapids area, are
cordially invited to use the facilities of the Merchants
National Bank. They are assured of efficient service
and friendly cooperation, from a bank which has served
the midwest for 67 years under the same continuous
management.

THE
MERCHANTS NATIONAL
= B A N K =
O F F I C E R S
JAMES E. HAMILTON, Chairman Executive
Committee
S.
E. COQUILLETTE, Chairman of the Board
JOHN T. HAMILTON II, President
H. N. BOYSON, Vice President
MARK J. MYERS, Vice President
GEORGE F. MILLER, Vice President and
Trust Officer
MARVIN R. SELDEN, Vice President
FRED W . SMITH, Vice President

Ú íé L 9

R. W . MANATT, Vice President
L. W . BROULIK, Vice President
PETER BAILEY, Cashier
R. D. BROWN, Assistant Cashier
O. A. KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, Asst. Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W . BRYANT, Assistant Cashier
JAMES E. COQUILLETTE, Assistant Cashier

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

►
Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des 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

Customers react favorably when
a bank provides them with checks on
La Monte Safety Paper. But remember
that is only the first step in building good will for
your institution through using America’s
finest check paper. Further benefits are
far-reaching and purely automatic. For your
customers put those checks into circulation for you.
Thus they come under the observation,
time and again, of every important company
and business person in the community you serve.

o i >^c 'lio N

GEORGE LAMONTE & SON, NUTLEY, NEW JERSEY

cqrporìì

THÍ WAVY HMH <5j AIE A IA MONTE HADE M AI«

•jHgUSMiS-

aoRE-S.

A Check Paper AH Your Own
Thousands o f banks and many o f the larger corporations
use La Monte Safety Papers with their own trade-mark or
design made in the paper itself. Such INDIVIDUALIZED check
paper provides maximum protection against both altera
tion and counterfeiting — makes identification positive.

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n ke r, J u n e , 1948

avana

ong

uenos

ires

ombay

From H a v a n a to Hong Kong . . . From B u en o s A ire s to B o m b ay

48 overseas branches are ready
to serve N a tion a l City correspondents
T

h r o u g h

its system of 48

overseas branches in key cities
th r o u g h o u t

th e

w o r ld ,

The

National City Bank of New York
provides quick access to foreign
markets. The Bank is ready to
serve your customers with expert
trade helps, on-the-spot market re
ports, credits and foreign exchange.
Feel free to call on National
C ity ’s officers

discuss

sp ecial needs. A sk

your

ARGENTINA
Bueno? Aires
Flores
Plaza Once
Rosario
BRAZIL
Rio de Janeiro
Recife
<Pernambuco)
Santos
Sao Paulo
CANAL ZONE
Balboa
Cristobal

CUBA
Havana
Cuatro Caminos
Galiano
La Lonj a
Caibarien
Cardenas
Manzanillo
Matanzas
Santiago
ENGLAND
London
117, Old Broad St.
11, W aterloo PI.
HONG KONG

CHILE
Santiago
Valparaiso

INDIA
Bombay
Calcutta

CHINA
Shanghai
Tientsin
COLOMBIA
Bogota
Barranquilla
Medellin

PERU
Lima
PHILIPPINES
Manila
Cebu
Clark Field
PUERTO RICO
San Juan
Arecibo
Bayamon
Caguas
Mayuguez
Ponce
REPUBLIC OF
PANAMA
Panama
SINGAPORE

JAPAN
Tokyo
Osaka

URUGUAY
Montevideo

MEXICO
Mexico City

VENEZUELA
Caracas

them how

they can help you develop profit

Every 3 seconds a customer is served overseas

able customer relationships. Con
sult or write these officers at the
Head Office in New York con
cerning the handling o f your
collections; your credit require
ments, domestic or foreign; and
the

specialized

facilities

which

our Overseas Division offers.

THE

NATIONAL

CITY

NEW YO R K

65 Branches in Greater N ew Y ork

Head Office: 55 W a ll Street

N o r ih v / e s t e r n ba n.. e r , J u r e , 1/48

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Federal Reserve Bank of St. Louis

BANK

9^ / é/

T he National Central Control and Proof Machine provides definite proof and
control over all incoming items, and eliminates peaks and bottlenecks by
maintaining an even flow of work all day.
W ith a National Proof Machine in your bank, accuracy becomes automatic.
Accuracy in sorting items is facilitated by the automatic opening of the shutter
located on the compartment in which a particular item should be placed. Accuracy
in the entry of items is assured through the automatic “Lock Proof” feature—
something no other machine can offer! If the operator errs in recording an
amount— or if the depositor erred in adding his deposit ticket—
the machine locks automatically!
For fuller description of this, and all the other National Accounting Machines,
arrange with your local National representative for your copy of the illustrated
60-page booklet shown at the right. Or, write to The National Cash Register
Company, Dayton 9, Ohio. Sales and Service Offices in over 4 0 0 cities.

THE

NATIONAL

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Federal Reserve Bank of St. Louis

CASH

COMPANY

A N E W , IL L U S T R A T E D B O O K L E T o f

some 60 pages describes the services
o f each of the N ational line. Shows
how they can speed work in every
department o f your bank. A sk your
local N ational representative for
a copy of this valuable booklet. I t ’s
informative and helpful, and handy
when accounting problems arise.

★

Use the
in Chicago
FOR WORLD-WIDE BANKING
On every type of foreign trade and finance,
including the remittance of funds, the sale of
commercial and travelers’ letters of credit,
the handling of foreign collections, and the
purchase and sale of exchange, the officers of
our Foreign Banking Department are prepared
to render advice based on long experience.
A competent and thoroughly trained staff will
he pleased to discuss your particular foreign
trade problems with you and handle your
international transactions.
Calls or correspondence are invited.

The First National B an k off Chicago
B u ild in g w ilh C h ic a g o an d the N a tio n S in ce 18 63
MEMBER

★
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

FEDERAL

D E PO SIT

IN SU RA N CE

CORPORATION

★

Whipple
House
"The Whirr of Spinning Wheels”
CCI awrence ye Indian,” valued at four
L , pounds, was numbered among Cap
tain John Whipple’s worldly possessions in
his will drawn in 1683. The numerous
household items in his inventory, including
“ basons, pottingers and silly bub pots,” to
gether with his homestead, farm lands,
“ piggs, cowes and swyne,” mark him as
unusually wealthy for the period.
The captain was the second of three John
Whipples who lived in the old homestead

Mischievous boys dropped a c a lf down this chimney.

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Federal Reserve Bank of St. Louis

in Ipswich, Massachusetts, that bears
their name. Though the exact date
when the earliest section of the house
was built has not been determined,
the first John Whipple acquired it in
1642. As Deacon and later as Ruling
Elder, this eminent Puritan was one
of the leaders in church and
town government.
Elder Whipple’s son, Captain John,
was a businessman and soldier. While
serving in King Philip’s War he
gained possession of the Indian men
tioned in his inventory. As his son,
Major John, had six daughters but
no male heir, the house passed to the
major’s daughter Mary and her hus
band and was owned by their de
scendants until 1838.
Now the headquarters of the Ips
wich Historical Society, the Whipple
house is considered one- of the best
examples o f earliest seven
teenth-century colonial archi
tecture in New England.
Faithfully restored to its original
period, it recreates in the imagination
the daily life of the Puritans. As the
Ipswich historian, Rev. Thomas
Franklin Waters, has said, “ The old
pavement in the dooryard rings again
with the hoof-beats of Capt. Whip
ple’s horse hurrying to lead his troop
ers to repel an Indian assault . . . the
whirr of spinning wheels, the rumble
of the loom overhead, the beat of the

churn, the roar of great winter fires, the
hissing of meats on the long spits, the voices
of children at play or demurely reciting the
catechism, the good wife’s chat with neigh
boring gossips . . . all the history of other
days becomes a speaking witness to the
simplicity of the old Puritan home life.”

Household implements used by the Puritan family.

Jhe Home, through its agents and
brokers, is America’s leading insurance
protector of American Homes and the
Homes of American Industry.

T H E
N EW

H O M

Y O R K

FIRE • AUTOMOBILE • MARINE INSURANCE

"W e intend
to make full
use of it"

“ The service which your
institution extends a t a ll times
is something we think can
hardly be equalled and
we intend to make fu ll use o f it.”

Extract from a letter received from
one o f our correspondent banks

many years it has been the aim o f the

quoted above — are gratifying p ro o f that

Chase N ational Bank to make its service

this phase o f Chase banking service has

to its thousands o f correspondent banks

been

highly efficient and helpful.

faction

o r

N um erous

letters — such

as the one

performed
to

banks

with

success

both

this

and abroad.

B ro a d en cu sto m er serv ice w ith C hase co r resp o n d en t fa c ilit ie s

THE C H A S E

NATIONAL

O F THE CITY O F N EW Y O R K
Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, J u n e , 1148

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Federal Reserve Bank of St. Louis

and satis

BANK

country

FOUR MILLION
checking account customers
are enjoying the benefits of
•

;

this modern banking service

■

BURROUGHS
COMMERCIAL TELLER’S
MACHINE
Somewhere, today, thousands o f checking account cus
tomers are having their first experience with mechan
ized commercial teller operations. Like the four million
people who have preceded them, their reaction to this
fastest-growing customer service is bound to be one o f
unqualified approval.
They will like it because window service is faster, and
WHEREVER

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Federal Reserve Bank of St. Louis

THERE'S

BUSINESS

the printed registered receipt they receive is more
convenient than a pen and ink posted passbook. They
will like it because it’s the modern way to do business.
This universal customer endorsement is a paramount
reason why banks everywhere are installing modern
Burroughs Commercial Teller’s Machines. There are
others equally important. Let us give you the full story.

THERE'S

B u rro u g h s^
N o r t h w e s t e r n B a n k e r, J u n e , 1948

*99-16
__rtachèi? lAi

le ía n A n d e rs o n

16/100____________ P O L L A K ?

apiVopi?,a-ted fe»? i(acuitoi¡íai*.
riio

Ai'fHf ?«re

ch' í

104-16

Cashed for $104.16 instead of $99.16.
-

..........

R. Davies C ompany

$PClAJ6FlELp/4EWY0RK
^g****^^

°'

05693

_____ John. Stoveman,_____

ri^Vn^TIii792\e\?i\'Si
L Jr R.

Pavies

Co m pan

What’s the amount payable?

/J? i/AlÓ
CtWCAGO AI0V 7 1947
and. 14/ ioo

_____r a ,iA i? s

RxiCYNo 62031

Three numbers, none of them the amount.

ftfiÇM A
May 11,

ttMf C4¿Hfp

Vi<A Deposits Co

ix ty —Vin-e- • Pffi ..Age ^ 40/100

Cost 17 hours tracing e" ° rX

”«»**»

A**??'

What is wrong with these
<

Here are four examples of badly designed checks...
Why did every one cost the bank time and money?

the right answers
SEND FOR THIS FREE BOOK!
Y o u ’ll find Hammermill’s idea-book “ BUSINESS CH ECK S” a stimulating
;sher. It shows 15 examples of time-wasting faults taken from checks in
actual use. Then it gives the 8 Essentials of Good Check Design— all based on
interviews with bankers and conforming to recommendations of A. B. A.
M any bankers find distribution of this book a tactful and effective way to
persuade their customers to design their checks properly. Send for free copy.
E v e n the best-d esig ned b a n k a n d b u sin e ss ch ecks g iv e greater sa tisfa c tio n on
the s a fe ty p ap er th at re a lly protects— H a m m e rm ill S a fe ty .

Safety Paper Division,
Hammermill Paper C o.. 1513 East Lake Road, E n e , Pa.
Please send m e - f r e e - a
¿mfc.

Ä¿m*«**^ #&**°**^

proper planning and design.

mm» mmm % Æ

I -1 hm I - 1. :c: > - ' i

%#
^3SS^

copy of -BUSINESS C H E C K S -t h e .r

- • .....

N am e

Position

(S im p ly a tta c h co u p on to , or w rite on , >our b an k lette

NW B—J v

The b ackg ro u n d pattern illu stra ted in th is a d ve rtise m e n t is the fa m o u s H a m m e rm ill S a fe ty C h a in lin e d e sig n .
Th ere are tw o other p le a sin g d e sig n s to cho o se fro m .
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

IOWA-NEBRASKA
BANK DIRECTORY
P u b lis h e d b l/

No r t h w e s t e r n B a n k e r
DES M O I N E S

COMPLETE INFORMATION

ORDERED Yours Yet?

ON ALL BANKS IN

IOWA and NEBRASKA

ACCURATEDEPENDABLEPOCKET S IZ E

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Federal Reserve Bank of St. Louis

1948

EDITION

of "lowa-Nebraska Bank Directory'

SEND IN THIS C O U P O N

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

___________________________, 1948

Gentlemen :

Please send------------ copies of your 1948 lowa-Nebraska Bank
Directory to us, and we will remit at the rate of $2 per copy
upon receipt of your Directory.
Name___________________________________________________ _________
Address__________________________________________________________
City---------------------------------------------- State___________________________

N o r t h w e s t e r n B a n ke r, J u n e , 1948

Now An Omaha Office
lias been opened to provide complete service on

FIELD WAREHOUSING
It is with pleasure that we announce the appointment
O T H E R

OFFICES

of M r. Elmer J. Otteson as District Manager in
St. Paul

Minneapolis

Detroit

New York

Boston

Philadelphia

Memphis
Des Moines

Atlanta

Milwaukee

Chicago

Buffalo

Syracuse

Pittsburgh

Albany, Ga.

Jacksonville

Omaha with offices at 1 1 0 5

First National Bank

Building.

Dallas
Charlotte

Shreveport

W e invite bankers to request our counsel whenever
they are interested in lending against inventories.

St. Paul Terminal Warehouse Co.
DES M O IN E S, I O W A OFFICE
5 1 5 lowa-Des M oines National Bank Building
T . C. Cannon, District Manager
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

S J

p A U |_

M IN N ESO TA

Mtear E d ito r

DES MOINES
O ldest Financial Journal West of the Mississippi

The following letters are from
Northwestern Banker readers. Your
views and opinions on any subject
are welcome in this column.

"Directory Most Helpful"
“ We just couldn’t keep house without the
very fine Iowa-Nebraska Directory which we
received recently.”

Lav erne M. Barlow, Man
ager, Thomson Sr McKinnon,
Des Moines, Iowa.

"Valuable Contribution"
“ Just a line to say that as per usual, the
N orthwestern B anker folks did them
selves proud all the way on our recent Group
trip special train. We people in Nebraska
have appreciated so much for a long while
the valuable contribution you folks make
towards the successful meetings we have
been able to hold in the past.
“ We truly hope that you will be .with us
again next year.”

J. 0. Beck, F resident, N e
braska Bankers Association,
Columbus, Nebraska.

"Appreciate Directories"
“ I want to thank you for the six copies
of the Nebraska-Iowa Bank Directory re
ceived just before going on our Group trip.
“W e cannot get along without these direc
tories around this shop.
“ Henry Haynes, Editor of the N orth
western B anker , was again one of our best

(Turn to page 40, please)

ON THE COVER
The group of buildings pictured on
the cover page of the N orthwestern
B anker this month includes Wieboldt
School of Commerce on Northwestern
University’s downtown campus in Chi
cago, where the School of Financial
Public Relations, sponsored by the Fi
nancial Public Relations Association,
will be held August 16th to 28th this
year.
Registrations this first year are lim
ited to 50 members of FPRA. Resi
dence for those attending will be in
Abbott Hall, near the school. The total
cost for the two weeks’ course, includ
ing board and room, is $200 per enrollee.

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Federal Reserve Bank of St. Louis

JUNE,

IN T H IS
EDITORIALS

•

53rd Year

•

No. 731

1 9 4 8 , IS S U E

Across the Desk from the Publisher._______________________ ___________ 14

FEATURE ARTICLES
Dear Editor ...................................................................................................................
_______ ____ ________ _________ _________ ____________ ________
Frontispage
How Machines Save Time and Money for Banks—
A N or th w ester n B a n k e r Survey.......................................................... 18,
W ill Business Increase Or Decline?.................... ........... Joseph L. Snider
Joint Convention— North and South Dakota Associations....................
The Minnesota Convention..................................................................... ...............
News and Views of the Banking W orld......................... Clifford De P u y
Bankers You Know— W illiam A . McDonnell.......................... ................. .
Must a Trustee Make A n Accounting for His Activities?— Legal......

13
17
19

20
21
22
24
25
26

BONDS AND INVESTMENTS
Investment Planning Should Lead Toward the Conservative Side....
................................. ......................... .......... ..... ...................... Raym ond T rig g er 35

INSURANCE
How W e Try to Keep Our Policyholders H appy ...C lifford B. R eeves 39

STATE BANKING NEWS
Minnesota N ew s..___ _______________
Twin City N ew s................................................................................................
South Dakota N ew s...................................................................................................
Sioux Falls News.................................
North Dakota N ew s...................................................................................................
Nebraska N ew s....................................... ............ ................................................... .
Omaha N ew s..........................................................................................
Lincoln Locals.....................................................................................................
Iowa N ew s..................................................................................
Group Meeting Gossip...................... ........... .......... ..... Clifford D e P u y
Group Meeting Pictures..................
Des Moines N ew s.............................
Bechtler Once Did Large Business in Private Coins........ .......................
Conventions ...................

43
44
49
49
55
57
58
60
63
66
67
72
72
73

IN THE DIRECTORS' ROOM
Rehash of Old Rehashes....................

N O RTHW ESTERN BANKER
527 Seventh S t .,

Des Moines 9, Iowa, Telephone 4-8163

CLIFFO RD DE PUY
Publisher

RALPH W . MOORHEAD
Associate Publisher

HENRY H. HAYNES
Editor

BEN J. H ALLER, JR.
Associate Editor

MALCOLM K. FREELAND
A ssociate Editor

ELIZABETH COLE
Advertising Assistant

H A ZEL C. HADLEY
Auditor

SADIE E. W AY
Circulation Department
JOSEPH W . FRANKS
Field Representative

PAUL W . SH O O LL
Field Representative

NEW YORK O FFICE
Frank P. Syms, Vice President, 505 Fifth A v e ., Suite 1806

DE PUY

PUBLICATIONS:

Northwestern

Banker,

MUrray Hill 2-0326

Underwriters

Review,

Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.

N o r t h w e s t e r n B a n k e r, J u n e , 1948

u
America today faces its greatest test as well as
its greatest opportunity in all of its history.
We have full confidence that America will re
main strong, but it will take the combined efforts
of all of us to achieve the goal which you have
so ably expressed.

sjd üi

(R o b & liA D fi:

D ep u ty C om ptroller o f the C u rrency

“ Two heads are better than one,” has been
recognized as good business.
That certainly applies to banking, and the
Northwestern Banker has always believed that
bank directors should take an active part in the
management of the institutions with which they
are connected.

Across the Desk
From the Publisher

A “ one-man bank” may be very successful, but
it might be even more so if the directors took a
more active interest. Also, in case any mistakes
do occur, it’s better to have the combined judg
ment of the directors, plus the man in charge,
rather than have any faults or criticisms placed
on the managing officer alone.
l rou very properly ask the question, “ How ac
tive is the directorate of your bank? How many
of the individual directors have accepted their
position solely for the prestige it carries?

Q qwi

President, 'Chamber o f Com m erce o f the United States

You have voiced the sentiment of every true
citizen of the United States when you say “ Amer
ica must remain strong.”
In the strength of our nation lies the future
hope and success of the world, and you very aptly
expressed the thoughts of millions of your fellow
countrymen, when you said: “ America must be
strong! America must keep building— growing—
creating. The creative genius of American enter
prise lights the way to national strength— to se
curity— to freedom— and we earnestly hope— to
peace.

Our obligation is to nourish and develop

the genius of enterprise for the huge tasks that
we see ahead.
‘ 1A strong America will continue to be the rally
ing point for all nations that yearn for freedom
and liberty. In union there is strength. In strength
there is independence. In freedom, America will
continue

build— and to

grow— through

How

many of them exercise the same degree of aggres

c u d 0 . S h h sw a :

sive leadership to improve the bank that they em
ploy in their own businesses?

“ What do your executive officers do to get the
best men to serve as directors,' and to stimulate
greater participation by the directors? Do your
executive officers keep the members of the board
fully informed of what is going on in the bank?
Do they consider board meetings as necessary
evils? As social interludes? Or as real oppor
tunities to obtain the benefit of the combined wis
dom of the directors in exploring policies, pro
cedures and practices, as well as to obtain the
approval of loans and investment?
“ Is your bank one of those which has a chief
executive officer who feels that the bank is his
own, to do with as he pleases; who thinks that he
alone knows how the bank should be operated;
and who permits no one (either directors or other
officers) to look behind the scene he himself paints
with his own brush?

the

“ In far too many instances we have found that

initiative and genius of enterprise. The hope of
the world is a strong America— fulfilling its des

the board of directors did not know what was
going on, until after it was too late. Too many
banks are one-man banks. It is not necessary for

tiny to create— and to build.”

As you also well pointed out, America can only
become strong where there is a partnership of
capital and management and labor and where
teamwork of government and business go hand
in hand with the farm and the factory.
N o r t h w e s t e r n B a n k e r, J u n e , 1948

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Federal Reserve Bank of St. Louis

me to ‘ spell out’ here the shortcomings of such
institutions, but I do wish to comment that the best
bank managements are based on well-knit, wellorganized harmonious groups of men rather than
one individual genius.”

15
We believe as you do, Mr. Robertson, that team
work pays and that an intelligent, active and alert
board of directors is of definite value to any
institution.

(b&jcui *)sxfiq& (BsJinaJid. S A a w :
W riter-A u th or-S ta lin S tooge

In one of your recent sensational, senile, social
istic sophistries you praised Premier Josef Stalin
as a sensible and practical representative of
European socialism.
“ As a Communist, he believes, and so do I, that
Communism will permeate and convert the world,
but he knows that an attempt to impose it by force
would ruin Russia and him self.”

So you want the world converted to Communism
do you, Mr. Shaw?
And do you think that Communism is not being
imposed by force in Russia?
Furthermore, if the world is converted to Com
munism, Mr. Shaw, you would not be leading the
easy carefree life you have lived for 91 years on
the island of England.
They tell us that you live mostly on fruit and
NUTS— perhaps the latter have affected your
thinking, but since you are a man of letters, may
we answer you with the following quotations:
1. ‘ ‘ Discomfort guides my tongue and bids me
speak of nothing but despair.”
— Richard II, Act III

(Ù qjcüx

ÇhaAlsiôi J. O'Tbdll:

Chairman, A gricu ltu ra l Com mission

The report of your Agricultural Commission of
the American Bankers Association makes very
good reading, Mr. O ’Neill, but it also points out
the fact that bankers should be careful to look
for any danger signals which may be ahead and
guide themselves accordingly in making farm
loans.
Comparing farm land prices of 1920 with
1948, using the 1912 to 1914 average as a base of
100, your report indicates that most of the states
have not yet had farm prices reach the boom fig
ures they did 28 years ago.
In the N orthwestern B anker territory, the
figures are as follows :
Farm land prices

Illinois

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

1920

1948

Boom

Farm

Peak

Values

160

150

Iowa .................

213

150

Kansas ............. ......................
Minnesota .............. _____

151

163

213

157

Missouri

_____ ___________
___________ ........

167

116

126

129

Nebraska ......... ........ _____
North Dakota ......... .... .

179

126

145

110

181

Montana

...

South D a k o t a ______

2. ‘ ‘ For the good that I would,
I do not; but the evil
which I would not, that I d o .”
— Romans V II, 19
3. ‘ ‘ If you share the crime of your friend,
you make it your ow n.”
— Publilius Syrus
4. “ Successful crime is dignified
with the name of virtu e;
the good become the slaves
of the impious, might makes right,
fear silences the power of the la w .”
— Lucius Seneca
5. “ Pray do not mock me;
I am a very foolish fond, old man;
And, to deal plainly, I fear I am not in my

Your report further indicates, Mr. O ’Neill, that
“ the financial position of farmers of the United
States is the strongest on record, with assets in
creased from $4.9 billion to $22 billion in 1947. .
Their total debt at the beginning of 1947 was
$8.2 billion as against $10 billion in 1940. Farm
mortgage debt in 1947 was $4.7 billion, approxi
mately one-half of mortgages owed by American
farmers at the end of World War I.
“ It should be remembered that when prices in
general start to recede, those on farm commodities
tend to drop faster than those on things the
farmer buys. Then a reduced net income may not
support a debt placed on land purchased during
high prices.
The

perfect m ind.”
— King Lear

Northwestern

Banker believes

that

the

farmers of the United States will continue in the
strong position in which they now find themselves

In any case, Mr. Shaw, at 91 years of age, Com
munism will not have a chance to bother you very
much, but there are others who have a longer life
to live and who would like to exist in a world of
peace and friendship, and not one dominated by
the iron heel of the ruler in the Kremlin.
So back to your fruit plate, Mr. Shaw, and take
an extra helping of NUTS.

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and that likewise bankers will use their good ju d g
ment in not extending loans on fictitious or in
flated values of farm land.

N o r t h w e s t e r n B a n k e r, J u n e , 1948

the Guidepost
to Complete,
Efficient
and Friendly
Correspondent
Service
in Des Moines
M e m b e r F e d e ra l Deposit In su ra n ce C o rp o ra tio n

N o r t h w e s t e r n B a n k e r, J u n e , 1948

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N o r t h w e s t e r n B a n k e r, J u n e , 1948

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.....
■ •
b b b b b b b b h b b b b b b b w b b

» ™ ^

ADBRESSOCfRAPH— Above is the Addressograph installation in the Central National Bank of Columbus, Nebraska.
After
describing the many uses to which the bank puts this machine, Howard Burdick, cashier, says: “ W e feel there are other uses for
the Addressograph which we will discover as we go along. W e have had the machine only five months, and have not as yet dis
covered its full possibilities.”

H ow M ach in es Save Tim e
and M o n e y for Hanks
Users of Modern Equipment Tell How They Have
Speeded Up Clerical Operations and Reduced Overhead
A NORTHWESTERN BANKER
SURVEY
HIS is the second of a series of
articles on modern bank equipment
and how its use saves money for
banks. The first article was published
in the May issue of The Northwestern
Banker. The third of the series will
appear in the July issue.

R. I. STOUT
P re sid e n t, F ir s t N a tio n a l Bank
(P o p u la tio n 2,00 0— D ep o sits $ 4 ,0 0 0 ,0 0 0 )
T e ka m a h , N e b ra sk a

“ In the last five years our deposits
rose from one million to four million
dollars. About two years ago we had
a complete turnover in help, and we
soon found out that our bank needed
modernizing, both in building and
mechanized equipment.
“ Our counters were modernized, we
enlarged our work room, redecorated
the entire bank in cheerful colors,
and installed a new system of lighting
known as cold cathode, which, after
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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eighteen months’ experience we find
most satisfactory and superior to the
fluorescent lighting we were using.
We also air conditioned our work room
and found that our bookkeepers and
clerks were able to do their work
easier, faster, and with more comfort.
“At the counters we installed John
son Lightning coin changers. We feel
that they increase the efficiency and
speed of the teller while he is waiting
on his customer. We use Monroe add
ing machines at each window, as well
as an electric Monroe check writer.
We have purchased a Downey-John
son coin counter and find that this
machine saves hours of time.
“ Up to a couple of years ago we
were using the batch proof method
for handling our items. Our volume
grew so we were running from eight
to fifteen proofs per day, and it was

necessary for two'people to run proofs
continually during banking hours.
With inexperienced help we found
that it was almost impossible to have
the proofs run and balanced for post
ing by three o’clock, which is our clos
ing time.
“After investigating all types of
machines we purchased a National
Cash Register proof machine. With
the installation of it, the constant
worry of proofs being off and unbal
anced completely vanished. One per
son can easily handle the number of
items in a day that two handled be
fore. We feel that the machine does
away with all confusion caused by
listing, batching, checking, and prov
ing our deposits by the batch method
as the machine is in balance every
minute of the day. The operators
we have used so far have been girls

M ICRO FILM ER— The Recordak Junior
microfilming unit is a desk model combi
nation photographing machine and film
reader. It is particularly adapted to the
needs of the community bank or for
auxiliary service in larger institutions. It
photographs documents up to 9% x 14
inches in size, bound or unbound, on 16mm.
film.
It leases for $15 per month, including
installation and maintenance.

who have had no experience except
posting individual ledgers and they
learn to operate the machine in a
week’s time.
“This machine operates continually
and gives instant proof on all deposits
taken from the tellers. All items are
immediately sorted while the deposit
ticket is being proved. If a deposit
or credit is out of balance, the machine
locks and warns the operator so she
can immediately find where the error
has been made and correct it. The
machine has twenty different keys
and at the end of the day will give
a separate total on each. It also gives
seven adding machine tapes, which are
used as remittance letters. We take
pictures on our Recordak of transit
items, both the face and back, so it is
not necessary to type a description of
each item. The only mistakes that we
have had were due to bad figures
where the customer makes the same
error and once in a while a missort
due to the human element with which
you have to contend under any sys
tem.
“At closing time the head teller is
advised by the operator of the proof
machine the amount of cash he should
have. We use cash in and out slips.
Immediately after closing time each
teller counts his cash and returns it
to the head teller. If the total cash
fails to agree with the correct amount,
only then is it necessary for each tell
er to compute what his individual cash
should be by listing his cash in and
out slips and deducting from or add
ing to the amount he received from
the teller at the start of business.
“ The cost of this machine is less
than 75 cents per day over a ten-year
period and will do the work of at least
one and a half persons proving with
the batch proof method. While we
(Turn to page 53, please)

TO CANCEL CHECKS— At the right is
the Cummins Model 300 portable electric
perforator in use for canceling checks. It
permits each bookkeeper to cancel checks
in two or three minutes’ time. This model
was completely created and designed since
the war, and replaced a machine of ten
times the weight which would cost twice
as much if manufactured today.

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W ill B usiness In crea se
or
B eelin e?
By JOSEPH L. SNIDER
Professor of Business Economics
Harvard Business School

JOSEPH L. SN IDER

Professor Snider l’eceived his
A.B. degree from Amherst in
1915, his A .M . from Harvard in
1918, and his Ph.D. degree in
1923.
He is a member of Phi Beta
Kappa and has been professor
of business economics at Har
vard Business School since 1925.
Fhe Northwestern Banker be
lieves tliat its readers will be in
terested in this very timely arti
ficie from a recent issue of the
Harvard Business School Alum
ni Bulletin, which material Pro
fessor Snider gave us permission
to publish.

HE question which concerns us all
is, of course, whether the declines
in agricultural and food prices,
which occurred early this year, signify
the early collapse of our prosperity.
My own guess on this question is “no.”

Looked at rationally the price de
clines which have already taken place
are a favorable development. We had
been conscious for a long time that
agricultural and food prices were ab
normally high, that they constituted
the most dangerous aspect of our in
flation, and that some correction was
desirable to avoid severe consequences
later on. Therefore, the price drops
should be thought of as a constructive
development. Then, too, the strong
supports of our prosperity are still
essentially intact.

We still have a large unsatisfied
need for many types of products; we
also have the wherewithal to continue
buying at boom levels. There can be
no question that we are still con
fronted with the housing shortage.
Despite the considerable volume of
residential construction during 1947,
the shortage of residential space does
not seem to have been reduced notice
ably. In fact, it may be that the num
ber of added residential units has not
kept pace during the past year with
the number of added family units.
There has been no sustained period of
active building since the late 1920’s.
The accumulated demand for housing
since that time calls for a considerably
longer period of active building than
we have yet had since the end of the
war.

sources to continue buying at boom
levels. Attention has frequently been
called to the high levels of money in
circulation and of bank deposits. Not
so well-known is the fact that large
volumes of savings are being made.
Personal savings have been running at
a rate of approximately $12 billion a
year, which is extremely high when
compared with the prewar rate when
annual savings of $5 billion were large.
The current high rate of savings in
dicates the possibility of a level of
expenditures even higher than at pres
ent if the people of the country should
so determine. Credit conditions also
suggest the continuation of high level
expenditures. Despite the rapid in
crease of bank loans during the last
two years, strain on the supply of
credit has not developed. In fact, the

Automobile Demand

banking position is such that addi
tional credit could be extended for
both business use and consumer ex
penditure. The expansibility of spend
ing is further suggested by the low
level of the velocity of turnover of
bank deposits at present compared
with earlier periods of great business
activity and high prices. A greater

Automobiles continue to be one of
the most significant items of consum
ers’ goods in short supply. Automo
bile statisticians believe that it will
require two to three years more for
the stored-up demand for cars to be
filled.
There also appear to be large un
filled demands for miscellaneous prod
ucts which use steel, both consumers’
goods and items of capital equipment.
Despite an operating rate well over 90
per cent in almost every week for
more than a year, and despite some
increase in steel-making capacity, the
steel companies are still unable to
supply fully the needs of their cus
tomers. This situation suggests that
shortages of miscellaneous products us
ing steel will continue. The recent
price strength in the steel industry
points in the same direction.
The country has the financial re

volume of transactions could be fi
nanced without any increase in the
amount of credit extended, provided
the owners of bank deposits would use
their deposits more frequently than
has been the recent practice.

Rational Versus Irrational
I used the word “rationally” above,
suggesting that on a rational basis the
business outlook was for continued
prosperity. But we must recognize
that business conditions are not deter
mined wholly on a rational basis.
There is an element of irrationality,
(Turn to page 32, please)

//T * HE country has the financial resources to continue buying at boom levels. Attention has frequently been called
I to the high levels of money in circulation and of hank deposits. Not so well known is the fact that large volumes
of savings are being made. Personal savings have been running at a rate of approximately $12 billion a year, which
is extremely high when compared with the prewar rate when annual savings of $5 billion were large. The current
high rate of savings indicates the possibility of a level of expenditures even higher than at present if the people of
the country should so determine. Credit conditions also suggest the continuation of high level expenditures. Despite
the rapid increase of bank loans during the last two years, strain on the supply of credit has not developed.”
N o r t h w e s t e r n B a n k e r, J u n e , 1948

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J oin t Convention—
N orth anti South Italiota A ssociation s
Combined Meeting Held Under Auspices of
Twin City Clearing House Association
The golf tournament will start at
10 o’clock Friday morning at the Mid
land Hills Golf Course, and continue
throughout the day, although it is sug
gested that participants start their
rounds as early as possible. The Stag
Smoker will start at the Hotel Nicollet
at 7:30 that evening, followed by a
stage show, and a buffet supper at 10
o’clock.
On the convention committees of
Twin City bankers, the general com
mittee is headed jointly by L. O. Olson,
Midland National Bank, Minneapolis,
and Elmer Volkenant, First National
Bank, St. Paul. Chairmen of the spe
cial convention committees are as fol
lows:
Banquet—L. L. Leider, First Nation
al Bank, St. Paul; Hotel Reservations
—A. F. Junge, Northwestern National
Bank, Minneapolis; Golf — George
Henry, First National Bank, Minneap
A. E. DAHL
olis; Ladies’ Entertainment-— Charles
President
South Dakota Bankers Association
Cochran, First National Bank, Minne
apolis; Registration—E. W. Engstrom,
ULMINATION of plans which Midland National Bank, Minneapolis;
have been in the making for Smoker—L. P. Gisvold, Northwestern
several years will be realized National Bank, Minneapolis; Sympo
this month when members of the sium—Allyn Brown, American Nation
North Dakota Bankers Association and al Bank, St. Paul; and Transportation
the South Dakota Bankers Association —Lloyd Leider, First National Bank,
come to the Twin Cities of Minneap St. Paul.
olis and St. Paul to hold their annual
The program for the general con
meetings on Friday and Saturday, vention sessions reads as follows:
June 11th and 12th. The convention
First General Session
will be held under the auspices of the
Saturday Morning, June 12th
Twin City Clearing House Association.
Main Ballroom—Hotel Nicollet
Headquarters and registration for 10:30 Call to Order—A. E. Dahl, Rap
the meeting will be at the Hotel Nicol
id City, president, South Dakota
let in Minneapolis, and unless other
Bankers Association, and presi
wise indicated, convention sessions
dent, Rapid City National Bank,
will be held in the main ballroom of
presiding.
that hotel, as well as the Stag Party 10:35 Address of Welcome—John C.
on the evening of Friday, June 11th.
Carlander, president, S t a t e
On Saturday evening the scene will
Bank of Faribault, Minnesota.
shift to the St. Paul Hotel, in St. Paul, 10:45 Response.
for the social hour and the banquet, 10:50 Address—“ Machine Operation,”
to be followed by dancing.
Fred Prentice, Burroughs Add
ing Machine Company.
Registration will start at 8:00 a. m.,
11:25
Address
— Evan Woollen, Jr.,
Friday, the 11th, on the mezzanine
Indianapolis; Indiana, vice pres
floor of the Hotel Nicollet, continuing
ident, American Bankers Asso
through that day, and again on Satur
ciation.
day. There will be a registration fee
12:00 Announcements and adjourn
of $5 per person. All social functions
ment of First General Session.
will be informal, and for the most part
Second
General Session
the convention badge will admit the
Saturday Afternoon, June 12th
wearer to all entertainment and social
Main Ballroom, Nicollet Hotel
events.

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F. A. F O LEY
President
North Dakota Bankers Association

1:45 Call to Order—F. A. Foley,
president, North Dakota Bank
ers Association; vice president,
Rolette County Bank, Rolla,
North Dakota, presiding.
1:50 Address.
2:35 Address—Dr. George P. Conger,
head of Philosophy Depart
ment, University of Minnesota.
3:15 “World Situation at Home and
Abroad”—Alex Dreier, Com
mentator
3:45 Address — Robert Li ndqui st,
President, Financial Public Re
lations Association, Vice Presi
dent, LaSalle National Bank,
Chicago.
Announcements and final ad
journment.

Saturday Evening, June 12th
5:15-6:30 Symposium — Cassino, Ho
tel St. Paul, St. Paul, Continen
tal Ballroom.
6:45-8:45 Banquet ( admi s s i on by
ticket only).
Address — Gordon Volkenant,
Minneapolis Honeywell C o m
pany.
9:00-12:00 Dance — Continental Ball
room, St. Paul Hotel, St. Paul.
All social features will be informal.
Busses will leave the Nicollet Hotel
beginning at 4:30 p. m. Return busses
leave for Minneapolis at midnight.
(Turn to page 55, please)
N o r t h w e s t e r n B a n k e r, J u n e , 1948

The
M in n esota t'onvention
Wednesday and Thursday, June 16 and 17—
Headquarters at the Hotel Nicollet

urer, Guy S. Bacon, president Empire
State Bank, Cottonwood.

JOHN CARLAN DER
President
Minnesota Bankers Association

ROM the first teeoff to the last
strains of “Goodnight Ladies,” the
Minnesota Bankers Association’s
annual convention in Minneapolis this
month promises to live up to the tradi
tion of highly informational, goodfellowship conventions that have been
so popular in past years.

The convention opens the morning
of Wednesday, June 16th, and con
tinues through the evening of Thurs
day, June 17th, with Hotel Nicollet as
headquarters. Officers of the Minne
sota Association have been bending
every effort to present a well rounded
out speaking program to the member
ship during the formal part of the
meeting. Minneapolis bankers on the
various committees planning for the
convention have come up with an
other fine slate of entertainment for
bankers and their wives.
Election of new officers for the com
ing year will take place Thursday
morning. Present officers of the Asso
ciation are president, John Carlander,
president, State Bank of Faribault;
vice president, M. O. Grangaard, vice
president, First National Bank, Min
neapolis; treasurer, C. E. Cadwell,
treasurer, First National Bank, Farm
ington; and secretary, Robert E. Pye,
Association headquarters in Minneapolsi.

Nominations
At its recent meeting, the conven
tion nominating committee proposed
the following three men for election as
Association officers at the convention:
President, Mr. Grangaard; vice presi
dent, A. N. Welle, vice president, First
National Bank, Bemidji; and Treas
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Nominated for the council of ad
ministration are: Wallace L. Boss,
vice president, First National Bank,
St. Paul; Frank L. Hartmann, presi
dent, American National Bank, Little
Falls; and Leonard Machart, vice
president, First National Bank, Pine
City. The fourth new member of the
council elected each year customarily
is the retiring president.
Convention activities will begin
with golf at 9 o’clock Wednesday
morning, June 16th, at the Golden Val
ley Country Club. Golf playing will
continue through the day. Registra
tion at the Nicollet will open at 12
noon.
A buffet dinner will be served in the
main ballroom of the Nicollet Hotel
at 6:30 p. m., followed by the usual
presentation of golf prizes, a show and
other entertainment.
This smoker
has always been one of the convention
high spots and needs no introduction
to veteran bankers. This year, how
ever, the committee has added some
thing that still remains Top Secret on
the entertainment agenda until the
night of the smoker.

Ladies Entertainment
The ladies will have special enter
tainment the night of the men’s
smoker. Genevieve Nevin of North
west Bancorporation is chairman of
the ladies entertainment committee.
Business sessions will begin Thurs
day morning, June 17th, at 9:30 and
continue through the day with time
out at noon for lunch. No special
luncheon has been planned for this
day. Retiring President John Car
lander will deliver the president’s an
nual address. Two speakers have been
arranged for the morning program
and annual elections will follow im
mediately thereafter.
Three top-notch speakers have been
scheduled for the afternoon meeting.
After these addresses there will be a
social hour followed by the annual
banquet in the main ballroom. Clay
ton Rand of Gulfport, Mississippi,

will be the banquet speaker, giving
bankers some serious thoughts with
thq right amount of humor inter
spersed through his talk.
After the banquet is over there will
be dancing until midnight.
Miss Nevin has arranged a special
luncheon and program on Thursday,
June 17th, for all ladies attending the
convention. Among others at this
luncheon will be Mrs. Virginia Safford, columnist, who will for the first
time give a talk on her recent trip
around the world.

Committee Members
All possible advance arrangements
have been made by the convention
committees and the following are those
who have devoted a great deal of time
and effort towards the planning of this
annual meeting:
General Committee—Chairman, D.
E. Crouley, vice president, Northwest
ern National Bank; M. O. Grangaard,
vice president, First National Bank; L.
O. Olson, vice president, Midland Na
tional Bank; and C. C. Rieger, vice
president, Marquette National Bank.
Entertainment Committee — Chair
man, L. P. Gisvold, assistant vice
president, Northwestern Nat i onal
Bank; J. M. Downes, assistant cash
ier, First National Bank; George
Coonrod, assistant vice president, Mar
quette National Bank; and C. C. Som
mer, assistant vice president, Midland
National Bank.
Banquet Committee—Chairman, J.
J. Maloney, assistant vice president,
First National Bank; A. W. Gray, vice
president, Midland National Bank;
Otto Preus, Marquette National Bank;
and A. F. Junge, assistant cashier,
Northwestern National Bank.
Golf Committee—Chairman, George
Henry, assistant cashier, First Na
tional Bank; K. M. Barnett, assistant
cashier, Northwestern National Bank;
R. B. Harrison, assistant vice presidei, Marquette National Bank; and
Silas Olson, Midland National Bank.
Registration Committee—Chairman,
E. W. Engstrom, assistant cashier,
Midland National Bank; and Z. (Pat)
Pelland, Federal Reserve Bank.

General Com m ittee
F o r the M in n esota
H ankers Convention
Chairman
D. E. CROULEY
Northwestern National Bank
Minneapolis

C. C. RIEGER
Marquette National Bank
M inneapolis

Bonds to Farmers
The Security Loan Drive for the
sale of United States Savings Bonds
offers a splendid opportunity for coun
try bankers to help farmers and help
their communities, according to A. L.
M. Wiggins, Under Secretary of the
Treasury, and former president of the
American Bankers Association.
In a letter to H. Frederick Hagemann. Jr., chairman of the A.B.A.
Committee on Treasury Savings Bonds,
Under Secretary Wiggins suggested
that the 3,500 county key bankers who
represent organized banking in every
rural county of the United States be
enlisted in a campaign to promote the
building of farm financial reserves in
United States Savings Bonds.

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M. O. GRANGAARD
First National Bank
M inneapolis

L. O. OLSON
Midland National Bank
Minneapolis

“As a former country banker,” Un
der Secretary Wiggins writes, “ I know
that bankers have many contacts with
farmers, both individually and in
groups, and that practically every
county has a county key banker who
serves as liaison between the banks
and the farmers. I know from per
sonal experience that farm people need
to have their financial reserves in the
safest possible form where they will
be readily available. United States
Savings Bonds meet these qualifica
tions.”

cf the American National Bank and
Trust Company of Chicago.

Employe Manual
“Your Job With American National,”
an illustrated employe manual, has
been distributed to the 500 employes

The booklet, which is illustrated
with action photographs taken in the
bank, gives a brief history of the bank,
describes its functions and services,
explains personnel policies and em
ploye benefit programs, and discusses
customer relations and new business.
In its concluding chapter, the book
let points out that the customer is
the real boss of everyone engaged in
banking.
In dealing with the customer, the
booklet declares, it is the employes’
responsibility to “please him, serve
him well, and show him that we ap
preciate his business.”
N o r t h w e s t e r n B a n k e r, J u n e , 1948

News and Views
OF THE BANKING WORLD
By C L IF F O R D

BAXTER JACKSON, chairman
of the Chemical Bank and
♦ Trust Company, announces the
appointment of the following to the of
ficial staff of the bank, all of whom
were formerly officers of the Continen
tal Bank and Trust Co.
In the Domestic Banking Depart
ment as vice presidents: Charles S.

Parker, Jr., Mark B. Peck, Herbert M.
Prior and John T. Seam. As assist
ant vice presidents: Paul A. Albus,
Harold Brummer, Daniel A. Finlayson, Jr., John F. Hughes and James
J. Mead. As assistant secretary: Rob
ert J. Iiockton.

In the Foreign Department as vice
president: Einar Hammer. As as
sistant vice president: Harold H. Hollingshead. As assistant managers:
Otto Bruggeman, David Sime and
Dominic A. Suplina.

In the Corporate Trust Department
as vice president: Harry C. Thompson.
At the 30 Broad Street office as vice
presidents: Thomas F. Bennett and
Ferdinand M. Bissell. As assistant
vice presidents: Percy J. Hebard, Peter
C. Newell and Arthur H. Queren. As
assistant secretary: Russell L. Hauser.
As assistant treasurers: M. J. G. Logan
and John W. Marx. As assistant comp
troller: Walter E. Sparling, and as
assistant personnel director: Roger
Hornby.

Bennett Cerf, writing in the Satur
day Review of Literature, says, “Ac
cording to legend, the word ‘Dixie’
stems from the issuance of a Louisiana
ten-dollar banknote, a ‘dix,’ issued by
the old Citizens Bank on Royal Street.
Ten-dollar hills circulated freely in
those lush days, and awed visitors re
ferred to the town as the ‘land of dix
ies.’ ”
Reuben A. Lewis, Jr., publisher of

“Finance,” died last month in Chicago
at the age of 52, and was buried in his
home town of Birmingham, Alabama.
Mr. Lewis purchased the former
“Chicago Banker” in 1941 and changed
the name to “Finance.”
In June 1946, Mr. Lewis fell from
his living room on the 6th floor of the
Maryland Hotel and fractured both
legs and arms and also suffered in
ternal injuries, but in spite of this, he
carried on his duties as editor, mainly
by the use of the long distance tele
phone.
Surviving are his widow, the forN o r t h w e s t e r n B a n k e r, J u n e , 1948

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

DE PUY, P u b lish er

mer Catherine Mohan Richardson; a
daughter, Barbara; two sons, Reuben
Alexander, 3rd, and Mitchell Ives,
children by a former marriage, and
his mother, Martha Louise, of Dal
las, Texas.

“ I am not an enemy of any nation. I
am not against any race or nation. It
is against tyranny that we take our
stand. This tyranny presents itself
in various forms but whatever liveries
it wears, it is always the same and
demands that we oppose it.

Preston E. Reed, executive vice
president of the Financial Public Re
lations Association, is making elab
orate plans for the “School of Finan
cial Public Relations” to be held Au
gust 16th to 28th at Northwestern
University.

“We find ourselves in harmony with
the government of the United States
of America whose great services to
mankind in this period of tension and
strain demand our heartfelt gratitude
and our undying support.”

The case history method will be in
troduced in 1 hour sessions for 5 days
in the second week of the school.
The main subjects which will be dis
cussed are newspaper and magazine
advertising, public relations, customer
relations, and employe relations.

In case you are not sure who the
next president of the United States
will be, here is the i n f o r ma t i o n
straight from President Harry S. Tru
man, who told a Democratic rally in
Washington recently that “ I want to

One prominent business man has
this sign displayed over his desk,
“When two men invariably agree on
all matters, one of them is unneces
sary.”
Ernest Baughman, economist for
the Federal Reserve Bank of Chicago,
believes that most farm sales are now
being made to farmers. In the last
quarter of 1947, he points out that 45
per cent of the land sales were to
owners adding to their acreage, and 13
per cent to city people looking for in
vestment or a hedge against inflation,
3 per cent to speculators, 5 per cent
to war veterans and 34 per cent to
tenant farmers.
Winston Churchill, speaking re
cently about a united Europe, said,

say to you that during the next four
years there will he a Democrat in the
White House, and you are looking at
him.”

Sorry to disappoint you, Harry, but
we don’t think you will even be sit
ting on your balcony after the Novem
ber election.
The U. S. Savings Bond sales have

just about kept even with the bond re
demptions, so thus far the sale of gov
ernment securities has not been a very
effective weapon against inflation.
Marriner Eceles, former chairman
of the Federal Reserve Board of 12
years, is losing his influence since
Thomas B. McCabe has become chair
man and some authorities believe that
it will not be very surprising if Mr.
Eccles resigns before the end of 1948.
Incidentally, there are many bank
ers who would welcome that good
news.
Juan Peron, president of Argentina,
expects to realize about 1 billion dol
lars for his country from purchases to
be made by other countries with Mar
shall Plan dollars.

Thus one of the great collaborators
with the Nazis hopes to get a very
nice slice of our good American dol
lars.
John S. Coleman, president of the
Burroughs Adding Machine Company,
reported net earnings for the first
quarter of 1948 as $2,731,000. This com
pares with $1,006,587 for the same pe
riod last year.
(Turn to page 52, please)

M tanhws Vint K n o w

W illiam A .
J ícllon n ell
President, First National Bank
in St. Louis
“ This is a time which calls for caution”

IRECTORS of the First National
Bank in St. Louis made a wise
decision recently when they selected
W illiam A. McDonnell as president
of tliat institution. Mr. McDonnell’s
energies seem to be boundless, a direct
complement to his many fine talents
which have carried him from a law
yer’s office in Little Rock, Arkansas,
to the presidential chair of the coun
try’s 35th largest bank whose deposits
are in excess of $400,000,000. He be
came associated with banking 21 years
ago. Through the past two decades,
he has acquired excellent experience
in many bank positions. His views on
current banking problems are highly
respected and are summed up in his
following statement to the North
western Banker:

“ This is a time which calls for cau
tion. W e may he sure that this boom
is not going to last forever. W e have
enjoyed a period of eight years in
which it has been almost impossible
to make a bad loan. During six of
these years, our deposits have ex
panded very rapidly due to deficit fi

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

nancing rather than any effort on our
part. During this period the rising
tides of inflation have floated many
an old wreck, thus enabling us to
enjoy large recoveries of old assets
which were charged off in the thirties.
It has in fact been a period of almost
riskless banking. W e have had a pic
nic in which we couldn’t lose.
“ In my opinion, the picnic is just
about over. W e are back in the busi
ness of taking risks— of reaping re
wards for good judgment and suffer
ing the penalties for bad.
“ I think that now is a good time
for us to become highly selective in
our credits— not only from the stand
point of cooperating in the A B A anti
inflation program by restricting loans
to those for essential productive pur
poses— but also selective in the qual
ity of loans for any purpose, however
worthy. These are good times to be
building up reserves for losses which
are sure to show up somewhere down
the line. In this respect, the recent
ruling of the Treasury Department
which permits the setting up of re

serves for losses on the basis of a
twenty-year experience constitutes a
great break for banking. The plan,
of course, is one which every bank
should adopt.
“ The banks of the nation are today
in a very sti'ong condition. The great
est service we can render this country
during these uncertain times is to
keep them so.”
Mr. McDonnell’s business career be
gan in 1919 in Little Rock, after he
had returned from W orld War I in
Europe where he was a Captain and
Operations Officer of the 6th Field
Artillery Brigade. He practiced law
until 1927 when lie became vice presi
dent of the Federal Bank and Trust
Company of Little Rock. In 1928, he
was elected to a similar position with
the Bankers Trust Company in the
same city, remaining with that bank
until 1933 when he was named execu
tive vice president of the Commer
cial National Bank in Little Rock.
Through 1944, he was also a director
of the Little Rock Branch of the St.

(Turn to page 71, please)
N o r t h w e s t e r n B a n k e r, J u n e , 1948

LEG A L

M u st a Trustee M u h e A u
A ccounting for H is A ctivities?
Q . Cullenbine, a banker, died leav
ing a will which created a trust and
which named one of his associates as
trustee. The instrument contained a
provision to the effect that the trus
tee need not account to the benefici
aries for his activities in handling the
trust. Prior to the termination of the
trust the trustee defrauded the estate
of certain sums. Could the benefici
aries, generally speaking, require an
accounting in such circumstances even
though such would be contrary to the
provisions of the will?
Yes. The generally prevailing view
is that a provision purporting to re
lieve a trustee of all duty to account
whatsoever is without effect as against
allegations and evidence of fraud, bad
faith, or other deliberate wrongdoing.
At the most, such a provision operates
only in the protection of honest trus
tees. Iowa, Kansas, Mississippi, Mis
souri, Minnesota, Nebraska, Ohio,
Texas and the federal courts are
among the jurisdictions so holding.
G ). Blake was trustee of a substantial
estate in Minnesota. Over the years
he personally acquired some of its
assets without the knowledge of the
beneficiaries. He did, however, make
annual reports which received ap
propriate court approval. No ques
tions were raised or appeals taken
from such approvals. Nothing Avas
said in those reports about his self
dealing. When he went to make final
settlement of his accounts the bene
ficiaries sought to recover from him
for their losses on account of his per
sonal purchases of estate assets. Did
the facts that the annual reports had
been duly approved by the court having jurisdiction OA^er the estate and
nothing further had been done about
them prevent a recoA^ery?

No. In a recent decision involving a
similar situation the Minnesota Su
preme Court held that the approval of
the annual accounts by the court hav
ing jurisdiction over the estate did not
prevent the beneficiaries from recover
ing from the trustee for self dealing.
In so holding the Court pointed otlt
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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

This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT

that the matter of self dealing was not
involved in the annual accounting pro
ceedings, particularly since they were
silent as to that feature of the trustee’s
conduct.

Q . Johnson died leaAing a aatill
Avhich provided that Beckman, his life
long banker friend, should be the ex
ecutor of his estate. Johnson had cer
tain assets at the time of his death
consisting of shares of stock which
Avere of a speculative nature. Beck
man did not sell them immediately
and they declined in value. He did,
hoAvever, sell them within a reason
able time. Could Beckman, as an ordi
nary proposition, be held liable for the
loss?
No. It is well settled that an ex
ecutor or an administrator cannot
ordinarily be held responsible for a
loss due to the decline in market value
of shares of stock which have come
into his hands as assets of the estate
merely because he does not make an
immediate sale thereof, even assuming
that a sale is proper or that, because
of the nature of the security, a sale
must eventually be made. He is al
lowed a reasonable time within which
to sell and is not to be held liable for
loss unless he retained the securities
beyond a reasonable time for their
sale.

Q . Dyer occupied a North Dakota
farm as a tenant of Buckley. Some
years before Buckley had verbally
rented the property to him for a year
at rental of one-fourth of the crops.
There had been no specific renewal of
the lease but Dyer and Buckley had
continued on as though there had
been. Buckley failed to pay the taxes
and the property Avas sold at a tax
sale to Aldrich. As an incident there
to the county auditor did not notify
Dyer of the expiration of the period of

redemption. The statute then applic
able provided that such notices should
be given to various persons and listed
the person in possession of the lan d
involved as one of them. Was Ald
rich’s tax title faulty because Dyer
Avas not notified?

Yes. The North Dakota Supreme
Court so held in a recent decision.
Dyer and Buckley, by their course of
dealings, were presumed to have re
newed the hiring of the farm on the
same terms and for the same time each
year and Dyer, therefore, was legally
in possession of the premises as the
redemption period expired. He was
not a mere licensee. Since the statute
required that notice of the expiration
of the time to redeem should be given
to the person in possession and such
was not done in this instance, Aldrich
did not receive a good title through
his tax sale purchase.

Q . Tu tbeir dealings with negotiable
instruments banks are sometimes con
fronted Avith situations where a check
or promissory note will come to them
Avith material interlineations made
thereon which are obvious and are
in a different handwriting and Avith
different ink than the rest of the in
strument. If such a check or note is
paid or taken may such interlineations
prevent a bank from successfully as
serting that it is a holder in due
course?
Yes. The majority of the decisions
support the broad proposition that if
a reasonable inspection of a negotiable
instrument would disclose a material
alteration indicating that it was prob
ably made by someone other than the
original draftsman, it is not regular
upon its face, and one who takes it in
that condition has not the rights of a
holder in due course, as against evi
dence that the alteration was made
after it left the maker’s hands and
without his consent.

Q . A Nebraska bank Avas asked to
make a loan secured by a mortgage on
certain real estate in a city there. The
property had been acquired at a delin(Turn to page 29, please)

STRAIGHT
DISTANCE

LI NE

BETWEEN

THE
TWO

SHORTEST
POINTS

OVERNIGHT
•

C O LLEC TIO N
a n d
TRAN SIT
SER V IC E
.

•

• W e are strateg ically lo ca ted to give you the quickest c o lle c
tion and transit service.
• To insure the best results flowing from our central location
we send your items by air or rail mail, w hichever is
faster.
• To save time and money, we route all collections and transit
item s d irect, w herever possible.

i i i: l I '

The Omaha
National Bank
Member Fed era l D eposit Insurance Corporation

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

FARNAM

SEVENTEENTH

N o r t h w e s t e r n B a n k e r, J u n e , 1948

"R o ll

oí

HonorRanks

It is an honor to be listed among the H ON OR RO LL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital
The banks listed on this page are some of the outstanding “Honor Roll” Banks in the
N O R T H W E S T E R N B A N K E R territory. By careful management and sound banking
they have achieved this enviable position.

These banks will be especially glad to handle

any collections, special credit reports or other business in their communities which you
may entrust to them.

Correspondence is invited.

Minnesota
TOW N

BANK

Aitkin ...................................... The First National Bank...................
Appleton.................................... Northwestern State Bank............. .......
Aurora....................................... State Bank of Aurora..........................
Austin........................................ Austin State Bank............... ....................
Belgrade. ............. ........... ........North American State Bank................
Belle Plaine............................. State Bank of Belle P la in e .................
Blomkest...................................State Bank of Blom kest...........................
Braham........ ............................ First National B a n k ............
..........
Breckenridge...........................Farmers & Merchants State Bank.........
Ceylon...................... ............... State Bank of Ceylon..............................
Clarkfield.................................. Farmers and Merchants State Bank
Cleveland.................................. Peoples State Bank..............................
Clarks Grove______ ________ State Bank of Clarks Grove................
Cyrus.......................................... State Bank of Cyrus............................
Deerwood......... ........................First National Bank...... ....................
Duluth...................... .................. Central State Bank.............
Duluth.........................................City National Bank....... ...........................
Duluth..... ....... ....................... First and American National Bank
Excelsior................................... Minnetonka State B a n k ..........................
Gonvick.......................................Northern State Bank..............................
Grand Meadow.............. .........First State Bank.................................. .....
Green Isle............................... Citizens State Bank____________ _____
G re en b u sh ..............................Greenbush State Bank.......
Hallock........................... ........... Northwestern State Bank ......
Henning-......................................First National Bank................ ............
Hinckley............................... .. .Farm ers and Merchants State Bank
Howard Lake..........................Security State Bank.............
.........
Kent...................... ..................... Kent State Bank................ ............... ......
Kim ball......... ...........
............State Bank of Kimball
Lake Elm o....... ......... .......... State Bank of Lake Elmo ...................
Lake W ilson............................First National Bank.................................
Lamberton.......... ............ ........Farmers & Merchants State Bank___
LeCenter................................... First National Bank................................
Madelia........ .............................. Citizens National Bank..........................
Melrose...................................... Melrose State Bank .............................
Minneapolis........................ ..Midland National Bank............................
Minneapolis........................... Northwestern National Bank........
Morristown............................ State Bank of Morristown..........
New Richland........................ State Bank of New Richland..................
New U lm .................................. State Bank of New U lm ______________
Nicollet...................................... Nicollet State B a n k ....................................
Osseo................................. ..........Farmers State Bank....................... .......
Pequot Lakes..........................Farmers State Bank___________ ___ __
Plainview..................................Peoples State Bank....... ...........................
St. Cloud....... .......................... American National Bank_______ ____ _
St. Joseph............. ......... .......... First State Bank............... ............... .....
St. Paul......... .................... ..Em pire N atl. Bank and Trust Co___
South St. Paul....................... Stock Yards National Bank.................
Silver Lake............................. Citizens State Bank___ ____ __________
Stewart.......................................First State Bank of Stewart.................
Sturgeon Lake....................... Sturgeon Lake State Bank....................
Thief River F alls..................Northern State Bank.......................... .
W adena......................................First National Bank......
........
W anam ingo....................... .
Security State Bank____ ________
W ilm ont.....................................First National Bank....... ...........................
Winona ...................... ....... Winona National and Savings Bank.
Woodlake.................................. State Bank of W oodlake.........................
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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

O F F IC E R

C A P IT A L

5 0 ,0 0 0
T . R . H a s s m a n ____ ___ ______ ............ $
2 5 ,0 0 0
A . 0 . K r e b s .................................. ............
2 5 ,0 0 0
J . A . A s p i e ..................................... ............
1 0 0 ,0 0 0
.A . H . H a a k e n s o n . . ....... .............
5 0 ,0 0 0
.H . G . B o r g e r d i n g ....................
3 0 ,0 0 0
.M . M . G a f f n e y ............................. ............
1 0 ,0 0 0
.J a m e s M a t s o n .......................... _____
O s c a r A . O l s o n , J r . . , , ............. ............
5 0 ,0 0 0
.D u n c a n B a r r .............................
6 0 ,0 0 0
C . E . C h a m p i n e .................... . ............
2 5 ,0 0 0
C . C . E l k j e r .................................. ............
2 5 ,0 0 0
C . E . M e i s l a h n ..........................
2 5 ,0 0 0
A . J . L a g e s o n ............................. ............
2 5 ,0 0 0
. 0 . E . B j o r g a a r d - . - ........... ...... ............
2 0 ,0 0 0
.R . 0 . L e e .............................. ........... ............
5 0 ,0 0 0
L e s t e r J o h n s o n .................... . ............
2 5 ,0 0 0
R . H . M a g i e _____________ _____ ..........
6 0 0 ,0 0 0
W i l l i s D . W y a r d .................... ............ 2 ,0 0 0 ,0 0 0
0 . W . L u n d s t e n ............ ............. ............
5 0 ,0 0 0
5 0 ,0 0 0
.G e o . A . B i e t o ........... .............. ............
G . N . R e p p e .................................. ............
2 5 ,0 0 0
J . F . M u l l e n ..................................
1 0 ,0 0 0
I. S . F o l l a n d .................................. ............
2 5 ,0 0 0
A . L . W i k h o l m ............................. ............
8 0 ,0 0 0
,G . C . C l e m e n t ............................. ............
3 5 ,0 0 0
R . A . N e l s o n ............................... ............
2 5 ,0 0 0
. H . W . R e i t e r ............................... ............
2 5 ,0 0 0
. 0 . L . O l s o n ..................................... ............
1 0 ,0 0 0
E . A . E r i c k s o n ......................... ............
2 5 ,0 0 0
,E . A . B e u t e l . . .................. ............ ............
2 5 ,0 0 0
H . R . L e x v o l d ............................. ............
2 5 ,0 0 0
A . P . S c h a a r ............................... ............
2 5 ,0 0 0
C h a r l e s C . T r a x l e r . . . . ............ ............
4 5 ,0 0 0
J . G . O l s o n .................................... ............
5 0 ,0 0 0
H . C . S t a l b o e r g e r ....................
4 0 ,0 0 0
A r n u l f U e l a n d .......................... ______ 1 ,0 0 0 ,0 0 0
J o s e p h F . R i n g l a n d ............ ............ 5 ,0 0 0 ,0 0 0
H a r l a n P y e __________ ____ ___ ............
2 0 ,0 0 0
G e o r g e H o v i g ............................. ............
2 5 ,0 0 0
4 0 ,0 0 0
E d w a r d A . S t o l l ....................... ______
E . C . J o h a n n e s .................... .
4 0 ,0 0 0
1 >. J . M u r p h v ............... ................ .............
5 0 ,0 0 0
2 5 ,0 0 0
J . C . N e l s o n .................................. ............
M . T . D u e r r e ............................... ............
2 5 ,0 0 0
G e o r g e J . M e i n z ............... .......
1 0 0 ,0 0 0
J o h n S t o c k ........................... ...... ..........
2 5 ,0 0 0
H . W m . B l a k e .. ................ ......
5 0 0 ,0 0 0
A . T . L a r s o n . . . .......................... ............
2 5 0 ,0 0 0
F . J . B u r i c h .................................. ............
2 5 ,0 0 0
L e s t e r L i p k e ............................... ............
2 5 ,0 0 0
2 0 ,0 0 0
K e n n e t h G a y ............................. ............
G e o r g e W . W e r s t l e i n ............ ............
5 0 ,0 0 0
11. E . P a r k e r ............................... ............
5 0 ,0 0 0
E . E . S e v a r e i d ............................. ...........
4 0 ,0 0 0
E . L . M e y e r .................................. ............
2 5 ,0 0 0
S . J . K r y z .s k o ............................... ............
2 0 0 ,0 0 0
H . G . H a m r e ............................... ............
2 5 ,0 0 0

SURPLUS
P R O F IT S
$

1 4 8 ,0 0 0
6 8 ,0 0 0
4 8 ,1 2 7
1 5 3 ,0 0 0
7 4 ,0 0 0
1 2 0 ,0 0 0
2 5 ,0 0 0
6 6 ,0 0 0
6 0 ,0 0 0
5 5 ,0 0 0
5 8 ,0 0 0
2 5 ,0 0 0
4 5 ,0 0 0
2 8 ,0 0 0
9 3 ,4 1 8
5 2 ,8 7 8
6 4 3 ,0 0 0
3 ,0 9 3 ,2 0 4
7 4 ,4 8 0
1 4 2 ,9 7 3
4 3 ,0 0 0
1 0 7 ,6 3 4
5 8 ,0 0 0
9 4 ,0 0 0
5 2 ,0 0 0
3 5 ,0 0 0
3 7 ,0 0 0
2 2 ,1 2 6
3 3 ,0 0 0
3 1 ,0 0 0
5 1 ,0 0 0
9 4 ,0 0 0
5 7 ,0 0 0
6 1 ,0 0 0
5 9 ,2 3 2
1 ,7 9 8 ,0 0 0
1 2 ,0 2 5 ,0 0 0
2 1 ,0 0 0
9 2 ,0 0 0
2 5 2 ,7 1 7
6 3 ,0 0 0
6 8 ,0 0 0
4 3 ,0 0 0
8 4 ,0 0 0
1 9 1 ,0 0 0
3 0 ,8 2 2
7 8 3 ,0 0 0
5 8 4 ,0 0 0
4 5 ,0 0 0
2 7 ,0 0 0
2 4 ,0 0 0
1 2 2 ,5 4 9
2 0 0 ,8 5 2
5 7 ,0 0 0
3 8 ,8 0 0
7 1 7 ,0 0 0
3 1 ,0 0 0

29
Advertisement

” Hoíl

triH o n o r” Hanks

It is an honor to be listed among the H ON OR RO LL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital
The banks listed on this page are some of the outstanding "H onor Roll Banks in the
N O R T H W E S T E R N B A N K E R territory. B y careful management and sound banking
they have achieved this enviable position.

These banks will be especially glad to handle

any collections, special credit reports or other business in their communities which you
may entrust to them.

Correspondence is invited.

N orth
TOW N
Ash ley..............
Carrington___
Crosby............. .
Devils Lake...
Dickinson.......
Fargo.................
Golva.................
G rafton.............
H atton........ .....
H azelton.........
Lankin........ .....
Lidgerwood.....
Minnewaukan
New Leipzig..
Souris...............
Steele................
Sterling...........
Streeter...........

BANK

O
O F F IC E R

McIntosh County Bank...............................
Foster County State Bank........ ...........
Farmers State Bank........ ......................
Ramsey County National Bank..............
The First National Bank...........
.......
First National Bank
.... ........................
First State Bank..........................................
Walsh County State Bank ........
Farmers and Merchants National Bank
Bank of Hazelton..............
..............
Citizens State Bank.......................................
First National Bank.... ......
Farmers State Bank______ __ _________
First State Bank.............. .......... ......... .......
State Bank of Souris....................................
Bank of Steele................................. ....
State Bank of Burleigh County................
State Bank of Streeter.... ...........................

G . H . 1l e r n e t t ......................
.M a r k A t w o o d ..........
E . G . H a n s o n ............... ..........

...........

T . A . T o l l e f s o n ................... ..................
_G. W . J e n s o n ........... ............. __________
.J . L . T s c h i t a ............................ ...................
. W . J . J o h n s o n ...................... ..............
H . M . N a s h .......................
.B e n M e i e r .............................. __________
R . F . V o r a c h e k ................... ...................
.D a n S . R i l e y ........................ ...................
V . A . H e i b e r g ...................... ..............
E . P . D a n i e l s ........................ ...................
,C . H . F r e e m a n ............ ......... ...................
,E . A . W e n t z ............................ ...................
,H . E . W i l d f a n g . ................ ...................
.7 . L . G r a f ..................................

C A P IT A L

SURPLUS
P R O F IT S

3 5 ,0 0 0
5 0 ,0 0 0
5 0 ,0 0 0
1 0 0 ,0 0 0
1 0 0 ,0 0 0
3 5 0 ,0 0 0
2 0 ,0 0 0
7 5 ,0 0 0
4 0 ,0 0 0
1 5 ,0 0 0
2 5 ,0 0 0
2 5 ,0 0 0
3 5 ,0 0 0
2 5 ,0 0 0
2 5 ,0 0 0
2 5 ,0 0 0
2 5 ,0 0 0
1 5 ,0 0 0

4 0 ,0 0 0
1 2 5 ,0 0 0
9 0 ,0 0 0
1 5 3 ,1 8 8
3 6 5 ,0 0 0
8 7 6 ,0 0 0
2 8 .0 0 0
1 1 1 ,5 1 9
1 0 4 ,5 6 1
3 3 ,0 0 0
8 5 ,0 0 0
4 2 ,0 0 0
5 0 ,0 0 0
2 7 ,0 0 0
4 9 ,0 0 0
6 6 .0 0 0
4 5 ,0 0 0
2 4 ,0 0 0

South D a k o ta
TOW N
Arlington__
Arm our........
Castlewood..
Centerville..
Delmont.......
Doland..........
Highmore....
Langford.....
Menno...........
Pierpont......
Pierre............
Pierre............
Roscoe..........
Rosholt........
Sioux Falls
Toronto........
Watertown..
W ilm o t_____
Yankton___

BANK

Citizens State Bank........................................ ..........C. P. Stanwood.........
.First National Bank........
........ ................ ........M. G. W inter...............
Citizens State Bank...................................................C. N. Halvorson.......
Bank of Centerville............................ ......................f. N. Thomson.............
Delmont State Bank................................................ F. Litz.............................
Security State Bank
.......................................... M. J. Tw iss..................
First State Bank....................................................... W . W . Swanson.........
Langford State Bank..............................................R. O. W illiam s............
Menno State Bank..................................................... R. H. Sydel..................
First State Bank......... ............................................. J.
A . Anderson........
First National Bank................................................L.
L. Branch..............
Pierre National Bank....... ...................................... ’ ames R. McKnight
First State Bank....................................................... H. J. Schipke..............
Rosholt Community Bank.....................................L. F. Waddington. ..
Northwest Security National Bank..................J. Virgil Lowe............
Bank of Toronto........ .................................................C. G. Martinson..... .
First Citizens National Bank ........................... C. H. Lockhart.........
W ilm ot State Bank.................................................. T.
M. Aasland...........
American State Bank..................................... ........H. E. Edmunds.........

LEGAL QUESTIONS
(Continued from page 26)
quent tax sale in the name of the city
attorney and by him conveyed to the
prospective borrower for a valuable
consideration amounting to its true
worth. The city attorney had acted
on behalf of the city and the public
records disclosed that the prospective
borrower actually dealt with the mu

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Federal Reserve Bank of St. Louis

O FFIC ER

nicipality in acquiring title. In so
dealing, however, the parties did not
follow the statutes applicable to the
acquisition and sale of property by
a city, which require c o m p e t i t i v e
bidding and are mandatory. Since it
was obvious that the statutes had not
been followed, was the prospective
mortgagor’s title good?

No. The action of the prospective

C A P IT A L

SU R P LU S
PRO FITS

25.000
33.000
25.000
50.000
25.000
25.000
50.000
25.000
25.000
25.000
50.000
50.000
20.000
20,000
500.000
25.000
150.000
25.000
100.000

73.000
50.000
57.000
90.000
57.000
40.000
57,017
37.000
40.000
43,155
59,560
77.000
30.000
76,539
1, 532,965
65.000
223.000
53.000
243.000

mortgagor in paying to the city, and
parting with, an amount equivalent
to the worth of the property did not
relieve the parties from the necessity
of complying with mandatory statu
tory requirements. Even though this
was a point favorable to him in equity,
an equity court cannot set aside and
render for naught the will of the
people expressed in its solemn legis
lative enactments.—The end.
N o r t h w e s t e r n B a n k e r, J u n e , 1948

Women Elect
The Association of Chicago Bank
Women, at its annual meeting last
month, elected the following officers
for the coming year:
President, Miss Helen E. Burke, as
sistant cashier, Lake Shore National
Bank; vice president, Miss Katherine
Holt, secretary to E. E. Brown, chair
man, First National Bank; secretary,
Miss Edna Olund, secretary to George
Boyles, president, Merchants National
Bank, and treasurer, Miss Mary M.
O’Brien, manager, credit department,
Exchange National Bank.
The new president appointed the

following as chairmen of standing
committees:
Membership—Miss Agnes J. Olsen,
assistant cashier, and assistant trust
officer, Cosmopolitan National Bank.
Program—Miss Fern Crabtree, secre
tary to B. G. McCloud, president, First
National Bank. Finance—Miss Eliza
beth Mills, secretary to G. A. Malcolm,
president, Drovers National Bank.

Paul, Minnesota, announces the open
ing of a district office at 1105 First
National Bank Building, Omaha, Ne
braska. The opening of this office is
the latest step in the company’ s pro
gram of expansion. This will enable

Opens Omaha Office
R.
C. Schall, manager of the Field
Warehouse Division of the St. Paul
Terminal Warehouse Company, St.

ELM E R J. O T T E SO N
Heads Warehousing Office

Services for Banks

them to better serve banks and their
customers in Nebraska, South Dakota,
Missouri and Kansas. Mr. Schall
stated the establishment of this office
was necessary to meet the continually
growing demand for warehouse re
ceipts as collateral.
The office will be under the manage
ment of Elmer J. Otteson, who has had
twelve years of extensive warehouse
experience and is well qualified in this
field. Mr. Otteson became associated
with the St. Paul Terminal Warehouse
Company in 1945, having served pre
viously as warehouse examiner for the
War Foods Administration in Wash
ington, D. C.; Buffalo, New York, and
Chicago. In addition, he served eight
een months with the Army Quarter
master Corps in the Canal Zone. Mr.
Otteson is married and is a native of
Cooperstown, North Dakota.

Our booklet, “ Your Correspondent Bank,”
describes the services we offer banks. W e
shall be pleased to send you a copy.

Harris Trust and Savings Bank
Organized as N .W . Harris & Co. 1882 • Incorporated 1907

115 W est Monroe Street, Chicago 90
M em ber Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

Twelve Join Club
At the annual dinner held at New
ark, New Jersey, last month, twelve
new members were admitted to the
Twenty-five Year Club of George La
Monte & Son, safety paper manufac
turers, Nutley, New Jersey. Ninetytwo were in attendance, including
members of the Twenty Year Club.
Each new member was presented
with a handsome watch and a dia
mond-studded membership button by
George V. La Monte, president of the
company.

Named Comptroller
J. C. Thomson, president of Northw e s t e r n Bancorporation, has an
nounced the election of Richard L.
Federman, Minneapolis, as comptroller
of the Bancorporation, effective July
1st. Mr. Federman has been manager
of the Minneapolis office of Peat, Mar
wick, Mitchell & Company, auditors
for the Bancorporation.
Born in Brookville, Indiana, Feder
man attended Brookville schools and
graduated from Wabash College and
Rice Institute. He is a member of
the Minnesota Society for Certified
Public Accountants, the American In
stitute of Accountants, the American
Accounting Association, and treasurer
of the Minneapolis chapter of the
National Association of Cost Account
ants.

FOCAL POINT
for Co-ordinated Regional

Calling on Banks
Ernest J. Hultgren is now traveling
Iowa and Nebraska for the First Na
tional Bank, Chicago, working with
Assistant Vice President Verne Bartling in that territory.
Mr. Hultgren started with the First

Wisconsin's Bank for Banks
This outstanding hank— established
in 1853— serves as Milwaukee de
pository for over 92 per cent of all
the banks in W isconsin!

With unparalleled correspondent “ coverage” of
Wisconsin, the First Wisconsin National Bank
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also the focal point for unique Co-ordinated
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corporations operating branches, sales divisions,
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this area.
Bankers as well as business executives are invited
ERN E ST J. H U LTGREN
Represents First National, Chicago

National in 1933, working in the clear
ings, transit, exchange, signature, and
in-mail departments until 1941, when
he went into the service. Entering
as a private, he was discharged a
major in April, 1946. Returning to
the bank he traveled Indiana and Mich
igan before coming into the Iowa and
Nebraska territory.

lo write for further information.

FIRST WISCONSIN
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common stock, payable June 30th to
shareholders of record as of May 29.

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, J u n e , 1948

New Securities Firm
Cedar Rapids has a new investment
company. It is Figge, Vavra and
Company, and members of the firm
are Reginald B. Figge and John S.
Vavra, both of whom are well known
in Cedar Rapids and Iowa banking
and investment circles.
Offices of the new firm are at 407
Merchants National Bank Building
and they are members of the Chicago
Stock Exchange.
Mr. Figge was with the Guaranty
Bank and Trust Company of Cedar
Rapids for 14 years and helped organ
ize it. He was vice president and
cashier of the bank when he resigned
there recently. He comes from the
well-known Figge banking family, his
father being Fred J. Figge, veteran
banker at Ossian, Iowa, and a brother,
V. O., is president of the Davenport
Bank and Trust Company, Davenport.

Mr. Vavra, who is one of Iowa’s out
standing golf players, has been in the
investment business a number of
years. He was with Ernest Kosek and
Company of Cedar Rapids for 11 years.
He is a graduate of the University of
Chicago, while Mr. Figge graduated
from Creighton University at Omaha.

Annual Convention
Nationally known leaders in the
fields of education and bankng are ap
pearing on the program of the 46th
Annual Convention of the American
Institute of Banking, educational sec
tion of the American Bankers Asso
ciation, held at Buffalo, New York,
June 7th to 11th, inclusive, as an
nounced by Pierre N. Hauser, vice
president of the Institute and chair
man of its convention program com
mittee. Mr. Hauser is vice president

of the First Wisconsin National Bank,
Milwaukee, Wisconsin.
Speakers at the two general sessions
include Kenneth McFarland, superin
tendent of schools, Topeka, Kansas,
who is nationally known as an educa
tional executive; Dr. George W. Crane,
Ph.D., M.D., an outstandng psycholo
gist, author and lecturer; Joseph M.
Dodge, president of the American
Bankers Association, and president of
The Detroit Bank, Detroit, Michigan,
and Harold Stonier, executive man
ager of the A.B.A. Leading bankers
from many parts of the United States
will address the convention during
the five days.
The convention consists of two gen
eral business sessions, one on Monday,
June 7th, and the other on Friday,
June 11th. The intervening time will
be filled with Institute and departmen
tal conferences, the National Public
Speaking Contest for the A. P. Giannini educational endowment prizes,
the National Convention Debate, and
other activities which render conven
tions of the American Institute of
Banking unique.

W ILL BUSINESS INCREASE?

St. Louis has 69 unusually attractive parks covering approxi
mately 3,000 acres. There are also 44 playgrounds for
children. The above scene is in Forest Park, which with an
area of 1,380 acres is one o f th e largest city parks in America.

.any banks find an account in
centrally located St. Louis, both
convenient and useful. St. Louis’
First National” is at your service

(Continued from page 20)
irresponsible emotion, and panicky
reaction involved in the factors which
determine the actual course of busi
ness fluctuations. I would suggest
that the key to the near-term business
outlook may be found in the answer
to the question, “Will the rational or
the irrational attitude predominate in
business decisions during the coming
months?” If the decline in agricul
tural prices generates a wave of fear
among business men and consumers,
severe consequences should be ex
pected.
Although I do not expect our pros
perity to come to an end in the imme
diate future, I do expect that some
time within the next three years we
shall have a substantial business re
cession. I see no way of telling when
such a recession will begin or just
how severe it will be. The reason that
I mention an outside limit of three
years is that hy that time the princi
pal shortages which constitute the ba
sic support of our present prosperity
will have been made up.

As to the severity of the coming
recession, I believe that it need not
be as severe as the 1920-1921 decline,
but that it could be as drastic as the
depression of the early 1930’s. What
does take place will depend on what
business and economic policies are
followed from now on.
Here it is that the opportunities for
leadership exist. One of the bitter
experiences of earlier business cycles
was that inventories in periods of
N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

33
great activity were really more dan
gerous than they looked. I think we
are in one of those periods now where
the apparent soundness of inventories
may be deceptive. I hope you are try

of possible failure and be prepared to
meet them. If we should fail, we
should then face not merely a drastic
economic depression, but also further
curtailment of our basic freedoms. If

ing to get along with inventories as
small as possible, and also that you
have set up some reserves as a protec
tion against inventory depreciation.

a severe depression should come upon
us, it seems alm ost ineA itable that gOArernment control o w r business would
be extended.
Freedom of economic

The most decisive factor in deter
mining whether the next recession will
be moderate or very severe is the eco
nomic recovery of Europe. We are
just about to start an ambitious pro
gram to help Europe recover economic
stability. There is no guarantee that
this program will succeed but it must
be made to succeed, if it is humanly
possible, because otherwise our own
conditions, not to mention those in
Europe, will become desperate.

activity in many directions would be
further limited. This in itself would
be regrettable but not so serious as
the threats to our civil and political
liberties which would reduce still fur
ther our economic liberty. History
seems to show that the curtailment of
one type of liberty threatens the pres
ervation of other types.

No effort should be spared to work
out an adequate and effectively admin
istered European recovery program.
It is also essential that any program
which is put into operation should be
consistent with the dignity of E uro
pean countries.
Otherwise Ave shall
probably not only fail to accomplish
economic recovery abroad but shall
create ill Avill for ourselves in the
process.

Although we hope for and may ex
pect success to be achieved in this vital
area, we should face the consequences

Need for Mora! Growth
If such dire conditions should come
about, our problems would become
primarily moral rather than economic,
for the preservation of liberties is
fundamentally a moral issue. It rests
upon the moral fiber of our people.
For myself I believe that these quali
ties are not achieved merely by decid
ing to achieve them. Something be
yond our oAvn Avills is essential— a
spiritual dynamic, as I see it. It may

be summed up in the famous phrase
of William Penn of long ago: “Men
must be governed by God or they will
be ruled by tyrants.” —The End.

FO R EIG N REM ITTANCES
W e specialize in forw a rd in g
o f fu n d s a b r o a d fo r o u r
b a n k in g fr ie n d s w ith o r
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IB sS r

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LA SA LLE

W A S H IN G T O N

U o r t h w e s f e r n B c n 'ie r , J u n e , 1948

I N V E S T O R S S Y N D I C A T E OF C A N A D A , LIMITEE
W IN N IP E G

I N V E S T O R S S Y N D I C A T E OF A M E R I C A , I NC. , M I N N E A P O L I S
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I N V E S T O R S MUT UA L , I NC. , M I N N E A P O L I S

INVESTORS SYNDI CATE
TITLE A N D G U A R A N T Y
COMPANY
N EW Y O R K CITY

I N V E S T O R S S E L E C T I V E F U N D , I NC. , M I N N E A P O L I S

IS
I N V E S T O R S S T O C K F U N D , I NC. , M I N N E A P O L I S

IN V E S T O R S S Y N D IC A T E
Y ou are invited to write for detailed information on services offered,
and for the several prospectuses.

IN V E S T O R S S Y N D I C A T E • H O M E O F F IC E : M IN N E A P O L IS . M IN N E S O T A

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

N o r t h w e s f e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

.......

INVESTMENTS

in vestm en t TUutniiuj Should
Lean Tow ard the C onservative Side
The Prudent Manager of Investment Funds Will
Mot Plan for More Than a Few Months Ahead
By RAYMOND TRIGGER
Investment Analyst
New York City
HE government bond market got
another little jolt toward mid-May,
largely unnoticed because of the
bouncy, even ebullient stock market.
Secretary of the Treasury Snyder
loosed the news, a week ahead of
time, that the mid-year financing
would be done on the basis of oneyear l%s, instead of 1V4 per cent, or,
alternatively, with shorter l%s. The
Secretary may have been irked at
Allan Sproul, president of the New
York Reserve Bank, who had, a day
or two earlier, hinted at higher short
term rates. Whatever the motive, the
government market was obviously
caught unprepared and prices of in
termediates and longs responded with
snappy rises.
Mr. Sproul may also have offended
other Washington money managers
when he told a Congressional commit
tee that, “ More and more it seems to
have become the habit to think of the
system as a head office in Washing
ton with twelve branches or subsidi
aries in the twelve Federal Reserve
districts and even to forget that the
Board of Governors is a board and not
a chairman with deputies, great
though the powers of the chairman
may be. More and more it has become
the habit to minimize the value or
deny the propriety of any private par
ticipation in the affairs of the System.
I oppose those tendencies.”
Those refreshing observations pro
voked editorial comment by The Wall
Street Journal also worth recording:
“ Congress intended, as Mr. Sproul
pointed out, to make the System a
blend of national authority and re
gional responsibility. There has been
a tendency to forget that.
“There could hardly be a more dan
gerous development than to center
control of the banking system in a
body at Washington and then to have
that body dominated by one individual.
That individual would have a power

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Federal Reserve Bank of St. Louis

This is a discussion of factors
affecting your investment port
folio. If you have any questions,
or if you find yourself in dis
agreement with comments here
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
column discuss specific securities.

far beyond that which the people
would be willing to give any elected
official: he could, if unchecked, change
the economic and social system of the
country.”

Credit Powers
Specifically, Mr. Sproul urged that
the open market committee of the
System be charged with the credit
powers now exercised by the Board of
Governors of the System. Also, he
suggested that the open market com
mittee be given control of discount
rates, reserve requirements, margin
requirements on the stock exchanges
and related powers. The open market
committee is made up of the seven
governors of the System and five of
the twelve presidents of Federal Re
serve Banks and about all it does is
buy and sell governments in accord
ance with the dictates of the gover
nors. It has been in conflict with Marriner Eccles, former chairman of the
Board, on matters of broad policy at
times in the past.
Since this is an election year and
since Senator Taft has a lively inter
est in the outcome, his opinion that
his committee will not press for leg
islation on higher reserves in particu
lar and a general over-hauling of the
System at this session likely will prove
entirely accurate.
In passing, of

course, it is also most unlikely that
the Eccles proposal for higher reserves
will receive much serious attention.
Altogether, then, the picture of what
lies ahead in the government market
through November has not been great
ly changed, welcome as Mr. Sproul’s
rather pointed remarks were. The
114 per cent rate for one-year certifi
cates is coming, of course, but it may
be deferred till September. The firm
support pledged by the authorities for
the longs has not been threatened.
Against these relatively impermanent
forces is opposed the underlying trend
toward higher interest rates created by
supply and demand.
The debt of the U. S. is large and
unwieldy. Far too much of it comes
due, or could be demanded, within one
year. The yield from intermediates
and longs is not large enough to create
active demand from non-banking in
vestors. There is still plenty of elbow
room in which the authorities can
operate, but some of it is “ paper.”
The Treasury no doubt will run along
for some time with cash receipts ex
ceeding cash expenditures, regardless
of how soon costs of defense and ERP
lead to greater budgeted outlays than
receipts. But it cannot do so indefi
nitely and is certainly piling up future
headaches by spending current re
ceipts such as social security taxes. It
may be, of course, that a new admin
istration will not feel bound to honor
a 2 V2 per cent rate on long-term gov
ernments. Or it could be that the
current extremely high levels of em
ployment and national income will not
continue forever. Thus, either through
wisdom and courage, or under pres
sure of necessity, a somewhat more
painful but correspondingly more pru
dent national fiscal policy will evolve.

Investment Structure
The whole investment structure is
artificial and strained, as has been
N o r t h w e s t e r n B a n k e r, J u n e , 1948

Investments

pointed out by several eminent au
thorities. Recently, Mr. Schram of
the New York Stock Exchange made
the point succinctly and persuasively.
Mr. Schram said, “ The life insurance
companies are making loans today
which in my judgment belong in the
commercial banking system, while the
commercial banks are advancing cred
it where the funds should be obtained
in the equity market. Both these con
ditions have been forced upon these
lending agencies because the capital
markets have not been in a position
to provide the necessary funds.”
Mr. Schram ascribed these evils to

unnecessary obstructions to the flow
and function of risk capital in the form
of double taxation of dividends, treat
ment of capital gains and discrimina
tory margin requirements. Here again,
it may be observed, a new philosophy
may be ushered in late this year and
some or all of the causes enumerated
by Mr. Schram removed.
Ignoring the possibilities of a new
world war and of a continuing urge
to “restore” Europe, from both of
which expensive adventures this coun
try may be spared, it is clear enough
that no prudent manager of invest
ment funds will plan for more than

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a few months ahead. And that plan
ning should lean far over toward the
conservative side. It shouldn’t be too
difficult, either. In broad outline, in
termediate and long governments are
relatively less attractive holding than
90-day bills and one-year certificates.
Advantage should be taken of oppor
tunities to lighten holdings of longterms such as were presented in May
in anticipation of better yields from
bills and certificates over near-by
months.

Corporate Portfolio
Considering the number and variety
of intangibles and incalculables in the
existing situation and not ignoring
the possibility of a depression—per
haps sharp and brief; or mild and
prolonged—in general business, there
appears to be the fullest justification
for a careful pruning of the average
corporate bond portfolio. There may
be fundamental changes ahead which
amount to a reversal of the trends of
recent years. Among other things,
there may be a notable volume of cor
porate offerings of good, and even
top-grade, available for bank invest
ment. Prices, of course, will have to
be realistic and by this is meant that
new bonds will have to look cheap
when compared with comparable out
standing issues.
A development of this sort tends to
be self-perpetuating. As attractively
priced new bonds come to market,
older issues are sold and the funds
thereby released invested in the new.
Consequently, when the next new is
sue is to be priced, the levels at which
outstanding obligations are selling
likely will be lower. Since, however,
the volume of new emissions cannot
be expected to be really large when
compared with the total of seasoned
outstanding bonds, most of which are
practically permanently lodged with

MUNICIPAL and CORPORATE
SECURITIES
Underwriters and Distributors

Protect Your C u sto m e rs -S e ll

American Express
T ra v o lv r s C h eq UeH
m ost widely kn oWn_ m <st readily accepte(f

N o r t h w e s t e r n B a n k e r, J u n e , 1948

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Federal Reserve Bank of St. Louis

Wheelock & Cummins, Inc.
200 Equitable Bldg.
Phone 4-7159

Des Moines, Iowa
A.T.T. DM 184

investments
long-term, bona fide investors, the
pressure on the entire price structure
exerted by new issues will not be
severe, although not to be wholly ig
nored.
Accordingly, the situation warrants
continuing weighing of values and
prices. In a rising market the port
folio manager is frequently in the
happy position of declining to shift—
at no improvement in quality, but at
higher prices—into new issues. He
really has less work and, at the same
time, makes fewer mistakes and the
market will at least obscure those he
does, unfortunately, make. In a fall
ing market, such as should at least be
allowed for at this stage of economic
cycle, exactly the reverse is true. Bar
gains, apparent or real, are coming
up for thoughtful consideration at fre
quent intervals and hidden portfolio
weaknesses are thrown into promi
nence by the appraisals of the market
place.
In sum, it is of the first importance
that all portfolio holdings be scruti
nized; carefully, candidly and even
pessimistically.

Municipal Market
The municipal bond market fre
quently is found to be pursuing an
independent course. There are a num
ber of reasons for this, of which tax
shelter is only one and not always
the most important. Marketwise one
of the most important factors is that
—at certain levels—large institutional
buyers and modest individual invest
ors will either buy or sell municipal
bonds, practically speaking, with little
regard to quality.
Thus, after almost two years of fall
ing prices, insurance companies have
returned to the municipal field and
smaller in v e s t o r s likewise h a v e
evinced some interest. The municipal
market, because of peculiar internal
reasons, often undergoes an abrupt,
fairly important change in price level,
frequently somewhat later than would
have happened in more responsive sec
tors of the investment security field.
Thus, in the second half of 1947.
prices dropped almost dizzily and the
move carried well into 1948. The sub
sequent rally lifted prices to the best
1948 levels, but those were no higher
than the lowest in 1947.
The evidence available for study in
dicates that municipals are now flat
tening out and steadying. This makes
it easier for both finance officials and
banking houses which specialize in the
field to come together on terms appro
priate to current conditions. The end
result is that the investor may buy
new offerings with greater confidence,
usually with the comfortable convic

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Federal Reserve Bank of St. Louis

tion that they are priced “right” to
begin with.
Since all the really large veterans’
bonus issues have been sold and the
market has adjusted itself to postwar
conditions and appears to have entered

upon a period of relative stability, a
number of interesting tax-exempt rev
enue issues have come to market or
are on the way. In one instance—the
New Orleans railroad passenger termi
nal issue—something never before at-

Announcing the Formation o f

i g g e

and

a v r a

C o .

Members Chicago Stock Exchange
4 0 7 Merchants National Bank Building
C E D A R RAPID S
Iowa
Telephone
3-3593
R E G IN A LD B. FIGGE

Teletype
CR 23
JOHN S. V A V R A

A N N O U N C IN G
T W O N EW C H E C K B O O K S
W e are pleased to announce the
introduction o f two new DeLuxe
Personalized Checkbooks, both being
the three-checks-to-a-page style and
both employing the simple register
for recording transactions.
^JChile both books will have three
hundred checks, the smaller, called
"The Secretary” , will be pocket check
size and will sell for $2.00 including
gold-stamped cover, and the larger,
called "The Executive” , will be busi
ness check size and will sell for $2.75.
Neither book will have a potential
market comparable to our Personalized
Pocket C heckbook, but they will
"round out the line” for bankers who
are recovering their check expense
thru the sale of imprinted checks to
their customers.
T h is w ill give banks three check

styles for those who prefer the
simplified register method o f keeping
records; namely (1) The Pocket Style,
(2) The Secretary for the home and (3)
The Executive for the office, as well as
the wide selection o f styles and colors
in our Standardized Business Check
catalog, so practically all customer
requirements can be satisfied without
any investment by the banks.
T h e time is ripe now to establish a
"Check Desk” from which all checks
can be distributed. It can be an elabor
ate affair in the center o f the banking
floor or it can be o f modest design at
any convenient point. The young lady
in charge will sell more than she gives
away and check expense will quickly
shrink. In addition, better control will
be provided and swifter and more
accurate sorting, posting and filing
are assured. Write us for samples o f
the two new books.

N o r t h w e s t e r n B a n k e r, J u n e , 1948

Investments

tempted was brought out. Since the
issue was well received and since it
appears to be a perfectly workable
solution to problems of like nature in
other cities, more issues of this sort
are expected.
Also, the various bridge, tunnel, air
port and similar authorities are work
ing on plans to expand their facilities
with money borrowed on tax-exempt
bonds. These “ revenue” exempts are
not, generally speaking, of the same
quality as orthodox municipals, but
they frequently provide extremely lib
eral returns. Although each issue
requires individual analysis, the broad
outline is probably favorable enough
to warrant the study involved. It is
not a simple matter to create a new
municipal bond, nor can it be done
except after time-consuming prelimi
naries. It is even more difficult to set
up an authority with the power to
issue tax-exempt revenue bonds. And
when this has been accomplished, the
authority cannot blithely undertake
any venture that comes to mind. If a
facility is planned, rather exhaustive
engineers’ reports must indicate a
strong presumption that the new fa
cility will pay out.
Thus, there is little likelihood that
the exempt market will be flooded with

WHEN

YOU

MA Y

a great number of unwisely conceived
revenue bonds. At the same time, it
is always possible that tax shelter will
some day be more valuable than it is
at present. Finally, almost all mu
nicipals mature serially which means
that unless there is a steady flow of
new bonds, the total outstanding
shrinks every year. In fact, despite
the huge state issues of bonds to pay
bonuses to veterans, the total of mu
nicipal bonds in existence in this coun
try is about two billion dollars less
than it was in the mid-’30s.
Altogether, the tax - exempt bond
market, influenced and supported by
a variety of factors that are non-exist
ent in the case of governments and
corporates, offers investment opportu
nities to commercial banks that may
well be carefully explored.—The End.

man of the Committee on Uniformity
on Documents and Practices. The re
port deals with several important
phases of foreign banking, including
the controversial subject of “ stale”
bills of lading. The meeting will be
attended by United States and Cana
dian bankers engaged in foreign bank
ing and also by U. S. representatives
of leading foreign banks.

Addresses Meeting

Elected Director

Elected Officers
Talbot Babcock, formerly assistant
vice president of The Continental
Bank and Trust Company of New
York, has been elected an assistant
vice president at Bankers Trust Com
pany, New York, and Martin N. Hen
drick has been promoted to the posi
tion of assistant secretary, it was an
nounced by S. Sloan Colt, president.

A.
M. Strong, vice president of the Wayne A. Johnston, president of the
American National Bank and Trust Illinois Central Railroad, will be
Company of Chicago, addressed the elected a director of the Harris Trust
annual meeting of the Bankers Asso and Savings Bank at a special stockciation for Foreign Trade, which was
held May 25th to 28th at Montebello,
Canada, on the topic “Financing Air
Shipments.”
He also rendered a report as chair

WELCOMING

US!
W A Y N E A. JOH NSTON
Harris Trust Director

You

know

all the

risks a bank

faces

d ish on est

em p lo y e e s, em b ezzlers, h o ld -u p m e n , fo rg e rs.
T h e tim e to get p ro tectio n is b efo re so m e th in g h ap p en s.
W h e n it d o e s, w e k n o w fro m years and years o f e x p e ri
ence our representative w ill get a real w e lc o m e fro m you.
T a lk to our lo c a l agent.

S p ec ia lis ts in
Bank Insurance

Indemnity Company
111

FIFTH

S T .,

ST.

PAUL

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

M IN N .

holders’ meeting, June 7th, if the
stockholders act favorably on a pro
posal P. S. Russell, president of the
bank, made on behalf of the directors.
Mr. Johnston was elected president
of the railroad in 1945 when, at 47,
he was one of the youngest men ever
chosen to head a major American
railroad.
Mr. Johnston went to work for the
Illinois Central in 1919, following his
graduation from the University of Illi
nois. His first Illinois Central job
was that of accountant in the office of
the division superintendent at Cham
paign, Illinois.

INSURANCE

H ow W e T ry to K eep
Our P olicyh old ers H appy
Through a Consumer Research System, Various Groups
Are Asked Their Opinion on Details of Company Service
By CLIFFORD B. REEVES
Second Vice President
The Mutual Life Insurance
Company of New York
PINION studies among various
groups whose good will is im
portant to your business are an
excellent device for measuring atti
tudes toward the broad questions in
volved in the operation of your busi
ness. We found, however, that such
general surveys did not provide us
with informed answers on many de
tailed parts of our operations. The
reason is that not enough of the peo
ple included in such surveys have had
the particular experience with the
company that enables them to give
informed answers. Therefore, as a
supplement to broad opinion studies,
we have adapted to our use the tech
nique that is generally known in in
dustry as “consumer research.”
This method can be used equally
well by a life insurance company to
test the quality of its services to pol
icyholders. Each month, The Mutual
Life audits one of its services in this
way. Recently, for instance, we sent
a letter and questionnaire to a random
sample of more than 200 policyholders
who had requested a change of bene
ficiary in the preceding 30 days. Thus,
while all details of the transaction
were fresh in their minds, we invited
their criticism and their suggestions
for improvement. We asked them spe
cifically whether their request was
handled promptly enough; whether
the service was rendered courteously;
whether they felt there were any un
necessary complications; and whether
the forms we sent them were clearly
understandable. Each month we are

covering in this way some different
policyholder service.
Such studies do not purport to he
opinion surveys, because no attempt
is made to reach a cross-sectional sam
ple. They are simple check-ups on the

Third Method
A third method we use to keep
abreast of public thinking about life
insurance in general and our company
in particular, is to follow press and
radio opinion closely. Press clipping
bureaus furnish us with all editorial
comments that have a direct or an
important indirect bearing upon life
insurance. We also retain a radio
monitor service which furnishes us
promptly with transcripts of the opin
ions of radio commentators.
If an editor or radio comentator
makes a valid criticism, we try to do
something about it and thank him for
a good idea. If the criticism is not
valid, we try to explain the facts and
thus prevent further unfounded criti
cisms. Newspaper editors and radio
commenators, because of the unique
position they occupy, can do more
than any other two groups to influ
ence public opinion about any busi
ness or company.

Fourth Method
C LIFFORD B. R EEVES
Tells How to Keep Goodwill

service rendered, and are intended to
give us the benefit of criticisms or
suggestions that we might not other
wise receive. Their great value lies
in the fact that responsive answers

Did you know that your Banker’s Blanket Bond
does not protect your Cash Letter while it is in
transit by mail or express? A sk about our
Cash Letter Policy, which fills the gap.
F IR S T

N A T IO N A L

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Federal Reserve Bank of St. Louis

BANK

B U IL D IN G

•

can be obtained to detailed questions
on technical transactions that policy
holders have just conducted. Such
surveys cost little to make and will
provide tremendously helpful infor
mation.

C H IC A G O

The fourth method we use to deter
mine the preferences of our customers
and the public is a plan for obtaining
regular reports from our field under
writers, who are in direct contact daily
with policyholders and the public. The
compensation plan adopted some years
ago by The Mutual Life pays our field

Scarborough & Company
Insurance Counselors
3,

IL L IN O IS

STATE

to Banks

4325

N o r t h w e s t e r n B a n k e r, J u n e , 1948

Insurance

underwriters for periodic service calls
on the company’s policyholders. Reg
ular reports are received on each of
these calls, and one of the things re
ported on is the attitude or criticisms
of the policyholder in question. These
reports are carefully reviewed for sug-

Fiiim n u ts

gestions, criticisms or misunderstand
ings.

Fifth Method
The fifth and final way in which we
endeavor to determine public prefer
ences is through compilation and anal
ysis of all complaints received. Un
less they come to one central spot, no
one in the organization will be fully
aware of the number and character
of the complaints received. Com
plaints are very often justified, and
provide a basis for improvement of

iif Progress
u

nge

Co m

pany^

W e are proud of our record
in the Insurance field and of

Des Moines, Iowa

our Banker Representatives.

Fire - Windstorm - Automo

BANKER
AGENTS
WANTED

bile & Plate Glass Insurance

A strong mutual company in its 56th

W e write a complete line of

year

offers

liberal

agency

contracts

covering—

» E M MllTIJiL
FIRE INSURANCE COMPANY
NINTH & GRAND

•

AU T O IN S U R A N C E

•

T O RN AD O IN S U R A N C E

•

TOW N D W ELLIN G IN SU R A N C E

•

H A IL IN S U R A N C E
on G r o w i n g C r o p s

DES MOINES 8, IOWA

Surplus to Policyholders
$4,023,979.32
55 years of proven protection.

“ Mutual Insurance Is American
Insurance”

W r ite

f o r o u r l ib e r a l p r o p o s i ti o n
ban k r e p resen ta tiv es.

procedures and services. They reveal
bottlenecks and trouble-spots that can
be corrected. Moreover, the decline
or increases in the volume of com
plaints received over a period of time
provides a reasonably accurate index
of the quality of the job your organi
zation is doing.
All of the methods I have described
are, I believe, relatively simple and
practical for virtually any life insur
ance company. Such a program costs
some money—yes! But it provides a
valuable check-up on the services for
which you are spending many times
as much money in the daily operation
of your business. If it helps to im
prove the efficiency and benefit of
such services, it will pay for itself
many times over.
We have also used our opinion sur
veys to check the effectiveness of vari
ous promotional campaigns on which
the company spends large sums an
nually; to test readership of our an
nual report; and to obtain the reac
tion of public, policyholders and our
own people to recently introduced
programs of various sorts. The sur
veys have provided guideposts for
the improvement of such programs,
and a continuing index of their effec
tiveness.
Every company spends a great deal
of money on operations and services
that are all intended to build business
and good will. It certainly seems
worthwhile to spend at least a little
money to test public reaction to the
things that are being done.—The End.

DEAR EDITOR
(Continued from page 13)
Group Trippers and we enjoy always having
Henry around when bankers gather in
Nebraska.”

YOU C M GET THESE ESSENTIAL

CASUALTY COVERAGES
What Is an
‘ Essential Coverage?

Full Coverage Automobile

It's protection against
exposures of business
men, employers and
p r o p e r ty
ow ners
which might mean
bankruptcy should a
jury return a verdict
against you.

Liability

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

Compensation
•

•

Workm en's

Manufacturers

Public

Contractors Public Liability

Elevator Public Liability
Liability

•

Tenants Public Liability
Outside Theft
and Robbery

•

Farmers

Owners, Landlords, and

•
•

•

Residence and

Storekeeper Burglary
Comprehensive Personal

L i a b i l i t y ..................... "A llied Mutual P ays"

A L L IE D M U T U A L
CASUALTY COMPANY
Harold S. Evans, President
H u bbell Build ing

Des M oines 7, Io w a

Carl G. Swanson, Secretary,
Nebraska Bankers Associ
ation, Omaha, Nebraska.

"Largest Town With One Bank"
“ In the latest issue of the excellent
N orthwestern B anker , there is a news
item stating that Eagle Grove is getting a
second bank. As far as known, Eagle Grove
was the largest town in Iowa with one bank,
and now it will soon have two banks. The
population of Eagle Grove according to the
TT. S. 1940 census was 4,024.
“Which is now the largest town in Iowa
with one bank?
“ As far. as known, Belle Plaine is prob
ably that town.
“ A very recent check on the number of
families shows Belle Plaine with 1,200 fam
ilies. On the basis of 3% persons on the
average to the family, this gives a present
population of 4,200. In the IT. S. census of
1940 the population of Belle Plaine is given
as 3,202.
“ This is an increase of 1,000 in 8 years
and it has been just a gradual increase.
“ Benton county, in which Belle Plaine is

Insurance
located, is the largest hybrid seed corn pro
ducing county in the world. There is a large
hybrid seed corn plant at Belle Plaine, also
corn cannery, but the railway is the most
important industry and it looks as i f it will
be a good deal larger before so very long.
It makes the best central point on the Chi
cago & Northwestern double track main line
between Chicago and Omaha, a distance of
488 miles. The railway is easing curves and
reducing grades both west and east of Belle
Plaine, to enable fast trains to run at the
rate of about 100 miles an hour between
Chicago and Omaha.
“ Belle Plaine formerly had three banks.
“ Is it the largest town in Iowa with one
bank?”

H. Boy Mosnat, 1306 10th
Avenue, Belle Plaine, Iowa.

Capital is $25,000 and Surplus
divided Profits $34,241.
“ Conditions in this area, from
standpoint, are good. Have had
moisture and the fields were never
shape this time of year.”

and Un
the crop
sufficient
in better

T. F. Green, Cashier, Bank
o f Valley, Valley, Nebraska.

"Very Helpful"
“ I received in this morning’s mail the 1948
edition of the Iowa-Nebraska Bank Directory.
“ Thank you very much, Cliff. 1 am sure
that it will prove very helpful to me.

Donald A. Harper, Asst.
Vice Pres., First Wisconsin
National Bank, Milwaukee,
Wis.

1948 Dividends
Directors of the First National Bank
in St. Louis last month declared a
dividend of $1.50 per share, payable as
follows: 50c per share payable May
28, 1948, to stockholders of record May
20th; 50c per share, payable August
31, 1948, to stockholders of record Au
gust 23rd; 50c per share, payable No
vember 30, 1948, to stockholders of
record November 22nd. A quarterly
of 50c was paid February 27th of this
year. The present dividend compares
with $1.20 per share declared last May.
The bank’s surplus is $10,200,000,
which is now equal in amount to
capital.

"Liked Your Editorial"
“ I liked your editorial in the May issue
of the N orthwestern B anker on Bill
Brady, President of the National City Bank
of New York. What you say about Henry
Wallace in another editorial is probably
all right too, but I am not so sure that he
will pay any attention.”

TV. Dale Clark, President,
O m aha N a tio n a l B a n ~k,
Omaha, Nebraska.

"Honor Roll Bank"
“ We are happy to send you a copy of our
last statement, this being the first state
ment that we have published showing our
Surplus equal to our Capital Stock.
Our

Select Insurance
fo r Select Risks!
Sickness and Accident Policies with Hospital
and Surgical Reimbursement for

MERCHANTS
MUTUAL

BONDING
COMPANY

Preferred Occupations

OVER 43 YEARS OF SUCCESSFUL SERVICE

Incorporated 1933

Home Office
SAVINGS & LOAN BUILDING

Des Moines, Iowa
•

W rite for Application and Literature to

Tin s is Iowa’s oldest surety company.
A progressive company with experi
enced, conservative management.
We are proud of our two hundred
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.
©

E. H. WARNER

MINNESOTA COMMERCIAL
MEN’S ASSOCIATION
PAUL CLEMENT, Secretary

Secretary and Manager

2550 P IL L S B U R Y A V E N U E

W. W. WARNER

M IN N E A P O L IS 4, M IN N E S O T A

Assistant Secretary

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, J u n e , 1948

M IN N E A P O L IS

NORTH DAKOTA BANKERS I ..JNE
SOUTH DAKOTA BANKERS i JU N t
MINNESOTA BANKERS • JUNE 16-17

HIGHWAYS TO BETTER BANKING
• All roads lead to the Summer and early Fall conventions. And the
signs point to good times and frank discussions. Old-timers at these
state bankers’ conventions know how worthwhile it is to rub elbows,
talk over problems, and swap ideas with the fellows from several
counties away. If you take home with you even one good new idea,
it’s worth the trip . . . what’s more, a change of scenery will relax you.
Meet old friends and make new ones. Of course if you’re among those
meeting in Minneapolis, the welcome mat is out front for you at
FIRST National. We hope you will pay us a visit.

FIRST NATIONAL BANK OF MINNEAPOLIS
FIenry E. A twood , President

— --- --------------------------- DEPARTMENT OF BANKS AND B A N K E R S -----------------------------------M . O. G r a n g a a r d , V ice Pres.
K. T. M a r t i n , Asst. V ice Pres.
J. M . D o w n e s , A sst. Cashier
J. J. M a l o n e y , A sst. Vice Pres.
G. S. H e n r y , A sst. V ice Pres.
C. E. C o r c h r a n , Asst. Cashier
Member Federal Deposit Insurance Corporation

ESTABLISHED 1 8 6 4 . ..T H E
N o r t h w e s t e r n B a n ke r, J u n e , 1943

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Federal Reserve Bank of St. Louis

BANICER-S’ B A N K

OF THE

NINTH

DISTRICT

Marquette National Changes

Minnesota

NEWS
JOHN CARLANDER
President
Faribault

“I" ENTATIVE dates for Clinics of
I the Minnesota Regional Clearing
House Associations have been an
nounced from the office of Robert E.
Pye, secretary of the association. Ar
rangements for annual meetings and
election of officers, to be held in con
nection with the clinics, are to be made
by individual clearing house groups
and have not been announced at this
time.
The Regional Clearing House Asso
ciation committee, composed of presi
dents of each Clearing House Associa
tion, met in Minneapolis last month,
at which time the committee recom
mended to the state association’s Coun
cil of Administration that the names
of Clearing House Associations be
changed to the territorial designation
followed by “ Division of the Minnesota
Bankers Association.”

ROBERT E. PyE
Secretary
Minneapolis

With Mankai© Bank
P. R. Kenefick, president of the Na
tional Citizens Bank of Mankato, Min
nesota, announces the election of For
rest Hedger as vice president at a
recent meeting of the board of direc
tors of the bank. He assumed his
duties last month.
Mr. Hedger has been a resident of
Tracy, Minnesota, all his life, gradu
ating from the Tracy High School in
1931. In June of that year he was
employed by the Farmers & Merchants
State Bank of Tracy and has been cash-

City

Clearing House
Associations

Duluth

Bemidji

North Central

Thief River
Falls

Northwest and Red
River Valley

Alexandria

Central
Minn.,
Park Region and
W estern Minn.

Arrowhead

Redwood Falls Brown,Central TriCounty, Corn Belt,
S o u th w e s t e r n ,
W est Central and
Redwood County

Faribault

Blue Earth Valley,
D a ir y
Region,
S o u th e a ste rn
Minn.,
S o u th e rn
Minn, and F o u r
County

St. Paul

Six
C o u n ty ,
St.
Croix Valley, Minn.
Valley, Rural H en
nepin, Anoka and
W righ t County

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Federal Reserve Bank of St. Louis

M ERTH E.
M O R TE N SO N

LYL E L.
ST O TE SB E R Y

cashier in April, 1934, and cashier in
January, 1937.
The new Marquette vice president
started in banking in 1914 at Farmers
State Bank, Hampden, North Dakota.
Lyle J. Stotesbery was born in Big
Stone county, Minnesota, and attended
public schools, graduating from the
high school at Ortonville. He later
attended business colleges in South
Dakota and Minneapolis.
For the past 16 years he has been
vice president of the Union Savings
Bank, Grand Mound, Iowa. Mr. Stotes
bery owned controlling interest in the
Iowa bank.
He is moving his family to Minne
apolis, having purchased a home in
one of the Minneapolis lake districts.

Following is the tentative schedule
for the clinics, the program being ar
ranged by Mr. Pye’s office and meet
ing arrangements to be handled by
each host association:
Date
July

Merth E. Mortenson, for 11 years
cashier at Marquette National Bank
of Minneapolis, has been elected vice
president of the bank, according to an
announcement by Russell L. Stotesbery, president.
Succeeding Mr. Mortenson as cash
ier is Lyle L. Stotesbery, brother of the
bank president. His election was ef
fective June 1st.
Mr. Mortenson joined Marquette Na
tional Bank in March, 1930, and was
elected auditor in May, 1930; assistant

With Rochester Bank
FO R R E ST H EDGER
V ice President of Mankato Bank

ier of the bank since 1942. He is a
veteran of World War II, entering the
service in December, 1943, and being
released from his service duties in
October, 1945. Eleven months of this
time was spent in Brazil. Mr. Hedger
has been president of the Tracy Civic
and Commerce Association, member of
the Junior Chamber of Commerce,
Kiwanis Club, American Legion and
Tracy Volunteer Fire Department. He
is married and has two sons.
Mr. Kenefick also announces that
Edwin Bibbs is now assistant manager
of the personal loan department of the
National Citizens Bank.

Donald H. Grina, formerly of Fergus
Falls, Minnesota, and more recently
employed by a bank in Astoria, Wash
ington, recently was elected an assist
ant cashier of the Union National
Bank of Rochester, Minnesota.

Open Rockford Bank
The new Rockford State Bank of
Rockford, Minnesota, was opened offi
cially the first of this month. Manag
ing the bank will be Mr. and Mrs. W.
W. Lindquist, who are cashier and
assistant cashier, respectively.

MORE MINNESOTA NEWS
ON PAGE 50
N o r t h w e s t e r n B a n ke r, J u n e , 1948

Minnesota News

E LECTION of

Joseph F. Ringland,

president of The Northwestern
National Bank of Minneapolis, to the
board of directors of Northwest Bancorporation, was announced by J.
Cameron Thomson, president of the
Bancorporation.
Mr. Ringland became vice president
of Northwestern National in 1944 and
succeeded to its presidency in 1945.
Previously he was associated with The
United States National Bank of Oma
ha, Great Falls (Montana) National
Bank, Stock Yards National Bank of
South St. Paul, Empire National Bank
and Trust Company of St. Paul, and
Guaranty Trust Company of New
York.
Bancorporation directors also de
clared a dividend of 40 cents per share
on 1,547,767 shares of stock outstand
ing, payable May 25th to stockholders
of record as of the close of busines
May 10th.
A dividend of 40 cents per share was
paid May 25, 1947, and a dividend of
40 cents per share, plus a special divi
dend of 20 cents per share, was paid
November 25, 1947, making total divi
dends of $1 per share for 1947.
The packinghouse workers strike in
South St. Paul cut April business
transactions there more than a third
in comparison with last year, accord
ing to the Minneapolis Federal Re
serve Bank report on bank debits for
the Ninth federal reserve district.
Total South St. Paul bank debits
totaled $38,735,000 for April, a drop of
37 per cent under a year ago when
they were $61,029,000. For the first
four months total debits were 6 per
cent under the comparable period of
1947.
Total debits for Minnesota banks
were 9 per cent higher for April than
a year ago and 14 per cent higher for
the first four months. Minneapolis
debits increased 8 per cent for April
and 15 per cent for the first four
months. St. Paul debits increased 15
per cent for April and 17 per cent for
the first four months.
Spring Valley, Minnesota, led the

N o r t h w e s t e r n B a n ke r, J u n e , 1948
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Federal Reserve Bank of St. Louis

Ninth district in gains for April with
47 per cent, followed by Fargo, North
Dakota, and Hudson, Wisconsin, with
39 per cent.
China R. Clarke, manager of the
Reconstruction Finance Corporation’s
Minneapolis loan agency, has been
named president of the American Na
tional Bank of St. Paul.
Announcement was made by Otto

war assets administration in Minne
apolis for the last two years.
John Coriander, president of the
Minnesota Bankers Association, spoke
on WCCO, Minneapolis-St. Paul radio
station, recently on “ The Cost of Liv
ing and Inflation.” He stressed the
part that increased purchases of
United States savings bonds can play
in curbing inflation.
F. H. Gahre, a director of the North
Side office of the First National Bank
of Minneapolis, died recently. He was
president of the former BardwellRobinson Company until his retire
ment two years ago.

CHINA R. CLARKE
President, American National Bank of St. Paul

chairman of the bank’s board
of directors. Mr. Clarke succeeds H.
B. Hum ason, who asked to be relieved
of the presidency after spending 45
years with the bank. Mr. Humason
will remain with the bank as execu
tive adviser and member of the board
of directors.
Mr. Clarke has been with RFC since
May, 1938. Previously he was identi
fied with banking activities in Minne
sota, South Dakota and Montana for
more than 25 years. He is a native of
Helena, Montana.
Succeeding Mr. Clarke in the Minne
apolis RFC post is Arthur W . Carlson,
who has been regional director of the

Immediate prospects for American
business are “excellent,” Thomas B.
McCabe, new chief of the Federal Re
serve Board, told more than 1,000 bank
executives from six midwest states
who attended the annual conference of
the Ninth District Federal Reserve
Bank in Minneapolis.
Mr. McCabe said employment and
business are at their highest points in
the country’s peacetime industrial his
tory. He declared that regional banks
should play an important part in mak
ing the policy of the federal reserve
system.
Bankers attending the conference
were from Minnesota, North and
South Dakota, Montana, northern
Michigan and part of Wisconsin.

Bremer,

C.
E. Melbye of Minneapolis, a for
mer examiner with the Minnesota
state department of banking, has been
named financial director of the Minne
sota Swedish Pioneer Centennial com
mittee. The centennial will be ob
served June 26th and 27th.
Ralph V. Hagen, cashier of First
Hennepin State Bank of Minneapolis,
was installed as treasurer of the Min
neapolis Church federation at the
organization’s annual meeting re
cently.

Appointment of Joseph I). Husbands

Y o u ’ll find
v a lu a b le sessions,
w o rth w h ile discussions and h earty fellow ship
at the
JU N E C O N V E N T IO N S !

Convention time is here! Yes, sir, June—
the traditional convention m onth for
progressive 9th District bankers—is again
loaded with an interesting variety of im
portant convention activities.

C O N V E N T IO N S C H E D U L E
MINNESOTA BANKERS ASSOCIATION
M i n n e a p o l i s . . . J u n e 16-17

WISCONSIN BANKERS ASSOCIATION

North and South Dakota bankers will
give this month’s convention programs a
notable start with a joint meeting in
the Twin Cities, June 11 and 12. We’ ll
have the pleasure of actively participat
ing in the Dakota convention— and we’re
looking forward to taking part in the
M innesota, W isconsin, and Montana
meetings as well.
The June convention programs offer most
of us the year’s best opportunity to take
part in the discussion of recent banking
developments and current banking prob
lems. And, of course, the prospect of
visiting with old friends, and meeting new
friends is always a particularly pleasant
aspect of these conventions.
We sincerely hope that you plan to attend
— and that we can get together with you
soon.

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

M i l w a u k e e • . . J u n e 21 -23

MONTANA BANKERS ASSOCIATION
G l a c i e r P a r k . . . J u n e 24 -26

D EPAR TM E N T o f BANKS a n d BANKERS

Wallace L. Boss,
V ic e P r e s id e n t

Elmer M . V olkenant,

Lee A. Sauer,

A s s i s t a n t V ic e P r e s i d e n t A s s i s t a n t V i c e P r e s i d e n t

Lloyd L. Leider,

Donald W. Buckm an,

Donald L. S m ith,

A s s i s t a n t C a s h ie r

R e p r e s e n ta tiv e

Richard C. Lilly, C h a i r m a n , B o a r d o f D i r e c t o r s
Philip L. Ray, C h a i r m a n , E x e c u t i v e C o m m i t t e e
Julian B. Baird, P r e s i d e n t

The FIR ST N A T IO N A L B A N K
o f S A IN T P A U L
M em ber Federal Deposit Insurance Corporation

IS O O T H E R C O R R E S P O N D E N T
CAN DO M O R E FO R YO U

N o r t h w e s t e r n B a n ke r, J u n e , 1948

4()

Minnesota News

GREETINGS TO THE MINNESOTA
BANKERS CONVENTION!
Call on us for current information on
your municipal or corporate holdings.

K A LM A N

& COM PANY

Endicott Building

McKnight Building

ST. PAUL

MINNEAPOLIS

Garfield 3305

Atlantic 5313

to the board of directors of Third
Northwestern National Bank of Min
neapolis was announced by George M.
Christoferson, president.
Mr. Hus
bands will continue as vice president
and cashier at Northwestern Na
tional’s main office.
Samuel F . Nelson, former Minne
apolis banker, died of a heart attack
in New York recently. Services were
conducted in the Lutheran church at
Lanesboro, Minnesota, where he was
born.
Mr. Nelson was a vice president of
the old Millers and Traders State Bank
of Minneapolis. At the time of his
death he was associated with the Over
seas Credit Corporation in New York.

The Minnesota State Bank of St.
Paul celebrated its third anniversary
recently with ceremonies in which em
ployes and civic leaders participated.
A birthday cake was presented to bank
officers.
Four Minneapolis banks were hosts
recently at a luncheon for 110 life in
surance leaders from throughout Min
nesota.
Northwestern National, First Na
tional, Marquette National and Mid
land National banks saluted the men
who have placed in excess of $250,000
of insurance during the past year.
Speakers were Sam Campbell, vice
president of Marquette National;
Robert Tow ey, vice president of Mid
land National; Floyd Dwight, assistant
vice president of First National, and
Burns W . Swenson, assistant vice
president of Northwestern National.

A Logical Correspondent
An account with us, used to the fullest advan
tage, assures prompt and efficient handling of
your South St. Paul transactions.
Your livestock customers will appreciate the
service such a connection affords.

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

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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

H enry T. Rutledge, assistant vice
president of Northwestern National
Bank of Minneapolis, was elected to
the board of directors of Asbury hos
pital of Minneapolis. He also was
placed on the executive committee of
the board.
Alice Schneider and Ray Andresen
were elected vice presidents of the
Girls and Group clubs, respectively,
at First National Bank of Minneapolis.
They will advance to the office of presi
dent next year. During the coming
year the two organizations will be
headed by H azel Nelson and A1 Berglund, both having been advanced to
president.
W illiam F . Kunze, vice president of
Marquette National Bank of Minne
apolis, and M . O. Grangaard, vice presi
dent of First National Bank of Minne
apolis, have been named to the United
States finance committee of Interna
tional Peace Garden, Inc. Mr. Kunze
is a former mayor of Minneapolis. The

Minnesota News
organization sponsors a 2,200-acre
peace garden between Manitoba and
North Dakota, commemorating the
friendship of the United States and
Canada.
Louis W . H ill, Sr., prominent in St.
Paul banking and railroad activities,
died recently at the age of 75. He had
been ill several weeks. Services were
conducted in St. Paul.
Mr. Hill, a son of Empire Builder
James J. Hill, had served the Great
Northern railroad in jobs ranging
from clerk to chairman of the board.
He retired early in 1929 from the di
rectorate of the Northwestern Trust
Company, and on February 5, 1935, he
retired as chairman of the board of
The First National Bank of St. Paul.
Two brothers whose interests led
them into education and banking got
together in Minneapolis recently to
compare notes on their respective pro
fessions.
The brothers are Philip H. Nason,
assistant cashier at First National
Bank of Minneapolis, and Dr. John W .
Nason, president of S w a rth m o re
(Pennsylvania) college.
Dr. Nason stopped in Minneapolis
before addressing Carleton College
students at Northfield, Minnesota. He
is a 1929 graduate of Carleton.

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Federal Reserve Bank of St. Louis

Julia Cummings of the St. Anthony
Falls office of First National Bank of
Minneapolis has been elected treas
urer of the Minneapolis chapter,
American Institute of Banking. H ar
vey Petersen of First National was
elevated to first vice president from
second vice president.

BANK POSITIONS AVAILABLE
W e have a number of bank openings
available. They vary from beginning
trainees to managing officers.
There
is no cost or obligation to you until you
are placed. W e invite your inquiries.

RICHTER PERSONNEL SERVICE
E-1126 First Natl. Bank Bldg.

assistant secretary of
the trust department at First National
Bank of Minneapolis, has resigned to
M ax B. Hight,

HOLLEY,

ST. PAUL

DAYTON

1, MINNESOTA

& GERNON

Stock and Bond Brokers

Member of Chicago Stock Exchange
and Chicago Board of Trade

LEONARD V. DAYTON, Resident Partner
Rand T o w e r
M IN N E A P O L IS , M IN N E S O T A

Through years of service the First and American National Bank
has met the needs of Duluth and the surrounding country.
This has meant additional departments, new personnel, careful
long-range planning, but only by so doing can a bank make it
self a truly modern servant of its community. Today the First
and American offers a complete banking service to its customers.
W e are prepared to give other banks the same convenient help
ful service that we offer each individual who deals with us.

Fi r s t

and

A m erican

National Ba n k
D U L U T H ’S
M em b er

L A R G E S T
F ed eral

D ep o sit

A N D
In su ran ce

Duluth

O L D E S T

B A N K

C o r p o r a tio n .

N o r t h w e s t e r n B a n k e r, J u n e , 1948

Minnesota News

join the investment staff of the Mayo
association at Rochester, Minnesota.
He will be replaced at the bank by
H arvey N. Daniels of the research de
partment of First Service Corporation.
vice president
of Northwestern National Bank of
Minneapolis, served as moderator at
the 93rd annual meeting of the Congre
gational Conference of Minnesota re
cently at Mayflower church, Minne
apolis.
Clarence R. Chaney,

Two Twin Cities bankers were
among witnesses who testified at hear
ings before the Minnesota railroad
and warehouse commission on a

Northwestern Bell Telephone Com
pany request for telephone rate in
creases in eight Minnesota communi
ties.
They are G. S. Houston, manager of
the investment research department
of First Bank Stock Corporation, St.
Paul, and Samuel H . Rogers, vice
president and investment analyst of
Northwestern National Bank of Min
neapolis.
H enry S. Kingm an, president of
Farmers and Mechanics Savings Bank
of Minneapolis, and H enry E . Atwood,
president of First National Bank of
Minneapolis, were re-elected directors
of the Soo Line railroad at the annual

meeting of the board. Mr. Kingman
was elected to the executive commit
tee to replace the late Joseph Chap
man of Minneapolis.
Young women who participated in a
search for talent contest sponsored by
the St. Paul Dispatch and Pioneer
Press and St. Paul Women’s Institute
were guests at a party in the officers
club of First National Bank of St. Paul.
J. C. Byam , vice president of First
National Bank of Minneapolis, was
among speakers at a Minneapolis
market forum designed to eliminate
misconceptions and misinformation
about the grain marketing system.

Funeral services for Joseph Chap
76, prominent Minneapolis busi
nessman and banker, who died re
cently, were conducted in Minneapolis.
Mr. Chapman began a career in the
banking business in 1888. From 1904
to 1907 he was cashier of Northwest
ern National Bank of Minneapolis. He
was vice president of the bank until
October, 1919.
At one time he was executive secre
tary of the Minnesota Bankers Asso
ciation. He also was a trustee of
Farmers and Mechanics Bank of Min
neapolis.
Minneapolis bankers were among
honorary pallbearers at his funeral.
Included were Clarence R. Chaney,
vice president of Northwestern Na
tional Bank of Minneapolis, and Henry
S. Kingm an, president of Farmers and
Mechanics Savings Bank of Minne
apolis.
man,

OLB A N K

CARL

a t the Y A R D S

A Three-Way Guarantee

L. F R E D R IC K SE N
President

M A R K A. W IL S O N
Vice President
W IL L IA M G. N E L SO N
Vice President
W IL L IA M C. SCH ENK
Asst. V. Pres, and Cashier
CL IF F O R D L. A D A M S
Asst. Vice President
JO H N S. H A V E R
Asst. Cashier
JAM ES L. SM IT H
Asst. Cashier and Auditor
K IN L E Y W . S M IT H
Asst. Cashier
STAN LEY W . EVANS
Field Representative

At the Live Stock National Bank in
Sioux City you'll find a three-way
guarantee of the best in correspond
ent bank service:
1. P R O M P T N E S S — in handling
your live stock, grain and hay
drafts on Sioux City, or any out
of town item.
2. EFFICIENCY— the result of 53
years experience.
3. FRIENDLINESS— the kind that is
not measured in dollars and
cents.
W e invite your account here in
Sioux City.

Joseph F . Ringhimi, president of
Northwestern National Bank of Min
neapolis, was elected a director of the
Association of Reserve City Bankers
at the organization’s convention in
Coronado, California.

l&c

Live S tock
National Bank
4 S I O U X C IT Y
MEMBER FEDERAL DEPOSIT INSURANCE CO RPO R ATIO N

BBi

mm
N o r t h w e s t e r n B a n k e r, J u n e , 1948

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Federal Reserve Bank of St. Louis

A rn u lf Ueland, president of Midland
National Bank of Minneapolis, was
elected to the board of directors of the
Minneapolis Civic council for the
1948-49 term.

Purchase of controlling interest of
the Billings (Montana) State Bank by
Northwest Bancorporation of Minne
apolis was announced by J. Cameron
Thomson, president of the Bancorpo
ration, and J. J. Mills, president of the
bank.
Mr. Mills becomes chairman of the
board and O. B. Silvey, formerly presi
dent of the Daly Bank and Trust Com
pany, Anaconda, Montana, president of
the new Banco affiliate. J. E . Vogel,
cashier, was promoted to vice presi
dent. Other officers retain their posts.

49
Dakota, is new president of the Sioux
Falls Clearing House Association. W.
W . Baker is association vice president
and W . C. Duffy is secretary-treasurer.
Mr. Baker is president of the First
National Bank & Trust Co. Mr. Duffy
is president of the Union Savings
Bank.

South Dakota

NEWS
A. E. DAHL
President
Rapid City

Director at Rapid City

and their families, held a picnic at
Lake Louise last month. A steak fry
was enjoyed and the evening spent
informally.

New director of the First National
Bank of the Black Hills in Rapid City,
South Dakota, is Robert E. Driscoll,
Jr. He was elected recently at the
Report Bank Remodeling
directors’ regularly monthly meeting
Plans for a $65,000 enlargement and
to succeed the late George Philip.
The new director is the third gen remodeling job on the Farmers and
eration of Driscolls to serve as a direc Merchants Bank at Huron, South Da
tor of the bank. He is the grandson kota, were reported last month, al
of the late Robert H. Driscoll, former though the bank president, William
president of the bank, and son of M. Griffith, said plans still are indefi
Robert E. Driscoll, Sr., the bank’s cur nite. The reported alterations would
include a 75 by 25 foot section on the
rent president.
Born in Lead in 1916, Mr. Driscoll rear of the building with a basement.
graduated from Lead high school. He General remodeling, plus the addition
obtained his A.B. degree from Stanford of new vaults, are included in the
University, Palo Alto, California, in plans.
1937. Following graduation he worked
for the American Colloid Company in
S i o u x F a ils N e w s
Chicago for two years before deciding
O. ENGEN, vice president and
to become a lawyer.
cashier of the Union Savings
He was an honor student at the
University of Colorado law school, Bank, accompanied by Mrs. Engen,
Boulder, from which he received his has returned from a five-week vaca
tion at various California points in
law degree in 1941.
Mr. Driscoll joined the army in 1942, cluding Los Angeles and San Bernar
received his discharge in 1945. Shortly dino.
afterwards he became an active part
Edna Jensen has taken a threener in the Rapid City law firm of
month leave of absence from her du
Philip, Leedom and Driscoll.
ties at the National Bank of South
Dakota in order to visit with relatives
With Frederick Bank
and friends in Denmark. She sailed
Kenneth Trapp of Milbank, South from New York City on the Gripsholm.
Dakota, who has been an examiner for This is Miss Jensen’s first trip to the
the National Banking Department for homeland of her parents, Mr. and Mrs.
more than a year, and who was pre- Hans Jensen, Viborg.
viously employed by the First Nation
al Bank there, will soon re-enter the
Robert Duane Scott, 23, an employe
banking business.
in the transit department of the First
He has accepted a position with the National Bank & Trust Co., was strick
bank at Frederick, South Dakota, start en last month by a fatal illness. Heart
ing June 12th. He will replace one trouble was given as the cause of his
of the owners of the bank, who wishes death. His home was at Crooks,
to retire.
where his parents, Mr. and Mrs. Mel
vin Scott, live.

Bank Employes' Picnic
Twentv-two employes of the First
National Bank of Miller, South Dakota.

The will of the late W illiam C. H ol
pioneer Sioux Falls banker and
realtor, was admitted to probate court
and the son, W illiam G. Hollister, was
named administrator of the estate.
Testimony of appraisers set the value
of the estate at approximately $225,-

lister,

F. J. Cinkle, vice president and cash
ier of the National Bank of South

000.

The story of Sioux Falls banking
activity is part of the new history of
Minnehaha county written by C. A .
Smith, local historian and lifelong
resident of the county. Banking firms
are prominent among the business in
stitutions treated by Smith in his his
tory, the first one of Minnehaha coun
ty to be published in nearly 50 years.
John S. Hinman, assistant cashier
of the Northwest Security National
Bank, was in Dallas, Texas, for the
lith mid-continent regional confer
ence of the National Association of
Bank A u d ito rs and Comptrollers.
Adolph Liodmell, vice president and
assistant trust officer of that bank,
attended the secretaries’ council of
the National Association of Real Es
tate Boards in Chicago.
Arthur B. Cahalan, Jr., of Miller,
South Dakota, has entered the employ
of the Northwest Security National
Bank. A recent graduate of North
western University, he is the son of
A rthur B. Cahalan, Sr., chairman of
the board of directors of the First Na
tional Bank of Miller and a former
president of the South Dakota Bank
ers’ Association.

A Herring-Hall-Marvin rush hour
depository has been installed in the
lobby of the Northwestern Security
National Bank.

Council Secretary
Herbert V. Prochnow, vice president
of The First National Bank of Chi
cago, recently was elected secretary of
the Federal Advisory Council of the
Federal Reserve System.

THE NATIONAL BANK OF SOUTH DAKOTA
H uron
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Sioux Falls

Verm illion

Affiliated with FIRST B A N K STOCK CORPORATION
N o r t h w e s t e r n Banker, June, 1948

South Dakota News

MORE MINNESOTA NEWS
Buys Belview Bank
H. S. Aamoth, executive vice presi
dent of the Landmands National Bank
of Kimballton, Iowa, has purchased
controlling stock in the Belview State
Bank and the residence property of
Walter C. Dahl in Belview, Minnesota,
and will move his family to Belview
about June 15th, succeeding Mr. Dahl
as cashier and active manager of the
bank. Upon the advice of his physi
cian, Mr. Dahl is retiring from active
business and plans to move to Cali
fornia this fall.
Mr. Aamoth, a native of northwest
ern Minnesota, began his banking ca
reer at Flom, Minnesota, in August,
1925. He moved to Iowa five years
later and entered the employ of the
Citizens Savings Bank of Hanlontown,
Iowa. In 1936 he moved to Thornton,
Iowa, and to Kimballton in 1943, where
he has since been executive vice presi
dent of the Landmands National Bank.

position as cashier of the National
Bank of Jamestown, North Dakota.
Harry M. Mackenzie, president of
the First National, announced that
Richard B. Jude will take over Mr.
Kallestad’s position as manager of the
bank’s Timepay Bank Credit and in
stallment loan department.
A native of Blue Earth, Minnesota,
Mr. Kallestad began his banking ca
reer there in 1927 with the First and
Farmers National Bank. He went to
the First National Bank of Mankato
as auditor in 1942, and was elected an
assistant cashier in 1945. Active in
civic affairs, he has been a member
of the Mankato Toastmasters Club and
a director of the Mankato Credit Bu
reau.
Mr. Jude went with the First Na
tional of Mankato in 1939 from Maple
Plain, Minnesota, and has been auditor
of the bank the past year. During
the war he served four years in the
Army. Assigned to a tank destroyer
unit, he held a captaincy at the time
of his discharge.

He is the son of R. L. Griggs, chair
man of the bank’s board.
The post of secretary had been held
by S. R. Kirby, Jr., who resigned the
position to devote full time to his
duties as a vice president of the bank.
During World War II, Mr. Griggs
served three years in the United States
Navy. He was formerly assistant vice
president of the Duluth National Bank
and prior to that attended Dartmouth
College and the University of Minne
sota.

Wanamingo Bank High
One of Minnesota’s strong “ Honor
Roll Banks” is the Security State Bank
of Wanamingo, which has surplus,
profits and reserves of almost $65,000,
with capital of $40,000.
Total assets of the Security State
are $2,103,583, according to its last
statement.
Security State Bank officers include
A. K. Syverson, president; E. E. Sevareid, vice president; P. J. Langeness,
vice president; C. D. Olson, cashier,
and O. E. Naeseth, assistant cashier.

Promote Duluth Bank
Resigns at Mankato
Announcement was made last month
that A. L. Kallestad, assistant cashier
of the First National Bank of Mankato,
Minnesota, has resigned to accept a

H. Warner Griggs has been named
secretary of the Northern Minnesota
National Bank of Duluth, Minnesota, it
was announced last month by Lewis
G. Castle, bank president.

Purchase Hopkins Bank
Sale of a controlling interest in the
First National Bank of Hopkins, Min
nesota, to First Bank Stock Corpora
tion was announced recently by F. H.

We Salute Our Banker Friends
A C H IE V E M E N T
(Grow th in Assets)
January 1921, $9,777

January 1922, $74,273
January 1924, $ 1 5 9,904

January 1928, $256,039

J a n u a ry 1931, $548,711

January 1934, $713,967

J a n u a r y 1 9 3 7 , $ 1 ,0 5 5 ,8 9 6
J a n u a r y 1 9 4 2 , $ 2 ,3 9 4 ,4 1 0

January 1945, $4,246,784

January
,$ ,
January 1948, $7,517,161
1

, 4

POLICYHOLDERS NATIONAL LIFE INSURANCE COMPANY
Home Offices: Fourteenth Street - Main Avenue, Sioux Falls, South Dakota
N o r t h w e s t e r n B a n k e r, J u n e , 1948

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Federal Reserve Bank of St. Louis

51
Q n v s ià liq a iji

VyiriJwdà

FOR

BANKS

Modern banks recognize the necessity for
modern banking methods. In every bank —
from metropolitan institutions to small town
banks—errors can be eliminated, time can be
saved, expense can be reduced, efficiency can
be increased by replacing slow, laborious, mis
take-laden hand work with speedy, error-proof
machine methods.

The 100 largest banks and thousands of small
er ones are taking advantage of the economies
afforded by Addressograph equipment.
These banks handle their business forms 10,
20, even 50 times faster with Addressograph
than by hand or typewriter methods.
DEPOSITORS' STATEMENTS
LEDGER SHEETS
SERVICE CHARGE FORMS
TRANSIT LETTERS
ENVELOPES, CARDS, CIRCULARS
INTEREST NOTICES
CREDIT ADVICES
BULLETINS
ANNUAL REPORTS
DIVIDEND CHECKS AND REGISTER
PROXIES
STOCKHOLDER NOTICES
TRUST DEPARTMENT FORMS
COUPON ENVELOPES, ETC., ETC.

Class 1900
Addressograph

Models in this class of electrically-driven Addressographs offer users the full range of versatility of
Addressograph methods, reducing expense and pro
tecting profits and revenues in all kinds of business.
In addition to providing all fundamental advan
tages of Addressograph methods, Class 1900 models
em body latest engineering developments which in
sure trouble-free production, quietness of operation,
and convenience and comfort for the operator.
The machines introduce the desk-type design, with
mechanism enclosed and large, unobstructed tabletop.

Operating speed is 100 impressions a minute.

and all other repetitive writing
100% ACCURACY AND UNIFORMITY ASSURED

The Addressograph representative will be
glad to give you complete information

Class 900
Addressograph
with Double Pedestal Desk
Lowest-priced e l e c t r i c
Quiet

1416 Howard St.
OMAHA 2, NEBR.
FIRST NAT'L BANK BLDG., LINCOLN 8, NEBR.

Noiseless

Simple

roller

model.

. .

platen

Fast.
action

makes sharp, distinct impressions.

106 W . 8TH STREET, SIOUX FALLS, S. DAK.

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, J u n e , 1948

South Dakota News

Kriz and W. A. Zastrow, chairman and
president of the bank, respectively,
and by A. H. Kennedy, president of
the corporation.
The sale culminates negotiations
which have been in progress for some
time. Through the purchase of this
interest by First Bank Stock Corpora

WHEN Y O U

tion, the Hopkins bank becomes affili
ated with 74 other prominent banks
operating 79 banking offices in Minne
sota, North Dakota, South Dakota and
Montana. Among these banks is the
First National Bank of Minneapolis.
Relations of customers with the
bank will not be altered in any way,

THINK OF RAPID CITY— the gatew ay to the

beautiful Black Hills of South Dakota—
YOUR THOUGHTFULNESS in sending your customers and
friends to the Rapid City National Bank will alw ays have our
sincere appreciation.

Mr. Kriz and Mr. Zastrow stated. No
changes of officers or personnel are
contemplated.
Founded in 1905, the First National
is Hopkins’ oldest bank and the largest
in rural Hennepin county. Through
the years it has experienced steady
growth and now has a capital struc
ture totaling $214,476 and deposits of
$3,874,000.
Officers of the bank, in addition to
Mr. Kriz and Mr. Zastrow, are O. G.
Cermak, vice president; S. H. Sever
son, cashier, and Mrs. D. M. Bergmann
and William L. Moran, assistant cash
iers. Directors include George W.
Brum, Dr. J. Clute Bryant, Mrs. Angeline B. Souba and Messrs. Kriz, Zas
trow, Cermak and Severson.

THE RAPID CITY NATIONAL is owned and thoughtfully man
aged by local people. From a small beginning 14 years ago, the
Rapid City National is today a Twelve Million Dollar institution
and the busiest bank in town.
OUR LATCH STRING is alw ays out to bankers visiting the
Black Hills. W e will be happy to have you call and our friendly
doors will alw ays swing wide for you.

The Rapid City National Bank

Heads Mower County
G. S. Hanson, cashier of the Farmers
State Bank at Elkton, Minnesota, was
elected president of the Mower County
Bankers Association at a recent meet
ing.
Vance Torgerson, cashier of the
Farmers State Bank at Adams, was
chosen vice president, and R. F.
Lichty, vice president of the First
National Bank of Austin, secretarytreasurer.

Member Federal Deposit Insurance Corporation

NEWS AND VIEWS
(Continued from page 24)

(D u b

a u d ite d ,. .

L e d t

to all Midwest Bankers
fo r your 1948 convention

George L . McCarthy, the hand
some president of the Recordak Cor
poration, just celebrated the 20th an
niversary of the launching of this or
ganization which he founded that
many years ago. About one-half of
all the banks in the United States are
now using Recordak equipment.

We invite you to visit our plant
the next time you are in Sioux Falls
T O U R S 9:3 0 A .M . AN D 1:00 P.M . E X C E P T
S A T U R D A Y A T 9:30 A .M . O N LY

Jo h n M o r r e l l &
Established in England in 1827
S i o u x

• •

a l l s

Co.

In America since 1865

QUEEN CITY FIRE INSURANCE COMPANY
SIOUX FALLS

1905

D. P. LEMEN, President

Forty-three years o f service

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

Gross income for the company for
the first 3 months of this year from
all sales and services was $21,625,000
compared with $13,938,000 for the same
period last year. ,

SOUTH DAKOTA

1948

A . G. Sam, president of the First
National Bank in Sioux City, has been
making fine progress with his institu
tion, and in his report of April 12,
1948, the First National had a capital
of $400,000 and surplus and undivided
profits of $514,000.
Deposits have grown from Decem
ber 31, 1940, when they were $6,873,000 to April 12, 1948, when they were
$19,109,000.
The other officers of this very fine
bank include: J. T. Grant, vice presi
dent; J. R. Craning, cashier; and E. A .
Johnson, H . H . Strifert, K . J. Shannon,
AV. L. Tem ple, assistant cashiers, and
J. Ford W heeler, auditor.

South Dakota News

Oldest Packing Firm
John Morrell & Company, packers of
beef, pork and lamb, is the fifth largest
and by far the oldest packer in the
United States. Its beginning dates
back to 1827 in the city of Bradford,
England.
In 1868 the company established its
first American packing plant in Lon
don, Canada, followed by one in Chi
cago in 1871. In 1877 operations were
commenced in Ottumwa, Iowa, where
the general offices are still located. In
1909 a plant was established in Sioux
Falls, South Dakota, and another in
Topeka, Kansas, in 1931. At the pres
ent time John Morrell & Company has
three packing plants a n d sixteen
branch houses employing approxi
mately 10,000 people. In addition the
company still has subsidiaries in Eng
land.
Today the large plant at Sioux Falls
is one of the most compact, sanitary
and up-to-date packing plants in the
world, with facilities for killing 6,000
hogs, 900 cattle and 2,000 sheep daily.
This plant has five branch houses and
200 salesmen covering the northern
half of the United States, as well as
many southern points, and ships ap
proximately 10,000 carloads of prod
ucts each year. For its employes, the
company maintains a modern, wellequipped first aid department, with
physician and nurses; a modern cafe
teria; a monthly Morrell Magazine; a
sports program; vacation with pay;
free life insurance; a mutual aid asso
ciation, and a retirement income plan.

BANK MACHINE SURVEY
(Continued from page 19)
have not decreased our help since in
stalling it, it has not been necessary
to increase our force, and even with
inexperienced help we are able to do
our work easier and faster. We have
had but one service call in eighteen
months.
“ We have also installed National
Cash Register flat posters. We believe
all posting machine manufacturers
will eventually come to them. The
posting is absolutely uniform, but the
main advantage is that with the rapid
turnover of help that most banks have
had since the war an inexperienced
operator can learn to operate the ma
chine readily. The ledger sheet is
placed on the table of the machine in
the same position each time, and you
have merely to push a key for a check,
a deposit, or a balance and don’t have
to worry about the carriage being in
the right position. Also, there is no
worry about the alignment. It is not
necessary that you place the checks
and deposits in the machine in any
certain manner, which permits the

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Federal Reserve Bank of St. Louis

Convention Greetings
Officers and Directors of this bank and its branches in
BROOKINGS,

CHAMBERLAIN,

DELL

RAPIDS,

GREGORY,

HURON and M AD ISO N extend warm greetings to our m any
friends and customers in South Dakota and adjoining states
who will attend the 1948 loint Convention of the . . .
SOUTH DAKOTA
AND
NORTH DAKOTA
BANKERS ASSO C IATIO N S
. . . to be held June 11-12 in the Twin Cities . . .

Remember, too, that your correspondent account is welcome
here at "South Dakota's Leading Bank!"

NORTHWEST SECURITY
NATIONAL BANK
of S i o u x Fal l s , Sout h Dakot a
C a p it a l Funds $ 2 ,0 00 ,0 00.00
A ffilia te d w ith N o r t h w e s t B a n c o r p o r a tio n
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n

I^ jduA , disijou d qu a A t& L àu ß & i.

Stationery

Office Supplies

Printing

Office Furniture

Midwest-Beach Company
222 South Phillips Avenue

Sioux Falls, South Dakota

N o r t h w e s t e r n B a n k e r, J u n e , 1948

South Dakota News

posting of a check and a deposit and
back to a check again where one has
been overlooked without the moving
of any carriage. We find our errors
have decreased and feel that this is
due to the simplicity of the operation
of the machine. In the past we were
using two machines and have in
creased this to three, thereby lighten
ing the work on any one operator and
making her available for other work.
“We have installed a new Addressograph which we use for heading our
statement sheets. We keep our plates
up to date at all times, ordering plates
monthly before new statements are
made up. Our statement sheets are
headed in three places: on the state-

F R O M T H E O R I E N T —-An ancient
oriental
calculating
device
fits
strangely into modernistic surround
ings at The City National Bank and
Trust Company of Kansas City,
Missouri, where B ru ce Johnston,
and his assistant in the bank’s for
eign department, M iss P a t r ic ia H unt,
are shown operating an abacus. The
machine, an arrangement of wooden
beads on eleven rods, was sent to
Johnston by a Hong Kong banker,
with whom he has had dealings.

D ie b o ld
I

ment, on the service charge attached
to the statement, and also on the anal
ysis of the account. In that way our
service charge slip is headed when the
statement is made up.
“With our installations we feel that
we have been able to maintain a high
er standard of bookkeeping and also
make our bank a better place for
everyone to live and work.”

Now includes

York Vaults—McClintock Alarms
Canton 2, Ohio

★
BANK VAULT E Q U IP M E N T
BU RG LA R ALARM S • SAFES,
C H E S T S A N D VAULT DO O R S
MICROFILM • ROTARY, VERTICAL

W. R. STORRS

AND VISIBLE FILING EQUIPMENT

A s s is t a n t C a s h ie r, C it y N a tio n a l Bank
(P o p u la tio n 43 ,0 0 0 — D ep o sits $ 9 ,9 7 0 ,0 0 0 )
C o u n c il Bluffs, Io w a

★
N a tio n -w id e Service

“We are a bank with between 10
and 11 million dollars of total assets.
We are fully mechanized in the fol
lowing departments:
“ (1) Commercial bookkeeping de
partment, with four posters and neces
sary adding machines.

by Factory Trained Exp erts

F a c t o r y B r a n c h e s in
C H IC A G O , DES M O IN E S
and S T . P A U L

a n k s

a n d

a n k e r s

will find this

institution especially well equipped to handle
tlieir Chicago accounts. Our complete facilities
are at the disposal of all in need of this service.

C ity

N a tio n a l

B an k

AN II TRUST COMPANY o f C h ic a g o
2 08

SOUTH

( M EM B ER FEDERAL

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

LA S A L L E
DEPOSIT

STREET

INSURANCE

CORP.)

“ (2) Proof department, with a cen
tral proof machine and a portable add
ing machine.
“ (3) Installment loan department,
with a window posting machine and
an adding machine.
“ (4) Discount and FHA department,
with a special eight register machine
for posting liability and FHA ledgers,
plus needed adding machines.
“ (5) Savings department, a window
posting machine and auxiliary adding
machine.
“ (6) Transit department, a Micro
filming machine, an adding machine
and an endorsing machine.
“ (7) Miscellaneous with a postage
meter, a portable electric check can
celling machine, an Addressograph
other necessary adding machines, dic
tating machines, typewriters, etc.
“ Much of the above equipment has
been purchased and installed in the
past two and one-half years. The com
mercial posting machines and the
check cancelling machine are replace
ments of former equipment. Most of
the others are new additions, installed
because of a carefully thought out pro
gram of mechanization. We are con
fident that we now have equipment
that will make for a flexible set-up,
permitting use of a minimum staff
and tending toward greater accuracy,
speed and better customer reaction.
“ The installation of a central proof
machine and microfilming equipment
produced tangible savings greater than
we had anticipated. Prior to the in
stallation we were using four full-time
employes and one part-time employe
in our combined proof and transit de
partment. In spite of an increased vol
ume over the time of installation we
are now operating the department
with only two full-time employes. Fur
ther consolidations can be made in
event of a sharp slump in volume. To
detail all the results obtained from
modern machinery and how they were
accomplished would require writing a
manual of our operations. Suffice it to
say that our program is functioning
satisfactorily with but a few kinks to
be ironed out. Anyone wanting more
detail is Welcome to write or visit us.
“ To use mechanical equipment to its
greatest advantage requires a study of
the capacity and adaptability of the
machines used. Bank accounting ma
chines appear expensive. A machine
that is not producing near its capacity
or that is not used for nearly all the
operations to which it is adaptable, is
not paying the return on the invest
ment that it should. We watch our
operating methods closely and are fre
quently experimenting with new ideas.
The results are sometimes quite sur
prising.”

North Dakota

NEWS
F. A. FOLEY
President
Rolla

New Cashier at Walhalla
Ed Lorenz has been named cashier
of the Walhalla State Bank at Wal
halla, North Dakota, succeeding L. C.
Fischer who was elected vice president
of the bank. S. A. Fischer remains
president of the Walhalla institution.
Mr. Lorenz had been employed by
the bank previously and before his
first affiliation with the Walhalla State
Bank had worked for the Northwest
ern Bank at Langdon, altogether ac
counting for 12 years of banking expe
rience.
More recently he had been associ
ated with the Walhalla Motor Com
pany and has served on civic and so
cial committees.

C. C. WATTAM
Secretary
Fargo

vice president of the Bank of Hazelton, North Dakota, has been in charge
of the bank while Cashier Herman
E. Klaudt was on vacation on the
west coast.
Mr. Meier bought controlling inter
est in the bank the first of this year.

Resigns at Jamestown
George Anderson has resigned his
position as cashier of the Jamestown
National Bank at Jamestown, North
Dakota, to accept a position with
Warner and Company in Fargo. Mr.
Anderson has been cashier at the bank
for seven years. At the same time he
announced his resignation as company
commander of Company H of the Na
tional Guard in Jamestown.

Former Governor Dies
Former North Dakota governor and
congressman, Louis B. Hanna, died at
his home in Fargo recently. Mr.
Hanna had been ill during the past
few months but more recently was re
ported in better condition.
Early in his business career he
founded the private bank in Page
which later became the First National
Bank of Page. In June, 1889, he was
elected to the vice presidency of the
First National Bank of Fargo, which
relationship he maintained for several
years before selling his interests. He
also served a six-year period as a
director of the Federal Reserve Bank
of Mineapolis. After a number of
years of public service in North Da
kota as state representative and sena
tor, he was elected congressman at
large from North Dakota in 1909 to
the United States Senate. In 1913 he
was elected governor of North Dakota,
being re-elected to a second term which
was completed in 1917 when he en
tered Red Cross service as a volunteer
foreign service executive field direc
tor. For his services in France he
was decorated by the French govern
ment.
Mr. Hanna held wide land and finan
cial interests throughout North Da
kota and the Pacific Northwest and
was reputed to be one of North Da
kota’s richest men.

Manages Bank

JO IN T CONVENTION
(Continued from page 21)

Friday Evening, June 11th
For the Ladies
6:30-7:10 Assemble in Traffic Club
rooms off lobby of Nicollet Ho
tel.
7:10-7:20 Busses leave for Woman’s
Club, 410 Oak Grove Street.
8:00 Welcome on Behalf of Twin

City Clearing House Banks—M.
O. Grangaard, vice president,
First National Bank, Minneap
olis.
8:05 Presenting Fashions in Loveli
ness, with demonstrations in
hairstyling and make-up—Myndall Cain.
9:00 Arleth Hasberle, Radio Person
ality of Radio Station WCTN.
9:30 Intermission
9:45 Refreshments.
10:15-10:30 Busses leave for hotels.

Saturday Afternoon, June 12th
12:15

Luncheon and Style Show —
Young-Quinlan, 901 N i c o l l e t
Avenue, L i t t l e Auditorium,
Fourth Floor.

Director of Chase National
Leroy A. Lincoln, president of the
Metropolitan Life Insurance Company,
was elected a director of the Chase
National Bank at a recent meeting of
the Chase board, it was announced by
Winthrop W. Aldrich, the Chase chair
man. Mr. Lincoln succeeds Frederick
H. Ecker, chairman of the Metropoli
tan Life, who had been a member of
the Chase board for 31 years prior to
his resignation. Mr. Ecker will main
tain his close affiliation with the Chase
National Bank by serving as a mem
ber of the real estate committee of
the bank and as a member of the ad
visory committee of the bank’s Metro
politan Branch.
In accepting Mr. Ecker’s resigna
tion, the board passed a resolution of
appreciation for his unique and out
standing service to the bank.
Mr. Lincoln has been president of
Metropolitan Life since 1936 and an
officer of the company for 30 years.

dnnjouncinq^
DUR 70th ANNIVERSARY
Organized in 1878, the FIRST NATIONAL BANK AND
TRUST C O M P A N Y of Fargo, is proud of its continuous
association with the other banks of North Dakota. W e
are looking forward to meeting old friends and making
new acquaintances at our convention in the Twin Cities,
June 11-12.

The First National Bank j i Trust Company
OF FARGO, NORTH DAKOTA
Member Federal Deposit Insurance Corporation

During the past month, Ben Meier,

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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, J u n e , 1948

FOR 92 YEARS
SOUND BANKING SERVICE

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

Speaks at Convocation
Richard W. Trefz, president of the
Beatrice State Bank at Beatrice, Ne
braska, was the principal speaker at
a Doane College student convocation
recently.
His subject was “America’s Chance
and Challenge.”

Nebraska

NEWS
CARL G. SWANSON
Secretary
Omaha

J. O. PECK
President
Columbus

J. J. DeLay, president of the DeLay
National Bank of Norfolk, Nebraska,
whose first job in a bank paid him $15
a month, was showered by his friends
with letters, telegrams and bouquets
last month in observance of his fortyfifth anniversary in the banking busi
ness. DeLay bank employes presented
him with an attractive lamp.
His first job was assistant cashier
in the Dixon State Bank. Soon after
beginning that work he was given an
increase in pay to $25 a month. In
addition to his pay he was permitted
to sleep in the bank building.
He later was employed by the Hay
den State Bank and Corn Exchange
National Bank at Omaha, and from
1912 to 1917 was with the state bank
ing department in South Dakota. He
first became a bank president in 1917,
the institution being at Beresford,
South Dakota.
Mr. DeLay opened the DeLay Na
tional Bank, one of the leading finan
cial institutions in that section of the
country, in 1930. He is also president
of the First National Bank at Beres
ford and the Bank of Madison, Ne
braska. Deposits in the DeLay Nation
al Bank are approximately $10,000,000
and combined deposits of the three
banks are about $15,000.000.
Mr. DeLay has in the past organized
a number of banks in South Dakota.
Iowa and Nebraska, all of which hold
the distinction of having paid deposi
tors 100 cents on the dollar.
As a young man his ambition was
to be a doctor. After spending several
years studying medicine he changed
his plans and became a banker, at
which he has been highly successful.

Frans Nelson

Mr. Nelson was born in Sweden,
moved to the United States with his
parents, settling in Cedar county, and
was reared in that section of the coun
try. After receiving a college educa
tion at Yankton, South Dakota, he re
turned to Nebraska, later becoming
affiliated with the First National Bank
in Hartington where he served as cash
ier and president.
During his banking career he estab
lished a number of banks in Nebraska,
and in 1910 founded the Common
wealth Life Insurance Company and
the Commonwealth Building and Loan
Association, both with headquarters in
Omaha. Upon his retirement in the
early 1920’s, he moved to California
where he again went into business,
this time engaging in real estate trans
actions and building of new housing
subdivisions. In California he was
chairman of the Eagle Oil and Refin
ing Company.

Takes Navy Course

W. W. (Bill) Cook, cashier of Bea
trice National Bank of Beatrice, Ne

M. C. Bonham, assistant cashier at
the State Bank of Table Rock, Ne
braska, spent two weeks at Fort Leav
enworth, Kansas, last month, taking a
refresher course in the Navy school
there. Mr. Bonham, whose rank in
the U. S. Naval Reserve is lieutenant,
is in charge of Naval Reserve activity
in his section of the state.

Did you know that adoption o f our Cash Letter
insurance enables you to dispense with detailed
Cash Letter transcripts and keep only a duplicate
adding machine tape? Ask us for details.

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Federal Reserve Bank of St. Louis

B U IL D IN G

Lincoln Figures Up

Frans Nelson, 88, former pioneer
resident of Hartington, Nebraska, and
Cedar county, died at his home in Long
Beach, California, recently. He was
quite prominent in Nebraska financial
circles for a number of years.

On Beatrice School Board

N A T IO N A L , B A N K

Christopher J. Abbott, Hyannis, Ne
braska, rancher and banker, was
elected one of the two vice presidents
of the United States Chamber of Com
merce in Washington, D. C., recently.
Emil O. Shreve, vice president of
General Electric, was re-elected as
president.

braska, was elected head of the school
board to succeed Andrew Overgard
who resigned after 16 years.

Honor J. J. DeLay

F IR S T

C. J. Abbott Honored

•

C H IC A G O

Bank clearing figures in Lincoln,
Nebraska, for the month of April to
taled $28,726,245, an increase of $507,731 over the March total, and a jump
of $1,519,590 over April of last year, the
Lincoln Clearing House Association
disclosed last month.
Clearings for the first four months
of 1948 amounted to $114,523,060, as
compared with $109,397,369 for the
same period in 1947.

Resigns at Columbus
J. O. Thielen has resigned as a teller
in the Central National Bank at Co
lumbus, Nebraska, after more than 12
years of service in that capacity. He
and Mrs. Thielen and son, Robert, have
left for Berkeley, California, where
they expect to make their home.
Succeeding him as teller at the Cen
tral National is Oliver Barjenbruch
of Leigh, who has had seven years of
experience in the Bank of Leigh from
which he resigned a few weeks ago.

New Bank at Franklin
Recently the stockholders of the
proposed new bank at Franklin, Ne
braska, met and elected officers. The
bank has been named the Campbell
State Bank.
The following stockholders were
elected as directors: Earl VanSteenberg, Guy Danker, Dr. L. S. McNeill,
Leo L’Heureux and Oliver Collison.
The board of directors elected Dr.
L. S. McNeill, president; Leo L’Heu
reux, vice president, and Earl VanSteenberg, cashier.

Scarborough & Company
Insurance Counselors
3, I L L I N O I S

STATE

to Banks

4325

N o r t h w e s t e r n B a n k e r, J u n e , 1948

Nebraska News
Fred W allace of Gibbon is chairman
of the board of the Omaha Branch,
which serves Nebraska and Wyoming.
Mr. Seacrest’s appointment was an
nounced by the Federal Reserve Board
in Washington.
Omaha banks handled check trans
actions totaling $1,428,579,000 in the
first three months of 1948. This was
a gain of 5.1 per cent over the first
quarter of 1947.

president
of the Douglas County Bank of
Omaha, who is chairman for Douglas
County of the Security Loan Drive,
has named W . Dean Vogel, vice presi
dent of the Live Stock National Bank
of Omaha, as chairman of the com
munity division of the county cam
paign. Representatives of 15 Omaha
service clubs attended a meeting in
Omaha to stimulate the sale of United
States Savings Bonds.
T. F . Green, cashier of the Bank of
Valley, was named county chairman
of rural solicitation. He held a sim
ilar post in the major war loan drives.

ENNETH

G. H A R V E Y ,

The Money-Sunk Investors were
hosts recently at their annual dinner
for wives of members. The event was
held at the Omaha Club.
president of the
Packers National Bank of Omaha, has
been elected president of the Omaha
Chapter of Te Deum.
A rthur L .

Coad,

Daniel J. Monen, vice president in
charge of the trust department of the
Omaha National Bank, addressed the
Creighton University School of Law
in Omaha at the first of a series of
three lectures on the practical appli
cation of trust administration. He is
vice president of the Creighton Alum
ni Association.

Nine members of a four-state pro
cedure committee were appointed by
E . N. Van Horne, president of the Fed

o r t h w e s t e r n B a n ke r, J u n e , 1948
Digitized for N
FRASER
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eral Land Bank of Omaha, to meet in
Omaha to present the views of the 200
national farm loan associations in
Nebraska, Iowa, South Dakota and
Wyoming. Each of the nine is a sec
retary-treasurer of a cooperating farm
loan association.
John H. Patton, son of Dr. J. M.
Patton and formerly asociated with
Burns, Potter & Co., Omaha invest
ment bankers, has joined the Omaha
office of the investment firm of Paine,
Weber, Jackson & Curtis, according to
W ilb ur Fullaw ay, manager of the
firm’s Omaha offices. Mr. Patton is a
graduate of Grinnell College. The
Omaha office of Paine, Weber, Jackson & Curtis is sales headquarters for
the company’s Omaha district.

The Nebraska Investment Bankers
Association at its recent meeting in
Omaha elected the following directors:
James McCloud, president; vice pres
idents, H a r o ld Polian, Ferdinand
Sinola, Raymond McGrath and Cecil
Slocum.
Warren Chiles was named secretary
and Edward Sorensen, treasurer.
Joseph W . Seaerest of Lincoln, co
publisher of the Nebraska State Jour
nal there, has been named a director
of the Omaha Branch, Federal Re
serve Bank of Kansas City.
Mr. Seaerest succeeds L . E. Kurtz,
president of Fairmont Foods, Inc., of
Omaha. Mr. Seacrest’s term will con
tinue until December 31, 1949.

McGaffin and W illiam
elected to the board of
governors of the Omaha Chapter,
American Institute of Banking, at the
annual meeting recently.
Christina
Feser were

John Lauritzen, assistant vice presi
dent of the First National Bank of
Omaha, has been named treasurer of
the Omaha campaign committee of
the Crusade for Children. Howard
Drew is co-chairman of the Omaha
drive.
Ray R. Ridge, a senior vice presi
dent of the Omaha National Bank, was
one of three Nebraskans who invited
Baron Silvercruys, Belgian ambassa
dor to the United States, to attend
the Thirty-fifth Division Reunion in
Omaha early in June. Mr. Ridge, as
president of the Omaha Chamber of
Commerce; Oliver Roberts, Chamber
general manager, and Senator Hugh
Butler of Nebraska issued the invita
tion in Washington.
The ambassador told the group he
hoped to attend, possibly accompany
ing President Truman to Omaha.
Richard H . M allory, a vice presi
dent of the United States National
Bank and president of the Omaha
Downtown Kiwanis Club, and Victor
L. Toft, Kiwanis vice president, will
be delegates to the thirty-third annual
convention of Kiwanis International
June 8-10 in Los Angeles.
Mrs. Victor B. Caldwell, Jr., wife of
a vice president of the United States

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V IC E P R E S ID E N T

Nebraska News
National Bank of Omaha, and Mrs.
Dale Clark, wife of the president of
the Omaha National Bank, were elect
ed vice president and treasurer, re
spectively, of the Omaha Tuesday Mu
sical Club at the annual meeting. Mrs.
Herbert H. Davis was elected presi
dent. The meeting was held at the
home of M rs. Roy Page. Mrs. Clark
is beginning her second year in office.
Marshall C. Dillon, master teller of
the Live Stock National Bank, was
elected assistant cashier at a recent

formation of a procedure committee
to review a report now being under
taken on the Chest and its 31 agencies.

They included A . G. Brown, deputy
manager of the American Bankers As
sociation; C. W. Bailey of Clarks
ville, Tennessee, past president of the
A.B.A.; Darryl R. Francis, agricultural
economist for the Federal Reserve
Bank of St. Louis, Missouri; W . W .
Campbell, past president of the Ar
kansas Bankers’ Association and vice
president of the A.B.A., and O. Dooley
Dawson, vice president of the Second
National Bank of Houston, Texas.

W . Dale Clark, president of the
Omaha National Bank, will head the
procedure committee. It will review
the survey of Chest activities being
completed by the Citizens’ Service
Committee. Allen T. Hupp is chair
man of the service group.

District stockholder meetings of the
Omaha Bank for Cooperatives were
held recently at Columbus, Kearney
and Fairbury. President T. F . Tobin
said that managers and directors of all
co-ops were invited.

The Omaha City Council has given
permission to the Omaha National
Bank to construct a sidewalk with
built-in heating pipes on the west side
of the bank building.
The installation, which City Build
ing Engineer Rodman Brown called
the first of its kind in Omaha, will pre
vent ice from forming and will thaw
snow.

To mark their silver wedding anni
versary, Mr. and Mrs. Ray R. Ridge
recently were hosts at a cocktail party
at the Omaha Club. Mr. Ridge, a
senior vice president of the Omaha
National Bank, is president of the
Omaha Chamber of Commerce.

President V . J. Skutt of the Omaha
Community Chest has announced the

JPul (Dominant (Banking
(publication, in, thsL
M A R SH A LL C. D IL LO N
Promoted at Live Stock National

directors’ meeting. Mr. Dillon, a na
tive of Omaha, has a service record of
33 years with the Live Stock National
Bank. Entering the bank’s service as
statement clerk, he was appointed
master teller in 1938.
He is married and has two daugh
ters, Mrs. James P. Fabick of Des
Moines and Mrs. Richard Q. Crotty of
St. Louis, Missouri.
Bankers were among the speakers
at the National Conference on Land
Use in Omaha recently. They took
part in a series of forum discussions.

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(Publishers also of UNDERWRI TERS REVI EW . . . I OWA - NE B R AS K A BANK
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ASST. CASH IER

ASST. CASHIER

ST. JOSEPH, MO.
Member Federal Deposit
Insurance Corporation

N or.'hv/esforn Bcin'.ier, June, 1948

Nebraska News

Kenneth G. H arvey, president of the
Douglas County Bank of Omaha in
suburban Benson, has been named
Douglas County advisory chairman to
the United States Savings Bond Divi
sion. Allen T. Hupp is state advisory
chairman.
AV. P. Adkins, Sr., 86, veteran South
Omaha business man and civic leader,
and former president and a director
of the Live Stock National Bank of
Omaha and of the Commercial Savings
and Loan Association, died recently
at his home.
S. D. Thornton, Jr., 66, formerly
associated with the Federal Land
Bank of Omaha for 16 years and secre
tary recently of the National Farm
Loan Association at Hartington, Ne
braska, died recently at Hartington.
Burial was at Neligh, Nebraska.
Mrs. W allace Spear and her daugh
ter, Sara, have been spending six
weeks in Florida. They were at St.
Petersburg most of the time. Mrs.
Spear is the wife of the trust officer
of the First National Bank of Omaha.
Mrs. J. T. Stewart, III, chairman
of the Women’s Committee for the AkSar-Ben Ball, left recently for the east
to look at costume designs and mate
rials, to choose gowns for next fall’s

coronation ball. Before going to New
York, she stopped at Katonah, New
York, to visit relatives. She was to
spend a week-end at Durham, North
Carolina, with her daughter, Miss
Gertrude Stewart, a junior at Duke
University.
Mrs. Stewart is the wife of the vice
president-cashier of the First National
Bank of Omaha.
Miss Mercedes Caldwell, daughter
of Mr. and Mrs. Victor B. Caldwell, Jr.,
and W illiam Loring of Omaha were
married at St. Barnabas Episcopal
Church in Omaha. The bride’s father
is a vice president of the United States
National Bank of Omaha.
Miss Barbara Mallory and Robert
Alexander of Park Ridge, 111., also
were married at St. Barnabas. The
bride’s parents are Mr. and Mrs. Rich
ard H. Mallory. Mr. Mallory also is
a vice president of the United States
National Bank.

Seward Deposits High
The four banks in Seward county,
Nebraska, have deposits totaling $11,827,686, according to official statistics
released last month.
The two national banks at Seward
have deposits amounting to $38,427,328,
while the national bank at Utica and
the State Bank at Milford list deposits
of another $3,400,358.

Promotions at Columbus
Officer changes in the staff of the
Columbus Bank at Columbus, Nebras
ka, announced recently include the
advancement of Julius F. Zastera to
the position of vice president. Mr.
Zastera had been an assistant cashier
at the bank since 1942. Paul W. Abegglen was elected assistant cashier to
fill this vacancy.
Elmer L. Bradley is president of the
Columbus Bank, Ben McNair is vice
president and cashier, and Arthur
Klug is the other assistant cashier,
along with Mr. Abegglen.

irst National

Bank of

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

ECAUSE of present day economic
conditions, the extension of bank
credit should be confined largely to
loans that will further production
rather than increase consumer de
mand, in the opinion of Richard Rap
port of Hartford, Connecticut.
He
made the suggestion in one of the fea
ture addresses at the annual confer
ence in Lincoln of district No. 4, Asso
ciation of State Bank Examiners. The
district comprises Colorado, Kansas,
Nebraska, Wyoming, Montana, New
Mexico, Oklahoma and Texas. Mr.
Rapport is president of the national
association.
According to the speaker, the aggre
gate of loans made by commercial
hanks has been on the decline during
the past eight weeks. At the same
time, he added that this condition is
due, in part, to a desire on the part of
bankers to adhere to a program out
lined last November by federal and
state bank examiners urging members
“to exercise extreme caution” when
making loans.
Mr. Rapport also pointed out a need
for examiners to continue fighting in
flation. This can best be done, he ex
plained, by continuing close scrutiny
and classification of loans, watching

Omaha

Oldest National Bank From Omaha West
Member Federal Deposit Insurance Corporation

Nebraska News
due dates, and noting carefully all
aspects of real estate and farm loans.
Other speakers at the conference
were Carl B. Sebring, Oklahoma state
bank commissioner; Gordon Lindley,
assistant bank commissioner of Kan
sas; J. M. Falkner, Texas commis
sioner; B. A . W elch, Kansas commis
sioner; and Dr. Karl Arndt, professor
of economics at the University of Ne
braska.
J. F. McLain, Lincoln, Nebraska,
director of banks and district chair
man, presided at the meetings, and
also at a dinner for which the Kansas
City Federal Reserve Bank was host.
D. W . W ooley, vice president of the
host bank was a special guest, as were
Lincoln banking officials.
Chairman McLain, chairman of the
association, and Frank Kuncl, chief
small loan examiner of the Nebraska
banking department, were the main
speakers at the final session of the con
ference. Mr. McLain urged the im
portance of co-operative approaches
by examiners trying to solve banking
problems.
Mr. Kuncl told of the
growth and development of small loan
businesses through the personal loan
departments of banks.
W heaton Battey, vice president of
the Continental National Bank, and
president of the Lincoln Chamber of
Commerce, announced recently that
Sam C. W augh, president of the First
Trust Company, here, has been re
appointed as a member of the United
States Chamber of Commerce national
affairs advisory committee.
Mr.
Waugh also is a national counselor of
the U. S. Chamber, representing Lin
coln.

S. Battey have
announced the engagement and ap
proaching marriage of their daughter,
Miss Beverly Battey, to Rodney R.
Smith of South Sioux City, Nebraska.
A June wedding is being planned.
Miss Battey is attending the Uni
versity of Nebraska, where she is a
member of Kappa Alpha Theta soror
ity, and Delta Phi Delta, honorary art
fraternity. Her father is vice presi
dent of the Continental National
Bank.
Mr. and Mrs. W alker

Aggregate resources of Nebraska’s
283 state banks showed a decline of
§22,737,130 from the first of the year
to April 12th, J. F . McLain, state bank
ing director, has announced. Reversal
of the trend in this state started fol
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

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lowing the October 6, 1947, comptrol
ler’s call, but is in line with conditions
in eastern states. Director McLain
leans to the belief that the decline re
sulted from withdrawals to pay in
come taxes, along with heavier bor
rowings by farmers arranging to hold
their assets, and businessmen to in
crease inventories.

While assets of the 283 banks were
showing declines, capital surplus and
undivided profits accounts gained
$704,461, $173,950, and $341,244 respec
tively. Time deposits, and govern
ment deposits also were higher, the
former up to $35,709,247 from $34,324,864. The latter account showed a
gain of $8,743,832.

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Doing business with country banks is an important
function here, fo r over h alf o f our total deposits
are country bank deposits. W e have the facilities,
knowledge and experience to give you the best in
correspondent service.

First St. Joseph
STOCK YARDS BANK
South St. Joseph, Mo.
O F F IC E R S
G. E. PO R TE R , Chairman of the Board
T. J. M cCULLOUGH , V ice President

J. A. G R E E N FIE LD , President
LOUIS J. KOM ER, Asst. Cashier

M. E. B LANCH ARD, Cashier

H. H. B R O A D H E A D , JR., Asst. Cashier

“ ONLY BANK IN THE YARDS’
Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n k e r, J u n e , 1948

T ^ h e combined banking experience
of the team of officer-specialists at Live
Stock National, of Om aha, which serv
ices your correspondent banking
needs is 377 years. That's a lot of
experience for you to draw upon in
your daily problems . . . and is equal
to an average of 27 years per man
in our ranks.
Yes, we've the advantage of ex
perience with some age on it. That
tempering factor is important in sound
banking, but we're also young in
ideas . . . alw ays looking for a new

and better way to give you service
that's speedy, accurate and certain.
At the Bank of Friendly 24-Hour
Service you get service at the drop of
a hat—that means 24-hour transit
service that saves as much as a day
in most transactions.
Next time you want correspondent
service with a keynote on speed,
efficiency and completeness, think
first of the team of experienced officerspecialists ready to serve you at Live
Stock National, of Om aha.

LIVE S T O C K ^ B A N K
O
TH E

B A N K
M em ber

N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

OF
F ederal

N E B R A S K A

F R I E N D L Y
R e s e rv e

an d

F ederal

2 4 ■H O U R
D e p o s it

In su ra n ce

S E R V I C E

C o r p o r a t io n

Iowa

NEWS

Pleasant, Iowa, and for many years
cashier of the Danville State Savings
Bank, has been elected cashier of the
Farmers & Merchants Savings Bank
in Burlington.

Resigns as Cashier
W. W. BLASIER
President
Jesup

Hardin County Meeting
The Hardin County Bankers Asso
ciation held its second meeting of the
year recently in Union, Iowa. Fiftythree members and guests heard Gov
ernor Robert Blue speak on “ Iowa’s
Future Economics.”
C. W. Conn, vice president of the
county association and vice president
of the Union-Whitten State Savings
Bank in Union, presided over the meet
ing. He introduced Lafe Young of
the FHA office in Des Moines, who
described the work of the FHA in con
nection with banks. J. H. Peterman,
bank director of the U. S. Savings
Bond Division of the Treasury De
partment, also was introduced and he
launched Hardin county on its cur
rent Security Loan Drive.

Re-elect Merrill Officers
Stockholders of the Farmers State
Bank of Merrill, Iowa, held their an
nual meeting last month, at which
time all officers and directors were re
elected. Officers of the bank are H.
J. Harms, president; George B. Main,
vice president, and M. O. Nelson, cash
ier.

FRANK WARNER
Secretary
Des Moines

George W. DeBuhr and Carl Ressler,
assistant cashiers.

Iowa Auditors to Meet
The Iowa Association of Bank Audi
tors and Comptrollers will hold its
annual meeting and election of officers
at the Wakonda Club in Des Moines
on June 26th.

Manages Loan Division
Clarence H. Lawson, a native of Wil
ton Junction, Iowa, has been appointed
manager of the installment loan de
partment of the First Trust & Savings
Bank, Davenport, Harold R. Bechtel,
president, announced last month.
He fills a position that has been
executed in the past by T. L. Vinyard,
who was recently elected a vice presi
dent of the bank and is now devoting
his attention to banking duties.

Goes to Burlington Bank
Dale Kelley, assistant cashier of the
Henry County Savings Bank at Mt.

Harrison County Meeting
Representatives of all nine Harrison
county banks attended a meeting last
month with 59 in attendance. H. L.
Young of the FHA in Des Moines, and
Donald M. Roberts of the FHA in
Harlan were speakers.

The Onawa State Bank, Onawa,
Iowa, which was opened for business
May 15, 1888, last month passed the
60th year since its founding. In its
60th year of operations the Onawa
State Bank, whose president is Allen
E. Muir, passed the $4,000,000 in de
posits.

Directors of the Iowa State Bank at
Clarksville, Iowa, were re-elected last
month, as were all the officers. The
official staff is made up of W. F.
Busching, president; H. W. Reints, vice
president; Clint Varnum, cashier, and

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Federal Reserve Bank of St. Louis

Sells Boyden Interests
S.
G. Vanden Brink, vice president
and cashier of the Farmers Savings
Bank at Boyden, Iowa, has sold his
interests in the bank to Henry and
Leonard Rensink. Mr. Vanden Brink
has been associated with the bank
since June, 1912, with the exception
of two years of army duty. He ex
pects to complete his duties in the
bank by the middle of this month.
President of the Farmers Savings
Bank is John Rensink, Sr.

Returning to Hanlontown
Melvin T. Rye of Forest City, Iowa,
has purchased the stock of E. E.
Ronglin in the Citizens Savings Bank
of Hanlontown. Mr. Ronglin is presi
dent of the bank and had acquired his
interest in the bank from Mr. Rye
three years ago. Mr. Rye will return
to active management of the bank.
Associated with him will be Marion
O. Hall, who remains as cashier, and
Nellie M. Rye, who has been vice
president.

With Keota Bank

60th Anniversary

Hold Annual Meeting

Frank C. Burke, cashier and long
time employe of the First National
Bank of Missouri Valley, Iowa, last
month announced his resignation.
Mr. Burke also announced that he
will continue in business in Missouri
Valley in a full time insurance agency
operated by himself.
Appointment of a successor to Mr.
Burke as cashier has not been an
nounced.

Howard L. Johnson, who joined
the staff of the Security National
Bank of Sioux City last year as trust
officer has been elected a vice presi
dent of the bank by the board of
directors.
Mr. Johnson will con
tinue as head of the trust depart
ment.

Sama Manatt has been elected exec
utive vice president of the Security
State Bank of Keota, Iowa, following
his purchase of a substantial block of
stock in the institution. Other officers
of the bank will remain the same, with
W. F. Stoutner as president; John E.
Leinen and Marvin F. Beery, vice
presidents; Howard A. Stowell, cash
ier, and Thomas B. Mills and Sally
Mayer, assistant cashiers.
Mr. Manatt is formerly of Ivalona
and Iowa City. He is a graduate of
the University of Iowa law school
and during the past 14 years has spe
cialized in legal matters pertaining to
agricultural credit with the U .S.
Department of Agriculture. He is
moving his family from Lincoln, Ne
braska.
N o r t h w e s t e r n B a n k e r, J u n e , 1948

Iowa News

Elect New Officers
G. L. Weissenburger was elected
president of the Security State Bank
of Keokuk, Iowa, last month, succeed
ing B. A. Gronstal of Council Bluffs,
who had previously sold his interests
there. R. J. McCleary continues as
executive vice president of the bank.
Mr. Weissenburger and James Huiskamp, Jr., were elected to the board of
directors.

Three Officers Advanced
Promotion of three officers and elec
tion of two new officers at the City
National Bank of Council Bluffs have
been approved by the board of direc

tors, President Robert W. Turner an
nounced last month.
Ira L. Hays, cashier, and Ronald
H. Tornblom, assistant cashier, were
named vice presidents, and Charles R.
Hannan, assistant cashier, was elected
cashier, succeeding Mr. Hays.
Tellers Jack C. Bell and Jack W.
Schlemmer were both elected assistant
cashiers. The board also accepted the
resignation of Erik R. Hansen, assist
ant cashier, who left the bank to join
a business machine firm.

Credit School Opening
Iowa bankers and those of surround
ing states have been reminded again

by the office of the Iowa Bankers
Association of the annual two-week
Agricultural Credit School which will
run from June 14th through June
25th at Iowa State College in Ames.
Curriculum for the course has been
released, showing a complete comple
ment of studies covering all practical
phases of farm work in relation to
bankers. One entire day the second
week is devoted to a field trip and
making a farm plan.
Although many schools and banker
associations throughout the country
offer some type of training in agricul
tural and farm credit for bankers, it
is believed this particular school gives
the most complete coverage of that im
portant field.
Graduation exercises for those bank
ers finishing their second year at the
school will be held June 25th, at which
time all Iowa bankers are invited to
attend the school and participate in
any class or activity of the school.
On the speaking platform at the ban
quet the evening of June 25th will be
Warren Garst, Vivian Johnson, Leo
Wegman and Harold Brenton.

Add New Teller's Cage

W ATERLOO

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N o r t h w e s t e r n B a n ke r, J u n e , 1948

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Federal Reserve Bank of St. Louis

An additional teller’s cage was in
stalled at the Commercial State Bank
in Marshalltown, Iowa, recently, to
meet the demands of increasing busi
ness. Extensive remodeling of the
bank has been postponed indefinitely,
according to G. H. Clark, president.
The recent statement of the Com
mercial State Bank shows it to be in
excellent condition, with deposits in
excess of $4,500,000. Other officers of
this bank are F. E. Brewer, vice presi
dent: L. G. Hix, cashier, and Russell
W. Day, assistant cashier.

Undergoes Operation
Willis Johnson, eastern Iowa repre
sentative of the United States Check
book Company, underwent an opera
tion in a Cedar Rapids hospital last
month and is reported to be recover
ing rapidly. He was to remain in the
hospital for three weeks and then be
at his home for a month. Mr. Johnson
will probably be visiting Iowa bankers
again some time during the summer.

Add Two Directors
E. H. Crow and Charles Mountain
were elected to the board of directors
of the West Des Moines State Bank
last month. Forrest Galbraith, execu
tive vice president of the bank, at the
same time announced the appointment
of George Snider as a teller. Mr. Sni
der has been city clerk for two years.
H. S. Chase is president and is a
director along with Ray Spencer and
William Berg.

Government Securities
and your Bank

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Federal Reserve Bank of St. Louis

HE management o f the portfolio o f United States Government
securities is a major job in every bank today. T o aid our corre

spondent banks in this task, we send them a weekly quotation sheet,
buy and sell government securities for them as agent without fee and
if desired hold the securities in safekeeping without charge.
This is only one o f many services we have been rendering banks
and bankers throughout the Middle West for over three-quarters o f a
century. We shall be pleased to explain these services in more detail.

LIVE STOCK
B A N K V/rcfff/o

iilic m

a /

ESTABLISHED 1868

UN ION

STOCK YARDS

M em b er Federal Deposit Insurance Corporation

Northwestern Banker, June, 1948

Iowa News

Group
M eetin g
Gossip
Who Was There and What
They Said at the 1948
Iowa Group Meetings

W. W. Blasier, President, Iowa
Bankers Association and president,
Farmers State Bank, Jesup, Iowa,
and L. F. Kruse, Chairman of Group
5 and president, Mineola State Bank,
Mineola, Iowa.

URING May a number of Group
Meetings were held by Iowa
Bankers, and the first half of
these gatherings are reported in this
issue of the N o r t h w e s t e r n B a n k e r ,
and reports of the second half will
appear in the July issue of the N o r t h

w estern

anker.

Group 8—Clinton

The new officers of Group 8 are: E.
L. Wegman, vice president, Citizens
Savings Bank, Anamosa, chairman
and J. Yvo Floerchinger, De Witt, ex
ecutive vice president, De Witt Bank
and Trust Company, secretary.
Bruce Townsend, president of the
City National Bank, Clinton, and re
tiring chairman of Group 8, presided
at the luncheon and very ably intro
duced the speakers.
L. J. Derflinger, president of the
Clinton National Bank and president

By CLIFFORD DE PUY
Publisher,
THE NORTHWESTERN BANKER

of the Clinton County Bankers Asso
ciation, welcomed the bankers to the
meeting and said that it had been 14
years since the Group had met in
Clinton.
Miss Marjorie Graybill was not only
beautiful herself, but did a “beautiful
job” of leading the Clinton High
School 60 member a cappella choir in
several very fine songs.
AY. Bill Blasier, president of the
Iowa Bankers Association, and presi
dent of the Farmers State Bank of
Jesup, has proven himself to be the
“Edgar Guest” of the banking fra
ternity by very effectively quoting
poetry to illustrate a part of his very
interesting address.
In addition to his poetry, President
Blasier made these observations:
“A banker is an adviser as well as a
sympathizer.

J. H. Peterman, Deputy State Di
rector for Iowa U. S. Savings Bonds
Division, U. S. Treasury Depart
ment, Des Moines, and W. L. Crum
ley, president Dallas County Bank
ers Association and Cashier of Dal
las County Savings Bank, Minburn,
Iowa.

“We must do something to reduce
the over-supply of money and the
under-supply of goods, so we can pre
vent further inflation.
“It is just as important, if not more
so, for the small banks as well as the
large banks to promote friendly pub
lic relations with their customers and
prospects.
“Bet’s tell the people that the banks
and not the government supplies the
money to the Federal Deposit Insur
ance Corporation for their protection.”
N. P. Black, state superintendent of
banking for Iowa, discussed some of
the legal questions facing bankers to
day, and reviewed some of the figures
of the 558 state banks, comparing the
December 31, 1947, call with the April
12, 1948, call.
At the end of 1947, deposits in state
banks in Iowa were at an all time
peak of $1,607,000,000, and on April
(Turn to page 68, please)

A t th e hu ra G roup M e e tiu p s ---- >■
SALARIES, SECURITY BONDS AND SAFETY DEPOSIT
SERVICES were all discussed at the recent Iowa Group Meet
ings by the bankers shown on the opposite page, who from
left to right are:
1. C. K. Cullings, secretary of Group 5 and president, Ex
change State Bank, Exira, Iowa; Dr. J. O. Christianson, super
intendent of School of Agriculture, State University of Minne
sota, St. Paul, Minnesota; Charles W. Langmade, assistant
cashier, First National Bank, Council Bluffs, and W. L. Spencer,
president, Oakland Savings Bank, Oakland, Iowa.
2. Hugh R. Kirkpatrick, The Chase National Bank, New York,
and William L. Temple, assistant cashier, First National Bank,
Sioux City, Iowa.
3. Robert Burns, secretary, Clinton County Bankers associ
ation, assistant cashier, Clinton National Bank, Clinton; Emil
Johannsen, treasurer, Clinton County Bankers Association,
assistant cashier, City National Bank, Clinton, and L. J.
Derflinger, president, Clinton County Bankers Association,
and president, Clinton National Bank.

Northwestern Banker, June, 1948

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Federal Reserve Bank of St. Louis

4. H. C. Houghton, Jr., president, Houghton State Bank, Red
Oak; John M. McCumber, vice president, Stock Yards National
Bank of South Omaha, and Cole H. Houghton, assistant cashier,
Houghton State Bank, Red Oak, Iowa.
5. Mrs. Robert Henstorf, Jr., and Robert Henstorf, Jr., cash
ier, First National Bank, Farragut, Iowa, and president, South
western Iowa Bankers Association.
6. G. M. Barnett, chairman of Group 6, and president, Guthrie
County State Bank, Guthrie Center, Iowa, and C. S. Johnson,
vice president, Dallas County Bankers Association, executive
vice president, The First National Bank of Perry, Iowa.
7. Charles H. Griesa, vice president, Inter-State National
Bank, Kansas City, Missouri, and George D. Wood, president,
First National Bank, Council Bluffs.
8. E. L. Wegman, chairman, Group 8, vice president, Citizens
Savings Bank, Anamosa, and Mrs. E. L. Wegman.
9. C. D. Clausen, president, Iowa Junior Bankers Association,
assistant cashier, Citizens National Bank, Boone, Iowa, and
L. A. Good, assistant cashier, City State Bank, Ogden, Iowa.

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Iowa News
ment, spoke on the necessity for pur
chasing United States Security Bonds
in order to help prevent inflation, and
said:

GROUP MEETING GOSSIP
(Continued from page 66)
12, 1948, they were $1,527,000,000 or a
decline of 80 million dollars.
This was not surprising, according
to Mr. Black, since federal and state
taxes paid by Iowans in the first 3
months of this year totaled more than
$260,000,000 or 71 million dollars more
than in the same period last year.
On December 31, 1941, deposits in
state banks were $589,000,000, thus de
posits have increased nearly 3 times
In state institutions since the war.

“Bond-A-Month and Payroll Savings
Plans are the two things that can lick
inflation.
“It is important to distribute the
national debt as widely as possible
. . . and more important that the na
tion’s debt is held by wage earners
the nation over . . . rather than in the
hands of large corporations.
“The citizens of this country must
he taught to save again. If each wage
earner sets aside part of his wages
regularly the inflationary pressure will
be cut down.”

J. H. Peterman, Iowa deputy state
director of the Savings Bond Division
of the United States Treasury Depart

★

Skilled in the Livestock Business
With

fine

prospects

for good

grain

and

feed

crops, plus high prices, live stock continues to be
of tremendous interest to the Sioux City trade area.
Both by training and experience, officers of the First
National are especially equipped to serve banks,
producers and feeders.
W e solicit your account here at the First National
Bank in Sioux City.

Robert H. Nicholaus, vice president,
Iowa Junior Bankers Association, and
assistant cashier, Wilton Savings
Bank, Wilton Junction, also gave a
very interesting talk before the bank
ers of Group 8.

On the way from Clinton to the next
Group Meeting at Oskaloosa, about 20
bankers were entertained at a de
licious catfish dinner in Muscatine,
given by B. L. McKee, executive vice
president, F. W. Allen, cashier, and
R, H. Isensee, assistant cashier of the
Muscatine Bank and Trust Co.
Par for the course at “ Ina Mae’s”
was 1 catfish each, but some of the
bankers who had never enjoyed a cat
fish dinner before, raised their score
to 2 and 3 “fish per each.”
Frank Warner, the very able and
efficient secretary of the Iowa Bankers
Association, discussed the necessity
of a more careful check on the protec
tion of safety deposit boxes based on a
recent survey which the Association
has made.
Mr. Warner also emphasized the de
sirability of making banking more at
tractive to young people so that they
would wish to enter the banking busi
ness in their own communities rather
than finding employment elsewhere.
Dr. J. O. Christianson, superintend
ent of School of Agriculture, State
University of Minnesota, St. Paul,
spoke at each of the group meetings
and presented many points of value
to every banker present.
Among other things, Dr. Christian
son said, “It is more important what
things we belong to, than what things
belong to us.”

A. G. SAM, President
J. T. Grant, Vice President
I. R. Graning, Cashier

H. H. Strifert, Assistant Cashier
,

E. A. Johnson, Assistant Cashier

George Garton, executive vice presi

W. L. Temple, Assistant Cashier

dent of the First State Bank of Char
iton, was elected chairman of Group
10, and C. C. Williamson, vice presi
dent of the First Trust and Union Sav
ings Bank of Sigourney, was elected
secretary.

J. Ford Wheeler, Auditor

NATIONAL
BANK

Although the day was a little “ cold
and chilly,” a good many of the ardent
golfers tried out the Elmhurst Country
Club.

in SIOUX CITY

Oliver Anderson, chairman of Group

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CO RPO RATIO N

--------- ★
Northwestern Banker,

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

June, 1948

★

Group 10— Oskaloosa

K. J. Shannon, Assistant Cashier

★

The meeting was called to order by
10, and cashier of the Farmers Savings
Bank of Fremont.
The session was held at 7:00 p. m.
at the Country Club.
Welcome to the bankers was given
by G. S. Kroutli, president of the Iowa
Trust and Savings Bank, and also

Iowa News
president of the Oskaloosa Chamber of
Commerce, and following his remarks
the regular evening program was con
ducted.
Group 6—Perry
G. M. Barnett, president

of the
Guthrie County State Bank of Guthrie
Center, was elected chairman of Group
6, and William Buxton, III, president
of the Peoples Trust and Savings Bank
of Indianola, was elected secretary.

view on banking,” and among other
things said:

by the public of any business.
“4. Salaries and working conditions
in banks must be adjusted so they can
compete with other businesses in the
same locality.
“5. If we continue to have fewer
and fewer young men in country
banks, this will lead to chain bank
ing.”—The End.

“1. There is a lack of young men
going into the banking business in
rural communities today.
“2. What will happen when the
government gets out of the business of
guaranteeing loans?
“3. Banking is the least understood

In the absence of N. P. Black, super
intendent of banking, who was in Chi
cago on business, Hugh R. Jackson,
deputy superintendent of banking for
Iowa, spoke on the general banking
situation in Iowa and said that, “we

"N *

must quit blowing into the balloon of
inflation or it will break.”

T h e y ’ll be m

C. D. Clausen, assistant cashier of
the Citizens National Bank of Boone,
and president of the Iowa Junior
Bankers Association, spoke on public
relations, and said “Bank operation

|g g C H I C A G O by
Ï8 P Daylight Tomorrow

should be thought of as having 4 main
functions . . . money, service, educa
tion and promotion.
“Our public relations should extend
outside the bank as well as inside.
The time has come once again when
we should go out of our way to stim
ulate our customers’ good will.
“Education pertaining to banking
should he developed in our schools
through visual education.
“Radio should be used to tell the peo
ple of our communities the purposes
of banking and something of its oper
ation.”

T h e se m ay be y ou r c u s
to m er’ s pigs. W ith in a few
hours after they are sold, a
D rovers “ Y ellow B o y ” ad
v ic e w ill b e s p e e d in g th e
proceeds to your b ank. F or
t h e “ Y e l l o w B o y ’ ’ is th e
sym b ol of D rovers fast, e f
ficient service. It is w idely
r e c o g n iz e d as su ch b y
bankers w hose custom ers
ship livestock to Chicago

L. M. Banning, cashier of the City
State Bank of Madrid, conducted a
group discussion on the question of
having banks close one afternoon each
week.

W e c o r d ia lly in v ite
y o u r t lllC A t .O
b u s i n e s s ...

Group 5— Council Bluffs
L. F. Kruse, president of the Mine-

ola State Bank of Mineola, and chair
man of Group 5, called the meeting to
order at the luncheon gathering, fol
lowing which the bankers were wel
comed by Edwin H. Spetman, vice
president of the Council Bluffs Sav
ings Bank.

DRDVERS NATIONAL BANK
DROVERS TRUST & SAVINGS BANK
UNI ON

In addition to the regular speakers,
who had been appearing on previous
programs, Robert Henstorf, Jr., cash
ier of the First National Bank of
Farragut, spoke on “A young banker’s

S T O C K

Y A R D S ,

CHI C

AG 0

M e m b e r s , F e d e r a l De po s i t
Insu ran ce Corporation

D id y o u k n o w t h a t th is c o m p a n y p io n e e r e d in p u t t i n g

B a n k I n s u r a n c e o n a s c ie n t if ic b a s is a n d f o r c i n g

Scarborough & Com pany

r a t e r e d u c t i o n s ? A s k u s a b o u t o u r c o u n s e lin g s e r v ic e .
In su r a n ce C o u n selo rs

FIRST

N A TIO N AL B A N K

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Federal Reserve Bank of St. Louis

BUILDING

CHICAGO

3, I L L I N O I S

STATE

to B a n k s

4325

Northwestern Banker,

Ju n e , 1948

Iowa News

Edward Pressler has resigned as
cashier of the Security State Bank of
New Hampton, Iowa. Mr. Pressler
has not announced his future plans
and no successor was appointed to
succeed him as yet.

port Bank & Trust Company, vice
president; B. F. McGee, assistant cash
ier of the Northwest Bank & Trust
Company, Davenport, treasurer, and
Glen H. Suiter, assistant cashier of the
Farmers Savings Bank of Princeton,
secretary.

Moves to Everly

With Chatsworth Bank

Resigns Cashier Post

Robert G. Lexvold, assistant cashier
of the Farmers Trust and Savings
Bank at Spencer, Iowa, last month was
elected to succeed Carl Chalstrom at
the Everly State Bank of Everly. Mr.
Chalstrom has been executive vice
president and cashier of the bank
since its organization four years ago.

Elect County Officers
John Thede, cashier of the Dixon
Savings Bank, Dixon, Iowa, was
elected president of the Scott County
Bankers Association at the annual
meeting held in Donahue. Grover
Roehlk of Donahue is the retiring
president.
Other officers chosen were: A. H.
Hiegel, vice president of the Daven-

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION
Oldest in Des Moines
210 6th A v e .

D ia l 4 -7 1 1 9

ELMER E. MILLER
Pres, and Sec.

HUBERT E. JAMES
Asst. Sec.

FOR YOUR ENJOYMENT . . .
Listen to the

Henry C. Linduski, associated with
the Live Stock National Bank of Sioux
City for a number of years, resigned
recently to take over management of
the Chatsworth Savings Bank, replac
ing Cashier A. R. Laudi, who was
forced to retire from the bank because
of failing health.
Mrs. Linduski is also with the Chats
worth Bank now as assistant cashier,
taking the place of Ethel Davison.

County Association Elections
Several county bankers associations
in Iowa held annual meetings and
elections recently. Following are lat
est available reports:
Boone County

Morris F. Miller, vice president of
the Boone State Bank and Trust Com
pany, was elected president of the
Boone County Bankers Association,
succeeding C. W. Anderson, executive
vice president of the City State Bank
at Madrid. Leonard A. Good, assist
ant cashier of the City State Bank,
Ogden, and A. T. Donhowe, Jr., of
the same bank, were re-elected vice
president and secretary-treasurer, re
spectively.
Bremer County

“ WORLD OF MUSIC”
KRNT, 1350 KC

1 to 1:30 p.m. Sundays

L. H. Fink, cashier of the American
Savings Bank at Tripoli, Iowa, was

elected president of the Bremer Coun
ty Bankers Association; Howard C.
Stevens, cashier of the Farmers State
Bank at Plainfield, was named vice
president, and S. C. Kimm, cashier of
the Denver Savings Bank, was re
elected secretary. The meeting took
place in Sumner.
Grundy County

At the annual meeting held last
month in Grundy Center, Iowa, I. T.
Parkhurst, vice president of the Farm
ers Savings Bank of that city, was
named president of the Grundy Coun
ty Bankers Association. G .H. Ballard,
cashier of the Peoples Savings Bank
at Wellsburg, is retiring president.
Other officers elected are: Marvin
Graves, assistant cashier of the Iowa
Savings Bank at Dike, vice president,
and H. D. Martin, cashier of the First
State Bank at Conrad, secretary-treas
urer.
Jones County

Elected president of the Jones Coun
ty Bankers Association recently was
Leonard J. Wegman, vice president of
the Citizens Savings Bank at Anamosa.
Ralph L. Orth, cashier of the Citizens
State Bank at Wyoming, became vice
president; Adolph Stampe, assistant
cashier of the Onslow Savings Bank,
is secretary, and George Paulsen of
the same bank is treasurer. Guy C.
Martin, cashier of the Farmers Savings
Bank at Martelle, and retiring vice
president of the association, conducted
the business meeting, which was held
at Wyoming.
Sioux County

Sioux county bankers met at Hawarden last month and elected C. F.
Sheel, president of the Hospers Sav
ings Bank, as their new president.
He succeeds C. A. Slife, cashier of
the Farmers State Bank of Hawarden.
C. T. Juffer, cashier at the Security
Savings Bank in Ireton, was elected
vice president, and E. V. Slife, assist
ant cashier of the Farmers State Bank
of Hawarden, was named secretarytreasurer.

S e le c ta / ¿ fle to w c e

Central National Ba n k

IOWA ■LITHOGRAPHING •COMPANY
FOUNDED BY GEORGE H. RAGSDALE •

IN C H I C A G O
ROOSEVELT ROAD AT HALSTED STREET
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n

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

June, 1948

M e m b e r F ed era l R e s e r v e S ystem

EDWIN G. RAGSDALE * SECRETARY

515 TWENTY EIGHTH STREET

DES •M O I N E S

Q U A L I T Y

- E X P E R I E N C E

• S E R V I C E

Iowa News

To Manage Kimballton Bank
Dewey Kuiken of Delmar, Iowa, has
purchased the stock owned by H. S.
Aamoth in the Landmands National
Bank of Kimballton, Iowa, and has
been elected executive vice president.
He succeeds Mr. Aamoth, who recently
purchased the controlling stock in the
Belview State Bank of Belview, Minne
sota, and will move to Belview the lat
ter part of this month.
Mr. Kuiken plans to take up his
duties at Kimballton early in June.
Both Mr. and Mrs. Kuiken are natives
of western Iowa and before going to
Delmar in 1945, Mr. Kuiken was em
ployed as manager of the Maurice
office of the Northwestern State Bank
of Orange City, Iowa.

BANKERS YOU KNOW
(Continued from page 25)
Mr. McDonnell was born at Altheimer, Arkansas, November 20,
1894. He attended public schools in
Little Rock, and received bis univer
sity education at Vanderbilt Univer
sity in Nashville, Tennessee. In 1917,
be was graduated from Vanderbilt
with an LL.B.degree and was awarded
the Founders Medal. He was married
to Carolyn Vanderbilt Cherry, Octo
ber 26, 1921, and they have a son,
Sanford N. McDonnell, and a daugh
ter, Mrs. David W . Black.
A recounting of Mr. McDonnell’s
activities other than his banking du
ties is evidence of the vitality and
genial, attractive personality he posLouis Federal Reserve Bank. In 1944,
he joined the Mercantile-Commerce
Bank and Trust Company of St. Louis

as vice president. In April, 1947, Mr.
McDonnell accepted his election as
executive vice president of the First
National Bank of St. Louis and be
came its president at the annual meet
ing this year.
sesses. In the banking field alone, he
served as president of the Arkansas
Bankers Association in 1939-40; as
executive councilman of the A .B .A .
from Arkansas from 1942-44; as reso
lutions committee chairman at the
1943 A .B .A . convention; as chairman
of the bank management commission
for the A .B .A . from 1942-46, and is a
member of the Association of Reserve
City Bankers.
Mr. McDonnell has served on prac
tically every type of civic and public
welfare organization and more recent
ly was elected vice chairman of the
board of directors of the St. Louis
Chamber of Commerce. He is a di
rector of the St. Louis Union Trust
Company, American Central Insur
ance Company and McDonnell Air
craft Corporation.
In spite of his extensive activities
with his own business and with these
many civic and public groups, Mr.
McDonnell never misses an opportu
nity to step on a golf course any place.
He lias won numerous gold trophies
in amateur tournaments. He is just
as ardent a duck hunter as he is a
golfer.

Looked Natural
Barber: Haven’t I shaved you some
where before?
Sailor: Nope. I got that scar in
the Battle of Lingayan Gulf.

$ $
BANK LOANS
$ $
NEEDED WORKING CAPITAL

Safely and conveniently brought together by WILLIAM H. BANKS
W AREHOUSE RECEIPTS, which convert INVENTORIES into de
sirable COLLATERAL.
This service— RIGHT ON THE BORROWER'S O W N PREMISES—
affords real PROTECTION to the Bank with CONVENIENCE to
the borrower.
A million dollar Legal Liability policy affords extra protection to
the holders of W arehouse Receipts issued by WILLIAM H. BANKS
WAREHOUSES, INC.

Division

DES M O IN E S , IO W A
W ESLA C O , TEXAS

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

O ffic e s:
O G D E N , U TA H
F A Y E T T E V IL L E , A R K .

A N G O L A , IN D IA N A
S T . L O U IS , M O.

WILLIAM H.BANKS WAREHOUSES
( I N

C. )

2 0 9 SO. LA S A L L E ST

C H IC A C O . ILL.

Meet
7 71a .

3 (.

S ■
Û a srw lh

Mr. Aamoth has purchased the con
trolling stock in the Belview State Bank
and the residence property of Walter C.
Dahl in Belview, Minnesota, and will
succeed Mr. Dahl as Cashier about
June 15th.
Upon advice from his physician to
"take it e a sy " Mr. Dahl recently dis
posed of his farm near Belview. W e
received authority to provide a pur
chaser for his bank stock and residence
on April 26th, decided that Mr. Aamoth
was the logical purchaser, presented
the opportunity to him, arranged an ap
pointment, met him at Belview six days
later and personally negotiated the
sale.
Mr. Aamoth was born, reared and
educated in Northwestern Minnesota.
He took his first bank position at Flom
in August, 1925. Five years later he
entered the employ of the Citizens Sav
ings Bank at Hanlontown, Iowa.
In
1932 he married Blanche Henrickson of
Ulen, Minnesota, moved to Thornton,
Iowa, in 1936, and to Kimballton, Iowa,
in 1943, where he has since been the
Executive Vice President of the Land
mands National Bank.
The purchase of the controlling stock
of the Belview State Bank by the
Aamoths represents the realization of a
long cherished ambition to return to
their native state and to acquire a bank
of their own. W e are happy to have
had a part in helping to make their
dream come true.
Mr. Dewey Kuiken of Delmar, Iowa,
has purchased Mr. Aamoth's stock in
the Landmands National Bank at Kim-ballton and will succeed Mr. Aamoth as
Executive Vice President.
Yes, we
made that sale too.
This bank has
$50,000 capital, $50,000 surplus, $41,466
profits and $2,394,120 in deposits as of
April 12th.
Consult us in confidence and without
obligation when you plan to buy or sell
a bank or an interest therein carrying
an active executive position.

Bankers Service Cn.
HENRY H. BYERS, President

J ie td IdaSiehmOe R eceipt*.
THE GAP B etw een

BANKING

and

INDUSTRY

Box 1435

Tel. 2-7800

Des Moines 5, Iowa
("Offices in th e R e g is te r & T ribu n e B ld g.)

Northwestern Banker, June, 1948

Iowa News

Security Savings Bank
Marshalltown, Iowa
Capital ....................$ 150,000
Surplus ..................
100,000
Deposits .................. 8,253,000
W ill A. Lane, President
N. C. Nielsen, Vice President
R. M. Wilson, Cashier
G. B. Brown, Assistant Cashier
Member Federal Deposit Insurance Corporation

W I R . J . F L Y N N .P r e s

D .L .D U N G A N . S e c y .h ^

Beehtler
Once
Business in Private Coins
Man Who Came from Germany Issued
$2,241,850 Worth in Nine Years
HE most industrious of private coin
ers who established mints in early
America was Christopher Beehtler.
In 1830 he emigrated from Germany
with his family and settled in Rutherfordton, North Carolina.
Christopher Beehtler and his son,
August, were skilled metal workers.
At that time, North Carolina was the
gold producing center of the United
States and it was not long before the
Bechtlers found an opportunity to
use their skill in handling metals.
There was a long-felt need for a cir
culating media other than the gold
dust and the scant supply of federal
and state currency. So this enterpris
ing German, with the help of his son,
constructed a coining press and began
to coin native gold. Their first coins,
$2.50 and $5 gold pieces, appeared in

KBp s

ENVELOPES
G e a re d to the
B a n kin g Business

BANKERS FLAP
...s e a ls quickly and stays sealed .
Protect bulky m ail in these strong
shou ldered, w id e seam ed, deeply
gum m ed en velop es.
W rite for
sam ples and prices.

/<
s s

M o in e s

N o tes

IOHN B. MONAHAN, assistant
J cashier in charge of new accounts
at the Bankers Trust Company, was
elected president of the Des Moines
chapter of the American Institute of
Banking at that group’s annual meet
ing and election of officers last month.
The dinner-dance meeting was held
at the Hotel Kirkwood and attended
by 125 members and their guests.
Other officers elected were: First
vice president, Arnold Dressier, audit
ing department, Central National
Bank and Trust Company; second vice
president, John Bauserman, head

1831. Next year they added the $1
denomination to their output.
Their coins were 20-carats or better
fine, and of honest weight. The citi
zens welcomed these much-needed
coins and it was not long before min
ers from North Carolina, South Caro
lina and Georgia brought their gold
to Beehtler to be coined.
Beehtler coins circulated in the
southwest for many years. Although
they were not government coins they
received the same consideration and
local banks would always accept them
at face value.
Very few have escaped the melting
pot and the few that are in the hands
of coin collectors are highly prized.—
By Stuart Mosher, Editor of The
Numismatist.
paying teller, Valley Bank and Trust
Company; treasurer, J. Roy Fergu
son, teller, Iowa-Des Moines National
Bank; secretary, Phyllis Carpenter,
bookkeeping department, B an k ers
Trust Company.
Robert W. McGee of the savings de
partment at the Valley Bank and
Trust Company was awarded the
A.I.B. $100 scholarship for scholastic
achievement. Mr. McGee wrote a per
fect examination paper concluding his
current school year and had a perfect
attendance record for all meetings.
Frances Holcomb of the trust depart
ment at the Iowa-Des Moines National
Bank also received 100 per cent on her
examination paper. It is the first time
that present members of the Des
Moines A.I.B. recall that a perfect
exam paper has been written.
The Des Moines Chamber of Com
merce, whose president this year is
Richard R. Rollins, sponsored a Good
Will Tour around Iowa last month.

HOLLINBECK
Stamp and Coin Co.
Royal Union Bldg.

Des Moines

T e n s io n E n

velo pe

Corp.

N e w Y o rk 14, N. Y .
M in n e ap o lis 1, M inn.
St. Louis 10, Mo.
Des M oines 14, Io w a
K a n sa s C ity 8, Mo.

Northwestern Banker, June, 1948

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Federal Reserve Bank of St. Louis

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Iowa News
Mr. Rollins is an investment counsel
lor representing Sheridan-Farwell and
Morrison, Inc. A number of Des
Moines bankers participated in the
Tour, including Erwin Jones and
George Jorgensen, vice presidents of
the Iowa-Des Moines National Bank;

C O N V E N T IO N S
June 7-11, American Institute of Bank
ing, Annual Convention, Buffalo.
June 10-12, Colorado Bankers Associ
ation, Annual Convention, Glenwood Springs, Hotel Colorado.
June 11-12, North Dakota and South
Dakota Joint Convention in the
Twin Cities, Hotel Nicollet.
June 15-16, Annual Convention, M in
nesota Bankers Association, M in
neapolis.
June 16-17, Annual Convention, Mination, Annual Convention, Sheri
dan.
June 19-July 3, Graduate School of
Banking, Rutgers University, New
Brunswick, New Jersey.
June 21-23, W isconsin Bankers Asso
ciation, Annual Convention, M il
waukee, Hotel Schroeder.
June 24-26, Montana Bankers Associ
ation, Annual Meeting, Glacier
Park, Many Glaciers Hotel.
June 24-26, Michigan Bankers Associ
ation, Annual Convention, Mack
inac Island, Grand Hotel.
July 8-10, Nebraska Bankers Associ
ation Clinic, Crete, Doane Col
lege.
August 16-28, Financial Public Rela
tion’s School of Public Relations,
Chicago, Northwestern University.
August 23-September 4, Central States
School of Banking, University of
W isconsin, Madison.
September 22-24, National Association
of Supervisors of State Banks,
Annual Meeting, Louisville, K en
tucky, Hotel Brown.
September 22-24, Mortgage Bankers
Association, 35th Annual Conven
tion, New Y ork City, Hotel Com
modore.
September 24-26, Association of Bank
W om en, Annual Convention, De
troit, Hotel Fort Shelby.
September 26-29, American Bankers
Association, Annual Convention,
Detroit.
Oct. 24-27, Annual Convention Iowa
Bankers Association, Des Moines,
Hotel Fort Des Moines.
November 4-5, A .B .A . Mid-Continent
Trust Conference, Chicago.
November 10-11, Nebraska Bankers
Association, Annual Convention,
Omaha, Hotel Fontenelle.
November 29-December 2, Financial
Public Relations Association, A n
nual Convention, H o l l y w o o d ,
Florida, Hollywood Beach Hotel.

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Federal Reserve Bank of St. Louis

Edward Kautzky, vice president of the

Valley

Bank and Trust Company;
Nevin Eee, vice president of the Bank
ers Trust Company, and Emmet Johns,
vice president and Dale C. Smith, as
sistant cashier of the Central National
Bank.

When Langille joined Marchant Cal
culating Machine Company in 1944 as
manager of the Kansas City branch,
he had had no previous experience in

Two hundred and sixteen members
of the Iowa Des Moines National Bank
staff and their guests attended the
annual bank summer party last month
at Wakonda Club. The dinner was fol
lowed by an evening of dancing.
Attending the annual meeting of
Reserve City bankers in Coronado,
California, last month, were Ed F.
Buckley, president of the Central Na
tional Bank and Trust Company, and
Albert J. Robertson, vice president of
the Iowa-Des Moines National Bank.
Roy Capps, vice president of the
Central National Bank, wrote a letter
to Publisher Clifford De Puy of the
N o r t h w e s t e r n B a n k e r last month in
which he says he and Mrs. Capps
traveled to Taos, New Mexico, instead
of staying in Hot Springs as previously
planned. Mr. Capps says:
“ Several days after arriving here
in Taos they (intense sandstorms)
ceased. So now we are enjoying this
perfect mountain air. I am sure the
germs in my lungs cannot continue to
live on the fine sand and alkali dust I
have been forced to breathe, so I
should soon be in form to return to my
desk in good old Des Moines. This is
a wonderful country in which to re
cuperate.”
Ed Kautzky, vice president of the
Valley Bank and Trust Company, at
tended the annual convention of the
National Association of Credit Men in
Cleveland last month.

Offices of the Iowa Bankers Associa
tion in the Liberty Building are being
extensively remodeled and rearranged
to afford better facilities to meet the
growing demands of the Association’s
office. The office of Secretary Frank
Warner has been enlarged so as to
provide a meeting room for Associa
tion committees when such meetings
are to be held in Des Moines.

General Sales Manager
Cummins Business Machines Corpo
ration, Chicago, announces the ap
pointment of Leslie G. Langille as
general sales manager.
Les Langille has a solid background
of 21 years of sales leadership exclu
sively in the office equipment field.
He started in the sales organization of
Pitney-Bowes in Chicago and later was
promoted to branch manager for Pit
ney-Bowes in Milwaukee.

L E S L IE G. L A N G IL L E
To Head Sales

the calculating field. Yet during his
three years as head of this division
sales volume showed such an amazing
improvement that he earned Marchant’s accolade of “ Man of the Year”
in 1947.

C. A, Smith Retires
Harvey D. Gibson, president of Man
ufacturers Trust Company, announced
the retirement of Charles A .Smith,
vice president, at an officers’ dinner
last month.
Mr. Smith started with the bank on
May 1, 1899, then known as The State
Bank, when he was employed as a
messenger. Working his way through
the bank’s many departments, he was
promoted to executive vice president
and director at the time Harold Rich
ard, now a director of Manufacturers
Trust Company, was promoted to pres
ident. Upon his retirement Mr. Smith
was vice president at the bank’s head
office and will be remembered by his
many friends in the diamond, jewelry,
railroad and correspondent bank fields.

Assistant Director
The appointment of James M. Roun
tree as assistant director, banking and
investments, United States Savings
Bonds Division of the Treasury De
partment, was announced by Vernon
L. Clark, the division’s national direc
tor.
Mr. Rountree, w i d e l y k n o w n
throughout the country in financial
circles, has been with the U. S. Depart
ment of Commerce for the past three
years, serving as chief of its Finance
and Tax Division of the Office of Small
Business.

Northwestern Banker, June, 1948

In the

DIRECTOR’ S
Second to None
“ She his best girl?”.
“No, just necks best.”

Not Any More
“ In the army they’ll send you abroad
six months after you join up.”
“Don’t you believe it! I was in the
Pacific for two years and never even
saw a white woman.”

Rough, Too
First Cow: What do you think of
the new farm hand?
Second Same: I think he’s an awful
jerk.

Fast Worker
Father: All day you’ve been chang
ing that dollar into silver, then back
to a bill. What’s the idea, son?
Junior: Well, sooner or later some
body’s gonna make a mistake and it
ain’t gonna be me!

Not Permanent
“ Shay, lady, you’re the homeliest
woman I ever shaw.”
“Well, you’re the drunkest man I
ever saw.”
“ I know, lady. But I’ll get over it
in the morning.”

No Loss Ratio
Doesnt Mean a Thing
“ I don’t know whether to recognize
him here in the city or not. Our
acquaintance at the seashore was very
slight.”
“You promised to marry him, didn’t
you?”
“Yes, but that’s all.”

IN D E X O E
A DV ER T I SERS
June,

1948

A
A d d r e s s o g r a p h S ales A g e n c y ........................51
A l l i e d M u t u a l C a s u a l t y C o m p a n y . . . . . . . 40
A m e r i c a n E x p r e s s C o m p a n y ..........................36
A m e r i c a n N a t i o n a l B a n k an d T r u s t C o.. .33
It
B a n k e r s S e r v i c e C o m p a n y , I n c .....................71
B a n k e r s T r u s t C o m p a n y — D e s M o i n e s . . .75
B a n k s , W i l l i a m H., I n c .....................................71
B u r r o u g h s A d d i n g M a c h in e C o m p a n y . . . 9
C
C e n t r a l N a t i o n a l B a n k — C h i c a g o ...............70
C e n t r a l N a t i o n a l B a n k a n d T r u s t Co.—
D e s M o in e s ..........................................
16
Central N ational In su ran ce C om p an y of
O m a h a ..................................................................59
C ha se N a t i o n a l B a n k ........................................ 8
C ity N a t i o n a l B a n k a n d T r u s t Co.—
C h i c a g o ............................................................... 54
C o n t i n e n t a l N a t io n a l B a n k — L i n c o l n . . . . 61

“So Mabel has been married five
years. Has she kept her figure?”
“Kept it? She’s nearly doubled it!”

up with

Observer: How old are you, sir?
Aged Mourner: I’m 98.
Observer: Hardly worth going home,
is it?

JV
N a t i o n a l B a n k o f S o u t h D a k o t a .................49
N a t i o n a l B a n k o f W a t e r l o o ............................ 64
N a t io n a l Cash R e g i s t e r C o m p a n y ........... 5
N a t i o n a l C ity B a n k o f N e w Y o r k .............. 4
N o r t h w e s t S e c u r i t y N a t i o n a l B a n k ............ 53

H
H a m m e r m i l l P a p e r C o m p a n y ....................... 10
H a r r i s T r u s t a n d S a v i n g s B a n k ................... 30
H o l l e y , D a y t o n an d G e r n o n ............................ 47
H o l l i n b e c k S ta m p a n d C o in C o m p a n y . . . 72
H o m e I n s u r a n c e C o m p a n y ........................... 7
H o n o r R o l l B a n k s ......................................... 28-29

I
I n v e s t o r s S y n d i c a t e ............................................34
I o w a - D e s M o in e s N a t i o n a l B a n k ...............76
I o w a L i t h o g r a p h i n g C o m p a n y ..................... 70
I o w a - N e b r a s k a B a n k D i r e c t o r y ................... 11

K
K a l m a n a n d C o m p a n y ....................................... 46
K o c h B r o t h e r s .......................................................72

L
L a M o n t e , G e o r g e an d S o n ............................. 3
L e s s i n g A d v e r t i s i n g C o m p a n y ..................... 72
L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . . 65
L i v e S t o c k N a t io n a l B a n k — O m a h a ............ 62
L i v e S t o c k N a t i o n a l B a n k — S i o u x C i t y . . 48

M
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 41
M e r c h a n t s N a t i o n a l B a n k ............................. 2
M i d w e s t B e a c h C o m p a n y ................................ 53
M i n n e s o t a C o m m e r c i a l M e n ’ s A s s n ...........41
M orr ell, J o h n an d C o m p a n y ............................ 52
M o d e r n F i x t u r e C o m p a n y .................................60

Northwestern Banker, June, 1948

They Never Find It
“ How do you keep your children
out of the cookie jar?”
“Lock the pantry and hide the key
under the soap in the bathroom.”

F a r m e r s M u t u a l H a il I n s u r a n c e Co
o f I o w a ................................................................40
F i g g e , V a v r a an d C o m p a n y ............................ 37
F i r s t an d A m e r i c a n N a t io n a l B a n k —
D u lu th , M i n n ...................................................... 47
F i r s t N a t i o n a l B a n k — C h i c a g o .................. 6
F i r s t N a t i o n a l B a n k — M i n n e a p o l i s ........... 42
F i r s t N a t i o n a l B a n k — O m a h a ...................... 60
F i r s t N a t i o n a l B a n k — St. L o u i s ................. 32
F i r s t N a t i o n a l B a n k — St. P a u l .................. 45
F i r s t N a t i o n a l B a n k — S io u x C i t y ............. 68
F i r s t N a t i o n a l B a n k an d T r u s t Co.—
F a r g o .................................................................... 55
F i r s t St. J o s e p h S t o c k Y a r d s B a n k ............ 61
F i r s t W i s c o n s i n N a t io n a l B a n k ................... 31

D a v e n p o r t , F. E. an d C o m p a n y ........... 61-72
D e L u x e C h e c k P r in t e r s , I n c ........................... 37
D e s M o in e s B u ild in g , L o a n an d S a v i n g s
A s s o c i a t i o n .........................................................70
D ie b o ld , I n c ............................................................. 54
D r o v e r s N a t i o n a l B a n k ..................................... 69

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Federal Reserve Bank of St. Louis

Bare Facts
Teacher: Describe the manners and
customs of the people of South Africa.
Student: They ain’t got no manners
and they don’t wear no costumes.

Crawl In

Happy Now
“Do you still wake
grouch?”
“No, I got a divorce.”

On Duty
1st Policeman: Did you get that
guy’s number?
2nd Same: No, he was going too
fast.
1st: Boy, that was a honey he had
in the car with him!
2nd: Wasn’t she!

O
O m a h a N a t i o n a l B a n k ....................................... 27

I*
P olicy h o ld e r s National L ife Insurance
C o m p a n y ..............................................................50
P u b l i c N a t i o n a l B a n k a n d T r u s t C o ............ 33

U
Q u e e n C it y F i r e I n s u r a n c e C o m p a n y . . . . 52
It

R a p i d C i t y N a t i o n a l B a n k .............................. 52
R i c h t e r P e r s o n n e l . . ............................................47
S
St. P a u l M e r c u r y I n d e m n i t y C o ...................38
St. P a u l T e r m i n a l W a r e h o u s e C o ................ 12
S c a r b o r o u g h a n d C o m p a n y ................ 39-57-69
S e c u r i t y S a v i n g s B a n k — M a r s h a l l t o w n . .72
Stock Yards N ational B a n k —
S o u t h St. P a u l .....................................................46

T
T e n s i o n E n v e l o p e C o r p o r a t i o n ......................72
T o o t l e - L a c y N a t io n a l B a n k ..................... 58-59

TJ
U n it e d S ta te s N a t i o n a l B a n k ........................56

W
W a l t e r s , C h a r le s E., C o m p a n y ..................... 60
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ..........40
W h e e l o c k an d C u m m i n s ................................... 36

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Federal Reserve Bank of St. Louis

uccess in banking

is not built on resources alone, but

on skillful management of resources.

☆

Member Federal Deposit Insurance Corporation

Member Federal Reserve System

Additional Flights Speed Transit Service!
Fast nation-wide transit and collection service is made possible by Des Moines' loca
tion at the junction of two important air lines . . . United's transcontinental EastWest route and Mid-Continent's North-South system.
Additional flights now permit even better service to principal cities in every part of
the country as over-night points for the payment of checks, drafts and collection
items forwarded through the Iowa-Des Moines National.
Few cities enjoy the advantage of direct service by
two major air lines, in addition to excellent railroad
connections in all directions.
You and your Bank are cordially invited to use the
fast, complete and dependable correspondent facil
ities provided by Iowa's Largest Bank to insure firstclass banking service for your customers.
A Strong, Dependable Correspondent Connection

IOWA-DES MOINES NATIONAL BANK

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Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation