Full text of The Northwestern Banker : June 1949, 54th Year, No. 743

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JU N E

1049

A Small Town Bank
With Big Ideas

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Federal Reserve Bank of St. Louis

NATIONAL AND STATE PRESIDENTS CONFER— See Page 9

The Merchants National Bank offers
Nationwide Banking Service in the
Grain Center of Iowa
Cedar Rapids, Iowa's leading industrial city, is the
grain and clearing center of the state. The Merchants
National, with its vast "network'7 of correspondent
banks, is equipped to provide unexcelled service in the
handling of all grain items.
You are cordially invited to use the services of The
Merchants National for all of your banking transactions.
Since 1881 business leaders have depended on this
strategically located bank for all of their banking
requirements in the Middlewest.

THE
MERCHANTS MTIOML
^ = B M

K =

O F F I C E R S
JAMES E. HAMILTON, Chairm an Executive
Committee
S. E. COQUILLETTE, Chairm an of the Board
JOHN T. HAMILTON II, President
MARK J. MYERS, Vice President
FRED W . SMITH, Vice President
GEORGE F. MILLER, Vice President
Trust Officer
M AR VIN R. SELDEN, V ice President

J$r

and

R. W . M AN ATT, Vice President
L. W . BROULIK, Vice President
PETER BAILEY, Cashier
R. D. B RO W N, 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

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Federal Reserve Bank of St. Louis

U H

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Ill :' '

Northwest ern Banker, June, 1949

rid
*r k n A h l e m s to * •

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These services will save you time and money and give you
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full use o f them. Send for our folder describing these services.

Continental I llinois N ational Bank
and T rust Company of Chicago

Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

CHICAGO

90, I L L I N O I S

M em b er F ed era l D e p o s it In su ra n ce C orp ora tion

cAwo/A
/ rtm

< 7T tm eé

J jo m e
Y'

JOEL CHANDLER
HARRIS

T he house in A tlan ta where the creator o f Uncle Remus lived fo r twenty-seven years

wrens

who set up housekeeping in

Harris and his family remained in At

suaded to visit President Theodore Roose

lanta and in 1876 he went to work for the

velt who later wrote, “ All of our family

Constitution where another “ accident” oc

agreed that we had never received in the

the mailbox gave Joel Chandler Harris's

curred. When a staff writer

White

home its name. Rather than disturb the lit

left, his column was assigned

friend or a man whom we were
more delighted to honor.”

pleasanter

tle tenants who returned each year, he once

took a distinguished visitor around to the

Uncle Remus, a character of

As a youth, Harris worked

rear entrance.

his own invention. The result

in New Orleans for a time but

was

homesickness for G eorgia

The man who won world-wide renown

Harris

who

long

introduced

succession

for his Uncle Remus stories always insisted

Uncle Remus fables and songs

drove him back and he never

that his success was entirely accidental. The

which were published in book

again left for more than a

“ accident” that launched his newspaper ca

form and to the modest au

reer at the age of fourteen was 'securing a

thor’ s

job as printer’s devil on Jbe Countryman.

with wide enthusiasm.

amazement,

received

With his profits Harris was able to
enlarge the Wren’ s Nest where he had

After his marriage he was work

his

The Wren’s Nest where

Uncle Remus w as a composite
o f several real persons

While setting type he managed to include

brought

brtef stay.

articles he had written and soon became an
acknowledged contributor.

House

increasing

Joel Chandler Harris lived un

til his death is today maintained by the
Uncle Remus Memorial Association.

family

some years earlier, but despite his

The Home,

through

its agents

and

ing on a newspaper in Savannah

fame he never abandoned his sim

brokers, is America’s leading insurance

when a yellow fever epidemic

ple habits. Painfully shy and

protector

of American

homes and the

homes of American industry.

caused the population to flee. At

sensitive, Harris was uneasy with

the Atlanta hotel where he took

strangers, yet his kindness and

his family he registered as “ J. C.

sense of humor made him beloved.

Harris, one wife, two bow-legged

He shunned publicity and when

children, and a bilious nurse.” His

making an appearance with his

humor was so cheering to the

good friend Mark Twain was too

FIRE

panic-stricken

bashful to read his stories aloud.

The H om e Indemnity Com pany, an affiliate,
writes Casualty Insurance, Fidelity & Surety Bonds

guests

that

hotel refused to render a bill.

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Federal Reserve Bank of St. Louis

the
The T a r B aby story is
perhaps the best loved

With great difficulty he was per

THE HOME

Home Office: 59 Maiden Lane, New York 8, N.Y.
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THE N A T IO N A L

CASH

Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

C O M P A N Y D A Y T O N

9, OHIO

Along
the Streams
•4

of Commerce

►

Around
the World <

. . . you w ill find the C h ase n etw o rk o f bran ch es and
co rre sp o n d e n t ban ks.
T h r o u g h this o rg a n iz a tio n , the C h ase can p ro vid e b oth u p -to -th e -m in u te
in fo rm a tio n and the tech nical k n o w -h o w o f lo n g ex p erien ce in fo r e ig n trade.

You are invited to send for our folder
"Import and Exchange Regulations of the Principal Countries of the World ”

Banks can broaden
their Service to
customers by using
Chase facilities

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Federal Reserve Bank of St. Louis

THE C H A S E NA T I O NA L B A N K
OF THE CI TY OF NEW Y O R K
HEAD OFFICE: Pine Street corner of Nassau
Member Fiderai Di-posit Insurance Corporation

OVERSEAS b r a n c h e s
London • Frankfurt/Main • Heidelberg • Stuttgart • Tokyo • Osaka • Havana • San Juan • Panama • Colon • Cristobal • Balboa
Offices o f Representatives: Mexico, D. F. • Buenos Aires • Rome • Cairo • Bombay
THE CHASE BANK: Paris • Shanghai • Hong Kong • Tientsin

Northwestern Banker, June, 1949

i
V

From one banker
to another • • • •

This will indicate that on the
2nd of January we will have had
an account with The First National
Bank for 75 years. It may seem a
long time, but I have never had
an occasion to note during all
these years a more pleasant
relationship, and I know of no
reason why this should not
continue for many years more.

k
Your bank is cordially invited to use The First National Bank
o f Chicago as your correspondent.
Every effort will be made by us to promote and maintain the kind of
helpful cooperation that brings us letters like the one quoted above.

The First N ational Bank of Chicago
Bu ild in g w ith C h ic a g o a n d the N atio n Since 1863

Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

{

D ea r E d ito r
J

DES MOINES
O ldest Financial Journal West of the Mississippi

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

"Splendid Periodical"
“ I congratulate you upon your splendid
periodical, the N o r t h w e s t e r n R a n k e r , and
your incessant efforts to make it better.”
A. R. Furnish, Vice Presi
dent, Louisville Trust Com
pany, Louisville, Kentucky

"Brings Back Memories"
“ Would you, please, forward one copy of
the picture that was printed on page 13 of
the April 1949 issue of the N o r t h w e s t e r n
B anker.

“ Having spent all my time overseas in
the last war, stationed on an island in the
South Pacific, the picture is quite typical
of the kind of terrain and scenery over
there. I realize this was no doubt taken
within the continental limits of the United
States; it nevertheless brings back wonder
ful memories.”
Larry N. Strahan, Fdwardsville, Illinois

"Created Favorable Comment"
“ We have just completed installation of
Stanley Magic Doors in our bank. These
doors are electrically equipped consisting of
all glass. Both the main entrance to the
(Turn to next page, please)

O N T H E C O V ER
At the left in the picture on the
cover page of this June issue of the
N orthwestern B anker is Evans Wool
len, Jr., chairman of the board of the
Fletcher Trust Company, Indianapolis,
and president of the American Bank
ers Association. Mr. Woollen is speak
ing at a number of middle western
bankers’ conventions during the early
summer.
Pictured with Mr. Woollen is T. S.
Harkison, president of the National
Bank of South Dakota, Sioux Falls,
and last month elected president of
the South Dakota Bankers Association
at the annual meeting in Aberdeen.
Pictures and story of the South Da
kota meeting appear on page 53.

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Federal Reserve Bank of St. Louis

•

54th Year

•

No. 743

IN THIS JUNE, 1949, ISSUE
EDITORIALS
Across the Desk from the Publisher................................................ 12, 13

FEATURE ARTICLES
On the Cover.................................................................................................
Dear Editor........ ....................... ............................................. ...................
A Small Town Bank With Big Ideas............................Arlie Murphy
Are Taxes So High They Suffocate Both Capital and Jobs?.......
.................................. .................................. Francis Adams Truslow
News and Views of the Banking W orld................... Clifford De Puy
Spring Meeting A.B.A. Executive Council at French Lick—
Story and Pictures.............. ...............................................................
Central States Conference— Story and Pictures..................................
Can F.D.I.C. Fix Capital Ratio?....................................N. P. Black
What Other State Commissioners Say About Ruling...............
Bankers You Know— Percy J. Ebbott....................................................

9
9
16
17
18
19
20
21
21
22

BONDS AND INVESTMENTS
Good News for Your Investment P ortfolio........... Raymond Trigger 35
Investment News ........ ............................................................................... 37

INSURANCE
How Banks Write Insurance—
A N orthwestern B anker Survey............................................ 38, 39

STATE BANKING NEWS
The Minnesota Convention.... ................. .................................................
Twin City News...................................................................................
South Dakota Convention Breaks Attendance Records—
Story and Pictures.... ..................................... ....................................
Sioux Falls News............ ............................ ..............................
The North Dakota Convention........ ..............
Nebraska News.................... ....................... .................................
Omaha News ..........................................................................
Iowa News ...................................................................
Around the GroupMeetings— Pictures.............................................
Sioux City News.................. ...............................................................
Des Moines News................................
Conventions ............ .................................................................. ........

43
47
53
50
57
59
go
65
69
70
70
74

IN THE DIRECTORS' ROOM
A Few Short Stories to Make You Laugh.............................................. 74
NORTHW ESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-81Ó3
CLIFFORD DE PUY
Publisher
HENRY H. HAYNES
Editor
ELIZABETH COLE
Advertising Assistant
PAUL W. SHOOLL
Field Representative

RALPH W. MOORHEAD
Associate Publisher
BEN J. HALLER, JR.
A ssociate Editor
HAZEL C. STEPHENSON
Auditor

MALCOLM K. FREELAND
A ssociate Editor
SADIE E. WAY
Circulation Department
JOSEPH W. FRANKS
Field Representative

NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray Hill 2-0326

DE PUY PUBLICATIONS:
Northwestern Banker, Underwriters Review,
Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.

Northwestern Banker, June, 1949

D ea r E d ito r

' "

».....NI

FOCAL POINT
foi Co-ordinated Regional
(Continued from page 9)
bank lobby on the south and also the east
entrance door which opens into our new
savings department are equipped with these
doors.
“ Our new savings department is now be
ing completed and is located at the north
end of our lobby which was formerly a
barber shop.
“ The electric eye doors are the first of
this kind installed in any concern in Lincoln
and they have created favorable comment.”
Albert A. Held, Executive
Vice President, National
Bank of Commerce, Lincoln,
Nebraska

"Truman as Helpless as Hoover"
“ Elaborating further on your ‘Across the
Desk from the Publisher’ letter in the May
issue of the N o r t h w e s t e r n B a n k e r to the
Hon. Herbert Hoover and the Commission
he heads as Chairman. I have no doubt but
that we all join with you in your commenda
tions of Mr. Hoover’s RECOMMENDA
TIONS, as does President Truman, who has
lent to Mr. Hoover every consideration and
support, which you ignore. However, like
many other recommendations similar to
those of the Hoover Commission they haven’t
a chance unless Congress acts favorably.
“ President Truman is just as helpless as
was President Hoover in his efforts to bring
about legislation to cure ills and abuses,
the smell of which always reaches to high
Heaven.
“ And so the issue is not adverse to your
praise of Hoover, but is against the failure
to make clear the Truman stand; for unless
the recommendations are given action by
the Congress, increased taxes will become
imperative and in asking for the increase
of four billion, the President has no re
course as against the spending authorized
by Congress.”
Leo J. Wegman, President,
Citizens Savings Bank, Anamosa, Iowa

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Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

DEPOSIT

I NSURANCE

C O RPORA T I ON

'■j

“ Thanks for your letter extending your
best wishes on my 50 years with my bank.
“ You have certainly done a woilderful job
with the N o r t h w e s t e r n B a n k e r . In my
opinion, it is the outstanding bank maga
zine.”
James B. Owen, Chairman
of the Board, Stock Yards
National Bank of South
Omaha, Omaha, Nebraska

collection service throu gh B o nkers Trust
examined to expedite presentation

Where collections are concerned, it’s

To further minimize delay, you

accuracy, speed and dependability

are invited to write us with a view

that count.

to securing full benefit from mail

Through our experienced Foreign

and express schedules —both rail and

Division, we can also give you fast

W hen your bank sends its checks,
notes, drafts, trade acceptances and
bills of exchange to us for collection,
you receive prompt and dependable
service—twenty-four hours a day. All
transit items payable outside of N ew

and minimize "returns.”

collection service on your foreign

air.
In addition, our experienced Col

items.

lection Department receives millions

For full information on the col

of coupons and bonds for collection

lection service in which you are

every year. N o matter how great our

interested, please write Banking

volume may be, particular attention

D epartm ent, Bankers Trust C o m

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is given to items that require special

pany, 16 W all St.,

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Federal Reserve Bank of St. Louis

Bankers T rust Company
NEW

YORK

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, June, 1949

12
“ This proposal to restrict the lending power of
banks at a time when the deflationary forces are
under way is untimely.
“ The Board says it may not use the power
granted and as evidence points out it has recently
reduced reserve requirements.

But the very pos

session of these powers by the Board is deflation,
ary.

Every prudent banker will feel he must

keep enough extra money in short-term govern
ment securities to meet the reserves which the
Board may call for in its discretion at any time.
The sword of Damocles may not fall but nobody
who lives under it can ignore its presence.
“ The proposed legislation is not only untimely;
it is wholly unnecessary.

No damage will be

done by the lapse of these powers on June 30.
“ The emergency for which the powers were
granted to the Federal Reserve Board is past, and
the powers so granted should pass with the emer
gency.
“ The Council is unanimous in believing that

Across the Desk
From the Publisher

control over installment credit has no permanent
place in the American peacetime economy. To give
any group of men, such as the Federal Reserve
Board, power to regulate the terms and conditions
of installment credit in peacetime can only injure
the economy.

The maximum terms of credit pre

scribed tend inevitably to become the minimum

(Ü qjoül.

dwcüuL

fi/ww/L:

terms for the great majority.

Chairman of the Board, F irst National Bank, Chicago.
On June 30, 1949, the temporary authority of
the Board of Governors of the Federal Reserve

It is our belief that

down payments, on the average, would probably
be larger and terms of payment shorter if no
Regulation W were now in effect.

Governmental

changes in terms and conditions from time to time

System over bank reserves will expire unless Sen

on which installment credit can be extended cause

ate Bill 1775 is passed before that time.

confusion among merchants and manufacturers

This Senate Bill would make permanent the
temporary authority which was granted to meet
what was felt to be an inflationary threat.
The N o rth w ester n B a n k e r sees no necessity
for the passage of this legislation and in your
recent statement, Mr. Brown, as President of the
Federal Advisory Council, to the United States
Senate Committee on Banking and Currency, you
also opposed this bill by saying :
“ Senate Bill 1775 has two purposes.

who have adopted and advertised given terms of
payment. ’ ’
L e t’s hope, Mr. Brown, that Senate Bill 1775 is
defeated and that no further powers in connection
with reserve requirements and installment credit
are granted to the Federal Reserve Board.
We

have

regulations

emanating

from

Washington now than we need— many more.

The first

is making permanent the temporary power given
the Reserve Board last summer to raise reserve
requirements of member banks by 4 percentage
points on demand deposits and D/2 percentage
points on time deposits.

This temporary power

was an anti-inflation measure.

(D sjc U v

T th w ia ij^

ShisdjdA

Vice President, Bank of the Manhattan Company, New
Y ork.
I 11 analyzing the present business outlook, Mr.

It gave the Board

Shields, you stated that, “ W e shall have a severe

power to require member banks to immobilize

or prolonged depression only if the Government

some 4 billion dollars of their funds and made this

relies solely on its spending power to turn the tide

money unavailable to lend or invest.

and refuses to take those actions which will re

“ This is exactly the opposite of what the present
situation requires.
been declining.

For some months business has

The critical question is how far

the recession will go.
Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

activate and reinvigorate the factors making for
expansion in the private sector of the economy.
Of our gross national product of about $250 bil
lions

approximately

$200 billions

originate

13
The Government hasn’t got

“ The only point at which Socialism and Com

what it takes to offset even a 20 per cent decline in

private enterprise.

munism have excelled Americanism is in their

private income by an increase in its own expendi

promises, their propaganda, their missionary zeal.

tures and the great risk is that any threat that the

W e Americans have practically stopped educating

Government

the youth in America in those principles which

contemplated

any

such

course

action— with the inevitable deficit— might under
mine the whole structure of confidence on which
enterprise rests.

made America unique.”
It seems rather strange to us, Dr. Link, that a
nation which has developed advertising and sales

“ The sequel to the postwar boom will be a

manship to a higher degree than any other country

moderate readjustment followed by a great period

should fail to sell its own “ ideology” and its own

of prosperity or a long debilitating period of de

form of government to its own people.

pression, depending upon how realistically we ap

As you ably put it, “ Every day it is becoming

proach the problem of restoring the drive in the

more obvious that the No. 1 job is not to sell goods

private enterprise system .”

and products, but to sell the concepts or ideas

If, Mr. Shields, as you have pointed out, the gov

which make these products possible.

Unless we

ernment cannot offset even a 20 per cent decline

can quickly sell Americanism to the Americans,

in private income by an increase in its own ex

nothing else will m atter.”

penditures, then it is high time that the public

Certainly with all our ingenuity and our sales

stops believing that we can prevent a depression by

ability it should be a task which we can perform in

simply starting another round of W P A projects.

America without great difficulty— but it must be
done.

Too many people have been led to believe from
speeches emanating from W ashington that the
economy of the country can always be controlled
either by increased taxation or by increased spend

Q & M l. ^ jo h tL

£ .

v n o d e , £ tl :

ing.
One very definite thing which Congress and the

Deputy Manager of the American Bankers Association.

expenses by

You made a very fine suggestion in your address

using the Hoover report as a basis for government

to the New Jersey Bankers Association that bank

President should do is to reduce
economies.

But will they?

Probably not.

ers everywhere can develop new business more
quickly,

effectively

and

less

expense

through their present customers than through any

(L)&aJc (D/e. dtoruu^ Q. ctin Jc:
Vice President o f The Psychological Corporation.
Your recent discussion of “ How to Sell Am er
ica to Am ericans’ ’ emphasized a fact which is too
frequently

overlooked by most

other source.
“ Present
said,

checking

account

“ are excellent prospects

customers,”
for

you

savings ac

counts, loans, safe deposit boxes and trust serv
ices.”

of ns, namely,

According to the figures of the Federal Deposit

‘ ‘ The real America lies not in her present wealth,

Corporation, there are 82,000,000 bank accounts,

her present luxuries, but in the system which pro
duced them .”

savings.

No other system in the world has been able to
produce the goods and services which have been
produced under the American system.
Neither communism, socialism, nor any other
“ ism ” has competed successfully with American
ism.
As you point out, Dr. Link, “ W hile still not

half of which are checking, and half of which are
This would indicate that at least 41,000,-

000 of these customers are prospects for savings
accounts, loans,
bank services.

safe deposit

boxes

and

other

As you point out, Mr. Mack, “ So why rack our
brain searching for new ways to reach only new
people, when the best ways of all are right at hand
and only partly used. ’ ’

perfect, there is today little or no comparison

Naturally, every bank wants new customers and

between the American system of private capital

they should be cultivated, but certainly it is highly

ism and any socialist or communist system in the

desirable to increase the “ sale” of bank services

world.

Never in all history have the great masses

to present customers who should be more receptive

of a nation achieved so high a level of economic

to your “ selling” and then solicit business from

equality and freedom.

non-depositors.

As compared with the

common man in Europe, Russia, India, China, the
common man in America, even the man on unem
ployment relief, is a bloated plutocrat.

Therefore,

to say that the best or the only way to stop Com
munism or Socialism is to improve our present
system is not only naive, it is sheer nonsense.

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Northwestern Banker, June, 1949

I o w a ’s F a v o r i t e

Correspondent

Ba nk

Correspondent Service
. . . is constantly alert to its opportunities
to render a complete, friendly and
efficient service—
. . . and is constantly aware of its respon
sibilities to those it is our pleasure
and privilege to serve.

C E N T R A L N A T IO N A L BANK
and Trust Company
Des Moines, Iowa
Member

Northwest ern Banker. June, 7949
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Federal

De p o s i t

I ns u r a n c e

Co r po r at i o n

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Northwest ern Banker, June, 1949

LOCATED IN THE HEART OF “EGYPT,” the Bank of
Benton, Illinois, has capitalized on its strategic location to
draw business from rich coal mining, oil producing and farm
ing interests all located within a 50-mile radius from the bank.
Following a progressive policy instituted 10 years ago when
the present management took over, the bank has been com
pletely modernized and mechanized, with outstanding promo
tional ideas drawing the public in to use up-to-date facilities.

In the picture above, at left, are shown two girls at work,
in the posting room. At the right is the usual lineup of
youngsters before the “ rollaway” teller’ s cage in the “ Teen
Town” Savings Department in the Bank of Benton. The cage
is operated by Caroline DeMattie, a Benton High School student.
In the inset picture above is R. H. Havens, now vice presi
dent, who was the guiding light in setting up the Bank of
Benton on its present basis.

A Small Town

¡tan k 1 % Id ea

M odernization, M echanization and Good
Prom otionai Id eas H a ve Put This Bank on the Map
By ARL1E MURPHY, Cashier
Bank of Benton
Benton, Illinois
S A visitor approaching Benton
rounds the last turn on Illinois
14 the billboard of the Bank of
Benton fills his field of vision announc
ing that “The Bank of Benton AVel-

comes You to the Capital of Egypt.”

The reference to the “capital of
Egypt” derives from the era in early
Illinois history when crops in the area
of that part of the state south of the
Baltimore and Ohio Railroad were
plentiful, while north of the line the
harvest was sparse. As the people of
the northern part of the state came
south to obtain the benefits of the rich
harvest, the biblical parallel of the
story of Joseph, and the land of plenty
that was Egypt, was recalled and that
rich portion of southern Illinois be
came known in the lore of the settlers
as “Egypt.”
The Bank of Benton being situated
in almost the exact geographic center
of a 50 mile circle embracing the area
of “Egypt,” it was only natural that
the agile brain of R. H. Havens should
capitalize on the connection. From
the time that Mr. Havens and our
present organization took over the
two year old Bank of Benton in the
fall of 1939, he has been the guiding
light in the promotion of a program
Northwestern Banker, June, 1949

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Rapid Growth

The “Teen Town” Savings Depart
ment is another brain child of Mr.
Havens. Inaugurated in late June of
last year to promote the idea of sav
ing among children two to eighteen,
this department now has 245 teen ac
counts ranging in size from 15 cents
to $210 with total deposits of about
$4,600.

The bank was first organized in
July, 1937, and existed for two years
at the corner of North Main and the
Town Square in Benton, the county
seat of Franklin County, Illinois. Ben
ton is situated about 90 miles south
east of St. Louis in the rich coal min
ing, oil producing, and farming district
of southern Illinois, and has a popula
tion that has grown to well over 8,000.
When a group headed by Fred G. Har
rison took over the Bank of Benton in
1939 it was capitalized at $50,000 with
slightly over $275,000 in resources. By
1940 its resources had mounted to
$643,000 and today it is capitalized at
$282,000 with resources amounting to
almost five million dollars. The bank
has about 4,000 commercial checking
accounts and over 600 savings ac
counts, plus more than 200 accounts
in the “Teen Town” Savings Depart
ment.

The “Teen Town” Savings Depart
ment has regular banking hours from
9 to 12 on Saturday morning and is
run by Miss Caroline DeMattie, a Ben
ton High School student who sits in
a “rollaway” teller’s cage and takes
in deposits ranging from two cents
from a two year old to the $15 earned
by the grocery boy during the week.
Regular interest rates are paid on all
accounts and our school officials have
heartily endorsed the idea because of
the practical lesson it provides in sav
ing and watching interest accumulate.
Although only five or six dollars
may be drawn from accounts without
parental approval, this department
has handled some transactions that
are comparable to its more adult coun
terpart, as is demonstrated by the case
of the farm boy who negotiated a loan
(Turn to page 33, please)

that has earned our bank the title of
“the small town bank with big ideas.”
Although Mr. Havens took over the
presidency of the Paducah Bank, Pa
ducah, Kentucky (60 miles south),
early this year he is still a vice presi
dent of the Bank of Benton and main
tains an active interest in its progress.

"Teen Town"

"M oney is not ca p ita l and it must take a lot of risks in the p ro cess of becom ing ca p ita l.
In the long run it w ill only be com m itted perm anently to those risks if a real inducem ent exists.
O w n e rs of m oney are like mules in this resp ect, and no amount of beating them on the behind
can e v e r equal the effect of a ca rro t out front. The present tax system doesn't seem to re c
ognize that a larg e carro t is n e c e ssa ry ."

A r e Taxes so SSiffh Then
Suffocate Stoth Vapital

d obs?
By FRANCIS ADAMS TRUSLOW

President, New York Curb Exchange
APITAL is a complicated sort of
a thing. Hard to establish, de
manding to maintain and diffi
cult to understand. It can’t be ordered
around. If it is, it reacts by disappear
ing as fast as a covey of quail. How
ever, if it is managed by someone who
understands its power and its limita
tions, it does prodigious feats. On the
other hand, we have all seen it turn
limp in the hands of men who think
it is like an oil well or a charity ba
zaar.
Unfortunately a great many people
think that capital is a very simple
thing that anyone can assemble and
use for any purpose. It seems to me
that one of the most prevalent reasons
why capital is misunderstood is that
too many think capital is merely
money. Because it is measured in
terms of money it has become money,
mere cash, in the thoughts of the
average man. If we talk about a
bushel of corn there is no misunder
standing of what it is. No one con
fuses a bushel of corn with money,
even if they know its market value.
Until we can think of capital as
hand tools, power machines and all
sorts of factories and as more than
these things alone, as an organized
combination of tools and training and
a place to use them and a purpose for
doing so, we will misunderstand it and
so fail to use it to best advantage or
expect of it what it can’t supply.
It is unfortunate that people think
of capital as the dollars by which, for
convenience, they measure it. It is
unfortunate because it leads to mis
understanding and because the very
measurement, which they substitute
for reality, is only a rough approxi
mation.
“Company A ’s capital is one million
dollars,” we say, “but Company B’s
capital is two million,” we add. These
statements have no real meaning.

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is carried on the books at ten thou
sand dollars. Capital is not the book
entry, but what lies behind it. In the
same way ten thousand dollars in cash
could not procure the busy machine.
It might pay for the idle one, but it
couldn’t make it busy.
I am not talking accounting terms.
I am not suggesting that we give up
bookkeeping. What I am suggesting
is that much misunderstanding would
be avoided if we could spread the habit
of thinking of the capital of companies
as things and not as dollars.
Despite high levels of industrial pro
duction, people have become increas
ingly reluctant to contribute perma
nently to industrial capital.

F R A N C IS A D A M S T R U S L O W
President, N ew Y ork Curb E xchange
“ L argest portion o f w ealth produced
goes to em p loyes”

From them we learn nothing about
the capital of either company. In fact,
they don’t even .tell which company
has the larger capital in any real sense.
We might have said “Company A
has an efficient factory, fully equipped
and is doing business at a profit, but
Company B is struggling along in an
obsolete factory producing b u t t o n
shoes at a loss; incidentally, Company
A has one million dollars in the busi
ness but B has two million tied up.”
Here are statements that tell us some
thing about the nature and effective
ness of the capital of A and B. They
describe it as dollar signs can’t.
This confusion of capital and its
money yardstick produces an impres
sion that capital and money are the
same. As a result money itself is
thought of as capital. Capital in the
form of a busy machine is wholly dif
ferent than capital lying in an idle
machine, even though each machine

The test of whether people will vol
untarily place their money in the proc
ess is whether or not they do. The
records against which this test may
be made are not open to question.
They are the record of sales of new
securities through dealer organiza
tions and the record of transactions in
issued securities on the stock ex
changes. These records show an in
creasing reluctance to buy new com
mon and preferred stocks. They show
a generally diminishing interest in ei
ther acquiring or disposing of stocks
which have been issued in the past
despite the low prices at which these
shares are offered in relation to earn
ings.
During the past four years the per
centage of new capital raised by sell
ing common and preferred shares has
fallen from about 52 per cent to about
20 per cent of the total.
During the past four years the an
nual volume of stock transactions on
all exchanges has fallen from around
800 to about 550 million shares and
in the first quarter of this year it was
vat an even lower rate.
(Turn to page 30, please)
Northwestern Banker, June, 1949

News and Views
OF THE BANKING WORLD
By C L IF F O R D DE PUY, Publisher

executive vice
Financial Public Rela
Ptionspresident,
Association, Chicago, has issued
RESTON E. REED,

a survey on “Trends in Commercial
Bank

Advertising

Expenditures,”

which indicates that bank advertising
expenditures will continue their up
ward trend in 1949.
Eighty per cent of the banks re
ported budgets for 1949 will equal or
surpass their 1948 expenditures, and
45 per cent have increased their 1949
budgets over the previous year’s out
lay.
Roy L. Stone who recently retired
as vice president of the First Wiscon
sin National Bank of Milwaukee, is
73 years young.
Roy began his banking career 56

R O Y L. S T O N E
R etirin g V ic e President
F irst W iscon sin N ational Bank

years ago in Milwaukee and for the
past 20 years has been in the business
development department of the bank.
As a young man Roy was quite an
athlete and was a champion bicycle
racer. His activities in recent years
have not been quite so strenuous and
his main hobby has been the collec
tion of pipes of which he has 400,
gathered from countries throughout
the world.
Allan B. Kline, president of the
American Farm Bureau Federation, in
expressing his opinion of Secretary
of Agriculture Brannan’s bill said,
Northwestern Banker, June, 1949

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“When someone promises cheap prices
for consumers and high prices for
farmers on the same food item, it
sounds to me like a vote-getting ap
peal.”
Ernest C. Blanche, chief statistician
for the logistics division of the Army
General Staff, has just written a book
on “Poker Hands” in which he says,
“Although every poker player is
pretty sure the next one will be a
royal flush, more than half these
hands, or 1,302,540, won’t even contain
a pair. The odds against a royal flush,
by the way, are 649,739 to 1.”
Verne L. Bartling, Jr., was married
last month to Patricia Cantwell of Chi
cago. The Bartling name is quite fa
miliar to bankers in the middlewest
since the groom’s father is Verne L.
Bartling, assistant vice president of
the First National Bank of Chicago.
Verne, Jr., is with the National
Bank of Commerce of Chicago and was
in the navy air force for five and onehalf years. Verne and Patricia spent
their honeymoon in Miami and Ha
vana.
Frank F. Allen, retiring president
of the New Jersey Bankers Associa
tion, and president of the Seacoast
Trust Company, Asbury Park, New
Jersey, looks optimistically into the
future but expresses the belief that,
“Bankers today should keep a very
sharp eye on the economic picture as
we see it, for a banker has a definite
responsibility to maintain prosperity
in his community. The bank is the
leading enterprise of any community,
and its responsibility in community
building is based on the service it ren
ders. That responsibility is greatly
increased during times of economic
flux. Among all people, the banker
must be one to maintain a sense of
balance, especialy during this period
when unreasoning fear could have
serious consequences in our domestic
economy.”
Evans Woollen, president of the
American Bankers Association, and
chairman of the board of the Fletcher
Trust Company at Indianapolis, in
speaking before the Executive Coun
cil meeting at French Lick, expressed
the opinion that there is a “strong
tone of confidence” being held by most
business leaders, and in considering

the outlook for the balance of the year
said, “ (1) There is still an enormous
pent-up demand for goods and the
public is still in possession of very
large funds with which to buy. (2)
The European aid program certainly
will continue to be a stimulus to busi
ness and employment. (3) Rearma
ment and military aid to the Atlantic
Pact nations is another sustaining fac
tor. (4) The banking situation is
good, with no problems so far as the
banks are concerned to add difficulties
to the general scene.”
Fred W. Thomas, president of the
First National Bank, has been elected
president of the Omaha Clearing

President,

FRED W . TH OM AS
Omaha C learing H ouse

A ssociation

House

Association, succeeding W.
Dale Clark, president of the Omaha
National Bank. Ellsworth Moser,
president of the United States Nation
al Bank, was elected vice president,
and Carl Swanson was elected secre
tary.
Burnell Sloan, president of the First
National Bank of Columbia, South
Carolina, and president of their state
association, does not believe that the
American people are going to throw
the Declaration of Independence on
the scrap heap of socialism. He puts
it this way, “We are not ready to ex
change its guarantees of freedom for
a nebulous promise of security from
the cradle to the grave. Every people
(Continued on next page)

Sp ri itff 3 i eet in ff A • it. A , E xecu tive
Council ut French Eick
BANKERS ATTENDING THE SPRING MEETING of the
executive council of the American Bankers Association at
French Lick, Indiana, last month were very much opposed to
the centralization of banking powers in Washington, D. C.
They believe that such a trend would lead to socialism and they
will fight any legislation in Congress which leads in the direc
tion of giving more power to Washington banking authorities.
Pictures taken by the Northwestern Banker at the French
Lick meeting are shown above. Reading from left to right
they are:
1. J. R. Kenner, president, Nebraska Bankers Association, and
president, Thayer County Bank, Hebron; Ray R. Ridge, senior
vice president, Omaha National Bank, Omaha, and T. J.
O’Brien, vice president, Second National Bank, Houston, Texas.
2. The Iowa Breakfast, enjoyed by 21 Iowans at the meeting.
Starting at the near end of the table and reading to the left
and clockwise around the table, they are: Harry W. Schaller
(back to camera), president, Iowa Bankers Association, and
president, Citizens First National Bank, Storm Lake; Mrs. J.
V. Kenpler, Dubuque; Leo J. Wegman, president, Citizens Sav
ings Bank, Anamosa, and president, Dyersville National Bank,
Dyersville; Mrs. Herbert L. Horton, Des Moines; H. L. Horton,
president, Iowa-Des Moines National Bank, Des Moines; Mrs.
V. W. Johnson, Cedar Falls; F. C. Welch, president, Peoples
Bank & Trust Company, Cedar Rapids; Mrs. A. T. Donhowe,
Des Moines; V. W. Johnson, president, First National Bank.
Cedar Falls; Mrs. B. A. Gronstal, Council Bluffs; A. T. Don
howe, vice president, Central National Bank & Trust Co., Des
Moines; J. V. Keppler, vice president-treasurer, Iowa Bankers

liaA'e been seduced by this prem
ise have gone down the road to wrack,
ruin and chaos. We are not going
down that road, for it is men and
women like yourselves, the bankers of
our state and our nation, who will
throw into reverse this motivating
force, planned to convert our demo
cratic economy to a socialistic state.”
a v Ii o

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Association, and cashier, First National Bank, Dubuque; Mrs.
H. W. Schaller, Storm Lake; Harold P. Klein, vice president,
Iowa-Des Moines National Bank, Des Moines; Ben S. Summerwill, president, Iowa State Bank & Trust Co., Iowa City; B. A.
Gronstal, president, Council Bluffs Savings Bank, Council Bluffs;
Mrs. F. C. Welch, Cedar Rapids; W. Harold Brenton, president,
Brenton State Bank, Dallas Center, among other Iowa banks,
Des Moines; Frank Warner, secretary, Iowa Bankers Associ
ation, Des Moines; Ben E. Summerwill, assistant cashier, Iowa
State Bank & Trust Co., Iowa City, and Mrs. W. Harold Bren
ton, Des Moines.
3. R. A. Gruber, president, West Allis State Bank, West
Allis, Wisconsin; Mrs. A. R. Vogtsberger, wThose husband is
president, Wisconsin Bankers Association and vice president
and trust officer, Bank of Menomonie, and James L. Stone,
president, First National Bank, Ripon, Wisconsin.
I. Rulon F. Starley, vice president, Commercial Security
Bank, Ogden, Utah; John Q. McAdams, president, The Winters
State Bank, Winters, Texas, and B. M. Harris, president, The
Yellowstone Banks of Laurel and Columbus, Montana.
5. Harry W. Schaller, president, Iowa Bankers Association,
and president, Citizens First National Bank, Storm Lake; Mrs.
Schaller; Mrs. J. V. Keppler, and J. V. Keppler, cashier, First
National Bank, Dubuque, Iowa.
6. Solomon B. Smith, executive vice president, Northern Trust
Company, Chicago, and John W. Remington, vice president and
trust officer, Lincoln Rochester Trust Company, Rochester, N cav
Y ork.

Franklin D. Roosevelt, Jr., who re
cently defeated the big bad boys of
Tammany Hall for a congressional
seat from the 20th district, may recall
that the Hague Machine of New Jersey
and the Kelley Machine of Chicago—
two of the most powerful and graftridden organizations in America—
were staunch supporters and allies of

his late lamented father.
Isn’t politics an interesting “game?”
It certainly pays to be funny, at
least on the radio, as Arthur Godfrey
was paid $440,000 last year by the
Columbia Broadcasting System to
make people laugh. Anyway, that’s
better than asking them to cry or get
mad.
Northwestern Banker, June, 1949

C en tra l S ta tes
C o n feren ce
vice presidents and
P RESIDENTS,
secretaries of 16 bankers associa
tions from north central Mississippi
valley states comprising the Central
States Conference attended their an
nual meeting at Louisville, Kentucky,
last month and elected the following
officers for 1949-50:
President, Robert E. Lee Hill, sec
retary of the Missouri Bankers Asso
ciation. Columbia.
First vice president, Ralph Fontaine,
executive secretary of the Kentucky
Bankers Association, Louisville.
Second vice president, James C. Scarboro, secretary-treasurer of the Colo
rado Bankers Association, Denver.

¡g ill

Secretary-treasurer, Carl G. Swan
son, secretary of the Nebraska Bank
ers Association, Omaha.

Northwestern Banker, June, 1949

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David M. Auch, executive manager
of the Ohio Bankers Association is
the retiring president. Mr. Swanson
succeeds C. C. Wattam, secretary of
the North Dakota Bankers Associa
tion.
Subjects discussed at the conference
included conventions, state legislation,
agricultural programs, federal legisla
tion, state association management,
committees and groups.
Shown in the pictures on this page,
reading from left to right in each
photograph, are:
Top—New officers of the Central
States Conference: First Vice Presi
dent Fontaine; Second Vice President
Scarboro,
and Secretary-Treasurer
Swanson.
Newly elected President
Hill was unable to attend the meeting
because of his legislative session ac
tivities.
Middle—Wall G. Coapman, secre
tary, Wisconsin Bankers Association,
Milwaukee; Harry E. Emerson, presi
dent, Illinois Bankers Association and
cashier, First Bank and Trust Com
pany, Cairo; Philip E. Speidel, vice
president, Illinois Bankers Association
and president, First National Bank,
Lake Forest, and J. R. Kenner, presi
dent, Nebraska Bankers Association
and president, Thayer County Bank,
Hebron.
Bottom—George Hart, president,
Kentucky Bankers Association and ex
ecutive vice president, Bank of Mur
ray; Harry AV. Schaller, president,
Iowa Bankers Association and presi
dent, Citizens First National Bank,
Storm Lake; Carl G. Breeze, cashier,
Bank of Kremmling, Colorado, and
Frank Powers, treasurer, American
Bankers Association and president,
Kanabec State Bank, Mora, Minnesota.

"I have an opinion from the Iowa Attorney General's office, addressed
to me as Iowa Superintendent of Banking, which in part, says:
" 'You are advised that it is the opinion of this office that the F. D. I. C.
is without power to fix a ratio in any amount of basic capital to deposits
as a condition to being and continuing as an insured bank.' "

Cun F .W .I .f '. Fix Capital R utin?
O ne S ta te A tto rn ey G eneral S a y s "No"
By N. P. BLACK, Superintendent
Iowa Department of Banking
Des Moines
than ten times the capital, or capital
and remaining surplus, which means,
$100,000 capital and surplus for each
$1,000,000 in deposits. Isn’t that better
protection for everyone concerned
than $25,000 basic capital to each
$1,000,000 in deposits? Also, the loan
ing limit of each bank is based upon
capital and surplus.

OTH capital and sound assets cer
tainly are most important. After
35 years of country bank experi
ence, my point of view is that, of the
two, sound assets are more important.
In addition to capital and sound assets,
I believe another very important and
very necessary protection to have is a
large surplus fund. Not only for the
protection of our depositors, but also
for the protection of our capital.
There is, little difference in the poli
cies of the F.D.I.C. supervising au
thorities and our department as to
the required quality and soundness of
bank assets. In fact, about the only
policy with which we have difficulty
in agreeing, is on basic capital.

Not F.D.I.C.'s Right

Different Policies
It is the policy of the F.D.I.C. to
consider only capital in their ratio of
$25,000 capital to each $1,000,000 in
deposits. My personal opinion is that
both capital and surplus should be
included as capital in making this
ratio because, under our Iowa banking
laws, there is little difference between
capital and surplus.
The amount of capital stock and sur
plus required of all Iowa chartered
banks is set forth in section 528.1,
Code of Iowa, and is predicated upon

n . p. B L A C K
“ F .D .I.C . should not be both judge
and ju ry ”

a population basis, and retransfer
from the surplus fund is set forth in
section 526.33, and provides that sur
plus fund cannot be used for payment
of expenses or cash dividends when
the deposits of the bank shall be less

In our opinion, it is not for the
F.D.I.C. to pronounce that operation
in accordance and compliance with the
provisions of these two sections con
stitutes an unsafe and unsound prac
tice and, to superimpose by legislative
act of the government agency, addi
tional requirements for deposit insur
ance.
Conditions under which state non
member banks may become insured
and remain insured are set forth in
section 12B of the Federal Reserve Act
as amended and states the following
definitions:
“ State nonmember bank means any
state bank which is not a member of
the Federal Reserve System. The term
insured bank means any bank the de
posits of which are insured in accord
ance with the provisions of this sec(Turn to page 24, please)

W h a t O th er S ta tes Saif A b o u t Iow a Rutiuff
J. F. McLain, State Director of
Banking, Lincoln, Nebraska: “We have
had no occasion to request a ruling
upon this subject. The law of this state
does not invest the Department of
Banking or the Federal Deposit Insur
ance Corporation with authority to re
quire capital stock increases.
“Our banking act, in a measure, ad
mirably takes care of requests for cap
ital stock increases. It states in part,
‘Before the declaration of such divi
dend, such corporation shall, . . . carry
an amount equal to 20 per cent of its
net profits, then accumulated since the

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preceding dividend, to its surplus fund
until or unless such surplus fund shall
equal 50 per cent of the amount of its
paid-up capital stock and until the
combined capital and surplus shall
equal 10 per cent of its average daily
deposits for the period of 12 calendar
months next preceding the month in
which said dividend is declared.”
W. A. Brown, State Superintendent
of banks, Helena, Montana: “Up to the
present time a ruling of this kind has
not been made in Montana. While in
a few instances the corporation has

suggested an increase in capital, it is
a matter that has been left more or
less to the stockholders, directors and
managing officers and this department
to determine.”
Frank E. Goldy, Chief Deputy State
Banking Commissioner, Denver, Colo
rado: “ Our statutes provide that capi
tal and surplus shall equal 10 per cent
of average deposits but at the present
time we have only two or three insti
tutions which meet that requirement.
Of course, the trend is to larger basic
(Turn to page 26, please)
Northwestern Banker, June, 1949

H ankers You K n o w
Y

A-

P e r c y •/. E bbott

President, The Chase National Bank
New York City, New York
y“The effort of every individual is important”

HEN Percy .). Ebbott was elected
president of the Chase National
Bank of New York in January, 1949,
he fell heir to that highly prized,
uniquely American title, “ small town
boy makes good.” As deserving as lie
is of the recognition that has come to
him, Percy Ebhott, who was born in
Fort Atkinson, Wisconsin, wrote to
the Chase National’s more than 7,700
employes the day following his elec
tion, “ I am pleased, humble and
hopeful— pleased with the opportu
nity, humble because 1 realize my
own limitations, and hopeful because
I am aware of the power of the men
and women who comprise the Chase
staff.”

This statement is typical of Percy
Ebbott for he has long been one to
recognize opportunity when it came
knocking.
This was demonstrated
early in his business career when, as
a youth fresh out of college, lie and
two friends organized a company to
manufacture portable houses, tents
and camping furniture. One of the
first contracts w as to build 75 portable
Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

bouses for the Great Northern Rail
way in Glacier National Park. I hese
portable bouses were humble fore
runners of the imposing Swiss chalets
luring visitors to Glacier Park today.
His ability to organize, lead and
work closely with other people is an
other outstanding characteristic that
has carried him to the top in the
banking world. He first entered the
banking field as an assistant cashier
with the National Park Bank of New
York in 1913. W ith the exception of
18 months during W orld W ar I when
he served as a captain in the Air
Corps, Mr. Ebbott remained with
National Park Bank until 1923. Dur
ing his early banking days when he
was in the correspondent bank divi
sion, he gained great favor with bank
ers everywhere with his warm, lik
able personality. On his return from
the war he was appointed assistant
vice president.
In 1923 he joined the Seaboard Na
tional Bank in New York as a vice
president.
He moved to Chase in
1930 as a vice president, after mergers

of the Seaboard and the Equitable
Trust Company into the Chase Na
tional. During the 1930’s he was one
of the bankers who developed the
program of “ term” loans covering a
period of years, a type of bank credit
which previously was seldom used. In
the Chase organization he has had
charge of business in middlewestern
and southwestern areas and has been
one of the senior lending officers. In
September, 1947, lie was elected a se
nior vice president and was named a
director in January, 1949.
Mr. Ebbott has acquired much of
his management abilities and his
“ savvy” for appraising business trends
by serving very actively as a director
of several business corporations, par
ticularly Allied Stores, Nash Kelvinator and Moore-McCormack. From his
direct contacts with business and
businessmen, Mr. Ebbott has devel
oped a keen insight into credit prob
lems and commercial banking.
He was born October 23, 1887, in
Fort Atkinson, Wisconsin. He at-

(Turn to page 34, please)

"Tm P r o u d as a P e a c o c k !’*
“ Our

brand new Transit

if* # " ''--!

Depart

ment is one of the most modern in this part
of the country— and we’re mighty proud of
it. W e ’re proud because it’s new, and we’re
proud because of the speedy and even more
efficient service we can give you in the han
dling of your collection and transit business.”

“As you
we route

all

have learned in the past,

collection

and transit

DIRECT, whenever possible.

items

And that has

meant time and money saved for you. "
“ T o

derive the greatest advantage

from our central location, we send your items
by air or rail mail— D IR EC T— whichever is
faster. That’s overnight delivery for you.”
“ I f you are not, at present, taking
advantage of our DIRECT R O U TIN G and
our speedy, efficient transit facilities, we in
vite your inquiry. W e want to be your ‘best
friend’ in Omaha.”
H. Melvin Moore
Manager, Transit Department

? L . V y h riv iiL

W jM fifL

Manager, Transit Department

“ O f course we still offer com plete R E C O R D A K protection
o f A L L item s draw n on points outside o f O m a h a .”

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

The Omaha National Bank

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

F A R N A M

S E V E N T E E N T H

Northwestern Banker. June, 1949

Can

in any manner against
F ix Capitaitostatediscriminate
Hnon-member
at io?
banks and in favor

F .D .I.C .
(Continued from page 21)

tion. The term noninsured bank means
any bank the deposits of which are
not insured. The factors required are
the financial history and condition of
the bank, the adequacy of its capital
structure, its future earning prospects,
the general character of its manage
ment, the convenience and needs of
the community to be served by the
bank and whether or not its corporate
powers are consistent with the pur
poses of this section.”

Capital Structure
Particular attention is called to the

direction of the factor “adequacy of
its capital structure.” The capital
structure of a bank is composed of all
its capital accounts which includes:
capital, surplus, reserves and undi
vided profits, and does not relate solely
to the amount of capital stock. Cer
tainly, it was not the intent of Con
gress that eligibility for insurance
should be determined on some ratio of
capital stock to deposits, as is indi
cated in the following sub-section of
said section 12B:
“ It is not the purpose of this section

A Correspondent Service
with a UNIQUE BACKGROUND
Many o f our correspondents tell us: “ Your service of
Portfolio Analysis has been o f definite value in help
ing us maintain proper stability and satisfactory in
come from our investment account.”
This service is based upon a unique range of experi
ence, and upon investment principles proved sound
throughout the 67 years since our founder, N . W .
Harris, first pioneered in the distribution o f invest
ment securities.
Purchasing outright and handling only securities
which we are content to own ourselves, the Harris
organization has in these years merchandised highgrade securities in the sum o f over six billion dollars.
The capital so supplied has contributed materially to
the development of every American community o f over
1 0 0 ,0 0 0 population and hundreds o f others . . . with
an almost perfect record o f investment safety.
In selecting your Chicago correspondent, weigh
this investment background, as well as the other
services which this Bank offers in an earnest effort
to be o f genuine help to its correspondents.

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

• Incorporated 1907

115 W . M onroe Street, Chicago 90
M em ber Federal Deposit Insurance Corporation

Northwestern Banker, June, 1949

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

of national or member banks, but the
purpose is to provide all banks with
the same opportunity to obtain and en
joy the benefits of this section. No
bank shall be discriminated against be
cause its capital stock is less than the
amount required for eligibility for ad
mission to the Federal Reserve Sys
tem.”

Corporation Standard
The standard to be followed by the
corporation with particular relation to
termination of insurance on the basis
of unsoundness and lack of safety is
found in sub-section 1 which provides
as follows:
“That the F.D.I.C. board of direc
tors, upon finding that an insured bank
or its directors or trustees have con
tinued unsafe or unsound practices in
conducting the business of the bank
or have knowingly or negligently per
mitted any of its officers or agents to
violate any provision of the law or
regulations to which the insured bank
is subject, shall give to the authority
having supervision of the state bank,
a statement with respect to such prac
tices and violations for the purpose of
securing the correction thereof.”
Procedure is set up in the said sub
section for termination of insurance
upon proper grounds. We do not be
lieve that the reference to “unsafe or
unsound practices” in conducting the
business is directed to the amount of
capital stock of the banking institu
tion. Had it been the intent of Con
gress that a particular ratio of capital
stock to deposits should be maintained,
it was for the Congress to expressly so
provide and fix the ratio.

•y

Attorney General's Opinion
I have an opinion from the
Iowa Atttorney General’s office,
addressed to me as Superintend
ent of Banking which, in part,
says:
“You are advised that it is the
opinion of this office that the
F.D.I.C. is without power to fix a
ratio in any amount of basic capi
tal to deposits as a condition to
being and continuing as an in
sured bank.”

This opinion, perhaps, will not mean
a thing to the F.D.I.C. Nevertheless,
it does give support to the policy our
department has followed and intends
to follow. Personally, I am a firm be
liever in cooperation. It is always the
best and right way to work, but it
seems to me the F.D.I.C. authorities
should not be both judge and jury in
the enforcement of administrative
laws.
It is my opinion the best policy for

here’s what they say
in N ew Jersey and
North Carolina about the

Bumuqhs

Commercial TelleMachin

"Y o u r commercial teller’s machines have
given us faster window operation,
quicker proof o f teller cash, both in and
out, smoother flow o f teller items to the
proof department, and better operating
control over deposits and checks cashed
. . . have proved to be one o f the best
investments we have made in service to
our customers.”
Hudson Trust Company
Union City, New Jersey

"Customers have expressed their ap
proval o f receipt . . . their appreciation
o f improved service. Tellers are able to
handle deposits at greater speed, there
by reducing time required for customers
at window. In addition, we have a much
better audit control on our tellers’ work.
Our year’s experience has proved the
worth o f these machines.”
The Commercial National Bank
Charlotte, North Carolina

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

Banks in 4 6 states, serving nearly five million
are using Burroughs Commercial Teller’s Machines.
chines will speed customer service . . . add efficiency
accounting . . . improve customer relations for your
Call your local Burroughs office today.

depositors,
These ma
to internal
bank, too.

W H E R E V E R T H E R E ’S BUSINESS T H E R E ’S

Burroughs
Northwestern Banker, June, 1949

y
A dvertisem ent

Aortli Rnkoía
"R o il o f H o n o r " Ranks

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 i\orth

Dakota.

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 ivhich you may entrust to them.

Corre
•4

spondence is invited.
TOWN
Arthur....... ....
Casselton.......
Edgeley.........
Golva..............
Grafton..........
Hunter...........
Milnor............
Napoleon.......
New England
Oakes.............
Steele.............
Sterling_____
Streeter.........
Valley City....

First State Bank.................
First State Bank ................
Security National Bank____
First State Bank......... ...........
W alsh County State Bank
Security State Bank__ ____
First National Bank ......
Stock Growers Bank..............
Citizens State Bank..............
First National Bank..............
Bank of Steele______________
State Bank of Burleigh Co.
State Bank of Streeter......
American National Bank....

directors of non-member banks to fol
low in answer to requests made by
the F.D.I.C. to increase basic capital,
is not a definite “no.”
If the directors believe they are not
justified in going to the expense of
calling a special stockholders’ meet
ing for that purpose, so reply, advising
the F.D.I.C. that at the next regular
stockholders’ annual meeting, the re
quest will be directed to the stock
holders’ attention.
After the shareholders have reached
a decision, report it to the F.D.I.C.
The directors can do nothing else but
follow the stockholders’ instructions.
If the stockholders vote “no,’ that is
final so far as the directors are con
cerned. If the vote is “yes,” this de
partment will interpose no objection
to a stock dividend, providing you do
not deplete your surplus account to
an amount we believe to be unsafe
for the continued successful operation
of the bank.—The End.

W H A T O TH ER STA TES
S A Y A B O U T R U LIN G
(Continued from page 21)
capital for all institutions and we find
the F.D.I.C. is more aggressive in pro
moting increased basic capital than
either the Federal Reserve or national
examiners. Although the F.D.I.C. was
organized as an insuring agency, it
does appear that they are demanding
certain standards in capital structure,
Northwestern Banker, June, 1949

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

OFFICER

BANK

CAPITAL

B. A. Heiland............................... $
,W. E. Strehlow...... ....................—
.E. G. Bloedow............................
J . L. Tschida................................
J . E. Bannerman........................
A. H. Gilbertson........ ...........
.A. W. Eastman........... .— ...... —
,.G. Heitmann .... ................— ......H. W. Ness...................................
..Glenn V. D ill....... ......................
E. A. Wentz.......... ..........
.11. E. W ildfang..............................
J. L. Graf........................................
R. M. Hougen...............................

certain fidelity bond coverage and oth
er protections which we presume they
consider important in order to avoid
an occasion where their protection is
needed.
“We believe this ruling from Iowa
reflects the feeling that is growing that
the F.D.I.C. is gradually exercising
more control and making more de
mands on their state member banks.
We believe the Iowa Attorney General
is making a stand for states rights.
However, we believe if the F.D.I.C.
feels that the condition of an institu
tion is being weakened, due to a low
capital ratio, they have the right to
determine whether they wish to keep
the subject bank as a member of their
corporation.”

SURPLUS
PROFITS

25,000
50,000
25,000
25,000
100,000
25,000
25,000
50,000
50,000
50,000
25,000
25,000
25,000
50,000

30,000
50.000
45.000
32.000

112.000
30.000
50.000
59.000

88.000
75.000
92.000
76,655
30.000
203,000

posits, less the average of the direct
and unconditional obligations of the
United States government owned by
the bank, said coverages to be for a
period of six months, provided said
United States government obligations
not to exceed 75 per cent of the aver
age deposits may be so deducted.”

H. G. Shaftner, State Commissioner
of Finance, Jefferson City, Missouri:
“ I know of no similar ruling having
been made in the state of Missouri. I
see no objection to such a ruling pro
vided, of course, it is in line with the
banking laws of the state making such
ruling. In this state it has never been
deemed necessary to refer the matter
to the office of the attorney general.”
\

Verne W. Abeel, State Superintend

ent of Banks, Pierre, South Dakota:
“ In regard to the contents of your
letter, I wish to advise that this ques
tion has not been presented to this
office relative to changing the ratio of
basic capital stock to deposits, but in
1943 our law was amended, reading the
last paragraph which I have indicated.
Therefore, we have not asked the at
torney general for any opinion for the
reason that the law is self-explanatory.
“ ‘No bank shall receive deposits
when its total average deposits, less
its average cash and due from banks,
exceed fifteen times its capital, capital
notes or debentures, and surplus, to be
determined by the average of its de

Announces Promotion
Harvey D. Gibson, president of Man
ufacturers Trust Company, announced
that Philip H. Milner, who is in charge
of the bank’s office at 386 Fourth Ave
nue, New York City, has been pro
moted to assistant vice president.
Mr. Milner came to Manufacturers
Trust Company fifteen years ago and
was appointed assistant secretary in
1946.
Mr. Milner is an alumnus of the
Graduate School of Banking, class of
1947. He is president of the Toppers
Credit Club, as well as a member of
the Manhattan Club and the New York
Credit Men’s Association.

27
A dvertisem ent

M in n e s o t a
" Itoli o f H on or"
It is an honor to be listed among the HONOR RO LL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital
l he hunks listed on this page are some of the outstanding ‘‘Honor Roll ” Banks in M in
nesota. B y careful management and sound hanking they have achieved this enviable
position.
I hese hanks ivill be especially glad to handle any collections, special credit
reports or other business in their communities which you may entrust to them.

Corre

spondence is invited.
TOWN
A da.........................
Altura.................... .
Aurora....................
Austin.....................
Belgrade................
Bellingham......... .
Bird Island.............
Blue Earth.............
Braham.................
Ceylon.....................
Clara City.............
Clarks Grove.........
Clearbrook.............
Conger....................
Cyrus......................
Duluth_____ _____
Duluth..................
Duluth.....................
Duluth.... .................
East Grand Forks
Easton.... ............
Elbow Lake...........
Excelsior.................
Finlayson...............
Fairmont................
Grand Marais........
Grand Meadow......
Hamel....................
Hector.....................
Hope........................
Hutchinson.............
Le Sueur................
Kanaranzi...............
Long Lake..............
Marietta..................
McIntosh.................
Menahga.................
Minneapolis............
Minneapolis............
Minneapolis............
Minneapolis............
Otisco.......................
Pine River..............
Rice..........................
Round Lake............
Shakopee.................
St. Clair...............
So. St. Paul............
Thief River Falls...
Tower..........
Vernon Center........
Wendell....................
Winona............. .......

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

BANK
Ada National Bank.....................................
Altura State Bank........................ ............................
State Bank of Aurora.............. ..................................
Austin State Bank..........................
North American State Bank..................................
State Bank of Bellingham...................
State Bank of Bird Island......
Blue Earth State Bank..............................................
f i r s t National Bank.. ...............
State Bank of Ceylon................................................
Citizens State Bank...................................................
State Bank of Clarks Grove..................................
.F irst State Bank
.............. ...............................
State Bank of Conger..............................................
State Bank of Cyrus...................................................
Central State Bank......
City National Bank.........................................
First and American National Bank of Duluth
Western National Bank........ ...................................
Minnesota National Bank.......................................
State Bank of Easton................................................
First National Bank..... ............... ............................
Minnetonka State Bank.............. ...........................
First State Bank.............................. ..........................
Martin County National Bank.............................
Grand Marais State Bank.......................................
First State Bank...........................................................
Farmers State Bank......... .......................................
Security State Bank ........ ................................
Farmers State Bank...................................................
Citizens Bank ..................... ...............
State Bank of Le Sueur......................
Farmers State Bank....................................................
State Bank of Long Lake.......................................
State Bank of M arietta.............................................
First National Bank....................................................
First National Bank.......................
First National Bank.........
Marquette National Bank.....
Midland National Bank...............
Northwestern National Bank.................................
Otisco State Bank..................... ..................................
Pine River State Bank
First State Bank...................................... ........ .........
Farmers State Bank....................................................
First National Bank........................................... ........
St. Clair State Bank.........................
Stock Yards National Bank ...............................
Northern State Bank............................
State Bank of Tower.................................................
State Bank o f Vernon Center............................
State Bank of Wendell
Winona National & Savings Bank........................

OFFICER

CAPITAL

45.000
...A. A. Habedank.................
..Cyril Kramer ____________ ..........$ 20.000
25,000
--J. A. Aspie.... ...................... ..........
125,000
-.E. L. Lindsley........ ............. .....
A. J. Borgerding_________ .........
50,000
10,000
--H. N. Dyste...... ...................
30.000
..Edward Anderson _______
50,000
..K. 0. Sattre......................... .........
50,000
. 0. A. Olson....................... . .........
25,000
..E. F. Vollrath.................. .
25,000
..John B. Stager................ . .........
25,000
..A. J. Lageson............ ...................
25,000
..A. Henderson ...... ............... .........
25,000
M. L. Rye............. ................ .........
20,000
. 0, E. Bjorgaard_________ .......
25,000
..Lester Johnson ........... ......
000,000
.11. C. Matzke . ............... . .........
2,000.000
,.W. A. Putman..................... ..... .
100.000
H. J. Olson...........................
100,000
..Clara S. Bakke...................
25.000
_.T. W. Loonan....................... .........
50.000
_H. B. Johnson..................... .........
50,000
.0. W. Lundsten__________ .........
25,000
II. E. Shafer....................... .........
95,000
.C. F. Holden......... ..............
25,000
..R. I. Anderson................... .........
25,000
..G. N. Reppe......................... .........
25,000
,.C. 0. Dorweiler........... ........ .........
25.000
E. H. Hagquist................... .........
25,000
..A. M. Ellingson.......... ......... .........
150,000
.11. R. Jensen.......................
25,000
..H. J. Grant......................... .........
10.000
.Eddie Hansen ......................
25.000
..K. M. Bollum....................... .........
10,000
. F. M. Anderson.................
50,000
.('. M. Berg............ ............... .........
50.000
J. R. Pellikka..................... .........
6,000,000
M. 0. Grangaard............. .
500.000
Russell L. Stotesbery......... .........
1,000,000
_W. E. Brockman..................
.Don E. Crouley............. ...... ......... 5,000,000
10,000
C. B. Arvesen......................
20,000
.Jack B. Seibert.............................
20.000
T. X. Terhaar...................... ........
25.000
A. W. Whipkey.................... ........
50,000
E. J. Huber.......................... .........
G. H. llubmer .................. ........
25,000
.A. T. Larson.............. .......... ........
250,000
X. E. Lindbergh........... ....... ........
50,000
John Dragavon ......... ......... ........
30.000
C. M. Banks..........................
10,000
-H. J. Malm............................
10.000
-S. J. Kryzsko........................ ....... . 200,000

SURPLUS
PROFITS
94,300
30,000
58,000
239,000
89,000
13,000
185,000
208,336
73,000
66,000
56,000
50,000
34,000
38,000
34,000
64,000
746,000
3,317,860
132,354
134,000
30,000
77,000
95,000
32,000
131,160
45,000
60,000
26,282
106,000
35,000
190,000
125,000
40,000
36,000
21,000
84,000
63,000
17,996,000
804,000
2,279,000
12,463,000
10,000
31,000
21,000
92,000
178,000
108,000
786,000
138,000
42,000
38,000
12,000
753,000
$

Northwestern Banker, June, 1949

1 9 4 9 l*tiblif ¡tein tio n s
HE School of Financial Public Re
lations, conducted by the Financial
Public Relations Association at North
western University’s Chicago Campus,
will hold its 1949 term August 1st to
13th, according to Robert W. Sparks,
chairman of the school’s board of man
agers and first vice president, Bowery
Savings Bank, New York, New York.

This will be the first full session of
the two-year school, which was estab
lished in 1948 to provide a well-rounded
practical background for people con
cerned with public relations, advertis
ing and new business development in

financial institutions. The freshman
class will again be restricted to 50
students.
The schedules of the two classes
each consist of 53 hours of classes, plus
five evening seminar meetings. Be
sides the two resident terms, the
course includes six problems and a
practical public relations project to
be completed between the first and
second years.
Other members of the board of man
agers are: John L. Chapman, trust
officer, City National Bank & Trust
Company, Chicago, Illinois; Swayne

P. Goodenough, vice president, Lincoln
Rochester Trust Company, Rochester,
New York, and Robert Lindquist, vice
president, La Salle National Bank, Chi
cago, Illinois.

Elected Vice P resid ent
At a recent meeting of the board of
directors of Mississippi Valley Trust
Company, St. Louis, O. Wayne Fosher
was elected vice president. Mr. Fosher

. g e a r e d to
your need
for sp e e d

Y
O. W A Y N E F O S H E R
V ice P resident
M ississip p i V a lle y Trust Co.

make swift service possible.

heads the bank’s consumer credit divi
sion, and had been an assistant vice
president since 1945. He began his
banking career at Mississippi Valley
in 1920, beginning as a bookkeeper. He
subsequently worked in various other
departments and in 1940 was ap
pointed manager of the installment
loan department. Since that time he
has been associated with this phase of
the bank’s service.
Mr. Fosher is a past president of
the Bankers Installment Credit Asso
ciation of Greater St. Louis.

We’d like to have you visit us to see this service in action.

Dividend

Meanwhile, we welcome your inquiry with the view

A regular dividend on the common
stock of the Bank of America has been
declared by the board of directors of
the bank for the current semi-annual
period, payable June 30th to sharehold
ers of record at the close of business
May 31, 1949.
The dividend of $1.25 per share for
the six months, at the regular annual
rate of $2.50 per share, will be paid on
the entire 10,238,052 common shares
now outstanding, including the 1,706,342 shares which were distributed
April 15th as the 20 per cent stock
dividend authorized by the sharehold
ers on March 7th last.

Your Bank wants speed when it presents a check or note
for collection. The kind of speed that means
prompt presentation and earliest availability of funds.
At American National we’re prepared to provide that
kind of action. Our staff is experienced, dependable,
skilled at operating the high speed machines that

to securing you the most advantageous mail and express
Scheduling — both by rail and air.

A M ER IC A N N A TIO N A L B A N K
AND TRUST C O M P A N Y O F C H IC A G O
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

LASALLE

Northwestern Banker, June, 1949

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

co llectio n
se rv ic e
• •

AT W A S H I N G T O N

i..

OUR WAREHOUSE RECEIPTS PROVIDE

SOUND S E C U R IT Y
For

A ll I n v e n t o r y

Loans

Your Bank's loans against customer inventories will be on
a sound basis, when secured by our Warehouse Receipts.
Your Bank can often increase loan accommodation to a
customer in excess of open-line credit limits with safety.
Our nearest office will gladly give you full information
regarding our proven method of converting inventories
into sound banking collateral. Inquire without obligation!

When Secured by Our

WAREHOUSE RECEIPTS
Inventories Remain Stored On Customers Premises
10&’U ß& Sf& inq cLjou a t ih& Qiyfwsjnthm

oß ihst
MINNESOTA BANKERS ASSOCIATION
HOTEL ST. PAUL in ST. PAUL, JUNE 8-9
R. C. Schall, M anager, Field W arehouse Division
J. P. Schwab, District M anager, Minneapolis

St. Paul Terminal Warehouse Co.
DES MOINES OFFICE
511 Iowa-Des Moines
National Bank Bldg.
T. C. CANNON
District Manager

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Federal Reserve Bank of St. Louis

OMAHA o f f i c e
1105 First National
Bank Building
T , ,
Telephone
Atlantic 9611

425 East 8th Street, St. Paul, Minnesota
OFFICES ALSO LOCATED IN

MINNEAPOLIS

MILWAUKEE

CHICAGO

DETROIT

Northwestern Banker, June, 7949

A r e T a x es So
T h ey
Safi'oeate Capital and J o b s?
(Continued from page 17)

CANADA
offers y o u r clients

OPPORTUNITIES
U N LIM IT E D

...

. . . opportunities to every United States
banker who wishes to further the interests
o f his clients in this vast and rapidly ex
panding market.

Since 1817 the Bank of Montreal
has helped Canada grow . . . has
grown with it. And as the first Cana
dian bank with a United States office,
it has a long and successful record of
assisting American bankers and busi
nessmen in transacting Canadian
business.
W e invite you— and your clients—
to use the facilities of our offices in
New York, Chicago, or San Fran
cisco, or our Foreign Department in
Montreal.
* * *
For up-to-date information on establishing a
plant in Canada, or on Canadian exporting or
importing, ask the BofM .
As a starter, we’ll send you
our 100-page, fact-packed
booklet “ Canada Today.”
Write for booklet C-50toany
of our U. S. offices, or to our
Foreign Department in
Montreal.

B a n k

o f

M o n t r e a l
Canada’s First Hank
InCanada since i 8 i y . . . ln U .S . since 1859

u. s.
NEW Y O R K ..........................64 Wall St.
CHICAGO................ 27 S. La Salle St.
SAN FRANCISCO - 333 California St.
HEAD OFFICE
MONTREAL

RESO U RCES

LONDON
47 Threadneedle S t., E. C. 2
9 Waterloo Place, S. W. 1

O VER

$ 1 ,9 0 0 ,0 0 0 ,0 0 0

mm m m m m m m m m m m m m m m m m m m m m m m m i

Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

The second notable fact is that dur
ing the same four years people have
had available record amounts of un
used cash on deposit in banks and
have been willing to buy increasing
amounts of life insurance and corpo
rate bonds. Significantly, during these
years there has been heavy investment
in tax exempt municipal securities.
Certainly there are many reasons to
explain why, with money available
and business at record levels, people
have shown a decreasing willingness
to furnish equity capital. I do not
think that the least of these reasons
was taxation.
If someone had designed the tax
structure to stifle the process of con
verting savings into permanent capi
tal, he could not have done a better
job than has been done. The major
source of equity capital has been, and
probably must be, the savings of peo
ple in the so-called “ upper income
brackets,” that is with incomes above
$5,000 a year.
The income tax rates have their
heaviest personal impact on this mi
nority of the population and this mi
nority of the national income. They
have made an investment in common
stock unattractive to the people on
whom we all rely for such funds. If
a venture is highly successful and the
company pays out 40 per cent in divi
dends, as the average company did in
1948, the “take home” income after

taxes will be too low to warrant the
risks involved.
Suppose each share in the venture
cost $100 and the company, after pay
ing the corporate income tax, still
showed earnings of $14.50 a share and
paid out 40 per cent, or $5.80, in divi
dends. The man who risked the $100
seems to receive a yield of 5.8 per
cent on his investment, but that is
before he pays his taxes. If his in
come, before this dividend was $10,000,
his yield drops to less than 4 per cent.
If his income was $50,000, his yield
falls to less than 2 per cent. Why
should he take the risk of contributing
permanently to the formation of capi
tal when he can get the same or a
better income from a temporary con
tribution?
Today some of us are considered ut
terly unrealistic when we plead that
for the sake of the system, if not for
the sake of the individual, everybody
should be allowed to keep at least 50
cents out of every dollar he earns.
Money is not capital and it must
take a lot of risks in the process of
becoming capital. In the long run, it
will only be committed permanently
to those risks if a real inducement ex
ists. Owners of money are like mules
in this respect and no amount of beat
ing them on the behind can ever equal
the effect of a carrot out front. The
present tax system doesn’t seem to

recognize that a large carrot is neces
sary.
The worst part about these twin
problems of capital ancl taxes is that
they are so clouded by ignorance that
many of the legislators who do under
stand them are afraid for political rea
sons to even try to bring them into
balance.
I don’t need to spend any time prov
ing that capital and jobs have the
same relationship as parents and chil
dren. We have all seen the figures
about what a lot of capital stands be
hind each job in every industry. We
know that even an individual who
wants to employ himself must save
and train and plan, that is create capi
tal, before he can give himself the
job. We can take it for granted that
“no capital—no job” is a simple, fac
tual statement.
What is not so generally known is
that the principal beneficiaries of capi
tal are those who hold the jobs it
makes available. The American Eco
nomic Foundation has figured out that
the total national income goes 90 per
cent to employes and individuals who
are self-employed, that is whose jobs
are provided by their own or someone
else’s capital. Only 10 per cent goes
to those who own capital, which oth
ers pay to use, and of these capital
payments 70 per cent goes to people

C h ica yo H anker Mtt H o n o red

A. M. Strong, vice president, American National Bank and Trust Company of
Chicago, has been awarded the French government’s Medal of Commercial Merit
Médaille du Mérite Commercial) for his “ contribution to French-American trade
relations.”
Above, the Honorable Raymond Dreux, commercial counselor to the French Em
bassy at Washington, D. C., bestows the medal upon Mr. Strong, with J. J. Viala,
French consul general of Chicago (left) and Jacques Rimey, French commercial
attache in Chicago (right) as witnesses.
Mr. Dreux, in presenting the medal to Mr. Strong, cited his accomplishments
and contributions to the development of international trade in general and par
ticularly between France and the Midwestern area.

"You Did a Real Job On

This Deal .

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Federal Reserve Bank of St. Louis

G. W. Artherholt

RESULTS!
QUICKLY
SA TISFA CTO R ILY
CO N FIDEN TIALLY
THE LATE MR. ARTHERHOLT gave
us written authority to provide a pur
chaser for his bank stock on October
1, 1948.
WE SHOWED THE BANK on October
6th, to Winfield S. Mayne. He was the
first and only prospect to whom the
opportunity was presented.
THE SALE W A S MADE to Mr. Mayne
on October 18th. Settlement and trans
fer of the stock was made on October
23rd.
IN JUST 22 DAYS after giving us
written authority to provide a pur
chaser, the Seller had his money. Read
his letter at the left.

Th e a b o v e p h o to o f
th e la te M r . A r th e r h o lt and h is l e t t e r
to th e l e f t a re r e p r o d u c e d
here
th r o u g h th e c o u r
t e s y o f M rs. A rth e r h o lt.

NO, WE DO NOT CLAIM to sell all
banks listed with us, to the first pros
pect introduced, but we believe we can
supply a satisfactory purchaser for any
clean, profitable bank priced at the
going market.
CONSULT US IN CONFIDENCE, with
out obligation, but with complete as
surance that no one will be told of
your plans until you have given us
written authority to do so.

Bankers Service Co.
HENRY H. BYERS, President

receiving less than $5,000 a year. An
other way of pointing up who benefits
from the system is to cite the fact that
over 80 per cent of the entire national
income from all sources goes to people
receiving less than $5,000 a year.
When I add that all these figures
are h.ased on income before taxes, we
get'Some idèa of how different capital
ism is in fact from the capitalism de
scribed by our communist enemies and
by domestic demagogues.
No politician can materially help
this situation until the job holders
who are the voting majority and the
chief beneficiaries of the system real
ize the stake they have in the constant
building of new capital.
It is up to all of us to study and un-

dbrstand the role which capital plays
in our country^ what makes it grow
and what stunts its growth. If this
study and knowledge brings you to
the same conclusions I have reached,
then it is equally your duty to find
and convince people who disagree
with you, not those who already agree.
We must make them realize:
First: That capital is not mere cash,
but a combination of tools and ma
chinery and factories which a lot of
money must be risked to buy and
which can only be assembled with the
expenditure of immense amounts of
time and training and wise and lucky
decisions which more money can't
buy;
Second: That the money which is

an essential element in growing this
thing called “capital” must come in
large part from those whose incomes
permit them to take the risks involved
and they cannot be expected to put it
up unless they can hope for real “takehome” profits if they ride out the risks
and win:
Third: That the overwhelmingly
largest portion of the wealth produced
by our capitalistic system goes to the
employes of the system and not to the
people who own the capital; and
Finally: That any tax structure
based on the political nonsense called
“ Soaking the Rich” takes away the
incentive to risk money in building
capital and its end result is to “ Sink
the Job Holder.”
Capital which creates jobs. Capital
and jobs without which there couldn’t
be taxes. And taxes which can and do
suffocate both capital and jobs.—The
End.

Fa ir Exhibit
A new feature of this year’s Chi
cago Railroad Fair will be “Gold
Gulch,” a replica of a typical mining
town of the old west. Reproduced
here is a sketch of the Bank of Gold
Gulch, under construction by the Con
tinental Illinois National Bank and
Trust Company of Chicago, as a tribute

Statement of Condition, April 11, 1949
R E S O U R C E S
Cash and due from b a n k s ...............................................$ 52,567,948.23
U. S. Government S e c u r it ie s ...............................................

52,007,860.22

(Including those pledged $12,400,722.74)
Other Bonds and S e c u r i t i e s ...............................................

8,314,923.86

Federal Reserve Bank S t o c k ...............................................

300,000.00

Loans and D is c o u n t s ..............................................................

89,377,001.78

Customers' Liability on Acceptances and
Letters of C r e d i t ..............................................................

163,230.64

Real

E s t a t e ..............................................................................

221,379.05

Accrued Earnings Receivable ( N e t ) ...............................

367,319.81

Overdrafts

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

62,687.77

Other R e s o u r c e s ......................................................................

186,619.01
$203,568,970.37

LI ABI LI TI ES
Capital

6,000,000.00

Surplus and Undivided P r o f i t s .......................................
Dividend declared, payable May 2, 1949

8,990,007.77
120,000.00

A sketch of the Bank of Gold
Gulch, which will house The Conti
nental Illinois National Bank ex
hibit at the coming Railroad Fair in
Chicago.

Accrued Interest, Expenses and Taxes Payable (Net)
and Other R e s e r v e s .......................................................

1,131,359.74

Acceptances and Letters of C r e d i t ...............................

163,230.64

Other L i a b i l i t i e s ......................................................................

351,083.41

Deposits:
U. S. Government, and other
Public F u n d s ............................... $
Other D e p o s i t s ...............................

Northweste rn Banker, June, 1949

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

9,353,691.82
177,459,596.99

186,813,288.81
$203,568,970.37

to American bankers and their contri
bution to the growth of industry and
the nation. The building will be archi
tecturally true to early western con
struction as to exterior and interior,
with plenty of the old west atmos
phere.
The Bank of Gold Gulch will contain
an open counter holding old scales
once used to weigh raw gold, and the
walls will be decorated with reward
signs, photographs and stagecoach
schedules.
The Fair will open June 25th and
will continue for 100 days, till October
2nd, on a larger scale than in 1948.

S iiihII Tinrn ttan li W ith Hit/ Mihnis
(Continued from page 16)
of $35 at 3 per cent for the purchase
of a pig. This and other transactions
of the new department indicate the
practical lessons in bank functions
that are available to “Teen Town” de
positors.
Another of the innovations insti
tuted at the Bank of Benton by Mr.
Havens is the automobile drive-in
teller’s window, the first of its kind
in the state of Illinois, which was in
stalled along with a night depository
in April of 1940. The bank also offers
special gift checks with matching
greeting cards for wedding, birthday,
anniversary and holiday gifts, and has
established a pine panelled customers’
lounge, the walls of which are covered
with historical documents bearing the
signatures of such famous Americans
as James Madison, James Buchanan,
John Hancock, Grover Cleveland and
Theodore Roosevelt. There is a letter
signed by Woodrow Wilson, a check
signed by Aaron Burr, and a letter of
approval bearing the signatures of
both Abraham Lincoln and his Secre
tary of War, Stanton.

replace the earlier models that were
on hand.

Mechanical Aids
Today our $5,000,000 bank provides
mechanical help for both the commer
cial and savings tellers and has com
pletely mechanized the proof, transit
and general bookkeeping operations.
The Burroughs commercial tellers’
machines were the first machines of
this type installed in any bank in
southern Illinois. At the time of their
installation in 1945 help was still
scarce because of the war and custom

ers seemed to be in more of a hurry
than ever. This situation, coupled
with the increased volume of the bank,
could have become a serious customer
relations problem but for the installa
tion of the commercial tellers’ ma
chines. Our experience showed us
that with the new machines our tell
ers could handle three or four custom
ers in the time it had taken to serve
only two previously.
In the advent of the commercial
tellers’ machines, Mr. Havens saw an
other opportunity to capitalize on pub
licizing the additional service the bank
was offering its customers. Sixty days
prior to the installation of the ma
chines, newspaper advertising and

Wampum to Mines
Further on in the lounge such ex
amples of the stages of evolution of
money as wampum, Indian beads, and
foreign and occupation currency, vie
with graphic illustrations of coal min
ing operations carried on by the near
by Orient mines for the interest and
attention of our customers.
The Bank of Benton today employs
nine persons, in addition to myself.
Mr. Havens is represented by his son,
who handles consumer credit and
there are four tellers, a proof machine
operator, two bookkeeping machine
operators and a clerk who sorts
checks, proves deposits, attends to
safety deposits and handles cash letter
and transit work and microfilming.
Microfilming equipment was one of
the first mechanized aids to banking
installed at the bank shortly after we
moved to the present site in 1939,
having been preceded only by a Bur
roughs adding machine and posting
machine. Since that time we have
added three Brandt automatic cash
iers, an intercommunication system,
an IBM electric typewriter and 846
lock safety deposit boxes especially
built and adapted to the space in the
bank. Additional Burroughs equip
ment acquired by the bank since 1939
has included five adding machines,
four commercial tellers’ machines, a
proof machine, savings passbook ma
chine, multiple purpose descriptive
accounting machine, and two new
Burroughs bookkeeping machines to

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Federal Reserve Bank of St. Louis

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

Nort hwest ern Banker, June, 1949

publicity was prepared to inform the
public of this new bank service and
another announcement was made
shortly before the machines were ac
tually put in operation. A lobby dis
play was utilized to explain the func
tion of the machines and the new
service they would provide, which
created a great deal of interest and
comment among the customers of the
bank and other townspeople.
This idea of efficiency has also been
carried into our storage problem. Our
specially designed microfilm storage
file holds about 66 rolls per drawer, or
approximately five months’ accumula
tion of the records created by photo
graphing everything that goes through
the bank, transit items on both sides
and the others on one side only. This
makes for efficient utilization of valu
able space and a quick record of any
protested item.

Coin Storage Rack
We also designed and had built for
us a special vault coin storage rack
that has been enthusiastically ap
proved by auditors. This rack holds
designated amounts of boxed coin rolls
of each denomination from pennies to
silver dollars and there is special
space provided for loose coin rolls so
that the total amount of cash on hand
may be quickly and accurately deter
mined.
When we survey the improvement
that has been made in our bank rou
tine through mechanization and spe
cial devices in the twelve years of our
existence we can find little argument
for failure to mechanize. The cost of
our equipment, in the face of the sav
ings in time and its value in promot
ing good public and employe relations,
has been negligible. Amortized over
the life of the machines this cost

THE FIRST
N A T IO N A L

BA N K

IH ST. LOUIS

amounts to far less than would the
cost of trying to achieve comparable
results through the employment of ad
ditional help using manual methods,
even if it was possible to achieve the
same satisfactory results through
merely employing additional help.
The Bank of Benton has achieved
the reputation of being one of the
most progressive banks in the state
of Illinois through its program of pub
lic relations and providing fast, effi
cient service to its customers. It is a
reputation we profitably enjoy and the
Bank of Benton hopes to keep leading
the way to efficient bank operation
through employment of the most mod
ern and advanced methods that can be
applied to our business.—The End.

Coin Collection
With its 75,000 specimens of money
spanning almost 5,000 years, from the
ring money of ancient Egypt to 1949
notes of the new Republic of Burma,
the Chase National Bank Collection of
Moneys of the World last month
marked its twentieth anniversary as a
public exhibit.
Among the largest and most compre
hensive displays of its kind, the col
lection today represents nearly every
political and geographic subdivision of
the world, and nearly every medium
of exchange employed by mankind in
history. It has attracted some 220,000
visitors since it was' opened to the
public May 13, 1929.

B A N K ER S YO U K N O W

Whatever your problems, you’ll
find the experienced personnel of
the First National Bank in St. Louis
ready and able to fulfill your
correspondent banking needs
quickly and efficiently. We cordially
invite you to call on us for com plete
correspondent banking service.
M ember F e d e r a l D e p o s it In s u ra n c e C o r p o r a t io n

Nort hwest ern Banker, June, 1949

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Federal Reserve Bank of St. Louis

(Continued from page 22)
tended schools there and later was
graduated from O b e r lin College,
Oberlin, Ohio, in 1910 with a Bache
lor of Arts degree. He is now a trus
tee of the college. On January 1,
1923, he married Elizabeth Camp and
they have two sons, John P., 23, and
Peter Gamp, 20.
Mr. Ebbott is a fair golfer and en
joys a good game of bridge. One of
bis secret ambitions is to be turned
loose as general manager of a de
partment store or a chain of retail
shops. Maybe that’s because he gets
so much fun out of dealing directly
with people in a constant round of
activity.
This appreciation of the worth of
each individual is evidenced in the
last paragraph of Mr. Ebbott’s letter
to all employes the day following his
appointment as president when he
said, “ Everyone likes to play on a
winning team, and like all good team
players we must remember that the
effort of every individual in the group
is important.”

INVESTMENTS

N ews /##!•
Y our In vestm en t P ortfolio
There Is a Good C ho ice of D esirab le O b lig atio n s
Either C urrently A v a ila b le or Lik ely to Be So In the N ear Future
By RAYMOND TRIGGER
Investment Analyst
New York City
ANAGED money advocates are
on trial again. A business re
cession, rather mild thus far,
is under way and loans by com
mercial bankers are lower than they
were a year ago. Accordingly, noble
efforts are being made to reduce the
cost of borrowing and to create fur
ther incentives to business men to
expand, take courage, increase inven
tories and the like.
It has never been clearly demon
strated that the cost of borrowing is,
of itself, much of a factor in checking,
or decelerating, much less reversing
a downturn in general economic ac
tivity. Commercial bankers know, or
sense this clearly. If their customers
do not want to borrow, a cut in the
lending rate from 4 per cent to 3%
per cent won’t change their minds.
When loans are in a downswing, there
is little that can be done to change the
situation. Happily, when loans are
mounting rapidly, bankers can not
only raise rates, they can also stop
lending. Lacking new fuel, the boom
will peter out in time.

Loan Demand
Today’s situation is that demand for
loans is weak, a not unnatural aftermath of the intense postwar activity.
There is little or nothing to be gained
by cutting rates. The alternative is to
expand the investment portfolio.
Bankers are evidently adopting this
method of keeping earnings at re
spectable levels.
In addition to the drop in loans, re
serve requirements have been lowered
this year, thereby releasing billions of
dollars for lending (unwanted) or in
vestment. The latter is quite proper
and not too difficult. To be sure, bank
“eligibles” are scarce and their prices
are certainly the most vulnerable of
all governments. Consequently, they
are the least attractive at the moment.
There are other avenues worthy of
exploration by the investment officers

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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.

of commercial banks. They may con
sider top-grade corporates. Here,
though, the rub is that prices are high
to begin with and the spread between
governments and top corporates is too
narrow for complete satisfaction. If
the early 1949 recession deepens, pres
sure will be noticeable on even topgrade corporates.
The fact is that while there is far
too much money circulating in the
U. S., it is circulating sluggishly.
Therefore, the “effective” money sup
ply, that is, actual supplies adjusted
to “turnover,” is not large and may
shrink. Debts will be paid by private
individuals and deposit turnover will
perhaps decline further before the
year is out. What then?
It is almost certain that the present
money managers in Washington will
take positive and effective steps to
counter this prospective slowdown in
deposit turnover. Money rates will
recede further under such conditions
and prices of government bonds
doubtless will advance. There will
be related, though less important
strength, in other divisions of the
bond market. In any case, though, it
is vital to bear in mind that present
levels are generally quite high enough.
Strength there may be, but a wild
break-through is hard to envisage.

Situation Promising
The situation, while it calls for
painstaking thought, is generally

promising. A great many millions of
Americans will be gainfully employed
this year; a large volume of purchases
will be concluded at all levels; profits
will be adequate to fair; credit losses
will be modest. It may be expected
that a greater than usual proportion
of the year’s business will be done on
a “ spot” basis, mainly for near-by or
immediate delivery at all levels and
that relatively little credit will be in
volved.
Ultimate c o n s u m e r s , retailers,
wholesalers and jobbers will be disin
clined to take on liabilities and will
buy on a hand-to-mouth basis, but the
total volume will be impressive. De
spite the recession characteristics thus
far shown by the year 1949, it may
yet go down as a year of “concealed,”
rather than flamboyant, prosperity. If,
then, the background is one of high
prices for government bonds, likely to
be maintained though not bettered,
with almost everyone employed and
doing their day-to-day business on a
normal basis, though backing away
from forward commitments, is not this
an ideal climate in which the fiscal
authorities can take some steps, long
over-due, to restoring a semblance of
balance to the national debt?

Orderly Market
By the time these lines are in print
the Treasury may have announced the
terms on which it will handle its mid1949 maturities. Any or all of a va
riety of devices are possible. Present
ly ineligible governments may have
their eligible date moved up, bars
against investment in F and G bonds
may be lowered, or a new intermedi
ate—say a five-year 1% per cent obli
gation—bond may be created. Other
possibilities include the creation of
more nonmarketable bonds to be sold
institutional investors on terms so at
tractive that they will release bank
eligibles or a higher short-term rate so
as to divert the attention of commer
cial banks from longer governments.
Nort hwest ern Banker, June, 1949

Investments

Any one or any combination of the
foregoing would serve to lessen the
attractiveness of existing eligibles and
would implement the avowed inten
tion of the Treasury to maintain an
orderly market for governments. The
possibility that one or more of these
offerings are not far away has, pre
sumably, persuaded a good many com
mercial bankers to “wait and see.”
Such an attitude doesn’t help earn
ings, however, and tends to distract
attention from actual, current appeal
of certain other types of investments.
Banks were reported heavy buyers
of a recent issue of more than $140,000,000 of Triborough
Authority

bonds. The 15-year maturity was of
fered to yield 2% per cent and would
seem to represent an attractive, taxexempt investment. Not long after,
though, North Dakota came to market
with its high-grade bonds and banks
were evidently reluctant to purchase
although the one-to-10 year maturity
scale seemed tailor-made to fit com
mercial bank requirements.
Later on this year, it is expected
more states will offer their bonds to
raise the money to pay soldier
bonuses. Certain of the prospective
emissions will be excellent credits.
The prices at which they will be sold
cannot be too far out of line because

of the expected large supply. The taxexempt market is perhaps around the
best levels that should be expected,
all things considered, but it does not
look vulnerable. Since, though, the
supply of exempts o v e r near-by
months will be quite large, the mu
nicipal market can hardly be expected
to rise much.
In fact, it seems as though the next
few months will offer ideal conditions
for the purchase of top-credit taxexempt obligations. The m a r k e t
should hold steady, but the size of
prospective emissions will frequently
be so large as to dictate an offering
price somewhat below prevailing gen
eral market prices for comparable, but
seasoned and distributed issues.

Rail Equipments

j / iy iip t iiiiy i
Chicago— Twin Cities
Spokane — Seattle —Tacoma
TW IN C/T/ES

2 a day each way
Chicago— Milwaukee
St. Paul— Minneapolis

Chicago—Des Moines—Omaha
Sioux City— Sioux Falls
i

C H IP P E W A

T rJ m

tr m

Chicago—-Milwaukee
Green Bay— Upper Michigan
-J a

/VORTH WOODS /

Serving Wisconsin River Valley
Northwestern Banker, June, 1949

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

Howto relax...and liurry!
RIDE
THE

Z//TMY////TIJ

Going where you go is a great fleet of new
Milwaukee Road H i a w a t h a s that are fa
mous for the smoothest and quietest of high
speed rides.
H ia w a t h a
equipment, the newest and
finest on rails, includes such innovations
as Skytop Lounge cars, radio-equipped
Tip Top Tap cars, private-room sleepers
and Luxurest coaches of new design. H.
Sengstacken, Passenger Traffic Manager,
708 Union Station, Chicago 6, Illinois.

1 L W A U K EE
THE
u a t h a s are rolling
It O A II Ilia9000
miles a day! &

Somewhat similar conditions pre
vail in another segment of the invest
ment market. Banks have long been
partial to railroad equipment obliga
tions, partly because of their inherent
security, but also because of serial
maturities. The flow of new rail
equipments to market has always
been uneven. There is first the ques
tion of materials. If the equipment
cannot be manufactured, the railroads
must make do with what they have,
however uneconomic. When supplies
are available, most roads want new
rolling stock, but they have still to
take into account their current and
prospective loadings. The roads tend
to over-buy when times are good and
to starve themselves when traffic de
clines. This makes for sudden ups
and downs in equipment ordering.
At present, the roads are not order
ing new equipment on any consider
able scale. For one thing, their pres
ent needs are fairly well satisfied, or
will be before the end of the year.
The roads, too, may be uncertain
about the outlook for traffic. Their
previous orders, though, are being
steadily completed and rail equipment
obligations with which to pay for the
new rolling stock have been a feature
of the 1949 investment security mar
ket.
There will be more this year, but
even now the houses specializing in
this form of underwriting are reported
to be carrying a heavy inventory of
recent issues. This suggests that the
shrewd buyer can profitably shop
around. He may not get any price
concession, but he should at least be
able to select the type of borrower he
thinks best suited to his needs and
should be able to select the maturities
that fit best into his portfolio.

Housing Bonds
Finally, there is another front on
which the buyer of high-grade invest
ments has an advantage. A housing
bill likely will emerge from the pres-

Investments
ent Congress in the reasonably near
future. It has been variously esti
mated that the issuance of bonds by
local authorities will run from six to
eight billion dollars. The volume is
staggering and the quality of these
prospective obligations will be excel
lent. The proposed changes would
vastly strengthen the bonds. Or, as
expressed by o n e
commentator,
“ These c h a n g e s would definitely
broaden the market for local housing
authority bonds, and probably would
make it possible for substantially all
such bonds to be marketed publicly.
Surely, with the proposed uncondi
tional guarantee of debt service re
quirements by an agency of the Fed
eral government, the bonds would be
of prime investment quality, and their
investment appeal would be governed
mainly by considerations dealing with
price. They would continue to be tax
exempt.”
If it is suggested that these new
bonds won’t be coming to market in
any volume for some time, it may be
pointed out that there is no obstacle
to an early refunding of some $310.000,000 of outstanding temporary
notes of housing authorities and that
there are some $325,000,000 of bonds
of these authorities, of which perhaps
half could be refunded advantageous
ly. Altogether, although the grand
potential of six to eight billions may
be spread out over several years, there
could be more than enough coming
promptly to market to interest com
mercial banks.
Taking a broad view, then, the in
vestment market has only one or two
dubious aspects and many interesting
possibilities. It may be that bank
eligibles are artificially high due to
scarcity value and it is possible that
the prices of the best corporates are
too close to those of governments. On
the other hand, the prospects of a
sharp reversal in demand for com
mercial loans is fairly remote, but the
investment portfolio manager has
good choice of desirable obligations
either currently available or likely to
be so over near months.—The End.

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

In v e stm v n t N e w s
A

p p o in t m e n t
of A n d re w m .
Baird, A. G. Becker & Company,

Incorporated, Chicago, as chairman of
the U. S. Savings Bond Committee of
the Central States Group of the In
vestment Bankers Association of
America has been announced by H al
H. D ew a r of Dewar, Robertson & Pan
coast, San Antonio, president of the
Association.
The committee is part of the na
tionwide organization set up by the
I.B.A. to facilitate industry coopera
tion with the Treasury department in
the current Savings Bond Drive with
a quota of $1,040,000,000 Series “E”
Bonds.
Serving on the committee with Mr.
Baird are the following securities
dealers: Wilbur G. Bingham, Bing
ham, Sheldon & Company, Milwaukee;
Theodore C. Henderson, T. C. Hen
derson & Company, Des Moines; J.
Cliff Rah el, Wachob-Bender Corpora
tion, Omaha; Frank L. Reissner, In
dianapolis Bond and Share Corpora
tion, Indianapolis, and Robert M.
Work, Salomon Bros. & Hutzler, Chi
cago.
The program sponsored by the in
vestment bankers is under the na
tional chairmanship of Ewing T.
Boles, president, The Ohio Company,
Columbus.

IVe offer
fo r sale
the notes of
these
representative
finance
companies
Aid Investment & Discount, Inc.
A k r o n , O hio

Automobile Banking Corporation
P h ila d elp h ia

Colonial Finance Company
L im a ,

O hio

Commercial Securities Company
B a to n R o u g e , L a .

Consolidated Finance Corp.
In d ia n a p o lis , I n d .

Contact Purchase Corporation
D e tr o it

Interstate Finance Corporation
D ubuque, Iow a

Interstate Securities Company
K a n s a s C ity, M o.

Liberty Loan Corporation

has joined Wheelock &
C u m m i n s , Incorporated, in Des
Moines. Mr. Kelly is a veteran of 25
years in the securities business. Early
in the 1920’s he opened his own in
vestment firm and operated under the
name of J. J. Kelly and Company un
til 1942, at which time he became Des
Moines representative for Sincere and
Company of Chicago.

C h icago

J. J. K e lly

M. J. Hayes, assistant vice presi
dent, American National Bank and
Trust Company of Chicago, was
elected treasurer of the Municipal
Bond Club of Chicago for 1949-1950 at
the organization’s annual election
meeting held recently.

Mercantile Acceptance
Corporation
S a n F r a n cis c o

Mercantile Discount Corporation
C h icago

Manufacturers & Jobbers
Finance Corp.
S h elb y, N . C.

Mossier Acceptance Company
N ew

O rlea n s

National Discount Corporation
S o u th B e n d

North American Acceptance
Corporation
C h ica go

Northern Illinois Corporation
D e K a lb , III.

O ’ Dea Finance Company
D e s M o in es

Securities Acceptance
Corporation
O m a ha

Southwestern Investment
Company
A m a rillo, T e x .

W e are pleased to announce the association of
M R .

J .

C h ica go

K E L L Y

with our organization

W H EELO C K & C U M M IN S
I N C O R P O R A T E D

Des M o in e s :

Winter <S. Hirscli, Incorporated

2 0 0 E q u ita b le B ld g ., P h on e 4 -7 1 5 8

Members of the Chicago Stock Exchange

ASHW ELL
& COMPANY

I
176 W E S T ADAM S STREET
CHICAGO, ILL.
: TV

Commercial Paper

a*
j:f V7 V
Collateral Loa ns

Northwestern Banker, June, 1949

IN S U R A N C E

lio n ¡ta n k s Writ** ¡a s u r a Être
An A n a ly sis of Fire, C a su a lty , and L ile U nderw riting
O p eratio n s Among 1,000 Banks in the M id d lew est
A NORTHWESTERN BANKER
SURVEY
N ORDER to determine how banks
are serving the insurance needs of
their customers, the N orthwestern
B anker has completed a survey among
bankers throughout the N orthwestern
B anker territory which includes Min
nesota, Iowa, Nebraska, North and
South Dakota. Over 70 per cent of the
questionnaires were answered and re
turned, making an excellent sampling

CHART NO. 1
Does Your Bank Handle Insurance?
South Dakota
North Dakota
Minnesota
Nebraska
Iowa

93.1%
90.9%
88.8%
70.8%
61 %

say
say
say
say
say

YES
YES
YES
YES
YES

and offering valuable information for
all banks and insurance interests.
Bankers throughout the five states
tell whether they do or do not handle
insurance, what typès of insurance
they sell and what methods they use
in selling insurance to their customers.
Also, each banker reports his average
yearly fire and casualty insurance pre
mium volume and the average yearly
life production figures, making it pos
sible to find the average premium vol
ume and the average life production
figures for a bank handling insurance
in N orthwestern B anker territory.
The opinion and comments of the
bankers are presented on this and
following pages with their answers
carefully analyzed and charted.
The No. 1 Question of the survey is
divided into individual states to gain
the most accurate results, and is as
follows: “Does your bank handle in
surance?” South Dakota has the
largest percentage of banks offering
insurance to its customers with Iowa
having the smallest number. There
is a definite correlation between the
size of the town and whether the bank
offers insurance. Most banks in towns
of 2,000 population *md under, offer
insurance service because there are
few if any full time insurance agents.
This quite possibly has a bearing on
Northwestern Banker, June, 1949

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Federal Reserve Bank of St. Louis

the variation in percentages between
states, in that some of the states are
more heavily populated than others.
Charts 2, 3, 4 and 5 present a composite
percentage of all banks.
Question No. 2: “If your bank han
dles insurance, what lines are sold?”

volumes, and prove that banks are
important marketing outlets for in
surance. In figuring the casualty pre
miums, sale of hail insurance was
included. Banks handling hail cover
age say that it is very much worth
while and that it constitutes an ex
cellent source of income.
Question No. 5: “How much life in

was designed to find out which cover
ages are sold most widely by banks in
N orthwestern B anker territory. Fire
and casualty insurance leads the field
and this indicates two things. One,
bankers can offer fire and casualty
coverage to their customers at the
time they are making their loans, thus
providing them with an additional and
worthwhile service; Two, fire and cas
ualty insurance companies and their
fieldmen in their constant effort to
bring insurance up to value, have re
lied to quite an extent on the help of
the banker in determining these
values and adequately covering them.
Question No. 3 is: “Do you have a

along with the fire and casualty pre
mium figures. This average of $46,186
was obtained from the banks actively
engaged in the sale of life insurance.
Chart No. 2 tells us that 43.3 per cent
of the banks in N orthwestern B anker
territory handle life insurance. Most
of them indicated that they do spend
some time outside of the bank in so
licitation work and many bankers said
that they use life insurance commis
sions to supplement their incomes.
Question No. 6 is: “What help or

separate insurance department or
does some officer of the bank look
after insurance?” This question shows

training do you receive from your in
surance companies in writing insur
ance?” The majority of the bankers

that very few banks have an insur
ance department which is entirely
separate from the bank. Most banks
indicated that one or more of their
officers were licensed agents and sold
insurance either on their own or for
the bank.
Question No. 4 is: “What is your

stated that insurance companies and
field men are doing a satisfactory
job and that they are well satisfied.
A few comments that indicate the
trend of the answers are:
1. “They will assist in most any way
requested.”
2. “They have been very coopera
tive.”
3. “ Field men stop regularly and of
fer any help necessary and they
will lielp solicit if requested to
do so.”

average fire and casualty premium
volume per year?” The yearly pre

mium volumes for fire and casualty
are nearly equal, as indicated in Chart
No. 4. Both represent substantial

surance do you sell yearly (total cov
erage)?” is shown in Chart No. 4

CH ART NO. 2
If Your Bank Handles Insurance, What Lines Are Sold?

HEALTH AND ACCIDENT
■

■

2730/0

Insurance
4. “ The companies offer advertising
suggestions and advice on policies
and applications.”
5. “ Companies help us by conduct
ing panels, schools of instruction
and meetings from time to time.”
Not all bankers’ answers are favor
able, and some said that the insurance
companies offer no help at all. Some
bankers rendered detailed comments,
a few of which are:
1. “Very little help received from in
surance companies. They are

CHART NO. 3
Do You Have a Separate Insurance
Department or Does Some Officer
in the Bank Look After Insurance?
Some Officer
Separate Department
■ I 11 70/0
willing to answer letters and
special problems, but very seldom
send a man out to help or train.”
2. “Not as much as I need. Perhaps
it is my fault.”
3. “Not very much. We have asked
for it in several cases and have
received a fair response. I be
lieve that we could use a lot
more, and also I would suggest
that insurance companies utilize
newsprint media to bring the im
portance of their product home
to the people.”
4. “None of consequence.”
5. “ Companies offer very little help,
although all of them are willing
to help if we should call upon
them to do so.”

Comment
Question No. 7 is: “If you sell insur
ance do you consider it an important
part of your regular bank service to
your customers?” Many interesting

comments were received on this ques
tion and a number of them are as fol
lows:
“We find it not only an important
income feature but a fine service con
tact with the people of the community,
whether they are our bank customers
or not. By a good insurance service
we have established a friendly feeling
with many folks who do their bank
ing elsewhere and in some instances
have later opened accounts with us.”
“There are still some insurance
agents who sell insurance for the com
mission there is in it rather than a
true service to the insured. Most peo
ple feel they can get reliable insur
ance and reliable adjustments when
the insurance is handled by a reliable

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

firm. Most insurance agencies are re
liable, but there are a few curbstone
agents who are not. We believe it is
a service to our customers to be able
to get insurance through a bank.
“ One of the officers in our bank has
a life insurance contract personally,
and writes about $125,000 in business
a year.”
“Particularly in a small bank in a
small community a bank should pro
vide proper coverage for its custom
ers. Ordinarily there is not enough
business in small communities to op
erate a good, full-time insurance
agency. As a result, most full-time
agents in small communities are peo
ple who are not capable of handling a
business of their own and live on a
marginal income and their type of
service and the insurance they handle
are also of low grade.”
“Yes, in a small town we consider it
very important. We try to represent
only the best companies because we
like to have our customers feel they
are getting the best coverage pos
sible.”

CHART NO. 4
What Is the Average Fire and Casu
alty Premium Volume of Your Bank,
and What Is Your Annual Life Insur
ance Production?
Fire Insurance Premiums $ 9,298
Casualty Ins. Premiums
$ 8,851
Life Production Premiums $46,186

ness and many times it brings us
some nice installment loan business.”
“We have five insurance agencies in
our little town and these men are try
ing to make an honest living, there
fore we never solicit any insurance
of any kind.”
“We do not sell—or rather I should
state, solicit-—any insurance over the
counter. We sometimes do write fire
and car insurance in the office in con
nection with chattels and car financ
ing.
“We have never lost any bank cus
tomers because of writing or solicit
ing but I definitely know that we have
gained new bank customers through
our insurance soliciting.”
“ Believe that there are many cases
where customers are sadly in lack of
protection and also times they have
been overinsured, referring both to
life and casualty and fire.
“One thing I feel should be remem
bered is not to have the person
handling insurance in a bank get over
ambitious and let it interfere with
the bank work to a point where it
may be hazardous.”
“We have no established insurance
agency in our town and our patrons
appreciate this service. However,
bank work always comes first and we
do not allow it to interfere with regu
lar duties during banking hours.
“The cashier gets the commissions.
It is a means of keeping a high class
official happy on a moderate salary.”

“We solicit very little business, but
when making out statements we check
whether the party carries insurance
or not and if he doesn’t we suggest
he should so that his credit will not
be jeopardized by bad losses.”

“Our small town has no agency
other than at the bank. It is a neces-

“While we do not wish to openly
compete with other insurance agents
here, we do sell it for the benefit of
our customers if they find it more con
venient to buy at the bank.”

Sold Over the Counter

“The small town bank must either
look after the insurance needs of its
customers or send them out to find
some curbstone insurance agent who
has no office and is in the insurance
business on a temporary basis.”

Use Both Methods

“A good portion of our business is
crop hail insurance. Our annual pre
miums run about $13,000 in addition
to our fire and casualty premiums.”
“ Our insurance pays us about $10,000 a year profit. I think it is a very
good line to have in the banking busi

CHART NO. 5
How Does Your Bank Solicit
Insurance?

Sell Only Outside the Bank
6.6%

sary service to the community. The
sale of insurance is never used as
pressure in connection with the bank
functions.”
“ Insurance is one of the services ex
pected of a bank, especially of a bank
in a rural community; and too, it is
profitable to the bank.
“We follow the policy of saying
‘thank you’ just as cheerfully if they
say ‘No’ as when they say ‘Yes.’ In
Nort hwest ern Banker, June, 1949

Insurance

other words we endeavor at all times
to keep the banking service first, in
surance second.
“And we do not drive for insurance
in open competition with our insur
ance agent customers.”
“We operate our insurance depart
ment mainly for the income involved.
However, since the greater part of our
insurance business comes to us un-

solicitecl in the regular course of bank
business, it would seem that bank cus
tomers associate insurance in their
minds with other bank services.
“ Insurance company representa
tives have told us that, particularly
in the small towns of 2,000 population
and under, their bank agencies get
more business than non-bank agen
cies. It is our feeling that an insur
ance agent in a bank benefits in

MOVE
WI T
CAUTION

We have been engaged in the insurance business for a period
of forty-two years with a slogan of Safety and Service with
Savings. Our record of satisfied clients and agents speaks for
our success.

A .B .A . A d v a n ce s Four
Three members of the staff of the
American Bankers Association were
advanced and the earlier promotion of
a fourth was confirmed by the execu
tive council of the association at its
annual spring meeting at French Lick,
Indiana.
Lester Gibson, director of the A.B.A.
News Bureau, was advanced to the
rank of deputy manager.
Eugene C. Zorn, Jr., was named sec
retary of the Research Council.
George B. Ward was appointed sec
retary of the commitee on service for
war veterans.
Confirmed by the Executive Council
was the designation announced two
months ago of Thomas L. Nims as
assistant secretary of the savings and
mortgage division.

We offer a complete line of Fire — Windstorm — Automobile
and Plate Glass Insurance.

Western Mutual
Fire Insurance Co.
Oes Moines 8, Iowa

"Mutual Insurance Is American Insurance"

Did you know that adoption of 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.
F IR S T N A T IO N A L B A N K

B U I L D IN G

Nort hwest ern Banker, June, 1949

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

C H IC A G O

“ This is an important service, es
pecially from the bank’s standpoint,
as we have found when we make an
automobile loan that, unless we follow
it up, in many cases the policy doesn’t
come into our possession and we don’t
even know we are protected. Where
as, when we make the loan and take
care of the insurance at the same time,
we know we are protected. However,
we have never insisted on carrying the
insurance when we make the loan, as
we are more in the banking business
than the insurance business, but if
they do not have insurance we take
care of them. However, if they do,
we do not insist that we write it but
leave the present policy in force.
“Our insurance business has in
creased by soliciting, advertising and
from the fact that profits from the in
surance go to the bank and all stock
holders benefit, as ours is not a oneman controlled bank, but more of a
community bank with no really large
stockholders.”
“We do not stress insurance busi
ness at all. We merely write fire and
extended coverage on our local mort
gage loans and a few others. A good
local agency handles practically all
the insurance work here and we do
not believe in competing with them.
Casualty insurance is on city and
school officers bonds only.”—The End.

If you can furnish your clients with the kind of insurance pro
tection that is completely suited to the risks they may face, and
if the insurance you have to offer is at a reasonable and satisfac
tory rate, we congratulate you. If these terms do not describe
the insurance contracts you have, we suggest that you contact
us at once.

Ninth and Grand

volume of our insurance written be
cause of his bank connection more
than the bank benefits by having an
insurance department or an insurance
agent in the bank.”

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

STATE

2 4325

to Banks

Insurance

H ead s Chicago A .LB .
Gordon F. Purtell of the American
National Bank and Trust Company of
Chicago was elected president and Ar
thur Monson, Federal Reserve Bank,
was elected vice president of Chicago

vive him. They are R. T. Rutledge,
vice president of the Farmers Mutual
Hail, and E. E. Rutledge, who is presi
dent of the State Farmers Mutual of
Waseca, Minnesota.
Also, four sons of Mr. Rutledge sur
vive him, three of whom are at pres
ent officers of the çompany, including
Carl P. Rutledge, president; Walter S.
Rutledge, treasurer, and Foster O. Rut
ledge, who has just been promoted
from assistant secretary to secretary.
The fourth surviving son is Paul I.
Rutledge, secretary of the Farmers
Mutual Hail and the Farmers Mutual
Windstorm Companies of Columbia,
Missouri.

Chorus Program
“ Musical Moments” was the title of
the program presented last month by
the 115-voice mixed chorus of the Con
tinental Illinois National Bank and
Trust Company of Chicago to a capac
ity house.

M E R CMUTUA
H AL N T S

BONDING
COMPANY
Incorporated 1933

??Do Bankers Need Vacations??
WE SAY THEY DO— and our experi
ence with our many banker friends in
the past bears us out.

Home Office
SAVINGS & LOAN BUILDING
Des M oines, Iowa

YOU HAVEN'T HAD A BUSINESSPLEASURE VACATION TILL YOU'VE
JOINED PNL'S AGENCY FORCE ON ITS
ANNUAL
ALL-EXPENSES-PAID CON
VENTION.

G O R D O N F. P U R T E L L
A m erican N ational Bank, C hicago
E lected president o f the Chicago
Chapter o f A m erican Institute
of Banking

Chapter, American Institute of Bank
ing, at the annual meeting.
Elected to two-year terms as direc
tors of Chicago Chapter were: Norville A. AuBuchon, Harris Trust and
Savings Bank; LeRoy Brown, Federal
Reserve Bank; Norman J. Collins, Na
tional Security Bank; Sim A. Jackson
and Harry M. Scantlebury, Continen
tal Illinois National Bank and Trust
Company; Samuel J. Mize, The North
ern Trust Company; Martin Rockholm,
City National Bank and Trust Com
pany; Frederick C. Tanner, First Na
tional Bank, and Bernard E. Weber,
South East National Bank.

A P ioneer in H ail Insurance
With the recent death of W. A. Rut
ledge, secretary of the Farmers Mu
tual Hail Insurance Company, Des
Moines, the insurance business, and
particularly the hail end of it, suffered
the loss of a very great pioneer.
Mr. Rutledge, who attained the ripe
old age of 87 years and was quite active
up to his last year, founded the Farm
ers Mutual Hail in 1893 at Early, Iowa,
and moved the company to Des Moines
in 1894.
The preceding issue of the N orth
western B anker reported that two of
his brothers were at one time asso
ciated with him, whereas in fact seven
brothers were in business with him at
one time, and two of the brothers sur

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Federal Reserve Bank of St. Louis

Cut yourself in on substantial com
missions, and let our agents do the
work and qualify you at the same time
for a
FREE VACATION —

MINAKI LODGE

MINAKI, ONTARIO, C A N A D A

This is Iowa’ s oldest surety company.
A

progressive company with experi

enced, conservative management.
W e are proud of our two hundred and
fifty bank agents in Iowa.

(Lake of the Woods District)

To be the exclusive representative of

September 2-5

this company is an asset to your bank.

f ",

For Inform ation w rite
W . E. MOORE, A g e n c y V ice P resident

Policyholder’s National Life Ins. Co.

E. H. W A R N E R
Secretary and Manager

Home Offices

W . W . W ARNER
Assistant Secretary

SIOUX FALLS, SO. DAKOTA

S J tM d th }
AN A G EN CY CO M PA N Y
• Automobile
• Workmen's Compensation
• Public Liability Insurance

ALLIED

M UTUAL

CASUALTY COMPANY
Harold S. Evans, President
4th and Park Streets

Des Moines 9, Iowa

Nort hwest ern Banker, June, 1949

FAIR WEATHER PREDICTED FOR CONVENTIONS
Y e s ," it’s always fair weather when good fellows get together” . Com e rain or shine on
convention day, the atmosphere in every convention town will be bright, as old friends
meet again and new ones join the crowd.
Com e and swap ideas. Learn w hat’s new. Hear at first hand how others are meeting
and licking the problems facing every banker. H ere’s the schedule o f conventions:

M IN N ESOTA BA N KERS at ST. P A U L ..............................
M ICH IGA N B A N KERS at DETROIT

June 8-9

.............................. June 16-18

NORTH D A K O T A B A N KERS at M IN O T .......................... June 17-18
W ISCONSIN BA N KERS at M IL W A U K E E .......................... June 20-22
M O N TA N A BA N KERS at Y E L L O W S T O N E ......................June 23-25
. ......................

IOW A BA N KERS at DES M OINES

October 17-19

So get on your horse and make the m ost o f these opportunities. W e ’ll see you there.
I f you ’re among those meeting in St. Paul, take time to run over to M inneapolis for
a visit at F I R S T N ational.

F IR S T

N A TIO N A L BA N K OF M IN N EA PO LIS
henry e . atwood,

President

------------------------------------------ D E P A R TM E N T O F B A N K S A N D B A N K E R S ------------------------------------------

M. o. grangaard , Vice President

Assistant Vice President
m a r t i n , Assistant Vice President

J. J. M A L O N E Y ,
K. T.

Member

Nort hwest ern Banker. June, 1949

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

....

J. m . d ow nes , Assistant Cashier

. G' s ' HENEYE ' CORCHRAN, A
Federal

Deposit

t Vice President

Insurance

C orporation

W EYEAUCH>

AssisVice President
Representative

The
M in n esota t onvention
W e d n e sd a y and T h u rsd a y, June 8 and 9, in St. Paul,
W ith H e a d q u arte rs at the H otel St. Paul
E MB E R S of the Minnesota
Bankers Association, w h o s e
convention each year is one of
the top-notch bankers’ gatherings of
the middle west, in both interest and
attendance, will come to St. Paul on
Wednesday and Thursday, June 8th
and 9th, for their 59th annual meeting.
Headquarters will be at the Hotel St.
Paul.
Golfers who wish to do so may tee
off at eight o’clock Wednesday morn
ing at the Keller Golf Course near
St. Paul. The registration desk will
open at noon of that day. The usual
advance registration has been made
available again this year, and many
of those attending will take advantage
of it, thereby relieving the congestion
around the registration desk. If you
are registered in advance your badge,
tickets and other credentials will be
handed to you immediately.
The pre-convention smoker, a tradi
tion with Minnesota bankers, starts at
six-thirty on Wednesday evening, with
the usual sumptuous budget dinner
and exciting stage show. Entertain
ment for the ladies will take place at
eight o’clock this same evening.
M. O. Grangaard, president of the
Minnesota Bankers Association, and

vice president of the First National
Bank, Minneapolis, will call the first
convention session to order on Thurs
day morning. Speakers for this ses
sion, including Mr. Grangaard, will be
Governor Luther W. Youngdahl of
Minnesota and Richard W. Trefz, pres
ident of the Beatrice State Bank of
Beatrice, Nebraska. The American
Bankers Association Minnesota annual
meeting and election, with ABA State
Vice President J. T. Peterson presid
ing, will close the morning session.
The two principal speakers at the
afternoon session will be Evans Wool
len, Jr., president of the American
Bankers Association, and Colonel Har
old G. Hoffman, former governor of
New Jersey.
The chief entertainment feature of
the convention will be held this Thurs
day evening, with the banquet and ice
show at the St. Paul Auditorium, fol
lowed by a dance at the Hotel St. Paul.
Details of the convention program
are as follows:

Golf — Keller Golf Course, St.
Paul.
12:00 Noon—Registration desk opens.

Call to Order—M. O. Grangaard.
Invocation — Rev. Herbert
Lindemann, pastor, Lutheran
Church of The Redeemer.
Centennial Welcome — Gover
nor Luther W. Youngdahl.
President’s Address — M. O.
Grangaard.
Richard W. Trefz, president,
Beatrice State Bank, Beatrice.
ABA Meetings and Elections

ELM ER M. VO LK EN AN T
A ssistant V ic e President First N ational Bank,
St. Paul, and Chairman o f the General Com m ittee
for the Convention.

L L O Y D L. L E I D E R
A ssistant Cashier First N ational Bank, St.
Paul, and Chairman of the Banquet and E nter
tainment Com m ittee.

M E R L IN A. A H L B E R G
C om ptroller A m erican N ational Bank, St. Paul,
and Chairman of the Convention G olf Com m ittee.

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

Wednesday, June 8th
A. M.
8:00

M. O. G R A N G A A R D
V ice President First N ational Bank,
M inneapolis, and President M innesota
Bankers A ssocia tion

P. M.
6:30 Pre-Convention Smoker.
8:00 Women’s Stagette.

Thursday, June 9th
A. M.
9:30

Nort hwest ern Banker, June,

1949

Minnesota News

J. T. Peterson, ABA state vice
president, presiding.
MBA Elections
P. M.
1:00

Ladies’ Luncheon and Style
Show—Lowry Hotel, St. Paul.
1:30 Call to Order — Newly elected
president.
4-H Club Presentations—N. V.
Forgerson, chairman. F a r m
Youth Committee.
Evans Woollen, Jr., ABA presi
dent.
Colonel Harold G. Hoffman,
former Governor of New Jer
sey.
6:30 Banquet and Ice Show — St.
Paul Auditorium.

9:30

Dance — Casino Ballroom, St.
Paul Hotel.

Convention Committees
Committee personnel who will su
pervise convention activities is com
posed of officers and representatives of
St. Paul banks only. Members of the
several committees are:

General Committee
E. M. Yolkenant, chairman, assistant
vice president, First National Bank;
Allyn W. Brown, assistant vice presi
dent, American National Bank; Joseph
A. Cavitzel, vice president, American
National Bank; John M. Kane, vice
president, Empire National Bank &

Trust Company; Miss Jennie Wil
liams, Empire National Bank & Trust
Company; Lloyd L. Leider, assistant
cashier, First National Bank; Martin F.
Ernst, vice president, Midway Nation
al Bank, and Charles J. Ritt, executive
vice president, Midway National Bank.

Banquet and Entertainment

Lloyd L. Leider, chairman, assistant
cashier, First National Bank; Joseph
A. Cavitzel, vice president, American

K
ALLYN W. BROW N
A ssistant V ic e President A m erican N ational
Bank, St. Paul, and Chairman of the R egistration
Com m ittee.

Send Your Items Direct
For more than fifty years the Stock Yards
National Bank has been an important cog in
the machinery that sells, processes and pays
for the livestock from your community, sold
at the South St. Paul market.

National Bank; John M. Kane, vice
president, Empire National Bank &
Trust Company; Ted Maier, vice presi
dent, First National Bank, and Charles
J. Ritt, executive vice president, Mid
way National Bank.

Golf
Merlin A. Ahlberg, chairman, comp
troller, American National Bank; Ar
thur W. Warn, assistant vice president,
Empire National Bank & Trust Com
pany; Lee A. Sauer, assistant vice
president, First National Bank, and
Martin F. Ernst, vice president, Mid
way National Bank.

Ladies' Entertainment

An account with us assures the most efficient
handling of transactions at this market.

Miss Jennie Williams, chairman, Em
pire National Bank & Trust Company;
Mrs. Elizabeth Mork Hagerty, Ameri
can National Bank; Miss Helen Schnei
der, First National Bank, and Mrs.
Corrine Severson, Midway National
Bank.

►

Registration

The Stock Yards National Bank
South Saint P a u l. M in n .
MEMBER FEDERAL

Nort hwest ern Banker, June, 1949

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

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

Allyn W. Brown, chairman, assistant
vice president, American National
Bank; Russell A. Nelson, assistant
cashier, Empire National Bank & Trust
Company; Donald L. Smith, First Na
tional Bank, and C. S. Truen, assistant
cashier, Midway National Bank.

Minnesota News

Jo in s Sauk C entre Bank
Edmund E. Hart, formerly of Neilsville, Wisconsin, has been elected a
vice president of the Merchants Na
tional Bank of Sauk Centre, Minne
sota, an affiliate of First Bank Stock
Corporation.
A graduate of the University of
Wisconsin, Mr. Hart has had 24 years’
experience in banking. He recently
resigned as vice president of the Neilsville Bank at Neilsville to accept the
Sauk Centre position. Previously he
was associated with the First Wiscon
sin National Bank of Milwaukee and
the Marion State Bank at Marion,
Wisconsin.

M innesota A sso ciatio n
H onors 4-H Youths
Four outstanding Minnesota 4-H
Club members who were selected as
delegates to the national 4-H Club
Camp in Washington June 15th-22nd,
will receive expense-paid trips from
the Minnesota Bankers Association, it
was announced recently by N. V. Torgerson, president of Farmers State
Bank, Adams, and chairman of the
bankers’ Farm Youth Committee.
Winners were - Richard Angus, 18,
Farmington; Marjorie Nelson, 18, Blue
Earth; Catherine Duevel, 19, Robbinsdale, and Lloyd Carter, 19, Tintah.

tV & k o m S L

“ To be selected as a delegate is con
sidered the highest award that can
come to a boy or girl in 4-H Club work
and is one of the state’s most coveted
4-H honors,” explained A. J. Kittleson,
state 4-H director, who made the selec
tions.
The Bankers Association, wishing to
recognize the winners’ outstanding
and long-time 4-H work and leader
ship, will present the awards when
they hold their annual convention in
St. Paul on June 8th and 9th.

THE
A N SW ER
M EN
JOE ROGERS

Lake W ilson Bank Sold
H. R. Lexvold, president of the First
National Bank of Lake Wilson, Min
nesota, has sold his controlling inter
est in that bank to E. C. McElhaney
of Omaha, Nebraska.
Mr. McElhaney is a banker of many
years’ experience, having for some
years been active in country banks in
Nebraska, but was for the past 15
years officially associated with the U.
S. National Bank of Omaha.
In addition to the bank stock, Mr.
McElhaney has purchased the resi
dence of Mr. Lexvold and has assumed
the presidency of the bank, becoming
the active executive officer.
Negotiations were h a n d l e d by
Charles E. Walters Company, bank
sales agency of Omaha, Nebraska.

CARL LUDWIG

TOM MARRON

Your Insurance
PROBLEMS
Years of Experience in all lines
of Insurance Qualify Us to Help
Serve You.

FRANK S. ROGERS
AGENCY, IN C
414-415 HAMM BLDG.

ST. P A U L 2, M IN N .

SAINT PAUL . . .

DURING THE MINNESOTA BANKERS ASSOCIATION CONVENTION
W e extend a cordial welcome to all Minnesota
bankers attending the annual convention of the
Minnesota Bankers Association in Saint Paul
June 8th and 9th. W e invite you to visit our
Bank, meet our officers and inspect our modern
facilities.

rt3 YYAlf“"/•/ ‘■O
■T”.
-S'

OTTO BREMER
Chairman
CHINA R. CLARKE
President

C. A. M ALEY
Vice President

R. O. BISHOP
First Vice President

F. J. GODE
Vice President

H. B. HUMASON
Executive Advisor

J. A. CAVITZEL
Vice President

M. A. AHLBERG
Cashier

Please make this Bank your service headquar
ters and feel free to call on us for any assistance
that will help you to enjoy yourself more while
in Saint Paul.

T he A merican N ational B ank

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Federal Reserve Bank of St. Louis

S aint P aul

SAIN T PA U L 1, M IN N E SO TA

Member Federal Deposit Insurance Corporation
Nort hwest ern Banker, June, 1949

‘ ‘Charlie” Rieger spends a

lot o f time getting first-hand
<

information that will give him
insight into the problems o f our

correspondent bankers. Call
y

him or write him whenever
you need information or
assistance.

CHARLES

Vice Presid ent

RIEGER

RUSSELL L. STOTESBERY

LYLE J. STOTESBERY

President

Wee President

DEPARTMENT of BANKS and BANKERS
CHARLES C. RIEGER

OTTO H. PREUS

Vice President

Assistant Vice President

THE STRONG FRIEND OF THE INDEPENDENT BANKER

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

]

H ENRY S. KINGMAN, president of

the Farmers & Mechanics Sav
ings Bank of Minneapolis, has been
elected president of the National Asso
ciation of Mutual Savings Banks.
His election, at the organization’s
annual conference in Washington,
marked the second time that a Minne
apolis banker has been named to the
post. Thomas F. Wallace was elected
in 1931, when he was president of
Farmers & Mechanics. Mr. Wallace
now is chairman of the board of the
bank.
John de Lattice, vice president of
Farmers & Mechanics, was re-elected
to membership on the association’s
council of administration at the con
ference. The council is the governing
body of the association.

Arnulf Ueland, president of the Mid
land National Bank of Minneapolis,
recently announced a 50 per cent in
crease in the semi-annual dividend for
the bank. The dividend was increased
from $2.50 a share to $3.75 a share on
the 10,000 shares of stock outstanding.
The bank has paid dividends of $5
a year per share for the past seven
years. In 1929 the bank paid divi
dends amounting to $8 per share, the
highest in the bank’s history.
Mr. Ueland said it was decided to
raise the dividend in view of satis
factory earnings. The bank had a net
addition to capital of $250,000 after
dividends last year, compared with an
average net addition of $185,000 for
the past 10 years, he said.
Julius H. Brogmus, president of the
Minnesota State Bank of St. Paul, has
been named co-chairman of a drive to
raise $250,000 for an improvement pro
gram at Riverview Memorial Hospital
of St. Paul.
Rollin G. Andrews of J. M. Dain &
Company of Minneapolis recently was
named chairman of the United States
savings bond committee of the Minne
sota group of the Investment Bankers
Association of America, according to

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Federal Reserve Bank of St. Louis

Hal H. Dewar, San Antonio, Texas,
president of the association.
The committee was named to work
with the treasury department in the
savings bond drive which opened May
16th. Other members are E. R. Col
burn of the Northwestern National
Bank of Minneapolis, Carl J. Kali of
the First National Bank of Minneap
olis and B. B. Knopp of the First Na
tional Bank of St. Paul.
AVendell A. Mattson of the Midland
National Bank of Minneapolis recent
ly was elected president of the Twin
City Bank Auditors and Comptrollers
Conference. Ernest Haugberg of the
First National Bank of St. Paul was
elected vice president; A. (). Dokken
of the Northwestern National Bank of
Minneapolis, secretary, and James
Goblisch of the First Grand Avenue
State Bank of St. Paul, treasurer.
Henry S. Kingman, president of the
Farmers & Mechanics Savings Bank
of Minneapolis, and other board mem
bers of General Mills, Inc., broke

precedent recently by holding their
regular monthly meeting at General
Mills’ new chemical oils plant near
Kankakee, Illinois. It was the first
time the board had met away from
Minneapolis, where headquarters of
fices are located, or Wilmington, Dela
ware.
Savings deposits are continuing to
increase, although total deposits in
state banks in Minnesota are falling
off, according to a recent report by
Charles M. Wenzel, acting Minnesota
state commissioner of banks.
Total deposits of $971,628,106 have
dropped $21,008,525 since December 31,
1948, but savings deposits have in
creased by $2,909,696, Mr. Wenzel re
ported. An upward trend in loans is
continuing, with the present total of
$302,683,893 the highest since June 30,
1922, and up $15,613,786 since Decem
ber 31, 1948. Net capital showed an
other increase of $1,931,084 to a new
total of $67,433,353.
The First National Bank of Minne-

SnvMbnsmL SnnjüúíisLáu

Specialists in Corporate and Municipal Securities o f
the Central Northwest

J. M. D ain & C ompany
ST. PAUL
TELEPHONE

M INN EAPOLIS
ATLANTIC

8 1 41

DULUTH
TELETYPE

MP-73

Nort hwest ern Banker, June, 1949

Minnesota News

apolis won a merit award recently for
work in employer-employe relations.
The honor was conferred at the North
west Industrial Editors’ conference at
the University of Minnesota.
Harvey Petersen of the First Na

tional Bank of Minneapolis recently
was elected president of the Minne
apolis chapter, American Institute of
Banking.
Carl G. Forsberg of the Farmers &
Mechanics Savings Bank of Minne
apolis was named first vice president.
In a contested election for second vice
president, who automatically succeeds
to the presidency in 1951-52, Ralph
Emerson of the Northwestern Nation

al Bank of Minneapolis defeated New
ton Dashiell and Ansel Anderson.
John Ordos of the Midland National
Bank of Minneapolis was elected treas
urer.
Named to the board of governors
were Zeldon (Pat) Pellami of the Min
neapolis Federal Reserve Bank, Al
Berglund of the First National Bank
of Minneapolis and C. (Pete) Camp
bell of the Northwestern National
Bank of Minneapolis.
Calvin W. Aurand, vice president of
the Midland National Bank of Minne
apolis, has been appointed to the new
committee on committees for 1949-50
of the Minneapolis Chamber of Com

Select Insurance
fo r Select Risks!
Sickness and A ccid en t Policies with H ospital
and Surgical R eim b u rsem en t for
P referred O ccupations

O V E R 44 Y E A R S

SUCCESSFUL

S E R V IC E

merce. Mr. Aurand also has been
elected a director of Associated Indus
tries, a Minneapolis employers’ organ
ization.
J. Cameron Thomson, president of
the Northwest Bancorporation, an
nounced recently that the board of di
rectors had declared the regular quar
terly dividend of 25 cents per share
on the 1,547,767 shares of stock.
A quarterly dividend of 25 cents per
share, plus a special dividend of 20
cents per share, was paid February 25,
1949. The corporation in 1948 paid
regular and special dividends aggre
gating $1 per share.

founder and
chairman of the board of directors of
the Marquette National Bank of Min
neapolis, died recently in Minneapolis
at the age of 77. Funeral services and
burial were in Minneapolis.
Mr. Manuel founded the Excnange
State Bank, forerunnner of the pres
ent Marquette National Bank, in 1916,
and served as its president. Six years
later the Exchange State Bank was
consolidated with the State Institu
tion for Savings to form the Marquette
Trust Company, with Mr. Manuel as
president.
In 1922, the Paj^ Day National Bank
affiliated with the Marquette Trust
Company under the name of Mar
quette National Bank. Mr. Manuel
also was named president of this firm.
Several other banking establish
ments were absorbed by the Mar
quette National Bank under Mr. Man
uel’s leadership, and in 1934 the two
Marquette institutions were consoli
dated under the name of Marquette
National Bank. Mr. Manuel retired
from the bank presidency in 1945 to
become chairman of the board. He
was succeeded by R u ssell L . StotesRalph

AV.

(

Manuel,

bery.

fl rite for Application and Literature to

MINNESOTA COMMERCIAL
MEN’S ASSOCIATION
PAUL CLEM ENT, S ecreta ry
2550 PILLSBURY AV ENUE
M IN N EA P O LIS 4, M IN NESOTA

Northwestern Banker, June, 1949

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

J. Marvin Peterson, director of re
search for the Minneapolis Federal
Reserve Bank, is co-author of a text
book on money and banking, pub
lished recently. Emphasis in the book
is on the role of banking in the econ
omy rather than on monetary theory,
Mr. Peterson said. The banking pro
cess from the point of view of the
individual bank is explained carefully,
as is the relationship of the individual
bank to the whole banking system.

.1. Cameron Thomson, president of

the Northwest Bancorporation, headed
a subcommittee which drafted a tax
and expenditure policy for 1949 report
for the Committee for Economic De
velopment.
Northwest bankers who think they
have troubles should listen to Alberto

Minnesota News
dos Santos Foz, 30-year-old manager

of a branch bank in Rio de Janeiro,
Brazil, who is learning American bank
operations by working in the First Na
tional Bank of Minneapolis.
Mr. Foz said that in Brazil’s hinter
lands, a farmer can, and frequently
does, demand for withdrawal the very
same bills he deposited in a savings
account years before. Often he keeps
a list of the serial numbers.
Money is scarce and competition for
savings keen, with interest running
as high as 7% per cent. There is little
investment capital and no stock mar
ket, because of the high rate savings
earn in banks.
Brazilian banks don’t dare advertise
for savings. To do so would arouse
public suspicion as to whether the
bank had sufficient funds to remain
solvent. Checking accounts are al
most unheard of, and women bank
employes rarely are found in Brazil.
Mr. Foz is preparing for a doctor’s
degree in economics at the University
of Minnesota.
To add a further cosmopolitan touch
to the Minneapolis banking picture,
two Swedish banking representatives
visited the city recently.
One was Ivar Rooth of Stockholm,

DULUTH

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Federal Reserve Bank of St. Louis

—

who was governor of the Bank of
Sweden for 20 years, until last Decem
ber, and the other was Sture Erikkson, public relations officer for the
savings bank of Norrkoping, Sweden.
Mr. Rooth is in the United States to
assist the commission for social secur
ity meetings for the United Nations.
Mr. Erikkson visited the Farmers &
Mechanics Savings Bank of Minneap
olis during a nationwide tour of Amer
ican mutual savings institutions.
Among officers of the Minneapolis
bank who conferred with him were
Henry S. Kingman, president, and
John de Laittre, vice president. Mr.
Erikkson reported that Sweden, with
a population of 7,000,000, has more
than 500 mutual savings banks operat
ing more than 900 branches. Eight
out of every 10 citizens have savings
accounts, he said.
Plans for construction of a new
bank in St. Louis Park, Minneapolis
suburb, were announced recently by
G. S. Evarts of Minneapolis, president
of the bank. The new institution, to
be known as Citizens State Bank of
St. Louis Park, will offer drive-in
service to enable depositors to trans
act business from their cars.
Steve E. Anderson, South Dakota

state auditor, announced he will re
sign late this year to become cashier
of the new bank. Plans call for a onestory stone and brick building. A
U-shaped driveway will lead to a tell
er’s window and through a parking
lot to the exit. The drive-in teller’s
window will be equipped with bullet
proof glass, gun port, two-way electric
speaker and interlocking door trays
for passage of money, checks and pa
pers. Inside will be a conventional
lobby, check desks, six tellers’ win
dows, vaults and offices.
The Midland National Bank of Min
neapolis celebrated its 40th anniver
sary recently by holding an open
house for depositors and other friends
in its remodeled quarters. The visi
tors were taken behind the scenes and
shown how their checks and cash are
handled.
The remodeling program provided
new quarters for officers of the bank,
a new lunchroom, an employes’
lounge, sound-proof ceilings, fluores
cent lighting and “piped” music in all
working departments.
The bank was founded in 1909 as the
Scandinavian American N a t i o n a l
Bank of Minneapolis, with assets of
less than $1,000,000. Now one of the

A m erica ’s largest inland port
For almost 70 years this bank has constructively
participated in the industrial growth of Duluth
and the Head-of-the-Lakes area. Our nationwide
connections offer you the finest correspondent
facilities. The same convenient, helpful service
given to all customers is at your disposal.

W tt

Northwestern Banker, June, ?949

Minnesota News

“big four” downtown Minneapolis
banks, it has present assets of $58,965,312.
Nils (). Werner was its first presi
dent. The 16-man board of directors
included such men as Andreas Ueland,

OUT

father of Arnulf Ueland, who now is
president of the bank.
The bank assumed its present name
in 1917. It affiliated with the North
west Bancorporation in 1929. E. L.
Mattson became president in 1932 and
chairman of the board 10 years later,

IN F R O N T

From Alice in Wonderland we learned
that we must "run very fast to stay in
the same place” . W e don’t think this
delightful book says anything about
how fast one must run to forge ahead.
In the business world we recognize the
wisdom o f the observation and yet
some o f us do forge ahead... and some
reach the top.
Here at DeLuxe we feel that we are out
in front in the field o f check manufac
ture. We have not reached the top and
we never expect to, but, by running
very fast and always improving our
product and our service, we hope to
remain in the lead.
T o protect our position, we are introduc
ing in our five plants many innovations
that will make precision workmanship
easier than mediocre workmanship. Little
things that in themselves would not
be considered major projects but,when

put together and applied to our process,
make for smoother and more accurate
handling o f orders.
The check business is changing. W e
are getting away from large runs and
large shipments and more into the
handling o f extremely small units. As
the Personalized Check Program con
tinues to gather momentum, we find
ourselves oftentimes handling a thou
sand orders where we formerly handled
one. As a consequence, we are adjusting
our thinking and our facilities in order
to keep pace with the new buying
habits o f our customers.
Because we really like to handle little
orders, and because over a period o f
thirty-three years our staff has become
attu ned to them , we c o n s titu te
a dependable source o f supply for the
bank that needs topnotch service and
lots o f it.

To Our Banker Friends:
Our

latch

string

is always out

and

we would

very pleased to have you visit our store while attending
the convention.
W e will al so have an exhibit at the Minnesota con
vention, Hotel St. Paul, June 8-9.

The Leslie Schuldt Co.
Complete Bank Outfitters
49 W E S T NINTH STREET - SAINT PAUL 2 , MINN.
“ Bankers Standardization Bureau”

Nort hwest ern Banker, June, 1949

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

with Arnulf Ueland succeeding him as
president. Mr. Mattson died in 1945,
and the bank now has no chairman of
the board. G. L. Heegaard is senior
member of the board. C. B. Mills,
now of Moline, Illinois, the only living
former president of the bank, and
Mr. Heegaard were honored guests at
a dinner for officers and directors of
the bank.
Coincident with the celebration, Ed
ward H. Norblom, president of the
Landers-Norblom-Christenson Co. of
Minneapolis, was elected a director.
In addition to Mr. Ueland, present
officers of the bank are Calvin W.
Aurand, William E. Brockman, Wil
liam R. Chapman, Albert W. Gray,
Lawrence (). Olson and Clifford Som
mer, vice presidents; Robert S. Stehbins, vice president and cashier, and
Robert E. Towley, vice president and

trust officer.
Four Twin Cities bankers have been
named to key posts in the recently
formed Junior Achievement Advisory
Council for the St. Paul-Minneapolis
area.
T. I). Maier of the First National
Bank of St. Paul was named treasurer
and Oliver S. Aas of the First National
Bank of Minneapolis, assistant treas
urer. Named to the council were
Henry E. Atwood, president of the
First National Bank of Minneapolis,
and John Peyton, president of the
Minneapolis Federal Reserve Bank.
Junior Achievement, Inc., is a na
tional non-profit, educational organiza
tion established to give young people
of high school age actual experience
in operation of business. The students
organize small companies which cap
italize through stock sales. They elect
their own officers and managers and
later liquidate with a report to stock
holders. Each Junior Achievement
company is sponsored by an adult
company, which furnishes three ad
visers.
The Federal Reserve Bank of Min
neapolis will offer scholarships to 10
ninth district college and university
professors this fall to enable them to:
Make first-hand observations of the
operations of the federal reserve
banks and the board of governors of
the federal reserve system.
Study the considerations involved
in the formation of monetary policy.
Announcement of the project was
made last month at a one-day confer
ence on money and banking given by
the bank for nearly 100 college and
university instructors from the Upper
Midwest.
Henry Drey fuss, world’s leading in
dustrial designer—designer of the tele
phone on your desk, your secretary’s

Minnesota News
typewriter, your office addressograph
and multigraph equipment, the Eversharp pen and pencil in your pocket,
vault and safe time instruments, the
protectograph, a check-embossing ma
chine familiar to all bankers, even the
thermos water pitcher in your meet
ing room—spoke before the North
western National Banks of Minneap
olis Home Institute Club’s last 1948-49
meeting. Headquarters for the Club’s
meetings, the auditorium of the Min
neapolis Institute of Arts, was once
again filled to over-flowing with all
seats taken and people standing in the
aisles.

Is Brannan Farm Plan
D e sira b le ?
1. Can Consumers get cheap prices?
2. Can farmers get high prices?
3. And all in the same hill?

By CHINA R. CLARKE, President
The American National Bank
St. Paul, Minn.
S A banker in an important agri
cultural area, I am inclined to
view the farm income parity propos
als of Secretary of Agriculture Charles
F. Brannan with a large degree of
sympathy. To understand the signifi
cance of the secretary’s suggestions to

demand than the beneficiary. The
weather is good to him, but the mar
ket is bad.
Just to brush off. this fact with
“That’s the farmer’s hard luck” is, as
I see it, a facetious answer to a serious
problem, for the farmer’s hard luck
can bring, and has brought, wide
spread disaster to a much larger com
munity than just the area of the farm
er alone. Twenty-seven millions of

UNDERWRITERS

—

our population live and work on farms.
This, more than a sixth of our people,
forms a great bloc of purchasing pow
er. As an example, in Minnesota in
1947, cash income to farmers was SI,344
millions, an all-time peak, of course,
while in 1932, at the other extreme,
the cash income was only one-eighth
of this, or $177 millions. Even if you
allow for the difference in buying pow
er of the dollar, this still represents

DISTRIBUTORS

—

DEALERS

MUNICIPAL BONDS
CORPORATION BONDS and STOCKS

KALMAN & COMPANY
Endicott Building

McKnight Building

ST. PAUL

MINNEAPOLIS

Garfield 3305

Atlantic 5313

Investors Mutual
Prospectus on request from Principal Underwriter

INVESTORS
DIVERSIFIED SERVICES
ESTAB LI SHE D 1894
(as Investors Syndicate)

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

C H IN A R. CLAR K E
President
A m erican N ational Bank o f St. Paul

Congress, we must first understand
the problems posed by historical insta
bility of the agricultural economy. The
farmer does not set a price upon the
commodity he produces. The price is
set in the market place. Furthermore,
the farmer sows for an abundant har
vest. He gambles against the restric
tions which unfavorable weather may
impose on him. Therefore, chiefly be
cause of these two factors, the farmer
more often is the victim of supply and

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Federal Reserve Bank of St. Louis

Investment Securities
Municipal and Corporate Bonds

HAROLD E. WOOD & COMPANY
First National Bank Building
ST. PAUL I

MINNESOTA

Nort hwest ern Banker, June, 1949

Minnesota News

a gain of about 300 per cent in buying
power. The reflection of this tremen
dous gain is felt in every city, town
and hamlet in the state.
Somewhere between these two ex
tremes is a disaster level, a level which
would bring business failures, unem
ployment and other catastrophies of
business depression. There has been
a growing recognition of this farm
problem. There have been attempts
to meet it before. The McNary-Haugen
Bill was one attempt. The Agriculture
Marketing Act is another. The Aiken
Act is still another.
Chief criticism of the Aiken Act,
passed by the last Congress, is that

Z>LBANK

CARL

L. F R E D R IC K S E K
President

M A R K A. W I L S O N
V ic e President
C L IF F O R D L. A D A M S
V ic e President
W I L L I A M C. S C H E N K
Asst. V . Pres, and Cashier
J O H N S. H A V E R
A sst. Cashier
J A M E S L. S M IT H
A sst. Cashier and A uditor
K I N L E Y W . S M IT H
Asst. Cashier
STAN LE Y W . EVANS
A sst. Cashier

the parity formula is outmoded and
that the flexibility of the price support
levels would, of itself, deliver a disas
trous blow to farm income and, there
fore, to farm purchasing power. But
it is generally conceded that, for lack
of any other method of stabilizing the
agricultural industry, the price sup
port program has considerable merit.
Virtually all legislation is designed
for political effect and Secretary Brannan’s proposals are no exception in
this respect. But his proposals are
neither so revolutionary nor so op
portunistic as some think.
The secretary would encourage feed
ing of grain surpluses for which ex-

ttLYARDS

For Your Customers, Too!
Banks in 4 states send their items
on Sioux City and Sioux City area
direct to the Live Stock National Bank
for credit. The rapid service they
receive pleases them and makes
their customers happy, too.
We recommend this same satis
factory service to you and your
customers, here at the Live Stock
National Bank in Sioux City!

port markets are diminishing, but
grains and other storable commodities
would be supported by government
loans and purchase agreements as at
present, but on a new basis. This
basis would be the average price for
the next last ten years, plus or minus
the increase or decrease in the cost of
farm supplies to the farmer.

Market Unlimited
Farm leaders have told me the war
demonstrated the nearly unlimited
market for food, provided people can
afford it. Therefore, these leaders say,
if employment is kept at maximum
and national income at a maximum
level, the demand for food would be
sufficient to prevent the huge cost of
subsidies to consumers and farmers,
because it would tend to close the gap
between support levels and market
prices.
As far as the unit limitation placed
on support for agricultural prices is
concerned, only about 2 per cent of
the farms in the country would be
affected. And even these larger, cor
poration-type farms would participate
in the program to the same extent as
the smaller, independent “family-type”
farms. Mr. Brannan has frankly stated
that his proposals are aimed at halting
the trend toward concentration of land
control. I firmly believe that most
people will agree that such concentra
tion of land ownership or control is
unsound economically as well as so
cially.
I think all bankers should, if they
have concern for the over-all economy,
give studied attention to the Brannan
proposals. We are living in an age
which requires examination of all ave
nues which may lead to better plan
ning for the common good.

Northwestern Banker, June, 7949

All bankers do not view the Brannan
Plan as mildly as does Mr. Clarke.
Here is an expression from Max von
Schrader, president of the Union Bank
and Trust Company of Ottumwa, Iowa,
in which he says:
“ I disagree entirely with the theories
behind the program and also with the
plan itself. Adoption of this plan
would mean complete Government
control of the entire agricultural in
dustry and the potential cost could
very possibly bankrupt the nation.
“ I am very much opposed to the tax
ation of one group for the benefit of
another, which of course is what is
being done in the TV A program, and
what unthinking and uninformed
zealots are trying to do in asking for
an MVA. All these programs are lead
ing us straight into state socialism.
Evidently we will continue on this
track until the people of the country
realize they can’t get something for
nothing.”

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Federal Reserve Bank of St. Louis

A t th e

South D a k o ta Convention

1—
The Nominating Committee meets— F. F. Phillippi, chair
man, president Dakota State Bank, Milbank; Clayton Walker,
vice president Aberdeen National Bank; O. D. Hanson, presi
dent Bank of Union County, Elk Point; and H. R. Kibbee, vice
president Commercial Trust & Savings Bank, Mitchell.

4—
Leonard Moeller, assistant secretary St. Paul MereuryIndemnity Company, St. Paul; J. R. McKnight, chairman of the
board Pierre National Bank; H. O. Ekeland, vice president Bank
of Kimball; and E. E. Erickson, vice president Toy National
Bank, Sioux City, Iowa.

2—
Part of the Resolutions Committee—L. L. Lillibridge,
president Burke State Bank, Burke; Max Gutz, cashier First
National Bank, Selby; Carl Bahmeier, secretary South Dakota
Bankers Association, Huron; T. R. Brisbine, vice president and
cashier. Sanborn County Bank, Woonsocket; and Scott Lovald,
cashier First National Bank, Philip.

5—
Charles Christen, president First State Bank, Roscoe, at
tending his 42nd consecutive convention of the South Dakota
Bankers Association; and Carl Fredricksen, president Live
Stock National Bank, Sioux City, Iowa, at his 28th consecutive
South Dakota meeting.
6—
M. O. Grangaard, vice president First National Bank,
Minneapolis, and president Minnesota Bankers Association; and
O. B. Jesness, chief division of agricultural economics Univer
sity of Minnesota, Minneapolis.

3—
G. L. Mitchell, vice president De Luxe Check Printers,
St. Paul; and Charles H. Walcott, assistant cashier Security
National Bank, Sioux City, Iowa.

South D akota t
it rook s A

ttendanceR ecord s

Bankers at A b erd een M eeting
Ele ct T. S. H arkison, Sioux Fa lls, as P resid ent
OM S. HARKISON, president of
the National Bank of South Dakota
at Sioux Falls, was elected presi
dent of the South Dakota Bankers As
sociation convention at the 57th an
nual meeting held last month in Aber
deen. Serving with Mr. Harkison as
vice president is R. W. Douglass, presi
dent of the Farmers State Bank, Du
pree. Carl E. Bahmeier, Jr., was again
named to the post of secretary of the
Association.

At the election of officers of the
South Dakota division of the American
Bankers Association, Tom N. Hayter,

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Federal Reserve Bank of St. Louis

vice president of the First National
Bank, Sioux Falls, was named to the
executive council. N. H. Thomson,
president Farmers & Merchants Bank,
Presho, is the member of the ABA
nominating committee, with alternate
A . G. Berger, president Deuel County
National Bank, Clear Lake. Vice presi
dents from South Dakota to the sev
eral ABA divisions are as follows;
National Bank—J. M. Patton, presi
dent Mitchell National Bank; State
Bank— Walter M. Willy, president Se
curity Bank & Trust Company, Madi
son; Savings and Mortgage— S. B.
Crothers, vice president Farmers &

Merchants Bank, Watertown; and
Trust—John MeQuillen, vice president
and trust officer Northwest Security
National Bank, Sioux Falls.
Attendance at this 1949 annual con
vention broke all records. Nearly 409
were signed up early during the twoday meeting, and close to 500 attended
the banquet and stage show which
closed the affair. Orchids to Secretary
Bahmeier for his interesting and bril
liant speakers and top-notch entertain
ment on the fun side, all blending into
a smooth and well organized conven
tion.
Nort hwest ern Banker, June, 1949

iliis i

Ifc

î=b.

A
«*\

m m

m S m

A t th e South Du h ot a Couvontion
1—
Lawrence J. Berry, assistant cashier First National Bank,
Chicago; and Al Junge, assistant cashier Northwestern National
Bank, Minneapolis.
2—
Norma Lockwood, left, assistant to the secretary of the
South Dakota Bankers Association, puts a convention badge on
E. W. Engstrom, assistant vice president Midland National

Organization of a 40-Year Club was
completed at the Aberdeen meeting,
and those bankers present who had
completed forty years or more in
South Dakota banking were presented

SERVICE
Maintaining an inti
m a te , p e r s o n a liz e d
correspondent

serv-

EXPERIENCE
Officials with years of
service in this field,
a ssu rin g a k n o w l
edge o f requirements
and valuable assist-

POLICY
T o c o o p era te w ith
o u t -o f-t o w n b a n k s
rather than compete
for business which is
rightfully theirs.

Public National
Bank

and Trust

Company

o f New York
Established 1 90 8
'M em b er: N e w York Clearing H ouse Association
Federal D eposit Insurance Corporation

V /:■

Bank, Minneapolis, under the supervision of Bertha Larson of
the First National Bank, Aberdeen.
3—B,ex Terry, cashier Fort Pierre National Bank; and lieuten
ant governor of South Dakota; Karl Goldsmith, president Fort
Pierre National Bank; and Jim Lloyd, vice president American
State Bank, Yankton, and immediate past president of the South
Dakota Bankers Association.

with gold pins. Recognition will be
accorded those attaining the forty-year
status each year from now on.
Those honored at this 1949 meeting,
with their years of service, were
Bert Morgan, Watertown, 54; A. J. Har
rington, Colman, 48; Frank Subtle,
Hecla, 48; G. E. Hanson, Watertown,
47; G. E. Lane, Hecla, 47; L. T. Morris,
Watertown, 47; L. L. Branch, Pierre,
46; Henry Frick, Gettysburg, 43; Henry
Gross, Bowdle, 43; R. D. Goepfert,
Watertown, 43; Mike .1. Twiss, Doland,
43; C. T. Coyne, Emery, 42; Walter
Frei, Wagner, 42; John F. Holdhusen,
Ipswich, 41; Ross Richardson, Gettys
burg, 41; H. T. Gerhard, Plankinton,
40; L. Roy Klatt, Tripp, 40; .1. J. Smith,
Marion, 40; J. R. McKnight, Pierre:
Charles Christen, Roscoe; Charles E.
Barkl, Huron, and Louis Jarmuth,
Miller.
At a special luncheon held the sec
ond day of the meeting, the honored
guests were South Dakota Governor
George T. Mickelson, Selby, banker;
Evans Woollen, president of the Amer
ican Bankers Association; .1. M. Lloyd,
Yankton, vice president American
State Bank and president South Da
kota Bankers Association; Tom Harkison, Sioux Falls, president National
Bank of South Dakota, and president
elect of the South Dakota Association:
O. B. Jesness, chief agricultural eco
nomics, University of Minnesota; Dr.
George S. Benson, president Harding
College, Searcy, Arkansas; and Rich
ard Trefz, president Beatrice State
Bank, Beatrice, Nebraska. The last
three were speakers on the program.

Among resolutions adopted by the
convention were the following:
‘ We recommend that the officers of
the Association take necessary action
in the effort to urge Congress of the
United States to increase the interest
rate allowed banks on C. C. C. loans.
“ Recognizing the constant encroach
ments into the field of private lend
ing by certain government agencies
beyond their line of duty, we feel that
all Federal agencies should be urged
to confine their services to the fields
of emergency for which they were
created. It is further recognized that
the Farm Home Administration in our
state has of recent years been so con
ducting its affairs, and should be com
mended for so doing; and should be
urged to continue such a policy.”—The
End.

To London M eeting
H. J. Devereaux, vice president of
the Rapid City National Bank in Rapid
City, South Dakota, went to London,
England, last month for a conference
attended by representatives of the In
ternational Wool Secetariat, and the
American Wool Council. Mr. Dever
eaux is president of the latter group.
Mrs. Devereaux accompanied her hus
band.
The purpose of the London confer
ence was to join the American Council
promotional activities with the domin
ion’s Secretariat, composed of Aus
tralia, New Zealand and South Africa,
in a “Wool Bureau” organization for
the purpose of promoting greater use
of wool throughout the world, through
scientific research, advertising and oth-

' +-■

THE NATIONAL BANK OF SOUTH DAKOTA
Sioux Fallss

Huron
Member Federal Deposit Insurance Corporation
N o r t h w e s t e r n Danker, J u n e ,

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Federal Reserve Bank of St. Louis

1949

•

Vermillion

Affiliated with F IR ST B A N K STOCK CORPORATION

South Dakota News
er promotional work. This conference
in the middle of the month was fol
lowed by a second conference the lat
ter part of May in New York City.

64 Y e a rs a Banker
E. H. Benedict, one of the oldest
residents of Milbank, South Dakota, in
point of years actually lived there,
achieved a rare distinction recently
when he completed 64 years as a
member of the staff of the First Na
tional Bank of that city.
Mr. Benedict started work in the
bank when he was 16 years old. Dur
ing the past 64 years he has taken
few vacations and has missed only a
few days from his desk. He is on the
job full time regularly, which means
that to him work is a pleasure, and
he probably feels sorry for those for
whom it is not.

O pen Title Com pany
The South Dakota Abstracters Board
of Examiners last month granted a
license to the Huron Title Company to
engage in the business of abstracting
the titles to real estate. The new con
cern, officered by George M. Starring
and Herbert A. Heidepriem, is located
on the second floor of the Farmers and
Merchants Bank Building in Huron.
According to Mr. Starring, who will
manage the firm, the Huron Title Com
pany has the latest equipment for an
office of this kind, including micro
film copies of the register of deeds
records and an elaborate 10 volume
printed index to the film. Filming the
county records and preparing the in
dex was a three months’ job.
Mr. Heidepriem is a graduate of the
University of South Dakota Law
School and has been practicing law
in Miller the past year. During World
War II he served in the European
Theater. Mr. Starring is a graduate
of the University of Minnesota School
of Business and for 12 years was sec
retary-treasurer of the South Dakota
Bankers Association. He served in the
South Pacific during World War II.

Install T e le ty p e
In order to establish better service
for the many customers who buy
stocks the First National Bank of the
Black Hills of Rapid City, South Da
kota, has installed teletype machines
in the Deadwood and Lead offices, it
was announced last month.
Twice-daily reports on the market
of long lists of common stocks will
be received.

tion as cashier of the Live Stock State
Bank at Artesian, South Dakota. Boyd
Hopkins was appointed to the position
of cashier of the institution.
Mr. Deam plans on staying on the
job until July 1st in order to assist
Mr. Hopkins in becoming familiar
with his new duties.

Com m encem ent S p ea k er
L. L. Lillibridge, president of the
Burke State Bank at Burke, South
Dakota, was the commencement speak
er at graduation ceremonies of South
ern State Teachers College in Springfield last month. Mr. Lillibridge is a
state representative from Burke and

long has been interested in education.
He is widely known in South Dakota
as a prominent speaker.

Hom er L. Jo n es
After a heart attack at his home,
Homer L. Jones, 61, died in a Sioux
Falls, South Dakota, hospital recently.
He had been in poor health for about
a year and a half.
Assistant cashier at the First Na
tional Bank and Trust Company in
Sioux Falls 41 years, he had also been
secretary to U. S. Senator Kittridge
before becoming associated with the
bank.
Mr. Jones was born July 4, 1887, at

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

NORTHWEST SECURITY
NATIONAL BANK
of S i o ux F al l s , Sout h Dakot a
South Dakota’s Leading Rank
April 1 1 , 1 9 4 9

RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and Bankers.............................$ 9,940,710.47
U. S. Government Obligations............................... 18,602,398.42
State and Municipal Bonds.................................... 1,033,338.11
Other Bonds and Securities.....................
1,136,368.46
$30,712,815.46
Stock in Federal Reserve Bank in Minneapolis.............................
45,000.00
Loans and Discounts ...........................
10,654,821.32
Commodity Credit Corp., Grain Loans........................................... 2,055,831.51
Banking Houses .............................................................................
228,839.00
Includes B anking Houses at Sioux Falls, B rookings, Chamberlain, Dell
Rapids, Gregory, Huron and Madison, all clear o f encum brance.

Interest Earned but not Collected..................................................
Customers’ Liability on Letters of Credit......................................
TOTAL

................................................................................ $43,892,698.78

LIABILITIES
Capital Stock— Common ........................................
Surplus .....................................................................
Undivided Profits and General Reserves..............

500,000.00
1,000,000.00
431,856.82

Reserve for Interest, Taxes, and Other Expenses.......................
Interest Collected but Not Earned.................................................
Deposits:
Time ............................................
7,367,824.52
Demand ........................................................... 33,075,683.51
U. S. War Loan............................................... 1,237,362.23
Letters of Credit...............................................................................
TOTAL

175,578.99
19,812.50

$ 1,931,856.82
195,970.97
64,188.23

$41,680,870.26
19,812.50

................................................................................$43,892,698.78
BRANCHES

BR O O K IN G S, C H A M B E R L A IN , D E L L R A P ID S,
GR EGO RY, H U RO N , M A D ISO N

Resigns at A rtesia n
At a directors’ meeting last month,
James I. Deam tendered his resigna

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Affiliated w ith N orth w est Bancorporation
M e m b e r F ederal D ep o s it Insurance Corporation

Nort hwest ern Banker, June, 1949

South Dakota News

S io u x F u lls N e w s

Janesville, Wisconsin. When he was
a boy, his family moved to Canton,
where he was educated. He first
joined the staff of the Minnehaha Na
tional Bank and in 1908 went to the
First National Bank.

A. BRAY, assistant cashier of

R etires at W a te rto w n

. the Northwest Security National
Bank, was installed as, recorder by
two local Masonic groups — Alpha
council No. 1, Royal & Select Masters,
and Cyrene Commandery No. 2,
Knights Templar.

Gust E. Hanson, assistant cashier of
the First Citizens National Bank in
Watertown, South Dakota, has retired
after 47 years of service. He and his
wife will continue to reside in Watertown.

Harry B. Hoffman, teller at the
First National Bank & Trust Com
pany, was appointed to fill a vacancy
on the board of directors of the Junior
Chamber of Commerce. Mr. Hoffman,

/P artea/

a Jaycee for six years, has been promi
nent in many of the organization’s
activities here.
1
H. O. Engrn, vice president and

cashier of the Union Savings Bank,
was appointed to the city board of
health by Henry B. Saure, the city’s
newly elected mayor.
Homer E. Jones, 61, assistant cash
ier of the First National Bank &
Trust Company, died at his home after
being in poor health for about 18
months. Engaged in banking here
for 41 years, he had previously been
secretary to U. S. Senator Kittridge of
South Dakota. He joined the staff of
the old Minnehaha National Bank,
later the First National, in 1908. A
native of Janesville, Wisconsin, Mr.
Jones spent his boyhood in Canton,
South Dakota. Surviving are the
widow, a daughter, a granddaughter,
two brothers and two sisters.

Sioux Falls bank clearings, which
in April, 1948 w e r e $24,610,699,
amounted to $21,623,084 in April of
this year. The decline was 12 per
cent.

In an encounter with
bandits, far up China’s
Yangtze River, two Ameri
can travelers were robbed
of everything except a
packet of American Express
Travelers Cheques . . .
Because they desperately
needed food, dubiously they
offered a $20 cheque to
an ancient Chinese
merchant. His face burst
into a grin. “Number One
money!” he cried.

Tony Westra, agricultural and live
stock representative of the Northwest
Security National Bank and Stanley
D. Morrill, who holds a similar posi
tion in the National Bank of South
Dakota, were elected directors of the
Sioux Falls Farm Forum. The Forum
consists of local men who own farms
and meet regularly to discuss approved
farm practices.

'r~-

(.Reprinted, from A-pril 19f9
issue of CORONET)

This is just one of many instances in our files . . . No wonder
American Express Travelers Cheques are the most widely
accepted cheques in the world!
At home and abroad, 168 offices in 125 key cities enable

Most of the people working in offices
in the National Bank of South Dakota
Building were puffing hard by the
time they reached their offices one
morning lately. The two elevators in
the nine-story building, the city’s tall
est, were out of order for several hours
because of a “short” in power cables.
Being on the ground floor, the bank
itself was not affected by this disrup
tion in elevator service.

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Nort hwest ern Banker, June, 1949

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Federal Reserve Bank of St. Louis

E. J. Sievers, a director of the Wi
nona National and Savings Bank in
Winona, Minnesota, has been reap
pointed a member of the Latsch me
morial board. The term of reappoint
ment is for four years.

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Elected D irector
F. C. Larson, prominent retail mer
chant in Warren, Minnesota, has been
elected a director of the State Bank
of Warren, it was announced last
month by President R. J. Schirber.

The

N orth D akota i 'on rent ion
Minot Is H ost to Annual M eeting
On F rid a y and S a tu rd a y , June 17 and 18
The Program
Friday June 17th
A. M.
9:00 Registration opens.
Tour to Garrison Dam site on
Missouri River, sixty miles south
of Minot. Return to Minot not
later than 1 p. m. Transporta
tion will be furnished by Minot
bankers to all those desiring it
and making reservations.
Golf tournament at Minot Coun
try Club. Players may start any
time up to 3 p. m. Fill in golf
reservations blank and mail to
committee chairman in advance,
if possible.
P. M.
5:00-6:30 Social h o u r at Clarence
Parker Hotel.
7:00 Dinner—Clarence Parker Hotel.
9:00 Dance.

Saturday, June 18th
Convention opens at Clarence Park
er Hotel with address of President at
9:45 a. m.
Program of interesting speakers, in
cluding the president of the American
Bankers Association, Evans Woollen,
Jr., R. M. Evans, Federal Reserve
Board of Washington, D. C., Alonzo
Petteys, Brush, Colorado, and member
of Country Bank Commission of
American Bankers Association, Ray
Dobson of the Minot Daily News, who
is now on a tour of Germany, and will
have a firsthand account of condi
tions over there.
Adjournment at 4 p. m.

Garrison Dam Tour
Friday, June 17th, the first thing
on the program is a tour to the Gar
rison Dam Site on the Missouri River.
This project is now reaching such pro
portions that it is really something to
see. The caravan will leave Minot
at 9 a. m. on Friday, June 17th, and
return to Minot not later than 1 p. m.
on the same day.

Ladies' Entertainment
A ladies committee in charge of
Mrs. Harry M. Grant of Union Nation
al Bank has made plans for entertain
ment of lady guests. They are not
only welcome but are cordially invited.

Meeting of Members
American Bankers Association
There will be a meeting of the mem

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Federal Reserve Bank of St. Louis

bers of the American Bankers Asso
ciation in Minot, on June 18, 1949, at
11:30 a. m. for the purpose of electing
the following:
Member of the ABA Nominating
Committee who will serve at the ABA

1949 San Francisco convention.
Alternate Member of
Nominating Committee.

the

ABA

State Vice Presidents for the follow
ing divisions who will serve one Asso
ciation year from the date of the an
nual division meeting held during the
ABA 1949 convention:
National Bank Division
Savings & Mortgage Division
State Bank Division
Trust Division

Slope Bankers M eet
Bankers from seven western coun
ties, Dunn, Billings, Stark, Morton,
Bowman, Golden Valley and Hetting
er, met recently in the First National
Bank Building in Dickinson, North
Dakota, for a regular meeting of the
Slope County Bankers Association.
Banking problems and procedures
were the main discussion topics.
J.
O. Severtson, cashier, Bank of
Killdeer, is the association president.

A ugust Peterson
August Peterson, 83, pioneer North
Dakota banker and farmer, died re
cently in Omaha where he had been
living for several months after leaving
Harvey, North Dakota.
Born in Sweden November 29, 1865,
he came to Dakota territory as a youth
in 1883.
In 1887 the Bank of Minot was es
tablished and Mr. Peterson entered its
employ.
Mr. Peterson also acted as cashier
at the First Bank of Leeds, North Da
kota. He held extensive cattle and
ranching interests near Minot. With
a partner he opened a hardware store
and built the first brick building in
Minot. He was a banker and merchant
for two years at Devils Lake.
He left North Dakota for a few years
in the 1890’s, visiting Sweden, Canada
and Alaska.
Returning in 1899, he located at Har
vey, organizing the first bank there.

ARNE GREGOR
President, Farm ers State Bank, Leeds
President, N orth D akota Bankers Assn.

A year later he formed the First Na
tional Bank at Harvey.
Five years later he sold out but took
up other banking interests in western
North Dakota. At one time he was
president of eight national and three
state banks.
Mr. Peterson retired from active
banking in the early 1930’s, maintain
ing land and other interests.

Stock Increases
The North Dakota state banking
board has authorized the following
banks to amend their articles of in
corporation to increase common stock:
Peoples State Bank, Parshall, $25,000
to $50,000.
Farmers State Bank, Richardton,
$30,000 to $50,000.
An application for renewal of cor
porate existence of the Union Bank,
Halliday, for 25 years also was ap
proved.

O pen House at G rafton
Officials and employes of the Grafton
National Bank of Grafton, North Da
kota, held an open house last month
in recognition of completion of an
addition to the building and an ex
tensive redecorating and refurnishing
program.
The bank is the oldest financial in
stitution in Walsh county. Organized
in 1881, the bank has served Grafton
almost 70 years.
Officers are A. C. Idsvoog, president;
R. D. Harkison and Martin Monson,
vice presidents; D. M. Upham, cashier,
and Hazel Johnson and L. E. Thalberg,
assistant cashiers.
Directors are Mr. Idsvoog, Mr. Up
ham, Mr. Monson, Carl Hvidsten, Mr.
Grafton and J. I. Hegge, Hillsboro.
Nort hwest ern Banker, June, 1949

58
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er.

For 93 Years
SOUND BANKING SERVICE

CL
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pp
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Correspondent Facilities

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MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
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Nort hwest ern Banker, June, 1949

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Federal Reserve Bank of St. Louis

\ebraska

XE W S
J. R. KENNER
President
H e b ro n

CARL G. SW ANSON
Secretary
Omaha

H ea d s Group Four

So lve Bank R obbery

E. E. Jackman, president of the
Farmers National Bank at Grant, Ne
braska, was elected president of Group
Four of the Nebraska Bankers Asso
ciation at the recent meeting in Hast
ings. Group Four consists of 21 south
western Nebraska counties.

The burglary of the State Bank of
Riverdale, Nebraska, on October 19,
1948, has been solved.
Buffalo County Sheriff Lloyd Frank
said Dale Clark, a farm boy, admitted
entering the bank and also a number
of break-ins in Kearney.
The bank break-in netted $260 in
cash and the contents of two safety
deposit boxes, which included several
thousand dollars’ worth of postal sav
ings bonds and U. S. war bonds.
Sheriff Frank said Clark led him and
Police Chief Thurston Nelson to a
garage on the Clark farm where one
of the safety deposit boxes, containing
the bonds from both boxes, was con
cealed under the floor.
The sheriff quoted Clark as saying
he entered the bank vault when he
accidentally discovered the correct
combination on the lock.

Nam ed V ice Presid ent
Millard M. Martin has been elected
vice president of the Security State
Bank of Allen, Nebraska, to fill the
vacancy caused by the resignation of
W. T. Connell.
Mr. Connell has served as vice pres
ident in all but one of the years since
the bank was opened for business in
January, 1944. He will remain on the
board of directors.
Mr. Martin, who has been cashier
since the bank’s organization, will
serve in the dual capacity of cashier
and vice president.

N ebraskan Buys Bank
Announcement has been made of the
sale of The Eaton Bank of Eaton, Colo
rado, to C. L. Larsen of Kimball, Ne
braska. Mr. Larsen was for some
years engaged in the banking business
in Nebraska, but for the past few
years has been one of the most ex
tensive wheat growers of Kimball ter
ritory.
Mr. Larsen has already taken charge
and has been elected president. His
family will move to Eaton as soon as
suitable living accommodations can
be found.
Ralph E. Misko, former president
and principal owner of the bank, will
remain with The Eaton Bank for some
weeks. His plans for the future, al
though quite definite, are not yet ready
for publication. Mr. Misko, formerly
identified with The First National
Bank of Omaha, Nebraska, has been
executive manager of The Eaton Bank
since 1944.
The Eaton Bank has capital of $25,000, surplus of $50,000, undivided prof
its of $50,000, reserves of $25,000 and
deposits of about $2,000,000.
All parties to this transaction were
represented by Charles E. Walters
Company, bank stock dealers of Oma
ha, Nebraska.

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Federal Reserve Bank of St. Louis

president of the City National Bank in
Hastings, was the principal speaker.
He toured Europe recently, including
a trip into Italy.

Legion C an d id ate
Lyman M. Stuckey, cashier of the
Lexington State Bank, Lexington, Ne
braska, has the endorsement of Lanning Post 111 of Lexington as a candi
date for 1949-50 department command
er, to succeed R. F. McNamara of Lin
coln.
Mr. Stuckey is a past commander of
the Lexington Post and has been ac
tive in Legion circles since the end of
World War II. He served 26 months
as a lieutenant in the amphibious
forces of the Navy.

R e-elected to Top Post
Christopher J. Abbott, Hyannis, Ne
braska, rancher and banker, again
holds one of the top posts in the United
States Chamber of Commerce.
Mr. Abbott was re-elected a vice
president at the organization’s annual
meeting in Washington last month. He
has been a director several years and
chairman of the Chamber’s agricul
tural committee.
He is president of the Bank of
Hyannis, among other Nebraska banks.

Rem odeling at Allen

The Security State Bank of Allen,
Nebraska, has started a remodeling
M oves to G rafton
and enlargement program on its pres
C.
M. Stenberg, cashier of the Crof- ent quarters. A sixteen-foot addition
ton State Bank, Crofton, Nebraska, re is being built at the rear of the present
cently resigned his position to go to building. The old quarters are being
Grafton, Nebraska, to act as cashier in rearranged and remodeled to better fit
the Grafton State Bank. Mr. Stenberg the progressive needs of the bank’s
has been with the Crofton State Bank business. The ceiling is being lowered
since its opening in 1946.
and soundproofed and new lighting
and a new heating plant are being
Falls C ity Bank H ost
installed.
The First National Bank of Falls
City, Nebraska, last month was host
to 60 local and out-of-town bankers at Sponsor Plane Trips
Eighty-four farm men and women
a fish dinner and entertainment at
of
Jefferson county, Nebraska, saw
Camp Rulo.
Guests were bankers from Omaha, their soil conservation work from the
Kansas City, St. Joseph, Lincoln, air recently.
Through the cooperation of the soil
Plattsmouth, Nehawka, Pawnee City,
conservation
district and the First Na
DuBois, Auburn, Hebron, Alliance, Sa
tional Bank of Fairbury, the air trips
lem, Stella and Holyoke, Colorado.
Following dinner, the bankers were were made possible. The trips took
entertained by the Lions Club quar two and three farmers at a time up in
planes to view their own farms. The
tette.
E. H. Towle, president of the First winning conservation farms in Jeffer
National Bank, gave an interesting son county last year were also viewed.
talk to the bankers on the history
L e a v e s Falls C ity
of Falls City.
Virgil Vickery, employed as an as
sistant cashier at the First National
R eports on Italy
Members- of the Kearney, Nebraska, Bank in Falls City, Nebraska, has re
Kiwanis Club, at a recent weekly signed to take a position with the
meeting heard firsthand reports on Veterans Administration at Wads
worth Hospital in Leavenworth, Kan
conditions in Italy.
William J. Crockett, assistant vice sas.
Northwestern Banker, June, 1949

Y
Herbert Meile, vice president, Doug
las County Bank of Omaha, is chair
man of the publicity committee of the
Benson Commercial Club, which is
publishing a booklet containing the
history of Benson, Omaha suburb,
and its business firms.

h
•J. Francis McDermott, vice presi

J AMES B. OWEN, who remembers
when one of South Omaha’s lead
ing banks had only one adding ma
chine, completed 50 years of banking
service recently.
But, at 73, Mr.

He first went to work in the transit
department of the old South Omaha
National Bank.
“We had to stand in line to use the
adding machine,” he recalled. “The
tellers had first crack at it. The rest
of us just had to wait.”
The South Omaha National Bank
was consolidated with the Union
Stock Yards National Bank in 1911
and the name became the Stock Yards
National.
Mr. Owen has held almost every
position in the bank.
W. Dale Clark, chairman of the
board of the Omaha National Bank,
was re-elected a director of the Union
Pacific Railroad at a stockholders’
meeting in Salt Lake City, Utah, re
cently. Fifteen directors were re
named, including Arthur E. Stoddard,
recently elected Union Pacific presi
dent.
E. Ronald Harriman, New
York, is chairman of the board of di
rectors.

J A M E S B. O W E N
Chairman, Stock Yards N ational, Omaha
“ C om pletes 50 years of ban king”

Owen isn’t giving a thought to re
tirement. He is chairman of the
board of the Stock Yards National
Bank in South Omaha.
He said: “ The job is just as inter
esting now as it was in 1899.”

Arthur L. Coad, president of the
Packers National Bank of Omaha, was
toastmaster at a civic welcome lunch
eon held in Omaha recently for Fran
cis Cardinal Spellman of New York.
The cardinal came to Omaha to dedi
cate the new building at Father Flan
agan’s Boys Town, 10 miles west of
Omaha. The luncheon brought to
gether Omahans of all creeds with
state and church leaders. Governor
Val Peterson of Nebraska was a guest.

dent of the First National Bank of
Omaha, past Nebraska commander of
the American Legion and a Repub
lican party leader, praised the selec
tion of Democrat Francis P. Mat
thews, Omaha attorney and national
Catholic lay leader, as Secretary of
the Navy.
Mr. McDermott said: “ I doubt if
there is another man in the United
States with the moral, professional
and business qualifications of Mr.
Matthews.”
The Live Stock National Bank of
Omaha was among the purchasers of
four lambs, which were sold and re
sold on the Omaha Livestock Ex
change auction block recently, to raise
funds for the American Cancer So
ciety drive in Omaha. The auction
netted $1,025.
The Live Stock National bought two
of the lambs at $200 each at the first
auction.
Donated by W. J. Foxley and Thell
Brothers, Omaha livestock men, the
four purebred Cheviots brought a
total of $730 at the first sale. The
lambs then were given back to Auc
tioneer James Walker, who resold
them for an additional $295.
On the second round, the Live Stock
National again bought a lamb, for $25.
M. M. Meyers, Omaha investment
broker, described “Traffic and Park
ing Problems in Omaha” at a lunch
eon recently of the Omaha Optimist
Club, at the Fontanelle Hotel. He
served on Omaha committees which
investigated such problems.

A
Russell J. Hopley, president of the

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N o r th w e s t e r n B anker, J u ne, 1949

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Federal Reserve Bank of St. Louis

MILTON TOOTLE

FRED T. BURRI

PRESIDENT

CASHIER

R. E. WALES

GRAHAM G. LACY

VICE PRESIDENT

CH. OF THE BOARD

Nebraska News
Mr. Slocum had been associated
with the investment banking firm of

Northwestern Bell Telephone Com
pany, with headquarters in Omaha,
has recovered from a recent illness.
He was stricken while attending a
board meeting of the Nebraska Sav
ings and Loan Association, of which
he is a director. He spent several
days in a hospital.

Burns, Potter & Company at Omaha
for 20 years and was vice president

Common stockholders of the North
ern Natural Gas Company of Omaha
oversubscribed a recent offering of
additional stock by 198,809 shares, ac
cording to President B. R. Bay. He
stated that 599,809 shares were sub
scribed. Only 406,000 shares had been
offered on the basis of one additional
share for each five shares held.
The oversubscription amounted to
47.7 per cent. Available shares were
to be pro-rated. The offering price
was $29.50 per share.
The claim of two brothers to a share
of the estate of the late Hugo Brandeis, former Omaha department store
operator, has been settled for one
million dollars in cash. The settle
ment ended a legal dispute over Mr.
Brandeis’ will.
Last fall, the Nebraska Supreme
Court upheld the claim of the two
brothers, Walter Brandeis and Loyal
B. Cohn, to a share of the estate. Their
share was a small portion of the
Brandeis Store stock. Conversion of
the stock into cash has now been
agreed upon, according to Omaha
legal counsel representing the two
brothers. '
Cecil W. Slocum has been appointed
Omaha manager of Cruttenden &
Company, stock, bond and commodity
firm with memberships on the New
York Stock Exchange and other ex
changes.

BANKS

w ith

Conveniently near Kansas City’s Board of Trade
Building, City National presents grain drafts for
collection promptly. In Kansas City, speedy messenger
service is used . . . out of town, our years ahead
correspondent facilities.
Y ou ’re invited to route grain and other drafts to
City National for quickest collection.

ESTABLISHED 1913
MEMBER FEDERAL DEPOSIT
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More and more bankers are turning to
City National for handling of grain drafts. The
reason is that City National is especially well suited,
through location, years ahead facilities, alert
personnel and "grain-wise” outlook, to give fast,
efficient service.

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NATIONAL BANK
E. H. SCHOPP

E. L. CRUME

ASST. VICE PRES.

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Federal Reserve Bank of St. Louis

ASST. VICE PRES.

MILTON TOOTLE, JR.
ASST. CASHIER

GILBERT TOOTLE
ASST. CASHIER

ST. JOSEPH, MO.

A. E. LA BOUFF
AUDITOR

M em b er Federal D ep osit
Insurance

N orthw estern

Corporation

Ban ke r, J u n e ,

1949

Nebraska News

of that firm when he joined Cruttenden & Company with offices in the
Brandeis Theater Building.
Mr. Slocum is vice president and
manager of the Omaha Symphony Or
chestra, a member of the advisory
board of the Salvation Army at
Omaha, and a former president of the
Omaha Junior Chamber of Commerce.

to more than $4,000,000. Only one
dividend has been paid since 1927.
No dividend has been paid on the
$4,920,000 outstanding common stock
since 1918. It now sells at $1.25.
Current market value of all pre
ferred and common stock would be
about $1,000,000, Mr. Purdham stated.

to date is still slightly below the same
period last year.
Bank clearings for April, 1949, were
$32,461,397, compared to $28,726,245 for
April, 1948.
Totals for the first four months:
1949, $114,343,806; 1948, $114,523,060.

Resigns at Brainard Bank
Harold Polian, Smith, Polian and

At the hearing in Omaha, on ap
plication of the Omaha and Council
Bluffs Street Railway Company for a
fare increase to 15 cents, the second
increase proposal recently, gyrations
of the company’s stock were described,
by Plummer P. Purdham, Omaha in
vestment banker.
The 5 per cent preferred stock sold
for $75 to $90 a share in 1920 and then
dropped after the advent of the auto
mobile to a low of 25 cents in 1936.
Total preferred stock outstanding is
$3,985,000. Unpaid dividends amount

Company, Omaha, is the new presi
dent of the Nebraska Investment
Bankers Association.
Other new officers are Ferdinand G.
Smola, N. Harold Sears, Cecil AV.
Slocum, Warren D. Chiles, Raymond
E. McGrath and John AAT. Redelfs, all

of Omaha.

Lincoln C learin g s Up
Lincoln bank clearings for April
were up nearly $4,000,000 over a year
ago, but the total of clearings for 1949

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Experienced Staff . . .
Specialized Facilities . . .
In Lincoln Territory,

Ernest J. Bruner, who has been em
ployed at the Bank of Brainard, Ne
braska, since 1943, has resigned his
position as assistant cashier. He has
been succeeded in the bank by Stanley
J. Sedlacek.

O pen House at Colon
Officers and directors of the State
Bank of Colon, Nebraska, held open
house recently in observance of the
bank’s 50th anniversary of founding.
Officers of the bank are John Murren, president; Victor Franson, vice
president, and A. F. Vasina, cashier.
In addition to these three men, Lloyd
Koutny and Art Rasmussen also are
directors.

A ttend Feed er's Program
The Central National Bank of Co
lumbus, Nebraska, and the Columbus
Sales Pavilion recently sponsored a
chartered bus trip to Lincoln for 30
Platte county farmers. They attended
the 37th Annual Feeder’s Day Program
at the University of Nebraska Agri
cultural College.

Rem odel Fa irb u ry Bank

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(ONTINENTAL RATIONAL

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Nort hwest ern Banker, June, 1949

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Federal Reserve Bank of St. Louis

The Fairbury State Bank, Fairbury,
Nebraska, has been undergoing a re
modeling job that is now practically
completed. This was started nearly
a year ago when the ceiling was low
ered and an air conditioning system
installed.
More recently the interior of the
bank has been rearranged allowing for
more room made necessary by increas
ing business. The cages have been
changed, the top parts removed and
the low type fixtures of solid walnut

Nebraska News
put in. The walls have been com
pletely decorated.
New equipment has been added, in
cluding new modern posting machines.

call report of April 12, 1948. Banking
Director J. M. McLain said the call
reflects generally a healthy condition
of business throughout the state.

dent of the board of managers of the
Presbyterian Hospital at their annual
meeting last month.

H ea d s D istrict Bankers
Lincoln A .I.B . Dinner

S ta rt N ew A ddition

Leroy Lewis, national educational
director for the American Institute of
Banking, recently addressed the an
nual banquet of the Lincoln Chapter
of the A.I.B.
The banquet marked the completion
of 15 years’ participation in A.I.B. edu
cational program for the Lincoln Chap
ter.

A new addition, 20 by 25 feet, has
been started at the rear of the Ameri
can National Bank Building in Creigh
ton, Nebraska. The structure will in
clude two rooms, one for bookkeeping
work and the other for a private office.
The building will be of brick and tile
construction.

A cce p ts Strom sburg Position

Prom otions

Warren Johnson has accepted a po
sition as assistant cashier at the
Stromsburg Bank, Stromsburg, Ne
braska. The position was left vacant
by the resignation of Richard Detimore.
Mr. Johnson is experienced in the
hanking business and is qualified to
take over his duties. He was em
ployed at the First National Bank at
Osceola before entering the armed
forces in World War II. He served
four and one-half years in the Medical
Corps.
On his return from service he was
transferred to the First National Bank
at Shelby, where he was cashier.
He is married and has two children.

The First National Bank in St. Louis
has announced the following promo
tions: Walter L. Schnepel, manager,
industrial service department, to as
sistant vice president, and Monroe
D. Mueller, new business department,
to assistant cashier.

H ea d s H osp ital Board
Philip R. Clarke, president of the
City National Bank and Trust Com
pany of Chicago, was re-elected presi

John H. Klug, vice president and
cashier, American National Bank and
Trust Company of Chicago, was elected
to the office of president of the Chicago
District, Illinois Bankers Association,
at its annual meeting held last month.
Other officers and members of the
board of governors elected are:
Vice president, Edward A. Hintz,
executive vice president, Southmoor
Bank of Chicago; treasurer, Frank C.
Rathje, president, Chicago City Bank
and Trust Company and The Mutual
National Bank of Chicago, and secre
tary, Margaret R. Hadley.
Board of governors: E. C. Burmeister, president, Lake View Trust and
Savings Bank; Eugene W. Kaspar,
president, First National Bank of
Cicero; William H. Miller, vice presi
dent, City National Bank and Trust
Company of Chicago, and B. J. Schnei
der, executive vice president, The Dis
trict National Bank of Chicago.

OFFICERS
G. E. Porter

Save Time and Money

C h a irm a n of th e B o a r d

J. A. Greenfield

O tto J. Melton

P r e s id e n t

A well-known Cheyenne county citi
zen, Otto J. Melton, 58, president of
the First State Bank in Lodgepole,
Nebraska, since 1934, died suddenly
last month at a Sidney hospital after
little more than a day’s illness.
Shortly after their marriage the
Meltons moved to Lodgepole where
Mr. Melton engaged in farming for
several years. He became president
of the First State Bank in 1934 and
held that office until his death.

You save both time and money by
sending your live stock, hay and
grain drafts and any collection item
on St. Joseph through the strong St.
Joseph Stock Yards Bank.

T. J. McCullough
V ic e P r e s id e n t

M. E. Blanchard
C a sh ier

L. J. Komer
A s sista n t C a sh ier

H. H. Broadhead, Jr.
A s s ista n t C a sh ier

D e crease in A sse ts
Total assets of Nebraska’s 283 state
banks are $392,360,168, the state bank
ing department reported last month.
This represents a decrease of $19,302,802 from the December 31st call,
but a drop of only $3,145,600 from the
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on the same night!"
You can set a date for our free Internal Operations

Survey by writing us today. Requests filled in order
received, regardless of the size of your bank.

LIVE

STOCK

OMAHA,

BANK

N E B R A S K A

The Bank of Friendly 2 4 - H o u r Servi ce
Member of Federal Reserve and Federal Deposit Insurance Corporation

Nort hwest ern Banker, June, 1949

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Federal Reserve Bank of St. Louis

V-

65
Stockholders were to meet May 28th
for formal ratification of the merger,
but this was expected to be in the na
ture of a formality as most stockhold
ers have already signed statements
agreeing to the consolidation.

1 o \v a

NEWS

Resigns at Carroll

H AR Ry W.

SCH ALLER

FRANK WARNER

President
Storm Lake

Tw o

Secretary
Des Moines

Waverlyit auks

LANS for a $6,000,000 consolidation
of the First National Bank and the
PWaverly
Savings Bank in Waverly,
Iowa, were announced recently by the
boards of directors of both banks.
The merger was to take place June 1st.
The First National Bank, estab
lished in 1864 as the first bank in
Bremer county, and the Wavely Sav
ings Bank, organized in 1902 by the
late W. H. Babcock, were principals
in the merger.
The new bank, operating under the
name and charter of the First Na
tional Bank of Waverly, will have
resources in excess of $6,000,000.
It will be housed in the present
Waverly Savings Bank building, the
newest of the two structures housing
the separate banks.
The merger has been approved by
both the comptroller of currency of
the United States and N. P. Black,
state superintendent of banking.
The new bank will have a capital
structure of $350,000, consisting of
$200,000 capital and $150,000 surplus
and undivided profits.
E.
G. Englebrecht, present head of
the Waverly Savings Bank, and H. C.
Nolting, head of the First National,
will be the executive officers of the
new bank. Mr. Engelbrecht and Mr.
Nolting are brothers-in-law.
The two present five-man boards of
directors will merge into one 10-man
board.
All officers and employes of the two
present banks wil be retained.
Extensive remodeling of the Sav
ings Bank building is planned. All
bookkeeping machines will be moved
to the mezzanine floor, leaving the
ground floor entirely for business
transactions.
Directors of the new bank will he
W. H. Wehrmacher, Mr. Nolting, J. G.
Easton. 'K. L. Bragdon and C. F.
Boeckmann, all directors of the pres

ent First National Bank, and E. H.
Meyer, J. D. Hemingway, Mr. Engel
brecht, H. C. Buhr and Arthur Zelle,
all present directors of the Waverly
Savings Bank.
The consolidation will result in no
inconvenience to customers of either
bank.
All checks, pass books and other
papers bearing the name of either
bank will be honored by the new bank
until present supplies are exhausted.
About 75 per cent of the stock in
the new bank is owned in Waverly.

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Federal Reserve Bank of St. Louis

B U I L D IN G

Hold Annual Conference
The 3rd anual Bankers’ and Busi
ness men’s Conference of Simpson
College was conducted early this
month in Indianola, Iowa. This Con
ference is sponsored by the Depart
ment of Business Administration of
the College.
John Noble, assistant comptroller
of Armour and Company, Chicago,
spoke on “Business Action Against
Depression.” His talk was followed
by a question period.

F lo w er R isp la y a t R a n k

Above are two of the exhibits displayed by the flower arrangement group of the
Des Moines Garden Club in the banking rooms and lobby of the Iowa-Des Moines
National Bank. The show is an annual event.
Pictured at the left is the display which won the sweepstakes award, prepared
by Mrs. Boyd D. Starks, of Des Moines. It is a spiral arrangement, using spring
flowers in a round container.
The other display received a special award in the artistic class, depicting a
hobby in flowers, by Mrs. L. I. Seddens. The arrangement was made to portray
the painting shown above.
Among the more than 12,000 persons visiting the bank during the flower show
was the son of the first president of the Des Moines National Bank, James H.
Wyman. The Des Moines National several years ago was merged with the Iowa
National Bank to form the present Iowa-Des Moines National Bank.

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

J. A. Heider, assistant cashier at
the Carroll County State Bank, Carroll, Iowa, has resigned. He has held
this position about four years.
Mr. Heider said he had no an
nouncement to make as to future
plans.

C H IC A G O

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

STATE

I to Banks

2 4325

Northwestern Banker, June, 1949

Iowa News

O. I. Bingaman, tax attorney for
Montgomery Ward and Company, Chi
cago, discussed “The Tax Situation—
Current and Future,” and his address
also was followed by questions from
the audience.
The third feature of the program
was a panel discussion on “The Gov
ernment Bond Market and Govern
ment Securities for the Small Bank’s
Portfolio.” The panel was composed
of Michael Dearth, Des Moines man
ager for Merrill Lynch, Pierce, Fen
ner and Beane; William Buxton, III,
president, Peoples Trust and Savings
Bank, Indianola; Will Lane, president,
Security Savings Bank, Marshalltown,
and R. K. McGee, executive vice

★

president, Clarke County State Bank,
Osceola.

Relief for Depositors
During concluding days of its 1949
session, the Iowa Legislature passed
Senate File 201 which gives relief to
bank depositors since the newly
amended law gives each person the
right to deduct $5,000 from the total
amount of moneys and credits, cor
poration shares or stocks held by him
and which are taxable under the Iowa
Moneys and Credits Law.
The amended law reads: “ In mak
ing up the amount of moneys and
credits, corporation shares or stocks
which any person is required to list,

★

Grain-Hay-Live Stock Items
Sioux City owes much of its greatness to livestock
and grain. Millions of dollars in livestock, grain and
hay pass through this great northwest market an
nually. The proceeds go to your own customers'
accounts.
This bank offers you skilled service on such items.
Our officers know every phase of the farm and live
stock business, and we guarantee your complete
satisfaction in our handling of your items in Sioux
City.

or to have listed or assessed, including
actual value of building and loan
shares, he will be entitled to deduct
from the actual value thereof the
gross amount of all debts in good
faith owing by him, and in addition
thereto an amount of five thousand
dollars.” Previously the section mere
ly read “money or credits,” did not
mention corporation shares or stocks
and ended with the word “him” .
During the past two years at the
end of December, depositors had made
wholesale withdrawals from banks
throughout the state to avoid taxes
on the money they had on deposit.
The Iowa Bankers Association’s legis
lative committee has been working
since enactment of the law in its
former form, to have it changed.

State Bank Changes
The following changes have taken
place in the status of Iowa chartered
banks:
Farmers Savings Bank, Colesburg,
increased capital stock from $18,000
to $27,000 by stock dividend.
Houghton State Bank, Red Oak, in
creased capital stock from $100,000 to
$150,000 by stock dividend.
State Savings Bank, Rake, increased
capital stock from $20,000 to $25,000
by stock dividend.
First State Bank, Lynnville, retired
RFC preferred stock of $6,000, issued
common stock dividend of $5,000 and
sold an additional $6,000 of common
stock making the total basic capital
$30,000 in common stock.

Increase Onawa Capital

A. G. SAM, Chairman of the Board
I. T. Grant, President

E. A. lohnson. Assistant Cashier

H. V. Bull, Vice President

H. H. Strifert, Assistant Cashier

W . L. Temple, Assistant Vice President

K. I. Shannon, Assistant Cashier

I. R. Graning, Cashier

E. E. Snell, Assistant Cashier

Vinat N A TIO N A L
BANK
in SIOUX CITY

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

★

Nort hwest ern Banker, June, 1949

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

★

Capital of the Onawa State Bank,
in Onawa, Iowa, has been increased
from $50,000 to $100,000. President
A. E. Muir announced the doubling of
capital stock after a recent stockhold
ers meeting.

Savings Bonds Report
Sales of series E savings bonds in
Iowa during 1948 exceeded redemp
tions of United States savings bonds
of the A through E series during the
same period by more than 60 million
dollars, according to State Director
Roger F. War in.
In a statement issued by Mr. Warm,
it was pointed out that total sales of
series E savings bonds in the state
for 1948 amounted to $160,896,791,
while total redemptions of series A,
B, C, D and E bonds amounted to
only $97,726,775.
Bonds in the A series were the first
issued by the treasury department in
1935 and were more commonly known
as the Baby bond. Many of the bonds
of the D series which were issued in
1939 are now reaching maturity.

I Government Securities |
I
and your Bank
|

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

HE management of the portfolio of United States Government

securities is a major job in every bank today. To 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 of many services we have been rendering banks
and bankers throughout the Middle West for over three-quarters of a
century. We shall be pleased to explain these services in more detail.

S T / ie

LIVE STO CK
BANK

f jia / io n u /

ESTABLISHED 1868

U N I O N S T OC K Y A R DS

M em ber Federal Deposit Insurance Corporation

Nort hwest ern Banker, June, 1949

Iowa News

Fiduciary Powers

T h ey S ta rtet! as

The First National Bank of Marion,
Iowa, has been granted fiduciary pow
ers by the board of governors of the
Federal Reserve Bank, according to
H. F. Lockwood, cashier.

(

Addressajjraph
S cw m g A ,
Some years ago Charles R. Gossett, president of the Security National Bank,
Sioux City, Iowa, started a personnel advancement plan in his bank. He would
start likely youngsters as messengers, keep giving them added duties and responsi
bilities, and as they showed they were capable, eventually put them in administra
tive positions, all working toward the time when present officers grew older and
wished to be relieved of some of their duties or retire. With younger men always
coming up through the ranks, this would be possible. Mr. Gossett’s plan is now
beginning to bear fruit.
Pictured above, from left to right, are four young officers of the Security
National Bank— D. L. Middleton, E. C. Thompson, Jr., and Paul Snyder, all assist
ant cashiers, and L. C. Jensen, assistant trust officer.
All starting as messengers, Mr. Middleton and Mr. Snyder came with the bank
in 1939, and Mr. Thompson and Mr. Jensen in 1911. All were in the service during
the late war, from two and one-half to four years, and of course all returned to
the bank. Mr. Middleton is in the real estate mortgage department; Mr. Thompson
is manager of the personal loan department; Mr. Snyder is associated with general
operations of the bank; and Mr. Jensen is in the trust department. All of them
are proving the value of Mr. Gossett’s planning.

Addressing by hand or
typewriter method costs
10 times as much as the
modern Addressograph
method.

Resigns as Cashier

Addressoqraph
TRADE M A R K R EG U S P A T O f f

mmmJ

OMAHA — DES MOINES
DAVENPORT

La Verne Paulson has resigned his
position as cashier at the Eagle Grove
National Bank, Eagle Grove, Iowa.
Francis Shadle, executive vice presi
dent and cashier of the bank an
nounced that Cecil Dunn, Dallas Cen
ter, has been appointed to the post of
assistant cashier. Previous to mov
ing to Eagle Grove, he worked in the
Brenton State Bank at Dallas Center.

"HIDDEN"
COLLATERAL
Field Warehouse Receipts issued by
WILLIAM H. BANKS WAREHOUSES,
INC., bring to light available inven
tory— CANNED G O O D S * * * SEED
or 1,001 other staple commodi
ties; thus providing desirable col
lateral to satisfactory bank loans.

SIMPLE

CONVENIENT

ECONOMICAL

Investigate today
D IV IS IO N

O F F IC E S

Des Moines, Iowa
if
St. Louis, Mo.
if
Madison, Wis.
if
Angola, Indiana
Grand Rapids, Mich.
if
Fayetteville, Ark.
if
Weslaco, Texas

WILLIAM H.BAM S WAREHOUSES

Joins Muscatine Bank
George Springborn was elected as
sistant cashier and trust officer of the
Muscatine Bank and Trust Company,
Muscatine, Iowa, recently and began
his duties there last month.
Mr. Springborn’s active business
career began with his appointment
as deputy county treasurer in 1932.
He served in that capacity until ap
pointed county treasurer in 1944. He
was elected and re-elected county
treasurer in 1945, 1947 and again in
March, 1949. Immediately following
his election to the position with the
Muscatine Bank and Trust, he re
signed the treasurer’s post, effective
last month.
Since he is a native of Muscatine,
Mr. Springborn is well known in that
community and the entire county.

Elected Cashier
C. A. Rowe, formerly of Wellman,
Iowa, was named cashier of the State
Bank of Prairie City, Iowa, at a meet
ing of the bank’s board of directors,
according to Harold Stoner, president
of the institution. Mr. Rowe succeeds
John R. Buckley, who was elected ex
ecutive vice president.

Name New Director
2 0 9 SO. L A S A L L E ST.. C H IC A G O . ILL.

Jicld lUtVielwn&e ReccifttA
B n id y iiit j,

B A N K IN G

Nort hwest ern Banker, June, 1949

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

THE GAP

and

B etu m een

IN D U S T R Y

Stockholders of the Jankson State
Savings Bank, Maquoketa, Iowa,
elected a new director at their meet
ing last month. He is L. S. Lein, who
succeeds the late M. D. McCarthy.
Lynn Fuller was re-elected president

A n n u iti flit»
BANKERS DISCUSS CURRENT PROBLEMS AT GROUP
MEETINGS held in Iowa the first half of May, including meet
ings at Council Bluffs, Grinnell, Ottumwa and Tipton.
At all of the meetings interesting talks were given by H. W.
Schaller, president, and Frank Warner, secretary, of the Iowa
Bankers Association.
N. P. Black, state superintendent of banking, appeared at all
of the gatherings except Council Bluffs, where he was repre
sented by Hugh R. Jackson, deputy superintendent.
Shown in the pictures reading from left to right are:

tìvn
Iowa Bankers Association; Helen Rhinehart, secretary to Harold
Brenton, president of the Brenton Banks; and Mrs. Lucille M.
Potts, assistant cashier Poweshiek County National Bank,
Grinnell.
4— C. C. Williamson, vice president, First Trust and Union
Savings Bank, Sigourney, and secretary of Group 10, and
George R. Garton, president of the First State Bank of Chariton,
and chairman of Group 10.

5— These are the three officers of the Cedar County Bankers
Association, including Dale H. Smith, executive vice president,
Tipton State Bank, vice president; Oliver Hansen, cashier, Lib
1— These four American beauties are all Belles from Bellevue,
erty Trust and Savings Bank, Durant, secretary-treasurer, and
and are Mrs. Eva Keane; Mrs. A. C. Schneider, whose husband
L. C. Rummells, cashier, First State Bank, West Branch, presi
is president of the First National Bank; Mrs. Herman J. Kuester,
dent.
whose husband is cashier of the First National Bank, and Mrs.
G. J. Bittner, whose husband is vice president of the First
6— Walter J. Otto, president, Walnut State Bank, and newly
National Bank.
elected secretary of Group 5; L. F. Kruse, president, Mineola
State Bank, retiring chairman of Group 5, and Cecil K. Cullings,
2— Charles W. Langmade, cashier, First National Bank,
president, Exchange State Bank, Exira, newly elected chairman
Council Bluffs, and general chairman of the Convention Com
of Group 5.
mittee for Group 6; E. W. Burdic, president, Malvern Trust and
Savings Bank at Malvern, president, Southwestern Iowa Bank
7— Harold F. Stoner, president; C. A. Rowe, cashier; and
ers Association, and Frank Warner, secretary, Iowa Bankers
Wiley A. Roberts, director, all of Prairie City State Bank; and
Association, Des Moines.
Dave Coffman, vice president William H. Banks Warehouse Com
3—
Dora Springer, secretary to Frank Warner, secretary of the pany, Chicago.

and L. S. Fuller was named instal
ment loan officer, all other officers
being re-elected.

County Officers Named
Webster county bankers elected of
ficers for 1949, made plans for a joint
Webster-Calhoun county bankers pic
nic at Twin lakes this summer and
heard a first hand account of the Jap
war crimes trials at their annual
meeting in Gowrie, Iowa, recently.
Speaker at the meeting was Owen
Cunningham of Des Moines, one of
the defense attorneys at the trials of
Tojo and other Japanese war crim
inals.
Following Mr. Cunningham’s talk
the bankers conducted their business

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

session and elected A. E. Lindquist,
Jr., assistant cashier of the First Na
tional bank of Gowrie as president;
A. O. Swasand, cashier, Farmers Sav
ings Bank of Vincent, vice president;
and Leo Jones, Fort Dodge National
Bank, secretary-treasurer. Retiring
officers are J. W. Ryberg, Harcourt,
president; Harry T. Huff, Fort Dodge,
vice president; and Peter Garatoni,
Lehigh, secretary-treasurer.
Tentative plans were drawn up for
a joint Webster and Calhoun county
bankers picnic to be held at Twin
lakes this summer.
All banks of Webster county were
represented at the meeting and there
were delegations present from neigh
boring counties and Des Moines.

Hudson Banker Resigns
Gordon Strayer has been appointed
director of the Hudson State Bank in
Hudson, Iowa, to fill the vacancy
caused by the resignation of John H.
Axon. Mr. Strayer was chosen at the
regular meeting of the board of direc
tors last month.
John Axon has been director and
vice president for the past 15 years.
Fred W. Andorf was elected vice
president to fill that vacancy. He is
a farmer northwest of Hudson.

Scott County Meeting
The Scott County Bankers Associa
tion elected A. H. Hiegel, vice presi
dent of Davenport Bank & Trust Com
pany, Davenport, as president of the
Nort hwest ern Banker, June,

1949

Iowa News
association at the annual meeting in
Davenport. He succeeds John Thede,
cashier of Dixon Savings Bank, Dixon.
Other officers named were B. F. Mc
Gee, assistant cashier, Northwest
Trust & Savings Bank, Davenport,
vice president; G. H. Suiter, assistant
cashier, Farmers Savings B a n k ,
Princeton, treasurer, and K. H. Dietz,
assistant cashier, Walcott Trust &
Savings Bank, Walcott, as secretary.

SPECIALIZED
SERVICE
TO
MIDWEST BANKS

/SankeM
L

RUBBER STAMP, INC.

421 Ninth Steeet

DES MOINES

W illia m

F. K lu e s n e r

William F. Kluesner, 67, president
of the Farley State Bank, Farley,
Iowa, and a prominent New Wine

township farmer, died recently after
a six week’s illness.
Mr. Kluesner was elected president
of the Farley State Bank in February,
1937, being elected to that position
after serving seven years as a board
member.
E lv e r a

D ie tl

Elvera Dietl, 39, assistant cashier
of the Farmers Trust and Savings
Bank in Buffalo Center, Iowa, was
found dead in her apartment last
month when neighbors failed to see
her after an absence of half a day.
It is believed Mrs. Dietl died of a
heart ailment.

S io u x C ity
HE Security National Bank is the

first Sioux City bank to install a
drive-in teller’s window. This new
banking service has just been an
nounced to the Sioux City public and
was scheduled to be put into opera
tion the first week of June.

Our Service
Yours to Command

The W ood bury County Savings
Bank’s annual picnic was held last

There's a basic reason for our helpful
and courteous service to correspond
ents. Simply stated, it is the result of
practical experience. For instance, our
officers know rural banking needs.
They know because they have had
years of experience in that field.

you're not acquainted with our serv
ice, we welcome the opportunity to
visit with you about it.

month at the Eagles picnic grounds
in North Riverside. There were 42
employes of the bank present for the
games, refreshments and late evening
dancing. W illia m Buck, assistant
cashier, was general chairman of the
affair.
Extensive remodeling has been com
pleted in the Morningside Savings
Bank.
Miss Jane Moline was chairman of
the program committee in charge of
the Security National Bank’s annual
picnic, held last month at the shelter
house in Stone Park. There were 55
employes present.
Mr. and Mrs. John Scott, Jr., re
cently flew to Tulsa, Oklahoma, to
visit their son. Mr. Scott is president
ox the Morningside State Bank.

H i's

'■NATIONAL BANK
o f < $ ¿ 0 1 4 # ' (¿ ¿ ¿ y
Member Federal Deposit Insurance Corporation

o in v s

OST Des Moines banks will elim
inate Saturday banking hours
during the months of June, July and
August starting June 4th, it was an
nounced last month. Banking hours

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

F. E. DAVENPORT&CO.
OMAHA

Nort hwest ern Banker, June, 1949

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

WHERE
U N U S U A L S E R V IC E
IS THE U S U A L TH ING

VALLEY BANK AND T R U ST C O M PA N Y
DES M O I N E S

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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

Nort hwest ern Banker, June, 1949

Iowa News
The two banks in East Des
Moines, Capital City State Bank and
Iowa State Bank will remain open on
Saturday mornings, 9:30 a. m. to 12:00
o’clock noon.

open to the public Monday through
Friday will remain the same, 9:30
a. m. to 2:00 p. m.
The Des Moines banks which will
close Saturdays are Bankers Trust

pany.

Company, Central National Bank &
Trust Company, Des Moines Bank &
Trust Company, First Federal State
Bank, ]owa-I)es Moines N ational
Bank and Valley Bank and Trust Com

Rolfe O. Wagner, president of the
Capital City State Bank, stated, “while
realizing the desirability of the five
day week for our employes and being
in accord with the others banks of the
city, for competitive reasons our bank
will observe the present Saturday
banking hours of 9:30 a. m. to 12:00
o’clock noon.”
The establishment of the five day
week will give bank employes the
benefit of the two day weekend en

• D uplicate bank deposit books
• Tellers cash tickets

N e b r a#s kSa
a69l e s b o o k
INCES11
L in c o ln

Nebraska

joyed by a great many Des Moines
persons and at the same time will en
able the banks to attract and keep the
highly trained caliber of personnel
needed to provide the best possible
service, the announcement declared.
The decision to institute a five day
week was reached after a careful
study of the widespread trend in busi
ness and industry throughout the na
tion, the consideration for employes’
working hours, and the experience of
banks adopting this plan in other
cities. According to the latest infor
mation, the five day week is now in
practice in twenty-three other states.
Wherever all-day Saturday closing is
being observed it is uniformly re
ported to be working to the satisfac
tion of customers and employes, the
announcement stated.
“The only way we can give our em
ployes a full Saturday afternoon off
is by not opening the bank on Satur
day morning,” one bank official said.
“ Banking hours are merely the hours
open to the public. But banking hours
create the bank work which follows
and since banks have remained open
until noon on Saturdays it has meant
that employes have had to carry their
bank work on well into Saturday aft
ernoon.”
Arnold Dressier, Central National
Bank and Trust Company, was elected
president of the Des Moines Chapter
of A.I.B. at the annual banquet and
dance last month. He succeeds John
B. Monahan, assistant cashier of
Bankers Trust Company.
Other officers elected at the business
meeting were, Albin Rodine, Iowa-Des
Moines National Bank, first vice presi
dent; Forrest Lewis, Iowa State Bank,
second vice president; Austin Grayheal, Bankers Trust Company, treas
urer, and Marie Hulderson, Central
National Bank and Trust Company,
secretary. Pearl Tieg, I o w a - D e s

B O O KB IN D ERS
~

4-4224

KOCH

.BROTHERS
rOURTH and GRAND
DES MOINES
Nort hwest ern Banker, June, 1949

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

Iowa News
Moines National Bank, was named
chairman of the women’s committee.
Lewis De Marco, Valley Bank and
Trust Company, won the $100 scholar
ship for his high grades in the course
on banking fundamentals.
The Bankers Trust “Falcons” won
the first place prize in the A.I.B.
bowling league. A total of $400 was
given to individuals and team mem
bers for bowling prizes. There were
16 teams in the league.
The Iowa-Des Moines National
Bank’s summer party is scheduled for
June 6th at the Hyperion Field Club
in Des Moines. All members of the
staff have been invited.
Three hundred and fifty members
of the Iowa Association of Small Loan
Companies met in Des Moines for
their annual convention and election
of officers last month.
M. E. Patrick, Dubuque, was elected
president; A. C. Kelly, Davenport, was
elected vice president, and Homer
Young, Des Moines, and H. M. Roth,
Ottumwa, were re-elected secretary
and treasurer respectively. AY. H.
Owen, Des Moines, is retiring presi
dent.
Speakers on the program included
Edward P. Kautzky, vice president of
the Valley Bank and Trust Company,
Des Moines; Lehman Plummer, vice
president of the Central National
Bank in Des Moines; N. P. Black, Iowa
state superintendent of banking, and
Otis Jones, small loans supervisor for
the department.
Harold P. Klein, vice president of
the Iowa-Des Moines National Bank,
has been elected state treasurer of the
reactivated USO in Iowa.

A prominent feature of the annual
Veishea Day celebration at Iowa State

College, Ames, last month was a series
of 10 enlarged photographs showing
the flight of a check from the time it

IN R E X OF

68
41
56
45
28
37

It
B a n k o f M o n t r e a l................................................... 30
B a n k e r s R u b b e r S t a m p .................................. 70
B a n k e r s S e rv ic e C o m p a n y , In c ................... 31
B a n k e r s T r u s t C o m p a n y — D es M o i n e s .. 75
B a n k e rs T r u s t C o m p a n y — N e w Y o r k . . . . 11
B a n k s, W ill ia m H ., W a r e h o u s e s , I n c . . . 68
B u r r o u g h s A d d in g M a c h in e C o................. 25

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Federal Reserve Bank of St. Louis

ENVELOPES
Geared to the

SAVINGS ASSOCIATION
Oldest in Des Moines
210 6th Ave.

Dial 2-8303

ELMER E. MILLER

HUBERT E. JAMES

Pres, and Sec.

Asst. Sec.

FOR YOUR ENJOYMENT . . .
Listen to the

“ WORLD OF MUSIC”
KRNT, 1350 KC

1 to 1 :30 p.m. Sundays

BANKERS FLAP
...s e a ls quickly and stays sealed .
Protect bulky m ail in these strong
shouldered, w id e seam ed, deep ly
gummed en velopes.
W rite for
sam ples and prices.

s
Y—

— J
r *A0i MARK RtI>i3Tt*t0

IOWA • LITHOGRAPHING ■COMPANY
FOUNDED BY GEORGE H RACSDAEE *

■ EDWIN. G. RAGSDALE Y SECRETARY

QUALITY - EX P E R IE N C E

T e n s io n En v e l o p e Co r p .
N ew 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.

315 TWENTY EIGHTH STREET'

DES • M O I N E S

•SERVICE

C e n tra l N a tio n a l B a n k and T ru s t
C o m p a n y — D e s M o in e s ............................. 14
C h ase N a tio n a l B a n k ....................................
7
C h ic a g o , M ilw a u k e e and St.
P a u l R a ilr o a d ................................................... 36
C ity N a tio n a l B a n k an d T r u s t
C o m p a n y — C h i c a g o ......................................... 30
C ity N a tio n a l B a n k an d T r u s t
C o m p a n y — -K a n sa s C i t y ................................ 61
C o n tin e n ta l-I U in o is N a tio n a l B a n k
an d T r u s t C o m p a n y ....................................
4
C o n tin e n ta l N a tio n a l B a n k — L i n c o l n ... 62
D
D ain , J. M., and C o m p a n y ................................ 47
D a v e n p o rt, F . E!., and C o m p a n y .......... 63-70
D e L u x e C h eck P rin te rs , In c ................... 50
D e s M o in e s B u ild in g , L oan and
S a v in g s A s s o c ia tio n .................................... 73
D ro v e rs N a tio n a l B a n k ............................... 33

JU N E, 1949

graph was the machine pictured
therein, helping visitors get a better
idea of the mechanics involved in this
phase of banking.

DES MOINES BUILDING-LOAN &

F ir s t and A m e r ic a n N a tio n a l
B a n k — D u lu th ...................................................
F ir s t N a tio n a l B a n k — C h ic a g o ..................
F ir s t N a tio n a l B a n k — M in n e a p o lis .........
F ir s t N a tio n a l B a n k — O m a h a .....................
F ir s t N a tio n a l B a n k — St. L o u i s ................
F ir s t N a tio n a l B a n k — S io u x C i t y ............
F ir s t St. Josep h S to c k Y a r d s B a n k . . . .
F ir s t W is c o n s in N a tio n a l B a n k ........... 10

A D V E R T IS E R S
A
A d d r e s s o g r a p h S ales A g e n c y .........................
A llie d M u tu a l C a s u a lty C o m p a n y ............
A m e r ic a n E x p r e ss C o m p a n y ........................
A m e r ic a n N a tio n a l B a n k — St. P a u l . . . .
A m e r ic a n N a tio n a l B a n k and T ru st
C o m p a n y — C h i c a g o ..........................................
A s h w e ll and C o m p a n y .......................................

first enters the banks hands until it
is returned to the depositor as a can
celled check. The display, made up
by the Iowa-Des Moines National
Bank especially for this occasion,
showed the many different machines
and operators required to process
properly each check along its route
of travel. Accompanying each photo-

49
8
42
62
34
66
63

H
H a r r is T r u s t and S a v in g s B a n k ........... 24
H o m e In s u ra n c e C o m p a n y .......................
5
H o n o r R o ll B a n k s — M in n e so ta
and N o rth D a k o t a .................................... 2 6-27
I
In v e s to r s D iv e rsifie d S e rv ice s .................... 51
I o w a -D e s M o in e s N a tio n a l B a n k ...... 76
Io w a L ith o g r a p h in g C o m p a n y .............. 73
Iv
K a lm a n an d C o m p a n y ................................. 51
K och B r o t h e r s ..................................................... 72

L
L a M o n te , G e o rg e and S o n ..........................
3
L iv e S to c k N a tio n a l B a n k — C h ic a g o . . . . 67

L iv e S tock N a tio n a l B a n k — O m a h a .......... 64
L ive S to c k N a tio n a l B a n k — S io u x C ity . . 52

M
M a rq u e tte N a tio n a l B a n k ................................ 46
M e rc h a n ts M u tu a l B o n d in g C o................... 41
M e rc h a n ts N a tio n a l B a n k ................................
2
M in n e so ta C o m m e rc ia l M en ’ s
A s s o c ia tio n .......................................................... 48
M is s is s ip p i V a lle y T ru s t C o m p a n y .. .. 32
N
N a tio n a l B a n k o f S ou th D a k o t a ................. 54
N a tio n a l B a n k o f W a t e r l o o ........................... 72
N a tio n a l C a sh R e g is t e r C o m p a n y ............
6
N e b r a s k a S a le sb o o k C o m p a n y ...................... 72
N o r th w e s t S e c u rity N a tio n a l B a n k . . . . 55

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

P
P o lic y h o ld e r ’s N a tio n a l L ife
In su ra n c e C o m p a n y .......................................
P u b lic N a tio n a l B a n k and
T r u s t C o m p a n y .................................................

41
54

K
R o g e r s , F r a n k S., A g e n c y — St. P a u l. . . . 45
S
St. P au l T e r m in a l W a r e h o u s e C o m p a n y . 29
S c a rb o r o u g h and C o m p a n y .................. 4 0 -6 3 -6 5
S ch u ld t, T he L e slie , C o m p a n y ...................... 50
S e c u rity N a tio n a l B a n k — S io u x C i t y . . . . 70
S tock Y a r d s N a tio n a l B a n k —
S ou th St. P a u l ................................................. 44
T
T e n sio n E n v e lo p e C o m p a n y ........................... 73
T o o t le -L a c y N a tio n a l B a n k ....................... 60-61

U
U n ite d S ta te s N a tio n a l B a n k ......................

V
V a lle y B a n k and T r u s t C o m p a n y ............
W
W a lt e r s , C h a rle s E „ C o m p a n y ......................
W e s te r n M u tu a l F ire In su ra n c e
C o m p a n y ...............................................................
W h e e lo c k and C u m m in s ....................................
W o o d , H a r o ld E „ C o m p a n y ...........................

71
61
40
37
51

Nort hwest ern Banker, June, 1949

The Final Say
A blue-blooded matron who hails
from Charleston, South Carolina, was
horrified to learn that her favorite
nephew was engaged to a “nobody”
from Savannah. When she was intro
duced to the girl, she rasped, “ So this
is Barbara! My dear, I should never
have known you from Cecil’s descrip
tion. He said you were beautiful.”
“ I’m not a bit pretty,” the girl ad
mitted ruefully, “so I have to try to
be nice, and it’s such a bore. Have
you ever tried?”

Not Appreciated
“My little sister is awfully lucky,”
said one little boy to another.
“Why?”
“ She went to a party last night
where they played a game in which
the men either had to kiss the girls
or pay a forfeit of a box of candy.”
“Well, how was your sister lucky?”
“ She came home with thirteen boxes
of candy.”

The Logical Reply
Old Jed was behind the counter in
his general merchandise store when a
traveling salesman entered and pur
chased a handful of cigars. The cus
tomer took the cellophane wrapping
off one of them and started to light it.
“ Sorry,” said Jed, pointing to a sign
on the wall, “but there’s no smoking
allowed here.”
“What!” cried the salesman. “You
sell cigars but won’t allow smoking?”
The old man smiled. “We also sell
bath towels,” he said softly.

June 8-9, Annual Convention, Minne
sota Bankers Association, St. Paul,
Hotel St. Paul.

The Other Side of the Coin
Elderly Mr. Jones, who was a wid
ower, had struck up a firm friendship
with the widowed Mrs. Brown, whom
he visited every evening without fail.
This habit finally became a joke among
his acquaintances, who suggested that
he’d save a lot of footsteps if he mar
ried the lady.
“Certainly,” he agreed, “but then
where would I spend my evenings?”
Fair Choice
A college fraternity house in Massa
chusetts recently had to send its cur
tains to the cleaners. Shortly after
wards the young gentlemen received a
note from the girls’ dormitory across
the street:
“Dear Sirs: May we suggest that
you procure curtains for your win
dows. We do not care for a course in
anatomy.”
The boys immediately wrote back:
“Dear Girls: The course is optional.”
Nort hwest ern Banker, June, 1949

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

Protective Instinct
“Why did you steal those towels
from the hotel?” asked the judge.
“ I didn’t mean to steal them,” apolo
gized the prisoner, “but I had to have
something to wrap the silverware in!”
Should Have Known
Motorist (barely avoiding a broad
side crash): Why on earth didn’t you
signal that you were turning in?
Girl (who has just crossed into her
home driveway): I always turn in
here, stupid.

)

C O N V E N T IO N S

June 13-24, 4tli Annual Agricultural
Credit School of Iowa Bankers
Association, Ames, Iowa State
College.
June 15-16, Annual Convention, Illi
nois Bankers Association, St.
Louis, Hotel Jefferson.
June 17-18, Annual Convention, North
Dakota Bankers Association, Mi
not, Clarence Parker Hotel.
June 20-22, 53rd Annual Convention,
Wisconsin Bankers Association,
Milwaukee, Schroeder Hotel.
June 20-July 2, Graduate School of
Banking, Rutgers University.
August 22-September 23, Central
States School of Banking, Univer
sity of Wisconsin, Madison.
October 11-12, Annual Convention,
Nebraska Bankers Association,
Lincoln, Hotel Cornliusker.
October 17, 18, 19, 63rd Annual Con
vention, Iowa Bankers Associa
tion, Des Moines, Hotel Fort Des
Moines.
October 19-22, Annual Convention,
Financial Public Relations Asso
ciation, Chicago, Edgewater Beach
Hotel.
October 23-26, 25th Convention. Na
tional Association of Bank Audi
tors and Comptrollers.
October 30-November 2, 75th Annual
Convention, American Bankers
Association, San Francisco. (Con
vention headquarters to be an
nounced later.)
December 1-2, 18th Annual A.B.A.
Mid-Continent Trust Conference,
Chicago, Drake Hotel.

No Good!
A credit-reporting agency in an east
ern city made the following report
concerning a debtor:
“We have a report that this party
has no property, either real or per
sonal; no credit, either actual or po
tential; no prospects, either present or
future: and no hope, either here or
hereafter.”
That’s what we call laying the cards
face up on the table.
He Should B e!
“Why is Jones pacing back and forth
so frantically?”
“He is awfully worried about his
wife.”
“ Why? What has she got?”
“The car.”
Information, Please
Telephone Operator: I’m sorry, sir
—that number has been taken out.
Man on Phone: Oh, is that so? Well,
can you give me any information as to
just who has been taking her out?
Lamb Tale
The school teacher had just finished
telling a pointed story about a lamb
that was eaten by a wolf. “You see,”
she said, “if the lamb had been obedi
ent and had not strayed from the flock,
it wouldn’t have been eaten by the
wolf, would it?”
“ No, ma’am,” answered a bright tot.
“ It would have been eaten by us.”
Warning
Traffic sign in small Oklahoma town:
“ Slow. No Hospital.”

Where merchandise moves,
money moves, too

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

Located in the heart of Iowa, Des Moines is the focal point of Iowa's
distribution activities.
Twenty-one motor-freight companies and nine rail-freight lines fan-out in
all directions from Des Moines, moving merchandise to every corner of
the state.
The movement of merchandise involves money and credit.
so many Iowa bankers find:

That's why

That Des Moines is a logical point for a correspondent connection.
That the logical bank for a Des Moines connection is the Bankers
Trust, providing complete facilities for efficient handling of your corre
spondent business.

BANKERS TRUST COMPANY
6th and Locust, Des Moines, Iowa
Member Federal Deposit Insurance Corporation

Member Federal Reserve System

T R A N S I T ITEMS Microfilmed for Your Protection!
To insure speed and accuracy, this

filed to p rovid e a read y reference

Bank uses R e c o rd a k p h o to g ra p h ic

of im portant inform ation for our

equipm ent in making a perm anent

custom ers and ourselves.

record of all transit items p ayab le
Iowa Banks and Bankers are invited

outside of D es M o ine s.

to make full use of the fast and d e
A fte r the rolls of microfilm are

p endable

d e ve lo p e d

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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

Full text of The Northwestern Banker : June 1949, 54th Year, No. 743

FRASER