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MARCH 1942 19,000 P e n n ie s for D efense B onds See page 28 BU Y U N IT E » STATES DEFEN SE BO N D S STAMPS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE TREND OF BAN K LO A N S Page 13 V^r -*$■ - ^ c ^ <c -< r -^ c < f < f < r: <f*< ? t > ^ >i> ^ ^ ^ ^ ^ ^ ^ ^ ^ UNITED STATES W e, th e b anks of th e G reat M id-W est, have a co n tin u in g resp o n si bility. W e have gone fo rw ard co n stan tly in th e straig h t p a th of safe, conservative b anking, aiding p ro d u ctio n fro m fa rm an d factory. As a resu lt, we have never been in b e tte r position to aid o u r N ational G overnm ent. Such a policy brings o u r basic stren g th to g eth er from co u n try and city. A CEDAR RAPIDS BANK SERVICING ALL IOWA* MERCHANTS r j't, NATIONAL BANK OFFICERS if Hilf m iJ f jfiFDL fa i hbVk J a m es E . H a m il t o n , C h a ir m a n S. E . C o q u illette , P r e s i d e n t H . N . B oyson , V ic e P r e s i d e n t R oy C. F olsom , V ic e P r e s i d e n t M ark J. M y ers , V . P r e s . & C a s h ie r G eorge F . M il l e r , V . P r e s . & T r . O fficer M arvin R. S e l d e n , V ic e P r e s i d e n t F red W . S m it h , V ice P r e s i d e n t J o h n T . H a m ilto n I I , V ic e P r e s i d e n t R. W . M a n a t t , A s s t. C a s h ie r L . W . B r o u l ik , A s s t. C a s h ie r P eter B a il e y , A s s t. C a s h ie r R. D. B r o w n , A s s t. C a s h ie r O. A . K ea r n e y , A s s t. C a s h ie r S ta n ley J . M o h rb a ch er , A s s t. C a s h ie r E . B. Z b a n e k , B u ild in g M a n a g e r C edar R apids Member Federal Io w a Deposit Insurance Corporation N o rth w e ste rn B an k er, p u b lish e d m o n th ly by the D e P u y P u b lish in g C om pany, a t 527 7th S tre e t, D es M oines, Iow a. S u b sc rip tio n , 35c p e r copy, $3.00 p e r y e ar. E n te re d a s second c la ss m a tte r a t th e D es M o in es p o st office. C opy rig h t, 1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The oft-quoted phrase, "An o u n ce of prevention," is p ossib le a s to the m illions of dollars sa v ed , through puts em p h asis on the in ca lcu la b le v a lu e of p recau the years, b y the u se of La Monte Safety Papers a s a tion. And the phrase h a s never lost its m eaning. In fraud preventive. Their cost is incon seq u en tial com a p p lies in a pared with the SECURITY they g iv e — a fact reco g thou san d w a y s. U se of La M onte S afety Papers is a nized b y 75 per cent of the country's lea d in g banks e v ery d a y b u sin ess its practicality striking exam p le, for th ey offer the "ounce of pre and b y com m ercial corporations ev e r y w h e r e.» »Your vention" that protects a g a in st forgery or alteration of ow n trademark or d esign is a d a p tab le to them, a s checks an d other n eg o tia b le docum ents. No estim ate your lithographer or printer w ill b e g la d to sh ow you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 A WAR A L L E M M E S S A G E to P L O Y E R S ★ From the United States Treasury Department ★ W inning this W ar is going to take the mightiest effort America has ever made—in men, in materials, and in money! Every dollar, every dime that is not urgently needed for the civilian necessities of food, clothing, and shelter, must, if we are to secure final Victory, be put into the war effort. consideration. You will receive—1, a booklet describing how the Plan works; 2, samples of free literature furnished to companies installing the Plan; 3, a sample employee Pay-Roll Savings authorization card; and 4, the name of your State Defense Bond administrator who can supply experienced aid in setting up the Plan. An important part of the billions required to produce the planes, tanks, ships, and guns our Army and Navy need must come from the sale of Defense Bonds. Only by regular, week by week, pay-day by pay-day invest ment of the American people can this be done. To get full facts, send the coupon below Or write, Treasury D epartm ent, Section B, 709 Tw elfth St., NW., W ashington, D. C. This is the American way to win. This is the way to preserve our democratic way of life. f-, . . , „ , , r a c i n g th e s e ta c ts , y o u r G o v e r n m e n t n e e d s , u r g e n tly , your cooperation with your employees in immediately enrolling th e m in a PAY-RHI I 1 u PI AN '*n * 1 *” »■*J « L r t l i The Pay-Roll Savings Plan is simple and efficient. It provides, simply, for regular purchases by your emo r j j ployees of United States Defense Bonds through systematic yet voluntary pay-roll allotments. All you do is hold the total funds collected from these pay-roll allotments in a separate account and deliver a Defense Bond to the employee each time his allotments accumulate to an amount sufficient to purchase a Bond. — today! H O W T H E P A Y -R O L L S A V IN G S PLAN H E L P S Y O U R C O U N T R Y -m M. A I t gives every Am erican wage earner th e o p p o rtu n ity for financial participation in N ational Defense. O B y storing up wages, it will reduce th e current dem and for consum er goods while they are scarce, th u s retarding A I t reduces th e percentage of Defense financing th a t m ust be placed w ith banks, thus puttin g our emergency financine on a sounder basis. inflation. “ It builds a reserve buying power for the post-w ar purchase °fa^ivilian goods to keep our factories running after the It helps your employees provide for their future. ® The Pay-Roll Savings Plan has the approval of the American Federation of Labor, the Congress for Industrial Organization, and the Railroad Brotherhoods. It is now in effect in several thousand companies varying in number of employees from 3 to over 10,000. In sending the coupon below, you are under no obligation, other than your own interest in the future of your country, to install the Plan after you have given it your I t provides im m ediate cash now to produce th e finest, deadliest fighting equipm ent an A rm y a n d N av y ever needed to win. -j ^ T - * \ \\j ' _____ ^ \ q'reas«ry \ \ fife \ rM. ^ aghington’ " \ pOSlTl0,S...... MAKE EVERY PAY-DAY... BOND DAY! U.S.Defense BONDS*STAMPS This space is a contribution to NATIONAL D E F E N S E by N O R TH W ESTER N BANKER N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 oUr P1' 1, ardi»s ....... ........ c o » ^ ......... ” OF ts ,n .o ',EES ' • I GPO ~ —' etit, Secti°n 16 — 2 5 9 4 3 -1 X.S Form No. DSS-BP-2 ^ 5 U A M l? m i nsurance llUlVlJt!i COMPANY NEW YORK STATEMENT • DECEMBER 31, 1941 A d m itted Assets Cash in Banks and Trust C o m p a n ie s ................................. $ 24,287,805.05 Bonds and S t o c k s ........................................................................ 85,493,204.48 First Mortgage L o a n s ............................................................. 365,492.00 R eal E s t a t e ................................................................................... 3,841,678.13 Prem ium s uncollected, less than 90 days due . . . . 8,257,964.53 Reinsurance R ecoverable on Paid L o s s e s ........................ 1,512,109.67 Other A dm itted A s s e t s ............................................................. 218,518.25 $123,976,772.11 Liabilities Capital S t o c k ................................................................................... $15,000,000.00 R eserve for Unearned P r e m i u m s ..................................... 59,351,273.00 R eserve for L o s s e s ................................................................. 9,658,743.00 Reserve for T a x e s ....................................................................... 2,350,000.00 R eserve for M iscellaneous Accounts . 667,419.82 Funds H eld under Reinsurance T r e a t i e s .......................... 127,883.25 Reserve to Adjust Security V a lu a tio n s.................................. 531,600.00* N E T S U R P L U S ............................................................. 36,289,853.04 $123,976,772.11 ^Represents the difference between total values carried in Assets for all Bonds and Stocks owned on basis prescribed by National Association of Insurance Commissioners and total values based on December 31, 1941 actual market quotations. Securities carried at $3,126,823.00 and cash $50,000.00 in the above Statement are deposited as required by law. -------------------------------------------------------- Directors--------------------------------------------------------- f- Lewis L. Clarke W ilfred K urth H erbert P. H owell George McAneny William S. Gray Charles G. Meyer William L. D eB ost E dwin A. Bayles Gordon S. R entschler R obert Goelet M ortimer N. Buckner F r a n k E. P arkhurst Guy Cary H arold V. Smith H arvey D. Gibson 4--------------------------------------------------------------------------------------------------------- ♦ FIRE • AUTOMOBILE S T R E N G T H • MARINE • and ALLIED R E P U T A T I O N LINES • OF INSURANCE S E R V I C E RED CROSS WAR FUND— 9j, ifou c a n 't <fO. . . . Q iae! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 “You Cover All of the News of Importance in the Entire Northwest Area” This is how valuable and time-saving the executive officer of a Chicago bank considers the N o r th w ester n B anker “ M r. Clifford De P uy, P u b lish e r T he N o rth w estern B a n k e r Des M oines, Iowa D ear Cliff: “ I ju st received all of th e rec e n t issues of th e various b a n k pu b licatio n s an d decided to review them . I started w ith one o th e r p u b lic a tio n and th e n I read th e N orthw estern Banker. A fte r read in g th is m o n th ’s issue, I concluded it w asn’t necessary to look over any of the others, because you covered all of the news of im portance throughout this entire n orth w est area. Y ou have, th e re fo re , saved m e a lot of tim e. “ W e have always ap p re c ia te d th e in te re st th a t y o u r p u b lic a tio n has evi denced tow ard o u r h a n k an d its officers. “ W ith cordial regards, I am Sincerely yours, E xecutive Officer of a Chicago B an k This is only one of MANY LETTERS received each month from NORTHWESTERN BANKER advertisers and subscribers who appreciate the fine editorial and news service of the “Oldest Financial Publication West Of The Mississippi River.” N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19b2 M A R C H N O RTH W ESTERN 19 4 2 DES MOINES FO R T Y -SE V E N T H Y E A R NUM BER 656 Oldest Financial Journal West of the Mississippi River C LIFFO RD DE PUY Publisher R A L P H W. M O O R H E A D Associate Publisher H EN R Y H. H A Y N E S Editor IN T H I S IS S U E Editorials A c ro s s th e D e sk f r o m th e P u b l i s h e r ............................ . 8 J. STUART D A V IS Associate Editor 527 Seventh Street, Des Moines, Iowa Telephone 4-8163 Feature A r t i c l e s F r o n tis p ie c e .................................................................................... . ..................... . 11 T h in g s th e F a r m e r C a n D o to D e f e a t In f la tio n ........... ..... O. B. Jesness ............................ Clifford De Puy ...E . W. Rossiter ............................ ...R . M. De Puy ............................. 11 13 14 .......................... ........................ 20 T h e T r e n d o f B a n k L o a n s ........... ...................................... ..... N EW Y O R K O FFICE Frank P. Syms Vice President 505 Fifth Ave. Suite 1202 Telephone MUrray Hill 2-0326 N e w s a n d V ie w s .............................................................. ............... S a v e a n d S u c c e e d ................................ .......................................... L e g a l D e p a r t m e n t — C a n th e D ra w e e B a n k R e co v e r?. H o w S o u th D a k o ta B a n k e r s M a k e B e tt e r F a r m s ___ W o u ld F r e e z e B r a n c h B a n k in g .............................................. O p e n H o u s e a t th e C o n tin e n ta l............................................. M IN N E A P O L IS , O FFICE Jos. A . Sarazen Associate Editor Telephone Hyland 0575 S a id a n d S e e n a t S io u x C ity a n d B u r l in g t o n .............. CONVENTION CALENDAR S T A T E M E E T IN G S M isso u ri A n n u a l C on v en tio n — Jo p lin , M ay 11-13 In d ia n a A n n u al C o n v en tio n — In d ia n ap o lis, M ay 13-14 Illin o is A n n u al C o n v en tio n — St. L o u is, M ay 20-22. S ou th D a k o ta A n n u a l C o n v en tio n — C a ta ra c t H o te l, S io u x F a lls , J u n e 3-5. W isc o n s in A n n u al C o n v en tio n —M il w au k ee, J u n e 16-18 M o n ta n a A n n u al C o n v en tio n — Y ello w sto n e N a tio n a l P a rk , J u n e 18-20 N o rth D a k o ta A n n u al C o n v en tio n — D ick in so n , J u n e 12-13 Io w a A n n u al C o n v en tio n — D es M o in es, S e p te m b e r 6-9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 18 22 Insurance H o w B a n k e r A g e n ts C a n G e t M o re P r o s p e c t s ............... C e n tra l S ta te s C o n feren ce— C hicago, M arch 16-17, P a lm e r H o u se A B A E x e c u tiv e C o u n cil S p rin g M e e t in g — T h e H o m e ste a d , H o t S p rin g s, V irg in ia , A p ril 19-22. A sso c ia tio n R eserv e C ity B a n k e rs— W h ite S u lp h e r S p rin g s, A p ril 25 M id -C o n tin e n t C onference, B an k A u d i to rs — K a n sa s C ity, M ay 21-23 A m e ric a n In s titu te of B a n k in g — N ew O rle a n s, J u n e 8-12. F in a n c ia l A d v e rtis e rs A sso c ia tio n — C hicago, O c to b e r 19-21 A BA A n n u al C o n v en tio n — B ook-C adilla c H o te l, D e tro it, S e p te m b e r 22-O cto b e r 1. 15 16 .Robert E. Shay 25 Bonds and Investments G o v e rn m e n ts S till t h e B e s t B e t..... .James H. Clarke 29 Io w a I n v e s tm e n t B a n k e r s E le c t... ..................................... 31 State Banking News M in n e s o ta N e w s ................................. T w in C ity N e w s .......................... ......................... 33 .............................. 35 S o u th D a k o ta N e w s ............................ .............................. 37 N o r t h D a k o ta N e w s ............................ .......... ................... 39 N e b r a s k a N e w s ................................... . .......................... O m a h a C le a r in g s ..................... L in c o ln L o c a ls ................ ............ Io w a N e w s ............................ ................. 43 .............................. 45 .............................. 47 ........................... ........... 51 D e fe n s e B o n d D e p a r tm e n t.... .............................. 57 Io w a N e w s f r o m H e re a n d T h e re . J . A. Sarazen 58 Robert Lindquist 63 T h r i f t “ E n li s t e d ” to W in th e W a r. The Dire ct ors’ Roo m A F e w S h o r t S to rie s to M a k e Y o u L a u g h . 66 Across the Desk From the Publisher Chartered Banking B ch artered bankNeeds to Build Strong in« is to su™ ve, the rI ,. kI post-w ar period it Foundation Now needs to be built on a very strong foundation Now. This idea was em phasized before the Georgia B ankers convention recently by R obert M. Hanes, president of the W achovia B ank and T ru st Com pany of W instonSalem, N o rth Carolina. Mr. H anes said th a t economic planners and New D ealers are having a field day w ith all of th e ir rules, regulations and bureaus w hich th ey are now establishing, b u t the question is, how m any of these rules and regulations and how m any of these centralized bureaus will be released when the w ar is over. T hat will depend to a certain ex ten t on ju st how ch artered banking comes th ro u g h the w ar period and how it is able to tak e care of the situ atio n w hen the w ar is over. As Mr. H anes puts i t : “ It will be a great tragedy for the Ameri can system of chartered banking if we fail at this time to build up a great reserve of banking strength and stability undergirded by broad public understanding, approval and support. We shall be in great need of these factors in the post-war period. The exigen cies of war are providing the excuse for un precedented controls, regulation, bureaucracy, centralization of power and federalization of government. The economic planners are hav ing a field day! It remains to be seen to what extent these controls and this centralization will be eliminated when the war is over. Few of the emergency powers granted in the early N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 ’30s have been repealed. The cries for Gov ernment banking have been quieted tempo rarily, but when the post-war economic storm begins to blow, these voices will rise again in all their raucous clamor. Then chartered banking will need a strong foundation of soundness and public confidence. If we fail to build that kind of foundation now, it will then be too late!” So now the question of soundness and public confidence and good will are assets w hich every banker m ust help to build in order th a t the foundation of ch artered banking m ay be stro n g enough to w ith stan d w hatever storm s m ay arise when the w ar is over. A Printing Press In the War Powers Bil1 In the Treasury n0" ' before Congress th ere is a provision for purchases of U nited S tates securities direct from the T reasu ry by the F ed eral Reserve Open M arket Committee. The A. B. A. has already given its approval to this p a r t of the bill, but there are m any b an k ers who are opposing it. Recently, Orval W. Adams, form er president of the A m erican B ankers Association, and execu tive vice president of the U tah S tate N ational B ank of S alt Lake City, s a id : “ In my opinion, no more dangerously in flationary proposal could have been made, no greater threat to the savings and earningpower of the people have been offered. “ The proposal should have been labeled ‘An Act to Set Up a Printing Press in the Treasury.’ ’’ 9 A t the present tim e the F ed eral Reserve Open M ark et Com mittee bids for governm ent securities in the open m ark e t w ith everyone else, but if this proposal goes through, this fe atu re would be elim inated and the T reasury would sell its se curities direct to the Federal Reserve Banks w ithout this stabilizing influence. As Mr. Adam s points out, this w ould be the same as establishing a “ p rin tin g press in the T re a s u ry ,” and th a t w ould be unsound and unwise.. Let's Fight por F re e d o m If the U nited S tates is to P a r ^ anc^ ^ie^P w ^n th e w ar it m ust fight for freedom Not Profits and not for profits. This principle applies to business men— it ap plies to farm ers— it applies to laboring men. In a recent address before the New Y ork state bankers conference M arriner S. Eccles, chairm an of the F ed eral R eserve board, em phasized this point when he said, “ If this war is going to be fought on the basis of what we are going to get out of it instead of what we are going to put into it, we are going to lose. “ Business men who have most at stake must do the most. They must not expect to pass on the burden to some one else who1is less able to bear it and who has far less to lose than we have. ’’ W hile it is true, as Mr. Eccles points out, th a t the business men have the m ost a t stake and m ust do the most, this likewise applies to union labor w hich should also do its p art. In a recent house naval com m ittee re p o rt they pointed out th a t n et assets of 117 unions now am ount to $82,594,000 or an increase of over $10,679,000 or 14.85 per cent fo r the 18 m onths from October 1, 1939 thro u g h M arch 1, 1941. These funds, like the assets of any corporation, should be subject to the same prop ortional ta x ation, and this com m ittee re p o rt says—“ These vast ta x exem pt funds reposing in the treasuries of labor organizations, m any of w hich by strikes and w ork stoppages have delayed and in instances even o b structed the defense program , present a problem w hich the com m ittee feels should well be considered by the congress.” So w hatever the problem s of m aladjustm ents or p a rtic u la r situations m ay be w ithin any group, we say l e t ’s fight fo r freedom and not for profits u n til this W a r is won. If the W ar is lost, th ere will be no profits for anyone and if the W a r is won there will be a chance for profits fo r all. AY i t h A m erica at w ar, we are buying de fense stam ps fo r ju st one purpose, to defend A m erica and to win the war. E very p atrio tic A m erican is going to give every dime and every dollar he can to m ake victory assured and to have it consum m ated in the sh o rt est possible time. B ut does the m oney w hich we are paying for defense bonds have to be used to— For W hat Are W e Buying Defense Bonds? 1. Pay night club dancers $4,600 a year to teach children aesthetic dancing. (Now resigned.) 2. Pay Congressmen and Senators pensions. (Now repealed.) 3. Pay 711 full time and 25,000 part time employees of the Agricultural Depart ment publicity bureau to send out news articles costing $11,000,000. I t ’s high tim e th a t the authorities in W ashing ton cut out the non-essential expenditures, the useless extravagance, the p etty politics and get down to the h ard realities of w inning this w ar, ra th e r th an h iring n ig h t club dancers or paying pensions to professional politicians. C. S. Young, president of the F ed eral Reserve B ank of Chicago, in a recent statem en t s a id : “ E stim a te d defense e xp en d itu res fo r the fis cal yea r ended J u n e 30, 1942 a;re $23,996 m il lion. I n the first seven m o n th s o f the fiscal year 1942, fro m J u ly , 1941, th ro u g h J a n u a ry , 1942, defense exp en d itu res have am ounted to $10,315 m illion. On th is basis, estim ated w ar exp en d itu res fo r the rem aining five m onths o f the fiscal year 1942 are $13,682 m illion, or $2,736 m illion p er m onth. “ Sales o f defense savings bonds in F eb ru a ry and M arch m a y not be so large as in Ja n u a ry , because m a n y purchasers of savings bonds in large am ounts bought in J a n u a ry the m a x i m u m am ounts w hich th ey are allowed to p u r chase in a ny one calendar year. '“ A s w ar exp en d itu res rise, renew ed effort m u st be m ade to d ivert cu rren t incom e, through vo lu n ta ry poyroll savings plans, into the purchase o f defense savings bonds. If, as P resid en t Y oung points out, the purchase of defense savings bonds m ust be increased to m uch higher levels in order to check inflation, then let us have an exam ple set by our own gov ernm ent which will inspire confidence. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 10 U 1 h « à p i AL Where Promptness and Efficiency are traditions—where Friendliness is the ru IÜ. M em ber Federal Deposit Insurance Corporation - ■ , *4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • m fai« • 11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 ‘ ‘ F a rm e rs should b a se th e ir p la n s on th e lo n g e r-ru n o u tlo o k —-buy n o th in g , ev en liv e sto c k , only i f i t can be p a id fo r d u rin g th e p e rio d w a r p ric e s a re lik e ly to be in effect. ’ ’ Things the Farmer Can Do to HAT is th e re about w ars w hich tends to produce a situ atio n of risin g prices gen erally re fe rred to as inflation? T he an sw er to th is be comes clear if we only stop long enough to see w h a t w a r does to th e n a tio n ’s economy. M odern w ars are n ot hand-to-hand stru g g les betw een bands of m en w ho su b sist on w h atev er th ey can find in th e countryside. W ar has becom e hig h ly m echanized. F o r every m an in th e arm ed forces th e re m u st be several m en providing him w ith tools and eq uipm ent of w arfare. F acto ries have to sh ift from producing goods for th e consum er to producing goods for sale to th e governm ent. B ut because th e g o v ern m en t pays for th e m aterials and labor th u s used, th e spending pow er in th e h an d s of con sum ers is not m erely m aintained, b u t actually increased, b e c a u s e of in creased activ ity to provide w ar needs. Increased buying pow er ap pears in th e m a rk e t a t th e v ery tim e supplies of m any goods available to th e con sum er are reduced. If such a situ atio n is left to its ow n devices, th e re su lt is a bidding up of prices, or w h a t w e call inflation. Specifically, w h a t are th e fa rm e r’s in tere sts in co n trolling inflation? Be ing hum an, a rise in th e prices he is paid is n o t unw elcom e. B ut his costs go up as well, and p ast experience tells him th a t some of th ese costs later on, display considerable relu ctan ce in accom panying farm p r i c e s in th e dow nsw ing, a fte r th e spree is over. A rise in prices inv ites capitalization into h ig h er land values, w ith th e re su lt th a t a m ajo r inflation b rin g s a specu lative boom in land. H ere again, th e upsw ing produces exhilaration. Un- W N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 194-2 D efeat Inflation By O . B. Jesness C hie f Division of Agricultural Economics, University of Minnesota B a n kers w ho heard M r. Jes ness m a ke this ta lk at th e recent M innesota B a n kers C onference, stood u p and cheered w h e n he finished his rem arks. fo rtu n ately, it also produces som ething q uite undesirable in the form of h eav ier and h eavier farm m ortgage indebt edness. Take a look at w h a t th e last w orld w ar period did to farm debt. In 1910, farm ers w ere carry in g a total of som e th ree billion dollars of m o rt gage debt. The speculative spree of w ar days b ro u g h t a peak of 10 billions by 1923. W hile land values are back aro u n d th e 1910 level or even below in some cases, th e debt at p re se n t to tals over six billion. No, th a n k you! A g ricu lture has no suppressed desire to rep eat th a t experience. The effect on th e general p ro p erty ta x supplies an o th e r illu stratio n of how a w ar in flation m ay saddle farm ers w ith a con siderable increase in th e expense side, w hich continues in spite of reduced income. E x trem e w ar prices also m ay inv ite u n sound expansion of agricul tu re into areas w hich w ill p resen t dif ficult problpm s of a d ju stm en t in th e fu tu re, w hen m a rk e t dem ands are off. W h at can be done about it? L et us approach th e answ er to th a t question from tw o angles: one, w h a t th e farm er can do as an individual; two, w h a t con trols can be set up to hold inflation in check. W hat the F arm er Can Do The individual farm er can do little or n o thing to p rev en t inflation, or the subsequent depression from occurring. He can, how ever, m anage his affairs so as to pro tect him self from some of th e consequences of inflation, if one occurs. P erh ap s he is a te n a n t and w ould like to buy a farm . P erh ap s he is an ow ner w ho feels th a t he w ould be b etter off by adding to his holdings. Shall he buy land? T he an sw er is yes and no. Yes, if careful calculation of fu tu re incom e from th e land a t prices likely to p revail w hen m ore norm al conditions re tu rn , w ill be sufficient to w a rra n t paying th e price asked; if he has sufficient dow n p aym ent so u n ex pected reverses w ill not find him out on a limb; if he has th e ability to op erate th e land as an ow ner. No, if the land is priced on inflated com m odity prices; if th e land is n ot w o rth th e price asked; if it w ill involve him too heavily in debt. Should he build, or m ake m ajo r im provem ents, w hen prices are up? P ri orities have answ ered a su b stan tial p a rt of th is in th e negative. R epairs necessary to m ain tain and p ro tect th e p ro p erty alw ays are in order. As far as th e hom e is concerned, th e farm home, like th e city dw elling, is m ainly a form of consum ption, and th e im p o rta n t question is w h a t one can af ford. T here is no real satisfaction in building a house for w hich one finds him self unable to pay. Out buildings are p a rt of th e production plant, and th e question to be asked in th e ir case (T u rn to page 18, please) 13 TheTrend o f Bank Loans 1. A r e They Decreasing or Increasing? 2. W h at New Sources for Loans A re Bankers Developing? H E follow ing survey was m ade by T H E N O R T H W E S T E R N B A N K E R to find ou t “ T he T ren d s of B a n k L oans” . W e asked two q u estio n s: 1. A re loans going u p or dow n and w hy? 2. W hat new sources of loans are you developing in y o u r com m unity fo r y o u r h a n k ? W e believe th a t N O R T H W E S T E R N B A N K E R rea d e rs w ill he in te re ste d in th e rep lies fo u n d in this article and h o p e th e in fo rm a tio n w ill be h e lp fu l to them . T John Carlander, P resid en t T he S tate B ank of F arib au lt, M innesota “W ith resp ect to th e tre n d of our b a n k loans w e find th a t th e y have de creased in to tal a shade m ore th a n 3 p er cen t since J a n u a ry 1st, 1942. “W e w ere quite alarm ed over th e am o u n t of liquidation th a t cam e in im m ediately follow ing th e close of th e p ast year, b u t since th e n we have been able to place a few n ew loans. F ro m all ap p earances we w ill be obliged to look to o u r fa rm e r custom ers for new loans and we are ab o u t to in au g u rate a vigorous new sp ap er cam paign ap pealing to th e farm ers an d offering o u r assistan ce in financing them th ro u g h th e grow ing season. “In ad dition to th is we are bro ad en ing our p ersonal loan services as m ost of our co n tracts w ill be paid d u rin g th e c u rre n t y e a r.” C. J. H ess, C ashier C arroll C ounty S tate Bank, C arroll, Iow a “1. Our volum e of to ta l loans is stead ily decreasing. Consist p rin c i pally of fa rm e r volum e, and a t p re se n t th e y seem to have p len ty of cash. “2. V ery little new sources of loans, if any, for reaso n th a t th is is not a w ar in d u stry location.” J. V. W ebster, V ice P resid en t F irs t N ational B ank, • C hadron, N ebraska “Our loans have rem ain ed about stead y for p a st five m onths. S u b stan tia l increase up to S eptem ber 1, 1941 over p rio r y e a r w h ich w as due to fa ir ly good crop season an d CCC g rain loans. No p a rtic u la rly new source of loans h ere.” Oscar A. Otto, V ice P resid en t W h itn ey L oan & T ru s t Company, A tlantic, Iow a “R egarding y o u r su rv ey on th e tre n d of “B ank Loans,” w ill state th a t our loans are rem aining about steady. “W e are n ot developing any new type of outlet for loans a t th e p resen t tim e, inasm uch as we feel th a t we should rem ain in a v ery liquid posi tion and be ready to subscribe our lim it to th e various G overnm ent issues as th ey w ill be offered to th e b anks from tim e to tim e in th e fu tu re .” J. A rthu r C unningham , P resid en t F irs t N ational Bank, W illiston, N o rth D akota “T here are no w ar in d u stries near us, consequently th ere w ill be no w ar loans. Our deposits are holding up, an d after th e splendid crop last year we expect we w ill have a h a rd tim e th ro u g h o u t th e y ear holding our loans a t last y e a r’s level, since car, truck, an d auto supply loans w ill n ot be called for and few tra c to r sales, etc. “W e expect no gain an yw here along th e line, and w ill be satisfied if we can m ain tain our 1941 record.” John N. Thom son, V ice P resid en t and C ashier T he B ank of C enterville, South D akota “Our loans w ere su b stan tially re duced du rin g th e p ast tw o or th ree m onths, m ostly from hog proceeds an d some from corn sales or loans u n der th e Com m odity C redit C orporation loan plan. “W e have n ot trie d to find replace m en t or new loans, excepting th a t we have ta k e n all sealed g rain Commod ity C redit C orporation loans th a t we could get, so th a t now a little over 20 p er cent of our total loan account con sists of such paper. “W e are exceedingly fo rtu n ate in h aving m ore cattle on feed in our te rrito ry th a n in o th er vicinities, giv ing us a co n stan t loan tu rn o v e r of choice loans, even though th e ra te is low er th a n th e norm al farm rate, serv icing costs are lower, so th a t the n et re tu rn is v ery good.” AV. K. B ram w ell, P resid en t H ard in County Savings Bank, Eldora, Iowa “Our loans are slightly h igher th an th ey w ere a y ear ago at th is tim e, b u t n o t m uch. T his is occasioned by the fact th a t it takes m ore m oney to handle livestock loans, w hich is our chief o utlet for m oney, b u t on the o th er h and th e price of livestock is so good th a t m any of our borrow ers have m ade such a profit in th e last few y ears th a t th ey don’t use borrow ed m oney to finance th e ir cattle. “I t has alw ays been th e policy of th is ban k to m ake an y sound loans in th is com m unity regardless of th e type of th e security. R eal estate, both tow n and country, all kinds of livestock loans, m achinery and equipm ent loans, autom obile and household ap pliance loans. H ow ever, th e re is n o thing new about any of these sources in this in stitu tio n . W e take good care of our com m unity.” TH E END. Salary Deduction Plan H arvey D. Gibson, p resid en t of M an u factu rers T ru st Company, New York City, announced recently th a t th e en tire reg u lar active organization of M anufacturers T ru st Company, con sisting of all directors, 317 officers and 2,932 staff m em bers, has agreed to p a r ticipate in th e salary savings plan sponsored by th e b an k for th e p u r chase of Series E defense bonds. E ach of th e directors has agreed to accept all or p a rt of his d irecto r’s fees in this m anner, and every officer an d em ploye has signed an agreem ent w ith th e b an k directing th a t some portion of his or h er salary be paid in defense bonds. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 14 N e w s a n d V ie w s OF THE B A N K IN G W O RLD By Clifford DePuy M. EVANS, a d m in istra to r of th e A. A. A., has been n o m inated P resid e n t Roosevelt as a m em ber of the F ed eral R eserve B oard to succeed C hester C. D avis. Mr. E v a n s’ te rm as a m em ber of th e B oard w ill last u n til F e b ru a ry 1, 1954, or 12 years, an d th e salary is $15,000. Mr. E v a n s’ hom e is in L aurens, Iowa, he w as born 52 y ears ago a t Cedar Rapids, Iowa, and studied civil engineering at Iow a S tate College, and w as foreign re p re se n ta tiv e of th e Allied M achinery Com pany in A us tralia. R C harles C. R ieger, m an ag er of th e bond d ep artm en t of Jam ieson & Com pany, M inneapolis, w as m aster of cere m onies a t th e T en th A n n iv ersary m eeting of th e “M innesota Schneitzelbank” last m onth, and a d elightful and as alw ays enjoyable tim e “w as h a d ” by all those w ho attended. In th e le tte r of in v itatio n it said in part: “L ieber H e rr S chneitzelbanker: “Yourself, personally, iss cordially invitatio n ed to our T E N T H A N N I VERSARY, vich vill be celebrationd m it pomp, b eau ty and splendor, bei de Covert W agon, com m encing sh arp ely a t one m inute a fte r D R E E u n til con tin u in g undil 7:29 PX. “De m ain ting, how ever, is to say— Dot dis Old V orldt now so troubled, ve m u st sticken togedder, vile so m any young m en are avay u n d h ere is do blace to posolutuley u n d absitively git y o u r b a tte ry re-charged to c a rry on. “Die K om m ittee, H e rr Karl R ieger, H a u p t S chneitzler H e rr F rederieh Seh lich ting, Vice H aup S chneitzler H e rr Yaeob K unz Official GKF H e rr A lbert H ech tm ann , K assen F u e h re r” w. G. E d en s of th e T erm in al N a tional B ank of Chicago h as h ad th e E d en s P ark w ay nam ed a fte r him . This is because Mr. E dens w as th e first m an in Illinois to get in terested in concrete roads and m odern h ig h ways, according to George A. Quinlan, su p erin te n d e n t of h ighw ays in Cook county, Illinois. In a recen t le tte r to th e N o r thw est ern B anker from Colonel E dens, he said: “In N ew O rleans on m y 78th b irth N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 194-2 day, R udolph H echt, F red E llsw orth , by Bruce Baird, all form er Chicago b a n k ers, and D ale Graham, form er St. Louis banker, headed a group of o th er New O rleans ban k ers in giving a luncheon for me a t th e St. C harles Hotel. T h at evening m y B rotherhood friends gave a d in n er for me in th e old F ren ch q u arters. T heir cake w as nearly as big as a dinky railro ad caboose and bore all th e 78 candles. H arry W ilk in son, 83 y ears old, for th e first tim e in m an y years, stayed dow ntow n for the m id-w inter d in n er of th e Illinois B ank ers A ssociation w here we w ere seat m ates.” In th e an n u al rep o rt of th e C hrysler Corporation it is in terestin g to note th a t th e am ount of taxes paid th e gov ern m en t per sh are am ounted to $6.17 m ore th a n th e dividends p er share. The figures are as follows: T axes per share D ividends per share $15.39 9.22 In crease in ta x es per share $ 6.17 The to tal dividends paid am ounted to $40,000,000 in ro u n d num bers, and th e to tal taxes paid th e governm ent w ere over $66,000,000. W ith m ore and m ore effort being p u t on our production of planes, and w ith a g reater need for a superior air force th a n ever, it is in terestin g to rem em b er th a t th e N azis have some 1,250,000 m en in the “L u ftw affe”. The R. A. F. includes a m illion. The U nited States A rm y announced th a t its goal w as an air force of 2,000,000, the b ig g est in the w orld. H alf th a t num ber, th e a rm y hoped, w ould be m u stered d u rin g 1942. T he Japs, in pre-Pearl H arb o r estim ates, had 5,500 pilots. W ith a 2,000,000-man air force, the A rm y w ill have ground crew s for its sh are of th e 185,000 new planes U. S. factories expect to m ake by th e end of 1943, plus 150,000 new pilots. Guy W . Cooke, a ssistan t cashier of th e F irs t N ational B ank in Chicago, has been doing a fine job in helping to ad v ertise and sell defense bonds for his bank. Since Ju n e of last year, th e F irst N ational B ank of Chicago has p ro m oted th e sale of D efense Savings Bonds by a com plete show ing of 24- sh eet posters on th e boards of th e city, w ith v ery satisfactory resu lts. R ecently th e Chicago post office w as fu rn ish ed th ree of th e posters for dis play—one a t each end of th e blocklong lobby in th e new post office, and one in th e old building, still in use as an annex. Since regulations w ould not perm it th e advertising of any b an k in th e post office, th e G eneral O utdoor A dvertising Com pany altered th e post ers, elim inating th e b a n k ’s nam e by in sertin g th e line, “H elp W in th e W a r”, and adding th e p o stm aster’s nam e, E rn est J. K ruetgen. P aul E. H ardesty, a ssistan t m anager of th e In su ran ce D ep artm ent of th e C ham ber of Commerce of th e U nited States, in a recen t le tte r to us said, “You have a fine editorial page in th e N or thw estern B anker and the subject m a tte r you sponsor over y o u r nam e is m uch to th e point. S trange rum blings are h eard these days of th in g s th a t are contem plated and being planned for th e days to come. It m ay be th a t these are all rig h t and w h at should be, b u t our C o untry’s business needs m ore u n ity of th o u g h t and alertn ess to be sure th a t we are not led a stra y .” A ndrew Price, presid en t of th e N a tional B ank of Commerce in Seattle has been receiving th e congratulations of m any of his friends and custom ers since th e b ank has com pleted th e ex tensive enlargem ent m odernization of its m ain office building. The building is five stories in h eig h t and all four of th e floors are devoted to business of th e bank, except th e fifth floor w hich is occupied by th e Seattle offices of th e F ed eral R eserve B ank of San Francisco. The N ational B ank of Commerce of Seattle w as established 52 y ears ago and now has resources in excess of $135,000,000. F red D. C um m ings of th e D rovers N ational B ank in Chicago, and w ell know n to ban k ers th ro u g h o u t th e m id dle w est, has enlisted in th e N avy and is already p rep arin g to “jab th e Ja p s” and help to exterm in ate an y o th er of H itlers henchm en. F re d ’s m any .friends w ill certain ly w ish him all th e luck in th e w orld and a safe re tu rn . Incidentally, F re d is a nephew of W illiam C. C um m ings, p res ident of th e D rovers N ational Bank. It is estim ated th a t 1,000 000 loans w ill be m ade before March 15th for people w ho have to borrow to pay in come taxes. Of th e 10,800,000 w ho paid federal incom e taxes last year, n early 700,000 borrow ed m oney to do it. This, of (T u rn to page 63, please) 15 How W e Use Our Bank Advertising to Help O ur Customers Save and Succeed By E. W . Rossiter President, Bank of Hartington, Hartington, Nebraska One of the most interesting and original bank advertisers in the country is E. W. Rossiter, president of the Bank of Hart ington, Nebraska, and the author of this article. He uses his bank advertising to tell a real up-to-date story which he thinks will be helpful to his customers, his community, and his bank. That he has succeeded in all three endeavors is proven by the fact that, while he lives in a community of only 1,800 population, his bank has a capital stock of $25,000.00, has Surplus and Undivided Profits of $30,000.00, and Deposits of over $711,000.00. We asked Mr. Rossiter to write this article for the NORTHWESTERN BANKER, believing that it would be a real inspiration to our readers and give them some new advertising ideas which they also could use in their own localities.—Editor’s Note. T HAS been our practice to p rep are our ow n ads and le tte rs and tie th em in w ith th e th in g s th a t are h ap p e n ing. Now and th en , (w hen we get lazy) we use som e m ats from a firm w ho do a p re tty good job, too. An ad, “You Can R ead th e H an d w ritin g on th e W all,” w as used in Sep tem b er 1941. T he w eek it cam e out, we left for Chicago and th e A. B. A. convention. W e continued east on our trip and re tu rn e d some tw o w eeks later. In th e m eantim e, a new s item had g o tten into th e daily press an d we w ere asto n ish ed to find a stack of le tte rs on our desk com m enting on th e ad and ask in g for re p rin ts. F ran k ly , we h a d n ’t realized we h ad said a n y th in g th a t w ould in te re st an y one o u t side o u r ow n com m unity. But, on second th o u g h t, and from th e letters w hich cam e to us, w e realized th a t people all over th e n atio n w ere th in k ing th e sam e thoughts. In a p a rt of th is ad v e rtise m e n t we said: I “Make no m istake about it, you can now read the h an d w ritin g on the w all, so w e say GET OUT OF D EB T. “N ow , there is on ly one w ay to keep our com m un ity safe from disaster. T hat is to face the facts. N early every one m u st u se som e credit. B ut, u se it W ISE L Y . Be cau tious in m akin g debt. Be certain you can repay w h at you borrow w ith in a com p aratively short period of m onths. DO NOT SPE C U LA T E. Speculation leads to trouble, often tim es, ruin. “H elp in g our cu stom ers to g et th eir affairs on a safe basis—‘TO PU T THETR H O U SE IN ORDER’ before W A R * * * Not in 1942 Not next Thanksgiving. WAR IS HERE TODAY—NOW! ! ! * * * The Japs played a dirty trick. They sneaked up on ns— Caught us with our— Caught us by surprise. * ** Well— What did our Admirals and Generals Expect from the Japs? Did they figure Emperor Hirohito Should have whispered In their respective official ears Last Saturday night— “ We are going to make A surprise attack Sunday morning While you’re still in bed And nobody on watch." * ** No, that isn’t the way War comes. And it isn’t the way The next dépréssion will come. * * * Will you he caught by surprise— Then? Will you have “ put your house In order?" Will you have paid Your debts? Will you be ready for Whatever happens? * * * Or, will you get caught By surprise— And use the Japs As an alibi? Or the government? Or the banker? Bank of Hartington Hartington, Nebraska E. W. ROSSITER, President T he ab o v e a d v e rtis e m e n t o f th e B a n k o f H a r tin g to n a p p e a re d in th e local n e w sp a p e r th e w e ek f o l lo w in g th e a tt a c k on P e a rl H a rb o r. the crash com es—is forem ost in our plans. “In that connection, w e are goin g to exp ect the u tm ost cooperation on the part of borrow ers to m ake the m ost of th eir opportunity to ‘GET OUT OF D E B T ’ in the n ex t few m onths. The cu stom er w ho can not ‘R EA D TH E H A N D W R ITIN G ON T H E W A L L ’ and recognize the w isdom of th is ad vice isn ’t a cu stom er any bank can serve safely in th ese tim es.” We have tw o good w eekly new spa pers. W e use both of them . Some tim es, we th in k too few banks give th e ir new spapers th e patronage they should. W hile we are the only bank in our tow n—county seat—1,800 popu lation — w e thin k our a d vertisin g ex penditure is the best m oney w e spend. The w eek of th e attack on P earl H arbor, we published th e ad v ertise m ent entitled “W a r” and w hich is re produced w ith this article. In presen tin g our statem en t at th e end of th e year, we also m ade th is com m ent in our local new spaper ads: “Our bank is here to serve. B ut, w e urge you to be cautious about m aking debt. G ETTING INTO D E B T IS EASY. TH E BIG ‘TRICK’ IS TO GET OUT—once you g et in. Our exp eri ence equips u s to help you. H ow ever, w e can do a m uch b etter job for you if you w ill advise w ith us before you go in. Tn any event, in th ese tim es, be v ery sure you can repay Avhat you borrow in a com paratively few m onths. TH E O N L Y T H I N G ‘C E R T A IN ’ ABOUT T H E F U T U R E IS TH E ’U N C ER TA IN TY ’ OF EV ER Y TH IN G . (T u rn to page 40, please) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 Recover Forged C heck? A N EM PLOYE of a h ard w a re con cern in N o rth D akota p resen ted a negotiable in stru m e n t to a b ank in th a t state. The in stru m e n t w as payable to th e h ard w are concern and th e em ploye sought to endorse it on behalf of his em ployer and obtain certain funds thereon. W as th e sim ple fact th a t th e in stru m e n t w as in th e possession of ' th e em ploye suffi cient justification for th e b ank to tre a t w ith th e em ploye as tho u g h he w as au th o rized to endorse it? No. The mere possession of a nego tiable instrum ent by an employe of the payee gives rise to no presumption that the employe is authorized to en dorse it on behalf of the payee. M axwell forged th e p ayee’s nam e to a check in N o rth D akota and cashed it a t a b ank there. The b an k collected on th e check from th e b an k on w hich it w as draw n. N eith er b ank k new of th e forgery and th e ir actions re g a rd ing it w ere all in th e usu al course of business. S hortly th e re a fte r th e for gery w as discovered and th e draw ee b ank sought to recover from th e col lecting bank. Could it, as a g eneral proposition, do so? Yes. Generally, a hank on Avhich a cheek, cashed by an oth er bank on a forged en d orsem ent of the p ayee’s nam e, is draw n m ay recover from the co llectin g bank the m oney paid on the check in the due course of b usin ess. T hro u g h clerical e rro r a tw en ty pay m en t life in su ran ce policy w as issued to Jones in N ebraska w hich provided for too g re a t a cash se ttle m en t a t th e end of tw e n ty years. W hen Jones sought to claim the am ou n t provided in th e policy th e in surance com pany sought to have the in stru m e n t reform ed on th e ground th a t a m u tu al m istake h ad occurred w ith reference thereto . Could it do so? Yes. Where, through clerical error, a tw enty paym ent life insurance pol icy provides for too great a cash settle ment at the end of tw enty years, the mistake is a mutual mistake in legal contemplation and the insurer is en titled to reformation of the policy if the reformation is sought as soon as 'Northwestern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 These and Other Timely Legal Questions A re Answered By the LEGAL DEPARTMENT recovery is attem pted by the insured of the greater am ount. A South D akota b an k foreclosed on a m ortgage it held on a farm there. The ow ner of th e farm obtained th ree extensions of th e redem ption period. He sought a fo u rth extension b u t a t th e h earin g th ereo n it developed th at, d u rin g th e previous periods g ran ted in w hich to redeem , th e m ortgage in debtedness had steadily m ounted; th a t such indebtedness exceeded th e value of th e property; and th a t th e m o rt gag o r’s chances of redeem ing w ere w holly conjectural. Should th e fo u rth ex tension be granted? No. A ccording to a recent South D akota suprem e court d ecision an or der gran tin g a fourth ex ten sio n to re deem from a m ortgage foreclosure sale is not w arranted w here, during the years p reviou sly granted in w hich to redeem , the m ortgage in debted ness had stead ily m ounted and a t th e tim e of the h earing on the ex ten sio n ex ceeded the valu e of the property, and the m ortgagor’s chance of redeem ing w as w h o lly conjectural. A n Iow a b an k er and his b ro th e r ow ned jo in tly a farm in th a t state. T hey appointed an agent to secure a te n a n t and otherw ise deal w ith it. One of th e b ro th ers died. Did th e au th o rity of th e agent term inate? Yes. The death of one of tw o or m ore jo in t principals term in ates the au th ority of an agent. Suppose, in th e preceding question, th a t th e tw o b ro th ers, in appointing th e agent, had specifically provided th a t, if one died, the agent w ould con tin u e to rep resen t th e other. In such circum stances w ould th e au th o rity of th e ag ent continue insofar as th e su r viv o r w as concerned? Yes. An agen t w ho has b een au thorized by tw o principals, one of w hom dies, con tin u es to be authorized to act for the su rv iv o r if the author ization of the su rvivor so provides. Stone and Snow opened adjoining farm s in Iowa. By m u tu al acqui escence th ey tre a te d w ith a certain line as th e boundary for over ten years. It w as not th e line fixed by g overnm ent survey. W as th e line dealt w ith by th em as th e tru e line binding on each of them ? Yes. A boundary lin e b etw een ad jo in in g lands in Towa m utually acqiesced in by ad join in g land ow ners for ten years becom es the true boundary, n o tw ith sta n d in g it is not the line fixed by g o vern m en t survey. A M innesota b an k er w as in ju red in an autom obile accident in th a t state as a re su lt of th e negligence of a n other. T he in surance carrie r for the negligent p a rty settled w ith th e b a n k er for his in ju ries and th e b an k er gave a release therefor. It subsequently developed th a t th e b an k er has su s tain ed a m aterial b rain in ju ry th a t no one knew had occurred w hen th e re lease w as given. T he release did not provide th a t it included un k n o w n in ju ries and it w as not intended th a t it do so. Could th e b an k er recover for th e b rain injury? Yes. W here a release is giv en for personal in ju ries in M innesota and su b seq u en tly a m aterial u nk now n in jury develops, it is not to be taken as coverin g such in ju ry u n less the par ties agreeing thereon ex p ressly and in ten tio n a lly settle for u n k n o w n in juries. A N ebraska b an k er w as appointed th e tru ste e of a tru s t estate in th a t state in circum stances w here no spe cific provisions w ere m ade in an y w ritte n or o ther agreem ent reg arding his com pensation and th e re w ere no sta tu to ry schedules controlling as to his com pensation. W hen th e tru s t w as w ound up, th e tru ste e presen ted a bill for his services. W as th e bu rd en of proof on him to show th ey w ere reasonable and proper? Yes. The allow an ce of com pensa tion for serv ices perform ed by a tru s tee for th e benefit of a tru st estate is (Turn to page 41, please) 17 H ow South Dakota Bankers M ake Better Farms and Farmers of th e goal set by th e Food for V ictory P ro g ram m eans th a t farm ers of th e n a tion have a job on th e ir hands. Food is essen tial n o t only for th e arm ed forces and defense p roduction of th is nation, b u t also for our Allies, an d we are su re th a t th e farm ers of th e n atio n w ill tackle th is problem and solve it, as th e y did in th e last w ar. The farm ers of South D akota staged a splendid recovery from th e d ark days of 1934 w h en d ro u g h t alm ost p u t th em out of business. T hey have learned to tak e ad v an tag e of im proved m ethods in a g ric u ltu re d u rin g th e p ast few y ears aided by th e State College and th e coordinating E x ten sio n Service. In creased in te re st and atten d an ce a t m eetings of such o rganizations as L ive stock Im p ro v em en t A ssociations and Crop Im p ro v em en t A ssociations have been noted. The State L ivestock Com m ittee, w h ich m eets a t least once a year, b rin g in g to g eth er th e v arious cat tle b reeding associations for unified effort, has had a w holesom e effect on th e situation. T he G reater South Da kota A ssociation, assisted by th e a g ri cu ltu ral ag en ts of th e railroads, th e E x ten sio n Service, th e m eat packers, the South D akota B an k ers A ssociation an d o th ers have all assisted in sta rtin g a m ovem ent for im proved p a stu re s an d th e g row ing of sorghum s for feed an d seed, th e la tte r being a d ro u g h t and g rassh o p p er re sista n t p la n t for use as feed and fodder. The statistics for th e y e a r 1941 on South D akota cash incom e from farm m ark etin g s are not available yet, b u t th e figures given below for th e first eleven m o n th s of 1941 em phasize the recovery m ade by th e South D akota farm er. G overnm ent figures show th a t sales By R. M. De Puy t t a in m e n t A Vice President and M anager N orthwest Se curity National Bank Brookings, S. D. Chairman Agricultural Committee South Dakota Bankers Association Brookings R. M. D E PU Y of farm products have risen from De cem ber 15, 1941 to Ja n u a ry 15, 1942 six points, m aking farm sale prices equal to one h u n d red tw o per cent of parity. Now, th e difficult problem w ith reg ard to farm production is to create th e necessary increase for w ar dem ands, and a t th e sam e tim e g u ard against a sh arp recession afte r th e w ar is over, a situ atio n w hich th re w ag ricu ltu re into th e depths of despair after the first W orld W ar. T herefore our Commit- SOUTH DAKOTA CASH INCOME FROM FARM M ARK ETING S January to N ovem ber, In clu siv e 1938 1939 1940 1941 Crops $ 17,960,000 L ivestock and LS P ro d u cts 58,729,000 1937 $ 19,973,000 $ 20,764,000 $ 30,278,000 $ 43,925,000 61,178,000 70,589,000 87,544,000 113,741,000 T otal . $ 76,689,000 Govt. P ay m en ts 14,916,000 $ 81,151,000 15,297,000 $ 91,353,000 18,991,000 $117,822,000 18,355,000 $157,666,000 8,434,000 $ 96,448,000 $110,344,000 $136,177,000 $166,100,000 TOTALS . $ 91,605,000 (Please note th a t G overnm ent P ay m en ts are dim inishing as conditions im prove.) tee has advocated b e tte r q u ality stock, w hich could be im proved by b etter sires, even th o u g h used w ith grade fe m ales. B etter feeding m ethods also w ould create increased production w ith o u t th e addition of m ore anim als. B etter p astu re program s w ould m ake p astu res available earlier in th e spring and later in th e fall, th u s creating a low er cost of production. A nd last, b u t not least, g re a te r production of sorghum s, both g rain and fodder, thus, in su rin g against possible d ry years, as th is p lan t is v ery dro u g h t resistant. The A g ricultural Com m ittee of th e South D akota B ankers A ssociation has tak en an active p a rt in fostering the program s listed above, and rejoice w ith th e farm er in th e progress he has m ade to date. M any o th er activities are on th e p ro gram of th e A g ricultural Comm ittee. The com m ittee, by th e way, consists of eight b an k ers and is assisted by sixty-one county key bankers, one from each county hav ing one or m ore banks. T his arran g em en t gives the com m ittee and th e A ssociation direct contact w ith th e County A gent and farm ers of each county. The ban k ers of th e State take an ac tive p a rt in 4-H Club and F u tu re F a rm ers of A m erica activities. M ost banks finance these young people in sow, lamb, ewe and beef projects, u su ally at reduced in terest rates. W e also endeavor to have th e key b an k er a m em ber of th e L and Use P lan n in g Com m ittee in each county to assist and keep in touch w ith its activi ties. W e advocate increased p o u ltry and tu rk e y raisin g u n d er th e supervision of experts. W eed control is an im p o rtan t activ ity as is grasshopper control, both be ing in our 1941-1942 program . D rought re sista n t crops, m entioned earlier, is an o th er project. B etter breed sires. T his is a pet project of m ine. A good reg istered sire even w ith grade cows w ill increase th e first y e a r’s offspring $10.00 or m ore in value. By continuing to use good reg istered sires the h erd can be b u ilt up to an astonishing degree. T his is tru e of all farm anim als. W e advocate an an n u al R egistered Sire Sale and E xchange Day, a t w hich the farm er (T u rn to page 37, please) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 18 W ould Freeze Branch Banking A P. DRUMMOND, Bonifay, F lo r ida, is th e new p resid en t of ♦ th e In d ep en d en t B an k ers Asso ciation. He w as advanced to th a t post from th e first vice presidency a t th e tw elfth a n n u al convention in St. P aul last m onth. Succeeding th e F lo rid an as first vice presid en t is C. P. Som m erstad of th e F irs t N ational B ank of W aseca, M inn esota. E lected to Mr. Som m erstad’s form er post of second vice p resid en t w as W. L. G regory of th e Plaza B ank, St. Louis. H a rry Lee of th e B ank of Long P rairie, M innesota, and Ben DuBois, Sauk Centre, M innesota, w ere re elected tre a s u re r and secretary, re spectively. E lected to th e executive council w ere George H erreid, Deep R iver, M innesota; V. E. M ikkelson, p resid en t of F id elity State B ank, M inneapolis, and C. F. D abelstein, R ochester, M in nesota. T he association w en t on record in favor of passage of th e P atm an bill freezing bran ch ban k in g and urged passage of th e R eed bill m aking a 48h o u r w eek legal u n d e r th e F a ir L abor S tandards Act d u rin g th e w a r em er gency. S upport w as pledged to the natio n al a d m in istratio n as well. Speaking at th e an n u al banq u et closing th e convention, Rep. A lber A. Gore of T ennessee, m em ber of th e THE FARM ER C A N DEFEAT IN FLA TIO N (C ontinued from page 12) is w h e th e r or not th e y w ill pay for them selves. B uildings to tak e care only of ex tra w ar production had best be tem p o rary and inexpensive. Most farm ers w ill do w ell to save ex tra in come, and w ait for m ore opportune tim es to build. M eanw hile, th e y can let th e g o v ern m en t use th e ir ex tra funds, by keeping th em in defense bonds. P rio rities affect m ach in ery also. B ut labor shortage and need for increased production m ake pu rch ase of some m achinery, w here available, im por tant. Can it be paid for d u rin g th e period w ar prices are likely to be in effect? The sam e poin t m ay be m ade w ith respect to th e pu rch ase of live stock. F a rm e rs should base th e ir plans on th e longer-run outlook. In short, a period of inflation is a good tim e for farm ers to get out of, or to reduce debt. It is a poor tim e N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 A. P. D R U M M O N D house banking com m ittee, urged pas sage of the w ar pow ers bill in con gress to forestall soaring in te re st rates and possibilities of inflation. “T his bill,” he explained, “w ould p erm it the F ederal R eserve System to p u rchase governm ent securities di rectly from th e T reasury. The F ed eral Open M arket Com m ittee th en could buy the T re a su ry ’s offerings w ith o u t com m ission to the dealer w hen th ere w as a w eak dem and on the m arket. to assum e any debt w hich w ill not be paid off before prices sag. The individual farm er can do considerable in th e w ay of trim m in g his sails to inflation, and t h e r e b y stren g th en g reatly his ability to w eath er the storm s, w hich are likely to follow. B ankers can be of m aterial aid to farm ers in th e ir efforts to do this. It m ay m ean th a t b an k ers w ill not m ake all th e loans th ey m ight possibly provide. B ut ban k ers are m ore con cerned w ith th e longer-run w elfare of th e ir farm er custom ers, th a n th ey are about im m ediate profits. Control of Inflation The second aspect of our subject takes us into th e m ore general field of control of inflation. D ebates and arg u m en ts over th e recently enacted price control legislation are still fresh in m ind. F arm ers probably do not appreciate fully th e questions raised in th e m inds of m any non-farm people over the stan d tak en by some, w ho w ere presum ed to speak for th e farm ers. T here also is room for doubting “W hen th e m ark et becam e stronger, the R eserve system could release its holdings. T hus th e m ark et could be stabilized at an in te re st rate agreed upon and m aintained by th e R eserve Board and th e S ecretary of th e T reas ury. I do not fear th is—I welcom e it.” One of th e highlights of th e conven tion w as th e ro arin g applause given Tsw en-ling Tsui, first secretary of th e Chinese em bassy in W ashington, w hen he concluded his address w ith: “Down w ith th e to ta lita ria n pow ers and to hell w ith Japan!” He told th e independent b an k ers the U nited States has followed an im p ar tial policy of fair play in th e F a r E ast —w hich m ade us a friend of China and an enem y of Japan. “The U nited States should not be too easily discouraged if victories do not come fast at first,” he advised. “China fought th ree y ears before she began to w in.” Otto B rem er, ch airm an of the board of A m erican N ational Bank, St. Paul, w as host to th e ban k ers at a D utch lunch and en terta in m e n t program the opening evening. T here w ere no o ther first-day m eet ings, w hile the second d ay ’s program did n o t s ta rt u n til afternoon in o rder to conflict as little as possible w ith the M innesota B ankers Conference, th en in session a t th e U niversity of M inne sota. w h eth er some of th e farm leadership w ere fully aw are of sim ilar questions in th e m inds of m any farm ers. One m ight also speculate on w h e th e r or ganized labor appreciates in full the state of m ind of farm people. One th in g w hich seem s ra th e r evi dent, is th a t a considerable share of our population does n ot as y et fully grasp w h a t a w ar such th e present, really involves. T here is still m ore th a n a little of th e belief th a t w ar p resen ts a g ran d o p p o rtu n ity to get rich. On th e surface w ar does appear to create prosperity. It stim ulates em ploym ent and production. Its dem ands stren g th en prices. It causes the n a tional incom e as m easured in dol lars to rise. W h at is seen less dis tinctly, if at all, is th a t w ar is de structive. T h at w ar, instead of creat ing prosperity, dem ands sacrifices. T h at w ar reduces our m eans to satis fy our w an ts and th ereb y reduces our level of living. T h at w ar is expensive, and th a t its costs in term s of m oney, (T u rn to page 41, please) 19 N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 20 Some of th e m an y floral tr ib u te s on d isp la y in th e lo b b y of th e C o n tin e n ta l N a tio n a l B a n k upon th e o ccasion o f th e fo rm a l o p e n in g of its n e w ly rem odeled q u a rte rs. 0p 6H H ouse at the Continental Continental National Bank, Lincoln, Nebraska, Completely Remodels Building and Banking Quarters F F IC E R S and directo rs of the rem odeled C ontinental N ation al B ank of Lincoln held “open hou se” last m onth, at w hich several th o u san d L incoln friends as w ell as ban k ers and business m en from m any o th er cities obtained a view of one of th e m ost beautiful and m odern b a n k ing hom es in th e country. F rom m o rn ing u n til late a t night, P resid en t T. B. S train and th e en tire congenial staff of officers, em ployees and directors acted as hosts to the v ast crow d w hich th ro n g ed th e ir rem odeled q u arters. The b an k w as a m ass of floral trib u tes from all over the country. Flow ers for th e ladies and cigars for th e m en w ere passed out in g reat q u a n ti ties. At noon and again in th e evening the local KFAB-KFOR radio station broadcast from th e b an k lobby, describ ing th e new q u a rte rs and interv iew in g a great m any of th e visitors. The day w as especially dedicated to th e sale of Defense Bonds and Stam os in coopera tion w ith th e L incoln and L an caster Com pany Defense Bond sales com m it tee. Lincoln has every reason to be proud O N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19b2 of th e C o n tinental’s rem odeled q u a r ters. T hey are b eautiful and m odern in every respect. M uch additional room has been achieved in various ways. Office q u arters, th e office of th e p res ident, and th e conference room have been m oved to th e re a r of th e m ain lobby. T his w as accom plished by changing the building elevator en tran ce from the cen ter to th e re a r of th e building. A dditional room s have also been m ade for the bookkeeping, th e rem ittance, th e proof, th e analysis, and m achine dep artm en ts on th e sec ond floor. In the m ain banking lobby, new low m arble and w aln u t cages have been installed. The safety deposit v au lt has been enlarged by th e addi tion of 500 safety deposit boxes, giving th e v au lt a capacity of m ore th a n 2,000 boxes and chests. In the personal loan d ep artm en t bevond th e offices’ q u arters, new w alnut fixtures have been installed. An a t tractiv e lobby connects th e m ain bank lobby and th e personal loan d ep art m ent. The bank has accom plished w onders in lighting effects from a stream lined system of in d irect lighting w hich is a com bination of incandescent and fluor escent lights. T he lighting effect is fu rth e r enhanced th ro u g h extensive w indow space. The b ank has eight large display w indow s, v ery wide and quite deep. These are to be used for attra c tiv e dis plays, and th e officers have already w orked out a n um ber of u n u su al dis plays to be used w ith co n stan t changes. AValls of th e m ain banking room are of w aln u t flexwood. T he conference room is of oak flexwood, and th e p res id en t’s office is finished in m ahogany flexwood. The b an k has fifteen cages, plus a statem en t counter, and is com pletely air conditioned th roughout. All paying and receiving cages are a t th e rig h t of th e en tran ce to th e m ain b ank lobby, and on th e left side are cages for statem ents, notes, drafts, and col lections and savings departm ents. The ceiling is accoustically treated, so th a t noise of any kind is a t a m inim um . On th e outside, th e u p p er floors of the C ontinental B uilding are of Bed- A B O V E — T he officers’ q u a rte rs in th e n ew ly re m o d e le d C o n tin e n ta l N a tio n a l B a n k of L in co ln , N e b ra s k a . C E N T E R — A v iew in th e lo b b y of th e C o n tin e n ta l, sh o w in g th e new lowty p e cages, a n d a t th e c eilin g th e sy s tem o f in d ire c t lig h tin g , w h ich is a c o m b in a tio n o f in c a n d e s c e n t a n d flu o r e sc e n t illu m in a tio n . B E L O W — T. B. S tra in , p re s id e n t of th e C o n tin e n ta l, in h is p r iv a te office. T he finish h e re is o f m a h o g a n y flexwood, th e sam e as used in o th e r sec tio n s o f th e b a n k in g q u a rte rs . ford stone w ith black g ra n ite for th e first floor. T his m akes a v ery pleasing contrast. The fro n t doors are of new bronze and are quite im pressive. The C ontinental N ational B ank is now in its th irty -th ird y e a r an d has tak en its place as one of th e m ost p ro gressive ban k ing in stitu tio n s in th e m iddle w est. T otal resources from its last sta te m e n t are $14,437,710.17, w ith deposits of $13,370,225.30. The b an k has a capital an d su rp lu s of $800,000, w hich includes a recen t $50,000 com m on stock dividend, and loans an d discounts have reached an im pressive to tal of m ore th a n $5,000,000. A strik in g fe a tu re of th e set-up of th e C ontinental N ational is th e y o u th of its energetic official staff, alth o u g h th e average experience of its officers is m ore th a n tw e n ty y ears each. Officers include: P resid en t, T. B. Strain; vice presidents, E d w ard A. B ecker, W. S. B attey, F re d S. A ldrich, and J. O. Peck; vice p re sid e n t and tr u s t officer, H ow ard H adley; cashier, C. W. B attey; a s sista n t cashiers, E lm er De K ay and H. E. L einberger, and a ssista n t tru s t officer, A. W. Griffin. T he board of directo rs B. S train, W. W. R utney, H a rry K. G rainger, M. E. A. B ecker and C. W. includes T. H. J. Amen, V. Beghtol, B attey. In h onor of th e form al opening, the C ontinental N ational B ank published and d istrib u ted a v ery a ttra c tiv e 20 page souv en ir booklet in th re e colors, w hich p ictu res and describes th e ir re m odeled b ank in every phase and in ev ery departm en t. Let Examiners Be Drafted B ank exam iners should tak e th e ir chances in th e d raft. T hey should not be g ra n te d special exem ption despite th e ir long y ears of special train in g . T his is not the tim e to g ra n t favors, say an overw helm ing n u m b er of b a n k ers of A m erica in a poll of opinion on th e perp lex in g subject of exem ption for these m en w ho play such a large p a rt in th e su pervision of A m erican banks. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 22 T he p ic tu re s ab o v e w ere ta k e n a t th e re c e n t m e e tin g s o f G ro u p s One a n d E le v e n a t Siou x C ity a n d B urlington. I n Sioux C ity , fro m le f t to rig h t, w ere Ralph M. W atson, p re s id e n t N o rth w e s t S e c u rity N a tio n a l B a n k , S ioux F a lls ; John H aas, N o rth e rn T ru s t C om pany, C hicag o ; a n d Carl Fredricksen, p re s id e n t L iv e S to c k N a tio n a l B a n k , S ioux C ity. T he c e n te r p ic tu re w a s ta k e n in B u rlin g to n . T hose p ic tu re d a re g ro u p e d b e h in d th e la rg e ta b le b e a u tifu lly d e c o ra te d a n d loaded w ith good th in g s to be se rv e d a t th e b u ffe t su p p er. A t th e r ig h t is A. J. B ertelsen a n d M. C. Eidsm oe, b o th o f Sioux C ity. M r. B e rte lse n is c a sh ie r of th e M o rn in g sid e S a v in g s B a n k a n d c h a irm a n o f G roup O ne; M r. E id sm o e is p re s id e n t of th e W o o d b u ry C o u n ty S a v in g s B a n k a n d p re s id e n t of th e S ioux C ity C le a rin g H ouse A sso c ia tio n . Said and Seen at Sioux City and Burlington Groups One and Eleven of Iowa Bankers Association Hold Annual Meetings Sioux City By CLIFFORD DE PUy Publisher H E m eeting of G roup 1 of th e Iow a B ankers A ssociation in Sioux City last m o n th w as th e b iggest m eetin g of its k ind in th e h isto ry of th a t w ell-know n city, as 552 registered. In 1941, 507 registered, and in 1940, 369. T his y ear th e re g istra tio n w as di vided as follows: 351 m en, 201 wom en, and from N ebraska 41, South D akota 24, and M innesota 4. T The R esolutions Com m ittee w as com posed of th e follow ing gentlem en: C. L. F redrick sen, president, Live Stock N ational B ank, Sioux City, Iowa, chairm an; H. W . B u sh, cashier, F a rm ers Savings B ank, Pierson, Iowa; C. E. Schneider, president, S ecurity State Bank, Sheldon, Iowa; J. A. Cook, cash ier, Le M ars Savings B ank, Le Mars, Iowa; C. A. Slife, cashier, F a rm e rs State B ank, H aw arden, Iowa. T his com m ittee b ro u g h t in eleven reso lu tions th e m ore im p o rta n t of w hich in cluded th e following: “W e u rge th a t th e b an k s and b a n k ers of th is group cooperate to th e ir N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 fu llest ex ten t in th e sale of defense bonds and stam ps. “The g overnm ent discontinue any u n n ecessary com petition in our field u n til the em ergency has passed, as th e re m ay be need at th a t tim e for increased em ergency help for business and labor. “W e recom m end th a t th e Iow a B ank ers A ssociation do w h at th ey can to have th e w age and h o u r law held in abeyance u n til 6 m onths after th e end of th e w ar. “W e again urge extrem e caution in th e m aking of sound loans and develop ing a sound in vestm ent policy, keeping in m ind th a t th ere w ill be an afterm a th to th is p resen t period. “W e p ro te st any effort to federalize th e u n em ploym ent com pensation act of th e various states th a t w ould de stro y th e principle of ‘m erit ra tin g ’ as contained in our respective state u n em ploym ent law s.” M iss N ellie M elheim of th e A kron Savings B ank w on first place in th e adding m achine contest w hich w as held u n d er th e auspices of th e Ju n io r B ankers organization. M iss M ildred Barb of th e Valley State B ank w on second place. J. O. W healon of the (T u rn to page 60, please) Burlington By HENRY H. HAYNES Edito r H E T H E R th ey rode th e ir bi cycles, as suggested by Ed E b ersole in his “P roclam ation,” or w h eth er th e y came by tra in or au to m obile or on foot, tw o h u n d red and th irty b an k ers and m em bers of th eir fam ilies jo u rn ey ed to B u rlington on F e b ru a ry 23 to a tte n d th e an n u al m eeting of Group E lev en of th e Iowa B ankers A ssociation. In 1941 th e reg istratio n totaled one h u n d red ninetysix—an increase of th irty -fo u r at the m eeting this year. Two candidates for the presidency of th e Iowa B ankers A ssociation a t tended th e B urlington m eeting—V. W . Johnson, presid en t of th e F irs t N a tional Bank, Cedar Falls, and B. A. Gronstal, presid en t of the Council Bluffs Savings Bank. T hey both sa t at th e head table at th e an n u al lu n ch eon and both m ade sh o rt talk s—not political speeches, how ever. Mr. G ron stal w ent on from B urlington to St. Louis, w here he visited th e oldest of his five sons w ho is stationed at Jeffer(T u rn to page 24, please) W 23 NEW 1 9 4 2 loWR-Nebraska BflfiK Directory Published by the NORTHWESTERN BANKER Des Moines T h e n ew 1 9 4 2 e d itio n o f th e IowaN eb rask a B an k D ir e cto r y w ill h e ready so o n . In it y o u ’ll fin d th e m o st c o m p le te and latest in fo r m a tio n o n Iow a and N ebraska h an k s, in c lu d in g p e r so n n e l, cap ital, su r p lu s, d e p o sits, lo a n s and d isco u n ts, b o n d h o ld in g s, c o r r e sp o n d en t h an k s and o th er v a lu a b le data. "Itu u f, Jlike. 9t" “An excellent directory.” B. C. Hewlett, cashier, First State Bank, Belmond, la. “We substitute your excellent directory for the large directory.” T. J. Poague, cashier, State Bank of Liberty, Nebr. It’s the best directory published and just the right size so one can carry it in the pocket daily.” H. J. Lamp, vice president, Bennett State Bank, Bennett, la. “Your bank directory is a very handy and complete book.” Sim Bonsall, cashier, Lexington State Bank, Lexington, Nebr. Iowa-Nebraska Bank Directory 527 Seventh Street Des Moines, Iowa _________________________ , 1942 Gentlemen: Please send__________ copies of your 1942 Iowa-Nebraska Bank Directory to us, and we will remit at the rate of $2 per copy upon receipt of your Directory. Use the handy coupon at the right Bank. Officer I I City__ State 'Northwestern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 24 A T BU RLIN G TO N (C ontinued from page 22) son B arracks. A no th er son w ill soon be called into th e service, and an o th er has ju s t registered. The m uch-heralded B u rlington Tea P arty, held th e evening of F e b ru a ry 22, w as indeed a gala affair, and w as sponsored by th e b an k s of B u rlington and H anna, K ram er & Company. W hile th e beverages served w ere som ew hat th e color of tea, th e resem blance ended there. F ollow ing th e generous consum ption of tea, w hich w as on a scale to gladden th e h e a rt of any C hinam an and give sclerosis of th e liver to the Japs, a delicious buffet su p p er w as served. Bedtim e w as an y w h ere from th en on u n til th e luncheon on Monday, depending on th e inclina tion of th e bedee. W hile it can’t be said th a t th e city of B urlington revolves aro u n d the huge G overnm ent m unitions p lan t lo cated there, the la tte r n ev erth eless ex erts a noticeable influence on the economic activities of the com m unity. Some ten th o u san d are em ployed at th e arm s plant, m any of th em being paid from $60 to $150 per week, and for m any of these w orkers th is is m ore m oney th a n th ey th o u g h t w as in the w orld—and th ey spend it accordingly. SpecialA+utauncement to-... f«TS " C *s«“ ' s A new, special agency contract FOR BANKERS ONLY has been worked out to help you. You have a very definite responsibility to your customers. Life insurance has never meant as much to the average in dividual as right now. He is entitled to your counsel about life insurance, and this special bankers contract makes such counseling worth your while. You will be pleased at what it consists of. Exceedingly liberal commission and renewals — worth while publicity— all guaranteed direct by a mutual legal reserve company, forty years old, of exceptional finan cial standing. Exceedingly low rates, ages zero to 65, in A w o rk er and his fam ily, probably on W PA a few m onths ago, is now pay ing $75 to $100 p er m onth re n t for a hom e in w hich to live, is glad to do it, and is king of all he surveys. P a tro l ling the big bridge leading into Illinois are m en in uniform draw ing th e ir $21 p er m onth—we w onder w h a t th ey th in k about as th ey w atch th e cars of th e m unitions p lan t w o rkers roll by. In his address to m em bers of Group Eleven, A rthur D onhow e, presid en t of th e Iow a B ankers A ssociation, said th a t w hile Iowa banks w ere in b e tte r shape th a n ever before in th e ir h is tory, th ey w ere probably w ondering w h at th e fu tu re w ould bring. B anks are going to be tested again, Mr. D on howe said, m uch th e sam e as th ey w ere tested follow ing th e last w ar, and he cautioned his listeners to be ready for w h atev er m ight come. “Build up y o u r earnings and keep y o u r capital stru c tu re in ta c t,” w as the advice M. W . E llis, Iow a su p erin ten d e n t of banking, gave to b an k ers of Group Eleven. He suggested an in crease in service incom e and a de crease in in terest paid on deposits, urg in g the application of a reasonable and adequate service charge in all de p artm en ts of th e bank. M. W . Fodor, E u ro p ean correspond e n t of a Chicago daily new spaper, having spent tw enty-tw o y ears on th e C ontinent p rio r to and du rin g th e p resen t w ar, talked on th e topic, “W hen G angsters Cooperate.” H igh lighted, his rem ark s w ere—you can ’t deal w ith g angsters on an honest basis, and th e Axis pow ers are all g angsters —th e F ren ch arm y lost p a rtly because it w as alw ays on th e defensive instead of th e offensive—th is w ar w ill be de cided in E urope, n ot in th e Pacific, be cause H itler is th e stro n g est and best fortified—in a few w eeks th e R ussians w ill be attack in g Jap an —th e n ex t th ree m onths are th e m ost critical for th e U nited States, our m orale m u st be m aintained because th e b e tte r our m orale th e sooner th e w ar w ill be over —all-out effort now is w h at counts. (T u rn to page 62, please) cluding the special policies your customers need at this time — mortgage coverage, retirement income, juvenile, etc. WRITE US EMPLOYERS MUTUAL IMMEDIATELY G u a r a n tee M utual Life C o CASUALTY COMPANY DES MOINES O R G A N I Z E D — 19 0 1 An Agency Company — Assets Over $4,000,000 A. B. OLSON, Agency Vice-President OMAHA, N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19h2 N E B R A S K A l L • A u to m o b ile In su r a n c e • W o r k m en ’s C o m p en sa tio n • G en era l L ia b ility • E le v a to r In su ran ce • P la te G la ss In su r a n c e How Banker Agents Can G et M ore Prospects UR objective is financial secu rity . The fact th a t so m any m en have becom e successful is due to no accident. It indicates clearly th a t th e y form ed certain w o rk hab its th a t assisted them g reatly in ev en tu ally reach in g th e ir goal. Successful m e n h a v e carefully w orked out a plan of procedure. U n successful m en often follow a m ethod th a t p ast h a b it dictates. It m u st be rem em bered th a t unless an agent is conscious of form ing p ro p er w o rk h ab its he is quite likely, unconsciously, to be form ing h ab its th a t re ta rd ra th e r th a n im prove his possibilities for suc cess. It is only logical th a t a tte n tio n be given to a p lan n ed procedure th a t will com plem ent his p re se n t habits. The ag e n t’s tim e m u st be conserved. His degree of success w ill depend upon how w ell his tim e is spent. If his hab its are co n stru ctiv e it n a tu ra lly follows th a t he w ill enjoy g re a t success. If his hab its are n o t constructive, his p ro b lem s in crease an d th e pro b ab ility of success dim inishes. M uch has been said and w ritte n about prospecting, about th e approach, m ethods and suggestions reg ard in g th e interview . Ideas th a t have real value. The im p o rta n t thing, how ever, is not so m uch a question of w h a t to do, b u t a clear, sim ple explan atio n of how one should go ab o u t doing it. Too m uch is tak en for g ra n te d as to th e ability of m an y of us to p u t ideas into action. I feel certain th a t those of you w ho have given tim e and stu d y to w ard im pro v in g th e w o rk h ab its of m en w ill agree th a t th e m ore sim plified the process th e g re a te r th e possibility of its being adopted and used success fully. T he first step in th e sales process is to locate desirable prospects. It is agreed th a t even a good salesm an w ill fail in our business if he calls upon poor prospects. If th e foundation of th e successful sale is based upon th e rig h t type of prospect, it is logical th a t we give careful th o u g h t to m ethods th a t w ill assu re us th e rig h t type of people to contact. I am confident th a t a m ajo r problem of so m an y ag en ts— th a t of prosp ectin g —can be overcom e if a daily, plan ned m ethod is em ployed O am ong th a t group th a t you feel you w ould like to know. If, a fter talking Manager to y o u r prospect, you find th a t you Bankers Life Com pany of Iowa cannot arran g e an ap p ointm ent w ith Minneapolis him , m ake an effort to replace him w ith th e p a rty selected. If you th o u g h t you knew th is p arty, it w ould be a m ost n a tu ra l th in g to say: “By th e way, w h a t’s th a t m an ’s nam e? He looks fam iliar to m e.” W e have k ep t a record as to th e n u m ber of prospects th a t are derived from th is source and we are averaging th ree out of every ten calls. Needless to say, business is resu ltin g from th is p artic u la r source of prospecting. It req u ires little tim e and little effort. The idea isn ’t new, is it? E v ery agent w ho has been in our business for any len g th of tim e know s of th e replacem ent m ethod. J u s t w h at are you doing about it? A nother lu crativ e source of securing prospects is th e interview . L e t’s briefly analyze a logical process of prospect ing th a t can be em ployed in y o u r daily interview s. Success, for th e average agent, req u ires a m inim um of tw o in terview s a day. O bviously one of two things take place. The prospect buys, or he doesn’t buy. L e t’s assum e, for exam ple, th a t th e prospect is sold. Ju st w h at prospecting sequence do you em ploy? W e follow th is m ethod: W hen th e application is signed, ask for re f erences. In asking for references ex plain to your prospect th a t you are in terested in being of service to him not only today b u t in th e future; th a t y o u r office has found th a t on occasion policyholders leave th e com m unity and overlook notifying y o u r office of th e ir new address. F o r th a t reason, “we R O B E R T E . SH A Y desire th e nam es of th re e acquain w ith regularity. P rospecting should tances, m en of about y o u r own age, not be spasm odic b u t should be a daily, so th a t should such a situ atio n ever consistent effort. If prospecting is so arise we will be in a position to con im portant, ju st w h at are you doing in tact you and ren d er you th e service th e w ay of a daily, planned procedure you are entitled to.” I m ig h t m ention th a t is m aking your job easier? It is th a t w e have, on occasions, ren d ered su rp risin g how effectively one can b e tte r service to our policyholders by prospect w ith little additional tim e re checking th ro u g h th e ir acquaintances q uired if a definite planned procedure in sim ilar situations. T here is no prob lem in securing th re e prospects is employed. As a suggestion, th e first m ethod of th ro u g h references, if th is m ethod is daily prospecting is the replacem ent employed. Secondly: Check th e m edical exam m ethod in your daily calls. W henever y o u r prospect is in an office w ith a ination for b ro th ers and sisters. If group of o th er people, select som eone y o u r prospect has a b ro th e r or a sister By Robert E. Shay N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 26 of in su rab le age, in q u ire ab o u t them w hen you deliver th e policy. Some ex cellent leads are derived th ro u g h th is m ethod. Third: A fter th e policy is in force, drive for prospects. C areful th o u g h t should be given as to ju s t w h a t to say in ord er th a t nam es can be secured upon delivery of th e policy. If y o u r prospect ap pears to be a type th a t w ould p re fe r n o t to cooperate w ith you, v isit w ith him for a few m inutes. You could in q u ire as to how m uch golf he plays—w ho he plays golf w ith, etc. L ittle tim e is req u ired b u t profit able resu lts can be obtained if you are co n stan tly conscious of prospecting. L e t’s assum e now th a t you did not m ake a sale. If y o u r in terv iew has been conducted in an in tellig en t m a n n er y o u r prospect profited in talk in g to you. On m any occasions conditions are such th a t he should n o t buy. Place yourself in his position and if you feel th a t he should not own w h a t you are p rese n tin g to him , tell him so. W el com e th e o p p o rtu n ity of advising y o u r prosp ect not to purchase, if you feel th a t his financial position doesn’t w a r ra n t an additional o utlay of m oney. Only recen tly I w as called by one of th e m en in m y office to discuss a m e th od of settlem en t on a $5,000 applica tion for insurance. In talk in g to th e p rospect I discovered th a t he now ow ned $7,500 of insurance, th a t he w as m aking $110 p er m onth and th a t he w as the sole su p p o rt of his m other and younger sister. It w as m y opinion th a t he w as doing a gran d job and ow ned as m uch life insurance as he could carry. I fran k ly told him so. The agent w as am azed. The prospect w as relieved. I drove for prospects. F ro m th is source eighty-seven nam es w ere received. Two sales have already resulted, and m ore are on th e way. The $5,000 lost sale paid real divi dends. E verybody profited. On m any occasions no ap p aren t reason can be seen for a prospect not acting. If, a fte r you have exhausted all possibil ities for a sale and it is quite obvious to you th a t he is no prospect, m ake su re th a t the tim e spent is valuable to you. He has profited by talk in g to you. You are entitled to some rem u n eratio n for y o u r tim e. Hence, you stand to lose n o thing in driving for prospects. A th ird suggestion reg arding a defi n ite p rospecting plan is th e cen ter of influence m ethod. W e all use th is m ethod of prospecting, b u t how defi n ite are we in its use? T he average agent w ill ru n sh o rt of prospects. He w ill th en devote a g reat deal of tim e in contacting centers. He is out of p roduction for a period, his m orale is Central S u r e t y a n d In s u r a n c e Corp or at io n R. E. McG INNIS, P residen t HOME OFFICE, KANSAS CITY, MISSOURI December 31, 1941 C a p i t a l .................................$1,000,000.00 Surplus ............................ $2,369,914.69 R e s e r v e s ............................ $6,228,385.42 Total Adm itted Assets PROGRESS . $9,598,300.11 DURING 1941 Net Premiums W r it t e n ..................................................$6,397,945.15 Increase in Net PremiumsW r it te n ................................ 1,142,499.04 Increase in Total Admitted A s s e t s ............................. 1,120,747.96 Increase in Total R e s e r v e s ............................................. 972,760.38 Increase in S u r p lu s........................................................... 147,987.58 Ca s u a lt y N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • March 19tâ F id e lity • Surety low, and he loses effectiveness in clos ing. In having a definite plan he elim inates one of his m ajor problem s. W e req u ire th a t tw o centers be contacted every week. P rep are in advance a list of leading questions th a t w ill assist y o u r cen ter in giving nam es. E x p lain to your center ju st how his nam e w ill be used. F o r exam ple, you could say: “T his is w h at I w ill say to any m an th a t you suggest to me: ‘I w as talk in g to a m u tu al friend of ours, Mr. Center, the o ther day and du rin g m y conversa tion w ith him he m entioned yo u r nam e. He d idn’t tell me th a t you w ere a prospect for life insurance, b u t he spoke of you in such a w ay th a t I w anted to m ake your acq uaintance.’ T h at w ouldn’t em barrass you, w ould it, Mr. C enter?” We have discussed only th e first step in the sales process—daily pro s pecting. You w ill agree th a t I have told you n o thing new. It isn ’t so m uch a question of how m uch know ledge you have b u t of how w ell y o u r know l edge is being employed. A planned procedure is th e end of confusion. L e t’s plan for financial security!— T H E E N I). Purchase Control of National Reserve Life H olm es Meade of Topeka, K ansas, and S. H. W itm er, H. O. Chapm an, W. J. H arris and The Policyholders N ational Life Insu ran ce Company, all of Sioux Falls, South Dakota, have purchased the in te re st of Mr. and Mrs. A. A. M cFall and th e Moore E state in The N ational R eserve Life In s u r ance Com pany of Topeka. Mr. Meade w ill rem ain in his capacity as p resi den t of th e com pany, and th e sam e conservative m anagem ent w ill con tin u e as in th e past. The officers of th e com pany, elected a t a special m eeting of the board of directors, are: H olm es Mead, p re si dent; S. H. W itm er, vice president; C. E. Kline, vice president; H. O. Chap m an, secretary-treasurer; M. B. McCaig, a ssistan t secretary; W. J. H arris, a ssistan t tre a su re r and actuary; J. L. Russell, supervisor of agents; R. E. Nelson, m anager farm and loan de partm en t; J. M. B arkes, m anager N a tional R eserve Building. The N ational R eserve Life In s u r ance Com pany is one of th e stro n g est in surance com panies in th e w est, an d on D ecem ber 31, 1941, had a capital of $550,000, su rp lu s $814,372, to tal re sources of $4,666,440.90. As one of K ansas’ ou tstan d in g in surance in stitu tio n s, Topeka and K an sas people w ill be glad to learn th a t it is to retain its personnel and office force and w ill continue as a K ansas 27 com pany. H. C. C hapm an, secretarytre a su re r, h as alread y established his residence in Topeka. Guarantee Mutual Statement The G uaran tee M utual Life Com p an y of O m aha has p ublished its 40th a n n u al sta te m e n t as of J a n u a ry 1, 1942, show ing in su ran ce in force of $147,920,495. T his is a gain in force of m ore th a n 8 V2 m illion dollars d u r ing th e p ast year. A dm itted assets in creased to $27,379,448, a gain of $2,141,011. S urp lu s funds above all liability now to tal alm ost $3,000,000. Reinhold Named Vice President T he P h ilad elp h ia N ational B ank a n nounces th a t a leave of absence has been g ra n te d by th e b an k to O. H o w ard W olfe, vice p resid en t an d cashier, at th e re q u e st of th e P hilad elp h ia O rd nance D istrict of th e U nited States A rm y. Mr. W olfe w ill be engaged in civilian w o rk in connection w ith the b u reau of personnel of th e Y. M. C. A. w ith th e A m erican E x p editionary Forces. H is b anking w ork began in 1899, w hen he en tered th e B ryn M aw r N ational B ank after atten d in g high school. A t th e age of 17, in 1899, he began w ith th e P hiladelphia N ational Bank, w here he continued u n til 1911, w hen he becam e th e first secretary of th e Clearing H ouse Section of th e A m erican B ankers A ssociation, serv ing u n til 1915, w hen he re tu rn e d to th e P hiladelphia N ational Bank, w h ere he becam e an a ssistan t cashier in 1915 and cashier in 1917. Follow ing his w ar w ork, he re tu rn e d to th e ban k in 1919 as cashier. In 1926 he w as elected vice presid en t of th e A. B. A. Clearing H ouse Section, and p resident in 1927, to w hich office he w as re elected in 1928. H is chief b an king educational w ork in recen t .years has been as an in stru c to r in com m ercial b anking a t th e G raduate School of B anking of th e A m erican B ankers A ssociation a t R u t gers U niversity, ever since its found ing, in w hich he w as a leading factor, seven y ears ago. He has also been active in local C hapter and national A m erican In stitu te of B anking w ork, and is a m em ber of th e extension com m ittee of th e F in an cial A dvertis ers A ssociation, in charge of develop m en t of publicity and good-will w ork on behalf of banking. Investigate t h e P o s s i b i l i t i e s of a W estern M utual C ontract ★ Legal Reserve Non-Assessable Fire and Auto Policies Backed by Plenty of Field Service to Help You Close the Business M IL T O N D. R E IN H O L D activ ities of th e P hilad elp h ia ordnance district. Mr. W olfe has resigned as cashier of th e bank, and M ilton D. R einhold, vice p re sid e n t of th e bank, w as a p pointed cashier, w ith th e title vice p resid en t and cashier. Mr. W olfe w ill sup erv ise th e g en eral ad m in istratio n of th e d istric t of fice of th e A rm y O rdnance D ep art m en t w hich has charge of negotiation, execution, inspection and acceptance of all ordnance supplies in th e region exten d in g laterally from H a rrisb u rg to T re n to n and so u th w ard to th e G eor gia state line. Mr. W olfe d u rin g th e first W orld W ar served as chief se cretary of th e ★ Write for W estern M utual's A g e n c y Proposition W estern M utual F ir e In s u ra n c e Co. 9th and Grand D es M oines, Iow a "O ver a Third of a Century of Safety and Service With Savings'' N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 28 150 Pounds of Pennies (See cover photo) Six y ears of religiously saving all th e pennies he received d u rin g th e course of a day finally b ro u g h t its r e w ard to V incent L um etta, p ro p rieto r of V incent’s F ru it S tand in St. Louis. F o r V incent h ad th e big th rill of w alking p roudly into th e bond de p artm e n t of M ississippi V alley T ru st Com pany and announced to J. F. Quigg, m anager, th a t he possessed approxim ately 19,000 pennies w hich he w an ted to in v est in U nited States O v e r the Top for Defense HOW TO PLAN YOUR LIFE INSURANCE IN TIME OF WAR you now have enough life in IfamFsurance protection to keep your ily on its fe e t financially in event o f your death, we do not urge you to buy more at this tim e but recom m en d that you p u t the m on ey you would norm ally invest in addi tional insurance into D efense Bonds. I f your fam ily is not so pro tected, it is your duty to your nation as well as to your dependents to do your best to insure against their becom ing a burden on others al ready carrying their fu ll share o f war’s burden. There is only one way to do this— through life insur ance. However, under today’s condi tions we suggest you approach the purchase o f life insurance differ ently than in norm al tim es. O f course the policy you buy should still fit your needs, and by no m eans should you disturb your present insurance. But in general, as between so-called “ investm ent” policies with high prem ium s and high accum ulations, and low-pre m ium policies with lower accum u lations, stressing life-long protec tion against death, we recom m end the latter to today’s buyer. P u t the difference into Defense Bonds. Your Government has first call on your current savings, and offers you a fair interest return. Several form s o f insurance pro vide life-lon g protection with a m inim um o f investm ent. Your NWNL agent will be glad to explain them , without obligation. He has an extra incentive to give you sound, unbiased counsel; he is paid prim arily not for his new sales but for the quality o f his service to policyholders, as indicated by their persistence in keep in g in force the insurance he has sold them . N o r th w ester n N ation al L ife IN S U R A N C E COM PA N Y O . J . A r n o ld , P r e s . N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M i n n e a p o l i s , M in n . March 19b2 H e re a re th e o ld est a n d y o u n g e st em ployes of M a n u fa c tu re rs T ru s t C om pany (in le n g th o f se rv ice ) b e in g c o n g ra tu la te d b y H arvey D. Gibson, p re s id e n t of th e b a n k , a f te r sig n in g up fo r th e p u rc h a se of D efen se B onds u n d e r th e b a n k ’s P a y ro ll S a v in g s P la n . L e f t to r ig h t: Richard N. Cotter, A s s is ta n t S e c re ta ry , who h a s b e en w ith th e b a n k 62 y e a rs ; H arvey D. Gibson, p re s id e n t; M iss E lla K lerk, page g irl, w ho jo in e d th e b a n k ’s sta ff on F e b ru a ry 9, 1942. A ll o f th e b a n k ’s 3,249 officers a n d em ployes sig n e d up u n d e r th is P a y ro ll S a v in g s P la n fo r a to ta l o f over $350,000 in D efen se B onds. defense bonds. “I am not a citizen— y et—b u t I w an t to do rig h t by the co u n try ”, V incent said. B ank guards w ere sent to his stand to collect th e 150 pounds of pennies, and the tre m endous task of counting th e coins w as tu rn e d over to th e b a n k ’s count ing m achine. A native of Sicily, V incent has been in th is country for 35 y ears and, ap p ro priately enough, on th e P re sid e n t’s birthday, Ja n u a ry 30th, he experienced an even bigger th rill, because on th a t day he becam e a citizen of th e U nited States. V incent says it w as “th e h ap piest m om ent of his life.” Those pennies th a t w ere left over after his purchase of th e defense bonds V incent donated to th e In fan tile P araly sis Fund. Service Sells Insurance... A gents and their policyholders like the m anner in w hich A llied Mutual g iv e s sam e-d ay attention to all insurance matters. Particularly p lea sin g is the prompt, fair, considerate service policyholders receive at claim time. It builds friends and builds business. ALLIED CASUALTY MUTUAL COMPANY Harold S. Evans, President Hubbell Bldg. Des Moines, Iowa 29 G0V6MIYI6ntS Still the Best Bet "There W ere Two Bright Spots in February— Continued Russian Success and Increased W ar Productivity at Home" The Month's Market Maneuvers Prepared for The Northwestern Banker By James H. Clarke d u ctivity at hom e. JAMES H. c l a r k e M acA rthur’s b r i l lian t stand in B a taan, the N avy raids on the M arshall and Gilbert Islands, the exp loits of A m erican p ilots in the F ar E ast w ere th rillin g—and the n ew spap ers head lined them day after day—but the cold truth w as that the Japanese gained all th eir principal ob jectives, excep t in the P h ilip p in es, and are m aking furth er ad vances as w e w rite this. The w e e k ended F ebruary 14th piled one disaster u pon another. The N ip ponese captured Singapore w ith o u t too m u ch difficulty— and w hile reports v a ry , it is possible th a t as m a n y as s ix ty thousand U nited N ation’s troops fell also. The fo rm er F ren ch liner N orm andie caught fire in N ew Y ork harbor and rolled over on its side— to lie there u n til it is righted and re paired. A severe loss to us at a tim e w h e n continued subm arine sin kin g s w ea ken our forces at sea. A n d as if to cap it all— three G erm an battleships escaped B rest, sailed thro u g h the nar row channel betw een E ngland and France to hom e ports. A n d there w ere m a n y other bits of adverse new s -—even a shelling of California— to test th e m a rk e ts fo r both bonds and stocks. T he investor, indeed, faces u n certa in ties such as have n o t confronted him before in over tw e n ty years. U nder conditions outlined above, it is only n a tu ra l to expect stocks to go low er—and th e y did. B ut not badly —a n d th e volum e of tra d in g in th e m a rk e ts w as at all tim es sm all. On th e first tra d in g day of th e m o n th th e Dow-Jones average for in d u stria l stocks stood at 109.11—and on th e last tra d in g day a t 106.79—a drop of only 2.32 points. T here w ere w ider, sw ings, of course. On F riday, th e tw en tieth , th e m a rk e t h it 105.10—off over four points from e a rlie r in th e m onth, a t th e low est p o in t for th e averages since 1938. T he volum e of sh ares trad ed a t Assistant Vice President American National Bank & Trust Co. Chic ago all tim es rem ained sm all—on th e te n th 640,000 exchanged hands, w hich w as th e high for th e m onth. On the seventeenth, w hen th e m ark et broke alm ost tw o points, only 390,000 shares traded. In short, despite low er prices, th e re w as little liquidation. A nd once again railroad stocks—w hich are car ried in th e ir own average group, as d istinguished from th e indu strials w hich we have been discussing—did well. D ropped less th a n th ree-q u ar ters of a point du rin g th e m onth. T here w ere tw enty-tw o days of tra d ing in F e b ru a ry —a sh o rt m onth w ith tw o holidays—and strangely enough th e m ark et scored advances on th ir teen days and declines on nine. B ut th e days of w eakness recorded the sh a rp er losses. As we w rite this article on M arch second th e m ark et is again w eak—too m uch new s today about th e invasion of Java. L et’s take a look at the bond m arket. The m ost im portant even t from the banker’s stand point Avas the offering on F riday the th irteen th of a billion and a h alf U nited States T reasury 2 X /4S due June 15, 1955—w ith an optional eall date in 1952. B ankers had been look in g for a split issu e—that is, part in a five y ear n ote and the balance in a m edium term bond—but th e T reas ury u p set calcu lations w ith its offering of ju st a bond. The p ricing of the issu e AAas also som ew h at unique. Com pared AAith bonds already outstand in g the ucaa" issu e w as w orth about a h a lf point over par—or p ossib ly a b it more —n ot enough an y w a y to encourage the “riders” w h o purchase only for a quick turn in the m arket. A s a result the issu e AAas over-subscribed on ly slig h tly more than three tim es— and subscribers received a thirty-tAvo per cen t allotm en t. M ost of th e banks held th eir bonds and in an absence of sellin g the m arket m oved up to p resen t prices around 100.22. A s lon g as the 2s of 1955/51 are supported around par for a tw o per cent y ield — the n ew 2 As should be able to hold p resen t Ica cIs . In short, you r cue on the 2A s is the m arket action of the 2s of 1955/51. W atch that. Longer term G overnm ents were easier in February. The long ta x able 2VzS of 1972/67 w ere off about ll/3 2 s w hile the p a rity ta x free 2 3As of 1965/60 sold dow n m ore than a point. E v e n in the m ed iu m term classification such as the 2Vzs of 1952/50, there w ere declines of better than three quarters of a point. W ith the G overnm ent apparently com m itted to a policy of financing the w ar at a cost of no higher than 2Vz%, it is not expected that prices w ill get out of hand— despite the huge am ount of financing to come. Practically all classes of bonds de clined during the m o n th — although the rails, aided by fine earnings, were p re tty w ell able to hold th eir price levels. A fte r the close of the m a rket today — M onday, M arch second, the granting of an increase of freig h t rates was announced. This should also help. M unicipals m oved up and dow n dur ing the m o n th , influenced by w ar new s, but also by the sharp contro v e rsy over th eir ta x status. M unicipal bonds as a w hole have proved the w eakest in this year’s m a rkets, long term g o vernm ents n e x t— u tilities have declined a bit, but the bonds w ith the greatest stigm a attached— the rails — have p re tty w ell held th eir oivn. Of the new corporate issues offered th is y ear—A labam a Bower Co. 3%s of 1972 have m ade th e b est record—still selling well above th e offering price. M ost of th e rest, how ever, are eith er selling below th e ir offering prices or are still in syndicate. It is likely th a t w ith num erous G overnm ent issues com ing into th e m a rk e t th is y e a r—and w ith financing th e w ar th e im p o rtan t thing, th a t corporate and m unicipal issues w ill be few. D u r in g th e n e x t tAvo or th r e e m o n th s th e ta x b ill w ill Arie AATith th e w a r n e w s fo r a tte n tio n . It a s a p p a ren t th a t ta x e s N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 30 for the n ext fiscal year w ill be sharply h igher—both for corporations and in d ivid uals—and those w h o do not start preparing for them early w ill be shocked w hen the p aym ent date ar rives. AVhat kind of a tax b ill w ill em erge in June is hard to gu ess. Prob ably there w ill be no sales tax, but m aybe there w ill be a w ith-holding tax at the source as the G overnm ent w ish es not on ly to get reven u es but to curtail b uying. W ith h igher taxes and sales of D efen se B onds it seem s th a t the G overnm ent is in a good p osi tion to siphon off m oney w hich m ight be used for other purposes. W ith THE P ublic National B ank AND TRUST COMPANY OF NEW YORK Service — M a in ta in in g an intim ate, personalized corre spondent bank service. Experience — Officials with years o f service in this field, assuring a know ledge o f re quirem ents and valuable as sistance. corporations w ork in g on Avar orders alm ost ex c lu si\rely, it is probable that profits w ill not he large—or if th ey are the ta x es Avill cut them dow n. U nd er th ese conditions it is difficult to get v ery op tim istic over com m on stock prices. A s to the bond m arket —w hich w ill be largely dictated h en ce forth by those w ho control our m oney p olicies—the b est bet appears to be— G overnm ents. w here he w as a ssistan t m anager of th e B rookings branch of th e N o rth w est Security N ational B ank of Sioux Falls, South Dakota. H e entered the b an king b u siness after grad u atin g from the U n iversity Accounts Increase D uring 1941 m em bers of th e Tw in City F ederal Savings and Loan Asso ciation increased th e ir accounts w ith th a t association over $3,300,000. Roy W. L arsen, vice presid en t of th e asso ciation, states th a t so far as th ey have been able to ascertain, th is is th e larg est increase in m em bers’ accounts on th e p a rt of any F ed eral savings and loan association in th e U nited States du rin g 1941. T otal assets of th e com pany are now alm ost $16,000,000. The association’s c u rre n t dividend rate is th ree per cent, w hich ra te has been paid continuously since 1936. The association has paid re g u lar sem i-annual dividends since its organization in 1923. Named Cashier The directors of th e Stock Y ards N a tio n al Bank, St. Paul, have nam ed J. G. M cG arraugh cashier of th a t in stitu tion, and have elected him to th e board to fill th e vacancy caused by th e recen t resignation of Jo h n M. Kane. Mr. M cG arraugh en tered th e em ploy of th e ban k five y ears ago and has served as a ssistan t cashier for the p ast th re e years. He cam e to South St. P aul from Brookings, South Dakota, j . G. M c G a r r a u g h of M innesota, and before locating at Brookings he w as em ployed by b an k s at Dupree, R apid City and Sioux Falls. His father, Mr. G. A. M cG arraugh, is vice presid en t of th e F irs t N ational B ank of The Black H ills a t S turgis, South Dakota. Bolsters Future Earnings A ccording to the U nited S tates Check Book Company, Omaha, m any m idw estern b an k ers are p lanning to install th e com pany’s “PAYC” (Pay- Out-of-Town Banks Policy — To cooperate with out-of-town banks rather than com pete for business w hich is rightfully theirs. O u t-o f-to w n banks and bankers w ill find here c o m p le te b a n k in g f a c ilit ie s fo r p r o m p t a n d eco n o m ic a l h a n d lin g o f accou n ts in C h icago. W e w o u ld appreciate th e op p ortu n ity o f serv in g you. R esources over $ 175,000,000 ESTABLISHED 1908 M EM BER NEW Y O R K C L EA R IN G H O U SE A SSO C IA T IO N FE D E R A L D E P O S IT IN SU R A N C E C O R P O R A T IO N C it y N a t io n a l AND TRUST 2 0 8 S O U T H COMPANY B of Chicago L A S A L L E ( Member Federal Deposit Insurance Corporation) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 a n k S T R E E T 31 As-You-Check) no - m inim um - balance checking account system in order to b o lster fu tu re earnings. Because of th e natio n al em ergency, m any a n tic i pate a drop in incom e from some of th e u su al sources. T hese far-sighted b a n k e rs believe th e “PAYC” plan w ill b rin g cu stom ers into th e b an k w ho are n o t ta k in g full advantage of th e ir b a n k ’s facilities. By reach in g out for th is m a jo rity group th e y w ill in su re a b e tte r p o ten tial incom e as w ell as cre ate a fine public re g a rd for th e ir posi tio n in th e com m unity. A ccording to th e check book firm, th e “PAYC” system is a public-m inded service w hich d em o n strates v ery pos itively th a t th e b an k is th in k in g in term s of th e cu sto m er’s needs and in terests. T he plan in stills a confidence in th e m inds of custom ers because it facilitates a m ore efficient h an d lin g of th e co m m u n ity ’s financial problem s. Over 100 m id w estern b anks have in stalled th e “PAYC” checking m ethod, re p o rt its originators. Lobby Display A six-foot “silv e r” coin illum inated w ith a V ictory “V ” is p a rt of a spec tac u la r display in th e lobby of The N o rth e rn T ru st Com pany in Chicago. The span of th e “V” is m ade of plate glass on w hich app ears a defense bond m essage of cut-out letters. On both sides of th e display are A m erican flags. T he staffs of th ese flags are socketed in th e base of th e ex h ib it from w hich Iowa Investment Bankers Elect FO W LER - W ESTPH A L - DEARTH H arry W estphal, m a n a g e r o f th e b o n d d e p a rtm e n t o f th e Iow a-D es M oines N a tio n a l B a n k , w as n a m e d p re s id e n t o f th e Io w a In v e s tm e n t B a n k e rs A sso c ia tio n a t th e 1942 a n n u a l m e e tin g o f th e o rg a n iz a tio n in D es M oines. O th e r officers e le cte d w ere F loyd D uncan, V ie th , D u n c a n & W ood, D a v e n p o rt, first v ice p re s id e n t; M. D. D earth, M urdoch, D e a rth & W h ite , D es M oines, second v ice p re s id e n t; Charles M arcellus, M cG uire, W elch & C om pany, D es M oines, s e c re ta ry ; a n d Sherman Fow ler, a s s is ta n t v ice p re s id e n t Iow a-D es M oines N a tio n a l B a n k , tre a s u re r. P ic tu re d above, fro m le f t to rig h t, a re M r. F o w ler, M r. W e stp h a l, a n d M r. D e a rth . and th e clim ax of th e program w as a forum on “F in an cin g V ictory and th e P a rt th a t the In v estm en t Secu rities B usiness Can Play in th e Job.” A n nouncem ent of th e program w as m ade by Jo h n S. Loomis, presid en t of The Illinois Com pany of Chicago, and ch airm an of th e C entral States G roup of th e In v estm en t B ankers Associa tio n of Am erica, u n d er w hose auspices th e m eeting, th e S eventh A nnual Con ference of th e C entral States Group, w as held. The “F in ancing V ictory” session w as held on th e second day, w hen th e en tire afternoon w as devoted to the subject. Officials of th e T reasu ry D ep artm ent and of th e T re a su ry ’s De fense Staff from W ashington and Chi cago w ere scheduled to p articip ate w ith rep resen tativ es of th e n atio n ’s securities selling business in a thor- BONDS Public U tility In dustrial horizo n tal fans provide enough flow to keep th e flags in re stra in e d m otion. T he lobby display is also d istin guished by posters from W orld W ar I, by th e b a n k ’s W orld W ar II service flag carry in g 40 stars, and by large and strik in g signs over th e en tran ces to th e lobby. The la tte r are airb ru sh ed to give a scu lp tu red effect. R a ilro a d M unicipal A.C.A L L Y N and c o m p a n y In corp orated 100 W est Monroe Street, Chicago To Finance Victory F irs t w ar-tim e g ath erin g of re p re sen tativ es of th e in v estm en t securities business w as held in Chicago recently, N ew York R ep resen tatives: M ilw aukee W aterloo Omaha D es Moines Boston Cedar Rapids N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 32 ough discussion of m eans w hereby th a t business can perfo rm its m axi m um p a rt in prom oting th e sales of securities to finance th e w ar. Promotions Follow ing the a n n u al m eeting of th e Board of D irectors of M ercantileCommerce B ank and T ru st Company, W. L. H em ingw ay, president, a n nounced th e follow ing ap p o in tm en ts am ong th e b a n k ’s staff of employes: Louis G. La B arge w as appointed a ssista n t sales m an ag er of th e bond d ep artm en t and Clarence F. Blew er w as m ade a ssistan t m anager. La Barge, w ho recently celebrated his fiftieth y ear in th e banking business, has been associated w ith M ercantileCom m erce since 1920. Blewer, w ho had previously been associated w ith financial houses in Chicago, has been w ith th e bond d ep artm en t of M ercan tile-Commerce since 1935. E dw in H. Bosse, Jr., w ho en tered th e ban k as a clerk in 1934, w as appointed assistan t statistician and R ichard J. W eidert, associated w ith th e b a n k ’s tru s t de p a rtm e n t since 1928, w as appointed a ssista n t tru s t officer. To Bancorporation It has been announced by J. F. R ingland, p resident of the Stock Y ards N ational Bank, th a t Jo h n M. Kane, cashier of th a t in stitution, w ill join th e official staff of the N o rthw est Bancorporation in M inneapolis. H is new duties w ill be of a supervisory n atu re. Mr. K ane joined th e staff of th e Stock Y ards N ational B ank in June, J O H N M. K A N E M E A T can be counted 1922. He w as m ade an a ssistan t cash ier in Jan u ary , 1936, and w as elected to th e position of cashier an d d irector in Jan u ary , 1941. D uring his associ ation w ith the Stock Y ards N ational B ank he has been v ery active in civic and local affairs. He is also well know n in b anking circles in th is sec tion. He is presid en t of th e M inne sota Safe Deposit A ssociation, and has particip ated actively in th e affairs of the A m erican In stitu te of B anking section of th e A m erican B ankers A s sociation, having served as presid en t of th e St. P aul C hapter in 1935-1936. He is an alum nus of th e G raduate School of B anking a t R utgers U ni versity. A n d Feed ’Em, Too? EAT PACKING is one o f A m erica's M greatest ind ustries. A n d th e m eat T h e C o n tin e n ta l I llin o is N a tio n a l B an k and T ru st C om p an y is proud to signalize th e ach ievem en ts o f another cap ital o f th e n a tio n is C hicago. C h icago’s p ack in g p la n ts h a v e an great in d u stry — one w h ich is ready a n n u a l o u tp u t w h ich is b y far th e to serve th e n ation alike in tim e o f greatest o f a n y c ity in th e world. peace and in tim e o f war. “1 m arried the seventh son of a sev en th son.” “T h a t’s lucky.” “I t ’s not lucky for me. My husb an d w ants to carry on th e fam ily tra d i tion.” On the Spot Continental Illinois National Bank and Trust Compaña O F C H IC A G O Member Federal Deposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March Í9b2 A farm er w as losing his tem p er tr y ing to drive tw o m ules into a field, w hen th e parson came by. “You are ju st th e m an I w a n t to see,” said th e farm er. “Tell me, re v erend, how did Noah get these c ritte rs into the a rk ? ” 33 Promoted Donald N ordlie, son of Mr. and Mrs. O. G. N ordlie of Litchfield, w ho entered th e S tate B ank of Litchfield last Sep tem ber as a bookkeeper, has been pro m oted to th e position of teller. M IN N E S O T A To Mankato NEW S 0 . G. JO N E S P re s id e n t E ed W in s Sanborn State Bank “W e had a v ery satisfacto ry y e a r,” says W. D. Yaeger, cashier, Sanborn State B ank, Sanborn, M innesota, “p ay ing a 10 p er cent dividend, increased su rp lu s to $25,000 equal to capital stock, w ith undivided profits at $13,000 and special reserv e a t $2,000. “Also co n trib u ted enough to th e tru s t to pay th is out 100 per cent. “D eposits increased $25,000 and loans $35,000.” Remodeling “W e are ju s t com pleting th e rem odel ing of our b an k in g room ,” w rites B. W. Lloyd, cashier, Citizens State B ank of Fulda. “W e have m odernized our te lle rs’ cages, added an ad ditional con su ltatio n room , have changed and en larged our space for officers’ desks and h a v e i n s t a l l e d fluorescent lights th ro u g h o u t th e bank. “W e feel th a t th is change w ill facili ta te th e w ork, w hich is heavy p a rtic u larly w ith th e additional w o rk of a s sisting w ith Selective Service Ques tio n n aires and A ppeal Affidavits and w ith th e h an d lin g of D efense B onds.” Finished G ood Year “N ineteen forty-one w as a v ery good y e a r for our b an k ,” says A. H. Jan sen , vice p resid en t of th e F irs t N ational Bank, Pipestone. “W e increased our su rp lu s fund from $100,000 to $200,000 and have $77,000 left in undivided p ro f its and $25,000 in special reserve. Our capital stock is $75,000. Flave also re m odeled our fixtures by cu ttin g them dow n and tak in g out th e b rass w ickets. T his is m uch appreciated b y our cus tom ers and ourselves as well. W e have a clear view of our b an k lobby from ev ery angle. “Our deposits have gone over th e $2,000,000 m ark. M any of our good ch attel secured loans are being liq u i dated and new loans are scarce. Our bank has m ade in stallm en t loans on autom obiles for m an y y ears and th is profitable business is also sh rin k in g and will be p re tty w ell elim inated w ith in th e n ex t 18 m onths. N ew farm m a W IL L IA M D U NCAN, J r . S ec re ta ry M inneapolis ch in ery can not be purchased as freely as heretofore and tra c to r loans w ill also be few er from now on. T hey also have proved to be good loans. Our b ank has cooperated w ith th e im ple m en t dealers in purch asin g th e ir cus to m ers’ notes and we have found the business to be profitable because the farm er absolutely needs his tra c to r and m ust see th a t it is paid for.” Dies in Winona Sam uel L. P ren tiss, 79, pro m in en t in b an king and active in several in stitu tions in W inona for m any years, died of pneum onia recently. He served as presid en t of the Deposit B ank of W inona before it m erged w ith th e F irs t N ational B ank in 1927 and had been presid en t of the n o rth e rn co rporation since 1928. Open New Quarters The F arm ers and M echanics Savings B ank of M inneapolis opened its new ban king q u arters recently at Sixth and M arquette Avenue. F o r the p ast 50 y ears it has been lo cated at 115 South F o u rth Street, and d u ring th is tim e not only have deposits increased from $5,000,000 to $68,000,000, b u t also th e b anking operations have steadily expanded. The F arm ers and M echanics Savings B ank is th e only m utual savings bank in M innesota. It w as founded in 1874 w hen M inneapolis had a population of only 30,000 and, like th e city, th e ban k has enjoyed a steady grow th ever since. Its assets now am o u n t to n e a r ly $74,000. H en ry S. K ingm an is its president, and T hom as F. W allace is ch airm an of the board of trustees, and th e o th er officers are: C avour S. Langdon, A lfred F. Pillsb u ry and Jo h n Crosby, vice presidents; George G. Cowie, secretary; H erm an J. L andquist, Jo h n L. Larson, P. D. E sau and Jo h n de L aittre, assistan t secre taries; A lbert H. Crosby, treasu rer; A. W. Geggie, W. A. K ram er, R. L. D avid son, H. J. A rnott and L ow ry S. Moore, a ssistan t treasu rers, and Sam uel P. M artin, auditor. L eonard K allestad, a ssistan t cashier of th e F irs t and F a rm e rs N ational Bank, Blue E a rth , has accepted a posi tion as au d ito r of th e F irs t N ational B ank of M ankato. T his is an advance m ent, since th e M ankato b an k is one of th e larg est in th e so u th ern p a rt of th e state. He took over th is new posi tion F e b ru a ry 15th. A native of E l m ore, K allestad has been a resid en t of Blue E a rth m ost of his life and has been associated w ith th e b an k th ere for 14 years. Limits Raised The S ecurity State B ank of Glencoe is now in th e process of raisin g its deposit lim it from $60,000 to $1,000,000. W hen th e b ank first opened its doors to th e public, $600,000 w as set up in the original articles. The b a n k ’s business has grow n so m uch th a t it has become necessary to enlarge its corporate set-up. A ccord ing to S tate B anking Law s, a b an k is p erm itted 25 tim es th e total of its su rp lu s and capital stock. L ast D ecem ber th e b ank raised its su rp lu s to $20,000, w ith th e capital stock rem aining a t $25,000. D uring the p ast q u arter, it increased its total deposits $14,000. Cashier Resigns Ed. Losensky, em ployed as cashier of th e State B ank of M ahtowa, has re signed his position. Chas. P eterso n of M ora has been en gaged to fill th e position for th e tim e being. Miss F aye H ecker w ill continue in h er position as a ssistan t cashier. Ulen Stockholders of th e N o rth w estern State B ank of Ulen held th e ir ann u al m eeting recently, electing E d Hekm an p resident for th e com ing year. V ictor H anson, vice president; A. J. A ndersen, cashier, and A rth u r J. A n dersen, Jr., a ssistan t cashier, w ere o th er officers nam ed by th e group. Lake Park Officers and directors of th e Lake P a rk State B ank have been re-elected. T hey are O. B. R usness, president; H en ry Torgerson, vice president; Mel vin A. Rogness, cashier, and P aul Tw edten, a ssistan t cashier. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 34 •MINN ESOTA A ccepts New Position M. E. Lageson, w ho has been em ployed in M innesota b an k s since 1920, has joined th e staff of th e A ustin State B ank as a teller. Mr. Lageson, w ho has w orked for th e p ast th re e y ears in th e H astings N ational B ank a t H astings, took up his new d uties in A ustin last m onth. H is b an k in g experience includes em ploym ent in tw o B ancorporation b anks in th is area. F rom 1920 to 1926 he w as em ployed a t th e B ank of Ellendale. NEWS F ro m th ere he w en t to th e O w atonna S ecurity B ank and T ru st Com pany at O w atonna w here he w as em ployed for seven years. Remodelling Completed Its q u arters rem odeled and re fu rn ished, th e F irs t N ational B ank of V ir ginia ra tes as th e m ost m odern in sti tu tio n of its k in d on the Iro n Range and probably in th e w hole n o rth e rn M innesota section n o rth of D uluth. The bank has form ally announced • the com pletion of a $15,000 rem odeling program th a t enlarged its business and w orking q u arters and m odernized its facilities to add convenience for pa tro n s carry in g on business tra n sa c tions at th e institution. Red Lake Falls A t th e an n u al m eeting of th e Red Lake County State B ank of Red Lake Falls all officers w ere re-elected. T hey are J. L. Pete, president; Jo h n J. Asiala, first vice president; Joseph F. Skala, second vice president; W alter Johnson, cashier; R. W. P erras, assist a n t cashier; A rm and Benoit, a ssistan t cashier; Joyce Phalen, teller, and lone Helm , bookkeeper. To Increase Capital The products of seed and soil have always been essential to the sustaining of human life. . . . In the present Defense emergency Minne apolis-Moline Modern Farm Machines are helping to keep this essential flow of food and fibre uninterrupted. . . . But the call is for in creased production on ALL farms; and here the local banker and MM Dealer have a con tribution to make. By extending ''credit'' to deserving farmers for more MM machines where needed, the farm hands being with drawn for Defense can be replaced and yet production stepped up to maximum. . . . The MM line of tractors and machines is one of the most complete and most modern in the world. By putting more of this power to work you will not only be helping Uncle Sam but helping yourself and stimulating business for your en tire community. . . . To those who do not need new Machines this year we suggest that you encourage them to keep their machines in good repair and buy needed parts early. It w as decided to increase th e capital stock of th e S tate B ank of L ucan to $25,000 and officials w ere in stru c te d to take the necessary steps at th e ann u al m eeting of stockholders of th e organ ization recently. The increased volum e of business and th e earnings of th e in stitu tio n w ere rep orted as v ery satisfactory and p resen t directors w ere re-elected for 1942. W. H. Z im m erm an is president, H. W. Jefferson, Jr., vice presid en t and A nton K ram er, cashier of th e or ganization. Zumbrota T he an n u al m eeting of the stock holders of th e F a rm e rs S ecurity State B ank of Z um brota w as held recently w ith a good re p resen tatio n of the stockholders present. Senator A. J. Rockne presided. The financial re p o rt show s th is has been a good y ear w ith deposits to ta l ing about a m illion dollars. The follow ing w ere elected directors w ho w ill m eet later to organize: Sena to r A. J. Rockne, C. K. Clem entson, J. N. B anitt, O. M. Nordvold, J. E. Korsten, H G. Hoven, B aldw in Reppe. Cashier at New Bank Invest in Defense Savings Bonds and Stamps " Keep ’em Flying!” M i n nI M PeL EaM EpN oT lC Oi MsP-A NMY o l i n e POWER N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 Jo h n D ragavon, a ssistan t cashier at th e F irst N ational B ank of Ely, has been appointed cashier of th e new ly organized Tow er S tate Bank. Mr. D ragavon has been connected w ith the E ly bank since 1934. Bank Stocks.. Bank Positions P o s itio n s a v a ila b le in m id d le -w e stern s ta te s fo r m en and w om en w ith b a n k in g e x p erien ce as c ash ie rs, a s s is ta n t cash ie rs, te lle rs , book keepers, and sten o g rap h e rs. M in o rity and c o n tro llin g in te re s ts in ban k s sold con fid en tially . W. R. OLSON CO., F erg u s F a lls, Minn. 35 T w in C ity N e w s G eorge w . p . h e f f e l f in g e r , M inneapolis, vice p resid en t of F. H. P eavey & Com pany, w as elected a d irecto r of F irs t B ank Stock C orpora tion at th e a n n u a l m eeting of stock holders in M inneapolis. A t th e d ire c to rs’ m eeting w hich fol lowed, all officers w ere re-elected, w hile A. R. M oorhead w as nam ed a s sista n t tre a su re r, and a dividend of 30 cents a sh are w as voted. T he dividend w ill be payable A pril 1st to stockholders of record M arch 16th. T he co rp o ratio n ’s th irty -fo u rth dividend, it am o u n ts to approxim ately $865,000. S tockholders approved red u ctio n in th e b an k holding com pany’s issued capital from $30,000,000 to $29,000,000 by re tirin g 100,000 sh ares of capital stock prev io u sly pu rch ased and held in th e treasu ry . In his re p o rt to stockholders, C. T. Jaffray, ch airm an, pointed o u t F irs t B ank has o perated th ro u g h one of th e JA M IE S O N & CO M PAN Y Stocks Bonds Grain q Cotton Butter Eggs C om m odity Brokers • Members N ew York Stock E xchange and Other Principal Exchanges • ST. PAUL — MINNEAPOLIS • G overnm ent — M unicipal Corporation Bonds • CHARLES C. RIEGER Manager Bond Departm ent Minneapolis — Atlantic 8235 __ __________________________________ By James M. Sutherland Specia l C orre spon de nt m ost try in g periods in th e h isto ry of A m erican banking. N et operating earnings of the cor poration, its banks and active affiliates from 1930 th ro u g h 1941 totaled $41,458,000, and average of $1.14 p er share annually, he said. Since its organiza tion in 1929 it has paid $19,800,000 in dividends, exclusive of th e one ju st voted. “Since 1934 th e building and fixture accounts of our affiliated banks have been reduced from $10,000,000 to $6,000,000,” he said. “In th e sam e period th e banks have accum ulated a su b stan tial appreciation in th e ir bond accounts in w hich g overnm ent bonds in the aggregate are today carried on th eir books at less th a n p a r value.” O ther officers reelected, beside Mr. Jaffray, are A. H. K ennedy, president; R. C. L illy and L. E. W akefield, vice presidents; H. W . M artin, treasu rer; L. B. H ogue, secretary; M. A. Cooley, a ssistan t tre a su re r, and L. O. Fredell, a ssistan t secretary. All directors of N o rth w est Bancorporation w ere reelected at the th ir te e n th an n u al m eeting in M inneapolis. In o th er actions, th e stockholders approved purchase of supplem ental re tire m en t an n u ities by affiliated banks, am ended th e certificate of incorpora tion to give directors a u th o rity to adopt or am end re tire m e n t plans and to approve re tire m e n t plans of affili ated institu tio n s, and am ended by-laws to provide for indem nification of di recto rs in certain cases. D irectors w ill m eet later to elect officers. Several M innesota b an k ers w ere elected officers and tru ste e s of th e M inneapolis F oundation, a non-profit organization adm in isterin g bequests for charitable purposes. H enry A7. B ruchholz, vice p resident and secretary of F irst N ational B ank & T ru st Company, w as elected tre a s u rer, w hile Leonard A. \ 7on E seh en y also of F irs t N ational, w as nam ed sec re ta ry and a ssistan t treasu rer. Mr. B ruchholz, Stuart W . AATell.s and A. E. A\7ilson w ere am ong tru stees re elected, w hile ban k ers nam ed to th e executive com m ittee included C. R. C haney, R obert W . W ebb and H. B. Thrall, along w ith Mr. B ruchholz. P u t an “Inc.” after th e nam e of the For the organization has com pleted incor poration u n d er M innesota law, it w as announced at the an n u al m id-w inter p a rty in M inneapolis. (See next page) T w in City Bond Traders Club. YOU ARE A SELECT RISK This makes it possible for you to secure high grade insurance at about half the usual cost. Thousands of bankers all over the country carry our accident and health insurance. You are a better citizen with your income protected. Insurance paid up to Sept. 15th for only $2.00. Write for lit erature and applications. Minnesota Commercial Men’s Association 2550 Pillsbury Ave. Minneapolis, Minn. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 36 • MINNESOTA F ed eral R eserve B ank of M inneap olis has m ade several prom otions af fecting ju n io r officers, according to an nouncem ent by John N. P eyton , p resi dent. A. W. M ills, auditor, w as m ade cash ier and secretary. H arold C. Core, a s sista n t cashier, w as nam ed p ersonnel officer. Two new assista n t vice p resi dents are Otis R. P reston, fo rm er as sista n t cashier, and H arold G. McCon nell, m an ag er of th e discount d e p a rt m ent. E arl B. Larson, m an ag er of th e fiscal agency d ep artm en t and W alter Turner, NEWS m an ag er of th e check collection de p artm en t, now are a ssistan t cashiers. M ilford E. L ysen , planner, w as m ade o perating research officer and Orthen AAT. Ohnstad, m anager of th e au d it de p artm en t, w as nam ed auditor. A fter m ore th a n a y ear as head of th e M inneapolis office of th e division of co n tract distribution, now u n d er the w ar production board, H. C. Timberlake has re tu rn e d to his form er post as statistician a t M inneapolis F ederal R eserve Bank. T im berlake w as placed in charge of th e co ntract distrib u tio n “T h e B a n k at th e Y ard s” “ All-O ut 55 Service All-out correspondent service is the rule at the Livestock N ational Bank in Sioux City. If your item s cover livestock, h a y or grain, our location in the Stock Yards insures the quickest of service. A nd— if it's a dow n-tow n item, rem em ber, w e can serve yo u e q u a lly w ell ANYWHERE in the Sioux City area. O F F IC E R S C. L. F re d ric k s e n , P re s id e n t M . A. W ilso n , V ice P re s id e n t W . G. N elso n , A s s is ta n t V ice P re s id e n t W . C. Schenk, C ash ier H . C. L in d u sk i, A s s is ta n t C ash ier C. L. A dam s, A s s is ta n t C ash ier J. S. H a v er, A s s is ta n t C ash ier Jam e s L. S m ith , A u d ito r D IR E C T O R S C. R. M cK enna, P res., Jo h n so n B is c u it Co. B. L. Sifford, A tto rn e y , S ifford & W ad d e n G. F . S ilk n itte r, P re s id e n t, Sioux C ity S tock Y ard s C om pany C. L. F re d ric k se n , P re s id e n t M . A. W ilso n , V ice P re s id e n t H . C. B osw ell, S e c re ta ry -T re a s u re r, W e s te rn C o n tra c tin g C orp o ratio n Member Federal Deposit Insurance Corporation LIV ESTO C K N A T I O N A L <4 B A N K S I O U X C I T Y , IOWA N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 • w ork here w hen it w as first set up in the reserve b ank late in 1940. Suc cessor is W . R. Steph en s, local auto dealer. New chief exam iner of the M inne apolis C learinghouse is C. A. K nudson. He succeeds W illiam J. R egan, retired. B oth joined th e clearinghouse in 1915. A com m ittee rep resen tin g all phases of th e in v estm en t securities business in M innesota has been announced by A rthur 1). R eynolds, state ad m in istra tor, and O. J. Arnold, state chairm an, of the M innesota Defense Savings staff. The com m ittee w ill arran g e active particip atio n of th e en tire in d u stry in sale of defense bonds. M em bers are: H en ry 1). Thrall, p resid en t of T h rall W est Co., M inneapolis, designated de fense bond contact m an for the in v est m ent securities business in th e state; Charles C, Cook of G reenm an & Cook, St. Paul, and George E. Ostrom, N o rth ern N ational Bank, D uluth. The com m ittee w as nam ed join tly by th e In v estm en t B ankers A ssocia tion of Am erica, N ational A ssociation of Securities Dealers, Inc., and th e As sociation of Stock E xchange Firm s. More th a n 200 persons atten d ed the fo u rth an n u al M innesota B an kers Con feren ce at th e U niversity of M inne sota C enter for C ontinuation study. Co-sponsors w ere the u n iv ersity, the M innesota B ankers A ssociation and the state d ep artm en t of banking. Courses in the three-day m eeting in cluded: recen t economic trends, ag ri culture, securities, b ank operations, consum er credit, post-w ar econom y and a round table on incom e tax p ro cedure. L aurence R. L unden, a s s i s t a n t com ptroller of the u n iversity, w as general chairm an, as in previous years. Cyril B. F ph am , a ssistan t com ptrol ler of th e cu rrency. R. O. Jones, a ssist a n t vice presid en t of the U nion T ru st C om pany; -Pittsburgh, John J. D ris coll, Jr., P hiladelphia, and Dr. Charles C. F iclitner, chief of the division of regional economy. U. S. b u reau of foreign ’arid’d o m estic commerce, w ere out-of-town lecturers. O ther speakers w ere local bankers, g overnm ent offi cials and u n iv ersity faculty m em bers. The in v estm en t firm of M errill, L yn ch , Pierce, F en n er & B eane has m oved from its form er location at 704 M arquette A venue, M inneapolis, to new larg er q u a rte rs on th e second floor of R and Tower. 37 Celebrate 40th Anniversary SOUTH D A K O T A L. T. M O R R IS P re s id e n t W aterto w n NEWS G EO R G E M. S T A R R IN G S e c re ta ry -T rea su re r H u ro n D. S. Elliott Dies Increased Bank Clearings D ouglas S. E lliott, 47, a tto rn e y and a m em ber of th e board of directors of the N o rth w est S ecurity N ational B ank of Sioux Falls, died recently. D uring th e first W orld W ar he served in th e a ir corps as an aerial ob serv er an d w as overseas one year. F o r th e 29th consecutive m onth, A berdeen b ank clearings du rin g Ja n u a ry show ed a su b stan tial increase over the sam e period in 1942, figures com piled by Clayton W alker for the A berdeen Clearing H ouse Association, disclosed recently. Ja n u a ry clearings this y ear w ere $4,759,073.71, a gain of $76,791.53 over $3,682,282.18, w hich w as th e Ja n u a ry to tal in 1941. A t th e sam e tim e, figures released by th e M inneapolis Federal R eserve B ank show ed Ja n u a ry business activ ity in A berdeen show ed a 24 per cent gain over th e sam e m onth a y ear ago as reflected in th e city ’s ban k debit vol ume. The dollar volum e of bank debits re po rted by th e local banks am ounted to $6,895,000, best volum e for any J a n u a ry since 1921. B ank debit volum e rep o rted for the state show ed an a v e r age gain of 34 p er cent. Economist Speaks at Meeting George A nderson, Brookings, e x te n sion econom ist, and Jo h n N oonan, Cod ington county ex tension agent, w ere the sp eakers at th e a n n u al F a rm m eet ing of th e F arm e rs and M erchants B ank of W atertow n. S everal h u n d re d farm ers atten d ed th e m eeting, w hich opened w ith a lunch a t noon. Directors Meet The F e b ru a ry m eeting of th e direc to rs of th e B ank of K im ball w as held at K im ball w ith th e follow ing directo rs in attendance: Lloyd C ronholm , Ip s wich; L. M. L a r s e n , W essington Springs; Mrs. J. H. Drips, G ann Valley, and R. A. Johnson, Kim ball. Ben Jones of Ipsw ich, one of th e stockhold ers, also atten d ed th e m eeting. To Install " P A Y C " “PAYC” (Pay-As-You-Check) service for no-m inim um -balance checking ac counts w ill soon be installed by th e R oberts C ounty N ational B ank of Sisseton, South D akota, according to an an n o u n cem en t recen tly m ade by th e U nited States Check Book Company, Omaha. Officers of th e R oberts C ounty N a tional B ank are J. L. Caldwell, p re si dent; A. W. Powell, vice presid en t and cashier, and F. H. Kouba and M. L. A m bers, a ssista n t cashiers. F ree lite ra tu re and com plete in fo r m ation reg ard in g th e profit-building and good w ill featu res of th e “PAYC” checking plan w ill be sent to all b a n k ers w ho w rite, says th e Check Book firm. South Dakota Cooperates A t th e close of business D ecem ber 31, 1941, only seven states had qualified all th e ir banks as issuing agents for U nited States Defense Savings Bonds Series “E ,” announces South Dakota S u p e r i n t e n d e n t of B anks E rlin g Haugo, deriving his inform ation from a recen t le tte r of E. W. Sloan, execu tive director of th e defense savings staff of th e U nited States tre a su ry de partm ent. South D akota is th e only one of the six states in the n in th F ederal R eserve D istrict w hich has its banks qualified 100 p er cent in th e bond program , H augo advised. Bank Debits Increased B ank debits in W atertow n rose ap proxim ately $133,000 d uring Ja n u a ry as com pared to Jan u ary , 1941, accord ing to a com pilation of figures from both banks released recently. T otal debits du rin g the m onth w ere $4,257,000; a y ear ago th e sam e m onth th ey w ere $4,124,000, and for Decem ber, 1941, $5,900,000. The D akota S tate B ank of T ripp cel ebrated its 40th an n iv ersary last m onth, having been opened for active business on F e b ru a ry 1, 1902. It w as organized October 16, 1901, by Jam es F. Toy, p resid en t of th e Toy N ational B ank of Sioux City, Iowa, and G. N. Sw eetser and H en ry K latt, Jr., of Tripp. In 1906 Mr. Toy sold his in te re st to Mr. K latt, w ho served as p resid en t u n til his death in 1928. H is wife, Mrs. E m m a May K latt, assum ed th e p resi dency and his son, L. Roy, w ho becam e cashier in 1913, continued in th is ca pacity. The officers are: E. M. K latt, p resi dent; Oscar Brosz, vice president; L. Roy K latt, cashier; Chris Schm idt, as sistan t cashier, and K. G. K latt, assist a n t cashier. D irectors are: E. M. K latt, L. Roy K latt, K. G. K latt, M. W. Craig (Mrs. Jo h n H.) and Oscar Brosz. Bank Officers Chosen As a recent m eeting of the stockhold ers of the Security B ank and T ru st Com pany of M adison, business of the year w as review ed and officers chosen. L eonard Palm w as prom oted to a posi tion as a ssistan t cashier. Officers now include A. D. P ark er, president; Jam es A. Robson, vice president; E. J. Dirksen, cashier; F. H. E lbert, G. L. Scully and L eonard Palm , a ssistan t cashiers. The directors are A. D. P ark er, Oscar A. Olson, E. J. D irksen, Jam es A. Rob son and Jo h n E ngebretson. New Banking Hours The tw o V erm illion banks now w ill open at 10:00 a. m. and close a t 3:00 p. m., M onday th ro u g h Saturday. This change in b an king ho u rs has been m ade necessary in order to com ply w ith th e federal w age and ho u r law, according to ban k officials. U nder this law th e em ployes in b anking in stitu tio n s are on a 40-hour w eek basis. BETTER FARM S A N D FARM ERS (C ontinued from page 17) w ho cannot use his sire longer, or w ho has raised sires for sale, can, afte r the com m ittee has passed on its qualifica tions, b rin g it in for exchange or sale. The business m en in each county as sist the L ivestock Im provem ent Asso ciation in defraying the expense of the sale and exchange day. A nother Com m ittee project is: “A few sheep on every farm .” E xperience is the best teacher in inN orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 38 creased feeding and livestock raising. C onsequently we suggest grow ing into these new p rojects ra th e r th a n ju m p ing in deeply w ith th e possibility of losing everything. W e also have cam paigned for th e use of m ore lard to some exten t, and w ould go fu rth e r if th e pro d u ct w ere m ore standardized. Please do not get th e idea th a t we ask each b a n k e r to tackle all of these projects. B ut we do ask him to pick out those projects w hich are best adapted to his p articu lar com m unity, A no ther point is to get th e farm er to keep a set of books, and a n u m ber of b anks fu rn ish such books to farm ers free of charge. The U nited States D ep artm en t of A gricu lture is urg in g both ru ra l and u rb a n gardens. W ith th e possibility of rail tra n sp o rta tio n being given over to defense w ork, and com m ercial tru c k garden ing being curtailed by th e fact Sioux Falls Bank Remodels The N ational B ank of South D akota in Sioux Falls recently com pleted ex tensive rem odeling and redecorating of th e space devoted to its banking q u arters. The view at th e left show s th e lobby of the bank, looking tow ard th e safe-keeping d ep artm en t a t the rear. The p icture below illu strates a p a rt of th e officers’ q u arters, and several of th e te lle rs’ cages. Note th e new lowtype counters, and the n arro w w ickets for custom er service. The large w in dows in th e p icture face tow ard th e south. Officers of th e b ank are: President, W. E. Stevens; vice president, T. S. Harkinson; cashier, F. J. Cinkle; a ssist a n t cashier, Ole H. B ondhus. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19k2 th a t some Jap anese gard en ers have been tak en into custody as aliens, m ore and b etter gardens in th is a g ricu ltu ral state are v ery desirable. W e shall co operate in th is program . Our m em bers assem ble the statistics on banker-farm er activities by m eans of an a g ricu ltu ral record card an d at th e close of th e year we send th em a yellow sum m ary sheet on w hich th e inform ation is consolidated and sen t in to th e A g ricu ltu ral Credit D epartm ent of th e A m erican B ankers Association. Thus, a v ery com plete record is avail able at th e end of each year. D uring the p ast tw o years, South D akota banks rep o rted th ey loaned funds for th e purchase of 3,443 registered bulls, 1,080 reg istered cows, 3,811 registered calves, 159,681 grade cattle, 1,354 regis tered boars, and sows, 31,389 hogs, 6,937 reg istered ram s and ewes, 167,053 grade sheep. T his is a four h u n d red p er cent increase over th a t rep o rted th e previous tw o years. In cooperation w ith South D akota S tate College officials on D ecem ber 8 and 9, 1941, our Com m ittee conducted its first “A g ricultural C redit School” w hich, considering th e fact th a t th e P earl H arb o r incident occurred th e day before, w as v ery w ell attended. Fifty-tw o w ere reg istered a t th e m eet ing and all to w hom we talked seem ed to th in k it should be continued as an an n u al affair. Am ong th e subjects dis cussed were: “The A g ricu ltu ral Credit Situation in South D akota”; “The F arm C redit A d m inistration and Its Place in th e C redit F ield ”; a discussion of livestock raising and pro p er feeding by m em bers of the agronom y and anim al h u sb an d ry departm ents; “Re-Discount F acilities of th e F ederal R eserve B ank w ith R espect to F arm P a p e r”; “How to Get More Good A g ricultural Loans,” a panel discussion and “A gricultural C redit Data and Credit F iles.” A farm m an and w om an each gave th e ir view s of th e credit problem as seen by them . Also, am ong th e featu res of th e m eet ing w ere to u rs of various ag ricu ltu ral ex p erim ent projects of th e College and a rep o rt on th e resu lts of th e selinium (alkali poisoning) investigation. In a talk on “W h a t’s A head,” A. G. Brow n, m anager of th e A m erican B ankers A ssociation A g ricu ltu ral C redit De partm en t, gave a splendid su m m ary of th e m eeting and offered a nu m b er of tim ely suggestions to b an k ers and o th er credit men. I am sure th a t our farm ers w ill do th e ir share du rin g th e p resen t em er gency and am confident th a t th e banks in th e a g ricu ltu ral areas w ill extend every effort to cooperate. Our m otto now is “Produce for VICTORY.” 39 Banking Problems Discussed NORTH D A K O T A J . I. H E G G E P re s id e n t H illsboro NEWS 25th Anniversary The F a rm e rs S tate B ank of Richardton has renew ed th e te rm of its corpo ra te existence ex p irin g M arch 6, 1942, for a n o th e r 25 y e a r period, and in creased its capital stock to $20,000. On D ecem ber 18, 1933, th e to tal re sources of th is b an k w ere only $90,700.99. T h ere has been a rem ark ab le g ro w th of th e business of th e b an k since th e n so th a t a to ta l of $512,239.88 w as reached on N ovem ber 18, 1941, or an increase of 564 p e r cen t d u rin g th e eight y e a r period. D uring th is sam e period th e b an k has n ev er m issed a dividend for its stockholders, and a t th e sam e tim e in creased its capital stru c tu re from $18,836.24 in 1933 to $35,326.53 a t th e close of 1941. T he b an k b uilding (original cost about $25,000) is now carried at $5,000, fu rn itu re and fixtures has been w ritte n dow n to $1 and o th er real es ta te has been p ractically elim inated. The fixtures of th e b an k w ere rem od eled in 1941 to th e m odern low stre a m lined ty p e and o th er im provem ents m ade in b an k in g room s. Officers and d irecto rs of th e b an k are: F re d Born, p resident; Lee Hoff, vice president; Aug. Koesel, vice president; M ichael H oerner, director; I. E. Giedt, cashier; P. M. B urger, a ssista n t cash ier; C atherine N iehaus, a ssista n t cash ier, and F re d B irdsall, director. State Convention T he N o rth D akota B an k ers Associa tio n an n u al convention w ill be held at D ickinson, N o rth D akota, on F rid a y and S aturday, Ju n e 12th and 13th. D ickinson and slope b a n k e rs g enerally will cooperate to m ake th is a n o u t stan d in g m eeting an d th e y ask th a t b an k ers from o th er p a rts of N o rth Da ko ta tak e th is o p p o rtu n ity of ren ew in g th e ir acqu ain tance w ith th e slope coun tr y and its ab u n d a n t supply of n a tu ra l resources. M ark y o u r calendars for Ju n e 12th and 13th. Banker Retires C. W. Clow of C avalier re tire d re cently as p re sid e n t of th e M erchants C. C. W A TT AM S ec re ta ry F arg o and F arm ers Bank, after 26 y ears of continued service w ith th e in stitu tio n . R. W. B laine w as elected presid en t at th e an n u al m eeting. January Debits M inot’s b ank debits totaled $6,325,000 in Jan u ary , an increase of 54 p er cent over Jan u ary , 1941, th e F ed eral Re serve Bank, M inneapolis, reported. T he volum e w as th e b est rep o rted for any Ja n u a ry since 1930. F o r N orth Dakota, b an k debits in th e m o nth of Ja n u a ry w ere 41 p er cent ahead of a y ear ago, w hile in th e N inth F ed eral R eserve D istrict, th e average gain for Ja n u a ry w as 30 p er cent. Since b ank debits for th e m ost p a rt are checks draw n by depositors against th e ir ban k accounts in p aym ent for goods, services and debts, b an k debit volum e for a locality is considered a good indicator of general business ac tivity. Fargo Meeting D irectors of G. N. D. A., m eeting in F argo recently, declared for all-out ef fo rts on th e p a rt of th e association in th e V ictory program . G. N. D. A. offered personnel and facilities to th e w ar program , food for freedom , increased livestock produc tion, p u re seed g rain distribution. “The com m ittee u rged th a t the' ag ri c u l t u r a l d ep artm en t accelerate its w ork to aid production for victory and efforts be continued to develop th e s ta te ’s n a tu ra l resources and to urge th e ir use in n ational defense,” says B. E. Groom, secretary and ch airm an of th e a g ricu ltu ral com m ittee. T he com m ittee voted to hold th e a n n ual w in te r m eeting of th e association a t G rand Forks; to particip ate w ith th e Pacific N o rth w est T o u rist A ssociation in th e prom otion of travel; to continue cooperation w ith local civic and devel opm ent organizations, to aid in defense u n d ertak in g s and in th e developm ent of w a te r conservation, irrig atio n an d to aid in plan n in g th e building of a g reat re se rv o ir of w o rk projects to cushion a fte r th e w ar unem ploym ent. Some 90 so u th w estern N orth D akota bankers, in a recen t m eeting, h eard discussions of everyday ban k in g prob lems, feeder loans, in stallm en t buying, wage and h o u r provisions, control of foreign funds, b an k sales of U nited States defense bonds, and th e state b anking convention. Site of th e m eeting, last of a series of such m eetings held in N orth Da kota, w as th e Lew is and C lark H otel dining room in M andan. H ans Fischer, W ash b u rn banker, presided at th e session. Speakers on th e program included L. A. Hill, regional d irector of th e w age and h o urs division of th e d ep art m ent of labor, w ho spoke on w age and h o u r provisions. R. M. B arry, of th e M erchants N a tional B ank and T ru st Com pany of Fargo, w ho spoke on everyday b an k ing problem s. George May, also of th e M erchants N ational B ank and T ru st of Fargo, w ho spoke on feeder loans to livestock raisers. R. D. Baker, of th e F ed eral R eserve B ank of M inneapolis, w ho spoke on th e regulations of th e new installm en t buying laws. George Rockwell, F ed eral R eserve B ank of M inneapolis, w ho spoke on th e control of foreign funds now frozen in th is country. Jo h n A. G raham , state b an k exam iner, w ho u rged all banks to qualify for th e han d lin g of U nited States de fense bonds: J. O. M ilsten, vice p resid en t of th e N orth D akota B ankers A ssociation, w ho spoke on th e state b an k ers con vention, and C. C. W attam , secretary of th e association, w ho also talked on association business and problem s. District Bankers Meeting R. H. B u tterw ick of F argo w as elected p resid en t of th e so u th eastern d istric t of th e N orth D akota B ankers A ssociation a t a recen t d in n er m eeting held at th e R udolf H otel in Valley City. A bout 115 w ere in attendance, in cluding rep resen tativ es from b anking firm s in th e T w in Cities and D uluth. G. A. K lefstad of F o rm an w as nam ed vice president, and R. M. H ougen of V alley City, re-elected secretary and treasu rer. B u tterw ick succeeds B. A. H elland of A rth u r, who w as elected to th e state executive com m ittee. Sharpe P ru etz of K ulm w as nam ed on th e state n o m inating com m ittee. Speakers w ere L. A. Hill, R. D. B aker and George Rockwell, all of M inneapolis; George May, S. H. F in g er and S tate S ecretary C. C. W attam , all of Fargo; and J. I. H egge of Hillsboro, p resid en t of th e state association. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March Í9b2 40 • NORTH Cashier Passes Away E d w ard W. M ueller, 59, cashier of the N ational B ank of Jam estow n, and w idely know n for his activities w ith th e S tu tsm an C ounty F a ir B oard and th e E lks Lodge, died suddenly follow ing a h e a rt a tta c k w hich stru c k w hile he w as at his desk. DAKOTA NEWS neapolis following an illness of tw o years. He had been in M inneapolis d u rin g m ost of th a t period. Mr. K issinger had been associated w ith th e H ecla B ank for 30 years and at th e tim e of his death w as a director as w ell as cashier. Becomes Banker Hecla Banker Dead J. H. K issinger, about 54, cashier of th e H ecla B ank, died recen tly in Min- N ew m an Olson, principal of th e Buhl high school for th e last five years, resigned recently to en ter th e banking • business in Osakis, M innesota, w here his father-in-law controls a bank. Olson came from V irginia w here he w as high school teacher of sociology and w as honored w ith a life m em ber ship in th e Ju n io r C ham ber of Com m erce for o u tstanding w ork. Mr. Olson w as selected as B uhl’s o u tstanding citizen in 1941. Callahan Made President L. E. C allahan of M unich w as elected presid en t of th e n o rth e a ste rn group of the N orth D akota B ankers A ssociation at a recent d in n er m eeting. He succeeds H. M. N ash of H atton. F. C. G ustafson of G rand F o rk s w as elected secretary. Speakers at th e d in n er w ere J. I. Hegge of Hillsboro, state association president; C. C. W attam of Fargo, secretary, and L. A. Hill, R. D. B aker and George Rockwell of M inne apolis. BANK A D V ERTISIN G (C ontinued from page 15) HERE FRIENDLINESS GIVES ADDED VALUE TO A CORRESPONDENT CONNECTION Each out-of-town bank which selects The Northern Trust Company is shortly aware of two important ad vantages. First, there is the wealth of up-to-the-minute information on banking and trust matters available here. Second, there is the personnel— friendly, helpful and thoroughly trained in modern banking methods. From routine check collections to sea soned investment counsel, each corre spondent finds here efficient coopera tion in meeting his problems. He is assisted in achieving that complete ness of service his customers value so highly. Inquiries are invited. THE NORTHERN TRUST COMPANY 50 SOUTH LA SALLE STREET, CHICAGO Member Federal Deposit Insurance Corporation ★ N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 “Get out of debt” says M arriner S. E ccles, G overnor of the F ed eral R e serve Board. “The tim e to prepare for a squeeze is before it h its u s,” according to Leo T. C rowley, Chairm an of the F ederal D ep osit In surance Corporation. “Get debts in shape to ride out a storm ” says an oth er authority. “GET OUT OF D E B T —AVOID TH E SQ U EEZE—A N D YOU’LL RTDE OUT T H E STORM.” Also, we use stickers w hich we can paste on letterh ead s and envelopes, and recently we sent out one w hich caused such a favorable im pression w ith th e T reasu ry D epartm ent th a t th ey w rote us a le tte r of com m enda tion, and this stick er w hich is ru n in red and blue ink on w hite paper to give it the red, w hite, and blue colors is as follows: EAT IT UP WEAR IT OUT MAKE IT DO! Y ou’ll N eed W hat You Save To pay debts— To buy D efen se B onds By discussing every day personal problem s in our advertisem ents, we believe we have created m ore in te re st both in th e ads them selves and in our b an k th a n w e otherw ise w ould have done. J u s t let a girl see a big handsom e lifeguard and she w an ts him for a buoy friend. 41 L E G A L DEPARTMENT (C ontinued from page 16) a m atter in w h ich the burden of proof rests on th e tru stee. U nd er the facts outlined in the question, proceedings regarding com pensation are addressed to th e sound discretion of the court in volved and it m ay m ake or w ith h old a llow an ces as the particular circum stan ces require. F a rre ll ow ned and lived in his home. He su b seq u en tly m oved th e re from and had th e place to rn dow n to save taxes. In paying his federal in come ta x he sought to deduct th e value of th e b uilding in d eterm in in g his tax ab le income. Could he do this? No. The purchase, the construction, the tearin g dow n, or the sale of a hom e n orm ally rep resen ts a personal, fam ily, or liv in g exp en se w hich is not deductible as attem pted by F arrell. A norm al situ ation prevailed and F arrell m ust be governed accordingly. THE FARM ER C A N DEFEAT IN FLA TIO N (C ontinued from page 18) m aterials, and m en, m u st be paid. A po in t often overlooked, is th a t re g a rd less of w h e th e r w ar is paid for w hile it is going on, or is carried on by borrow ed funds, th e costs in term s of m anpow er, m aterials, and resources come from p ast or c u rre n t production. T hese costs cannot be postponed. One difficulty in obtaining adequate price control is th a t each group still has its eyes set on g ettin g as g reat an ad v antage as an y o th er group. T h ere w ould be no reason for qu estio n ing th is w atch fu ln ess if it took th e form of each g ro u p ’s ex ertin g p re s su re to keep o th ers from gaining u n due advantage. W atch fu ln ess of th is so rt is desirable. Such an a ttitu d e w ould in sist th a t considerations of g en eral w elfare alw ays h a v e first place. U n fo rtu n ately , th e easier p a th to follow is th a t of seeking offsetting advantages. In stead of in sistin g th a t th e re is to be no “g rav y ,” th e em phasis is on g ettin g a sh are of it. L abor justifies dem ands for h ig h er ra te s of pay on th e g rounds th a t profits are up and th e w o rk er is en titled to his share. T he farm ers th e n say, if w ages are going up, farm prices, w hich re p re se n t th e ir labor re tu rn s, should go up as well, and th a t if w ages are not to be controlled, prices should not be. If th ese dem ands in tu rn are gran ted , labor m ay be ex pected back for m ore because cost of living is up, and th e n th e sp iral of inflation is on its m e rry w ay. Up and up it goes; w h ere it stops, nobody know s. (T u rn to page 64, please) R .E D TAPE” is frequently the bottleneck which throttles activity in time of emergency. One of the outstanding charac teristics of our American inde pendent banking system is the speed and efficiency with which it has served industry and com merce and is now prepared to meet the exacting needs of war time economy. We offer our facilities if you think we can help you. ... THE . . . P H IL A D E L P H IA NATIONAL BANK ORGANIZED 1803 PH IL A D E L P H IA , PA . C apital, S u rp lu s an d U n d iv id e d P ro fits $ 4 6 ,0 0 0 ,0 0 0 Member of Federal D eposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19k2 42 U N I T E D ¡ST A T E S BAN K T L íÜ M E M B E R F.D .I.C. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19b2 c fm f o /ffm a A EST A B LISH ED a 1 8 56 43 loans continue in good shape, so th a t loans are m ore th a n 60 p er cent of the deposits.” N EBRA SKA Bank Shows Increases N EW S O. A. R IL E Y W M. B . H U G H E S S ecretary O m aha P re s id e n t Association Meets un ique position of having paid a 5 per cent dividend to all m em ber-depositors each y e a r since organization an d in addition has b u ilt up a v ery satisfac to ry reserve. M illard M. M artin, secretary -treas u re r of th e A llen A ssociation, w as guest speaker a t a special m eeting of th e N o rth Loup N ebraska C ooperative C redit A ssociation. H is subject w as “G etting th e M ost Out of C ooperation.” The sp rin g m eeting of th e S outheast N ebraska R egional C learinghouse A s sociation w as held in F a irb u ry last m onth. T h ere w as an atten d an ce of 67 ban k ers. Follow ing th e d in n er th e follow ing ap p eared on th e program : D istrict Judge C. B. E llis gave a ta lk “Looking A head,” an analysis of th e w ar situation. O. P. Cordill, a ssista n t cashier, Oma ha B ranch, F ed eral R eserve B ank, ad New Bookkeeper dressed th e group on “C onsum er C redit-R egulation.” M ildred K uhl is th e new bookkeeper E. C. A ustin, cash ier of th e B eatrice and sten o g rap h er a t th e Plainview N ational B ank, and p resid en t of th e S tate Bank, Plainview , N ebraska, h a v S outheast N eb rask a R egional C learing ing tak en th e position form erly held house A ssociation, presided. by Ja n B. C urtiss, w ho recen tly re signed. Annual Meeting A t th e a n n u al m eeting of th e A dam s S tate B ank of A dam s, th e follow ing officers w ere elected b y th e directors: H en ry G ram ann, Sr., p resident; H en ry G ram ann, Jr., cashier; and C hris Hennies, c h airm an of th e board. Mr. G ram ann, Sr., w as fo rm erly cash ier of th e bank, an d Mr. G ram ann, Jr., w as fo rm erly a ssista n t cashier. Mr. H ennies w as fo rm erly p re sid e n t of th e bank. Changes in Personnel R ecently L. J. K ozeny w as m ade an assista n t cash ier an d H a rla n W. Trum ble w as m ade a d irecto r of th e P ack ers N ational B ank of Omaha. Allen Credit Association A t th e a n n u a l m eetin g of th e A llen C ooperative C redit A ssociation of Al len, N ebraska, all officers w ere r e elected. W. R. E llis, p resident; M illard M. M artin, secretary -treasu rer, an d W. T. Connell as a m em ber of th e board of directors, all of th em have been in th e sam e positions since th e association w as organized in 1934. T he A llen A ssociation re c e n tly p u r chased its b rick office b uilding—w hich build in g w as fo rm erly th e hom e of th e A llen S tate B ank u n til its liquidation in 1929. T he A llen A ssociation h as th e State Bank of Liberty E v e re tt M. B arr, p resid en t of th e S tate B ank of L iberty, recen tly sold one tru c k load of hogs and received a check for $2,521 in pay m en t for th e load. He has on h an d 60 brood sows to farro w soon. T. J. Poague, cashier of th e bank, recen tly p u rchased 289 acres of level land along th e n o rth edge of M arshall county in K ansas for a consideration of $14,000. Mr. Poague and th e loan com p an y are jo in t ow ners. H erm an B achenberg, vice presid en t of th e bank, h as on feed 110 heavy steers and 250 o th er cattle to grass th is season. H e usu ally carries a ro u n d 450 cattle, b u t due to th e h igh price of cat tle th is w in ter, he did n o t lay in his u su aly supply. H e plans to w;ait for a d ry spell and lay th em in n e x t sum m er. Annual Meeting W e have received th e follow ing let te r from C. J. M ortensen, p resid en t of th e N ebraska S tate B ank or Ord: “A t our b a n k ’s an n u al m eeting E. R. F afeita w as m ade vice p resid en t as w ell as cashier, and R. J. C ronk and Miss A lberta F ly n n w ere elected assist a n t cashiers. “T he deposits are w ell up over th e h alf m illion m ark and dem ands for At th e recen t an n u al m eeting of th e S ecurity S tate B ank of E dgar, th e fol low ing officers w ere elected: J. L. Scroggin, president; E. E. Hedgcock, cashier, and P aul S tew art, a ssistan t cashier. T his b an k w as organized in July, 1935, w ith a capital of $15,000 and su r plus of $3,000. In spite of th e fact th a t th e section of th e co u n try served by th e E d g ar b an k has h ad no crops since 1934 u n til last year, w h en th e re w as a fair crop, th e b an k has show n a steady increase, and th e D ecem ber 31, 1941, re p o rt show ed capital of $15,000, su r plus of $10,000, and undivided profits of $5,994.34. D uring th is period $700 has been charged off th e b an k build ing, and $600 off fu rn itu re an d fixtures. A dividend of 5 p er cent w as paid in 1941. Officers Re-elected The P lattsm o u th S tate B ank has held its an n u al m eeting a t w hich th e officers of th e b an k w ere nam ed. All of th e old officers w ere re-elected to th e ir posts. The officers are as follows: P resident, H. A. Schneider; vice p res ident, Carl J. Schneider; vice president, E. W. Burdic, and cashier, F ra n k A. Cloidt. The board of directors of th e b ank com prise th e above officers an d H en ry H orn, long tim e m em ber of th e official board. T he b ank rep o rts a v ery excellent y e a r and a large volum e of business transacted. Hold Annual Meeting All officers w ere re-elected d u ring th e an n u al m eeting of th e State B ank of A lexandria. Officers include L u th e r Bonham , president; M erle L. Cory, vice president; J. J. R othm eier, cashier, and Nellie M. Moore, a ssista n t cashier. O ther directors are H erm an E. Je n nings, Jo h n B acker and George Apking. T he b an k rep o rted a good y e a r’s business. Whitman Bank Sold P u rch ase of th e F irs t S tate B ank of W h itm an has been announced by th e A bbott in terests of Alliance. C. J., H an n ah E. and L eland A bbott an nounced th e p u rchase w hich b rin g s to seven th e nu m b er of w estern Ne b rask a banks controlled by th e group. O. J. K ing, cashier, an d R obert T ay lor, a ssistan t cashier, w ill operate th e b an k tem porarily. Mr. K ing said his h e alth w as one factor inducing him to N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 44 • NEBRASKA sell. He and Mrs. K ing w ill m ove to a m ou n tain state th is spring. N EW S• T he Hon. S. R. McKelvie, governor of N ebraska in th e days afte r th e first W orld W ar, w as th e first speaker of th e evening, and he discussed his expe riences as governor and some of his later experiences, p a rticu larly in farm ing and cattle raising. Bank Holds Annual Banquet The P la ttsm o u th S tate B ank held its fifth successive an n u al b an q u et in th e A m erican Legion B uilding at P la tts m ou th last m onth, e n te rta in in g some 241 farm ers and farm ow ners, p atro n s of th e bank. The ev en in g ’s program w as in charge of H. A. Schneider, p resi dent of th e bank, w ho w as ably assisted by Carl Schneider and E. W. B urdic, vice presidents, and F ra n k A. Cloidt, cashier. W illard W aldo, county ag ricu ltu ral agent, also greeted th e m em bers of the p arty. S hort speeches w ere also given by George Holmes, presid en t of th e F irs t N ational B ank of Lincoln; Sam uel W augh, executive vice president of th e F irs t T ru st Com pany of Lincoln; Carl Ganz, cashier of th e F arm ers & M erchants B ank of Alvo, and B ruce McCulloch, editor of the Journal-S tock m an of South Omaha. Fieldman for Land Bank F elix Jelin ek of C enter has been se lected as fieldm an for th e F ed eral L and B ank and w ill be stationed in H artington. He succeeds Roy L. King, w ho w ill re tu rn to FSA w ork in M adison county. Mr. Jelinek has been serving as dep u ty county tre a su re r in K nox county, and previous to th a t w as auto clerk there. He has had considerable b a n k ing experience th ro u g h o u t th e state. Mr. Jelin ek took over his new duties following Mr. K ing’s resig n atio n tw o w eeks ago. Sells Bank Stock H a rry R obertson, w ho for 12 years has served th e people of E agle as cashier of th e B ank of Eagle, sold his bank stock to George U n ru h re cently. The people of E agle greatly appreciate th e services Mr. R obertson has ren d ered them and are so rry to have him leave. New Assistant Cashier A. L. M cDannel, form er deputy clerk of A dam s co u n ty ’s d istrict court, re cently began his duties as a ssistan t cashier at th e City N ational B ank of H astings. Entertain County Association M em bers of th e N ational B ank of N eligh w ere hosts a t a d inner last m onth to th e b an k ers of A ntelope county a t the Nehoco H otel in Neligh. A fter th e dinner, th e organization held a business m eeting, th e new w ar tim e law being one of th e m ain topics discussed. T hey voted to w ork accord ing to th e new law for the present. E lection of officers w as also held. Mr. L eonard H ales of B runsw ick w as elected president, a position w hich H. I). Miller, cashier of th e Citizens State B ank of C learw ater, has held for th e p ast five years. George K rum of Neligh w as elected secretary. THE DOUBLE LOAD OF BUSINESS O N E are the u n certain ties o f 1941. O u r n a tio n ’s course has been set and its fu ll-tim e duty is n o w a ll-o u t p ro d u c tio n for victory. D islo catio n o f o u r n o rm al econom y is the necessary p rice w hich w e gladly pay fo r th e ability to defend o u r freedom . B ut business has a d o u b le load in m a in ta in in g b o th m ilitary p ro d u ctio n and basic civilian req u irem en ts. G T h e A m erican N a tio n a l B ank co nsiders it a p riv ileg e and a duty to c o o p e ra te fully w ith C hicago business in m eetin g these unusual co n d itio n s. T h e sam e sp irit actuates o u r relatio n sh ip s w ith c o rre sp o n d e n t b anks th ro u g h o u t the nation. T h is w illin g ness to g o bey o n d m ere ro u tin e is a factor o f increasing im p o r tance in in te r-b a n k associations d u rin g these tim es. Observes 50th Anniversary E. C. Yont, presid en t and cashier of th e B ank of Brock, observed his fif tieth a n n iv ersary of service w ith th a t ban k last m onth. In spite of his m any y ears of service and advanced age, Mr. Yont is still active at th e bank. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO LA S A L L E S T R E E T , T oAT W A S H I N G T O N IB Member Federal Deposit YO UR STATE BANKERS A SSO CIATIO N O FFIC IA L SA FE, V A U L T AN D TIM ELOCK EXPERTS Insurance Corporation w O U R B U S I N 'Northwestern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E S S I S March 1942 T O H E L P B U S I N E S S F. E. D A V E N P O R T & C O . OM AHA 45 term ed efforts of W ashington to take land bank control from th e stockhold ers, th e resolution w as approved w ith out a dissenting vote. The resolution com m ended Senator H ugh B utler and R epresentative H arry Coffee for th eir dem and for a full in vestigation of the actions and influ ences attem p tin g to d isru p t the organi zation. I EO T. M URPHY, m'anager of A llied L Mills, Inc., of Omaha, w as one of tw o directors elected by th e L ivestock N ational B ank of South Om aha at th e an n u al d ire c to rs’ m eeting. The o th er is E. S. B urk of Chicago, in v estm en t man. Mr. M urphy is a d irecto r of th e Om aha C ham ber of Commerce, a m em b er of th e O m aha A thletic Club, has been an O m ahan 11 years. W ith AY. P. A dk in s as ch airm an of th e board and A lvin E. Joh nson as president, o th er officers and d irectors w ere re-elected. S tate and local re p re se n ta tiv es of th e defense savings staff and a group of O m ahans in terested in th e sale of bonds and stam ps p resen ted a Defense Bonds for V ictory radio pro g ram over S tation KOIL. AY7. B ale Clark, p resid en t of th e Om aha N ational B ank, one of th e speakers, said: “Our experience in th e last w ar ta u g h t us th a t we did n o t fully a p p re ciate th e dan g er to follow, com m only described as inflation. T h ere is one sim ple and effective check upon th is financial ailm ent, n a m e l y s a v i n g s th ro u g h th e m edium of defense bonds and stam ps.” J. F. M cD erm ott, vice p resid en t of th e F irs t N ational B ank of Omaha and state ch airm an of th e N ebraska defense savings com m ittee, read a m es sage from G overnor D w ight Griswold. D irectors of th e Om aha district, farm cred it ad m in istratio n , closed th e ir fourday a n n u al m eeting by re-electing seven officers of th e Om aha F ederal L and B ank and postponing action on th e position of L and B ank P resid en t C harles M cC um sey and Vice P re si den ts A. K opperud and H. E. Baird. Mr. M cCum sey has been land b ank presid en t since May, 1936, w hen he w as prom oted from executive vice president. Before th a t he w as w ith the Om aha F ederal Interm ed iate Credit B ank and before com ing to Omaha w as a ra n ch er and b an k er in w estern South Dakota. Mr. K opperud, in charge of the loan service departm ent, has been active in th e L and and In term ed iate Credit B anks for 20 years, com ing from Lake P reston, Sputh Dakota. Baird, w ho has been w ith th e L and B ank for n early 20 years, is head of th e new loan departm ent. The F arm Credit Board re-elected all officers of th ree o ther affiliated agen cies, th e In term ed iate C redit Bank, P roduction Credit C orporation and O m aha B ank for Co-Operatives, and renam ed L. AAr. P ow ers as general ag ent and general counsel of the farm credit adm inistration. Re-elected land b ank officers w ere George M. F uller, treasu rer; M. E. AATelsh, Jr., secretary; Ueo E. M anion, F rank O. Osborn and B ert AYaddell, vice presidents; O. K. P etten g ill, assist a n t tre a su re r, and AVayne E. Sm ith, a ssistan t secretary. P resen t officials of th e Omaha bank are em inently satisfactory to th e sec re ta ry -treasu rers of th e various local farm loan associations in th e four states in th e Omaha b a n k ’s area, ac cording to A nd rew H edm an of W eb ster, South Dakota. H edm an is presid en t of th e Associa tion of Secretary-T reasurers. “C ertainly th e relations betw een the secretary -treasu rers and th e land bank officials have been friendly, coopera tive and satisfacto ry ,” said H edm an. In w estern N ebraska, m ore th a n 350 m em bers of th e Scottsbluff and G ering farm loan associations w ent on record by resolution b itte rly opposing any a t tem p t by “b u reau cratic influences” to oust McCumsey. A fter a stro n g denunciation by A. N. M athers, G ering banker-farm er and association m em ber, ag ain st w h at he AAT. B. M illard, Jr., vice p resid en t of th e Omaha N ational Bank, and new King of Ak-Sar-Ben, w as elected ch air m an of th e board of directors of the M etropolitan U tilities D istrict of Oma ha for 1942, at th e ann u al reo rganiza tion m eeting. He succeeds Dr. W illard Quigley. A llan T ukey, oldest m em ber of th e board in point of service, w as chosen vice chairm an, position held by Mr. M illard last year. A. E. Coad, p resident of th e P ackers N ational B ank of South Omaha, w as elected p resid en t of th e Omaha C lear ing H ouse A ssociation a t th e annual m eeting. O ther officers are: AY. Dale Clark, p resid en t of th e Omaha N ational Bank, vice president, and AVilliam B. H u ghes, re-elected secretary-m anager. N am ed to th e clearing house com m it tee w ere Mr. Clark, chairm an; T. E. D avis, president, F irs t N ational; H. M. B u sh n ell, president, U nited States N a tional; AA7. A. S aw tell, president, Stock Y ards N ational; A lvin E. Johnson, president, Live Stock N ational, and Mr. Coad. Omaha ch ap ter of th e A m erican In stitu te of B anking recently debated the M inneapolis ch ap ter on “Resolved: T h at th e Several States Should Adopt Com pulsory A utom obile L iability In su rance,” at th e Omaha ch ap ter room s in th e Omaha N ational B ank Building. R uth Gale and M ariner Clark w ere M inneapolis speakers; E ester Souha and Fred Cateron spoke for Omaha. T he Occidental B uilding and Loan A ssociation of Omaha has purchased $50,000 w o rth of Defense Bonds, the m axim um am ount perm itted by the T reasu ry D epartm ent in any one year, P resid en t Ford E. H o v ey announced at th e an n u al stockholders’ m eeting. Mr. H ovey rep o rted the association ended the y ear w ith m ore th a n a m il lion dollars in cash and liquid bonds in its treasu ry , and th a t th e num ber and am ount of real estate loans m ade d u ring th e p ast year increased over the previous year. Re-elected officers w ere Mr. Hovey, president; Jo h n T. Brow nlee, W. R. M cFarland and George T. M orton, vice presidents; H. O. Miller, secretary, and D. H. K nott, treasu rer. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 46 • NEBRASKA L aw ren ce B rin k er and Company, Omaha in v estm en t bank ers, announce th e addition to th e ir staff of L ane M. A xtell. Mr. A xtell is a n ativ e of Om aha and w as educated at C entral H igh School and la te r atten d ed th e U n iv ersity of A rizona. He had been w ith B urns, P otter & Com pany since 1930. Gordon D. Taft, fo rm erly associated w ith L aw rence B rin k e r and Com pany, Om aha in v estm en t ban k ers, has gone to W ashington, w h ere he h as accepted a g o v ern m en t position. R obert H. H all, vice p resid en t of th e N orth Side B ank of Omaha, has been nam ed an Ak-Sar-Ben councillor. Mr. H all is aid to G overnor J. E. Davidson. W ar activ ity p u shed O m aha b u siness in Ja n u a ry fa r ahead of Ja n u a ry , 1941, C ham ber of Com m erce business in d i cators showed. G rain receipts w ere 237.6 p er cent over last Ja n u a ry ; b uilding perm its, 112.9; b an k clearings, 31.1; b an k debits, 24.2; livestock receipts, 39.7. W. B. T. B elt, 71, w ho rose from a collector to p resid en t of th e N o rth w est N E WS e rn Bell T elephone com pany, died re cently in an Omaha hospital. He re tire d in 1936, afte r serving the in d u stry n early 48 years. A fter his re tire m e n t he continued as chairm an and th en as a m em ber of th e telephone com pany’s board of directors and as a m em ber of th e b oard’s executive com m ittee. F o r th e last several y ears Mr. Belt had been p resid en t of th e N ational Se c u rity F ire In su ran ce Com pany of Omaha. He also had been ch airm an of th e board of directors of th e U nited States N ational B ank of Omaha. B orn in Richm ond, V irginia, he came to O m aha w ith his p aren ts in 1884. K irkpatrick-P ettis C om pany of Oma ha w as notified it w as th e first in v est m e n t banking house in th e T en th F ed eral R eserve D istrict to qualify to sell D efense Bonds u n d er a new m ethod devised for in v estm en t bankers. U n d er th e plan, th e com pany deposits col lateral w ith the F ederal R eserve B ank and has bonds on h and to sell to cus tom ers. Annual Meeting at Elgin T he stockholders of th e B ank of E lgin held th e ir ann u al m eeting recen t ly, a t w hich tim e directors w ere • elected. Those elected are F. X. F ritz, C harles H. Kelsey, Lyle E. Jackson, H. L. Carlson and George A. W right. Stockholders expressed satisfaction a t the v ery su b stan tial progress th e in sti tu tio n is m aking. T he B ank of E lgin opened for business a little over six years ago and now has resources over $200,000. The directors m et im m ediately fol low ing th e stockholders m eeting and elected th e follow ing officers: George A. W right, president; F. X. F ritz, vice president, and E stella L. L ink, cashier. The reg u lar dividend w as declared and $200 added to surplus. D uring th e p ast y e a r th e b an k has increased its capital from $12,000 to $14,000 and its su rp lu s from $2,500 to $3,000 to tak e care of th e increased vol um e of business. Madison J. J. D eLay w as ren am ed p resid en t of th e B ank of M adison a t th e an n u al m eeting of stockholders held recently. O thers elected w ere R. H. F reudenburg, vice president; G. C. B enning, cashier, and A lden Jones, a ssistan t cashier. D irectors are E. J. Moyer, O V. Scheer and Dr. H. R. Palm ateer. S ev era l thousand friends and clients cam e in last month to se e us on the d a y of our informal "open house." A m ong them w ere a great m an y out-of-town banker friends. To all of y o u w e s a y , "Thanks, Sincerely," for your visit. This is YOUR bank. service, an d our growth is the result of YOUR patronage. Our service is YOUR CONTINENTAL NATIONAL BANK O F L IN C O L N M em ber, F ederal D e p o sit Insurance C orporation N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 47 Nebraska City In Locals EB R A SK A ’S 285 state b an k s be g an th e new y e a r w ith a b rig h t 1941 record beh in d them , AVade R. M artin, state direcor of banking, re ported. F o r th e first tim e in 20 y ears state ban k s last y ear suffered n o t one forced closing and in addition these im prove m en t factors w ere cited by M artin: An increase of n early $8,000,000 in loans over D ecem ber 31, 1940. A gain of $8,985,182 in deposits. U nited S tates g o v ern m en t bond hold ings, w hich rose to $13,951,305, an in crease of $1,214,128. A drop of $70,273, to $91,057, in land holdings. A gain of $435,625 in surplus, u n d i vided profits and reserve. R ep ay m en t of $185,824 in R FC loans m ade to th e b an k s in less favorable days. M artin declared th e b an k s m ade “v ery g re a t strid e s” in 1941, and he a ttrib u te d th e im pro v em en t to b e tte r bu siness and crop conditions th ro u g h th e state. The increase in loans m ade, he said, indicates th a t farm ers are b orrow ing m oney to expand livestock holdings. L oans o u tstan d in g to taled $47,397,869 on D ecem ber 31, 1941, ag ain st $39,448,339 on D ecem ber 31, 1940. T otal assets rose from $89,525,065 to $99,040,764 a t th e end of 1941, w ith o u t stan d in g loans and $32,102,454 in cash th e larg est item s. D eposits clim bed from $77,092,644 to $86,050,826 at th e close of 1941 business. N T he e n tire perso n n el of th e U nion B ank of College View have signed up 100 p er cent p articip atio n in th e p u r chase of D efense Bonds and Stam ps u n d er th e payroll deduction plan, W. E. B arkley, president, and C. H . W ear, cashier, announced. Bob B ailey h as accepted a position in th e N ational B ank of Commerce, L in coln. He had been w ith a b ran ch of the B ank of A m erica a t Long Beach, Cali fornia, for th e p ast th ree m onths. E ig h t $1,000 bonds stolen in a $46,000 G rand Island, N ebraska, b an k rob b ery nine years ago have been recov ered. F B I D irector J. E dgar H oover said th e bonds w ere recovered w ith the a r re st of George Shum an, alias George Simons, 58, of Buffalo, at Chicago on F e b ru a ry 11th. H oover said Shum an acknow ledged he knew th e bonds w ere stolen w hen he pledged them as secu rity for loans at Buffalo and Syracuse banks. T he G rand Island robbery occurred October 13, 1932, a t th e N ebraska N a tional B ank w hen five m en b ra n d ish ing subm achine guns and pistols held 15 em ployes and custom ers a t bay, forced th ree w om en b ank em ployes to accom pany th em as shields and es caped in a car bearing stolen L ancas te r county license plates. T he b ank failed to reopen a fte r th e 1932 m o rato riu m b u t depositors have been paid 88% p er cent of th e ir claims. Retires From Active Service In o rder th a t he m ay devote m ore tim e to th e city light p lan t as general m an ager and to his o ther business in terests, J. R ex H en ry has relinquished active service in th e F rem o n t N ational B ank w here he is a vice president, d i recto r and m em ber of th e finance com m ittee, it w as announced last m onth. Mr. H en ry plans to re ta in his b an k positions for th e p resen t b u t w ill not be at a desk in th e bank. He plans to spend m ore tim e at th e light p lan t and a t th e F rem o n t F o u n d ry and M achine Company, of w hich he is president. Mr. H en ry has served as vice p resi d en t of th e b an k since 1933, and is also a director of th e F re m o n t H otel Com p an y and th e F rem o n t Stockyards and L and Company. R ichard P. K im m el w as elected to th e board of directors of th e Otoe County N ational B ank a t N ebraska City a t an an n u al m eeting recently. O ther officers and board m em bers re elected w ere Jo h n Stocker, president; H. F. M eyer, vice president; H. H. Teten, cashier; Floyd Cole, assistan t cashier; M orton S tein h art, M eyer, Stocker and H. J. Stocker, board m em bers. N ebraska City N ational B ank re elected all officers. T hey are: W. S. W il son, president; W illiam K ropp, vice president; Otto Schneider, cashier; George Slack, a ssistan t cashier; Kropp, Schneider, W ilson, K arl Nelson, John M. Dierks, and R obert W ilson, board m em bers. Norfolk All directors of th e D eLay N ational B ank of N orfolk w ere re-elected re cently a t th e stockholders’ ann u al m eeting. T hey are: J. J. DeLay, president; Otto Becken hauer, A. J. Betzold, W. O. E ichelberg er, W. G. F lin t, Dr. A. E. Gadbois, H. F. T henhaus, P aul Zutz, B ern ard M. DeLay, all of N orfolk, and A. R. Olson, B eresford, S. D. The directors w ill m eet in th e n ear fu tu re to elect officers. P resid en t D eLay gave a re p o rt on th e b a n k ’s business in 1941, in w hich th e in stitu tio n operated at a su b stan tial profit. To Receive County Funds A t a sta tu to ry m eeting of the county com m issioners held recen tly a t Red Cloud, Com m issioner D. C. Bell w as elected as ch airm an of th e board for th e y ear 1942. Am ong o ther m atters acted upon by th e board w as th e des ignation of the Com m ercial B ank of Blue H ill and th e Peoples-W ebster C ounty B ank of Red Cloud as depos itories for county funds. North Platte T he an n u al m eeting of th e F irs t N ational B ank of N o rth P latte w as held recen tly in th e bank, w ith a stockholders m eeting being held first, and th e election of th e board of direc tors. T he directors elected to th e b an k are th e following: R ay C. Langford, K eith Neville, W. R. M aloney, E. H. E vans and W. H. M unger. Follow ing th e election of th e directors an elec tio n of officers w as held. All of last y e a r’s officers w ere re-elected. Follow ing are th e officers w ho w ere re elected: K eith Neville, president; R. C. L angford, executive vice president; W. R. M aloney, vice president; W. H. 'N orthwestern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 48 • M unger, cashier, and R obert Craw ford, a ssista n t cashier. A. C. H ill w ho w as form erly em ployed a t th e b an k in P ax to n is now em ployed by th e F irs t N ational B ank as bookkeeper. A t a m eeting of th e stockholders and directors of th e M cDonald S tate B ank of N o rth P la tte recently, W. H. Mc Donald w as elected ch airm an of the board and G. J. T aylor w as elected president. O ther officers include: L. B. Dick, vice president; J. Y. Castle, cashier; H. W. Arp, a ssista n t cashier; M attie F. R alston, a ssista n t cashier; Jo h n B arton w as elevated to assista n t cash ier and George W. T aylor w as retain ed as a ssista n t cashier n o tw ith stan d in g th e fact he is in th e U. S. A rm y a t present. V irgil G raham w as nam ed auditor. D irectors are W. H. and J. B. McDonald, Dick, G. J. T aylor and Castle. O ’Neill The stockholders of th e O’Neill N a tional B ank held th e ir an n u al m eeting in th e b anking room s recen tly and elected th e follow ing board of direc tors: Charles E. A bbott, Ju liu s D. Cronin, E m m a D ickinson W eekes, E. F. Q uinn and F. N. Cronin. A t a m eeting of th e directors th e follow ing officers w ere elected: Presi- NEBRASKA NEWS dent, E m m a D ickinson W eekes; vice president, F. N. Cronin; cashier, E. F. Quinn; a ssistan t cashier, J. B. Grady. Murphy Elected Director Leo T. M urphy, m anager of Allied Mills, Inc., w as one of tw o directors elected by th e Livestock N ational B ank of Omaha, a t th e an n u al direc to rs ’ m eeting recently. The other is L. S. B urk of Chicago, in vestm ent man. M urphy is a director of th e cham ber of commerce, a m em ber of th e A th letic Club, has been an O m ahan 11 years. W ith W. P. A dkins as chairm an of th e board and A lvin E. Johnson as president, o ther officers and directors w ere re-elected. Remodel Interior To b e tte r accom m odate custom ers and to provide m ore w orking space for em ployes, th e in terio r of the F a rm ers N ational B ank in C entral City is being rem odeled. W orkm en are re a rra n g in g the in terio r and adding a new counter and g rillw ork so th a t em ployes w ill have an o th er w indow from w hich to w ork. The in terio r w ill also be redecorated. Scottsbluff All directors of th e Scottsbluff N a 7 ? • tional B ank w ere re-elected a t th e o r ganization’s an n u al stockholders m eet ing. The officers for 1942, selected at th e follow ing directo rs’ m eeting, are H. H. O stenberg, president; W. J. Stafford, vice president; J. L. W itters, cashier; A. A. H ulse, a ssistan t cashier; R. K. P atrick, assista n t cashier, and B. L. Kelley, a ssistan t cashier. The reg u lar dividend w as declared at the m eeting and th e an n u al rep o rt show ed th e g ro w th of the organization du rin g th e p ast year. Bayard H. H. O stenberg w as elected p resi dent of th e F irs t N ational B ank of B ayard at its ann u al m eeting recen t ly. O ther officers include J. A. Stockwell, vice president; C. W. F oster, vice president; H. D. Silsby, cash ier, and T. W. Van D eusen, assistan t cashier. The yearly rep o rt show ed deposits of $461,000, an increase of $58,000, and loans of $320,000. Shelton The an n u al stockholders m eeting and the m eeting of th e directors of th e F irs t State B ank of Shelton, w ere held recently. The year 1941 w as a profit able one for th e bank. All of th e offi cers of th e bank w ere re-elected. T hey are L. J. H allas, president; A. J. H allas, vice president; L. F. H aug, cashier; H. R. Conroy, a ssistan t cashier; F. C. Klein, director, and H. G. W ellensiek, director. Syracuse T he an n u al m eeting of th e stock holders of th e F irs t N ational B ank of Syracuse w as held recently. Officers and directors w ere elected. The officers are: E. A. Duff, N ebras ka City, president; J. R. M ueller, vice president; E. A. P ra tt, cashier, and Chas. W. A ndrew s, a ssistan t cashier. D irectors are E. A. Duff, E d C. M etz ger, J. R. M ueller, E. A. P ra tt, and C harles W. A ndrew s. Tekamah 7T FAR M ORE TO OFFER BUT FAR FROM BEING EXPENSIVE N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 All officers of th e F irs t N ational B ank of T ekam ah w ere re-elected at the ann u al m eeting and election held recently. Officers are: R obert I. Stout, p resi dent; D. W. G reenleaf, vice president; H. J. W ragge, cashier; Lee Loerch, a ssistan t cashier. D irectors are: R obert I. Stout, D. W. G reenleaf, H. J. W ragge, Orville Chatt, Clyde G rothe, F red M orehouse and Lloyd Palm er. 49 -• W ahoo The W ahoo State B ank held th e ir an n u al m eeting recen tly and elected th e follow ing officers and directors: J. G. H ohl, p resident; A lbert H avel, vice president; Clarence Hohl, cashier; R aym ond H ohl, a ssista n t cashier. Di rectors: J. G. Hohl, A lbert H avel, J. F. L auvetz and W. T. Pickett. Weeping W ater The tw o W eeping W ater b anks re elected th e ir officers and directors in m eetings held recently. A t th e Ne brask a S tate B ank, A rchie M. Crozier w as elected a ssista n t cashier, as an addition to th e official list. New Assistant Cashier O. F. M yer of B razelton, K ansas, is the new a ssista n t cashier a t th e D aw son Bank. Mr. M eyer is an ex p eri enced b anker, hav in g been in th e b an k at B razelton for a n u m b er of years. W est Point The stockholders of th e F a rm e rs ’ and M erch an ts’ N ational B ank of W est Point, enjoyed a d in n er recen tly in th e social room s over th e b an k p re ceding th e ir a n n u al business m eeting and election of directors. All form er directo rs w ere re-elected and th e y are Dr. G. J. Collins, G erhard Stalp, J. A. Jerm an , W. T. K nievel and E a rl Reppert. The d irecto rs also m et and org an ized an d elected officers for th e en suing year. G. J. Collins w as elected president; G erh ard Stalp, vice p re si dent; W. T. K nievel, cashier; Miss D orothy R eppert, a ssista n t cashier, and W. R. K erkow , a ssista n t cashier. NEBRASKA Gardner Elected President E d G ardner of N ebraska C ity’s F a rm ers B ank w as elected p resident of Otoe ffîw Bought and S old An an u u al rep o rt show ing th a t th e b ank had a v ery successful year, w ith deposits and loans at new high peaks, featu red th e an n u al m eeting of the shareholders at th e Com m ercial N a tional B ank of G rand Island recently. D irectors, re-elected at th e sh a re ho ld ers’ m eeting, re-elected all officers at th e m eeting of th e board w hich fol lowed. David K aufm ann is president; Ed. H uw aldt, executive vice president; V ernon Rice, cashier, and Leslie Belford, a ssistan t cashier. E. W. A ugus tine and W. E. Clayton, w ith K auf m ann, H uw aldt and Rice, constitute th e board of directors. e c a â t RESTAURANTS ■k ★ -k ROMRAYRLACK M IR R O R ROOM AMRER y V/ V/ V/ Y V/ ROOM y K IN G COLE ROOM A/FOÍITENELLE I t t i É Ü BANK E M P L O Y E E S PLACED. 37 Y e ars S a tis fa c to r y Service. V/ T H E C H A R L E S E. W A L T E R S C O . V/ V/ NEBRASKA Grand Island THREE Confidentially and with becoming dignity OMAHA, C ounty B ankers A ssociation at th e ir P alm yra m eeting recently. Cooper B utt, F irs t N ational of U nadilla, w as nam ed secretary-treasurer. V ictor Goerke, A m erican B ank of B urr, re tirin g president, w as in charge. A fter a program w hich consisted of quiz en tertain m en t, for w hich prizes of various types w ere given, the w om en guests w ent to the hom e of Mr. and Mrs. C. A. Sweet, Jr., of the B ank of Palm yra, and th e m en con ducted a business session d u ring w hich m any problem s, including incom e tax retu rn s, defense bond sales and o ther m atters, w ere discussed. The Fontenelle today establishes the standard of hotel excellence for 1951. The new guest rooms, smart lobbies and beautiful din ing rooms reflect this modern trend. Hotel Fontenelle is the address of satisfaction. s/ B A N KS • I t ’s good business to let custom ers know th e b ank staff practices w h at it preaches. F a rm ers in th e vicinity of F rem o n t received a le tte r from th e Stephens N ational calling a tten tio n to a record book distrib u ted by th e bank, suitable for recording item ized statem en ts of incom e and expense. The F rem o n t High School, M idland College and th e F rem o n t Public L i b ra ry w ere sent copies of th e book “B anking Studies,” w ith th e sugges tio n th a t th e la tte r w ould prove valu able for refence purposes. C onstruction of an ordnance p lan t is g ettin g u n d er w ay in Saunders county, n e a r F rem ont, and at its ow n expense the Stephens N ational investigated the m any problem s w hich w ould arise w ith th e trem endous influx of labor w hen construction begins. The rep o rt w as p repared in p rin ted form, and copies distrib u ted to business and p ro fessional m en and w om en and others who m ight be interested. It is bank public relations activities such as th e above w hich m ake for suc cessful b ank operation in any com m unity. Public Relations Program The Stephens N ational B ank, F r e m ont, is doing an excellent job of p u b lic relatio n s am ong its custom ers and friends in F re m o n t and vicinity. In a recen t le tte r from W illiam N. M itten, president, he m entions four projects w hich th e in stitu tio n has sponsored. P ublicity w as given to a copy of a resolution adopted by em ployes and officers of th e b an k in th e form ing of a D efense Stam p and Bond Club. W hile v o lu n ta ry on th e p a rt of th e bank staff, m em bership is 100 p er cent. NEWS O M AH A S W E L C O M E TO TH E W ORLD N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V/ V/ V/ V/ V/ V/ V/ V/ V/ V/ V/ V March 1942 50 We invite You T o . . . 0 S e n d Y o u r I t e m s to U s fo r C r e d it • H a n d le Y o u r E x c e s s L iv e S t o c k F eed er L oan s T h rough U s We Are Interested in Ail Loans for Defense Purposes rp jj 1 Jl MTIOIAl BAI Omaha, Nebraska Resources Over $21,000,000.00 (M em ber Federal D eposit Insurance Corporation) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 51 m aking them low type, an d have en larged th e b an k w ork room. AVe now have seven w indow s instead of four as form erly.” this b ank opened for business,” says W. N. G rant, vice president, “and at th e close of the first day’s business we had on deposit $104,000. A t th is tim e our deposits are above th e $2,000,000 m ark. AVe have had a steady grow th w ith all th e usual reverses th a t have tak en place in th is span of tim e and u n d er p ast b an king conditions and reg ulations. “The officers of this in stitu tio n have held to sound banking and th e serving of an ag ricu ltu ral com m unity and b u si ness in terests of th is tow n and county. Of th e original organizers th ere are b u t th ree active stockholders left in the organization: AVilliam B uxton, Jr., president; W. N. G rant, vice president; and I. E. Stone, stockholder, of this city.” Black Out W age Hour Law Elected Vice President N EW S A. T. D O N H O W E P re s id e n t Tenth Birthday On M ay 12, 1942, th e W ayland State B ank of W ayland, Iowa, w ill observe its te n th b irth d ay . The W ayland State B ank first opened its doors a t a tim e w hen b an k s all aro u n d it w ere closing th e irs in th e c o u n try w ide recession. The W ayland State serves a th rifty farm in g com m unity in th e so u th ern p a rt of Io w a’s g re a t tu rk e y raisin g district. The b a n k ’s g ro w th has been steady, and d u rin g its ten y ears it has in creased its capital stru c tu re $35,000, and paid re g u la r dividends to its stock holders. The officers of th e b an k are as fol lows: J. R. M cK irahan, p resident; A. B. M agdefrau, vice president; M elvin G. Roth, cashier, and A. A. Jackson, a s sista n t cashier. Baby Month It w as “baby m o n th ” in F e b ru a ry at th e G rundy N ational B ank, G rundy Center, Iowa, according to W esley T. H echt, president, w ho w rote th e N o r t h w estern B anker: “W e w ish to announce th e b irth of a d au g h ter (N orm a Jean N eesen), to Thom as J. N eesen (cashier), and w ife on F e b ru a ry 4, 1942, also th e b irth of a son (C harles W illiam Stock), to H e n ry W. Stock (assistan t cash ier), and w ife on F e b ru a ry 12, 1942.” C ongratulations! Joins U. S. Army H a rla n C ham berlain of L uana suc ceeded K eith O verbeck as a ssista n t cashier of th e L u an a Savings B ank of Luana, Iowa, recently, as Mr. O ver beck en tered tra in in g in th e U. S. Arm y. Iowa Trust and Savings A ccording to C harles J. Spies, p re si den t and cashier of th e Iow a T ru st & Savings B ank of E m m etsburg, Iowa: “S. P. Boies, a ssista n t cashier, has resigned, and K. A. R eeves w as m ade a ssista n t cashier. “W e have rem odeled our fixtures, FR A N K W A R N E R S ecretary Des M oines “I th in k the AVage and H our Law should be blacked out for the du ratio n of the w ar,” says J. A. E rickson, cash ier of th e F arm ers Savings B ank of C lerm ont, Iowa, “at least for th e sm all banks, w ho now are being asked to sell bonds, w ork on Red Cross drives, and m ake out income taxes, questionnaires and o ther papers for th e boys going into the arm y and navy, and a host of o th er w ork w hich we are expected to do and are glad to do; b u t it cannot be done in 40 hours per week. “J. F. M iller, p resid en t of our bank, is th e chairm an for F ay ette County Defense Savings Bond D rive—quota $2,000,000. “At th e an n u al m eeting th e follow ing officers w ere elected: J. F. Miller, president; Louise M iller and E. Lyngaas, vice presidents; J. A. E rickson, cashier; and J. F. Brorby, a ssistan t cashier, to take th e place of H. B. G reenley who, after m ore th a n 20 y ears of service in th is bank, resigned as of M arch 1, 1942.” A. W. Lee w as elected vice p resid en t of the F irs t N ational B ank of S tuart, Iowa, at th e an n u al m eeting held re cently. F ra n k E ck h ard t is presid en t of the bank, and C. L. Beech is cashier. The b ank has deposits of over $477,000. Celebrates 50th Anniversary The F idelity Savings B ank of M ar shalltow n celebrated its 50th an n iv er sary on M arch 4, 1942. O rganized in 1892, AVith Geo. F. K irby and H. J. Howe as presid en t and cashier, respectively, it has continued an u n in te rru p te d existence to date, w ith no m ergers or reorganizations. The bank started w ith a capital of $30,000, and th is has been increased to $100,000, w ith su rplus and profits of $217,000 and deposits of $4,673,000. The p resen t officers are: Roy R. B radbury, president; M elvin C. B erkley, vice p res ident; A. T. Davis, cashier, and E. H. Nyce and E. J. Paul, a ssistan t cashiers. Bryant Attends M. P. B. C . C harles B ryant, presid en t of the Des M oines M orris P lan Company, a t tended th e W estern M orris P lan B ank ers C onvention at O klahom a City re cently, w here he addressed th e conven tion on the subject “Probable Effect of G overnm ent W ar Tim e F in ancing on M orris P lan Savings A ccounts.” Mr. B ry an t also had th e proud expe rience of seeing his son receive “his w in g s” at Brooks Field, San Antonio, Texas. He is a first lieu ten an t in A erial O bservation, now attach ed to the 113th Cavalry, Brownwood, Texas. Twenty-three Years Old The Peoples T ru st and Savings B ank of Indianola, Iowa, w as 23 years old last m onth. “On the 26th day of F eb ru ary , 1919, " P A Y C " Plan Installation A nother m id-w estern b an k to install th e profit-getting and good-will-build ing “ P A Y C ” no-m inim um -balance C hecking A ccount System is th e E x change State B ank of E xira, Iowa. A ccording to th e U nited States Check Book Company, originators of th e plan, th is installation is m ore evi dence th a t the “Pay-As-You-Check” idea is practical for banks in th e sm all er tow ns, as w ell as those in larg er cities. E x ira has a population of about 1,000. Officers of the E xchange State Bank are Jo h n Delahoyde, president; C. K. Cullings, vice president; R. M. A nder sen, cashier, and K ath ry n Cannon, as sistan t cashier. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 SERVING THE PUBLIC T h r o u g h O u r Personal Loa n and Mortgage Department That broader service to the public broadens banking opportunities is demonstrated by these two departments of the Bankers Trust. Our Mortgage Department has historical significance in the fact that the Bankers Trust handled FHA loan No. 1 in Iowa. Today's volume of such loans is about $5,000,000, augmented by a lesser but substantial volume of conventional, uninsured mortgage loans. More recent in origin, our Personal Loan Department further demon strates the value to a bank of these services to the public. Since its in ception, 11,500 loans have been serviced by this department, with 2,800 loans currently active. Our experience in these departments has also been a source of di rect, practical service to correspondents whom we serve. Numerous in stances could be cited of assistance given correspondent banks in set ting up similar departments. Out-of-town bankers have in some cases, spent entire days personally checking our procedure and forms for their own guidance. The Bankers Trust Company did not have departments like these in December, 1917, when resources were only $2,600,000. But during our twenty-five years of service under the same leadership as at the begin ning, as they have come into existence and have developed, such de partmentalized services have played an important part in the ten-fold growth of resources to more than $26,000,000. We would gladly place the facilities of these and other departments at the disposal of more banking friends in Iowa. M EM BER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FE D E R A L , D E P O S IT IN S U R A N C E C O R P O R A T IO N IT TAKES PEOPLE TO BUILD A BANK p Ä i ' n « s r uam W m * - ■; ~ r*i ; ¿J I* ,, •I ,5. H* G eneral v ie w of our Personal Loan Department sh o w in g Mr. M oeckly and staff of assistants. G. A. M oeckly, A ssistant C ashier and M anager Personal Loan Department. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 • Employed at New Bank Miss L ucy M artin, form erly asso ciated w ith th e F irs t N ational B ank in Fairfield, Iowa, has becom e associated w ith th e Iow a S tate B ank, Des Moines, Iowa, a fte r hav in g served about tw elve y ears in th e ban k in g business a t Leon and Fairfield, Iowa. Miss M artin, in associating h erself w ith th is new city bank, feels it offers an o p p o rtu n ity for th e b roadening of h e r experience in th e b an k in g field. Deposits Show Increase H. W. V anderL inden, cashier of the IOWA NEWS • F arm e rs Savings B ank of L eighton, Iowa, w rites to us as follows: “W e w ish to re p o rt a large increase in deposits th e last year. W e also added $2,500 to our surplus, increased our undivided profits account and paid a 6 p er cent dividend on our common stock of $25,000.” Prominent Man Dies Jo h n W. Gard, vice p resid en t and directo r of th e E a rly Savings Bank, E arly, Iowa, died last m onth afte r a v ery sh o rt illness. In addition to his executive position H eadquarters for N ortheastern Iowa B ankers M o d e r n , e f f ic ie n t facilities m e a n the p r o m p t h a n d lin g of all y o u r N o rth e a s te rn Iow a b u si n ess. W e in v ite y o u r a c c o u n t — a n d w ill a p p r e c ia te the opportunity of s e r v in g y ou . THE NATIONAL BANK of WATERLOO Member—Federal Reserve System Member—Federal Deposit Insurance Corporation at th e bank, Mr. Gard w as also p re si dent of the E a rly F arm ers E lev ato r Company, vice p resident of th e Iow a A utom atic Gas Com pany of E arly, a m em ber of the E arly Tow n Council, and p resid en t of th e E arly Rifle Club. Mr. G ard succeeded his fa th e r as an officer of th e bank in 1934. He w as 46 y ears old at th e tim e of his death, and w as survived by his widow, a son and tw o daughters. County Bankers Meet F ifty attended th e recen t m eeting of the Cedar C ounty B ankers A ssociation w hich w as held at the H otel T ipton in Tipton. The m eeting w as in charge of J. G. Engel, cashier of th e B en n ett State Bank. W illiam B. A nderson of W est B ranch, head of th e County Civilian Defense, spoke to the group about his w ork in th a t capacity, and J. M. H utchison, D avenport, talked on th e sale of U nited States Defense Bonds. H en ry B. W alters, p resident of th e T ipton State Bank, also spoke on th e sale of Defense Bonds. T here w ere several o ther talks, in cluding a speech on “Indexing and F il ing C hattel M ortgages,” by Carl M ath er, T ipton, and a talk by F ra n k P e a r son, cashier of th e F irst S tate B ank of W est B ranch, on “Bi-County and InterCounty M eetings.” Correction W e w ish to call to th e a tten tio n of our readers an e rro r w hich occurred in listing the year-end figures for the F irs t N ational Bank, D ubuque, in the F e b ru a ry issue of th e N orthwestern B anker. U nder “Bonds and S ecurities” th e am ount w as published as $1,121,491. T his figure rep resen ts only th e U nited States securities. T he F irst N a tional has in addition o th er securities am ounting to $5,532,749. T he figures as published should have read $6,654,240. Doing Their Part B ankers and in v estm en t dealers are certainly doing th e ir p a rt in aiding th e sale of Defense Bonds and Stam ps th ro u g h o u t Iowa. M any of them are serving as county chairm en in th e ir respective com m unities, am ong them being F ra n k W illiam s in Johnson YOUR STATE BANKERS ASSO CIATIO N O FFICIA L SA FE, V A U L T AN D TIMELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 55 • county, J. E. K ing in M onroe, an d L. H. R yan in W apello. Increases Surplus Account A t a recen t m eeting of th e board of directors of th e D eW itt B ank & T ru st Com pany, D eW itt, Iowa, a resolu tio n w as adopted tra n sfe rrin g $25,000 from undivided profits account to surplus. The capital stru c tu re now is: Capital, $25,000; surplus, $50,000; u n divided profits, $20,000. D eposits are in excess of $1,200,000. The b an k opened for business Ju n e 30, 1934. A pproxim ate figures th e n w ere as follows: Capital, $25,000; surplus, $5,000; u n divided profits, $3,000; deposits, $168,000. P re se n t officers are: P resid en t, G. M. Sm ith; vice p re si dents, W. H. W alk er and C. H. A rth u r; cashier, J. Yvo F loerchinger; a ssistan t cashier, A. F. Deke, and tr u s t officer, P aul Siegm und. NEWS • rity Savings B ank of Eagle Grove since its organization in 1899, died recently at th e age of 82 years. Dr. T. J. O’Toole, vice p resid en t for th e p ast 30 years, w as elected presid en t at th e last reg u lar m eeting. Mrs. J. H. Howell, w idow of th e deceased, w as elected director to fill th e vacancy on the board of directors. M aurer, Edw. Oppedahl, C onrad E l m er, W. F. Rich and D. J. C hristenson. The directors elected the follow ing offi cers: M. Babler, president; D. J. C hris tenson, vice p resid en t and cashier, and F ritz B ritt, a ssistan t cashier. Miss Eloise P ackard w as appointed book keeper. Annual Meeting Held D uring th e y ear th e ban k paid its usual cash dividends, and th ere w as an increase in deposits of $80,000. A t th e an n u al m eeting of th e sh are holders of th e R enw ick Savings B ank of Renw ick, Iowa, th e follow ing direc to rs w ere elected: M. Babler, S. C. Mr. B abler fills the vacancy in th e office of presid en t caused by the recen t death of C. B. Sm eltzer of Ft. Dodge, Iowa. 'There A re Called to Navy The officers and en tire board of di recto rs e n te rta in e d at a d in n er at H otel T u rn e r on behalf of R ichard J. Hamm on, a ssista n t cashier of th e Iow a State B ank & T ru s t Com pany, of Fairfield, Iowa, w ho has en listed in the U nited States N avy and w ill sh o rtly he called to duty. Mr. H am m on has been w ith th is b an k 16 years. An ap p ro p ria te gift w as given to Mr. H am m on a t th e close of th e d in n e r by P resid en t R. D. H unt. . Annual Meeting Held if j The a n n u al m eeting of th e stockhold ers of th e R andolph S tate B ank w as held recen tly and all officers and direc to rs w ere re-elected. The b an k paid th e u su al 5 p e r cent dividend, d epreciated th e b an k b uild ing and voted to re tire th e balance of $3,000 in p re fe rred stock held b y th e RFC. D eposits increased n early $100,000 in 1941. IOWA NO PRIORITIES on PERFORMANCE T he dem ands of the w ar program have had their effect in many ways on your business contacts and on your daily lives. B ut in the m idst of change one thing at least rem ains constant and unaffected— the quality of service you may expect from B. J. Hansen Retires L. B. M adson, cashier of th e Citizens State B ank of W yom ing, Iowa, has a n nounced as follows: “At our last d ire c to rs’ m eeting in F eb ru ary , Mr. B. J. H an sen resigned as president, due to old age and in ab il ity to a tte n d re g u la r m eetings. “At th is sam e m eeting Mr. C hris A. H ansen w as elected p resid en t to fill th e vacancy.” Veteran Banker Dies J. H. Howell, p resid en t of th e Secu N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March Î942 56 • Stockholders Meeting At th e re g u la r stockholders m eeting of th e S tate Savings B ank of B axter, Iowa, th e follow ing directors w ere elected: W illiam K rueger, C a l v i n Noah, Otto Sanderm an, M. J. K ettenhofen, U. B ucklin, George R. Geise and R alph M. B utler. The board organized by electing th e following: R alph M. B utler, ch airm an of th e board, executive vice p resid en t and cashier; M. J. K ettenhofen, p resi dent, and W. L. Phillips, a ssista n t cash ier. IOWA NEWS •- W illiam K rueger, w ho has served the b an k m ore th a n 30 y ears as director, vice president, and la te r as president, declined th e office of presid en t and di rector, ow ing to poor h ealth and p e r sonal business, and th e board ap pointed Dr. Jam es McKenzie, long tim e resid en t of B axter, as d irector to fill th e vacancy. Send Newspaper Free T he City S tate B ank of Ogden, Iowa, is sending th e local new spaper free to all th e boys inducted into th e service, providing p roper application is m ade by th em or th e ir p aren ts to assu re pro p er addresses of th e boys a t all tim es. New Hampton J. N. Hess, of th e staff of th e F irs t N ational Bank, N ew H am pton, has been nam ed p resid en t of th e New H am pton Cham ber of Commerce. Mr. H ess announced plans for th e com plete reorganization of th e cham ber. H is ideas w ere en th u siastically received by th e largest group ever to atte n d a m eet ing of th e New H am pton C ham ber of Commerce. Mr. H ess is th e youngest p resid en t in th e h isto ry of th e organi zation. M atthias K ennedy, p resid en t of th e F irs t N ational Bank, N ew H am pton, recen tly re tu rn e d from th e Clinic a t R ochester, M innesota, w here he u n d er w en t a serious operation. He is re covering in good shape and expects to be back on th e job shortly. Photograph Farm Activities CLOSE TO BOTH INDUSTRY AND AGRICULTURE Located in the heart of the Union Stock Yards and Ch icag o ’s great Central Manu facturing District, this 74 year old bank has developed facilities through serving both fa r m e r and m a n u f a c t u r e r that ma k e it exceptionally qualified to act as Chicago correspondent for middle western bankers. N A T I O LIVE STOCK nalBANK UNION STOCK YARDS M e m b e r F e d e r a l D e p o s it In su ra n c e C o r p o r a tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Celebrate 50th Anniversary W. E. W iem er, cashier of th e State B ank of L edyard, Iowa, announces th a t 1942 w ill m a rk th e fiftieth y ear of continued service to its com m unity for th e L edyard in stitution. OF C H I C A G O Established 1868 N orthw estern B anker “A bout a y ear ago we purch ased a m oving cam era outfit and have tak en a considerable nu m b er of pictu res of local farm ing activities from p lan tin g tim e fo h arvest, including chores and farm b u reau m eetings, as w ell as pic tu re s of b an k activities,” says C. W. A nderson, vice p resid en t and cashier of th e City State B ank of M adrid, Iowa. “W e have had o p p o rtunities to show these p ictu res to local co u n try P. T. A. m eetings, F a rm B ureau m eetings, farm ers’ th re sh in g settle-up m eetings, fam ily reunions, etc., and have found it an excellent good w ill builder for th e bank. To date w e have reached about 750 people in and aro u n d our com m unity. It also gave an added touch to our stockholders an n u al m eet ing. “Our deposits have increased 14 per cent over a y ear ago, and loans in creased 27 p er cent. C learings have reached an all tim e high w ith us w hile activ ity show ed a 17 p er cent gain. “W e are selling a considerable n u m b er of D efense B onds.” March 1942 Visits South and W est E. H. K lisart, cashier of th e Citizens S tate B ank of Iow a Falls, accom panied by Mrs. K lisart, is tak in g a trip 57 • th ro u g h th e so u th an d w est. Mr. an d Mrs. K lisa rt expect to be gone ab o u t a m onth. Wellsburg Banker Dead IOWA NEWS • died recen tly at th e M ethodist H ospital in Des Moines. Mr. Courson, w hose hom e w as a t Belm ond, h ad been a m em ber of th e board of directors since th e organization of th e b an k in 1926 and d u rin g th e p ast y ear he has been p resid en t of th is in stitu tio n . J. J. L udem ann, vice p re sid e n t of th e Peoples S tate B ank of W ellsburg, died last m o n th a t th e D eaconess h o sp ital a t M arshalltow n follow ing a sh o rt ill Association Elects Officers ness. H e h ad gone to R ochester in A t th e an n u al m eeting of th e Lee N ovem ber for a check-up, b u t a p p a r C ounty B ankers A ssociation at F o rt en tly th e y w ere unable to help him . M adison, at w hich 40 m em bers re p re G. H. Geerdes, cash ier of th e bank, sen ted th e Lee county banks in th e w rites as follows: association, R. J. M cCleary, vice p resi “T his leaves a place h a rd for us to d en t and cashier a t th e S ecurity State fill in th e b a n k here, as w e w ere g et B ank a t K eokuk, w as re-elected p resi tin g along ju s t fine.” dent. O ther officers elected w ere H a rry T. E dw ards, cashier of th e F a rm e rs’ Sav Annual Meeting ing B ank a t W ever, vice president; and W ill A. L ane, p resid en t of th e Se Roy G. W eddington, a ssistan t cashier c u rity Savings B ank of M arshalltow n, of th e Lee County Savings B ank at Iow a, w rite s as follows: “A t th e a n n u a l m eetin g of th e stock F o rt M adison, secretary -treasu rer. holders of th is bank, a stock dividend of 50 p er cent w as voted. T his b rin g s ou r capital to $75,000. Cash stan d s a t $1,000,000, g o v ern m en t an d m unicipal bonds at $526,000, an d deposits at $2,292,000. W ill A. L ane, presid en t, and C. E. Orr, cashier, w ere re-elected for th e ensu in g y e a r.” New Officers N ew officers of Ladies of th e Des M oines B an k ers’ club are M esdames Jo h n D eJong, president; R aym ond G. M iller, first vice president; G. A. F ram p to n , second vice president; W il liam E llison, recording secretary; George L. Nissly, corresponding secre tary; P. B. H arrison, tre a su re r, and H arold J. Howe, auditor. Independence T he annual m eeting of stockholders of th e F a rm e r’s S tate Savings B ank of Independence w as held a t th e ban k recently. All officers and directors of th e b an k w ere unanim ously re-elected as follows: P resident, E. F. Sorg; vice president, E. E. E v erett; cashier, C. L. F iester; a ssista n t cashier, P. E. Sorg; directors, Jo h n L. C herny, J. B. E lliott, E. E. E lliott, W. E. Glenny, F. A. K irsch, R udolph Leytze, Sr., C. V. R osenberger, B. B. Sells and E. F. Sorg. T he directors also m et for tra n s action of business P re fe rre d class B stock of th e b an k w as retired, leaving only th e com m on stock of $100,000. T he en tire personnel of th e b an k and its b ran ch offices w as rehired. Defense Bond Department Member Federal Reserve H u g h C. M cCleery, cashier of th e Peoples Savings B ank of L aurel, Iowa, an n ounces th a t his b an k becam e a m em b er of th e F ed eral R eserve Sys tem last m onth. T he Peoples Savings B ank w as o r ganized in Ju n e, 1909, w ith a capital of $10,000. I t now h as capital, su rp lu s an d undiv id ed profits of over $40,000, and deposits of $330,000. C. W. B uhrow , w ho h as been a m em b e r of th e b o ard of th e b a n k since its organization, is still active. T he p re s e n t officers are as follows: C. E. B u h row , presid en t; C. W. B uhrow , vice presid en t; H u g h G. M cCleery, cashier; Thom as L. L av erty , director; and T. C. Sheek, director. County Association Meets T he P ocahontas C ounty B an k ers as sociation m et a t th e P ocahontas S tate B ank recen tly and elected th e follow ing officers for th e y e a r 1942; p re si dent, V. H. Reid, P alm er S tate B ank, Palm er; vice p resid en t, A lfred M iller, Com m ercial S tate B ank, Pocahontas; secretary -treasu rer, E d m u n d Carm ody, P ocahontas S tate B ank, Pocahontas. Bank President Deceased R. E. Courson, 56, p resid en t of th e P ocahontas S tate B ank a t Pocahontas, The W aterloo S avin gs Bank, W a te rlo o , Io w a , h a s s e t up a se p a ra te d e p a r t m e n t in th e b a n k f o r th e sale of U n ite d S ta te s D e fen se B onds. A p ic tu re o f th e ir D e fen se B ond D e p a rtm e n t ju s t in sid e th e f r o n t door o f th e b a n k lo b b y is show n ab o v e. A s ev id e n ce of th e effo rts of W aterlo o to p ro m o te th e sale o f D e fen se B onds, R. W. W aite, V ice P re s id e n t o f th e W a te rlo o S a v in g s, p o in ts out t h a t fro m D e cem b er 7, 1941 to F e b r u a ry 18, 1942, m ore t h a n $700,000 o f D efen se B onds w e re sold in th e c ity o f W a te rlo o alone. T he se p a ra te d e p a rtm e n t w h ic h h a s b e en se t up in th e W a te rlo o S a v in g s B a n k is fo r th e sole p u rp o se o f se llin g U n ite d S ta te s B onds. T he D e p a rtm e n t is in c h a rg e o f one p e rso n w ho h a s fu ll c h arg e , h e r d u ty b e in g to see t h a t th e b a n k h a s th e n e c e ssa ry b o n d s of a ll se ries on h a n d . She also h a s c h arg e o f sales a n d th e m a k in g o f a ll re p o rts a n d re m itta n c e s . T h is d e p a rtm e n t in th e W aterlo o S a v in g s B a n k h a s b e en so b u sy t h a t i t h a s b e en fo u n d n e c e ssa ry to g e t e x tra help a t tim e s. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 58 IO W A FRO M N EW S H ERE AND TH ERE By J. A. Sarazen, Associate Editor J. A. SARAZEN EPO SITS are recording an all tim e th a t th ey knew m any of these bonds high in m any b an k s—reserv e cen are being paid for w ith m oney w ith te r b anks are going h ig h er daily. F o r d raw n from safe deposit boxes. B ank instance, at th e M erchants N ational deposits w ill now level off, theorize Bank, Cedar Rapids, we are inform ed several bankers, and give various re a deposits have increased m ore th a n sons for th e ir opinion. Loan volum e $5,000,000 since th e first of th e year, tre n d generally is dow nw ard and th e b ring in g th e to tal am o u n t of deposits m ajo rity of b an k ers do n ot feel th a t to over $50,000,000. earn in gs w ill be as good th is y e a r as These increases, in th e m ain, reflect last year. More consideration is being th e b e tte r prices being received in given to reducing in te re st rates fu r this a g ric u ltu ra l te rrito ry . Some of it th e r and b ringing an tiq u ated schedule b an k ers say is m oney being redepos of service charges up to date. ited w hich w as w ith d ra w n before th e first of th e y e a r for ta x purposes. L e t’s tak e a look a t th e deposit in E ven th e sm aller b anks re p o rt heavy crease in B urlington ban k s for th e sales of defense savings bonds. No y e a r 1941, over th e re w here th e big d istu rb in g am o u n t seem s to be com ing defense p lan t is located. The B u rlin g out of th e cu sto m ers’ accounts to pay ton Savings B ank finished th e y ear for them . Several b an k ers rep o rted w ith deposits of $5,203,170, an increase D From CLINTON, IO W A, U. S. A ., AROUND THE WORLD ■ A tm t t ë t i. from LUBBERS & BELL M FG. C O M P A N Y Since 1912, Lubbers & Bell Mfg. Company have been making one product, and making it so well that they have become one of Iowa's big "Little Businesses". During that 30 years they have been valued customers of the NATIONALBANK FIFTH AVENUE SOUTH-226* C & n t o n , < 9 c tv r t CLINTON, IOWA N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19b2 Member Federal Reserve System and Federal Deposit Insurance Corporation for the y ear of $1,385,152. The F a n n ers & M erchants S avings B ank fin ished th e y ear w ith deposits of $3,528,366, an increase of $1,096,731. T he N ational B ank of B u rlington finished th e y ear w ith deposits of $4,719,588 for an increase of $1,330,885, a to tal deposit increase for all th ree ban k s of $3,816,768. Oddly enough, th e increase is alm ost exactly th e deposit figures of B u rlin g to n ’s largest b an k for th e year-end of 1940. A slight increase in loan volum e w as recorded. The N ational Bank of W aterloo now has su rp lu s of $250,000, w hich equals th e capital. $50,000 w as recen tly m oved to th e su rp lu s from undivided profits. D eposits in this b ank in creased over tw o m illion d u rin g th e p ast year. E. A. M adill, em ploye of th e F a rm ers Savings Bank, Jesup, since 1936, w as m ade a ssista n t cashier at th e a n nu al m eeting. In te re st rates h ere w ere reduced from tw o to one per cent th e first of th e year. R. T. R em er, p resid en t N o rth L in n Savings Bank, C enter Point, spent a a few w eeks in th e hospital a t R oches ter, M innesota, th e early p a rt of F eb ru a ry and, although he is now back home, he expects to slow dow n som e u n til his h ealth is recovered. S. S. K illin ger, director S tate Sav ings Bank, Carson, passed aw ay re cently a t the age of 78. W . W . M cRory, p resid en t of T he Citizens State Bank, Oakland, inform s us th a t in th e m iddle of F e b ru a ry th e total deposits of his b an k w ere $917,054.86 and th a t to tal footings are $1,004,745.83. T his is th e first tim e since 1926 th a t the b an k reached these totals. In 1926 th ere w ere tim e certificates of $594,795.11 bearing five p er cent in terest, as ag ain st tim e certificates a t th is tim e of $206,278.09 bearing n ot to ex ceed tw o p er cent, som e a t one and one-half per cent. H. W . Sizer, form erly teller, Lisbon B ank & T ru st Co., w as elected a ssist a n t cashier a t th e b a n k ’s an n u al m eet ing. A reduction w as m ade in in te re st rates from tw o p er cent to one per cent on savings and certificates of deposit. Geo. C. S w iler, president, B urlington Savings Bank, left F e b ru a ry 23d for F o rt W orth, Texas, w here he w ill vaE xperienced B anker: City and Country bank, livestock and farm ing experience can accept position on short notice. W rite E. O. c/o Northwestern Banker. 59 • cation for a m onth. F. J. R iling, di re c to r of th is b an k and th e W est B u r lington bank, passed aw ay recently. T he M ediapolis Savings B ank, w hich opened for b u siness less th a n one and one-half y ears ago, alread y has de posits in excess of $600,000. R. A. D aedlow , cashier, form erly m anaged an office a t N ichols and T. R. R ichard son, a ssista n t cashier, fo rm erly m a n aged an office a t Mediapolis. The F irs t T ru s t & Savings B ank, Cedar R apids, is p ublishing a little folder w hich is m ailed each m o n th to cu stom ers and friends. It w as' sta rte d last fall and deals in p a rtic u la r w ith activities of th e people on th e south side, th e te rrito ry w hich th e bank serves. F. J. D vorak, cashier, says th a t it is p roving an excellent m edium in acq u ain tin g people w ith th e v arious services w hich th e b an k h as to offer. IOWA NEWS * A t the ann u al m eeting of th e F a rm ers Savings Bank, W ever, Edw ard R eichelt, form erly vice president, w as m ade president. He succeeds E. Lachm ann, w ho w as m ade h o n o rary ch air m an. A lex F oggy w as m ade vice p res ident. M arjorie B urk w as recently added to th e personnel as bookkeeper. W m. M. H oaglin, local business m an, w as elected to th e board of directors of th e H en ry County Savings Bank, Mt. P leasant, at th e an n u al m eeting of th e bank. G. M. Van A usdall, for m any years presid en t of th e Iowa State Bank, N ew London, has resigned on account of poor health. E lm er W right, form erly vice president, w as elected president. F rank W alz is th e new vice president. An abnorm al increase in deposits w as m ade by th e D anville State S av in gs Bank d u ring th e p ast year. De posits increased from $295,500 to $522,807. T his b ank is in the defense area. Loans increased $35,000. The F irst N ational B ank, Logan, paid th e balance of its p re fe rred stock in full F e b ru a ry 1st. R obert Shannon is now cashier of th e W h itn ey Loan & T ru st Co., A t lantic. Mr. S hannon has been a n em ploye of th e b an k in various capaci ties for th e last eleven y ears an d w as recen tly elevated from th e position of a ssista n t cashier to cashier. Surplus here has been increased to equal the capital, w hich is $50,000. T ru st certificates have been paid in full at th e A tlan tic State Bank. E a rn ings w ere n o t pledged and final p ay m en t w as m ade possible by tak in g $42,000 from undivided profits. The full am o u n t of th e final p ay m en t w as $68,000. T his y e a r m ark s th e 50th a n n iv e r sary of th e F arm ers T rust & Savings Bank, E arlin g. T he b an k has never had a stock assessm ent. D eposits are $450,000, th e h ig h est since 1928. The Secu rity State Bank, In depend ence, w hich opened for business Oc “ C om plete” S erv ice The First N ational Bank in Sioux City is a Key bank in a Key city. It is also your Key to COMPLETE correspond ent service in Sioux City. By "COMPLETE” w e m ean just that, for w e are thor oughly equipped to h andle all Sioux City b u sin ess, including com m ercial, grain, h a y , and livestock item s. Try First N ational service! V Buy U n ite d S ta te s D e fe n se B o n d s a t th is B a n k A. G. Sam, President J. P. Hainer, Vice President Fritz Fritzson, Vice Pres, and Cashier J. T. Grant, Assistant Cashier J. R. Graning, Assistant Cashier E. A. Johnson, Assistant Cashier W. F. Cook, Auditor M EM BER F E D E R A L D E P O S IT IN S U R A N C E C O R PO R A TIO N to b er 4, 1941, re p o rts footings as of F e b ru a ry 20th of $400,000. T he in te rio r of th e ir hom e, w hich w as th e old Com m ercial State B ank, has been comp letly rem odeled. Banks Sold or Bought! quietly, quickly and in a personal manner JAY A. W ELCH BANK BROKER Haddam, Kansas I N S IO U X C IT Y "35 Years Practical Banking Experience” N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 60 • At th e an n u al m eeting of th e N a tional B ank & T ru st Co. of C hariton, E. B. Gookin, form erly cashier, w as m ade vice president. M. J. G rogan w as m ade executive vice president. B. R. Van D yke w as stepped up to cashier. A. R. H ass, a ssista n t cashier, and em ploye of th e b ank for 26 years, re tire d as an active officer an d rem ain s as a director. He w ill look a fte r his ow n in terests w hich includes his farm s. E lected a ssista n t cashiers w ere J. L. H arding, J. A. K um m an d H elen Selk. IOWA NEWS • F. W. A llen, a ssistan t cashier, M us catine B ank & T ru st Co., has been given a leave of absence and has been m ade a captain in th e U nited States A rm y and is located a t F o rt Snelling, M innesota. R alph H udacliek, em ploye of th e Lone T ree Savings Bank, w ill join th e S tate B anking D ep artm en t effective M arch 9th. H e w ill be succeeded by A lbert M nsser. H arold B rennem an and M ildred Som m ers are new em ployees a t th e K alona Savings Bank. E xtensive rem odeling of th e H ills B ank & T rust Co. is u n d er way. The b an k w ill have a new fro n t an d th e in te rio r com pletely rem odeled. Two large glass brick w indow s are being installed, com position board ceilings added, new low type counters w ill tak e th e place of the high grill w ork, and m any o th er im provem ents. A T SIO U X C IT Y BANK LOANS for WAR PRODUCTION (C ontinued from page 22) F a rm e rs S tate B ank at M arcus w as th ird, and M iss D orothy H ill of th e Rock Rapids S tate B ank w as fourth. A nd speaking of th e Junior B ankers, th e ir an n u al convention w ill be held in Des M oines Ju n e 6th, 7th, and 8th, 1942. Mrs. A. G. Sam, th e v ery popular and charm ing w ife of th e p resid en t of th e F irs t N ational B ank in Sioux City, w as n ot in atten d an ce a t th e m eeting as she w as tak in g care of h e r 81 year old m o th er w ho has been sick for some tim e. As are th e b a n k s t h r o u g h o u t America, M ercantileC o m m e rc e is a iding o u r in d u s tr ia l W a r effort bye x te n d in g c r e d i t to w o r th y co n c ern s e n g a g e d in D efe n se a c tivities. T h e unprecedented increase in the tem po of industrial production, the change-over from consumer goods to those o f the m aterial o f W ar, has necessitated emer gency financing in a great m any cases. I t is the duty of American banking to assist American industry in its drive to Victory wherever such is possible. T o our m any correspondents and to out-of-town banks t h r o u g h o u t t h e N a tio n , we offer o u r credit facilities whenever local demands exceed your own loan limits. Carl J j . F redrickson, p resid en t of the Live Stock N ational B ank of Sioux City, told us a “tru e sto ry ” of a cus tom er of th eirs, w ho w as asked to get a d ra ft signed by an “officer”, an d w ho w alked rig h t out into th e stre e t to find a policem an to ask him if he w ould sign th e draft. Of course, th e police m an, know ing no th in g about it, b ro u g h t th e gentlem an back into th e bank, and th e d ra ft w as p ro p erly ex ecuted by an officer of the bank. R alph M. W atson, presid en t of th e N o rth w est S ecurity N ational B ank of Sioux Falls, South Dakota, w hose b ank has deposits of over $13,691,000, w as in attendance in the m eeting of Group 1. Incidentally, R alph is also poten ta te of E l R iad Tem ple of Sioux Falls. Inasm uch as th e S h rin ers w ill have th e ir circus a t th e Coliseum a t Sioux F alls M arch 9 to 14, R alph is now b e ing called “P. T.”, these being th e in i tials of th e w ell-know n show m an, P. T. Barnnm . MERCANTILE-COMMERCE B an k an d T ru st C o m p an y SAINT MEMBER FEDERAL N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DEPOSIT March 19f 2 LOUIS INSURANCE CORPORATION L eR oy A. R isin g, executive vice president, and H. W . B artling, m a n ager of th e field service of th e F. H. A. Division, of the C entral N ational B ank in Chicago, w ere both in atten d an ce a t th e Sioux City m eeting. T hese gentlem en have ju s t com pleted a sw ing aro u n d th e circle, call- 61 • ing on b a n k e rs an d discussing th e ir problem s w ith them . Mr. L istu g is an e x p ert on service charge plan s for banks, an d has helped m an y in stitu tio n s to increase th e ir rev en u e from th is m ethod. T he C entral N ational B ank in Chi cago is a v e ry rap id ly grow ing in s titu tion, as its deposits w ere only $300,000 on O ctober 15, 1936, and a t th e last call, th e y w ere over $20,772,000, w hich is certain ly a v e ry excellent record. IOWA NEWS • W hen som eone asked W . G. C. Bagley, tre a su re r of th e State of Iowa, w h a t his “address” was, he said it w as th e S tate House, Des Moines, and he hoped th a t it w ould rem ain so for an o th er tw o years. Mr. Bagley said th a t th e gas tax in Iow a for 1941 w as $18,200,000, and seven an d one-half m illion dollars g re a te r th a n 3 y ears ago. B. A. Gronstal, p re s id e n t' of th e Council Bluffs Savings Bank, and can didate for presid en t of th e Iow a B ank ers A ssociation n ex t year, spoke of the d u ty w hich every b an k er has to block or freeze funds com ing into th e b an k from aliens or enem ies of th e U nited States. He em phasized th a t no m a tte r how sm all th e am ount m ay be, foreign funds should be frozen a t once. V in cen t F. H arrington, C ongressm an from th e 8th d istrict of Iowa, said th a t T h ere is p robably no b e tte r “dialect” story-teller in Sioux City th a n A. G. Sam , p resid en t of th e F irs t N ational Bank. H e is an a rtis t in th is line. A. J. B artelsen , cash ier of th e Morningside Savings B ank of Sioux City, an d p resid en t of G roup 1, w as a m ost able and efficient presid in g officer and k ep t th e m eeting ru n n in g sm oothly an d quickly all afternoon. M. C. Eidsm oe, p resid en t of th e W oodbury Savings B ank of Sioux City, and p re sid e n t of th e Sioux City C lear ing H ouse A ssociation, gave th e ad dress of w elcom e an d m ade everybody feel a t home. T his w as ably responded to by A lb ert H. M eyer, p re sid e n t of th e F irs t N ational B ank of P aullina. A. T. D onh ow e, vice p re sid e n t of th e C entral N ational B ank an d T ru s t Com p an y of Des M oines and p resid en t of th e Iow a B an k ers A ssociation, b ro u g h t out fo u r poin ts in his rem ark s, w h en he said: “1. R em em ber 1932—it m ay come again—so tell y o u r cu stom ers to pay all th e ir debts now. “2. S uggest th a t y o u r farm ers re p a ir th e ir equipm ent. “3. B uy U n ited S tates Defense Bonds. “4. Do n o t allow y o u r cu stom ers to m ake new debts u nless th e y have th e resources to pay for them . “B an k ers m u st help to g u a rd ag ain st inflation by doing ev e ry th in g th e y can to assist in th e sale of U nited States D efense B onds.” M elvin W . E llis, su p e rin te n d e n t of banking, gave a v ery sh o rt b u t effec tive speech, an d em phasized th a t “we should stream lin e ourselves for w ar econom y.” He pointed out th a t th e Iow a bond quota for 1942 is $180,000,000, or $15,000,000 a m onth. H e said th a t Iow a b an k s a re sound and m ade m oney last year, and he em phasized to all b an k s to “k eep ’em out of debt”, and to reduce in te re st on tim e deposits an d in crease service charges. These Three Drovers Services *LIVE STOCK ON U. S. FARMS Are Always Available to Live Stock Shippers T H R O U G H LO CAL BA N K S C A TTLE 1. Collection And Transmission of Funds 2. Sound Loans On Live Stock 3. Credit Information On Firms Located Anywhere in the United States .............. 74,607,000 V alu e e a c h , J a n . 1942 $55.13 V a lu e e a c h , J a n . 1941 $43.26 S H E E P .................. 55,979,000 V a lu e e a c h , J a n . 1942 $ 8.62 V a lu e e a c h , J a n . 1941 $ 6.73 HOGS .....................60,526,000 V a lu e ea c h , J a n . 1942 $15.64 V a lu e e a c h , J a n . 1941 $ 8.34 Today, m ore th a n ever, live stock producers need up-toth e -m in u te banking- service. W a r conditions a re fo rcin g broad changes in n o rm al w ays of doing th in g s. The of ficers of th e D rovers are in close touch w ith these changes rig h t here in the live stock c ap ital of th e w orld. They b rin g seasoned experience plus close associations to every financial tra n s a c tio n affectin g th e live stock in d u stry . Your Inquiry Regarding the Advantages of Drovers Service for Your Bank is Invited C H IC K E N S ____473,933,000 V a lu e e a c h , J a n . 1942 $83.02 V a lu e ea c h , J a n . 1941 $65.04 TU R K EY S .............. 7,710,000 V a lu e e a c h , J a n . 1942 $ 3.08 V a lu e e a c h , J a n . 1941 $ 2.26 * S o u rc e : U .S .D .A . DROVERS N A TIO N A L R A N N DROVERS TR U ST 0 SA V IN G S BA N N U N I O N S T O C K Y A R D S , C H I C A G O M em bers, F ederal D e p o sit Insurance C orporation N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19!t2 62 G et EXTRA REVENU E S e//Money Orders to Reyu/arPure/tasers/ • The term money order is well established in the minds of the general public. That’s why millions of postal money orders are sold each year. You can get this extra reve nue for your bank by selling bank money orders to regular purchasers in your lo c a lity . Bank money orders are easy to handle; quickly identified; low in cost. See your “U. S.” representa tive or write today for free samples and prices. S T H is CtttCW BOOVv COWPMVY In A Omaha cO n Since O s AND 1916 Cs o* FO R B A N K S Write for Free Estimates E M b an k ers w ere closer to th e ir respective com m unities th a n all of th e econom ists and statistician s in the U nited States. He said th a t we w ill w in the w ar, no m a tte r w h at th e cost or sacrifice m ay be. He believes th a t South A m erica is rich in n a tu ra l resources, b u t th a t these resources need to be developed, and th is is our real opportunity. He also believes th a t Spanish, P ortuguese and F ren ch should be m ade required subjects in all of our high schools and colleges. South A m erica and aviation are the two fields we m u st develop after the w ar. W ith 2,000,000 pilots w hich we w ill have w hen th e w ar is over, he believes th a t every com m unity w ill have its own airp o rt, and th a t th is w ill be a real o p p o rtu n ity for America. T here w ere tw o secretaries w ho did m uch to m ake this the finest m eeting of its kind, and one w as R. E. B row n, cashier of th e Security N ational B ank of Sioux City, and secretary of th e Sioux City C learing House A ssociation, and th e o th er one w as G. E. W ilson, vice p resid en t of th e Cherokee State B ank a t Cherokee, and secretary of Group 1. Both did a fine job.—T H E ENT). A T BU RLIN G TO N (C ontinued from page 24) Am ong resolutions adopted by b a n k ers of G roup E leven w ere th e follow ing: “We urge th a t the banks and b a n k ers of this group cooperate to th e ir fullest ex ten t in th e sale of defense bonds and stam ps. “W e p ro test any effort to federalize the unem ploym ent com pensation act of the various states th a t w ould de stroy the principle of ‘M erit R atin g ’ as contained in our respective state unem ploym ent com pensation laws. “W e suggest th a t banks begin a n alyzing the rates of in te re st th a t th ey m ay be paying on tim e deposits to see if th ere should be any a d ju stm en t of such rates. “We suggest th a t banks caution all purch asers of defense savings bonds and stam ps to use g rea t care in th e safe keeping of such securities. “W e express th e hope th a t th e fed eral governm ent w ill see to it th a t banks shall be able to p u rchase all necessary supplies and equipm ent w ith o u t th e necessity of obtaining p ri o rity ratings. “W e recom m end th a t th e Iow a B ankers A ssociation do w h at th ey can to have th e w age and h o u r law in its application to banks be held in abey ance u n til six m onths follow ing the close of th e w ar. “W e again urge extrem e caution in th e m aking of sound loans and de veloping a sound in v estm en t policy, keeping in m ind th a t th ere w ill be an afterm ath to this p resen t period.” H ugh O’N eill, Jr., of th e in stallm ent credit d ep artm en t of th e F ed eral Re serve B ank of Chicago, pointed out th a t a w ar econom y m eans tw o things; first, expenditures for w ar, and, sec ond, a reduction of supplies for civilian goods. He also said th at, as we reduce th e supply of goods, we m u st control the dem and for those goods. Increased taxes help to reduce inflation, and taxes w ill be h ig h er as the w ar prog resses. T he sale of Defense Bonds by th e payroll allotm ent plan is being pushed by th e F ederal R eserve Banks. F rank W arner, secretary of th e Iowa B ankers A ssociation, said th at, “Mel E llis is a n a tu ra l for th e office of Su p e rin te n d en t of B anks, and he and R alph Bunce, D eputy S u p erin ten d en t of Banks, are doing a fine job.” F ra n k also pointed out th a t th e Iowa B ankers A ssociation is try in g to ex em pt b anks from th e W age and H our L aw d uring the w ar by having th e law am ended to th a t effect. Safe-keeping of Defense Bonds, Mr. W a rn e r pointed out, is an ever-increas ing problem , and custom ers are going to re n t m ore safety deposit boxes th a n ever before, and banks also m ay be asked to keep bonds for safety w ith o u t charge in a few cases. T here are 44 federal agencies, Mr. W a rn e r said, th a t are now in p a rtn e r ship w ith th e banks in th e U nited States, and th ey should be reduced and n o t be increased. T he sale of D efense Bonds is also a public relations job, as w ell as a p a trio tic duty, according to Mr. W arner. Tough Luck She—So you m et y o u r w ife a t a n ig h t club? My, th a t m ust have been ro m an tic. H e—H uh! It w as disastrous. She th o u g h t I w as w orking a t th e office. AND COMPANY DES MO I N E S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20th y ea r plann ing a d v e r tis in g program s for banks and tru st com panies. M em ber F inancial A d v e r tis e r s A ssociation . C o u n s e l D. R. o n B a n k W E S S L IN G , P R E S ID E N T P u b l i c R e l a t i o n s A overa 63 N EW S A N D VIEW S Thrift "Enlisted" to W in the W a r (C ontinued from page 14) course w ill m ean additional business for th e perso n al loan d e p a rtm e n t of m an y banks. A ccording to th e best estim ates, last y ear banks, th ro u g h th e ir perso n al loan d ep artm en ts, m ade 114,000 ta x loans av eraging $200. E eR oy A. E istu g, Jr., w hose fa th e r is executive vice p resid en t of th e C entral N ational B ank in Chicago, is a flying cadet at Goodfellow Field, San Angelo, Texas. Cadet L istu g g rad u ated from K enyon College G am bier, Ohio, in Ju n e, 1941, and is a m em ber of th e D elta Tau Delta fra te rn ity . W arren F erguson , w ell-know n in v estm en t b a n k e r of O ttum w a, w as ch airm an of th e m em bership com m it tee last y e a r of th e Iow a In v estm en t B an k ers A ssociation, and, in m aking his re p o rt he said th a t a t th e beginning of th e y e a r th e re w ere 49 m em bers, and now th e re are 46 m em bers, or a loss of 3, and he figured th a t if fu tu re chairm en of th e m em bership com m it tee w ere ju s t as “good” as he had been, th e association w ould last 15 years. J. H. “Jim ” P ullm an , vice p resid en t of th e F re m o n t C ounty Savings B ank of Sidney, Iowa, is a g re a t booster for th e annual rodeo w hich tak es place in his tow n. In fact, Jim says it’s b e tte r th a n a n y th in g Cheyenne ever p u t on. In cidentally, Jim know s som ething abo u t th e b an k in g business, too, be cause his in stitu tio n has a capital stock of $25,000, and su rp lu s and undivided profits of $53,000, w hich p u ts it in th e h onor roll class. The b a n k ’s deposits are $632,000. By Robert Lindquist Advertising and Publicity O f fic e r American National Bank and Trust Company of C hicago H E practice of th rift, looked dow n upon as old-fashioned d uring th e boom days of th e 20’s and th e disillu sionm ent of th e 30’s, is having a new p o p u larity w ith the com ing of the w ar period. The A m erican public, looking back upon its practices of recent years, is appalled by the w astefulness of w h a t had proudly been called th e h ig h est stan d ard of living in the world. Faced w ith the necessity of “pulling in its b elt”—of doing w ith o u t m any th in gs form erly considered essential— th e public never before has been m ore receptive and m ore in need of learning th e sim ple rules of th rift. T his presen ts both an obligation and an o p p o rtu n ity to th e banks, w ho first ta u g h t th e A m erican people to be sav ers. The tim e is here to rep eat these lessons, w hich are unknow n to m ost of the younger generation and forgot ten by th e older. As a co ntribution in th is direction, th e A m erican N ational B ank and T ru st Com pany of Chicago has p repared for d istrib u tio n to its custom ers a folder entitled: “T h rift— T a V ital Part of W in n in g the W ar.” T his folder is not ju st an appeal to buy defense bonds or open savings accounts b u t a broad treatise on the im portance of practicing th rift not only in m oney savings b u t in other ways. The difference betw een w astefulness and th rift in civilian life m ay m ean th e difference betw een life and death for some boy on th e fighting fronts. It m ight even m ean the difference be tw een success or stalem ate in decisive battles. T h rift can sh o rten th e w ar. W aste w ill definitely cause its prolon gation. The p rim ary expression of th rift as a m eans of helping to w in the w ar is saving money, buying Defense Sav ings Bonds and Stam ps. The public can and w ill be expected to do its p a rt m ightily on the Defense Savings front. B ut all savings w ill help. The savings th a t go into insurance com panies, into banks, w ill go into U nited States Gov ern m en t bonds or into loans and in vestm ents in in d u stries vital to the w ar effort. More people need to save more. T h at is th e sh o rt and sim ple m essage th a t needs to be preached to w in th e w ar. M errill A nderson of th e M errill A nd erson A dvertisin g A gency of New York w as recen tly elected p resid en t of th e N ew Y ork F in an cial A dv ertisers Asso ciation and succeeds D udley L. P ar son s, P ublic R elations M anager of the N ew York T ru st Company. W illiam H u ck el of th e Chase N a tio n al B ank w as elected secretary and George E. K irby, a ssista n t secretary of th e Green P o in t Savings B ank, w as elected tre a su re r. T. G. M cQueen, cashier of th e F a rm ers S tate B ank of R idgew ay, Iowa, has a son, R obert McQueen, 16 y ears of age, w ho has ju s t g rad u ated from th e R idgew ay H igh School. R obert is a “crack sh o t” w ith a pistol, and holds th e w o rld ’s record for civilian center fire g allery 50 y ard record, and th e n a tio n al m atch co u rt civilian record. R o b ert’s 50 y ard slow fire record w as one point over arm ed services over th e sam e court. T he above p ic tu re show s a D efen se B ond w in d o w d isp la y of th e American National Bank and Trust Company of Chicago. In c lu d e d in th e d isp la y a re som e British an d Free French p o ste rs, a n d also scale m odels of v a rio u s A m e ric an fig h tin g eq u ip m e n t in c lu d in g a irp la n e s, w a r ships, ta n k s a n d a r tille r y pieces. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 64 • Mr. McQueen certain ly can be de lighted th a t he has such a “crack sh o t” in th e fam ily. I j. R . B a s s e t t , cashier, N evada N a tional B ank, N evada, Iowa, has m ade a very fine record w ith his bank, w hich w as sta rte d 8 y ears ago and now has deposits of $1,346,495, a capital of $50,000, and su rp lu s of $67,000. M ERCHANTS MUTUAL BONDING COMPANY Incorporated 1933 IOWA NEWS • In a recent le tte r to th e N orthw est B anker he said, “W e feel quite p roud of our in stitu tio n , believing th a t we have grow n in keeping w ith th e ban k ing in stitu tio n s th ro u g h o u t th e state, having m ore th a n doubled our in v estm en t account since sta rtin g some eight y ears ago, and have alw ays paid about 10 p er cent dividends each year. “I m ight say we are h eartily backing th e bond sale cam paign and I believe S tory county has equaled th e state rec ord, also th e Red Cross has gone over practically tw o to one for th e east half of th e county.”-—T H E E N D . ern Joins Kosek & Company E rn e st Kosek, of E rn e st Kosek & Company, of Cedar Rapids, Iowa, a n nounces the association of Lud Prastka as a rep resen tativ e of his firm. L ud P ra stk a w as associated w ith th e In short, do we n ot need to face these problem s from th e stan d p o in t of n a tional w elfare? The po int I am seek ing to stress is not th a t of dividing th e country-labor ag ain st em ployer, farm ers against labor, and so on, b u t th a t all groups should find u n ity of BANK SUPPLIES A d dressing M achines . . . . A dding M achines D u p lic a tin g M a c h in e s ................E lectro-C upyist E q u ip m en t . . . Ozalid W h ite p rin t Process T y p e w riters . . . E diphone Voice W ritin g F rid e n C alcu la to rs KOCH BROTHERS P r in te r s . . . B ookbinders . . . Office O u tfitte rs S ta tio n e rs . . . B usiness M achines G rand A venue a t F o u rth S tree t D ES M O IN ES JlouieAi H o m e O ffice V A L L E Y B A N K B U IL D IN G Des Moines, Iowa Our p olicy provides a m axim um assessment of 2 Vi % in Zones One and Two— and 3*/2% in Zone Three (W estern Iow a). This is Iowa’s oldest surety company. Hawkeye Mutual Hail A progressive company with experi enced, conservative management. We are proud of our hundred and fifty bank agents in Iowa. Insurance Association Carver Bldg. Fort Dodge, Iowa To be the exclusive representative of this company is an asset to your bank. • DES MOINES BUILDING-LOAN & SAYINGS ASSOCIATION • W r it e to E. H. WARNER S ecreta ry and M an ager LU D PR A STK A R ude A uto com pany for th e last eighteen y ears as a salesm an. He w ill be engaged as a rep resen tativ e of th is firm contacting banks, insurance com panies and individuals in E astern Iowa. Oldest an d L a rg e s t in Des M oines 411 6th Ave. E L M E R E . M IL L E R P res, and Sec. Dial 4-7119 H U B E R T E . JA M E S A sst. Sec. M em b er F ed era l H o m e L oan B an k S y stem THE FARM ER C A N DEFEAT IN FLA TIO N Io w a ’s L a rg e s t B u sin e ss T ra in in g School M any hanks, bond-houses, insurance com panies and other financial in s ti tu tion s em ploy A. I. B. graduates. W rite or telep h on e w hen you need efficient office em ployes. E. O. F E N T O N , D irector American Institute of Business DES MOINES 10th and Grand Tel. 4-4221 N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 1942 (C ontinued from page 41) W ould it n ot be b e tte r for labor to dem and th a t w ar profits be held rig id ly in line by ap p ro p riate taxes ra th e r th a n to condone these profits by ask ing for a sh are in them ? W ould it not be b e tte r for farm ers to in sist th a t labor not be g ran ted u n w a rra n te d privileges th a n to ask for offsetting benefits for them selves th ro u g h h ig h er p a rity figures and h ig h er ceilings. or IM M EDIATE SALES essing Advertising Co. Des M oines 65 —• IOWA purpose and in te re s t by th in k in g an d actin g in te rm s of g en eral w elfare. “U nited we stand, divided w e fall” is as tru e today as ever. Price Ceilings One a ttitu d e seem s to be th a t if price ceilings are fixed th e y should be h igh ones. One en co u n ters also th e view th a t th ese lim its should re p re se n t floors as w ell as ceilings, th a t is th a t pro g ram s to raise prices to th em should be u n d e rta k e n . P rice ceilings should be recognized as u p p er lim its beyond w hich prices should n o t go ra th e r th a n as m ark s to w h ich th e y should be raised. A fact w hich seem s h a rd to realize by som e is th a t w a r is d e stru c tive and as such dem ands sacrifices in stead of creatin g prosperity. I t is difficult to see how a dem ocracy can succeed u n less gen eral w elfare is placed h ig h er th a n group in terest. Men need to th in k m ore abo u t how th ey can aid th e co u n try th a n about w h a t th e y can get out of o th ers in tim es such as this. My contact w ith farm ers satisfies m e th a t th e ra n k an d file of farm people stan d read y to accept th is view and to co n trib u te th e ir sh are on th is basis. F o rtu n a te ly , price control is n o t th e only m eans of checking inflation. Be cause w a r inflation re su lts from a s itu atio n of increased spending pow er in th e h an d s of consum ers a t th e v ery tim e th a t th e supply of m an y goods available to th em is curtailed, th e th re a t of inflation m ay be reduced by finding o th er outlets for th e excess funds. Since th e g o v ern m en t is th e m ajo r b u y e r of goods and services in w ar tim es, it has need for th ese funds. It gets th em by levying taxes an d sell ing bonds to individuals w hich th e y pay for out of th e ir incomes. T his w a r has to be paid for, and th e larg er sh are of th e costs paid w hile th e w ar is on, th e sm aller th e b u rd en of debt carried over into th e post-w ar. T here is, therefo re, a dual a rg u m e n t for stepping up federal taxes v ery de cidedly at th is tim e: one, to pay w ar costs; th e second, to check inflation. T axes are n ev er popular, b u t th e y re p re se n t sacrifices w h ich m u st be made. T hose w ho are inclined to g rum ble ab o u t th em should spend som e tim e in reflecting over th e g re a te r sacrifies w hich o th ers are m a k ing in ord er th a t th e y an d th e ir chil d ren m ay re ta in th e freedom s w hich are p a rt of our dem ocratic heritage. Bonds b o u g h t out of c u rre n t incom e w ill have th e sam e effect as tax es in checking inflation. H ow ever, th e a tti tu d e th a t b u y in g a 10-cent savings NEWS •- stam p now and th e n w ill do th e tric k is m ost unrealistic. A fifty billion w ar b udget calls for m ore su b stan tial p a r ticipation th a n th at. W e probably w ill soon be spending about half of our national incom e for w ar purposes. T h at gives us some idea of w h a t th e d uty of each of us m u st be. M eeting w ar needs and checking in flation are leading g overnm ent officials and Congress to give serious consid eratio n to raisin g taxes v ery decidedly, to provide for m ore p rom pt collection, and to th e adoption of some form of d eferred pay m en t or enforced savings. T he objectives are in th e in terests of th e co u n try and its people. I t is our d u ty as citizens to do our p art.—T H E END. iowa Chairman L aV erne M. Barlow, Des Moines, re s id en t m anager of Goodbody & Co., has been appointed ch airm an of th e Iow a d istrict com m ittee of th e A ssociation of Stock E xchange F irm s. S pringer H Brooks, St. Paul, one of 30 m em bers of th e board of governors of th e organization in th e U nited States, m ade th e appointm ent. The d istric t u n d er Brooks, of w hich Iow a ¿Index n B a n k e r s T r u s t C o m p a n y ........................... 52-5 3 H . B . B u c k h a m a n d C o m p a n y , I n c .... 62 C C e n t r a l N a t i o n a l B a n k a n d T r u s t C o . . . 10 C e n t r a l S u r e t y a n d I n s u r a n c e C o r p .... 26 C ity N a tio n a l B a n k & T r u s t C o m p a n y — C h i c a g o ............................................................... 30 C i t y N a t i o n a l B a n k — C l i n t o n ................. 58 C o n tin en tal-Illin o is N a tio n a l B a n k and T r u s t C o m p a n y ............................................ 32 C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . 46 I) D a v e n p o r t a n d C o m p a n y , F . E ............44 -5 4 D es M oines B u ild in g , L o a n a n d S a v in g s A s s o c i a t i o n ............................................................. 64 D r o v e r s N a t i o n a l B a n k ................................ 61 E E l m s H o t e l ................................................................. 48 E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 24 E p p l e y H o t e l s C o m p a n y ............................. 49 F F i r s t N a t i o n a l B a n k — S i o u x C i t y ....... 59 G G u a r a n t e e M u t u a l L i f e C o m p a n y ....... 24 H H a w k e y e M u t u a l H a i l I n s u r a n c e C o . . . 64 H o m e I n s u r a n c e C o m p a n y ........................ 5 I I o w a B a n k D i r e c t o r y .................................... 23 I o w a D es M o in es N a tio n a l B a n k a n d T r u s t ......................................................................... 68 J and is a p art, includes M innesota, N orth D akota and South Dakota. S n appy L aw yer (to gorgeous w itn ess)—A n sw er me, yes or no! W itness—My, y o u ’re a fast w orker, a re n ’t you? Ob ¿Advertisers A A l l i e d M u t u a l C a s u a l t y C o m p a n y ....... 28 A . C. A l l y n a n d C o m p a n y ............................ 31 A m e r i c a n I n s t i t u t e o f B u s i n e s s ............ 64 A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o . . 44 Jam ieson L. M. B A R L O W C o m p a n y ............................. 35 Iv Koch B ro th ers ....................................................... G e o r g e L a M o n t e a n d S o n ................................. L e s s i n g A d v e r t i s i n g C o m p a n y . . ............... Live Sto ck N a tio n a l B a n k — C h ic a g o ... L i v e S t o c k N a t i o n a l B a n k —-O m a h a . . . . L i v e s to c k N a tio n a l Bank-— S io u x C i t y .. 3 64 56 50 36 M M ercan tile-C o m m erce B a n k a n d T r u s t C o m p a n y ................................................................. M e r c h a n t s M u t u a l B o n d i n g C o .................... M e r c h a n t s N a t i o n a l B a n k ................................. M in n eap o lis-M o lin e P o w e r Im p le m e n t C o m p a n y ................................................................. M i n n e s o t a C o m m e r c i a l M e n ’s A s s n .......... M ississip p i V a lle y T r u s t C o m p a n y . . . . 60 64 2 34 35 55 N N a t i o n a l B a n k o f W a t e r l o o ............................ 54 N o r t h e r n T r u s t C o m p a n y ................................. 40 N o rth w e ste r n N a tio n a l L ife In s u ra n c e C o m p a n y ................................................................. 28 N o r t h w e s t e r n B a n k e r ........................................ 6 o W . R . O l s o n C o m p a n y ........................................ O m a h a N a t i o n a l B a n k ........................................ 34 19 P P h i l a d e l p h i a N a t i o n a l B a n k ......................... P ublic N a tio n a l B an k an d T ru s t C o .... 41 30 U U n i t e d S t a t e s C h e c k B o o k .............................. 62 U n i t e d S t a t e s N a t i o n a l B a n k ....................... 42 U n ited S ta te s T re a s u ry D e p a rtm e n t. . . . 4 V V a l l e y S a v i n g s B a n k ........................................... 67 w W a n t a d ...................................................................... C h a r l e s E . W a l t e r s C o m p a n y ......................... J a y A. W e l c h ............................................................ W e s s l i n g S e r v i c e s ................................................ W e s t e r n M u t u a l F i r e I n s u r a n c e C o .......... Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 L 58 49 59 62 27 March 1942 66 IN THE DIRECTORS' ROOM H u rry Up Nam e, Please W ife: “J u s t suppose we w ives should go out on strik e ? ” H usband: “Go rig h t ahead. I ’ve got a peach of a strik e b re a k e r in m ind.” She—B ut w hy should a big stro n g looking m an like you be begging for food? T ram p—Madam, th is is th e only profession I know of w here a g entle m an like me can speak to a charm ing w om an like you w ith o u t an in tro d u c tion. C. O. D. D ifferent G overnor “Do E nglish m en u n d e rsta n d A m eri can slang?” “Some of them . W hy do you ask?” “My d au g h ter is to be m arried to an earl and he has ju s t cabled me to come across.” A m an tells of a frien d who, some years ago, sta rte d out w ith a w agon load of freig h t to supply an In d ian a agency outpost. He had an In dian guide and a bottle of bu sth ead liquor. T hey agreed to continue w orking on th e bottle ju st as long as e ith er could give th e correct response to th e in quiry: “W hat did th e G overnor of N o rth Carolina say to th e G overnor of South C arolina?” A fter a w hile the In d ian fell asleep; th e driver, feeling th e need of an o th er drink, tried to arouse him. A fter pulling and sh ak ing for a w hile, th e guide opened one eye. The question w as popped quick ly before th e big chief dropped back into his alcoholic snooze. “Me G overnor of U tah,” solem nly announced th e Indian, “me no talk .” W h y, Santa! A few w eeks before C hristm as a m other took h er young son dow n to see th e w indow displays in th e big city. T h at evening some friends dropped into the fam ily home. Bob by seem ed a bit b ashful and reserved, and of course th e visitors trie d to draw him into conversation. “Well, Bobby, did you see th e big stores?” th e v isito rs asked. Bobby nodded. “Did you like th em ?” b ro u g h t a n other affirm ative nod. “A nd did you see S anta Claus?” th e visitor persisted. A no th er nod. “Did he say a n y th in g to you?” Bobby indicated th a t he had had some w ords w ith Santa. “Well, w h at did he say? I ’m sure it w as nice,” continued th e questioner. “H u h ,” sno rted Bobby. “He said, ‘Get th e ’ hell off’n th a t bicycle!’ ” H aven’t W e A ll? P lan tatio n Owner: “How is it, Mose, th a t y o u ’re alw ays so cheerful in spite of yo u r tro u b les?” Mose: “Well, suh, I ’ll tell yo’. I ’se jest learned to cooperate w id de in evitable.” N ot That D runk “As I u n d erstan d th e case,” said his honor, “you and y o u r h u sband had a d ru n k e n altercatio n and you w ere kicked in th e ensuing ru m p u s.” “No, sah, Jedge,” replied Mandy. “Ah w as kicked in de stum m ick.” A H ot One F a rm e r (to u rb an v isito r): “And n ex t I ’m goin’ to show you how we shock th e corn.” City w om an (to im p atien t h u s band) : “W ait a m inute, John, I ’d like to listen to this!” W ho Cares? Mrs. S traphanger: “Madam, you are stan d in g on m y foot.” Miss Ditto: “I beg yo u r pardon, I th o u g h t it belong to th e m an sitting dow n.” Curve A head “T hey say th a t to be a success in Hollywood, a girl has to m em orize h er lines.” “You’re w rong; she has to develop h er lines.” Just A bou t Speaker: men, I w an t Voice in H as it come “Now, ladies and gentle to tax y o u r m em ory.” A udience: “G reat grief! to th a t? ” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 19^2 R isk y “Pal, will you loan me th ree dollars? I w an t to catch a tra in .” “N othing doing! I don’t like these touch and go affairs.” N eeds P ractice Papa — Now, daughter! I sim ply w on’t have th a t new boy friend of yours kissing you like that! D aughter—Oh, give him a chance, father! H e’ll learn! W hy N ot? “I hear th a t your son left college be cause of poor eyesight.” “Yeh, he m istook th e dean of w om en for a co-ed!” W rong Again Jones—You can’t believe a th in g you read in the new spapers. Sm ith—W hy do you say that? Jones—Well, one of them in te r view ed m y wife and rep o rted th a t she had n o thing to say! That Gone Feeling H e—W hen I kiss a girl, she rem em bers it. She—H uh! W hen I kiss a m an, he never rem em bers a thing! G ood Nam e H ow True “H ave th ey nam ed the new baby nex t door?” “Sure—th ey call it W eath erstrip be cause it kep t it’s fa th e r out of the d ra ft.” “My w ife had a dream last night, and th o u g h t she m arried a m illion aire.” “You’re fortunate. Mine th in k s th a t in the daytim e.” “W henever m y hubby and I get into a battle, his snoopy sister patches things up.” “T he old sew-and-sew!” An E ye Full “My h u sband gets up in tim e for th e health exercises on th e radio every m orning.” “I d idn’t know he took ’em .” “He d esn ’t b u t th e girl in th e a p a rt m ent across th e co u rt does.” For D efense C ustom er—My goodness, eggs are high! Grocer—Sure, p a rt of national de fense program . C ustom er—How? Grocer—-All th e hens are m aking shells. S I N C E 1872 years of Service to Des Moines and Iowa ALLEY AVING BANK Member Federal Deposit Insurance Gorp. Frederick M. Morrison, President; Winfield W. Scott, Vice President; J. R. Astley, Cashier Edward P. Kautzky, Assistant Vice President; Roy E. ETuber, Assistant Vice President Frank M. Thompson, Assistant Cashier; Ray Thompson, Assistant Cashier https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis On the FinanciM. from une . . . Iowa Banks and Bankers are co-operating in every way possible to speed Victory: B y sellin g U. S. S a v in g s B o n d s a n d S ta m p s . B y fin an cin g W a r p ro d u c tio n w o rk . B y p ro v id in g B a n k in g fa cilities for service m e n a n d civilia n e m p lo y e e s of W a r p la n ts. B y aid in g c u sto m e rs w h o seek C o n tr a c ts w ith th e G o v e r n m e n t. B y c o -o p e ra tin g in th e reg u la tio n of co n su m er cred it. Correspondents are finding that the complete facilities of Iowa's Largest Bank are especially helpful in meeting the unusual demands of the times. M a y aie Aesuie you. DES MOINES NATIONAL BANK & Tr u s t C om pan y M e m b e r o f The https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal D e p o s i t Insurd nee Corporation
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