Full text of The Northwestern Banker : March 1943, Forty-Eighth Year, Number 668

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M ARCH

1943

RAIN , SN OW AND MIST

VICTORY

P ic tu rin g an ex p an se of C ity H a ll P a rk , N ew Y ork C ity, on a gloom y w in te r
a fternoon. See page 32.

BUY
U N IT E D *
STA TES

WAR
BONDS
AND

STAMPS


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Country Bunkers Division
Page 15

is Organized

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O u r N u m b er O ne T a s k
T oday's Num ber O ne task for bankers is to h elp fin an ce in­
dustry, farm ing an d the livestock b u sin ess, so th ey m ay furnish
am p le m aterial an d food for our arm ed forces.
W e b e lie v e this is our work a n d yours an d w e w ill g la d ly
coop erate w ith you a n d your custom ers in this vital effort.

A CEDAR RAPIDS BANK

CEDAR
R A P ID S

SERVICING A LL IOWA

MERCHANTS
NATIONAL BANK
OFFICERS
J ames E. Hamilton, Chairman
S. E. Coquillette, President
H. N. Boyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. Selden, Vice President
Fred W. S mith, Vice President
J ohn T. Hamilton II, Vice President
R. W. Manatt, Asst. Cashier
L. W. Broulik, Asst. Cashier
P eter Bailey, Asst. Cashier
R. D. Brown, Asst. Cashier
0. A. Kearney, Asst. Cashier
Stanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek, Building' Manager

Cedar R apids
Member Federal

Iow a

Deposit Insurance Corporation

N o rth w estern B an k e r, pu b lish ed m onthly by the De P u y P u b lish in g Company, a t 527 7th S treet, Des Moines, Iow a.
S u b scrip tio n , 35c p e r copy, $3.00 p e r year. E n te re d as second class m a tte r a t the Des M oines post office.


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FOREWARNED
is FOREARMED

F o r s a m p l e s o i L a M o n te
S a fe ty P a p e r s e e y o u r
L ith o g ra p h e r or P rin ter — or
w rite u s d irect.

the risk of financial loss and the attendant
confusion w hich results from the fraudu­
lent alteration or counterfeiting of checks.
In fact, it can b e fairly stated that since

D ay after d a y a n d night after night, the

the invention of Safety Paper b y G eorge

m e n a n d w o m e n of A m e r ic a 's C iv ilia n

La Monte in 1871, this product h as p la y ed

Army of D efense arc on guard. A m ighty

an in creasin gly important role in ch eckin g

arm y —over 10,000,000 strong —com petent,

and controlling such a b u se s of our m ajor

r e s o u r c e fu l, s p e c ia lly tr a in e d . » » In a

m ediu m of e x c h a n g e —THE CHECK.»»T h u s

significant, though less dram atic fashion

d o es La M onte help safegu ard the m yriad

La M onte S a fety P apers serve the interests

transactions that m ake up the B usiness of

of p rep ared n ess an d protection in B usiness

War —and of P eace.

PAPER
GEORGE LA MONTE & SON , N u t l e y , N e w J e r s e y

T he w a v y lin e s a r e a La M o n te tr a d e m a r k 1


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and Banking. They reduce to a minimum

4

THESE CH A R TS SHOW
ESTIM ATED PA RTIC I­
P A T IO N IN P A Y R O L L
S A V IN G S P LA N S FO R
W AR
S A V I N G S
B O N D S ( M e m b e rs of
A rm ed

Forces

Included

Starting August 1942)

*

ftpproxi'

STUDY THEM WITH AN EYE TO THE FUTURE!
T here is m ore to these charts than m eets the eye.
N o t seen, but clearly projected into the future, is
the sales curve o f tom orrow . H ere is the thrilling
story o f over 2 5 ,0 0 0 ,0 0 0 Am erican w orkers w ho
are today voluntarily saving clo se to FOUR A N D
A HALF BILLION DOLLARS per year in War
B onds through the Payroll Savings Plan.
T hink w hat this m oney w ill buy in the way o f guns
and tanks and planes for V ictory today— and
mountains of brand new consumer goods tomorrow.
Rem em ber, too, that War B ond m oney grow s
in value every year it is saved, until at maturity
it returns $ 4 for every $3 invested!

Here in deed is a solid foundation fo r the peace-time
business th a t w ill follow victory. At the same time,
it is a real tribute to the voluntary Am erican way
o f m eeting em ergencies that has seen us through
every crisis in our history.
But there is still m ore to be d one. As our armed
forces continue to press the attack in all quarters of
the g lob e, as war costs mount, so must the record
o f our savings keep pace.
Clearly, on charts like these, tom orrow ’s Victory
— an d tomorrow’s sales curves— are being plotted
today by 5 0 ,0 0 0 ,0 0 0 Americans w h o now hold
W AR BO N D S.

War Savings Bonds
This space is a contribution to America s all-out war effort by

NORTHWESTERN BANKER
N FRASER
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March 19^3

F ir e I n su r a n c e
s the guns of our fighting men blaze on the battle fronts from
to the South Seas, fire insurance continues to play
a vital role on the home front.
Months before our entrance into the war, the “industry which
protects other industries” had quietly and effectively thrown its
inspection and engineering facilities into the task of helping to
safeguard the industrial plants of the nation from sabotage and
carelessness. Losses in manpower and essential materials which
would have been equivalent to serious military reverses have
thus been prevented; substantial savings to taxpayers likewise
effected.
Further, the agents and brokers of the fire insurance industry
are bulwarks of strength on the civilian front. Without thought
of profit to themselves, agents, brokers and companies alike
have shown, in handling millions of dollars of War Damage
insurance, how an essential industry can be mobilized effectively
to carry on a vital war function in cooperation with the government.
Moreover, insurance in all its phases is being maintained in
our national life, thus strengthening civilian morale on a vital
home front and permitting greater concentration on the war
effort. Insurance dollars are going into U. S. Treasury Victory
Loan Bonds and the securities of war industries, thus helping
to buy guns, planes, tanks, ships.
Finally, we take deep pride in stating that 35% of the male
employees of The Home Insurance Company are now with the
armed forces.
☆
☆
☆

A

Wa r

in t h e

STATEMENT

lAfrica

D e c e m b e r 31, 1942
ADMITTED

ASSETS

Cash on Hand or in Banks and Trust
Companies............................. *$ 20,215,068.12
United States Government Bonds • • 12,378,338.50
All Other Bonds and Stocks . • • • 71,248,522.76
First Mortgage Loans , « • • • •
383,779.32
Real E s ta te ............................................ 3,879,315.95
Agents’ Balances, less than 90 days due. 7,666,305.78
Reinsurance
Recoverable on Paid Losses • • 1,076,289.00
Other Admitted Assets
135,861.61
Total Admitted Assets. • * .$116,983,481.04
LIABILITIES
Reserve for UnearnedPremiums
• . $ 49,707,620.00
Reserve for Losses
11,017,422.00
Reserve for T a x e s ...........................
4,521,522.00
Reserve for MiscellaneousAccounts .
813,505.75
Funds Held under Reinsurance Treaties
59,045.61
Total Liabilities Except Capital.$ 66,119,115.36
C a p i t a l ..................... 1 5 ,0 0 0 ,0 0 0 .0 0
S u rp lu s • • • • • 3 5 ,8 6 4 ,3 6 5 .6 8
S u rp lu s as R e g a rd s P o lic y h o ld e rs

We submit herewith our annual statement. This year the
figures are especially important, for they reflect a year of insur­
ance in war time. Behind the dollars and cents lies a human
story of even greater significance.

5 0 ,8 6 4 ,3 6 5 .6 8

T o ta l................... ....................... $116,983,481.04
Note: Bonds carried at $3,447,281.00 amortized value
and cash $50,000.00 in the above statement are
deposited as required by law. All securities have
been valued in accordance with the require­
ments of the National Association of Insurance
Commissioners. On the basis of actual Decem­
ber 31st market values, total Admitted Assets
would be increased to $120,423,617.78 and Sur­
plus to Policyholders would be increased to?
$54,304,502.42.
------------------------------ — D I R E C T O R S --------------------------------

L ewis L. C larke

W illiam S. G ray

W illiam L. D e B ost
E dwin A. B ayles
R obert G oelet

C harles G. M eyer

W ilfred K urth
G ordon S. R entschler
H erbert P. H owell

F rank E. P arkhurst
G eorge M c A neny
G uy C ary
H arold V. S mith
H arvey D. G ibson
F rederick B. A dams

* TH E HOM E *
N E W
FIRE

*

A U T O M O B I L E

Y O R K
•

M A R I N E

I N S U R A N C E

THE HOME. THROUGH ITS AGENTS AND BROKERS. IS AMERICA'S LEADING INSURANCE PROTECTOR OF AMERICAN HOMES AND THE HOMES OF AMERICAN INDUSTRY


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6

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March 1943

M A R C H

no

^k h w e/

tern

19 4 3
DES

MOINES

FO R T Y -EIG H T H Y E A R

NUM BER 668

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
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
527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

•
NEW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth Ave.
Suite 1806
Telephone MUrray Hill 2-0326

Editorials
Across the Desk from the Publisher.

Feature A rticles
Frontispiece—“Ship Ahoy”....................................................................................
Barnyard Loans Are Among the Best............................................... John F. O’Neill
A Bank T hat Grew Up With N ebraska..............................................................
News and Views of the Banking W orld........................................... Clifford De Puy
Country Bankers Division Organized....... ............Ben DuBois and W. B. Hughes
Bankers Comment On “Country Bankers Association”...........................................
Financial Advertisers Discuss W ar Time Problems.................................................
N orth Dakota Is Ready for 1943............... .............................................................
W hat Banks Can Do to Conserve Equipment....... ..............................H. E. Hoff er
W hat About a Bequest in a Will?—Legal D epartm ent.......................................

n
12
13

14
15
16
17

jg
20
21

Insurance
How to Prevent Rural Fires in a W ar Emergency....................... Reuben Brigham 23

M IN N E A P O L IS

O FFICE

Jos. A , Sarazen
Associate Editor
Telephone Hyland 0575

★

★

★

CONVENTIONS
A M E R IC A N BAN KERS
A S S O C IA T IO N
S p rin g M e e tin g , E x e c u tiv e C ouncil,
W a ld o rf-A s to ria , N ew Y ork— A p ril
9-14.
A m e ric a n In s titu te of B an k in g , C hi­
cago— J u n e 9-10.

ST A TE A S S O C IA T IO N S
T e x a s, F o r t W o rth — M ay 25-27.
In d ia n a , In d ia n a p o lis — M ay 26-27.
M in n e so ta , H o te l N ic o lle t, M in n e a p o ­
lis (te n ta tiv e ) — Ju n e 16-18.
W isc o n sin , M ilw au k e e — J u n e 23-24.

O TH ER O R G A N IZ A T IO N S
In d u s tria l B a n k e rs A so c ia tio n , E d g ew a te r B each H o te l, C h icag o — M ay

Bonds and Investments
Complete Investment in Governments a Sound Move................... James H. Clarke 31
Banquet for New Head of Omaha Stockyards................................. ...............
32

State Banking News
Minnesota News........ ...................................
Twin City News....................................
South Dakota News.......................... ..........
North Dakota News.....................................
Nebraska News ...... .....................................
Omaha C learin g s.................................
Lincoln Locals .....................................
Iowa News ....................................................
Two Iowa Groups Convene.................
Iowa News from Here and There....

1 he Directors

35
37
41
43
45
47
49
53
57
61

Room

A Few Short Stories to Make You Laugh.


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.......................................
Jam es M. Sutherland
........ ..................
.......................
-------------.......... .........
.......... ............
......................................
......................................
J . A. “Joe” Sarazen

70

8

Across the Desk
From the Publisher

Public Buys 22
D uring the past
Billion of Government
according t°
Securities in 1942
lished by the Pederal
Reserve B oard of W ashington, the absorption of
governm ent securities by non-banking investors
increased very greatly in 1942, a t w hich tim e
investors other th a n banks purchased 22 billion
dollars of governm ent securities com pared w ith
7 billion in 1941.
This is a healthy developm ent and it is hoped
th a t the public durin g 1943 will continue to
increase its purchases of w ar bonds.
As fa r as the ow nership of U nited S tates gov­
ernm ent securities by banks and insurance com­
panies is concerned, the figures a t the end of the
y ear were as fo llo w s:

1.
2.
3.
4.

Commercial Banks___ 41.3
Insurance Companies ...11
Federal Reserve Banks 6.2
Mutual Savings Banks 4.6

Billion
Billion
Billion
Billion

Dollars
Dollars
Dollars
Dollars

A t the end of the year, it is estim ated th a t the
investor group of the public held m arketable
issues am ounting to 15.1 B illion D ollars and nonm arketable issues of 21.2 B illion Dollars, and in
com m enting on these holdings the F ed eral Reserve
B ulletin said, “ In order to protect the investor

against the possibility of loss of principal, nonmarketable securities have been offered which will
be redeemed by the Treasury at fixed prices. In
addition, the policy of the Treasury and of the
Federal Reserve System has been directed towards
the stabilization of prices and yields of marketable
securities. Investors in nonmarketable securities
know in advance the prices at which they will be

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March 19^3

able to redeem their securities on any future date
that they may find it necessary to do so. Investors
in marketable securities know that prices and
yields are stabilized and that they will obtain no
higher yields by deferring purchases to a future
date” .
Thus, every reason is given fo r the public to
p articip ate in the purchase of bonds to help win
the w ar.

No Need for
R ecent investigation
Regional Agricultural h-Y th® By"a ' “ f :
^
i.. /-v
tee of the U nited
Credit Corporation
States senate int0
needless governm ent expenditures, has been in ­
quiring into the R egional A g ric u ltu ra l C redit
C orporation un d er the resolution presented by
S enator W h erry of N ebraska.
Inform ation received so fa r by the com m ittee
indicates th a t there is no real need fo r a revival
of this additional lending corporation.
G overnor of the F arm C redit A dm inistration,
A. G. Black, appearing before the committee,
m ade these statem ents, “ We want to guard

against the possibility that other agencies won’t
or can’t take care of loans. We make no claim
that lack of credit is a bottleneck in the food pro­
duction program.
“ We will be happy if we make no loans under
the RACC.
“ It is estimated that operation of 7 lending
programs under the Farm Credit Administration
cost $40,000,00 annually.
“ I have heard that country bankers were
unduly disturbed over the establishment of the

9

RACC. and we have been surprised at the concern
evidenced by the bankers.”
C ertainly, there is no need for the revival of
this additional lending governm ent agency w ith
the banks loaded w ith money which they will be
glad to loan any legitim ate borrow er.

Adding 5 Million
Workers Without
Hiring a
Single Man

W ith the passage of the
^8 hour week, we have
definitely increased our
capacity to produce w ith ­
out, at the same time, h ir­
ing a new m an or woman.
In a recent statem ent on this subject, L eonard
C. A yres, w ell-know n economist of Cleveland, said,
“ In our in d u stry the average w orking Aveek is
about 42y<2, hours. If it should be increased to
48 hours, and if the increase should apply to all
w orkers except those in ag ricu ltu re and domestic
service, the change would be equivalent to adding
5 m illion w orkers to our labor fo rc e .”
Since the 48 hour program has now become a
law, you can see, as Colonel A yres points out, this
lias the effect of adding 5 m illion to our labor
force w ith out h irin g a single man.

I t is to be hoped
t h a t th e S e n a t e
B anking Com mittee
will urge prom pt
enactm ent of the bill to elim inate FD IC assess­
m ents on W ar Loan A ccounts of banks and th eir
elim ination from reserve requirem ent basis.
The proposed change u n d er the bill would
operate only for the d u ratio n of the w ar and six
m onths th ereafter.
Leo T. Crowley, chairm an of the F ed eral Depos­
it In su ran ce C orporation, and M arriner S. Eccles,
chairm an of the F ed eral Reserve B oard, recently
testified before the Senate B anking Committee
u rg in g the elim ination of these FD IC assessments.
A ccording to C hairm an Crowley, the income
of the FD IC in 1942 was $55 m illion and estim ated
income fo r 1943 is $70 million, indicating th a t
the C orporation conld afford the rem oval of the
w ar loan accounts from deposit insurance liabil­
ities. He said th a t w ar loan deposits in banks
average about lVo% of' T reasury n et borrow ings.
C hairm an Eccles told of the Reserve S ystem ’s

Should Eliminate FD IC
Assessments on W ar
Loan Contracts

cam paign to encourage w ar loan accounts in
banks and declared th a t the enactm ent of the
bill w ould not only aid the banks, bu t would
encourage the establishm ent of such accounts.
B anks, he said, were not now enthusiastic about
Avar loan funds upon w hich they had to pay
y12 of 1 % in tere st for FD IC insurance.
B anks h a v e n o p a r t i c u l a r d e s i r e to secure w ar
loan f u n d s when t h e y haAre to p a y in tere st f o r
FD IC in s u r a n c e , a n d Ave t h i n k th e e li m i n a ti o n
o f t h i s assessm ent is in lin e Avith g o o d b u s in e s s
and sound banking.

A good m any bankers
are purchasing govern­
m ents and expect to
hold them to th e ir m a­
tu rity date.
O ther bankers have purchased
governm ents, sold them a t a profit and th en re ­
purchased other governm ent securities.
In speaking before the New Y ork S tate B ankers
m id-w inter conference, A llan Sproul, P resid en t
of the F ed eral Reserve B ank of New Y ork, sug­
gested th a t bankers should not look upon th eir
governm ents from a tra d in g standpoint b u t th a t
they should be purchased and held u n til m atu rity .
Mr. Sproul said, “ It will do no good to the

Trading "G overn­
ments" for a Profit
Not Favored

banking profession if any number of you con­
tinues to look on the Government security market
as merely another market in which you trade for
profit. Nor is the question of buying Government
securities any longer solely a question of your
own special requirements. The time has come for
each bank to do its share in each issue of Govern­
ment securities offered for bank subscription.”
I t is our firm conviction th at, “ each b an k is
doing its s h a re ” in the purchase of governm ents
as indicated by the recent statem ents published
at the end of the year.
HoAvever, Ave do not believe th a t it is necessary
to m ake an iron-clacl rule th a t no banks shall trad e
out of one governm ent issue and purchase an o th er
if for some reason the bank feels th a t th a t is a
desirable procedure to follow. W e do believe,
hoAveArer, th a t m ost banks are purchasin g th eir
bonds to hold for the “ d u ra tio n .”

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10

Com plete In Its
C orrespondent Services

Always Prompt
and Courteous In
Its Attention to All
C orrespondent Needs

"Iowa’s Friendly Bank »

THE (E IIT R flL nflTIO nflL BflnK
m t r u s t com pflny
Fifth Avenue Between Locust and Walnut
DES M O IN ES, IOW A

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12

Barnyard Loans

A re Among

the Best a Bank Can M ake
The Study and Analysis of Farmers' Chattel Mortgage Operating
From the Banking Holiday in 1933 to the Present Day
H E object of m y stu d y w as to ex­
am ine fa rm e rs’ ch attel m ortgage
o p eratin g loans to d eterm in e th e
econom ic value and benefits to be de­
rived by both len d er and borrow er,
and th e relatio n of such benefits to th e
general w elfare of th e com m unity. The
analysis w as m ade from th e persp ec­
tive of a b an k cred it officer charged
w ith th e resp o n sib ility of p ro p erly in ­
vesting deposit funds. W e found th a t
the v a st a rm y of people em ployed in
th e prod u ctio n of a g ric u ltu ra l com ­
m odities need, and do use, operatin g
capital in large q u an tities, although in
sm aller individual am ounts th a n do
producers of in d u stria l products.
M any farm ers have v e ry lim ited cap­
ital, hence th e need for an analysis of
the n a tu re of th e secu rity w hich th ey
can offer. W e considered th e h azards
in h e re n t in such loans, som e of w hich
differ from those of o th er in d u stry .
T he collateral rem ain s in th e b o r­
ro w e r’s possession and is daily used
by him . P erso n al p ro p e rty is easily
tra n sp o rte d and sold.
D elivered collateral cannot be easily
m anip u lated by th e b o rro w er to defeat
th e lien.
F arm in g is u su ally a fam ily e n te r­
prise, and all m em bers m u st cooperate
to m ake it .a success.
T here are m any o th er hazards, and
I endeavored to o utline m ethods of
reducing th em to th e m inim um .
I began th is analysis w ith a tim e of
g reat u p h eav al in th e econom ic h isto ry
of ou r n atio n —th e B anking Holiday.
In M arch 1933 o u r b a n k h ad 56 loans
secured by farm ch attels of th e b o r­
row ers. All w ere n o t o riginally m ade
as o p eratin g loans. Some w ere tag
ends of loans m ade for o th e r purposes
w hen th e m ak ers w ere in b e tte r finan­
cial circum stances. R egardless of this,
all loans of th e b a rn y a rd ty p e w ere
included in th e analysis. By M arch
of th e follow ing year, n early 63 p er
cent of th e to tal of th ese loans h ad
been collected. D uring th is sam e pe­
riod, only 14 p e r cen t of all o th e r loans
had been paid.
In o th er w ords, these b a rn y a rd ty p e
loans contained appro x im ately tw o

T

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March 19b3

By John F. O'Neill
C a sh ier
F i r s t T r u s t & S a v in g s Bank
A rm stron g, Iow a

J O H N F . O ’N E I L L

and a th ird tim es th e liquidity ex­
h ibited by all o th er loans held by the
bank. The collection period covered
one year.
W e subm it th a t it is seldom a bank
is called upon to deplete its deposits
m ore th a n half in such a period of
time.
W e found th a t th e liquidity con­
tain ed in th ese loans w as n ot alw ays
p redicated upon th e w orth-debt ratio
of th e borrow er.
E lev en of th e 33 lines w hich w ere
fully paid d u rin g th e tw elve m onths
had a w o rth to c u rre n t debt ratio of
less th a n 1 .00.
On only one loan in th e group w as a
loss sustained. T his loss w as less th a n
1 p e r cent of th e volum e, and less th a n
one-eighth of th e th e n c u rre n t in te r­
est rate. I m ay add th a t we have not

Loans

sustained a loss on a loan of th is kind
since. W hat o th er class of loans can
show a b etter record?
L iquidating au th o rities re p o rt g reat­
er percentages of recoveries on farm ­
e rs’ loans adequately secured by farm
chattels th a n on those su p p o rted by
fat financial statem ents.
T he safety of th is ty p e of loan has
since been d em o n strated by th e ex p eri­
ence of th e Regional A g ricultural
C redit C orporation and th e P roduction
C redit C orporation, both of w hich are
g overnm ent agencies.
W e know of no o th er source from
w hich such safe, profitable and d esir­
able loans can be secured to fill th e
need in earn in g assets in banks in
good a g ricu ltu ral com m unities. W e
found th a t borrow ers of th is type long
rem ain p atro n s of th e b an k serving
them .
Our te rrito ry has a high percentage
of te n a n t farm ers, b u t despite th e law s
of n atu re, economic changes, and th e
w him s of m an, eight y ears later, 38 of
the 56 m en in th is group w ere still our
patrons.
T h irteen of th em w ere still borrow ­
ers.
By m eans of ch attel m ortgage secu­
rity, these 56 farm fam ilies w ere ex­
tended th e needed credit w hich en­
abled th em to continue as independent
individuals, m ain tain in g and su p p o rt­
ing them selves w ith o u t becom ing pub­
lic charges.
Some of m y conclusions based upon
th e findings of th is analysis and expe­
rience as an officer of a c o u n try b ank
are as follows:
T h at farm ers’ ch attel m ortgage op­
era tin g loans are sound from th e sta n d ­
point of safety of principal. T hey con­
tain sufficient liquidity to m eet th e n o r­
m al req u irem en ts of co u n try banks to
w hose life-blood th e y co ntribute.
T h eir sm all loss ratio, th e ir relativ e
liquidity, coupled w ith a su b stan tial
in te re st re tu rn , and eligibility for re ­
discount purposes, m ake th em d esir­
able as b an k assets.
(T u rn to page 27, please)

13

A Bank That Grew Up
W ith

Nebraska

This Year Marks the 65th Anniversary of the McDonald State Bank of
North Platte— Here Are Some Interesting Highlights in the His­
tory of the Institution and of the McDonald Family— W . H.
McDonald Is Chairman of the Board of the Bank

N 1855, C harles M cDonald arriv e d in
th e th e n te rrito ry of N ebraska. He
w as a m em ber of th e T e rrito ria l leg­
isla tu re for several term s, including
th e second, w h ich w ere held in Om aha
—th e n th e capital. W hile th e re he
m et his wife, Miss O rra B. H enry, and
th e y w ere m a rrie d in Om aha in 1858.
T h ey occupied th e farm on w hich Mr.
M cDonald h ad first settled —in R ich­
ard so n county, N ebraska.
On J a n u a ry 15, 1860, Mr. M cDonald
m oved to C ottonw ood Spring, w h ere
he tra d e d for a tw o-room log cabin and
p u t in a sm all stock of goods and be­
gan to build his O verland R anch and
T rad in g P o st on th e old Oregon and
O verland T rails. L ater, Mrs. McDon­
ald joined him , an d w as th e first w h ite
w om an to be p e rm a n e n tly located in
w h a t is now L incoln county. T here
w ere th o u san d s of pilgrim s, or o ver­
land trav elers, passing over th e road
w. H . M cD o n a l d
going to all of th e w e ste rn te rrito rie s
H e knew Buffalo B ill
and Oregon and C alifornia.
In Ju n e, 1861, W illiam M cDonald—
The Indians, and th ey w ere esti­
th e subject of th is sk etch —w as born,
being th e first w h ite child b o rn in th is m ated to have about 25,000 w arrio rs,
co u n ty —th e n called S h o rter county— becam e v ery m uch dissatisfied w ith
and his earliest p laym ates w ere little th e large am ount of trav el over th e
Sioux papooses, m em bers of th e v a ri­ highw ay th ro u g h th e buffalo and wild
ous b an d s w ho cam ped n e a r th e Mc­ gam e country, and th e y got so “b ad”
D onald ra n c h in th e su m m ertim e to th a t th e U nited States governm ent
trade. T he squaw s th o u g h t W . H. w as established th e first fo rt betw een old
th e p re ttie s t child th e y h ad ev er seen, F o rt K earney and F o rt L aram ie, W y­
and th e y k e p t h is m o th e r contin u ally om ing, about 500 y ard s w est of the
M cDonald ranch, in October, 1863.
supplied w ith fancy beaded m occasins
T he first soldiers detailed to build
u n til he began to w ear boots. On one
occasion, W. H. w as “bo rro w ed ” by th e fort, first called Camp McKeen,
th e In d ian s and carried to th e ir cam p m ade them selves a t hom e on th e Mc­
Donald ran ch u n til th e y got th e ir
an d k e p t th e re all afternoon.
T he M cDonald ra n c h w as b u ilt of buildings read y for occupation.
It la te r becam e b e tte r know n as
red cedar tim b e r cu t in Cottonw ood
Canyon ju s t so u th of th e ranch. It F o rt M cPherson and becam e one of
w as 225 by 300 feet, w ith a stockade th e m ost im p o rtan t go v ern m en t posts
in th e w estern p a rt of th e U nited
8 feet h ig h clear aro u n d th e outside.
On tw o sides w ere th e b uildings—one States. Besides m any high ran k in g
sto ry dw elling and log store 24 by 40 officers serving there, w ere such wellfeet (tw o sto ries), to g e th e r w ith P il­ k now n In d ian fighters and scouts as
grim room , store house, b lacksm ith M ajor F ra n k N orth, chief of the
Paw nee Scouts; his bro th er, Captain
shop an d stables for ab o u t 65 horses.

I

L ute N orth, Buffalo Bill Cody, Texas
Jack, Buffalo Chips, and others.
Buffalo Bill cam e to th e F o rt in 1869
as chief of U nited States Scouts w ith
th e 5th Cavalry. T he g overnm ent b u ilt
him a residence a few feet w est of th e
M cDonald ran ch w here he resided u n ­
til he and Texas Jack w en t on th e
stage in 1872.
In 1872, Mr. McDonald having sold
his ran ch to th e U nited States govern­
m ent, m oved to N o rth P latte, w here
he resided and did business u n til his
death in 1919. W hen he m oved to
N o rth P latte, a g reat p a rt of th e tra n s ­
po rtatio n business w as done w ith bull
team s and young Bill, h aving alw ays
been able to sw ing and crack a long
bull w hip, helped in th e m oving by
d riving one of th e 3-yoke bull team s
into tow n, m uch to th e envy of th e
o th er young boys w ho w ere w atching
him . H is fa th e r opened up a farm
and general store, and W. H. w orked
in both afte r school hours, or h erding
a sm all h erd of cattle his fa th e r also
owned.
A fter th e U nion Pacific R ailroad
arriv ed in 1866, a large nu m b er of cat­
tle ran ch es w ere sta rte d in th e co untry
and W. H. w as delighted to atten d
and help on th e roundups.
In th e spring of 1877, a sm all priv ate
b ank w as sta rte d in N o rth P latte by
L ester and J. C. W alker, u n d er th e
title of W alker Bros., and on Ja n u a ry
1, 1878, C harles M cDonald bought th e
controlling in te re st of L ester W alker
and operated th e b an k as McDonaldW alker u n til N ovem ber, 1878, w h en he
becam e sole ow ner and th e b an k th en
becam e th e “B anking H ouse of C harles
M cDonald.” W hen state supervision
of banks w as introduced, th e title w as
sho rten ed to B ank of C harles McDon­
ald, w ith capital of $30,000.
W hile W. H. M cDonald h ad assisted
in th e b an k a t various tim es d uring
school vacations, he becam e perm a­
n en tly connected w ith th e b an k in
(T u rn to page 28, please)
N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 1943

14

N

ew s

a n d

V

ie w s

OF THE BANKING WORLD
By Clifford DePuy
| F YOU w a n t to spend a d elightful
I and p leasan t discussion on T urkey,
its custom s and its trad itio n s, ju s t
invite Huntington Turner, vice p re si­
dent of th e Chem ical B ank & T ru s t
Com pany of N ew York, to be y o u r
guest, as he sp en t th re e y ears in T u r­
key and know s all th e officials from
th e top to th e bottom .
R ecently we h ad th e p leasure of
en terta in in g “H u n t” a t our hom e for
“te a ” and he told us of his experiences
w hen his b an k sen t him to T u rk ey
to build a m odern hosp ital a t M anisa
in order to c a rry out th e tr u s t ag ree­
m en t of an estate v alued a t m ore th a n
10 m illion dollars, w hich w as left by
Morris Schinasi, a w ealth y T u rk ish
tobacco p roducer in th is country.
T his job took th re e y ears and
b ro u g h t “H u n t” in contact w ith all
th e leading officials of T urkey.
Incidentally, Mr. T u rn e r received
m uch of his early education in E u ro p e
and speaks F re n c h fluently.
In th e p re se n t conflict, he says th a t
T u rk ey is definitely for th e U nited
States, as th e y do n o t tr u s t e ith e r G er­
m any or E ngland, b u t have g re a t faith
in th e U nited States because a fte r
W orld W ar No. 1 we desired no ad d i­
tional te rrito ry in T u rk e y ’s realm of
influence.
W e still can ’t figure out how H u n t­
ington T u rn e r, one of th e handsom est
b an k ers w e know , ev er m issed th e call
to Hollyw ood—his fath er, a p ro m in en t
law yer, alw ays w an ted to be an actor.

T he N or thw estern B anker obtained
th is p icture of these tw o distinguished
sailors and th en asked the one on th e
rig h t, b e tte r know n as Frank C. AVelch,
p resid en t of th e Peoples Savings B ank
of Cedar Rapids, to tell us “all about
it,” an d here is w h at “Admiral W elch”
w ro te th e N or thw estern B a n ker :

Captain Eddie Rickenbacker, w hose
th rillin g articles on th e “Pacific Mis­
sion” h as stirre d th e country, also
b ro u g h t back w ith him a m essage to
A m erican labor w h ich is aro u sin g a
g reat deal of discussion. He said w h en
he first re tu rn e d th a t if th e soldiers
in th e Solomon Islan d s could be ex ­
changed for th e m en in th e factory
th a t p roduction w ould be doubled in 30
days.
J u s t recen tly he has ad d ressed th e
N ew Y ork legislature, an d a t th a t tim e
he said, “Yon cannot demand that the
mass of common folk shall think only
of w inning the war if the aristocracy
of labor unionism is thinking only of
more dues and more power—and the
inner clique of bureaucracy is think­
ing only of a fourth term.”

“During the last war, I was one of the
supply officers on the U.S.S. Wilhelmina, a troop transport. When Ted
was home after receiving his commis­
sion at Abbott Hall, Northwestern Uni­
versity, I managed to squeeze into the
old uniform and we had this picture
taken. You will observe I got into it
even though it bulges in spots.
“Ted is now an officer aboard a de­
stroyer with the Atlantic fleet. He likes
it fine, and will no doubt make a much
better naval officer than his old man
ever was.”
Also, additional honors have come to
“A d m iral” W elch, as Frank P. Powers,
p re sid e n t of th e K anabec State B ank
of Mora, M innesota, and p resid en t of
th e S tate B ank D ivision of th e A. B. A.,
has appointed th e “A dm iral” to serve
on th a t division’s “Com m ittee on F ed ­
eral S u pervisory A gencies.”

N orthw estern B anker

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

March 194-3

On Ju n e 30, 1943, President Roose­
velt’s a u th o rity to cu t th e gold co n ten t
of th e dollar expires. H e has had th is
a u th o rity for 10 years.
U nless Congress acts before then,
th e co n ten t of th e dollar w ill be frozen
a t 15 5/21 grain s of gold nine-tenths
fine, and th e m oney in th e stabilization
account autom atically w ill go into th e
tre a s u ry ’s g eneral fund.
M any senators are opposed to th e
continuation of th is pow er, and am ong
those is Senator Moore of Oklahom a,
w ho believes th a t a contest on th e
issue w ould show “w hether Congress
is going to reclaim the powers that
never should have been delegated to
the executive.”
H. Donald Campbell, p resid en t of th e
Chase N ational Bank, recen tly said
farew ell to th e 1,000th Chase m an to
leave for w ar service. H e w as Jack G.
Fuchs, w ho has been a m em ber of th e
b ro k ers d ep artm en t for th e p a st 15
years.

“ A D M IR A L ” F R A N K C. W E L C H
AND SO N , T E D

Paul E. Hardesty, m anager of th e in ­
surance d ep artm en t of th e C ham ber
of Commerce of th e U nited States, in
a recen t le tte r to us said, “Y our edi­
torial in th e Ja n u a ry issue of th e
N or thw estern B a n ker , ‘Who Built
America Anyway?’ w as read by m e
w ith ad m iration and approval. I took
occasion to refer it to our president,
Eric A. Johnston. T he religious, po­
litical and econom ic im plications of
th e statem en ts of th e divine you
quoted are so u n th in k ab le th a t I shall
not u n d ertak e an analysis in th is le t­
te r.”
A. AY. Bird, cashier of th e Dyersville N ational Bank, h ad over $1,736,000 deposits in his b ank as of Decem ­
ber 31, 1942. D uring th e p ast y e a r th is
in stitu tio n has sold over $300,000
w o rth of W ar Bonds to th e ir custom ­
ers.
Mr. B ird has done a v ery clever
th in g in his b an k statem en ts and has
used th e inside pages of a four-page
folder to tell th e “Im portance of Dyersville as a B usiness, T rading an d B an k ­
ing C enter.”
Henry Canenburg, p resid en t of th e
Com m ercial B ank of B assett, N e­
braska, in a le tte r to th e N o r thw est ­
ern B an k er , said, “In read in g y o u r
F e b ru a ry issue I w as m uch im pressed
w ith W illiam B. Hughes, secretary of
th e N ebraska B an k ers’ A ssociation,
article “C ountry B an k er’s A ssociation
to be O rganized”. I believe th a t th a t
should be done as w e m u st have an
association of sm all bank s w o rking to ­
g eth er if w e desire to exist. If th ere
(T u rn to page 63, please)

15

Country Bankers Division
of the Independent Bankers Association
Is Organized at St. Louis Meeting
By Ben DuBois, S e cre tary

^

In d e p e n d e n t B a n k e rs A s s o c i a t i o n

MR. DuBOIS S A Y S :
“W e had th e m ost successful council
m eeting th a t we have ev er h ad—some
20 sta te s w ere re p re se n te d and m any
helpful ideas w ere subm itted.
“T he council approved unan im o u sly
th e creatio n of o u r Country Bank D ivi­
sion of th e In d ep en d en t B an k ers Asso­
ciation, w ith E. E. Placek, p resid en t
F irs t N ational B ank, W ahoo, N e­
braska, p re sid e n t an d th e w rite r as
secretary . W e feel th a t w ith th is di­
vision th e problem s of th e fo rg o tten
co u n try b a n k e r w ill be b e tte r tak en
care of.
“T he g ro w th of th is A ssociation
seem s to be inevitable and our influ-

W illiam B. Hughes, S e cre tary
N e b r a s k a B a n k e rs A s s o c i a t i o n

farm credit in the offing and th e a tti­
tude of th e p re se n t Congress such as it
is we feel assu red th a t th e re w ill be
an investigation ordered th a t w ill su r­
prise th e N ation in its findings. W e
are g rateful to Senator Kenneth S.
W herry of N ebraska for th e in tro d u c­
tio n of th is resolution and we are con­
fident th a t S enator Harry F. Byrd’s
C om m ittee w ill do a th orough job.
“W ith th e ban k ers of th e co untry
th o ro u g h ly aroused to th e socialistic
tre n d and w ith th e general support
th a t w ill follow we feel th a t our efforts
su pplem ented by th e su p p o rt of the
ABA w ill not be futile.
“We are sending you tw o resolutions
adopted by th e Council. T here w as
no change in th e Council’s m em ber­
ship or in th e executive or appointive
offices.”

Mr. Hughes says:

B E N D u B O IS
"— G row th S e e m s I n e v ita b le ”

ence w ill follow in proportion. Sub­
sidized socialized cred it is n a tu ra lly
re p u g n a n t to ev ery th o u g h tfu l A m er­
ican. PCA com petition is aro u sin g
th e co u n try b a n k e rs in no u n c e rta in
term s and th e last m ove of th e A gri­
c u ltu re D ep artm en t to resu scitate th e
RACC h as stirre d up real indignation.
“W ith an in v estig atio n of socialized

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Federal Reserve Bank of St. Louis

“T here w ere th irty p resen t a t the
m eeting of th e E xecutive Council of
th e Independent B ankers A ssociation
a t St. Louis. T hey rep resen ted te r r i­
to ry from Colorado to South Carolina;
from M innesota to L ouisiana; from
P en n sy lv an ia to Texas.
“N. B. M atthews of Stam ford, Mon­
tana, presided.
“The m eeting opened w ith a state­
m e n t by S ecretary Ben DuBois con­
cern ing th e new P atm an Bill, H R 316,
to freeze branch b anking as is. He
said th e bill has been im proved. He
looks for a renew al of the push to ex­
te n d b ran ch banking. T he situ atio n in
th e various States w as canvassed, and
th e caution w as expressed and em pha­
sized th a t th e b an k ers in th e few
S tates having anti-branch b an k s ta t­
u tes m u st be as a le rt as others, for a
N ational b ran ch b ank law w ould spoil
th e ir situ atio n s v ery quickly.
“L uncheon w as served in an adjoin­
ing room , after w hich th e m eeting
h e a rd Em il E. Placek, E. W. Rossiter
an d Wm. B. Hughes, all from N e­
b raska, on subsidized com petition of

th e P roduction C redit A ssociation; the
uphill eight m onths fight to get any
so rt of activ ity ag ain st PCA’s by th e
A m erican B ankers A ssociation, or sup­
p o rt from o th er S tate A ssociations; th e
quick and w illing assistance given by
S ecretary DuBois of th e In d ep en d en t
Association; the a p p aren t need of some
organization to cham pion sm all coun­
try banks w ith o u t the necessity of a
long fight for assistance, and th e pro­
posal th a t the m eeting ra tify th e in ­
form al creation by S ecretary DuBois
and P resid en t A. P. Drummond of a
C ountry B ankers D ivision of th e In d e­
pen d en t B ankers A ssociation.
“S ecretary DuBois explained th a t in
o rder to get sta rte d p rom ptly he had
secured inform al consent to send out
th e first of a series of letters to go to
all m em bers of Congress and to a long
list of others, to be followed a t tenday in terv als w ith o th er sim ilar let­
ters. A copy of th is first le tte r is as
follows:
“During the War Em ergency all
nonessential governm ent bureaus and
agencies should be eliminated, and
those agencies w ith governm ent sub­
sidized capital should be required to
return such capital into the United
States Treasury, to help finance the
War.
“The personnel of such bureaus and
agencies, if released would help solve
the labor shortage. Thousands of men
and women are on the payroll of such
bureaus and agencies that serve no
useful purpose, making the taxpayer’s
burden just that much heavier.
“What is Congress going to do about
it?
Yours very truly,
E. E. Placek, President
Country Bank Division.
“A discussion of th e situation, and
of th e services th e I.B.A. m ight con­
trib u te, ensued.
“A resolution au th o rizin g th e form a­
tion of a C ountry B ank Division w as
adopted unanim ously.
“M eans of building up m em bership
N orthw estern B anker

March 1943

16
in th e vario u s S tates w ere discussed
and plan s laid for inten siv e effort for
new m em bers to provide for th e cost
of carry in g on a cam paign ag ain st su b ­
sidized credit.
“A d in n e r a t 7:00 P. M. w as th e con­
cluding function, b rin g in g to a n end
a busy day d u rin g w hich th e en­
th u siasm for th is new field of w o rk
w as clearly m anifested.”

Resolution Asking
Passage of Patman Bill
W HEREAS, The Independent Bank­
ers Association was organized for the
purpose of opposing branch banking,
and
W HEREAS, branch banking is
monopolistic in tendency and detri­
mental to our national economy, and
W HEREAS, The only logical m eth­
od of holding this movem ent in check
is through Federal legislation, and
WHEREAS, There is now a bill be­
fore the House Banking Committee,

being H. R. 316 introduced by Wright
Patman of Texas, that, if passed would
prohibit further branch banking ex­
pansion,
THEREFORE, BE IT RESOLVED,
That the Executive Council of the
Independent Bankers Association in
session at St. Louis, Missouri, does now
reaffirm its unalterable opposition to
branch banking and does urge upon
Congress the necessity for the passage
of this bill.

Resolution on Production
C re d it A ssociations
W HEREAS, For the purpose of
m eeting an emergency, certain Gov­
ernment subsidized lending agencies
were created, and
W HEREAS, An abnormal and un­
necessary expansion has been made in
Production Credit Corporations and
Field offices amounting to an increase
of 53 per cent in 1941 and numerous
new branch offices have been added

since, all after the emergency has
passed, and
WHEREAS, Contrary to the prin­
ciples of the American system , the
Production Credit Corporations and
Associations are aggressively seeking,
with the help of a subsidy from the
Government, and its taxpayers, and
exemption from taxes, to solicit and
take from commercial banks the agri­
cultural loans that compromise the
principal earning assets of such banks,
and
WHEREAS, Said subsidy furnished
to the Production Credit Corporations
and Associations in the amount of
«$120,000,000 created an unnecessary
burden on the Treasury of the United
States and on the taxpayers,
NOW, THEREFORE, BE IT RE­
SOLVED, By the Executive Council of
the Independent Bankers Association,
in session at St. Louis, Missouri, urges
the Congress to recall this subsidy to
the end it may be employed in finan­
cing the war.

Bankers Comment on Organization oí

"Country Bankers Association"
N the February issue of the N orth ­
B anker there was an article
on page 10 on “Country Bankers Asso­
ciations to Be Organized” by William
B. Hughes, secretary, Nebraska Bank­
ers Association of Omaha.
The follow ing letters sent the
N or thw estren B anker comment on
this article. Since these letters were
written, the “Country Bankers Divi­
sion” of the Independent Bankers As­
sociation has been created. A story on
this w ill be found in this issue of the
N or thw estern B a n k er , page 15.

I

w este rn

"Country
Bank
Division"
Should Be Under A . B. A .
In com m enting on a sep arate “coun­
try b an k ers o rg an izatio n ” as re fe rred
to in th e F e b ru a ry issue of th e
N orthw estern B a n ker , K. O. Satire,
vice p resid en t an d cashier of th e
Blue E a rth S tate B ank, Blue E a rth ,
M innesota, in a le tte r to th e N orth ­
w este rn B anker said, “I feel th a t th is
organization w ould be som ew hat
superfluous. Such a division should
be set up in th e A. B. A. w ith every
pro p er re p re se n ta tio n in th e m an ag e­
m en t of th e natio n al association. I
believe th a t we w ould get fu rth e r
N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 1943

fa ste r by organizing a ‘C ountry b ank
division’ u n d er th e A. B. A. th a n in
settin g up a w hole new organization.
In th is w ay a u n ity of all b a n k e rs’ in ­
te re sts could also be effected.”

"A B A Not of Much Use to
Smaller Banks"
“W e are glad to give our view s re ­
g ard in g th e article you published in
th e F e b ru a ry issue of th e N o rthw est ­
ern B anker in respect to a C ountry
B ankers A ssociation organized to fight
P. C. A. com petition,” says R. E. Cocklin, vice president, W auneta Falls
Bank, W auneta, N ebraska. “W e are
in for an y th in g th a t w ill help beat th is
th in g th a t is try in g to be unloaded on
the co u n try banks to tak e aw ay th e ir
already low earnings. We do not con­
sider the American Bankers Associa­
tion of much use to smaller banks ex­
cept for the code they put out.
“R egarding ratio n b an king it is
going to be a terrib le nuisance and
w ith th e prospect of losing tw o-thirds
of our experienced help, we cannot
look upon it w ith m uch favor b u t it
seem s th a t it is going to get w orse and
w orse.”

A . B. A . Had to Be "Smoked
Out"
“We v ery m uch like Mr. H u ghes’
article ap pearing in y o u r F eb ru ary
issue of th e N or thw estern B an k er ,”
says Robert D. Beery, p resid en t of
the U nion S tate B ank of B row ns V al­
ley, M innesota. “T he C ountry B ank­
ers are fo rtu n ate indeed to have m en
w ith th e courage an d ability of Mr.
H ughes fighting th e ir cause. I t is
highly im p o rtan t th a t th e co u n try
b an k ers have an association of th e ir
own w orking in h arm ony w ith th e
In d ep en d en t B ankers A ssociation, w ho
have lead th e fight against go v ern m en t
socialized credit. I t is v ery disap­
pointing th a t our g reat A m erican
B ankers A ssociation, presum ed to re p ­
resen t all th e banks of th e country,
is so m ade up th a t it is difficult for
them to appreciate th e C ountry B an k ­
ers problem s. H ow ever, we are v ery
appreciative to w itness now th e sp len­
did effort being m ade by th e A. B. A.
in opposition to th e v arious g overn­
m ental socialized credit agencies. It is
unfortunate for the National Associa­
tion that they did not take immediate
action rather than wait until being
‘smoked out’.”

17

Financial Advertisers Discuss

W ar Time Problem
How Financial Institutions Can Further the Sale of Government Bonds—
Trust Business and the Post-War Economy— W hat Financial Institutions
Should Be Doing Now in Advertising— These W ere a Few of
the Questions Discussed at the Chicago Regional Meeting
of Financial Advertisers Association
of th e F in a n ­
cial A d v ertisers A ssociation from
six sta te s m et last m o n th a t th e
E d g ew ater Beach H otel in Chicago
to discuss c u rre n t w artim e financial
ad v ertisin g problem s.
It could be described as a “Lou-Lew ”
of a m eeting or as an “L ” of a good
m eeting if you p refer, because Lou
Townsend, L ew is F. Gordon, Lew ell
Laft'erty and, of course, Lucy David
all p articip ated in th is v ery in te re st­
ing one-day convention.
Clifford S. (Hap) Young, p resid en t
of th e F ed eral R eserve B ank of Chi­
cago, told th e convention th a t th e
total b an k deposits of th e nation now
am o u n ted to 102 billion dollars and
th a t financial ad v ertisin g h ad helped
to m a in ta in th e good w ill of th e cus­
tom ers w ho m ade th ese deposits as
w ell as to assist in selling th em gov­
e rn m e n t bonds.
Francis F. Patton, ch airm an of th e
Chicago V ictory L oan Com m ittee, said
th a t w h en a b an k buys bonds it is in ­
flationary and th a t th e excess p u r ­
chasing pow er, w hich is now being
created, m u st be absorbed e ith e r by
tax es or th e p u rch ase of gov ern m en t
securities. In 1929 th e natio n al in ­
come w as 85 billion dollars an d in
1943 it m ay reach 135 billion dollars.
A t th e p re se n t tim e, we are spending
$6,000,000 p er m o n th for w ar.
As fa r as g o v ern m en t bonds are
concerned, e ith e r th e com m ercial
ban k s w ill “sell ’em or buy ’em”.
Victor Cullin, a ssista n t se cretary of
th e M ississippi V alley T ru s t Com pany
of St. Louis and p ast p resid en t of th e
F. A. A., believes th a t b an k s should
have som e b ra n d new ideas for tru s t
d e p a rtm e n t business a fte r th e w a r is
over. T he longer th e w ar lasts, the
m ore th e g o v ern m en t is likely to tak e
over th e tru s t business
W e should p u t m ore g lam our into
our tr u s t b u siness w hen th e w ar ends.
Common tr u s t funds for various

R

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Federal Reserve Bank of St. Louis

groups in in d u stry could be started.
The fu tu re of th e tru s t business rests
in doing business with more and more
people who have less and less.
Lewis F. Gordon, vice presid en t of
th e Citizens and S outhern N ational
B ank of A tlan ta and vice presid en t of
th e F. A. A., believes th a t the ad v er­
tisin g of A m erican firm s is the best
in th e w orld because it rep resen ts the
individual th o u g h t of each com pany.
He said he analyzed 901 ads show n
in recen t F. A. A. B ulletins and th a t
33 separate subjects w ere discussed,
an d his m ain criticism w as th a t th e re
w as a lack of cohesion in b ank ad ­
v ertising. B ank ad v ertisin g program s
should have a definite objective and
ad v ertisem en ts should have fam iliar­
ity in th e ir physical form.
He said th e house organ, w hich is
published for th e ir bank, is edited by
th e em ployes them selves.
Mr. G ordon told th e convention
about how he w rites th e copy for each

ban k ad v ertisem en t based on c u rre n t
events and appeals to th e h u m an
em otions, and as a re su lt of w hich,
m any of his ads are rep rin ted by in ­
d u strial firm s and sen t to th e ir ow n
em ployes. The adv ertisem en t w hich
has been re p rin te d m ore tim es th a n
any o ther is entitled, “Somebody’s
Boy”.
J. Lewell Lafferty, vice p resid en t of
the F o rt W o rth N ational B ank of
Texas and vice presid en t of th e F.A.A.,
believes th a t th e outlook for b an k
loans d uring th e post-w ar period is
m ost encouraging because m any new
types of business (airplane, chem icals,
plastics) and a re-establishm ent of
form er in d u stries (autom obiles, etc.)
will m ean m uch to th e A m erican
economic system .
Manufacturing improvements de­
veloped during the war will no doubt
result in economies being effected
(T u rn to page 66, please)

O F F IC E R S O F T H E F IN A N C IA L A D V E R T IS E R S A S S O C IA T IO N
L e f t to R ig h t— Preston E. Reed, e x e c u tiv e v ice p re s id e n t F .A .A ., C hicag o ; J. Lewell
Lafferty, v ice p re s id e n t F t. W o rth N a tio n a l B a n k , F t. W o rth , T exas, a n d second
v ice p re s id e n t F .A .A .; Lewis F. Gordon, v ice p re s id e n t C itiz en s a n d S o u th e rn
N a tio n a l B a n k , A tla n ta , a n d first v ice p re s id e n t F .A .A .; Lou E. Townsend, a s s is ta n t
v ice p re s id e n t B a n k o f A m e ric a, S a n F ra n c isc o , a n d p re s id e n t F .A .A . ; a n d Fred
W. Mathison, a s s is ta n t vice p re s id e n t N a tio n a l S e c u rity B a n k , C hicago, a n d
tr e a s u r e r F .A .A .

N orthw estern B anker

March 19^3

18

With Abundant Sub-soil Moisture,
and With Ample Supplies of Better
Seed Varieties—

North Dakota

Is Ready for 1943

Every Farmer in the State Will Produce All He Can With the
Help, Power, and Equipment Which Is Available
ORTH D akota produced $483,180,181.00 of new w ealth in 1942,
or $6,532.00 for each of th e 73,962 farm units, according to th e 18th
an n u al econom ic rev iew of th e G reater
N o rth D akota A ssociation.
Ideal te m p e ra tu re an d m o istu re con­
ditions m ade all crops produce prolifically in all sections of N o rth Da­
kota. N orm al g rain prices and g reatly
increased prices for livestock, dairy
and p o u ltry products, due to w ar de­
m ands, resu lted in th e m ost profitable
y ear in th e s ta te ’s history.
T his y e a r’s prod u ctio n of new
w ealth is 33 p er cent h ig h er th a n last
y e a r’s to tal farm incom e of $363,576,977.00. T he 1942 incom e approaches
th e half billion m ark, in th e s ta te ’s
second successive bu m p er crop.
N o rth D akota exceeded all o th er
states w ith 67,454,00 bushels of barley,
or one-sixth of th e n a tio n ’s to tal crop.
N o rth D akota produced 149,844,000
bushels of all w heat, m illions of w hich
are stored over th e sta te in p rairie
cities of new ly co n stru cted granaries,
enlarged g rain elevators, converted
storage bins, sto red am m u n itio n to w in
the w a r an d secure th e peace.
W heat and d urum , in spite of a re ­
duction of 834,000 acres in 1942,
yielded a t th e ra te of 20.5 bushels p er
acre, th e h ig h est sta te average ever
recorded, fo r a to tal of n e a rly 150 m il­
lion bushels.
N o rth D akota, grow ing m ore acres
of d u ru m th a n an y o th e r state, raised
85 p e r cent of th e U. S. supply for
1942, and th e crop yielded a t th e ra te
of 22 bush els p e r acre.
R esponding to th e w a r needs, th is
sta te doubled th e acreage of th e
norm al 10-year average of flax, p ro ­
ducing 9,184,000 bushels, in spite of
serious inro ad s of ru st.

N

Livestock income Gains
H eav y feed crops and excellent
ranges gave farm ers an o p p o rtu n ity to
fit livestock for heavy m ark etin g and
N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 19^3

to re ta in feed reserv es and am ple
breeding stock on farm s.
L ivestock prices today average 30
p e r cent above a y ear ago, and heavy
m ark etin g of all su rp lu s anim als, to­
g e th e r w ith an increased in v en to ry
value of $37,760,308.00 for anim als re ­
tain ed on farm s, b rin g th e value of
livestock and livestock products to a
to tal of $172,541,621.00.
A 50 p er cent increase in th e pro­
duction of hogs and uniform ly fine
increases in o th er livestock classes,
coupled w ith th e fact th a t N o rth Da­
kota led all states in th e percentage
of increase of chickens raised on farm s,
helped th e state in topping th e p er
capita sales of w a r bonds last N ovem ­
ber, in paying for farm s, and in m ak ­
ing an all-tim e record for liquidating
public and p riv ate debt.

$3,000,000 of Coal
T here w as an increase in production
of lignite coal of 122,106 tons over 1941,
or a to tal production of 2,469,364 tons,
says J. B. Crowe, S tate Mine Inspector.
P rice ceilings and th e sh o rtage of
labor cut dow n th e n u m b er of op erat­
ing m ines from 248 to 201, and 1,572
m in ers w ere em ployed d u rin g th e
period from Ju ly 1, 1941, to Ju n e 30,
1942. T he value of th e lignite m ined
w as given as $3,099,663.68. F ro m th e
figures given, GNDA estim ates th a t
som e 761,000 tons w ere m an u factu red
into b riq u ettes up to Ju n e 30, 1942,
w ith p roduction a t th e L ehigh B ri­
q u ettin g p lan t g reatly increased since
th a t date.

$6,532.00 Per Farm
G overnor Jo h n Moses states th a t
N o rth D akota fu rn ish ed 38,000 m en to
the arm ed services, an alm ost equal
n u m b er to th e n atio n ’s defense in ­
dustries, and, in spite of re su lta n t
labor shortages, m odern m echanized
m ass p roduction m ethods produced
$6,532.00 for each of th e 73,962 (1940
census) farm units.

F a rm labor shortage slow ed th e sale
of farm s, w hich to talled 9,000 in 1941.
Besides causing th e cancellation of
contracts an d leases, th e farm labor
shortage caused red u ctio n of farm
herds, and w a r prices helped increase
th e n u m b er of farm auction sales.
H ow ever, m an y farm s w ere sold to
actual o p erators by th e F ed eral L and
Bank, counties and th e S tate of N o rth
Dakota, in su ran ce com panies, an d
o ther agencies, and “paym ents on
these farm s reached an all tim e h ig h ,”
says B. E. Groom, GNDA secretary.
“D ebt p aym ent and th e elim ination of
all speculation w as the dom inant idea
of all farm o p erators.”

Many Farm Sales
The Board of U n iversity and School
L ands received an average of $15.00
p er acre on 400 farm s sold early in th e
year, stopped all sales on M arch 1,
u n til th is fall. W ith less th a n a half
dozen foreclosures in 1942, m ore th a n
80 buyers paid co n tracts in full and
“collections th e p ast m o n th have been
b e tte r th a n a t any tim e in the p ast
20 years,” says Com m issioner E. E.
Sw anston.
W ith 2,000 land sales m ade in 1941
th e F ed eral L and B ank of St. P aul
sold 1619 farm s th e p ast year, accord­
ing to F. W. Peck, president, w ho re ­
po rts collections have been excellent
both years.
Some 30 in surance com panies ow ned
approxim ately 2700 farm s in th e state
at th e s ta rt of th e year. T here are in ­
dications th a t p ractically all of th e
sm aller holdings w ere sold, as w ell as
o th er u n its th a t m ight be affected by
the s ta te ’s anti-corporation farm ing
law, have disposed of th e ir farm lands.
“A su rv ey m ade in Ju n e show s th a t
a m ajo rity of th e counties of th e state
have disposed of p ractically all de­
sirable farm pro p erties,” says Secre­
ta ry B. E. Groom. “L and and ta x pay(T u rn to page 38, please )

19

E quipped
F o r All
BANKING
N eeds

M ember
Federal
Deposit
Insurance

C orporation

N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 19^3

20

W hat Banks Can Do to COHSCiVC
Supplies and Equipment
This Is the Time to Devise New Conservation Methods— Not Only for
the Duration of the W ar, but to Make It an Every-Day Policy
N ORDER to conserve b an k eq u ip ­
m en t and supplies it is im p erativ e
th a t w e m ake it a w atchw ord to
save and conserve as we have nev er
done before.
I t has long been th e policy of our
banks to serve, and to serve well,
those th o u san d s of custom ers w ho de­
pend on us for p ractically ev ery th in g
relatin g to business and finance.
W ith th e ad v en t of th e w ar, th is de­
pendence has increased a hundred-fold,
especially in th e larg er b anks of th is
nation. W e have been called upon to
issue w a r bonds, to handle th e added
thou san d s of checks issued to our
soldiers and sailors, along w ith th e
checks by th e AAA to our farm ers,
pension checks, etc. All these item s
are handled sw iftly and efficiently be­
cause of th e m odern and up-to-date
equipm ent em ployed by our banks. I
don’t believe th a t an y of us have ever
stopped to th in k of th e trem endous
resp o n sib ility and fa ith w hich we
place in our equipm ent, especially in
our p osting and adding m achines. As
a m a tte r of fact, such m achines as
adding m achines, p osting m achines,
and o u r change m achines m ight
rig h tfu lly be called precision m a­
chinery. If o u r m achines w ere not
precision built, th e y w ould not
have a place in th e m odern bank,
for we cannot only hope th a t our to ­
tals and balances are correct; th ey
m u st be correct. Since th is is tru e,
w hy do so m an y b an k s m istre a t and
abuse th e ir eq uipm ent th e w ay th ey
do? I w ould v e n tu re to say th a t th e re
are h u n d red s of m achines in our b anks
th a t do not receive so m uch as a p leas­
a n t look for m onths, yes, m aybe y ears
on end unless th e y fail to function
properly. T hey are n ev er given even
a drop of oil, to say n o th in g about a
thoro u g h cleaning once in a while.
W ould it not be well to stop rig h t here
and th in k w h at w ould hap p en to our
banks w ere we suddenly deprived of
our autom atic m achines and o th er
equipm ent?
W ith th e freezing of posting-m a­
chines, ty p e w rite rs and adding m a­
chines, can we continue to give th e
N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 19 k3

and w ell oiled. Keep th em cov­
ered w hen n ot in use.
A ssista nt C a sh ier
2. W henever possible, p u t your post­
ing- m achines, adding m achines
The N a ti o n a l Bank o f W a t e r l o o
W a terlo o , Iow a
and ty p ew riters u n d er co n tract
w ith a reliable firm or a com pe­
te n t individual, for inspection at
reg u lar intervals.
sam e service to our custom ers to
3. R equire em ployes to re p o rt im ­
w hich th ey are accustom ed? Possibly
m ediately to th e pro p er auth o rity ,
th is question can b e tte r be answ ered
should th e p articu lar equipm ent
a y ear or tw o from now; we w ill th en
w hich he is using fail to function
be in a b e tte r position to know how
norm ally.
w ell we took care of our equipm ent.
4. A cquaint all em ployes w ith th e
I believe we can continue to give
problem at hand, such as th e cost
th e p roper service only if w e give our
of th e equipm ent w hich th e y are
equip m ent th e pro p er treatm en t. If
using, and th a t it cannot be re ­
we ad here to th e follow ing rules, our
placed. I am su re th e y w ill co­
eq uipm ent w ill go a long w ays tow ard
operate to our en tire satisfaction.
lasting for th e d u ratio n of th e w ar:
The m a tte r of b an k supplies has not
1. Keep all m achines free from dust tu rn e d out to be th e problem w hich w e
at first anticipated. N ot m any banks,
if any, have suffered m aterially from
Four Rules fo r Making
th e lack of supplies, w ith th e possible
exception of those supplies w hich con­
tain steel or rubber. W e all know th a t
Equipment Last Longer
it is im possible to purch ase steel
equipm ent such as filing cabinets, of­
1. K e e p all m achines free
fice desks, etc.; how ever, it w as n ot
from du st and w ell oiled. K e e p
so long ago th a t m a n u factu rers of
them covered when not in use.
steel equipm ent p ainted th e ir p ro d ­
ucts to resem ble wood, and now th e
2. W henever possible, p u t
m an u factu rers of w ooden equipm ent
are p ain tin g th e ir products to resem ble
your posting m achines, adding
steel, and th ey are doing a p re tty good
m achines, and typ ew riters un­
job of it. In fact, one alm ost has to feel
der contract w ith a reliable firm
of these new w ooden products to be
satisfied th a t th ey are not steel. So, if
or com peten t in dividu al for in ­
we really need new filing cases and
spection at regular intervals.
office equipm ent, we need not fare so
badly.
3. R equ ire em ployes to re ­
Pins, staples, p ap er clips and steel
p o rt im m ediately to the p ro p er
pens are practically indispensable to
th e m odern bank. All of these item s
au thority, should the e q u ip ­
are, how ever, becom ing m ore and
m ent he is using fa il to fu n c­
m ore difficult to purchase. T here is
tion norm ally.
b ut one w ay to conserve on pins, p a­
p er clips and staples, and th a t is to
4. A cqu ain t a l l em ployes
use them sparingly. W e can m ake
our pens last longer by cleaning them
w ith the problem at hand, such
daily and by using an ink th a t is less
as the cost of the equ ipm en t
corrosive.
th ey are using, and that it can­
R ubber bands are no longer on th e
(T u rn to page 29, please)
not be replaced.

By H . E. H o ffer

Can a

Bequest in

a W ill

Cover Payment for Past Services?

A

R E T IR E D Iow a b a n k e r died
leaving a w ill in w hich he be­
q u eath ed $1,000 to a friend. I t is
happ en ed th a t th e frien d h ad done
considerable w o rk for th e b a n k e r in
his last days w ith th e u n d e rsta n d in g
he w as to be paid th erefo r. T he w ill
did n o t provide th a t th e beq u est w as
in lieu of p ay m en t for services. Can
th e frien d recover from th e estate for
his services and also be en titled to th e
bequest?
Yes. Generally, a legatee who has
performed services for a decedent may
receive paym ent for such services un­
less the w ill indicates the bequest is
intended in paym ent therefor. In
some cases a bequest may he presumed
to he in paym ent for services, but they
are not in point here.
D uring h e r la st illness, G eraldine
E v ere tt, ho ld er of a life in su ran ce
m em bership in a fra te rn a l beneficiary
association, told a frien d th a t on h e r
recovery she w ished to arra n g e for a
change of beneficiary. T he change w as
n ev er m ade up to th e tim e of h e r
death in Iowa, w h ere she h ad resided
all of h e r life. T he by-laws an d m em ­
bersh ip co n tract prescrib ed th a t a
change of beneficiary could be m ade
only on com pliance w ith a certain
outlined procedure. In asm u ch as th e
proced u re w as n o t followed, w as th e
beneficiary changed?
No. The procedure prescribed by
the contract to effectuate a change of
beneficiary was not complied w ith and
the beneficiary therefore remained un­
changed. There are a few exception­
al cases where strict compliance with
contract provisions in these matters
w ill not be required hut they are not
in point here.
Pollard, a M innesota b an k er, em ­
ployed a law y er in th a t sta te to p ro se­
cute a claim for dam ages th ere. The
atto rn e y filed su it thereon. W hile th e
su it w as pending P o llard settled it
w ith o u t co nsulting his atto rn ey . Could
he do this?
Yes. Minnesota recognizes the rule
that a party may settle a controversy
w ithout advising his attorney of it.

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These and Other Timely Legal
Questions A re Answered
By the

LEGAL DEPARTMENT

The reason for the rule is found in the
policy that there should be an end to
litigation and that compromises and
settlem ents should be encouraged.
A M innesota b an k ren ted to v arious
te n a n ts certain room s on th e second
floor of th e building ow ned an d occu­
pied by it. An em ployee of one of the
te n a n ts w as in ju re d w hen she w as
stru c k by sh a tte re d glass of th e v esti­
bule door w hich w as slam m ed sh u t by
a sudden g u st of w ind accom panying
an ap proaching storm . Should th e
b an k be held liable for dam ages if it
could be show n th a t th e prem ises w ere
n o t m ain tain ed in a reasonably safe
condition?
Yes. A landlord nm st maintain
premises under his supervision so that
they w ill he reasonably safe for use
by tenants and those who come upon
the premises by reason of the tenants’
occupation. W hen he fails in his duty
to protect others against the operation
of natural forces, he w ill not be re­
lieved from liability by the fact that
such forces operated with unusual and
sudden violence.
The W isconsin Suprem e C ourt re ­
cen tly h ad before it th e question of
w h e th er a gift ta x law could be m ade
applicable to a com pleted gift m ade
p rio r to its enactm ent. I t w ill be
recalled th a t it has been held in th a t
sta te th a t an incom e tax applicable to
p ast earned incom e is valid. How
w ould you say th e C ourt ru led on th e
gift ta x m atter?
The Court held that a gift tax laAV
cannot constitutionally he made appli­
cable to a completed gift made prior to
its enactment. In so holding it was in­
dicated that the constitutionality fea­

ture was the reason for making a dis­
tinction between gift and income taxes
in these situations.
Is it possible, in Iowa, for tw o adjoin­
ing landow ners by occupancy to cause
to be established betw een th e ir prop­
erties a legally binding bou n d ary line
w hich does n ot coincide w ith th e tru e
boundary?
Yes. Occupancy to a boundary line
recognized by an express or implied
agreement of the adjoining owners
may ripen into title, even though it
does not coincide with the true bound­
ary.
An Iow a b an k er w as a m em ber of
th e county board of supervisors of th e
county in w hich he resided. A n ab ­
stra c t and title com pany located a t th e
county seat approached th e board w ith
a proposition to lease th e b asem ent of
th e courthouse for use as office space.
T he legislature had n ot g ran ted pow er
to lease to th e board. Could th e board
m ake a valid lease?
No. The county hoard of supervisors
of an IowTa county has no power to
rent a portion of the county court­
house, in the absence of a legislative
grant of such power. The Iowa Su­
preme Court so held in a recent mat­
ter involving this question.
W ilson ow ned a tra c t of land in N e­
b rask a th a t w as su b ject to a $5,000
m ortgage. He defaulted on th e m o rt­
gage and w en t into b an k ruptcy. W as
it possible for th e m ortgage holder to
foreclose in th e state courts?
Yes. In a similar situation recently,
the Nebraska Supreme Court pointed
out that the bankruptcy court may
authorize a mortgagee to foreclose in
a state court a mortgage on real estate
of a bankrupt mortgagor.
V an Slyke leased a farm in N orth
D akota to Pedles. A th ird person over
whom th e landlord had no control p re ­
ven ted Pedles from farm in g th e land.
T he landlord had n o t g u aran teed
Pedles quiet and peaceable possession
of the land ag ain st all persons. Could
(T u rn to page 69, please)

22

NATIONAL SURETY
CORPORATION
V I N C E N T C U L L E N , P r e s id e n t
•
F IN A N C IA L

S T A T E M E N T

D e c e m b e r 3 1 s t, 1 9 4 2

ASSETS
Cash in B a n k s ..........................................................................................
Investments:
Bonds o f U.S. G overnm ent and its Agencies
$7,798,855.00
O ther B o n d s .................................................
2,484,124.85
Preferred S t o c k s .........................................
4,516,650.00
Com m on S t o c k s .........................................
8,130,091.15
Premiums in Course o f Collection,
N o t over 90 Days D u e ..................................................................
Capital stock o f N ational Surety Marine Insurance Corporation,
a wholly owned s u b s i d i a r y .........................................................
Accrued Interest and R e n t s ..................................................................
Reinsurance and O ther Accounts R e c e iv a b l e .................................
H om e Office B u i l d i n g ...........................................................................

$ 2,353,929.15

22,929,721 00
1,152,201.58
1,747,400.50
45,300.71
51,791.25
500,000.00

T O T A L A D M IT T E D A S S E T S ........................................ $28,780,344.19
LIA B ILITIE S
Reserve for Losses and Loss Adjustm ent Expenses . . . .
Reserve for Unearned P r e m i u m s ..................................................
Reserve for Commissions, Expenses and Taxes
. . . .
* Contingency R e s e r v e ..........................................................................
C a p i t a l .................................................................. $ 2,500,000.00
S u r p l u s ..................................................................
12,530,005.06
Total Capital and S u r p l u s ..........................................................
TOTAL

$ 4,513,512 56
6,402,923.37
2,302,135.10
531,768.10

15,030,005.06

................................................................................... $28,780,344.19

* I n c l u d e s $ 3 1 ,7 6 8 .1 0 r e p r e s e n t i n g d i f f e r e n c e b e t w e e n t o t a l v a l u e s c a r r i e d i n a s s e ts f o r a ll
b o n d s a n d s t o c k s o w n e d , a n d t o t a l v a lu e s b a s e d o n D e c e m b e r 3 1 , 1 9 4 2 m a r k e t r a t e s fu r n is h e d b y N a tio n a l A s s o c ia tio n o f In s u ra n c e C o m m is s io n e rs .
B o n d s c a r r i e d a t $ 1 ,0 9 3 , 8 2 1 . 1 8 a r e d e p o s i t e d f o r p u r p o s e s r e q u i r e d b y la w a n d b o n d s c a r r ie d
a t $ 3 0 ,6 4 0 .5 0 a r e d e p o s i t e d a s c o l l a t e r a l o n s u r e ty b o n d s r e q u i r e d i n c o u r t p r o c e e d i n g s .

N orthw estern B anker


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

March 1943

How to Prevent RutCt! fítBS
In the W a r Emergency
Reducing the Loss of Life and Loss of Property This Year by One Half
Will Save 1,700 Lives and $1,000,000 Worth of
Property in Rural Areas
AR is as inexorable as an x-ray
in search in g out th e stro n g and
w eak spots in th e sinew s and
fiber of a nation. A nd in th e w a r we
are now fighting, a w eak spot is a d an ­
ger spot, be it on th e b attle fro n t or on
th e hom e fro n t. H ere on th e hom e
fro n t we have now, ju s t as w e did in
th e days before th e w ar, th e b lig h t of
ru ra l fires — fires th a t d estro y 3,500
lives ev ery y e a r an d consum e over
$200,000,000 w o rth of p ro p e rty on our
farm s and th ro u g h o u t o u r ru ra l areas.
E v e ry 15 m inutes, day a fte r day, w eek
afte r w eek, m o n th a fte r m onth, a farm
building is b u rn e d som ew here in th e
U nited States. T he lives th a t are lost
cann o t be replaced. A nd to d ay th e
rep lacem en t of b uildings th a t are
burned, stock th a t is lost, and equ ip ­
m en t th a t is d estroyed is becom ing in ­
creasingly difficult.
Before th e w a r it w as difficult to get
people excited enough abo u t o u r u n ­
th in k in g scorched-earth carelessnes to
u n d e rta k e an all-out fire p rev en tio n
and control program . Yes, I know , a
good deal of h a rd w o rk w as done by
associations such as th e N ational F ire
P ro tectio n A ssociation and by o th er
professional w o rk ers in th e field. B ut
I am su re th a t all of you w ill agree
w ith m e th a t it h as been an uphill
fight. O vercom ing h u m a n a p a th y and
carelessness u n d e r o rd in a ry conditions
is a stru g g le th a t a t tim es m akes even
th e m ost d eterm in ed lose h eart.
R ecognizing th e seriousness of th e
fire situ atio n in ru ra l areas an d realiz­
ing th a t u n d e r w artim e conditions th e
h azard s from fire are g re a tly increased,
S ecretary of A g ricu ltu re W ick ard last

W

By Reuben Brigham
A s s i s t a n t D i r e c t o r E x te n sio n W o r k
U. 5. D e p a r t m e n t o f A g r i c u l t u r e
W a sh in g to n , D. C.

REUBEN

B R IG H A M

y e a r req u ested th e E x ten sio n Service
to assum e leadership in th e E m e r­
gency R u ral F ire C ontrol P rogram .
T his program encom passes th a t v ast
te rrito ry needing a fire prev en tio n and
control p rogram th a t lies betw een th e
w o rk of th e Office of C ivilian Defense
in cities and tow ns of over 2,000 popu­
lation and th e w ork of th e U nited

States F o re st Service and o th er agen­
cies in forested areas.
Today, u n d er th e leadership of State
E x ten sio n Services and cooperating
agencies, th e re are over 100,000 train ed
ru ra l fire fighters organized into 10,000
fire-fighting com panies on g u ard to
pro tect ru ra l A m erica from d estructive
fires. T he w ork of organizations is
continuing vigorously.
Going along h an d in h an d w ith the
w ork of organizing ru ra l fire-fighting
com panies is an educational program
reaching practically all of th e n atio n ’s
6,000,000 farm fam ilies and m any ru ra l
non-farm fam ilies. Since th e inception
of th e E m ergency R u ral F ire Control
P ro g ram m illions of ru ra l fam ilies
have used th e fire-hazard check sheets
prep ared by th e Cooperative E x ten sio n
Service and d istrib u ted by n e ig h b o r­
hood leaders.
T hrough th e use of th ese check
sheets farm fam ilies th ro u g h o u t th e
land v o lu n tarily scored fire hazards on
th e ir farm s and also checked fire­
fighting equipm ent th ey had available.
Of course, ju s t checking YES or NO
on th e fire-hazard check list is only a
p a rt of th e b attle ag ain st ru ra l fires.
W hat all of you w ill n a tu ra lly w an t to
know is, “W h at does th e farm er do
w hen he finds o ut th a t hazardous fire
conditions exist?” Down in G reene
county,
Indiana, a neighborhood
leader recen tly rep o rted to his county
ag en t th a t he knew th e p rogram is
gettin g results, because since he gave
his neighbor a check list his neighbor
had ordered m aterials to fix his flues.
T here isn ’t an y th in g especially spec­
ta c u la r about a neighborhood leader

S carborough ^ C ompany
C v a tth e i& ih ,
First N ational Bank Building, Chicago


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

H orace A. Smith, Iow a Representative
Des Moines, Iow a

Northwestern Banker

March 19b3

24
giving his n eighbor a fire-hazard check
sheet, and follow ing th a t th e ordering
of th e m aterials to elim inate th e h az­
ard. In an y case it w o n ’t m ake a
headline story. Of course, if th e neig h ­
bor had decided th a t fire hazard s w ere
ju s t a p a rt of life and h a d n ’t b o th ered
to fix th e flues, and th e house had
b u rn ed down, it w ould have m ade a
story. E v en th en , it w ould n o t have
been exactly a headline sto ry unless,
along w ith th e house, lives w ere lost.
R u ral fire-fighting com panies have
been organized th ro u g h o u t th e nation.
All th e m em bers of th ese com panies
have received or are receiving o rg an ­
ized tra in in g in fire p rev en tio n and

fire control. T h a t th ese fire-fighting
com panies know how to do th e job is
evidenced by exam ples w e have re ­
ceived in W ashington from m any
states.
E q u ip m en t an d tools used by fire­
fighting com panies range from spray
rigs to shovels and rakes. T racto rs and
plow s are used in m aking fire lanes in
case of g rain fires or fire th re a te n in g
farm steads or w oodlands. A nd th e
m en w ho m ake up these com panies
know how to use w a te r from dom estic
system s efficiently in com bating fires.
Before going too fa r afield on de­
tails of th e ru ra l fire-control program
I ’d like to go into th e responsibilities

2 2 Years
of S u ccessfu l O peration
R e a d th e se fig u re s . . . th e y te ll th e s to r y !

Net Losses Paid Since Organization . . $2,538,705.17
Net Surplus, Dec. 31, 1942 ................

432,581.62

XjTEAR AFTER YEAR, Square Deal con­
tinues its record of outstanding growth
and leadership as the Largest Exclusive Hail
Insurance Company operating in Iowa and
Missouri. Square Deal provides insurance at
cost . . . pays losses within ten days after
adjustments are approved. We have a few
exclusive agency openings in Iowa and Mis­
souri. Write us.

SQUARE DEAL
Insurance C om pany
C. FRED MORGAN, President

N orthw estern Banker

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

March 19&3

Valley Bank Bldg., Des Moines, Iowa

assigned to th e F ed eral E x ten sio n
Service by th e S ecretary of A g ricu ltu re
in his m em orandum to D irector M. L.
W ilson. In th a t m em orandum th e sec­
re ta ry req u ested th a t th e E x ten sio n
Service assum e leadership in organiz­
ing ru ra l A m erica ag ain st destru ctiv e
fires. Im m ediately afte r th e se c re ta ry ’s
request, th e E x ten sio n Service devel­
oped and conducted a nation-w ide edu­
cational cam paign to help ru ra l people
in identifying and elim inating fire haz­
ards and in organizing v o lu n teer com­
panies and m aking use of available fa­
cilities for fire control. To develop
th is p rogram an E m ergency R u ral F ire
C ontrol P rogram , adap table to state
use, w as outlined w ith th e follow ing
fo u r objectives:
1. To elim inate all fire h azards on
th e farm , in farm buildings, and in
ru ra l areas generally.
2. To educate all ru ra l people in
ru ra l fire p rev en tio n for th e protection
of life and property.
3. To p rep are for use and m ain tain
all fire-fighting facilities an d equip­
m ent, b oth on a com m unity and an in ­
dividual farm basis.
4. To organize and develop ru ra l
fire-fighting u n its for each com m unity.
All S tate E x ten sio n Services have
now been aided by th e F ed eral E x te n ­
sion Service in launching th is w artim e
program . E ducational m aterials of
m an y types have been p rep ared and
sen t to state extension w o rk ers to give
th em fu rth e r aid, b u t th e big job is
rig h t out th e re in th e states, counties,
com m unities and neighborhoods.
Close contact an d coordination of
effort is m ain tain ed w ith th e fire-pre­
vention p rogram s of th e Office of Ci­
vilian D efense and th e U nited States
F o re st Service, and m aterials p rep ared
by th ese agencies hav e been dis­
trib u te d for th em th ro u g h S tate and
county extension offices. A n exam ple
of th is is th e help extension w o rk ers
are giving OCD and cooperating ag ­
encies in organization of th e F o rest
F ire F ig h te rs’ Service.
In all th is trem endous job of o rgan­
izing ru ra l A m erica ag ain st fire, I
w a n t to acknow ledge for th e E x ­
ten sio n Service th e help from natio n al
organizations an d associations p ro ­
m oting fire prev en tio n an d safety.
M any of th e 1,500,000 4-H Club boys
and girls are active in th e w o rk of
p rev en tin g and controlling th e d estru c­
tio n of v ital resources by fire in ru ra l
A m erica. P a rtic u la rly significant are
th e fire-prevention projects being car­
ried o ut by 4-H Clubs in Oregon, Cali­
fornia, K ansas, C onnecticut an d N ew
H am pshire. B ut in all states 4-H boys
and girls are p u ttin g th e ir shoulder to
th e w heel an d c o n trib u tin g th e ir
y o u th fu l energy an d drive to th is pro-

25
gram as w ell as m an y o th er w artim e
program s. 4-H Clubs in C alifornia an d
C onnecticut have organized fire p a­
trols. O ther clubs have raised m oney
for fire-fighting equipm ent, an d some
have re b u ilt tru c k s for fire-fighting
com panies.
F ire p rev en tio n and safety p rogram s
go along h an d in hand; th e y do not
operate in sep arate com partm ents. The
perso n w ho has unsafe w o rk hab its
is likely to be careless w ith reg ard to
fire as well. E ssentially , success of th e
ru ra l fire-control p ro g ram hinges to a
g rea t degree upon developing a ttitu d e s
of m ind in th e ru ra l p opulation th a t
w ill keep everyone co n stan tly on th e
alert. A round 80 p er cent of fires on
farm s and in ru ra l com m unities are
th e re su lt of h u m an carelessness or
failu re to tak e sim ple p re cau tio n ary
m easures.
In looking ahead in 1943, w e need
to set som e definite goals to be reached,
ju s t as cities are doing in traffic acci­
d en t cam paigns: (1) L et us reduce th e
loss of life from ru ra l fires by onehalf th is year. A tta in m e n t of th a t goal
w ould p robably m ean th e saving of
som e 1,700 lives. (2) L et us reduce
th e loss of p ro p erty by one-half. If
w e do th is w e w ill save for th e n atio n
$100,000,000 w o rth of buildings, equip­
m ent, food an d o th e r m aterials. To
do th ese tw o th in g s w ill re q u ire a de­
term in e d effort—it m eans a real m ansize job for each an d all of us.
Our goal for 1943 th e n is—th e sav­
ing of 1,700 lives an d 100 m illion dol­
la rs ’ w o rth of p ro p e rty on th e farm s
and in ru ra l A m erica.

Social Security Program
A b ro ad er social secu rity p ro g ram —
p erh ap s an A m ericanized v ersio n of
th e B everidge p lan —need n o t in ju re
o u r n atio n al econom y an d business
need n o t fe a r its effects, if o u r p lan n ers
face econom ic realities as practically
as does th e B everidge re p o rt itself,
declared O. J. A rnold, p re sid e n t of
N o rth w e ste rn N atio n al Life In s u r­
ance com pany, in re p o rtin g h ere to ­
day on h is com pany’s w ar-tim e
progress.
B u t u n less it is realized th a t A m er­
icans m u st hav e th e in centive to p ro ­
duce th e w ealth necessary to su p p o rt
such a program ; u n less th e re is am ple
enco u rag em en t of m en w ho are w ill­
ing to tak e th e risk s of creatin g new
w ealth, a social se c u rity p ro g ram can
only be a trag ic d isap p o in tm en t to th e
people, he stated.
Mr. A rnold p raised th e B everidge
re p o rt as “a thorough-going, realistic
stu d y of th e w hole p ro g ram of social
in su ra n c e from th e B ritish sta n d ­
p o in t.” H e p o in ted o u t th a t it deals
w ith several p ractical econom ic re a l­

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Federal Reserve Bank of St. Louis

ities w hich m u st be faced in settin g
up an y broad social secu rity program :
I t em phasizes th a t benefits m u st be
set so as to leave w ith th e individual
citizen a stro n g urge to rise above
th e level of benefits provided; it em ­
phasizes the need for “full em ploy­
m e n t” to p rev en t a social insurance
pro g ram from becom ing too g reat a
b u rd en on th e productive econom y of
th e nation.
He cited these as exam ples of a
realism w hich has not alw ays been ap ­
p a re n t in our th in k in g in th is country.
“H ere,” he said, “we have tended to
ta lk too m uch about benefits and not
enough about th e m eans of provid­

ing them . Our n ational econom y can
su p p o rt a basic stan d ard of social w ell­
being provided we also have freedom
of production, and encouragem ent for
m en w ho are w illing to tak e th e risk s
of creating new w ealth .”
A nnouncing th a t his com pany’s in ­
surance in force has now passed th e
half-billion-dollar m ark, Mr. A rnold
took occasion to reassu re those w ho
feel th a t a social security p rogram nec­
essarily com petes w ith and m enaces
p riv ate in su ran ce com panies and o ther
business institutions.
“I am h eartily in favor of a ju s t and
soundly planned social secu rity p ro ­
gram , and am n ot a t all afraid of ill

Financial Statement of

IO W A’S LARGEST
CASUALTY IN SU R A N C E A N R
BO N D IN G C O M PA N Y
O F F I C E R S
J. W . GUNN

President-Treasurer
JO H N F. H Y N E S

Vice Pres.-Secretary
D I R E C T O R S
D R. D. E.
BAUGHM AN

Pres., Port Dodge
Serum Co.
Fort Dodge, Iowa
A N SELM

FRAN KEL

Pres., Frankel
Clothing Co.
Des Moines

H . L . H JE R M S T A D

Pres., Citizens Fund
Fire Insurance Co.
Red Wing, Minn.
DR. L . E.

KELLEY

Physician & Surgeon
Des Moines
FRA N K KOHRS

Pres., Kohrs Packing
Company
Davenport, Iowa
O . B . M C K IN N E Y

General Agent
Denver, Colorado

GEO . E. PA TTERSO N

Spec. Representative
Des Moines
W . Z. PRO CTO R

Attorney-at-Raw
Des Moines
H. W . R E A D

Secy., Iowa Valve Co.
Oskaloosa, Iowa
R . W . W E IT Z

Contractor
Des Moines

M. J . W IL K IN S O N

Supt. of Agents
Des Moines
R. L . WOOD

Treas., Wood Brothers
Thresher Company
Des Moines

Statement as of December 31, 1942
ASSETS
U. S. Government Bonds—Market Value $2,338,905.00
Other State and Municipal Bonds—
Market V a l u e ------------------------ - — 989,832.50
N o bonds ever ow ned by th e com pany have
been in d e fa u lt as to in te re s t o r p rin c ip a l.

Cash in Banks — ------------------------- 1,297,568.85
Stocks—Market V a l u e --------------------43,470.00
Real Estate M o rtg a g es--------------------- 330,661.19
Interest A ccru ed --------------------- — —
17,685.16
Premiums in Course of Collection—
Not Past D u e ------------------------------ 654,454.05
C u rre n t balances due fro m a g en ts a nd
policyholders.

Real Estate (Home Office B l d g . ) ------------------------ 129,570.69
TOTAL ADMITTED ASSETS

—$5,802,147.44

RESERVES
Reserves for C laim s--------------------------$2,365,882.31
F u n d s s e t aside to fu lly p a y all in c u rre d and
expected losses.

Reserve for Unearned P rem iu m s------- 1,507,217.73
F u n d s set aside to r e tu rn to every policyholder
th e u n e arn ed prem iu m in e v en t of c ancellation
of his policy.

Reserve for Taxes------------— -------------

150,000.00

All Other R e s e r v e s ------- — -------------

293,795.26

T axes, C om m issions, R ein su ran ce, etc.

TOTAL LIABILITIES — ------------$4,316,895.30
Reserve for C ontingencies---------------200,000.00
SU R PL U S--------------------------------------- 1,285,252.14
$5,802,147.44

EMPLOYERS MUTUAL
CASUALTY C O M PA N Y
Des Moines
F id e lit y and S u r e ty B ond s—A u to m o b ile , P la te G la s s ,

B u r g la r y , P u b lic L ia b il i t y , W o rk m e n ’s C o m p e n sa tio n

N orthw estern Banker

In s u ra n c e

March 1943

26
strictions. O thers should have been
avoidable, and re su lt from p ast b lu n d ­
erin g and from u n n ecessary h an d i­
caps on A m erican production. H ow ­
ever th ey all help to drive hom e the
basic fact th a t production, not m oney,
is th e real w ealth of th e country.
No
sound
social
secu rity
plan
w ill overlook th e first and forem ost
job, w hich is to encourage th e creation
of an ever-greater supply of w ealth
for th e n atio n .”

effects on th e life in su ran ce business
from th e ‘floor’ of econom ic well-being
created by such a p ro g ram ,” Mr. A r­
nold declared. “The free A m erican
w ill n ev er be co n ten t to spend his life
on an y kind of a ‘floor’. He w ill alw ays
w a n t to raise h im self and his fam ily
above th a t level. T herefo re he w ill
continue to buy life in su ran ce.”
W artim e scarcities are now dem on­
stra tin g th a t econom ic secu rity does
n o t consist of pensions or of m oney
itself, b u t of actu al goods and services
•—th e real com forts of life, he said.
“W e are now m eeting scarcities and
w ill experience still m ore, even tho u g h
we have m oney to b u y ,” Mr. A rnold
pointed out. “Some of these scarcities
are unavoidable, re su ltin g from w a r
and its necessary dislocations and re ­

Square Deal Insurance C o .
D espite heavy hail losses d uring
1942, th e Square Deal In su ran ce com ­
pany, w hose hom e office is Des Moines,
m ade an ou tstan d in g record of the
year, the rep o rt of th e com pany m ade

G e n e r a l A m e r ic a n L if e
I n s u r a n c e Co m p a n y
WALTER W. H EA D, President
St. Louis, M issouri

F in a n c ia l S t a t e m e n t • D e c e m b e r 31, 1942
CASH O N H A N D A N D IN B A N K S ..................................... $ 8,159,170.84
B O N D S—
^ j U. S, G o v ern m en t....................................................................... 21,842,808.93
w \ O ther B o n d s.................................................................................. 9,176,261.72
CASH A N D B O N D S ................................................................................................. $ 39,178,241.49
F IR S T M O R T G A G E LOANS ON R E A L E S T A T E .................................... 44,080,794.10
H O M E O F F IC E B U IL D IN G .................................................................................
920,000.00
O T H E R R E A L E S T A T E .........................................................................................
13,198,565.41
R E A L E S T A T E SALES C O N T R A C T S .............................................................
572,186,98
S T O C K S ...........................................................................................................................
2,295,131.00
O T H E R A D M IT T E D A SSETS (Principally am ounts payable to th e Com ­
pany— not y e t d u e )...............................................................................................
385,236.33
IN T E R E S T A N D R E N T S O N IN V E S T M E N T S A C C R U E D B U T N O T
Y E T D U E ...............................................................................................................
762,384.46
IN T E R E S T A N D R E N T S D U E O N IN V E S T M E N T S (N one of which is
p a st due more th a n 90 d a y s).............................................................................
256,796.33
N E T P R E M IU M S IN C O U R SE O F C O L L E C T IO N ..................................
1,939,322.88
© B A L A N C E O F IN IT IA L PO L IC Y L IE N S ..................................................
7,009,931.00
LOANS TO P O L IC Y H O L D E R S ............................................................................ 23,694,383.78
© T O T A L A S S E T S ........................................................................................................8134,292,973.76

LI ABI LI TI ES
© PO L IC Y R E S E R V E S ...............................................................................................$122,808,381.43
P R E M IU M S A N D IN T E R E S T PA ID IN A D V A N C E ..............................
802,536.60
R E S E R V E FO R T A X E S ..........................................................................................
674,605.92
ESCR O W F U N D S (D eposited b y m ortgagors for p ay m ent of taxes and
expenses)...................................................................................................................
305,017.00
R E SE R V E FO R A C CO U N TS U N P A ID (N o t y e t d u e )..............................
399,279.34
P O L IC Y H O L D E R S ’ D IV ID E N D S .......................................................................
1,414,302.12
T O T A L ...............................................................................................................................$126,404,122.41
P O R T IO N O F C U R R E N T Y E A R ’S E A R N IN G S A V A ILA B LE FO R
F U T U R E D IV ID E N D D E C L A R A T IO N TO P A R T IC IP A T IN G
P O L IC Y H O L D E R S .............................................................................................
716,580.00
C O N T IN G E N C Y R E S E R V E ..................................................................................
4,923,802.04
U nder Purchase A greem ent.................................................... $4,002,686.31
F o r G roup In su ra n c e ................................................................
671,115.73
O th e r..............................................................................................
250,000.00
C A PIT A L ST O C K A N D G U A R A N T Y F U N D ..............................................
500,000.00
S U R P L U S ........................................................................................................................
1,748,469.31
© T O T A L L IA B IL IT IE S ........................................................................................... $134,292,973.76
© Actual Market Value o f Bonds is more than $1,410,000 in excess of the amounts shown above.
©Does not include liens totaling $937,181 which have been discharged by payments in cash or credits
by policyholders, nor $162,553.66 liens on dividends on deposit, both o f which items will share in
future lien reductions.
©Includes assets in “Old Company Account” established under Purchase Agreement dated September
7, 1933, on file with the Superintendent o f the Insurance Department o f the State o f Missouri, (copy
o f which agreement may be obtained from him or the Company), against which the Superintendent
reserved a lien to protect certain liabilities therein described and fully included among the liabilities
in this statement. Status of Old Company Account on file with the Superintendent and with the Company.
©Full net legal reserves on policies issued by General American Life are secured by deposit o f approved
securities with the Superintendent o f the Insurance Department o f the State o f Missouri. The capital
stock, guaranty fund, and surplus are additional protection to all policyholders.

*

*

*

MULTIPLE LINES: Participating • N on-P articipating • Salary Savings • Juvenile
Sub-Standard • Annuities • Commercial A ccident and Health and Hospitalization
Group Life • W holesale Insurance • Group A ccident and Sickness • Group A cci­
dental Death and D ism em berm ent • Employee and D ependents Group Hospitalization
w ith Surgical Procedure Benefits.

Northwestern Banker


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

March 19^3

by C. F re d M organ, president, reveals.
H ail losses for th e y e a r w ere ex­
ceptionally high th ro u g h o u t the state,
Mr. M organ said. “The com pany’s in ­
come for th e y e a r am ounted to $687,478 resu ltin g in a business increase of
approxim ately 36 p er cent,” Mr. M or­
gan announced. “L ikew ise su b sta n ­
tial gains w ere m ade in assets and su r­
plus of th e com pany. A 36 p er cent in ­
crease in su rp lu s boosted th e com­
p a n y ’s su rp lu s to $432,581.”
Square Deal w as originally org an ­
ized by and for farm ers and has con­
tin u ed u n d er th a t policy for th e 22
y ears of its existence. It is now ra te d
as Iow a’s larg est exclusive hail in su r­
ance com pany. In addition to o p erat­
ing in Iowa, Square Deal also operates
in M issouri.
A t th e recen t an n u al m eeting of th e
com pany, C. F re d M organ of Des
M oines w as re-elected president. O ther
officers are F re d K. H aw ley, L aurens,
vice-president; M erele D. M organ, Des
Moines, secretary; M. P. Allen, Des
Moines, a ssistan t secretary; G rant McP h errin , Des Moines, treasu rer; an d
Lon Osier, Griswold, and G rant McP h errin , directors.

Fiftieth Anniversary
N early five h u n d red in surance of­
ficials and agents from eleven states
w ere to m eet in Des M oines M arch 4th,
for th e Golden A n n iv ersary celebra­
tion of th e F a rm e rs M utual H ail In ­
surance Com pany to be held a t H otel
F o rt Des Moines, P resid en t C. P. R u t­
ledge announced last m onth.
The m eeting w as to open a t 10 a. m.
and continue th ro u g h th e evening to
pay special recognition to W. A. R u t­
ledge w ho on M arch 4th com pletes
fitfy y e a rs’ service as secretary of th e
com pany.
T he m o rning m eeting of v isitin g of­
ficials and agents w as to featu re a dis­
cussion of plans an d u n d erw ritin g
problem s for 1943, and a re p o rt on
1942 business of th e com pany. In
addition th e m o rning session w as to
include an address by Colonel F ra n k
H alligan of th e Iow a Selective Service
Board.
A t a noon luncheon a t H otel F o rt
Des M oines 120 agents of th e com pany
w ho w rote $100,000 or m ore in 1942
business w ere to be special guests of
honor. These agents are from Iowa,
N ebraska, Colorado, K ansas, W iscon­
sin, Indiana, Ohio and Illinois.
T he afternoon session w as planned
to include talk s by com pany re p re ­
sen tativ es from each state in w hich
th e com pany does business an d an
address on m odern selling m ethods
by W. K. N eim ann, Des M oines Agency

27
M anager of th e B ankers Life Com­
pany.
W. A. R utledge, secretary of the
F a rm e rs M utual H ail In su ran ce Com­
pan y and one of its founders, w as to
be honored a t a d in n er in H otel F o rt
Des M oines ballroom , com m em orating
his fifty y ears as se cretary of th e
com pany. As a featu re of th e d in n er
a h isto ry of th e com pany w as to be
p resen ted by S ecretary R utledge cov­
erin g its founding by a little group
of farm ers in Sac county in 1893, th e
early u n d e rw ritin g m ethods followed,
th e g ro w th of m u tu al in su ran ce in
Iow a, and perso n al rem iniscences of
th e pioneer in su ran ce leaders.
P re sid e n ts an d o th er officials of
leading m u tu al in su ran ce com panies
and associations from Iow a and ten
o th er states w ere in v ited to th e Golden
A n n iv ersary b a n q u e t hono rin g Secre­
ta ry R utledge. P re sid e n t C. R. R u t­
ledge w as to p reside a t th e b an q u et
and talk s to be given by F. O. R u t­
ledge, a ssista n t se cretary of th e com ­
pany; H a rry P. Cooper of Indianapolis,
secretary of th e N ational A ssociation
of M utual In su ra n c e C o m p a n ie s ;
C harles R. F isch er, Iow a In su ran ce
Com m issioner; W illiam Koch, p re si­
d en t of th e N ational Life In su ran ce
Com pany an d H. W. B yers, head of th e
A uto Claim D ep artm en t of th e F a rm ­
ers M utual H ail In su ran ce Company.
F a rm e rs M utual H ail In su ran ce
Com pany w as fifty y e a rs old on M arch
4th an d is now th e larg est com pany
of it’s k in d in th e w orld. The com ­
p an y now has over 70,000 policy
holders and assets of $1,848,000.

reliable m ark et for the capital and
sem i-capital assets of th e farm er.
The w orth-debt ratio of th e borrow er
is not as im p o rtan t in th is type of lend­
ing as in loans for m any o th er com ­
m ercial purposes.
The purpose to w hich th e proceeds
of th e loan are p u t is im portant. We
have experienced little difficulty w ith
loans m ade for th e purpose of in creas­
ing the b o rro w er’s earn in g assets and
th u s his income.
F a rm e rs’ o p erating loans cannot be
m ade at th e b a n k e r’s desk and forgot­
ten. Care and diligence are required

EPENDABILITY
For Your
Protection From . . .
FIRE

It’s a n e n v ia b le r e p u ta tio n o f w h ic h
w e a re ju s tly p r o u d w h e n a g e n ts a n d
p o lic y h o ld e r s sa y o f u s, “ T h e y a re

TO RN A DO

BA R N YA R D L O A N S A R E
A M O N G TH E BEST

in th e ir inception. Inspections should
be m ade to give th e lender an oppor­
tu n ity to judge th e q uality of th e live­
stock, th e facilities for th e ir care, and
the efficiency and aggressiveness of
the borrow er. The assets should be
sufficient to re tire th e debt and allow
the farm er to continue operations on a
sustenance basis, and th u s assu re u lti­
m ate re tire m e n t of th e loan. The bor­
ro w er’s incom e is received from th e
sales of pledged property. All sales
m ust be accounted for to th e lender.
T hus a joint control of th e fa rm e r’s
business is vested in th e operator and
th e lender.

d e p e n d a b le ” .

We

en d eavor

a lw a y s

LIG H T N IN G
EXPLO SIO N

to g iv e d e p e n d a b le in s u r a n c e se r v ic e

(C ontinued from page 12)

H A IL

and

T hey fill an econom ic need and con­
trib u te to th e w elfare of th e bank, th e
borrow er, and th e com m unity, and
th u s to th e n atio n in general.
Such loans can be soundly m ade u p ­
on a com m ercial basis or as an in te r­
m ediate te rm credit. R enew als of such
loans do not n ecessarily cause th em to
be classified as capital in v estm en t
loans because sufficient assets of a c u r­
re n t n a tu re are contained in th e col­
lateral to cover th e debts and can be
sold to re tire them .
By th e process of applying th e p ro ­
ceeds of sales and th e disco n tin u atio n
of fu rth e r advances to th e b o rro w er
the loan autom atically re tire s itself.
A p o ten tial and active m a rk e t is
m ain tain ed at all tim es for farm com ­
m odities.
In c o n tra st to th e capital assets of
in d u stry th e re exists a t all tim es a

RIOT

lia b le , tr a in e d fie ld m e n w illin g a n d

C IV IL O UTBREA K

r e a d y to a id y o u as a n im p o r ta n t p a rt

V E H IC L E DA M AG E

o f y o u r W e s te r n M u tu a l A g e n c y C o n ­


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

F A L LIN G A IR C R A F T
SM O KE DA M AG E
from FU R N A C E
REN TA L IN SU R A N CE

in

c o o p e r a t io n

to

p r o v id e

re­

tra ct.
F IR E A N D A U T O P O L IC IE S
L e g a l R e se r v e

W estern M u tu a l
Fire In su ra n ce Co.
9th and Grand

Des Moines, Iowa

"Over a Third of a Century of Safety and Service With Savings”
Northwestern Banker

March 19k3

28

R ela tively Speaking

C h ild’s P lay?

“F o r h eav en ’s sake,” w ro te Tom m y
to his wife, “don’t send an y m ore of
those nagging le tte rs w hile I ’m a t th e
front. I w a n t to fight th is w a r in
peace.”

Mrs. N eighbors: “B ut isn ’t y o u r
son ra th e r young to join th e arm y ?”
Mrs. M alaprop: “W ell, he is v ery
young, b u t then, you see, he is only
going to join th e in fa n try .”

A BANK T H A T G R E W
W ITH N EBR A SKA

UP

(C ontinued from page 13)

April, 1882, and has w orked in it
steadily, except for 4 y ears—1894 to
1898—w hen he w as receiver of the
U nited S tates L and Office a t N orth
P latte. In D ecem ber, 1898, his fath er
becom ing bedfast, W. H. again gave
his en tire tim e to th e b ank
all A LLIED M UTUAL policies
In Ja n u a ry , 1902, th e b an k w as in ­
corporated as th e M cDonald State
Bank, w ith C harles McDonald, p resi­
★ Full Coverage Automobile
dent, and W H. McDonald, cashier.
★ Workmen's Compensation
In 1910, W. H. M cDonald becam e vice
p resident and served w ith his fa th e r
Public Liability Lines
un til his fa th e r’s death in A pril, 1919,
w hen he becam e presid en t of th e bank,
w hich position he held u n til M arch,
1926, w hen he becam e ch airm an of th e
board upon th e election of George J.
Investigate O ur A gency Proposition
T aylor as president, and has continued
ch airm an ever since.
In 1903, W. H. M cDonald organized
th e M axwell S tate B ank of M axwell,
N ebraska, and w as p resid en t of th a t
in stitu tio n u n til he sold his in te re st in
Harold S. Evans, President
June, 1905. H e organized th e G andy
B ank at Gandy, N ebraska, w hich la te r
Hubbell Building
Des Moines, Iow a
on, upon com pletion of th e K earney
b ran ch of th e U nion Pacific to Stapleton, w as m oved to S tapleton and th e
nam e changed to B ank of Stapleton.
Mr. M cDonald has alw ays been, and
C e n tr a l S u re ty a n d In s u ra n c e C o rp o ra tio n
still is, th e p resid en t an d m ain stock­
holder of th is bank.
F in a n c ia l S t a t e m e n t , D e c e m b e r 3 1 , 1 9 4 2
W hen George J. T aylor becam e p res­
ADMITTED A SSETS
Cash (in Banks and O ffice)............................................................................................................... $ 1,573,163.86
ident of th e M cDonald S tate Bank,
B o n d s:
Mr. M cDonald re tire d from active serv ­
U . S. Government (D ir e cto r G uaranteed)........................................ $3,888,175.18
State and M unicipal................................................................................... 3,765,429.57
ice in th e b an k and sta rte d o ut to see
R a ilr o a d ...........................................................................................................
49,725.82
Federal Home Loan B anks........................................................................
55,000.00
w h at th e w orld looked like. H e has
Federal Interm ediate Credit B a n k s.......................................................................................
65,000.00 7,823,330.57
jo u rn ey ed as far as th e Sam oan and
Total Cash and B onds..............................................................................................................$ 9,396,494.43
H aw aiian Islands, visited 14 or m ore
Central Surety Fire Corporation S tock........................ ..............................................................
558,086.85
Real E state O w ned.......................................................................
75,000.00
E u ro p ean countries, including th e
Real E state Sold Under C ontract................................................................................................[
23,653!70
B ritish Isles and Ireland.
M ortgage Loans on Real E s t a t e .......................... *......................................................................
42,048.62
Prem ium s in Course o f Collection (not over 90 d a y s ).......................................................
980,441.90
In 1898 he atten d ed th e A m erican
Accrued Interest on In vestm en ts..................................................................................................
64,409.10
Other A dm itted A sse ts.......................................................................
20,958.62
B ankers A ssociation m eeting a t K an­
Total A dm itted A sse ts.......................................................................................................... ,$11,161,093.22
sas City, w h ere th e first steps w ere
tak en to in au g u rate th e N ebraska
L IA BILITIES
R eserve for C laim s.............................................................................................$4,036,510.74
A ssociation. H e m issed a tten d in g th e
Reserve for Unearned P rem iu m s................................................................. 2,451,969.65
first tw o m eetings of th e N ebraska
Total Claim and Prem ium R eserves.................................................................................$ 6,488,480.39
B ankers A ssociation, b u t has only
829,327.52
Reserve for Commissions, Taxes and Other L ia b ilities............. «.......................................
m issed one since—w hich his fath er,
V oluntary C ontingency R eserve..................................................................................................
100,000.00
C harles McDonald, atten d ed on his
T otal R eserves.......................................................................................................................... $ 7,417,807.91
90th b irth d a y
C a p it a l..............................................................................................................$1,000,000.00
Surplus ........................................................................................................... 2,743,285.31
W. H. M cDonald has atten d ed a n u m ­
b er of A m erican B ankers A ssociation
Surplus to Policyholders.................................................................................................................. 3,743,285.31
m eetings, and w as vice p resid en t of
Total L ia b ilities..............................
$11,161,093.22
th e S tate B ankers D ivision a nu m b er
S ecu rities carried at $626,261.51 in the above statem ent are deposited for purposes
of y ears ago. H e has been on th e
required by law .
B onds are carried on amortized b asis. M arket value of bonds exceeded th eir book
executive council several tim es and
value, at D ecem ber 31, 1942, by $165,040.59. No bonds w ere in defau lt either as to princi­
pal or interest at D ecem ber 31, 1942.
w as ch airm an of th e executive council
M arket value o f invested a ssets o f Central Surety Fire Corporation exceeded their
for one term . H e is also one of th e
book value, at D ecem ber 31, 1942, by $27,300.32.
original m em bers of th e 50 y e a r club
HOME OFFICE KANSAS CITY, MISSOURI
of th e N ebraska B an k ers A ssociation.
R. E. M cG IN N IS, P r e sid e n t
H e w as th e confidante an d b a n k e r
of Buffalo Bill Cody, financing all of
SAN FRANCISCO
•
CHICAGO
•
NEW YORK
Colonel Cody’s w ild w est shows.

are NO N - A S S E S S A B L E

ALLIED

MUTUAL

CASUALTY COMPANY

N orthw estern Banker


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

March 1943

29

What Banks Can Do to Conserve Equipment
(C ontinued from page 20)
m ark et, and can only be obtained w ith
a p rio rity num ber. As m ost of us do
n o t have a p rio rity ratin g , we m u st get
along w ith o u t th em or use a su b sti­
tute. A g re a t n u m b er of b an k s still
have q u ite a sizable supply of bands
on hand. T hese b an k s are conserving
th e ir su p p ly by u sin g th e gum m ed
m anilla stra p w h ich is, and h as been,
offered by m ost b a n k su p p ly houses
for q u ite som e tim e.' T hese m anilla
stra p s prove v ery successful w hen
usel to b undle checks for y o u r last of
th e m o n th statem en ts, and for b u n ­
dling checks for clearing house ex­
changes.
Some of us still have p ap er stocks
w hich w ere p u rch ased p rio r to De­
cem ber 7th. T his p ap er is of a p u re
w h ite color. Com pare th is p ap er w ith
th e supposedly w h ite p ap er w hich you
p u rch ased recently; you w ill find th a t
th e q u ality and te x tu re are th e sam e,
b u t th e w h ite has becom e a b it gray.
T his g ray ish color ap p ears m ostly in
th e cheap er grades of paper, those
w ith a little or no ra g content. The
p ap ers of all ra g co n ten t w ill continue
to be w hite, for th e now v ita l chlorine
used to bleach p ap er is n o t needed in
th e m a n u fa c tu rin g of all ra g content
paper. A n u m b er of b an k s are con­
serv in g on th e ir b e tte r grades of p a­
per, such as th e ir letterh ead s, by w rit­
ing on b oth sides of th e sheet. O thers
are u sin g lette rh e a d s about one-half
th e size of tho se n o rm ally used. T hese
h alf sized sheets hav e proved v e ry
satisfactory, especially w h en used for
w ritin g sh o rt or ro u tin e letters.
A g re a t m an y b an k s re n d e r re g u la r
m o n th ly sta te m e n ts to th e ir custom ­
ers. T his custom en tails th e need­
less giving aw ay of h u n d red s of sta te ­
m en t sh eets each m onth. S tatem en t
sheets are costly, an d it is a p p a re n t
th a t th e b an k s th a t m ake up re g u la r
m o n th ly sta te m e n ts for th e ir business
accounts only, an d w ho m ake up in ­
dividual account sta te m e n ts only w hen
th e sta te m e n t sh eet is filled, are effect­
ing q u ite a sizable saving. T he p ra c ­
tice of re n d e rin g sta te m e n ts to in d i­
viduals only w h en th e ir sta te m e n t
sheets are filled has been in effect at
T he N ational B an k of W aterloo for
m an y years, w ith no ill resu lts.
If som e of us are still u sin g th e
old-fashioned in k pots on o u r custom ­
e rs’ desks, w e should th ro w th e m
out, for th e y are v e ry inefficient and
w asteful. T hey should be replaced
w ith one of th e m ore m odern fo u n tain
pens—th e re are m an y such pens of
good m ake on th e m ark et. W e m ade
th is rep lacem en t a t o u r b a n k about

four y ears ago, and th e saving in ink
alone w as a pleasan t surprise. W e al­
so enjoyed th e com m ents of our cus­
tom ers. A record w as kep t for th e
first y ear to d eterm in e th e am ount of
in k used. W e found th a t w e used only
tw o and one-half quarts, as com pared
to th irty -six q u arts used an n u ally u n ­
d er th e old m ethod. W e also, un d er
th e old m ethod, had to change pen
points alm ost daily; we now change
points tw o or th re e tim es a year.
T ellers can be v ery helpful in con­

serving b an k supplies. V ery often
tellers w ill h an d out a three-on-a-page
checkbook containing th re e to five
h u n d red checks, w hen a single check­
book containing only fifty to a h u n d red
checks w ould answ er th e purpose j,ust
as well. Som etim es a custom er w ill
ask for a check filler and th e teller
w ill h an d him th ree or four. T ellers
are also inclined to h and out coin
w rap p ers in quite large q u an tities to
anyone w ho asks for them . U sually
those people w ho ask for a large

5 0 th A n n u al

fyln a n a ia l S ta tem en t
A s of D e ce m b e r 31, 1942

OF AMERICA’S LARGEST EXCLUSIVE
DWELLING INSURANCE COMPANY
A D M I T T E D A SSE T S
Cash in Banks and Office................................................. $ 284,833.18
Federal Savings and Building and Loan Assns........... 298,000.00
Bonds:
U. S. Government............................... $900,391.53
Canadian Government....................... 149,595.34
Federal Land Banks........................... 89,568.75
State and Municipals......................... 390,257.98
Public Utilities .................................. 10,235.71
1,540,049.31
Accrued Interest ...............................................................
13,831.29
Agents’ Balances (Not over 90 days).............................
32,276.11
Other Assets ...................................................................
601.85
Total Admitted Assets...................................... $2,169,591.74
L I A B I L I T I E S
Reserve for Losses in Process of Adjustment............. $ 19,302.78
Reserve for Taxes and Expenses..................................
17,975.39
Unearned Premium Reserve............................................ 794,351.53
Guaranty Fund .................................... .$ 200,000.00
Surplus ..................................................... 1,137,962.04
POLICYHOLDERS’ SURPLUS .............................. 1,337,962.04
Total ...................................................................$2,169,591.74
In s u r a n c e in F o r c e , $5 72,1 01,0 55.0 0

tfowfit/Mutua/
DWELLING
Organized 1892

INSURANCE COMPANY

Hubbell Building, Des Moines
B. REES JONES, President

L E S T E R T. JO N E S
V ice President

F R A N K H . D IR S T
Secretary

G R A N T M cP H E R R IN
Treasurer

D IR EC TO RS
Harry F. Gross, D e s M o in es
R. L loyd Young, O elw ein
Frank H. D irst, H am pton
R ex H. Fow ler, D e s M oines
L ester T. Jones, D e s M o in es
C lyde L. Herring, D e s M oines
O. B. M cK inney, D en ver, C olorado
Grant M cPherrin, D e s M oin es
R. J. Su llivan , N e w H am pton
B. R ees Jones, D e s M oin es

N orthw estern Banker

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

March 1943

30
am ount of w rap p ers and tubes are not
cutom ers of th e bank. These w rap p ers
cost in excess of 75 cents p er box, and
these people should be m ade to pay
for th e w rappers.
W ith th e falling off of b ank profits,
and of our in ab ility to purch ase all
of th e item s w hich we need, it w ould
seem th e logical tim e for all of us to
devise new m ethods to conserve our
equipm ent and supplies, not only for
th e d u ratio n of th e w ar, b u t to m ake
it an everyday m atter-of-fact policy.
—THE ENT)

P C A T A K IN G A L L
A TT R A C T IV E LO A N S

O w in g to th e c h a ra c te r of the inform ation c o n ta in e d in this p o rt­
folio, it is no t for g e n e ra l d istrib u tio n . It is a v a ila b le for
review,', th ro u g h lo c a l B u rro u g h s offices, to in d u s tria l a n d g o v e rn ­
m en t officials d ire c tly c o n c e rn e d w ith w a r a c c o u n tin g pro b lem s.

"...a real contribution”
Long before Pearl Harbor, Burroughs
technical system s and installation m en
w ere w orking w ith ordnance plants and
w ar industries—with Army, N avy and
governm ent officials—to h elp them with
their w ar accounting problem s. As a
result

of the

thoroughness

and

the

outstanding work of these m en, this
Burroughs

w ar

accounting

portfolio

contains, w e b eliev e, the m ost detailed,

MANUFACTURING
FOR WAR
The m a n u fa c tu re of a irc ra ft
e q u ip m e n t for th e Army Air
F o rce s, a n d the m a n u fa c tu re
of B u rro u g h s fig u rin g a n d
a c c o u n tin g e q u ip m e n t for the
Army, N avy, U. S. G o v e rn ­
m ent a n d th e n a tio n 's m an y
w a r a c tiv itie s, a re th e v ita l
ta sk s a ss ig n e d to B u rro u g h s
. in th e V ictory P ro g ra m . /

com prehensive

information yet com ­

p iled on m ethods and m achines b ein g
u sed

to h a n d le

p r a c t ic a lly

every

accou n tin g procedure essen tial to the
w ar effort.
BURROUGHS ADDING MACHINE CO.
DETROIT, MICHIGAN

Burroughs
Northwestern Banker


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

March 1943

“The article, ‘Country Bankers A s­
sociation to be Organized to Fight
PCA Competition’, in th e F e b ru a ry
issue of th e N or thw estern B a n ker , is
n o t only tim ely ”, says Millard M. Mar­
tin, secretary -treasu rer A llen Co-Oper­
ative C redit A ssociation, Allen, N e­
braska, “b u t is an encouragem ent to
co u n try b an k ers w ho w ill need m ore
th a n encouragem ent if th ey are able
to overcom e th e com petition of th e
PCA and o th er form s of g overnm ent
com petition. In our te rrito ry th is gov­
ernm ent-backed lending agency has
been carry in g on a ra th e r extensive
drive to get m ore and m ore of the
a ttractiv e loans from th e c o u n try
banks.
“T he article on ‘H ow Your Bank
W ill Be Affected by Ration Banking’,
is an o th er of th e class of articles you
publish from tim e to tim e w hich deals
w ith in form ation th a t is really w an ted
by yo u r readers. R ation b an king m ay
be a panacea for all g overnm ent ills,
b u t to m y m ind it is going to be a big
headache for the sm all country
banker. He has no e x tra clerical help
w ho can be assigned to th is ex tra
w ork. T he b an k in th e real sm all
tow ns w ill n ot be troubled for a tim e
because of v ery few w holesale ac­
counts, b u t if th e g overnm ent likes
th is w ay of shiftin g its ow n w o rk onto
th e banks, it w ill soon have every
m erch an t carry in g tw o or th re e sepa­
rate accounts. T he b an k w ill fu rn ish
th e supplies, th e labor and th e m a­
chines to tak e care of all th is foolish­
ness, and th e g overnm ent w ill pay
such a sm all am ount as to possibly
tak e care of bare expense involved,
b u t th e ban k s w ill tak e it on along
w ith th e o th er patrio tic w ork, glad to
help out in th e em ergency, and hoping
th a t it w ill last no longer th a n th e
d u ratio n .”
F rosh: “A re th ey v ery stric t a t
C ornell?”
Soph: “A re they! W hy, w hen a
m an dies du rin g a lecture, th ey prop
him up u n til th e end of th e h o u r.”

31

Complete Investment in Governments
Appears to Be a Sound M ove
The Cash Position of Many Banks Is Too High, and of Course Will Tend Higher

The w a r new s
w as good again in
F e b ru a ry —a t least
on th e R u s s i a n
fro n t—and m ark ets
w ere stronger. The
new s likew ise w as
spectacu lar — w ith
im p o rta n t R ussian
JA M E S H. C LAR K E v i c t o r i e s ,
with
American troops
playing a large p a rt in fierce fighting
in n o rth A frica, w ith continued U-Boat
sinkings. A t home, Congress w as in
revolt, th e m anpow er com m ission w as
firing and being fired upon, new s from
th e d irecto r of th e d ra ft m ade head ­
lines, th e p resid en t o rdered a fortyeight h o u r w o rk week, D onald N elson
fired E b e rsta d t from W PB and in ­
stalled W ilson of G eneral E lectric as
his rig h t-h an d m an. A nd in th e dis­
tance, th e ru m b lin g s of th e show dow n
betw een th e ad m in istratio n and John
L. L ew is becam e m ore om inous as th e
date of th e ex p iratio n of th e w age
co n tract b etw een th e coal m in ers and
th e o p erato rs draw s near.
P o ten tially th e re are num ero u s
strik e s in th e offing. B ut likew ise it is
doubtful th a t m any w ill be allow ed
to m aterialize. T his w a r C ongress
ap p a re n tly is not as p a tie n t abo u t such
m a tte rs as w ere p revious ones—p e r­
haps, grow ing casu alty lists as our
troops go into action on additional
fro n ts w ill also stiffen th e public’s a t­
titu d e to w ard “w o rk or fight.”

The markets have interpreted the
outlook as bullish and stocks have
been especially strong. Despite price
fixing and rationing which played such
a prominent part in the news in Febru­
ary, the market looks for higher prices
for almost everything and the DowJones average for industrial stocks at
the close yesterday (February 24th;
we are writing this the morning of the
25th to meet our deadline) was 129.58
compared with 125.58 on January 30th
■
—a gain of four points. The strength
in stocks has been quite remarkable
in the face of predictions by a num­
ber of market commentators in the

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

77ie Month's Market Maneuvers
Prepared for
The Northwestern Banker

By James H. Clarke
A s s i s t a n t V ice P r e s i d e n t
A m e r i c a n N a ti o n a l Bank & T r u s t C o .
C hicago

past few weeks that the pace of the
rise has been too fast, that the market
has advanced almost uninterruptedly
for ten months and a correction is
over-due, that much of the buying has
been in low priced stocks and has not
been “well informed”. These expert
comments doubtless have had a good
measure of truth in them—but there
are times when markets refuse to fol­
low the rules—maybe this is one. It
is true, however, that recently it has
taken a very large volume of trading
to move the averages upivard a point
—so it is too early to dismiss the pos­
sibility of a setback.
T h e d a ily s tr e n g th in th e m a r k e t is
in d ic a te d b y a c h e c k w h ic h sh o w s
th a t in 19 tr a d in g d a y s to d a te, a d ­
v a n c e s w e r e sc o r e d 13 tim e s a n d
lo s s e s s ix tim e s. In a d d itio n to th e
str e n g th in sto c k s, th e m a r k e ts fo r
m u n ic ip a l b o n d s an d c o r p o ra te is s u e s
— p a r tic u la r ly th e se c o n d g ra d e r a ils—
w e r e lik e w is e str o n g . In g e n e r a l, ra il
b o n d s sa w th e b e st le v e ls th e y h a v e
r e c o rd ed in m a n y y e a r s— a n d w ith th e
o u tlo o k fo r e a r n in g s good , h o ld e r s o f
th e s e is s u e s are b e c o m in g o p tim is tic
a g a in . M a n y b a n k e r s w h o s t ill h o ld
r a il is s u e s w h ic h th e y h a v e w r itte n
d o w n o u t o f e a r n in g s are a g a in w ith in
sh o o tin g d ista n c e , at le a st, o f th e ir
d e p r e c ia te d
v a lu e — Avith
o c c a sio n a l
p ro fits h e r e a n d th e r e . B u t a fte r th e
lic k in g s w h ic h th e y h a v e ta k e n in r a il
b o n d s in th e p a st 13 y e a r s, v e r y little
neAAT b u y in g in te r e st w ill h e crea ted .

S hortly after th is article appears in
p rin t, th e tre a su ry w ill m ake its a n ­

nouncem ent on th e g overnm ent finan­
cing w hich is com ing some tim e in
April. C u rrently we are led to be­
lieve th a t ex tra heavy p ressu re w ill be
placed on the sale of securities to o ther
ban k s—som ew hat sim ilar to the De­
cem ber, 1942, plan—b u t w ith increased
a tten tio n to individuals, tru sts, corpo­
rations and insurance com panies. If
we can assum e th a t th e goal of th irte e n
billions is th e final decision of the
tre a su ry (this is a m inim um figure and
m ay w ell be revised) it is a good guess
th a t p resen t plans are to sell at least
eight billions outside of banks. T his is
ju st a guess—b u t banks bought som e­
th in g over five billions in th e Decem­
b er drive and the g overnm ent prob­
ably w ill p a tte rn its A pril drive along
these lines.

Guesses as to what the treasury will
offer to banks are numerous—too nu­
merous to permit sound judgment
right now. Bankers with whom we
have talked have expressed a prefer­
ence for a note—a four year 1 V2%, for
instance—and a bond not to exceed
ten years. A number of bankers who
purchased the l 3As due June 15, 1948,
in the December financing are so well
pleased with them that they would
like to see a somewhat similar offer­
ing. At this writing there is not much
evidence that such an issue will be
repeated in this financing. Whether
or not a Certificate of Indebtedness
will be forthcoming is open to ques­
tion—with present weight of opinion
against it. In any event, bankers may
be sure that one or more of the issues
will be attractive—considering current
markets and money rates.
F o r th e p a st y e a r o r m ore w e lia \re
a d v o c a te d a fu lly in v e s te d g o v e r n m e n t
p o sitio n fo r a ll b a n k s. A s lo a n s h a v e
c o n tin u e d to d e c lin e — w ith th e p o s­
s ib ility o f a n y c h a n g e b e in g r e m o te—
th e so u n d n e ss o f a fu ll in v e s tm e n t in
g o v e r n m e n ts b e c o m e s m ore an d m ore
a p p a ren t. Cash p o sitio n s o f n u m e r o u s
b a n k s, hoAvever, are s t ill to o h ig h an d
c o n tin u e to groA\r a s lo a n s are paid off.
F r o m an in c o m e sta n d p o in t, it d o es

Northwestern Banker

March 1943

32
not seem to be sound to allow large
cash accumulations when governm ent
securities ranging in m aturities any­
where from 91 day bills to ten year
bonds are available. W hile bills are
of little interest to country banks, on
the other hand the one year Certifi­
cates of Indebtedness are attractive in
certain situations. Other governm ent
notes and bonds in the ten year classi­
fication w hich banks are buying in­
clude the i y 4s of 3/15/45 and, the l ^ s
of 12/15/46, the 1 %s of 6/15/48, and
various 2% issues due in 1951/49. As
mentioned before—there w ill also be
new financing in April and, doubtless,
one or more new issues w hich w ill be
attractive to banks w ill be included.
There appears to be no good reason
to penalize your bank unduly by stay­
ing out of the shorter governm ent
bonds. Even the dour prophets of
after-the-war conditions can be re­
assured if they w ill make a study of
these bonds.

ON THE COVER
The p icture on the co v er of the
M arch N orthw estern B a n k e r is
the handiw ork of a member of the
tru st d epartm ent of The C h ase
N ational Bank, New Yo rk— Paul
J. A rta le , who la st month ce le ­
b rated his fortieth an n iversary
with the C h a se N ational. The
portion of the p icture shown on
our co v er is p art of a la rg e r illus­
tration which ap p eared in a re ­
cent issue of The C h a s e , house
organ of the bank.
Mr. A rta le
has been taking picures only dur­
ing the p ast six y e a rs, and ex­
hibits in "Rain, Snow and M ist"
his m astery of an interesting
hobby.

Nebraska News
Joins Bank Staff
Miss M ary H elen Staples, for th e
past y e ar secretary at th e city school
su p e rin te n d e n t’s office, has resig n ed to
succeed Mrs. Donald F eer on th e staff
of th e W ashington County Bank.

Bank Change
F ra n k F ra n a of P rag u e has accepted
a position w ith th e C om m ercial State
B ank of Cedar Bluff, to tak e th e place
of Miss W auneta Seam an, w ho re ­
signed. Mr. F ra n a is an experienced
b a n k e r and w ill be a g reat help in m an ­
aging th e bank.

Osmond
The board of directors of th e Os­
m ond State Bank, Jo h n and B urch Ad­
kins, A1 L undstrom , Cap T heisen and
Gus M arek, held th e ir an n u al m eeting
recently.
Jo h n A dkins w as reelected p resi­
den t and Gus M arek, vice president.
Ted Goeres, em ployed in th e bank
since its founding several years ago,
w as m ade cashier.

Scotia
E lm er W. Larson, w ho has been
cashier of th e S tate B ank of Scotia
since its organization in April, 1934,
w as elected executive vice p resid en t
of th e b an k a t a session of th e board
of directors w hich followed th e a n ­
nu al stockholders m eeting in Jan u ary .
A t th e sam e tim e A lbert Babcock,
w ho has been serving as a ssistan t cash­

BONDS
Public Utility
In dustrial

ier, w as nam ed cashier. Miss F aye
Cargill w as advanced from bookkeeper
to assista n t cashier.

McDonald State,
North Platte
T he M cDonald S tate B ank reelected
its officers and directors a t th e an n u al
m eeting. Officials rep o rted a v ery suc­
cessful year, w ith b ank deposits on th e
increase. V irgil G raham w as elected
as a new a ssistan t cashier.
Officers are: W. H. McDonald, ch air­
m an; G. J. Taylor, president; L. B.
Dick, vice p resident; J. Y. Castle, cash­
ier; M attie Ralston, Jo h n B arton and
V irgil G raham , a ssistan t cashiers. Mc­
Donald, Taylor, Dick, Castle and J. B.
McDonald are directors.
T he McDonald S tate B ank is in its
66th year. The b ank w as p u rchased
by C harles McDonald, J a n u a ry 1, 1878,
and before th e purchase w as know n
as th e B ank of W alker. M cDonald
m ade th e p u rchase from M ajor L ester
W alker, th e n ow ner.
U ntil N ovem ber of th e follow ing
year, McDonald w as sole ow ner and
th e b ank w as know n as th e B anking
H ouse of C harles McDonald.
W. H. McDonald, now ch airm an of
th e board, w orked for his fa th e r in
1878 as b an k solicitor.

Live Stock National
At th e an n u al m eeting of th e stock­
holders of th e Live Stock N ational
Bank, Omaha, J. L. W elsh, p rincipal
ow ner of th e B utler-W elsh G rain Com­
pany, of Omaha, N ebraska, w as added
to th e directorate.
Mr. W elsh has been engaged in th e
g rain business for th e p ast 27 years.
The B utler-W elsh G rain Com pany op­
erates four term in al elevators hav in g
a th ree m illion bushel capacity. H e is
vice p resid en t of th e N ational G rain
and Feed D ealers Association, a direc­
to r of th e Om aha C ham ber of Com­
m erce, and a p ast p resid en t of th e
Omaha G rain Exchange.
The statem en t of condition of th e
b ank as of Decem ber 31, 1942, show s

R a ilro a d
MARSHALL CORNS
AND C O M P A N Y

M unicipal

MANAGEMENT ENGINEERS

A.C.ALLYJNTandC O M P A N Y

to

In corp orated

BANKS AND BANKERS

100 W est Monroe Street, Chicago
N ew York
R ep resen tatives;

N orthw estern B anker


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

M ilw aukee
W aterloo

March 1943

Omaha
Des Moines

an d

CONSULTANTS

Boston
Cedar Rapids

39 So. La S a lle S treet, C hicago
COST SYSTEMS
SERVICE CHARGE SCHEDULES
ACCOUNT ANALYSIS PROCEDURES

33
to tal deposits of $36,134,602.76, h av in g
doubled its deposits d u rin g th e p ast
year.
T he Nebraska leg islatu re passed, 34
to 0, th e bill of Senator Conklin, Hubbell b an k er, easing th e application of
th e b an k loan lim itatio n law.
T he m easu re provides th a t loans
g u a ra n te e d by an y federal reserv e
bank, th e fed eral g o v ern m en t or an y
agency th e re o f shall n o t be considered
in applying th e lim itatio n of th e
am o u n t th a t a b an k m ay loan to any
corporation, firm or individual.
C harges of discrim in atio n w ere
h u rle d last m o n th ag ain st L. B. 43,
w hich is a special sm all loan ban k in g
m easure.
Sm all loan business m en, auto m o ­
bile dealers and farm ers joined in
opposing th e bill to give b an k s th e
rig h t to charge in te re st not in excess
of 9 p er cent an d to include m inim um
charges on in sta llm e n t loans.
The b an k in g com m ittee d eferred ac­
tion.
U nder th e proposal b an k s could de­
duct in te re st before th e loan is m ade
and m ake m inim um charges in lieu of
interest.

L. H em ingw ay, p resid en t of the
A m erican B ankers A ssociation, in a
m em orandum filed w ith S ecretary of
A griculture Claude R. W ickard, a n ­
alyzing th e plan. Mr. H em ingw ay is
p resid en t of th e M ercantile-Com m erce
B ank and T ru st Company, St. Louis,
M issouri.
T he m em orandum pointed out th a t
th e bottlenecks in food production are
labor and m achinery shortages, ra th e r
th a n credit, w hich is am ple. I t stated
th a t if farm ers are to be induced to in ­
crease th e ir production in spite of h az­
ard s involved, a plan w hich w ould re ­
m ove th e ir fear of loss ra th e r th a n
m ore credit is w h a t is needed, and
suggested th e consideration of th e co­

operative crop insurance and o ther
m easures as a solution.

The P roprieties
Mike and Cassidy m et in th e lodge
room.
“Sure, Mike, m y bhoy, and w h a t’s
th e idea of w earing a m o urning band
on y o u r left leg?” asked Cassidy,
w onderingly.
“Me m ith er has passed aw ay, a n ’ all
a n ’ all,” said Mike m iserably.
Cassidy scratched his head, puzzled.
“W hy, th e n do you w ear it on yo u r
leg instead of on y o u r arm ?” he asked.
“W ell, she w as m y step m ith er,” said
th e other.

National Surety Corporation
T he financial sta te m e n t of N ational
S u rety C orporation, as of D ecem ber
31, 1942, reflects th e re su lts of very
satisfacto ry o p erations for th e year.
A dm itted assets are rep o rted a t $28,780,344, an increase of $2,367,990.
A fter increasin g th e loss reserv e by
ap p ro x im ately $100,000, th e prem iu m
reserv e by $400,000 and th e reserv e for
taxes an d expenses by $740,000, th e re
w as added to su rp lu s $1,110,351. The
su rp lu s is now sta te d as $12,530,005
w hich w ith capital of $2,500,000 m akes
a su rp lu s to policyholders of $15,030,005.
T he com pany continues in a stro n g
liquid position, w ith cash and readily
m ark etab le secu rities n early tw ice its
liabilities. H oldings of U nited States
G overnm ent bonds w ere m ore th a n
doubled d u rin g th e year.
P rem iu m volum e rose 10 p er cent
to $10,616,450, th e h ig h est in th e com ­
p a n y ’s h istory.
Loss and expense
ratio s continued favorable.

Discounting Farmers’
Production Notes
With the recognition that food is a war necessity, and with the increased
agricultural goals for 1943, production loans to farmers and ranchers
assume greater importance.

agricultural credit corporations and other local lending institutions their
facilities for discounting loans made to produce Food for Freedom.
Funds for this financing will be obtained by the Federal intermediate
credit banks from the sale of their debentures which are eligible as
security, regardless of maturity, for all fiduciary, trust and public funds
held under authority of the Federal Government and, up to six months
maturity, for member bank borrowings from the Federal Reserve banks.

Socialized Credit
T he rev iv al of th e R egional A gri­
cultu ral C redit C orporation by th e U.
S. D ep artm en t of A g ricu ltu re for th e
purpose of p u ttin g out $225,000,000 of
additional farm cred it w as c h a ra c ter­
ized as inflationary, as a fu rth e r step
in th e ex tension of socialized credit,
and as an u n n ecessary m easu re b y W.

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

The twelve Federal intermediate credit

banks offer to state and national banks, livestock loan companies,

THE FEDERAL INTERMEDIATE CREDIT BANKS
SPRINGFIELD, MASS.

LOUISVILLE, KY.

ST. PAUL, MINN.

BALTIMORE, MD.

NEW ORLEANS, LA.

OMAHA, NEB.

HOUSTON, TEX.
BERKELEY, CAL.

COLUMBIA, S. C .

ST. LOUIS MO.

WICHITA, KAN.

SPOKANE, WASH.

F u r t h e r i n f o r m a t i o n r e g a r d i n g t he D e b e n t u r e s m a y b e o b t a i n e d f r o m

CHARLES R. DUNN, Fis ca l A g e n t

31 Nassau Street, New York, N. Y.

N orthw estern B anker

March 1943

34

B U T T E R

a n d

B A N K I N G !
p ro d u c ts are c o s tly —local b a n k s will be
called u p o n to finance th e farm ers, c re a m ­
eries, cheese factories, and d ry m ilk plants.
I t will b e th e ir jo b to F in a n c e for V ictory!
R em em b er, " N o r th w e s te rn " is re a d y
a n d eager to help its c o rre sp o n d en t b a n k s.
O ur facilities are alw ays a t y o u r service.
Y ou need only to w rite us . . . telep h o n e,
or w ire, to get o u r full co o p eratio n .

T h e y do go to g e th e r. B u tte r —all d a iry
p ro d u c ts — are v ita l m u n itio n s of w ar.
T h e g o v e rn m e n t is asking d a iry farm ers
to p ro d u ce 122 billion p o u n d s o f m ilk in
1943 . . . m ilk w hich is to be m ad e in to
b u tte r , cheese, po w d ered m ilk, to feed our
a rm y , o u r ow n w a r w orkers, o u r citizens,
o u r allies a n d th e lib e ra te d c o u n tries.
M ilk p ro d u c tio n a n d conversion o f d a iry

USE "NORTHWESTERN" SERVICES
Departm ent of Banks and Bankers

Home of the Northwestern
N ational Bank — in the
financial center o f M in neapol is — where h igh ly
trained specialists in cor­
respondent banking serv­
ice are ready to serve you.
M E M B E R

N orthw estern B anker


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

F E D E R A L

March 19^3

Wm.N . Johnson

F. W. Conrad

V ic e P r e s i d e n t

A s s t . V ic e P r e s .

D. E. Crquley

L. P. Gisvold

A s s t . C a s h ie r

A s s t. C a s h ie r

N O R T H W E ST E R N

NATIONAL
OF

BANK

MINNEAPOLIS

Marquette Avenue: 6th to 7th Streets
D E P O S I T

I

N

S

U

R

A

N

C

E

C

O

R

P

O

R

A

T

I

O

N

35

M IN N E S O T A
NEW S
L. O. O LSO N
P resid e n t
M inneapolis

New Directors Named
A t th e a n n u a l m eeting of th e stock­
holders of th e F irs t N ational B ank of
Chatfield th e follow ing w ere elected
d irecto rs for th e com ing year: Joseph
U nderleak, Wm. Tuohy, G. H. U n d er­
leak, E. F. H arn ish , H. P. T h u rb e r and
F. G. Stoudt. The follow ing officers
w ere re-elected: P resid en t, Joseph U n ­
derleak; active vice president, F. G.
Stoudt; cashier, A. O. K rogen; a ssist­
a n t cashiers, B eth O nstine and W alter
K retzschm ar.

W IL L IA M D U N CA N , J r .
S e c re ta ry
M inneapolis

tion had been vacan t since the death
of H. P. Schoen.
O ther officers of th e bank elected
are, president, T ru m an P. G ardner;
vice president, Irv in g Todd; a ssistan t
cashier and tru s t officer, F ra n k J. H y­
land; a ssistan t tru s t officer, E lizabeth
M. M enk, and teller, A. P. Schmitz.
P rio r to th e directors m eeting and
election of officers the stockholders
m et and re-elected th e follow ing as d i­
rectors: T ru m an P. G ardner, Irving
Todd, M. J. R uhr, Dr. G. T. T ierney and
K arl L. H anson.

Healy Named President

New Cashier Named

Stockholders of F irs t N ational B ank
of M apleton re-elected six d irecto rs a t
th e ir a n n u a l m eeting and voted to set
the d irecto rsh ip in 1943 at th a t n u m ­
ber. H arold H ealy w as elected th e
b a n k ’s p resident; C. J. N orton w as re ­
elected vice president; W. F. B orchert,
cashier; A. B. B o rch ert and E ld o r Pick,
a ssista n t cashiers, and S hirley W ill,
bookkeeper.

L ester H. G augert w as elected
cashier of th e F irst N ational B ank of
H eron Lake at the an n u al m eeting
of th e board of directors. He suc­
ceeds H. W. Tillem ans w ho became
cashier of th e F a rm e rs and M erchants
S tate B ank a t M inneota Jan. 1.
O ther officers of th e bank w ere re ­
elected a t th e an n u al m eeting—J. O.
B ondnus as presid en t and E sth e r
N erge as a ssistan t cashier.
O. J. Nelson, presid en t of the F irst
N ational B ank of W indom becam e th e
new m em ber of the board of directors,
succeeding H. W. Tillem ans.
The
o th er directors of th e b an k are J. O.
Bondhus, W. H. Ja rm u th , E rn e st Winzer and Wm. J. M athias.

New Teller
Steven M. R om anow ski has accepted
th e position of teller and bookkeeper
a t th e Colum bia H eights S tate Bank.
Mr. R om anow ski has had 15 y e a rs ’ ex­
perience in M inneapolis banks.

New Officers
T he S ecurity S tate B ank of P illager
sta rts th e new y e a r w ith tw o new offi­
cers. F ra n k Sw anson w as nam ed p re s­
iden t and Jam es E. R earick, vice p resi­
dent, by th e directors.
The stockholders also elected one
new director, O scar Sw anson.
T he d irecto rs elected by th e stock­
holders include F ra n k Sw anson, Brainerd, Jam es E. R earick, J. A lbin A nder­
son, Oscar Sw anson an d Gus E. P a r­
sons.

Annual Election Meeting
K arl U. H anson w as elected cashier
and tru s t officer of th e F irs t N ational
B ank of H astings a t th e an n u al meettin g of th e b an k directors. The posi­

Veteran Banker Dies
H a rry O’Dilley, 78 years old, cashier
of th e F irs t N ational B ank of Northfield for 27 years, died last m onth
follow ing a five w eeks illness.
D illey joined th e staff of th e bank,
N orthfield’s oldest business in stitu ­
tion, in 1880, four years a fter th e h is­
toric Jam es Y ounger raid and had
been an employe, stockholder, director
and cashier d u rin g th e 63 y ears he w as
connected w ith th e bank.

Elects New Officials
A t the ann u al m eeting of the stock­
holders of th e D etroit State B ank
new officers w ere chosen for th e en ­
suing year.
George J. Haas, w ho has been cash-

ier since the bank w as organized in
1919, w as elevated to th e presidency,
succeeding George J. Johnson of St.
Paul.
B. C. B a rre tt of Staples, w ho has
been connected w ith th e banks of th a t
city for th e p ast tw en ty years, w as
chosen to succeed Mr. H aas as cashier.
C. C. W illiam s w as chosen as vice
president, Miss Alm a W achsm uth as
a ssistan t cashier, O. W. Tim m as teller.
T he directors elected w ere G. J.
Johnson, C. C. W illiam s, R. C. Videen,
George J. H aas and B. C. B arrett.

Annual Meeting
T.
F. S preiter w as elected p resident
of th e F a rm e rs T erm inal S tate B ank
of N ew port at th e an n u al m eeting in
Jan u ary .
O ther officers chosen are T. H. Mattim ore, vice president; Jean ette Mattim ore, assistan t cashier; A. H. Bahs
and Roy E. B eberm eyer, directors.

Duluth Debits Up 14%
The Jan u ary , 1943, volum e of b ank
debits in D uluth show s a 14 p er cent
increase w hen com pared w ith the
first m onth of 1942. These bank debit
figures, w hich are released each m onth
by th e F ederal R eserve B ank a t M in­
neapolis, are rep resen tativ e of th e
checks draw n by depositors ag ain st
th e ir bank accounts, and indicate th a t
paym ents are being m ade for goods,
services, debts, etc. D ebit totals are
considered a good indicator of local
trad e volum e and reflect, in addition,
cash incom e received by farm ers and
m oney spent by the federal g overn­
m ent to cover pay rolls and purchase
w ar m aterials.
*

Names Officers
At a recen t m eeting of the stock­
holders and directors of the F arm ers
State B ank of Osseo, Jo h n M. E vans
w as elected a director and Donald J.
M urphy w as prom oted from teller to
a ssistan t cashier. All form er officers,
C harles H echtm an, president; W. M.
N eum ann, executive vice president; A.
P. H echtm an, cashier, and Joseph
C houinard, a ssistan t cashier, w ere re ­
elected.

Joint Meeting
The an n u al m eeting of th e stock­
holders of the K arlstad S tate B ank
w as held join tly w ith th e G reenbush
State Bank. P resen t w ere directors
G. P. P ih lstro m of A lvarado, T orger
F olland of H alm a, A lfred Carlson, G.
M. T urnw all, N. O. Folland, B arney
Folland of K arlstad, Joe E vans, Bill
E k stra n d and E lm er K jovik of Greenbush.
N orthw estern Banker


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

March 1943

36

Park Rapids

Promotions in St. Paul Bank

A t a n n u al m eetings of stockholders
of P a rk R apids banks, all officers and
directors w ere re-elected. J. E. F ly n n
w as re-elected president of th e State
Bank, R. W. Sm yth, vice p resid en t and
cashier, Ben H ab erer assista n t cash­
ier, A. M. W ay, J. A. G utzler and A. W.
P eterso n directors. H. W. R essler w as
re-elected p resident of th e Citizens N a­
tional, Mrs. E m m a Boyer vice p re si­
dent, C. A. F u lle r cashier, H. F. Hoff­
m an assistan t cashier. M. E. Sm ith and
H. N. Bishop, directors.
HARRY

WE RE NOT
“ SITTING IT O U T”
NWNL Again Sets the Pace With
a Forward-Looking Program
for New Agents

NWNL

is not "sitting o u t”
the war.
I t is attacking, with all the in ­
genuity and "know how” it can
m uster, problems which it be­
lieves cannot be solved too soon,
and which will have an im portant
bearing on the situation of life
insurance — and of this Com­
pany — in the post-war world.
One of these is the problem of
the new agent.
The Arnold System, which re­
wards the agent prim arily not for
the am ount of new insurance he
sells b u t for the quality of service
he renders, has in a little over
three years bettered substantially
the financial outlook of establish­
ed N WN L agents and their stan d ­
ing in their respective com m uni­
ties.
Now N WNL is extending the
principles of the Arnold System
to new agents who can qualify
under a well-rounded program
designed to a ttra c t and develop
com petent, career agents — the
kind of men who because of their
capacity, training, and method
of compensation will measure up
fully to the bigger job which life
insurance will face after Victory.

Northwestern
N a t i o n a l L ife
INSURANCE

C O M PA N Y

O . J . A r n o ld ,

M in n e a p o lis ,

P r e s id e n t

M in n e s o ta

N orthw estern B anker


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

March 19b3

W . W A L L IN

JA M E S G. G O B L IS C H

ARRY W. W A LLIN , for ten y ears
cashier of the G rand A venue
State Bank, S aint Paul, has been
prom oted to vice president. Mr. W allin
has been w ith th e bank since its or­
ganization in 1923 and served as assist­
an t cashier from 1925 to 1933.
Jam es G. Goblisch, w ho began his
b anking career as m essenger in the
M erchants N ational bank in 1924 and
th e n later th a t sam e y ear as clerk at
th e G rand A venue S tate bank, has
been m ade cashier of th e bank.
M ax H. B roner, w ho started w ith
th e G rand A venue State b an k as book­
keeper in 1929 and has been serving as
head teller for several years, has been
given the title of a ssistan t cashier.
The prom otions w ere announced
by F ra n k Schlick, p resid en t of th e
bank after th e m eeting of th e board
held recently. The bank is an affili­

H

Special Offer to Bankers
$2.00 will pay for either Accident
or Health Insurance in full to the
15th of lune 1943.
Most liberal policies paying up to
$25.00 a week with $5,000 acci­
dental death benefit.
No Agents and No Medical
Examination
Just write for information and ap­
plication blank.

Paul Clem ent, Secretary

Minnesota Commercial
Men’s Association
2550 PHlsbury Are.
M inneapolis, Mum.

M AX H. B R O N E R

ate of the F irs t N ational b ank of Saint
Paul and the F irs t B ank Stock corpo­
ration.

10 Per Cent Dividend
The W anda State Bank, at its an n u al
stockholders m eeting declared a 10 per
cent dividend. All th e officers w ere
re-elected: P resident, C hrist L euther;
vice president, S. A. Bellig; cashier,
Nick L euther; a ssistan t cashier, N. W.
Jenniges; directors, Joseph Schwab,
M. P. G orres and Em il Timm.

Eveleth
At th e an n u al m eeting of stockhold­
ers of the tw o E v eleth banks, only tw o
changes w ere recorded. L. J. Tobin
and D ante Paciotti w ere nam ed as new
directors of th e M iners’ N ational Bank.
O ther directors retain ed w ere A lfred
Hoel, J. R. Schuknecht, L. G. Castle
and George Ostrom. Mr. O strom w as
again nam ed p resid en t of th e bank; L.
J. Tobin, vice president, and J. R.
Schuknecht, cashier.
At th e F irs t N ational B ank th e
board of directors w as retained. Di­
recto rs are: R. E ngland, Dr. C. W.
More, P eter P eterson, W. R. Van
Slyke, Abbot W hitm an, George W h it­
m an and R. M. Cornwell. Officers of
th e F irs t N ational B ank are: George
W hitm an, president; R. M. Cornwell,
vice president; G. R. Gable, cashier,
and A. I. N aslund, a ssistan t cashier.

On the M ove
A v en trilo q u ist attended a fu n eral
unb ek n o w n st to th e m ourners. A fter­
w ard one of them told an o th er w h at
had happened at th e cem etery.
“B rother, you w on’t believe it,” he
said, still wild-eyed, “b u t w hen th ey
began to low er Joe into his grave, the
corpse says, “Lem m e dow n easy,
boys.’ ”
“A nd did th ey finish bu ry in g him ?”
asked th e paling listener.
“Man, I dunno! I d idn’t w ait to see!”

37

Tw

T WO new d irecto rs of F irs t B ank
Stock C orporation w ere elected at
th e a n n u al m eeting of stockholders in
M inneapolis.
T hey are D aniel F. B ull, p resid en t
of Cream of W heat C orporation, M in­
neapolis, and T. A. O’S hau ghn essy,
president of Globe Oil & R efining
Com pany, St. Paul. Mr. Bull is a di­
recto r of F irs t N ational B ank of M in­
neapolis, Mr. O’Shaughnessy of F irs t
N ational B ank of St. Paul, both affili­
ates of F irs t B ank Stock C orporation.
D irectors reelected all officers and
voted a dividend of 30 cents a share,
payable A pril 1st to stockholders of
record M arch 15th. The previous
dividend October 1, 1942, also w as 30
cents a share.
T hree m em bers of th e T w in City
Bond T rad ers Club have been nam ed
to com m ittee posts of th e N ational Se­
cu rity T rad ers A ssociation. George V.
Jackish, club president, of H arris, Upham & Company, has been placed on
the W ar Bond com m ittee; W. AAT.
L ew is of Bigelow-A\7ebb, Tne., on the
m unicipal com m ittee, and A. N. Plumley, of F irs t N ational B ank, M inne­
apolis, on th e p ublicity com m ittee.
R. A\T. AVebb, vice p resid en t and
chief of th e tr u s t d e p a rtm e n t of F irs t
N ational B ank, M inneapolis, has taken
over th e added duties of p resid en t of
T itle In su ra n c e C om pany of M inne­
sota. F o rm erly ch airm an of its board.
W ebb exchanged posts w ith A\T. S.
Jen k ins, p resid en t for m an y years.

A fter 25 y ears as tre a s u re r of th e
H ennepin county ch ap ter of th e A m er­
ican Red Cross, Theodore Wold, c h a ir­
m an of th e board of N o rth w estern
N ational B ank, has resigned. He w as
honored by th e c h a p te r w ith th e first
h o n o rary d irecto rsh ip in th e local o r­
g an izatio n ’s history.

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

in

C

ity

N

ew s

By James M. Sutherland
Spe cia l C orrespondent

Clarence R. Chaney, vice president

of N orth w estern N ational, w as nam ed
Mr. W old’s successor as ch ap ter tre a s­
u rer.
H enry S. K ingm an, president of
F arm ers & M echanics Savings Bank,
was reelected a vice chairm an, and
John deLaittre, tre a su re r of the sam e
bank, w as reelected secretary.
S teven M. R om an ow ski has been
nam ed teller and bookkeeper at Colum­
bia H eights State Bank. He has been
connected w ith M inneapolis banks 15
years.
AAT. AA7. W ittenb erg of W ittenbergM errick Company, M inneapolis, has
been elected chairm an of d istrict com ­
m ittee No. 4, N ational A ssociation of
Securities Dealers. Ju stu s F. Low e,
M inneapolis, w as elected secretary.

Board of governors of the N ational
A ssociation of Securities D ealers has
elected L aw ren ce B. W oodward of
W oodard-Elwood & Company, M inne­
apolis, vice chairm an.
Clarence F in ger, form erly w i t h
W ells-Dickey Company, M inneapolis,
w hich closed F e b ru a ry 1st, has been
nam ed m anager of th e new St. Paul
office of The M ilw aukee Company.
T. AAT. P elton of the M inneapolis office
of AVells-Dickey and Karl D. A rnold of
th e St. P aul office, are associated w ith
him.
I. F. Cotton, 68, one-time president

of C entral State B ank and connected
w ith o th er banks in th e city and vicin­
ity, died recently. He w as head of the
I. F. Cotton In v estm en t Company.

S hirley S. Ford, presid en t of N o rth ­
w estern N ational Bank, has been re­
elected a tru ste e of E quitable Life In ­
surance Com pany of Iowa.
A lfred N. Plum ley, of the inv estm en t
d ep artm en t of F irst N ational Bank,
M inneapolis, has been nam ed to the
publicity com m ittee of the N ational
Security T raders Association.

Two b ankers have been elected to
the board of governors of th e M inne­
apolis Club. T hey are A rn ulf U eland,
president, M idland N ational B ank &
T ru st Company, and John D eL aittre,
tre a su re r, F arm ers & M echanics Sav­
ings Bank.
E ig h t m em bers of the executive staff
of In v esto rs Syndicate, M inneapolis,
have been prom oted, according to an ­
nouncem ent by E. E. Crabh, chairm an
of th e board of directors.
AATest F rater and J. R. R idgw ay, Jr.,
w ere prom oted from assistan t vice
presidents to vice presidents. Mr.
Ridgw ay form erly w as eastern sales
m anager; Mr. F ra te r w as in charge of
m ortgage loan operations at B irm ing­
ham , Alabama. Both now assum e new
duties in th e hom e office.
E lected a ssistan t vice p residents
w ere Jam es S. Lane, form erly adm in­
istrativ e a ssistan t to the vice president
and treasu rer; O. R. N eal, an assistan t
secretary since 1926, and A rthur E.
Sanzenbach, form erly in charge of the
New York office.
H erbert E. S tein m u eller w as elected
assistant tre a su re r, w hile P au l AV. M il­
ler and Theodore N. Treat becam e as­
sistan t secretaries.
Tw in City Bond T raders club held
its ann u al m id-w inter p arty at Dyckm an H otel, M inneapolis, Feb. 25. Com­
m ittee in charge included J. E. M asek,
chairm an, C harles J. R ieger and Paul
M atsche.

N orthw estern B anker

March 19^3

38

•
P o stw ar problem s occupied m ore
th a n 200 b an k ers w ho atten d ed th e
fifth an n u al M innesota B ankers Con­
ference a t th e U niv ersity of M innesota
last m onth.
The en tire first m o rn in g ’s session
w as devoted to a series of talk s by
U n iv ersity scien tists on various phases
of scientific developm ent affecting
M innesota’s fu tu re. M entioned specif­
ically w ere possibilities in u tilizatio n
of farm p roducts for in d u stria l p u r­
poses, developm ent of m etallic and
non-m etallic m in erals n o t now com ­
m ercially utilized.
Cellophane, ray o n and sim ilar p ro d ­
ucts from M innesota’s v ast aspen for-

T w in City
F ed eral
S a v in g s and
Loan A ss'n
Statem ent of Condition
D ecem ber 31, 1942
ASSETS
F ir s t M ortgage L oans $15,257,154.64
L o an s on Passbooks
a n d C e rtific a te s.........

16,456.07

P ro p e rtie s Sold on
C o n tra c t ....................

828,606.80

R eal E s ta te Owned and
in F o r e c lo s u re ...........

63,366.35

U . S. G overnm ent
Bonds ..........................

1,941,741.00

F u r n itu re and
F ix tu re s ......................

37,000.00

Cash on H an d in
B an k s ..........................

606,172.07

T O T A L ....................$18,750,496.93

MINN E S O T A

ests, hydrogen, fertilizers and in n u m ­
erable chem icals utilizing hydrogen,
from N orth D akota’s trem endous lig­
n ite deposits; linen from now w asted
seed flax straw , and com m ercial use
of now valueless low grade iron ore
deposits w ere am ong possibilities
m entioned.
Need for increased scientific and
technical tra in in g in secondary schools
—a need bro u g h t out by p resen t w a r­
tim e shortages of persons w ith such
tra in in g —w as stressed by D ean S. C.
Lind of th e U n iv ersity ’s In stitu te of
Technology, in his ta lk to th e bankers.
M anpow er and m achinery shortages
are th e tw o m ajo r problem s facing
ag ricu lture, Dr. O. B. J esn ess, U niver­
sity a g ricu ltu ral econom ist, said. He
urged th a t in dealing w ith all prob­
lem s we m ust not ask for “special
privileges,” b u t “insist th a t th e needs
of th e nation as a w hole receive first
consideration.”
A rthur K. U pgren, vice presid en t
and econom ist, F ederal R eserve B ank
of M inneapolis, told th e bankers:
“W ith favorable prospects for business
a fte r th e w ar, b anking is presented
w ith its o p p o rtu n ity to finance a full
production by a free en terp rise system
th a t can yield on th e basis of th a t
full production the high levels of em ­
ploym ent w hich are w anted.”
Need for im m ediate postw ar p lan ­
ning w as cited by C yril Jam es, ch an ­
cellor of McGill U niversity, Toronto,
adding:
“I t w ill be v ital for th e U nited
S tates, Canada and G reat B ritain to
acquire dom estic p ro sp erity before we
th in k of in tern atio n al panaceas; be-

Jam

&

M em ber S h a re
A ccounts ....................$17,917,243.27

Com

NONE

L oans in P ro c e s s ...........

137,458.16

O th er L ia b ilitie s ...........

14,138.23

Specific R ese rv e s...........

1,879.63

G eneral R ese rv e s...........

412,306.44

U ndivided P r o fits .........

267,471.20

T O T A L .................... $18,750,496.93

Additional members’ accounts
received in 1943 have increased
the total resources to over 19^2
million dollars. The current
dividend rate of 3% has been
maintained since 1936.

pany

Members

N ew York Stock Exchange
and

Other Principal E xchanges

★

STOCKS
BONDS
COMMODITIES
MINNEAPOLIS
ST. PAUL
DULUTH

FARGO
GRAND FORKS
SIOUX FALLS

PRIVATE WIRES

N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 19b3

cause those plans m ust not be in te r­
ru p ted by depressions and unem ploy­
m ent as th ey w ere afte r the last w a r.”
A ccording to D. E. M cFarland, vice
p resid en t of K alm an and Company,
M inneapolis, th e follow ing m em bers
of th e ir firm are now in th e arm ed
services: C. M yron W ebster, L ieu ten ­
a n t S. G., U. S. Navy; H. D uncan
B ow en, L ieu ten an t S. G., U. S Navy;
S tanton Aby, U S. Arm y; K eith R. G il­
m ore, U. S. Coast G uard; K enn eth W.
Scully, 2nd L ieutenant, U. S. A rm y Air
Force.
E xecutive Vice P resid en t O. H. Odin
of the M arquette N ational Bank, M in­
neapolis, is on vacation in th e so u th ­
land.

N O RTH D A K O T A IS
R EA D Y
(C ontinued from page 18)
m ents enabled 28 of 53 counties to pay
off all indebtedness.”
The B ank of N o rth D akota sold 1180
of its 5334 farm s the p ast year, m any
of th em for cash, it is rep o rted by F.
A. Vogel, m anager. As a resu lt of
collections th e ban k has paid $1,500,000 in d elinquent taxes du rin g th e p ast
tw o y ears and since May 1942, paid
the state tre a su re r $2,000,000 plus large
collections on open loans. A verage
inv estm en t in lands held is $8.57 p er
acre. Sales m ade th e p ast year av er­
aged $9.57 p er acre.
“In every county and in num erous
localities stories are told of m en b u y ­
ing land d u rin g the p ast y ear or so and
th e ir h arv estin g a crop th a t has paid
for th e p ro p erty in full,” Groom says.

State Finances Good

ie s o n

LIABILITIES

A dvances from Fed eral
H om e L oan B a n k . . .

NEWS

The balance in all funds in th e of­
fice of th e state tre a su re r on D ecem ber
21, 1942, w as $16,435,520.79, according
to V. L. G ilbreath, deputy treasu rer.
D uring th e year, $1,234,000 of state
obligations w ere liquidated. “T he m ost
gratify in g inform ation is th e fact th a t
our sinking fund, accum ulated to m eet
state obligations upon th e ir m atu rity ,
has increased $1,734,332. T his coupled
w ith th e liquidation of $1,234,000 of
state obligations du rin g th e p ast y ear
resu lts in a com bined increase of th e
sinking fund and decrease in bonded
indebtedness of $2,968,332.21.”
T he to tal bonded indebtedness of the
S tate of N orth D akota is $20,740,850,
w ith $4,592,953.83 in sin king funds to
apply ag ain st above bonds.
Incom e and sales tax figures fu rn ish
th e tru e b aro m eter to business condi-

39

• MI NN ESOTA
tions in th e state, according to State
T ax C om m issioner Jo h n Gray, w ho
rep o rts both show a considerable in ­
crease over fo rm er years. In spite of
th e fact th a t car sales and th e sales
of o th e r large m ach in ery w as cu rtailed
th e N o rth D akota sales ta x to talled
$4,281,011.06 over th e to tal of $3,886,127.52 collected in 1941. C igarette and
snuff tax es in th e state w ere h ig h est
in h isto ry w ith a rev en u e of $692,331.71. N o rth D akota incom e tax es in ­
creased from $769,021.20 to $1,213,084.52.

NEWS

tw een his hom e and his b ank or in the
course of his occupation, is eligible for
a supp lem ental gasoline ratio n (Class
B Coupon Book) in addition to th e
basic gasoline ratio n (Class A Coupon
Book).
If such occupational driving av e r­
ages m ore th a n 470 m iles a m onth,
gasoline ratio n m ay not be allow ed
for such excess, unless it is p referred
m ileage. P referred m ileage gasoline
ratio n s (Class C Coupon Books) are
issued only for necessary driving in
carry in g out certain purposes specified

•
in th e Gasoline R ationing R egulations.
The in terp re ta tio n of the Chief of
th e M ileage Control Section of th e
OPA referred to, specifically desig­
nates trav el by bank em ployees or
rep resen tativ es for th e purpose of ex­
am ining farm s or livestock offered as
collateral for loans and ren d erin g
skilled advice to farm ers in planning
of farm operations as am ong the p u r­
poses for w hich p referred m ileage
gasoline ratio n s m ay be issued.
It is expected th a t th is in te rp re ta ­
tion w ill rem ove any doubt w hich m ay

Per Capita Bank Deposits
All b an k s in N o rth D akota w ere
asked for a sta te m e n t of deposits as
of D ecem ber 15, 1942, and for each of
the fo u r preceding years. A few
failed to rep o rt, o th ers have operated
for less th a n five years, consolidations
and liquidations m ade final figures in ­
definite in a few cases. H ere are the
figures:
1938
$ 83,250,271
1939
108,778,386
1940
107,050,103
1941
141,982,173
1942 (D ecem ber 15)
212,361,888
On a p er capita basis of 641,935
(1940 U. S. census) th e p er capita
bank deposits on D ecem ber 15, 1942,
w ere ap p ro x im ately $330.

ie d serv ice s; to «11 t h e so n s .
t h e i r c u s to m e r s , a n d th e i r h a n k e r s w h o a r e n o w serv in g
c o u n tr y ; to ALL th o s e in th e a r m e d cervices of th e U n ite d N a tio n s o n
la n d , o n sea. a n d in th e a ir w h e re v e r th e y m a y b e ; to nil th e fa r m e r s w ho
u r e q u ip m e n t o r w h o in te n d to ; a n d to a ll m e n e v e ry w h e re w h o love
o rn w e m a k e t h i s s t a t e m e n t :
A ll of u s a t M M a r e d o ­
in g o u r b e s t to
t h e m e n o n th e
I NG a n d FA *
fr o n ts .
MM s a s « * r
M a r itim e “ M ” 1
t h e V ic to r y F I
a n d M a ritim i

c ïtt* * * * * îîî* ïîî* î* îî* îî:îîiîî

1X 1

l ì * * * * * * * Ì * ìì******************
lI**
î* î* î* * * * îîïn ïîîïîîî* ïîîïî* * *
I*****
* * * * Î * Î * Î Î Î Î * Î * * Î *.Î★ Î★Î★Î *' ___
**
I**
I*****

Ready for 1943
W ith a b u n d a n t sub-soil m oisture,
am ple supplies of b e tte r seed varieties,
N o rth
D akota farm ers, in sp ired by
p atrio tic appeals an d th e prom ise of
continued good prices, stan d read y to
give th e ir best efforts to w ard th e p ro ­
duction of g re a t crops in 1943. P re se n t
w orries include farm labor shortages,
fear of shortag es of tra c to r fuel, equip­
m en t and rep airs. “The o p eratin g p ro ­
g ram of each individual farm er is to
produce all he can w ith help, pow er
and eq uipm ent on h an d ,” th e GNDA
review states.

lî* * * * * * * **********************
|* * * * * * îïi* * * * *****************

III

I «

Gasoline Ration Advantage
O f P C A 's to Cease
A ny advan tag es enjoyed by g o v ern ­
m en t sponsored agencies in the field of
a g ric u ltu ra l cred it over co u n try b anks
are expected to be rem oved by an in ­
te rp re ta tio n of th e gasoline ratio n in g
reg u latio n s by th e Chief of th e Mileage
Control Section of th e Office of P rice
A dm inistration, according to th e
W ashington office of th e A m erican
B ank ers A ssociation.
In general, u n d e r th e gasoline r a ­
tioning regulation, an y b an k officer or
em ployee w ho m u st tra v e l m ore th a n
150 m iles but not m ore th a n 470 m iles
a m o n th by autom obile in driv in g be­

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

safety

M e rit B ad g es fo r em]
ees by th e U. S.
C o m m is s io n in
tio n o f M M ’ s o u ts ta n d in g p r o d u c tio n
a c h ie v e m e n t.
M M p r o d u c ts a re o n a lm o s t e very
M a r itim e s h ip . . . so M M p r o d u c ts he
p ro d u c e th e fo o d fo r fr e e d o m , a n c
e t it to O U R B O YS in t h e service i
hey.-m ay be,
a re
.........— ------------ e g u la rly o n t h e
S a v in g s P la n . F o r th is , M M w as a wo
th e T r e a s u ry “ T ” M in u te M a n F la g .
M M w as a w a rd e d t h e G o v e rn o r’s
S a fe ty A w ard . M M h a s a s a fe ty p ro g r a m
in e v e r y p la n t. T h in k SA FE TY a n d a c t
. y o u r fa m ily a n d y o u r
c o u n tr y d e p e n d o n y o u .
M M c o n tr ib u te d to th e
W a r P r o d u c tio n F u n d of
th e N a tio n a l S a fe ty
C o u n c il to s to p a c c id e n ts
t h a t h a v e k ille d o r in ju r e d
11,600 A m e ric a n w o rk e rs
every d a y s in c e P e a rl
H a rb o r.
M M w as o n e of th e first
h u n d r e d firm s in th e
S ta te s to s e t u p t h e L a b o r- M a n t t C o m m itte e .
; w a r h a d n o t b e en t h r u s t u p o n u s,
a id f a r r a t h e r b u ild ON LY f a r m m a y , f a r m tr a c to r s , e tc .; b u t n o w W IN ­
N IN G T H E W AR m u s t be th e first o b je c t­
ive o f a ll . . . b e c a u s e w h a t good w o u ld i t d o
if we c o u ld n o w give o u r c u s to m e r s a ll th e _ V
m a c h in e r y th e y m ig h t d e s ire a n d w e’ lo s t
t h e w a r forever?
U N T IL V IC T O R Y w e w ill b u ild a ll t h e
f a r m m a c h in e r y a n d r e p a ir p a r ts allo w e d
u n d e r G o v e rn m e n t L i m ita tio n O rd e rs , a n d
q u a lity p r o d u c ts for o u r A rm e d Forces^tft.« -*•th e fu ll e x te n t of o u r c a p a c ity !
G e t a ll S crap in to th e B ig Scrap N O W !
“ Care for Your Car, for Your Country”
“ Brave Men Shall Not Die Because WeJ

T H E ) t t f * & r % m « t e 4 b y M M in
1 9 5 8 ... so n am ed by A rm y men in
¡940. . . later other sm all A rm y ve­
hicles were also called Jeet>s.

Minneapolis-Moline Power Implement Company, Minneapolis, minn ., u. s. a.

N orthw estern B anker

March 1943

40

• MINNESOTA
previously have existed as to the
eligibility of b an k re p re se n ta tiv es nec­
essarily driv in g in fu rth e ra n c e of
a g ric u ltu ra l produ ctio n th ro u g h fin a n ­
cial assistance to farm ers for Class C
Coupon Books. T his in te rp re ta tio n
also m akes it clear th a t th e g o v ern ­
m en t sponsored cred it agencies such
as th e PCA’s w ill no longer have any
adv antage over b an k s in obtaining
sufficient gasoline to visit farm s for
such purposes.

NEWS

as chief exam iner a t th e D etroit
B ranch of th e F ed eral R eserve B ank
of Chicago w as announced by C. S.
Young, p resident of th e bank. Mr.
W ilson w ill be in charge of th e ex­
am in ation w ork th ro u g h o u t th e low er
penin sula of M ichigan and w ill have
offices at th e D etroit B ranch of the
F ed eral R eserve Bank. He tak es over
his new duties, M arch 1.
The ap p ointm ent of a resid en t ex­
am in er at D etroit is in line w ith th e
announced policy to build up th e staff
a t D etroit in recognition of th e im ­
p o rta n t place w hich M ichigan is ta k ­

Chief Examiner
The ap p o in tm en t of A. L. W ilson

•
ing in th e ban k in g activ ity of the
S eventh F ed eral R eserve D istrict.

Twin C ity Federal
Shows Marvelous Growth
Roy W. L arsen, recently elected
presid en t of th e T w in City F ed eral
Savings and L oan A ssociation a t M in­
neapolis, rep o rts to th e N or t hw e s t ­
ern B an ker th a t his A ssociation w as
No. 1 in gro w th com paring 1941 and
1942 w ith all F ederal A ssociations in
the country.
M em bers’ accounts w ere increased
over $3,600,000 in 1942, and in 1941 th e

MEAT
RATIONING
B ecau se

of

m eat

rationing, bankers

C. L. F R E D R IC K S E N
P re s id e n t

tod ay m ust know m ore than ever about

M . A. W IL S O N
V ice P re s id e n t

the live stock industry. N ew develop m en ts
m ust b e constantly studied in order to

W . G. N E L S O N
A s s is ta n t V ice P re s id e n t

properly serve your custom ers.

W . C. S C H E N K
C ash ier

This bank, b y exp erience and location,

H . C. L IN D U S K I
A s s is ta n t C ash ier

is an id ea l source for com plete inform a­

C. L. A D A M S
A s s is ta n t C ash ier

tion on liv e stock facts and figures.

We

J. S. H A V E R
A s s is ta n t C ash ier

invite yo u to consult with us— and to u se

JA M E S L. S M IT H
A u d ito r

our com plete Sioux City correspondent
service.

V A eA ~ ~

LIVE STOCK
N

a

t

of

i

o

n

a

s t o a x

l

B

a

Ba+iJc a é
M em b er F e d e ra l D e p o sit In s u ra n c e C o rp o ratio n

N orthw estern B anker


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

March 19^3

n

k

cm r r , mow/k

ROY W . LA RSEN

increase w as over $3,300,000, or a
total of nearly $7,000,000 in tw o years.
On Decem ber 31, 1942, th e to tal as­
sets of th e A ssociation w ere $18,750,000 and a y ear ago th ey w ere $15,692,000.
Also on D ecem ber 31, 1942, first
m o rtg a g e
lo a n s
and
contracts
am ounted to over $16,000,000, and real
estate ow ned has been reduced from a
year ago from $79,000 to $19,000.
M em bers’ accounts on D ecem ber 31,
1942, am ounted to $17,917,000.
The officers and directors of th e
com pany are as follows: A. M. Blaisdell, ch airm an of th e board; Roy W.
L arsen, president; H en ry Rines, vice
president; B. N. Bell, secretary -treas­
u rer; N. P. Benson, director; P. H.
G rinager, director; L. W. L arsen, di­
rector; Dr. Carl L. L arsen, director;
G lenn C. M organ, director; Dr. C. M.
Roan, director; J. B. Sm ith, director;
F. H. Stinchfield, director; R. H. Rines,
director; and C. M. B lackm un, director.

41

Renames Officers
The an n u al m eeting of th e F irs t
State B ank of P ierp o n t w as held last
m onth w ith all of th e directors p res­
ent.
All th e officers w ere re-elected as
follows:
J. A. A nderson, president.
F. M. R oberts, vice president.
O. E. N eum an, cashier

SOUTH
D AKO TA
NEWS
H . N . TH O M SO N
P re s id e n t
P resh o

Named Cashier
H. A. B erg ren w as elected cashier
of th e Citizens B ank of V erm illion to
succeed F. E. Bow m an, given leave of
absence to e n te r th e navy reserve.
Mr. Bow m an is th e th ird m em ber of
th e Citizens B ank force w ho has been
g ran te d leave of absence to e n te r th e
service. R ichard Stevens and R onnie
Campbell, fo rm erly em ployed a t th e
bank, are both tak in g basic tra in in g
a t M iami Beach, F lorida.

Banking Department Reports
An u n u su a l increase in b an k de­
posits th ro u g h th e state is reflected
in a com parative a b stra c t p rep ared
by th e D ep artm en t of B anking and
F inance as of D ecem ber 31, 1942, and
Ju n e 30, 1942—a six m o n th ’s com pari­
son.
A ccording to th e rep o rt, th e total
deposits d u rin g th e last six m onths
period w ere $80,222,543.63. T he total
deposits for the first six m o n th s period
te rm in a tin g Ju n e 30, 1942, w ere only
$56,034,366.26, show ing an increase of
$24,188,177.37. The to tal resources for
the last six m onths period w as $87,525,645.29. T h a t of th e preceding six
m on th s and Ju n e 30 w as only $62,944,701.73, show ing an increase in re ­
sources of $24,580,943.56.
No b an k failu res w ere recorded, and
125 state b an k s an d 23 b ran ch offices
doing business in th e sta te are in ­
cluded in th e rep o rt. T he b an k s have
nev er been cleaner th a n th e y have
been today, E rlin g H augo, S u p erin ­
ten d e n t of B anks, said.
H augo took over th e job of su p e r­
in ten d e n t of b an k s four y ears ago.
A t th a t tim e th e deposits for a y ear
show ed a to tal of only $32,636,815.17.
C om paring th e deposits w ith th e to tals
show n above, b an k deposits have in ­
creased, d u rin g Mr. H augo’s regim e,
appro x im ately 150%.

DcSmet Bank Elects
The Peoples S tate B ank of DeSm et
a t its an n u al m eeting nam ed Neal
M eyer as a director, and Miss Je a n
Curley, second a ssista n t cashier, to re ­

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Federal Reserve Bank of St. Louis

G EORGE M. ST A R R IN G
S e c re ta ry -T rea su re r
H uron

place Miss Inez A nderson. O ther di­
recto rs w ill rem ain th e same.

Ration Banking
In a le tte r to th e N orthwestern
M. D. Scham ber, a ssistan t
m an ag er of th e N o rth w est Security
N ational B ank at C ham berlain, rep o rts
th a t ra tio n banking is w orking out fine
in his bank. He says, “W e are ex­
p eriencing no difficulties w ith th e set
up and it has n o t been necessary to
increase our personnel. Our people
are h aving no difficulty in u n d e rsta n d ­
ing th e system .”
B an ke r ,

Carstens Quits Bank
A t th e an n u al m eeting of th e di­
recto rs of W ilm ot State Bank, P aul J.
C arstens, for 14 years cashier of th is
b an k and its predecessors, disposed
of his stock in th e in stitu tio n and
ten d ered his resignation afte r having
been elected for a n o th er year. J. M.
A asland, w ho has been a ssistan t cash­
ier and w ith th e b ank since June, 1924,
w as elected cashier to fill th e vacancy,
E d B oehm ke w as m ade a ssistan t cash­
ier, and Jean Cam eron, bookkeeper.

Deposits Rise
D eposits a t th e F a rm e rs and M er­
ch an ts B ank of W aterto w n show ed a
su b stan tial increase
du rin g
1942,
A ndrew
K opperud, president, an ­
nounced follow ing th e an n u al m eet­
ing of th e b a n k ’s stockholders.
Officers elected for th e b an k for 1943
are: Jo h n H. H anten, ch airm an of th e
board of directors; A ndrew K opperud,
president; L. H. Loken, vice p resi­
dent; H arm on K opperud, vice p resi­
dent; S. B. C rothers, cashier; Gus
Roggem an, a ssistan t cashier (now on
leave of absence in arm ed services);
R ay Matz, a ssistan t cashier; and
A rnold Koepke, a ssistan t cashier.
T he directors w ho w ere elected at
th e stockholders’ m eeting are: A. G.
B erger, S. B. C rothers, Jo h n H. H an ­
ten, E noch L indquist, L. H. Loken,
H arm on K opperud, L. M. K opperud,
A ndrew K opperud and Carl P eterson.

Elects New Officials
Officers and directors elected at the
an n u al m eeting of th e F irs t N ational
B ank of A berdeen w ere J. J. W arkentin and W. W. T horp of B ritton, A. R.
Allen of M ilbank, W. D. H eupel of Mobridge, M. B. S laughter of Redfield, F.
G. Suttle of E llendale, N. D., and
D w ight Campbell, G. H. F letcher, H.
M. H anten, J. E. Koch, M. F. Pifer,
F red Roesch, George C S later and F.
B. Stiles of Aberdeen.
Koch, Pifer, Roesch and H eupel
are additions to th e board of directors.
The directors re-elected officers after
prom oting Koch to vice p resid en t from
cashier and P ifer from a ssistan t cash­
ier to cashier.
Officers of th e A berdeen b ank and
its branches a t B ritton, Groton, Milbank, M obridge and Redfield include:
A bredeen—F. B. Stiles, president; H.
H. H anten, F red Roesch and J. E.
Koch, vice presidents; M. F. Pifer, cash­
ier; P. L. K uechler and A. Severson,
a ssistan t
cashiers; B ritto n — J. J.
W arkentin, vice p resid en t and m an ­
ager; A. E. Stoa, P auline Pavlik, assist­
a n t m anagers; G roton—S. C. Young,
m anager; A. E. H eupel, acting m an ­
ager; M ilbank—A. R. Allen, vice p resi­
dent and m anager; E. H. B enedict and
H. H. Allen, a ssista n t m anagers; Mo­
bridge—W. D. H eupel, vice presid en t
and m anager; George Goodell and
S tanley L arsen, a ssistan t m anagers;
Redfield—M. B. S laughter, vice p resi­
d en t and m anager; R. J. C rain and C.
C. Crain, a ssistan t m anagers.

Bank Changes Hands
T he B ank of W essington is now
ow ned by Mr. and Mrs. S. P. Seiersen
and son, Carl. W. F. P au tsch and U.
G. H arris sold th e ir in terests to them .
T his b an k w as form erly th e B ank of
V ayland and afte r th e closing of th e
F a rm e rs and M erchants B ank and th e
Citizens N ational B ank of W essington,
the V ayland b an k w as allow ed to
change its nam e and move to W essing­
ton.

Parker Bank Meetings
At th e an n u al m eetings for th e
banks in P ark er, th e rep o rts for 1942
w ere satisfactory and show ed inN orthw estern B anker

March 19^3

42

•

SOUTH

creased volum e of b u siness tra n s ­
acted.
T he F irs t N ational B ank of P a rk e r
elected K. I. Shager, president; P e te r
A nderson, vice president, and V. L.
G otthelf, acshier.
D irectors elected
w ere W. J. Schaefer, K. I. Shager, V. L.
G otthelf, P e te r A nderson, A. S. Bogue.
A t th e a n n u a l m eeting of th e P a rk e r
S tate B ank officers w ere re-elected as
follows: A lan Bogue, p resident; Mrs.
P erish o and C. C. B enning, vice p re si­
dents; V inal Clikem an, cashier; Grace
G underson, a ssista n t cashier. Direc-

DAKOTA

NEWS

to rs are: A lan Bogue, Mrs. Perisho,
C. C. Benning, V. B. Clikem an and E.
C. Beebe.

Kimball Bank Elects
A t th e an n u al m eeting of the stock­
holders and directors of the B ank of
K im ball th e follow ing directors w ere
elected for the com ing year: Lloyd
C ronholm and M rs Alice Beebe of Ip ­
sw ich, L. M. L arsen of W essington
Springs, Mrs. J. H. D rips of G ann V al­
ley and R A. Johnson of Kimball.
The directors held th e ir m eeting and
elected the follow ing officers for th e
com ing year: Lloyd Cronholm , p resi­
dent; L. M. L arsen, vice president; R.
A. Johnson, secretary and cashier; and
E unice H intz, a ssistan t cashier.

Vice President Resigns

WORK FOR

ICTORY
T h is is th e f o r e m o s t
o b lig a tio n o f A m eric an
B a n k in g to d ay .
W e are w h o le h e a rt­
edly using our r e ­

A fter over 46 y ears service w ith th e
F irs t N ational B ank of the Black
H ills, M ason T yler has resigned the
position of vice presid en t and a ssistan t
m an ager of th e Lead branch, re tirin g
to his farm in th e vicinity of Spearfish w here he expects to spend m ost
of his tim e.

Bank of Hoven
T he B ank of H oven rep o rts an all
tim e high in deposits. T hey also w ish
to announce th a t F. S. G raham sold
his in te re st in the b ank to a num ber
of local people. Those tak in g over Mr.
G rah am ’s stock are Mike A rbach, Ben
L em ler, George G. Schm idt, Josephine
Mack, M arie Goebel, Mrs. Ju lia C.
Yocum, St. Paul, Minn., J. F. Sargent
and H. C. W estphal of G ettysburg, Mrs.

•
T eresa M oran of St. Paul, Minn., Miss
Lena H ackl of L akesville, Minn., and
Sue Hackl, H oven, S. D. A t th e a n ­
nual m eeting Ben L em ler w as elected
as ch airm an of th e board of directors,
Mike A rbach becam e p resid en t w ith J.
F. S argent and George G. Schm idt as
vice presidents. P. J. H ackl w as again
elected cashier and Mrs. M arie Goebel
a ssistn at cashier. Mrs. K ath ery n e
P ickart, bookkeeper.

New Officials
At th e an n u al m eeting of th e stock­
holders of th e Citizens State B ank of
Castlewood th e follow ing directors
w ere elected: J. B. V aughn, N. M.
K ranz, W. H. R. Ching, J. G. Jen sen
and C. N. H alvorson. Upon ad jo u rn ­
m ent of th e stockholders m eeting th e
new ly-elected directors assem bled in
th e d irecto r’s room of th e b ank w here
a reorganization of th e official staff for
th e new y ear w as com pleted by elect­
ing J. B. V aughn, president; C. N. H al­
vorson, cashier; N. M. K ranz, vice
president; Alice L inn, a ssistan t cash­
ier; B etty H alvorson, bookkeeper.

Sioux Falls Clearing House
C. A. C hristopherson, presid en t of
th e U nion Savings Bank, w as re ­
elected presid en t of th e Sioux Falls
Clearing H ouse A ssociation at th e an ­
nual m eeting of th e organization.
O ther officers re-elected to serve d u r­
ing 1943 w ere Tom H ayter, vice p resi­
den t of the F irs t N ational B ank and
T ru st com pany, vice president; an d
R alph M. W atson, presid en t of the
N o rthw est Security N ational Bank,
secretary and m anager.

sources to h elp finance
th e w a r e f f o r t , a n d
s ta n d re a d y to c o o p e r­

Out-of-'Xown Hanks

ate w ith o th e r banks

O u t-o f-to w n b^nks and bankers w ill find here

in th is p a trio tic service.

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 an d
eco n o m ica l h a n d lin g o f accou n ts in C h icago. W e

I r v in g
T rust C o m pan y
N ew York

w o u ld appreciate the op p ortu n ity o f serv in g you.
'mmm.

C

i t y

N

a t i o n a l

M ember Federal D eposit

A N D

T R U S T

I n s u r a n c e C o r p o r a tio n

2 0 8

S O U T H

C O M

P A N Y

B
of

L A S A L L E

(Member Federal Deposit Insurance Corporation)

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Federal Reserve Bank of St. Louis

March 19YS

a n k
Chicago

S T R E E T

43
Cando, to a tten d sim ilar m eetings of
th e F irs t State B ank of Cando. All
w ere re-elected directors of th e Cando
bank. Officers elected for th e Cando
b an k w ere H. R. Rendahl, president; F.
A. Foley, vice president; and W. D.
Johnson, cashier.

NORTH
DAKOTA

Square Nails
J . O. M IL S T E N
P re sid e n t
Belfield

NEWS

New Ownership
O w nership of th e F irs t N ational
B ank of Bowbells, w hich w as founded
in 1903 by th e late A. C. W iper, and
w hich has been u n d e r th e m an agem ent
of th e W iper fam ily for 40 years, has
changed hands.
L. S kjelset, com ing here from Brayton, and R. J. P e rrin and C. H estekin,
both of Rham e, are th e new ow ners.
S kjelset is th e new p resid en t an d the
executive officer in charge. P e rrin is
executive vice p resident.
R. C. W iper, Bowbells, son of th e
founder, w ill rem ain w ith th e b an k in
an advisory capacity for a year, as
one of th e vice p residents.

Dickey Bank Elects
Stockholders of th e F a rm e rs and
M erchants S tate B ank of D ickey at
th e ir a n n u al m eeting elected th e fol­
low ing d irecto rs for th e com ing year:
Jam es W aldie E. B. Roscoe, G ertrude
F erguson, E rw in L arson and E a rl A.
Scea.
D irectors m eeting th e sam e day
elected officers, thus: Jam es W aldie,
president; E. B. Roscoe, vice president;
E a rl A. Scea, cashier, and A rleene H.
W hipple, a ssista n t cashier.

Renames Officers
And Directors
All officers an d d irecto rs w ere re ­
elected at th e N o rth w e ste rn State
B ank of H illsboro a t th e a n n u a l m eet­
ing. D irectors are J. I. Hegge, L eon­
ard Beal, and C. L. F erguson. T hey
are, respectively, p resid en t, vice p re si­
d en t and cashier, and a ssista n t cashier.
T he a n n u a l re p o rt revealed th e in s titu ­
tion in sound financial condition w ith
deposits of $1,371,834.56.

Re-elects Officers
T he a n n u a l stockholders m eeting of
th e F irs t N ational B ank of W ilton w as
held in th e office of th e in stitu tio n .
T here w ere no changes m ade in th e
officers or perso n n el of th e B ank. J. J.
Schm id, w ho h as been p resid en t of th e
b ank for m an y y ears w as re-elected;

C. C. W ATTAM
S e c re ta ry
F a rg o

P e te r P. Leif and J. A. Schroeder, vice
presidents; G. H ochhalter, cashier, and
E v ely n R ykkeli, teller.

Shows Big Gain
Deposits in th e Stock G row ers B ank
in N apoleon totaled $827,028.83, a new
h igh in th e 42-year h isto ry of th e local
in stitu tio n , Jan. 1. T he b an k d id n ’t
quite reach th e m illion dollar class,
footings th e first of th e y e a r totaling
$887,835. A y ear ago deposits w ere
$467,000 and footings $515,000.
A t th e an n u al stockholders m eeting
George Laney, president; F. B. H eath,
vice president, and W. D. H eupel w ere
re-elected directors. Mr. H eath, p resi­
d en t of th e D akota N ational at Bis­
m arck, atten d ed th e m eeting. R. A.
M ahrer is cashier.

Gain in Deposits
The F irs t S tate B ank of Gackle h ad
a nice gain in deposits in 1942, from
$295,000 to $485,000. T he footing in ­
creased from $326,000 to $486,000.

Bank Elects
A m eeting of th e directors of The
S ecurity N ational B ank of Edgeley
w as held in J a n u a ry and th e follow ing
directors w ere elected: E. G. Bloedow,
C. W. B urges, M. P. Fevold, A. G.
P o rte r and S. G. Nagel.

C ontractor Dan L iane w as called
upon recently to te a r up and replace
th e hardw ood floor in th e F arm ers
S tate B ank of Lisbon
To th e su rp rise of L iane and b ank
officials th e floor w as found to have
been p u t dow n w ith square nails,
w hich indicated th a t it w as th e origi­
nal one laid dow n w hen th e bank
building w as b u ilt in 1888.
M uch of the flooring itself w as in
good shape and could be used for re ­
placem ent.

Annual Meeting
A t th e an n u al m eeting of th e stock­
holders of th e S ecurity S tate B ank of
D unseith all old officers w ere re ­
elected.
Follow ing th e m eeting of the stock­
holders th e follow ing board of direc­
to rs w ere all re-elected to serve for
th e n ex t year: Mr. Wm. G ottbreht,
Mr. J. J. Douglas, Mr. J. E. Lam oureaux, Mr. W. E H osm er, and Mr. C. C.
W atkins.
Follow ing th e election of th e board
of directors, Mr. W. E. H osm er w as
elected p resid en t of th e board, Mr.
J. E. L am oureaux, vice president, Mr.
W. P. Cam pbell w as re-elected to th e
cashiership and Miss M ary J. Bengtson as a ssistan t cashier.

Davis Heads Loan
Association

J. E. Davis has been elected p resi­
dent of th e F irs t F ed eral Savings
and Loan A ssociation of Bism arck.
O ther officers chosen a t th e a n ­
n u al m eeting w ere George F. Sha­
fer, vice p resid en t and counsel; B.
Annual Meetings
O. Refvem , second vice president;
A.
O. Aune, p resid en t of th e N o rth ­ H a rry G. H ansen, secretary-m anager;
w e ste rn Bank, of L angdon, and H. R. W. S. G raham , tre a su re r; Louise
R endahl, presid en t of th e F irs t State H einem eyer, cashier; A. W. M undy, P.
B ank of Cando, atten d ed th e ann u al R. W ebb and L. C. H u le tt M andan,
m eeting of stockholders of th e R olette directors.
C ounty B ank of Rolla. Re-elected as
directo rs of th e Rolla b an k w ere Mr.
New Cashier at Drayton
Aune, Mr. R endahl and F. A. Foley.
A t th e an n u al m eeting of th e D ray­
A t th e an n u al d irecto rs’ m eeting
following, F. A. Foley w as re-elected ton State Bank, R. H. Johnson w as
p resid en t of th e R olette County B ank elected cashier to fill th e vacancy
for an o th er year. H. R. R endahl w as caused by th e resignation of L. Skjel­
elected vice presid en t of th e Rolla set. O ther 1943 officers elected were:
bank; Chas. E. Foy, cashier; Millie Mae A rth u r F leckten, re-elected president;
L eonard and L o rrain e M ueller, tellers. B erniece F leckten, re-elected vice
A fter th e Rolla m eetings, M essrs. president; and M. C. Kjos, a ssistan t
Foley, A une and R endahl w en t to cashier.
N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 19b3

44

ON

THE

,-•% * ' V

N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 1943

FARM

FRONT

FOR

45
a n t in F. W. Pivonka, form erly assist­
a n t cashier of The F irs t N ational B ank
of M cCracken, K ansas.

NEBRASKA

Banker's Son in New Guinea

NEWS
R. F. C LA R K E
P re s id e n t
P ay illio n

Bank Head Dies
D irectors of th e C entral N ational
Bank, C olum bus, appointed a com m it­
tee of board-m em bers to consider th e
selection of a successor to M. M. T ay­
lor, p re sid e n t of th e bank, w hose
death occurred unexpectedly.
P ending consideration of a succes­
sor to Mr. T aylor, th e board desig­
nated C ashier H ow ard B urdick as ex­
ecutive officer an d Vice P re sid e n t
F ra n k P. Dietz as tr u s t officer for
tran sa c tio n of th e b a n k ’s operations
and official business.
A reso lu tio n in m em ory of Mr. T ay­
lor w as adopted by th e board.

WM. B. H U G H E S
S e c re ta ry
O m aha

ing a directors m eeting last w eek offi­
cers w ere announced as follows: C.
H. Rowan, president; Dr. G. T. E ric k ­
son, vice president; T. S. F o rsyth,
cashier.

Increase in Assets
A ccording to A. C. P eterson, cash­
ier T he F irs t State B ank of Lodgepole, th e total ban k assets have in ­
creased 200% du rin g th e p ast th ree
years. Mr. P eterso n has a new assist­

Orson M. Jeffrey, Jr., son of O. M.
Jeffrey, presid en t of th e Plainview
S tate Bank, Plainview , N ebraska, is
now stationed in N ew Guinea, w ith th e
air corps, after having been in
A ustralia for six m onths. H e en­
listed n early a y ear and a half ago.

Annual Meeting
A t th e an n u al stockholders m eeting
of The F irs t N ational B ank of B an­
croft, N ebraska, th e follow ing officers
and directors w ere elected: Jo h n Herm elbracht, presid en t and director;
Claus F. P eters, vice p resid en t and
director; A. G. Zuhlke, cashier; G. H.
H arm s, a ssistan t cashier and director;
W. G. M underloh, a ssistan t cashier and
director; Conrad Beineke, director.
Jo h n M underloh, vice presid en t and di­
recto r since its organization, resigned
due to old age and ill health.

Queen oí England on His Desk

Bond Buying Anniversary
T he people of Avoca did a b it of
bond-buying in Ja n u a ry , on th e basis
of a single le tte r sen t out by E lm er
H allstrom , cash ier of th e F a rm e rs
S tate Bank, as a so rt of rem in d er th a t
he w as ju s t com pleting 24 y e a rs ’
service in th e b a n k and, he re m a rk e d
casually, it m ig h t be an in te re stin g
com m unity g e stu re if his custom ers
w ould b u y in th e aggregate enough
w a r secu rities to “cover” his te n u re of
office—or $24,000.
T he response w as gratify in g , to say
the least. T otal sales th ro u g h th e
ban k and postoffice am o u n ted to
$38,475.15. Series G Bonds am o u n ted
to $16,800; Series E (m a tu rity value
$28,150) $21,112.50, or a to tal of $37,912.50, w hile sales of stam ps an d bonds
th ro u g h th e postoffice w ere $562.65.

To Army
D.
R oger T hum an, a ssista n t cashier
of th e S tate B ank of T ren to n , received
his degree from th e U n iv ersity of N e­
b rask a in J a n u a ry and is now in th e
arm y statio n ed a t F t. Logan, Colo.

Names New Officers
A nnou n cem en t w as m ade recen tly
th a t Dr. G. T. E rick so n has becom e a
stockholder in th e N eb rask a State
Bank, of B roken Bow, an d th a t C. A.
Owen, fo rm erly a stockholder in th e
bank, h ad sold his in terests. Follow ­

P ic tu r e d a b o v e is Ray R. Calkins, p re s id e n t, s e a te d a t h is d e sk in th e
A m e ric a n N a tio n a l B a n k , S t. Jo se p h , M isso u ri.
M r. C a lk in s re p o rts t h a t
reso u rces o f th e A m e ric a n N a tio n a l in c re a s e d fro m $10,900,000 a t th e close of
b u sin e ss in 1941 to n e a rly $16,600,000 as o f D ece m b er 31, 1942.
T he A m e ric a n N a tio n a l w a s o rg a n iz e d in 1887 as a s t a te b a n k , w ith Henry
Krug, Jr., John Donovan, Jr., a n d J. G. Schneider am o n g th e o rg a n iz e rs a n d
first officers. T he b a n k b ecam e a n a tio n a l i n s titu tio n in 1908. M r. K ru g is
a c tiv e in th e b a n k a s c h a irm a n o f th e b o a rd .
T he p ic tu re on M r. C a lk in s desk, in th e u p p e r le f t c o rn er of th e above
illu s tra tio n , is of u n u su a l in te re s t. T a k e n a b o u t th re e m o n th s ago, i t show s
Maj. G-en. Russell P. Hartle a n d th e Queen of England s e a te d in a n A m e ric an
je e p som ew here in Ire la n d . G en. H a rtle , a p e rso n a l f rie n d o f M r. C alk in s,
to o k o v er com m and o f A m e ric a n tro o p s in I r e la n d a n d E n g la n d w h e n General
Dwight Eisenhower w as p la c e d a t th e h e a d of our fo rc e s in N o rth A fric a .

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Federal Reserve Bank of St. Louis

March 194-3

46

•
Assistant Cashier to Army
V iron E. B axter, a ssista n t cashier of
the F re n c h m a n V alley Bank, Palisade,
N ebraska, left last m onth for p re ­
aviation cadet basic tra in in g a t Jeffer­
son B arracks, Mo.

Deposits Pass Million Mark
Caused by th e w ar-sw elled incom es
of fa rm e r patro n s, the F irs t N ational
B ank of Ord has a footing of over a
m illion for th e first tim e in m any
years, re p o rt R alph E. Misko, p resi­
dent.
T his m eans an increase of

NEBRASKA

NEWS

$300,000 d uring th e p ast year, quite
directly a ttrib u tab le to w ar, m aking
th e F irst N ational the biggest in stitu ­
tion in Valley county.

New Cashier
A t th e an n u al m eeting of th e stock­
holders and directors of The G uardian
State Bank, H yannis, th e su rp lu s of
the b ank w as increased $15,000 and the
usual 5 per cent dividend on o u tstan d ­
ing capital stock w as declared. This
increases th e su rp lu s account of the
bank to $90,000 w hich w ith $125,000
capital and $10,000 in contingent re ­

•
serves m akes th e to tal capital account
of th e b an k $225,000.
All p re se n t officers of the b ank w ere
re-elected to th e ir posts except th a t
H ow ard E. L ichty w as elected to the
office of vice presid en t and cashier.
Donald L ichty w as elected a ssistan t
cashier. C. H. Sudm an, w ho has held
the office of vice presid en t and cashier,
continues on as vice president.

Bank Director Dies
Mrs. Lou A. Conklin, 93, and d irector
of th e H ubbell B ank since 1883, passed
aw ay recen tly in a D eshler hospital.
Mrs. Conklin w as believed to have
held one b ank position longer th an
anyone else in th e country.

100% Increase
D eposits a t th e B ank of B ertran d
show a g reat increase in the p ast year.
A ccording to cashier Tom K ingsley
on Decem ber 31, 1941, b u t 81 tho u san d
dollars w ere on deposit w hile on F eb ­
ru a ry 8, 1943, 177 th o u san d w ere on
deposit. T his show s b e tte r th a n a
h u n d red p er cent increase in th is tim e.

New Bank

m ust be a m inim um o f delay in every step o f the production p ro ­

T he N ebraska b anking d ep artm en t
has g ran ted a c h a rte r to th e H ardy
S tate B ank of H ardy. The new bank
is capitalized at $15,000, has a su rp lu s
of $3,000 and undivided profits of $1,000. J. L. Scroggin, cashier Scroggin
& Co. B ank of Oak, is p resid en t of th e
new institu tio n . The new b ank is th e
re su lt of th e H ardy Com m ercial Club’s
activities w hich sta rte d w hen th e
F a rm e rs S tate w as m erged w ith th e
S ecurity S tate of S uperior w hen
C harles L. Gillilan, presid en t of th e
form er, w as called into m ilitary serv­
ice.

gram. T he w orking time o f m anagem ent, already overburdened,
m ust be further conserved and devoted to production problem s.

Officers Re-elected

T

O achieve the goal which the nation has set for itself—un­
com prom ising victory in the shortest possible tim e — there

In banking, too, speed and efficiency are more than ever essen­
tial. T he American N ational Bank and T rust Company of Chicago
stands ready to cooperate w ith correspondent banks in every pos­
sible way to save time for them as well as for their customers.

AMERICAN NATIONAL BANK
AND TRUST COMPANY
OF

C H IC A G O

LA S A L L E S T R E E T , ¡1
Member Federal Deposit

AT W A S H I N G T O N

IfljS ^ : Insurance Corporation

w
O U R

B U S I N E S S

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Federal Reserve Bank of St. Louis

IS

March 1943

TO

H E L P

B U S I N E S S

At th e an n u al m eeting of th e A llen
Co-Operative C redit A ssociation of Al­
len, N ebraska, th e follow ing officers
and directors w ere re-elected. W. R.
E llis, president; F red Lundin, vice
president; M illard M. M artin, secre­
tary-treasu rer; W . T. C onnell and
D avid Tuning, directors. T he Associ­
ation has in excess of $200,000 de­
posits. M illard M. M artin of Allen, as
ch airm an of th e legislative com m ittee
for th e N ebraska S tate A ssociation
for Co-Operative C redit A ssociation,
appeared before th e B anking Com­
m ittee of th e N ebraska L eg islature in
Lincoln recen tly to discuss bills n u m ­
ber 310 and 332 w hich affected th e CoO perative C redit A ssociations.

47

A D D IT IO N A L
N EB R A SKA N EW S
Page 32
ch airm an of th e dow ntow n ratio n in g
board, said ratio n banking, th e system
by w hich banks take over th e coupon
accounting for sugar and coffee h a n ­
dled by w holesalers and large retailers,
b ro u g h t a flood of inquiries to Omaha
banks, w hich w ere prep ared to handle
the new com m odity accounts w ith o u t
delay.

S U R P R IS E new s from a two-day
m eeting of d irecto rs of th e F a rm
C redit A d m in istratio n of O m aha w as
the re tu rn of C harles M cCum sey, for­
m er p re sid e n t of the F ed eral L and
B ank of Omaha, to a high executive
position w ith an affiliated FCA group.
Mr. M cCum sey w as elected p resid en t
of th e F ed eral In term ed iate Credit
B ank of Omaha, to succeed C. A. S tew ­
art. Mr. S tew art cam e to Om aha from
Chicago th re e y ears ago as p resid en t
of th e in term ed iate cred it bank.
All officers of th e land b an k and th e
P roduction C redit C o r p o r a t i o n of
Om aha w ere re-elected. E lection of
officers of th e O m aha B ank for CoO peratives, of w hich Jerry M ason is
president, w as d eferred u n til M arch.
L and b an k officers are E. N. Van
H orne, p resident; M. E. W elsh, Jr.,
and Leo E. M anion, vice p residents;
George M. F uller, tre a su re r; John Carm ody, secretary; P. H. S tew art and
F rank O. Oshorn, a ssista n t vice p re si­
dents; O. K. P ettin g ill, a ssista n t tre a s ­
u rer, and W ayne E. Sm ith, a ssista n t
secretary.
P ro d u ctio n C redit C orporation offi­
cers are W alter E. A nderson, p resi­
dent; H. A. V iergutz, vice president;
E. J. P etrik, tre a su re r, and H . W.
A nw ay, secretary.
The O m aha FCA serves N ebraska,
Iowa, South D akota and W yom ing

ta ry by Mrs. E velyn A. R yan of G rand
Island.
A nnual m eeting of th e Om aha N a­
tional F a rm L oan A ssociation, w hich
has four h u n d red m em bers in th e area,
was held in su b u rb an Benson. Speak­
ers w ere G. M. F uller, tre a su re r of the
F ed eral L and B ank of Omaha, and
Janies P. B oler of th e in te rn a l revenue
office.
R obert H all, executive officer of the
N orth Side B ank of Omaha and vice

in

S

t .

B A N KS

Bought and Sold

C o n fid en tially and w ith becoming d ignity

BANK EMPLOYEES PLACED.

The Live Stock N ational B ank also
re-elected all o th er officers and direc­
tors: A lvin E. Johnson, president; H.
C. K arpf, H ow ard O. W ilson and R. H.

J o s e p h

‘ FIRST
NATIONAL

f ,

or —

C O M P L E T E
S E R V IC E

A lvin E. Johnson, p resid en t of the

Live Stock N ational B ank of Omaha,
has been advanced from secretary to
vice p resid en t of th e state board of
education for state norm al schools.
Mr. Jo h n so n w as succeeded as secre­

J. L. W elsh, head of th e ButlerW elsh G rain Company, of Omaha, w as
elected a d irecto r of th e Live Stock
N ational B ank of Om aha at its ann u al
m eeting. Mr. W elsh is also a director
and vice presid en t of th e F a rm P roc­
essing C orporation, a p ast p resid en t
of th e Omaha G rain E xchange and
vice presid en t of th e N ational G rain
and Feed D ealers A ssociation. O ther
p a rtn e r in th e g rain firm is H ugh B ut­
ler, U nited States S enator from Ne­
braska.

F IR S T

(banking, trust
a n d b o n d facilities
available to corres­
p ondents)

NATI ONAL

BANK

St. Joseph, Mo.

38 Y e a rs S a tis fa c to ry Se rv ice

THE CHARLES E. WALTERS CO.

M e m b e r F ederal D e p o sit In su ra n c e C o rp o ra tio n

OM AHA, N EBR A SK A

N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 19h3

48

• NEBRASKA
K roeger, vice presidents; P aul H ansen,
cashier; L. V. P ulliam , C. G. Pearson
and H. H. E chterm eyer, a ssista n t cash­
iers; W . P A dkins, ch airm an of th e
board; H. B. B ergq uist, L. S. Burk,
Jam es J. F itzgerald, T. E. G ledhill,
E eo T M urphy, H erm an K. Schafer
and Carl A. S w anson, directors.
W . D ale Clark, p re sid e n t of th e
Om aha N ational B ank, w as elected
presid en t of th e O m aha C learing
H ouse A ssociation a t th e a n n u a l m eet­
ing.
T. L. D avis, p re sid e n t of th e F irs t
N ational B ank of Omaha, w as elected
vice president, an d W. B. H u gh es w as
re-elected secretary and m anager.

NEWS

sp eak er w as R. C arter T ucker, in te r­
natio n al p resid en t of O ptim ist Clubs.

P. F o g arty and J. E. Claussen, all of
Omaha.

C harles D. Saunders, on leave from
vice p residency of th e F irs t N ational
B ank of Om aha to serve as chairm an
of O m aha’s ratio n in g board, said on
his re tu rn from W ashington recen tly
th a t th e oil and gasoline situation,
p a rtic u larly in th e east, w as m ore seri­
ous th a n th e n atio n realized. H e w as
in th e capital for tw o w eeks as m em ­
b er of a com m ittee to discuss n atio n ­
wide ratio n in g problem s.

W hen Mrs. E v a K en n ard W allace
w as nam ed 1943 p resid en t of the
Om aha V isiting N urses A ssociation,
th e board also chose Miss C atherine
T hum m el and Mrs. H a rry S. B yrne
vice presidents, to succeed Mrs. D rexel
Sibbernsen and Mrs. L aw ren ce D rink­
er. Mrs. W allace also w as p resid en t
of th e association in 1932, 1933 and
1934, and has been a board m em ber
16 years.

C hairm an L loyd C. Thom as of th e
N ebraska A g ricultural and In d u stria l
C onference recen tly announced ap ­
p o in tm en t of a legislative com m ittee
com posed of state leaders in agricul­
tu re, b usiness and civic activities to
assist state legislators in considering
legislation proposed a t th e statew ide
m eeting of th e conference in Colum­
bus, N ebraska, D ecem ber 5th.
G eneral ch airm an of th e com m ittee
is C. Y. Thom pson, W est Point, N e­
braska. M em bers of th e com m ittee in ­
clude A lv in E. Johnson, p resid en t of
th e Live Stock N ational B ank of
Omaha, P h il W. Moore, E arle Reed,
W. J. K irkbride, C. W. H iner, F ra n k

T. N. R utter, 73, p ro m in en t in Om aha
stock, bond and g rain b ro k erag e cir­
cles from 1918 to 1942 and re sid e n t of
Om aha for th a t len g th of tim e, died re ­
cently a t th e hom e of a son-in-law, Dr.
P. B. W illauer, in P hiladelphia.

U nder th e leadership of W. D ale
Clark, p resid en t of th e O m aha N ation­
al B ank, th e O m aha Y. M. C. A. spon­
sored a m em bership drive d u rin g J a n ­
uary. Mr. C lark is p resid en t of th e
Om aha Y. A t th e kickoff dinner,

-------------------------------------------------------------------------- A
T H E ONLY BANK IN T H E STO C K YARDS

L et us co o p era te w ith y o u in the
m a k in g o f cattle and sh eep loan s
to y o u r cu sto m ers, so that y o u r b a n k and o u rs m ay h elp in
fin a n cin g th e m eat n eed ed to fe e d th e figh tin g fo r c e s o f the
U n ited States and h e r a llies.
O

F

F

I

C

E

R

S

FR A Z E R L. FO R D , P re s id e n t
J . A. G R E E N F IE L D , J R ., V ice-P resid en t
H A R R Y H . M O H L ER , V ic e-P re sid en t
RAY W . SN Y D ER , C ash ier
T. J . M cC U LLO U G H , A sst. C ashier
M. E. B L A N C H A R D , A sst. C ashier

S

t.

{J o d e p U

STOCK YARDS BANK
Sa.

S t.

¡ j a ie fU t, M ild & u fr i

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n

______________________________J
N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 19^3

•

Mrs. T. L. D avis, Mrs. H. W . Y ates,
Mrs. D enm an K ountze and Mrs. E lls­
w orth M oser w ere am ong board m em ­

bers, w hose term s expired th is year,
reelected.
Jesse E. B illin g s, w ho recen tly w as
nam ed a ssista n t secretary -treasu rer of
th e H om e F ed eral Savings and Loan
A ssociation of Des Moines, w as a resi­
den t of Om aha 28 years, au d ito r of
th e Occidental B uilding and Loan
A ssociation d u rin g m uch of th a t tim e.
H e is a p ast p resid en t of th e Omaha
chapter, A m erican In stitu te of B ank­
ing, and has been exam iner for the
F ed eral H om e L oan B ank A d m inistra­
tio n and field rep resen tativ e for th e
Des M oines F ed eral H om e L oan B ank
for six years.

Clearing House Meeting
M essrs. A. H. Shultz and H erm an
F. M eyer rep resen ted th e F a rm e rs
S tate B ank of S cribner a t th e an n u al
m eeting of th e F irs t N ebraska R egion­
al Clearing H ouse association held in
F re m o n t last m onth. Mr. S hultz w as
re-elected p resid en t of th e association
for a second term .

New Officers and Directors
T he Genoa N ational B ank a n ­
nounces th e election of th e follow ing
directors, officers and em ployees a t the
an n u al m eeting.
D irectors: Jo h n Elm , E. L. B urke,
Jr., Dr. H om er Davis, Eloise G. B urke
and C. E. Pearson.
Officers are: Jo h n Elm , president;
E. L. B urke, Jr., executive vice p resi­
dent; C. E. Pearson, vice p resid en t and
cashier; W. M. W inell, assista n t
cashier; E v a K. Ford, a ssistan t cashier;
S hirley W inell, bookkeeper.

C o d y Bank Sold
H. B. Skeen, w ho has been asso­
ciated w ith th e B ank of Cody since
1906, has disposed of his e n tire in terest.
Mr. Skeen cam e to Cody in 1906 and
p u rchased th e b an k from S park Broth-

49
ers and contin u ed at its head for
thirty -sev en years.
H. L. Severns, w ho h as been asso­
ciated w ith th e b an k since 1912, and in
th e capacity of cash ier since 1917, has
p u rch ased control of th e b an k and
associated w ith him w ill be Dr. O. W.
Noyes of St. Louis, M issouri, Mrs. H.
L. Severns and Chas. D. S h rid er of
Long Pine.
A t th e board of d irecto rs m eeting,
H. L. S everns w as elected to th e office
of presid en t; Mrs. H azel Severns, cash­
ier, and Miss E v ely n Tech, bookkeeper.
Mr. S h rid er w ill serve on th e b oard of
directors, along w ith th e o th er officers.

Bank Group Elects
A. E. D w ehus of D annebrog has been
elected p re sid e n t of th e P la tte V alley
R egional C learing H ouse A ssociation.
H e succeeds Jo h n Spear, K earney.
O ther officers nam ed a t th e an n u al
m eeting w ere J. C. W ilson, W olbach,
vice p resid en t; George W. M onson,
G rand Island, secretary -treasu rer; Jo h n
Itzen, Palm er; F ra n k F a rr, A urora;
R obert A rm strong, St. P aul; F. J.
Cleary, G rand Island, and J o h n Spear,
m em bers of th e executive board.

Clearwater
T he C itizens S tate B ank elected p res­
e n t d irecto rs for an o th e r year. T he
b an k show s a pro sp ero u s y e a r for
1942. T he deposits of th e b a n k have
increased 55 p e r cent. T he re g u la r
5 per cen t dividend w as declared.
Im m ed iately a fte r th e stockholders
m eetin g th e d irecto rs held th e ir m eet­
ing. J. W. B ennie w as elected p re si­
d en t and F ra n k Mapes, vice president.
T he follow ing officers w ere em ployed:
H. D. Miller, cashier; A udrey F. M iller,
assista n t cashier, and N etha F. McGee,
bookkeeper.

Lincoln
A t th e a n n u al m eeting of th e F irs t
N ational B ank of Lincoln, H ow ard
F reem an , cashier, w as elected vice
p resid e n t and cashier. E a rn e s t U.
Guenzel, a ssista n t vice p resid en t, be­
cam e vice president, and J. H. K ing­
dom w as nam ed a ssista n t cashier.

S TA TE banks in N ebraska w ere
n ever in a b e tte r financial con­
dition, according to th e state banking
d ep artm ent. W hile th e n um ber of
b anks has been receding, th e to tal
assets have been rap id ly increasing.
A t th e p resen t tim e th ere are 272 state
banks, as com pared w ith 285 a y ear
ago, 279 on Ju n e 30, and 276 on Sept.
30. T otal assets a y ear ago w ere 99
m illions, on Ju n e 30, 107 m illions, and
on Sept. 30, 128 m illions. The figures
for Jan. 1 of th is y ear are now being
com piled, b u t it is certain th a t th ey
w ill show an increase.
N ebraska depositors are gaining in
secu rity of th e ir deposits w hile the
co u n try ban k ers are not m aking as
m uch m oney as th ey once did. T h at
accounts for a decreasing nu m b er of
banks. G reat increases in governm ent
bonds m eans a v ery m odest re tu rn for
th e b an k s a t present. B ut it is p re ­

dicted th a t th e rap id u p tu rn in country
p ro sp erity w ill soon be reflected in
b ank profits.
T here are 133 n ational ban k s in th e
state w ith total assets of over 388 m il­
lions.
P u rch ase of th e controlling in te r­
est in th e H avelock N ational ban k
from O. J. H itchcock by B. G . “B ern ie”
Clark, cashier of th e N ational B ank of
Commerce, w as announced. Mr. C lark
said th a t he and his fam ily w ould con­
tin u e to live a t th e ir p re se n t home,
1401 South 15th, u n til a suitable loca­
tion could be found in Havelock.
Mr. C lark first becam e associated
w ith th e N ational B ank of Commerce
Dec. 1, 1917, and w as on leave from
Oct. 1 u n til Dec. 11, 1918, w hen he w as
discharged from th e arm y. H e has
served th e b ank in v arious capacities
since th a t tim e.

From actual experience we know what
Nebraska banks expect from a Lincoln cor­
respondent. By knowing what they want, then
giving it to them, our correspondent relations
have become increasingly broad in scope and
satisfaction.
TRY CONTINENTAL NATIONAL BANK SERVICE!

New Cashier
C larence C astner, fo rm erly of A u­
burn, h as assum ed his new du ties as
cashier of th e F a rm e rs & M erchants
N ational B ank of A shland.
YO UR STATE BANKERS A SSO CIATIO N
O FFIC IA L SA FE, V A U L T A N D n
TIM ELOCK EXPERTS
u

F. E. DAVENPORT & CO.

( o n t i n e n t a l N a t io n a l

B a Nk
L IN C O L N
Member F ederal D eposit Insurance Corporation

OM AHA

N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 19^3

50

• NEBRASKA

N E WS*
Banquet for New Head of
Omaha Stock Yards
NE of th e largest and m ost in ­
terestin g b an quets ever staged in
Om aha w as p u t on last m onth a t th e
F o ntanelle H otel in O m aha by P resi­
dent A lvin E. Joh n so n of th e Live
Stock N ational B ank of O m aha w ith
H a rry B. Coffee, th e new presid en t of
the U nion Stock Y ards Com pany of
Omaha as th e g uest of honor.
It w as one of th e m ost re p re se n t­
ative g ath erin g s of its kind ev er held
in th e m iddlew est and in atten d an ce
w ere 500 bankers, live stock feeders,
producers, buyers, com m issioned m en,
and governm ent rep resentatives.

O

Mr. Jo hnson presided as to astm aster,
and b rief speeches w ere m ade by E. R.
H andy, vice presid en t of th e Stock
Yards Company; E. A. Kelloway, C. J.
Abbott, H yannis, N ebraska; Jo h n R.
Jirdon, M errill, N ebraska; and Gov­
ern o r D w ight Griswold, an old friend
of Coffee.
A bove, c e n te r, A lv in E . Jo h n so n , p re sid e n t, th e L iv e S to c k N a tio n a l B a n k
of O m aha, a n d on h is r ig h t (fa c in g th e c a m e ra ), H a r r y B. Coffee, new p re s id e n t
o f th e U n io n S to c k Y a rd s C om pany o f O m ah a; on M r. J o h n s o n ’s le ft, G o v ern o r
D w ig h t G risw old, of N e b ra s k a .
B elow , th e crow d o f five h u n d re d w ho a tte n d e d th e b a n q u e t g iv e n b y M r.
Jo h n so n in h o n o r o f M r. Coffee.

Follow ing th e dinner, m ost of th e
assem bled guests had an o p p o rtu n ity
to m eet Mr. Coffee w ho is w ell-know n
th ro u g h o u t th e m iddle w est, both
as a livestock producer and th ro u g h

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O F

I O W A

1912 Grand A ve., D es M oines, Iow a

N orthw estern B anker

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Federal Reserve Bank of St. Louis

March 19b3

51
his political career, since he has served
for a n u m b er of y ears as U nited States
congressm an from N ebraska.
In his response to th e v arious
speakers, Mr. Coffee said it w as th e
finest w elcom e to a city th a t anyone
could ev er hope to receive, and he
prom ised his full resources and energy
in help in g prom ote th e O m aha live­
stock m ark et. Mr. Coffee estim ated
the daily receipts to th e Om aha m a r­
k et to be w o rth appro x im ately a m il­
lion dollars. He said 50 p er cent of
the cattle received a t th e Om aha m a r­
ket come from N ebraska and 81 per
cent from Iow a and N ebraska com ­
bined. T hirty-six p er cent of th e sheep
at the Om aha m a rk e t come from Ne­
b rask a and 44 p er cent from Iowa
and N ebraska. Of th e hog receipts
49 p er cent come from N ebraska and
92 p er cent from th e Iow a-N ebraska
territo ry .

“AS WE GO
MARCHING
O N”
After little m ore than a year of war,
A m erica’s progress in raising and train­
ing our armed forces and m obilizing the
n a tio n ’s industry for war work has been
little short of m iraculous.
Not only have we m anned and equipped
the greatest Army and Navy in our h is­
tory, but we have continu ed to supply our
allies w ith the m u n ition s needed for their
war requirem ents.
Am erican bankers take pardonable pride
in their contribution to th is accom plish­
m e n t—the financing of war industries,
and the sale of G overnm ent War and
Victory Bonds.
The public can rest assured th at their
banks w ill spare no effort to speed the
final Victory.

RA Y R. R ID G E

Mr. Ridge, a vice president of
the Omaha N ational B ank, and
associated w ith the institution
for the past fifteen years, has
been made a m em ber of the
board of directors. He came to
the Omaha National from the
First N ational of St. Joseph, Mo.

...THE...

PHILADELPHIA
NATIONAL BANK
ORGANIZED 1803

First A id
A new first aid stu d e n t observing a
m an on a d ark en ed side stre e t spraw led
face dow nw ard, ru sh ed over and be­
gan giving tre a tm e n t for resuscitation.
P a tie n t (w ith difficulty): Lady, I
don ’t know w h a t y o u ’re up to, b u t I
w ish y o u ’d stop tickling me; I ’m hold­
ing a la n te rn for a guy dow n in th is
m anhole.

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

P H IL A D E L P H IA , PA.
R e s o u r c e s o v e r *700,000,000
M em ber of Federal Deposit Insurance Corporation

N orthw estern B anker

March 1943

52

Location
Equipment
Experienced Personnel
E n ab le us to give very
satisfactory service

SE N D U S Y O U R O U T -O F -T O W N IT E M S
F O R C R E D IT

W e in v ite you to give o u r service
a try o u t

LIVE STOCK NATIONAL BANK
O

M

A

H

A

Resources Over $38,000,000.00
Member Federal Deposit Insurance Corporation

N orthw estern Banker


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Federal Reserve Bank of St. Louis

March 1943

53

Formal Opening

N EW S
B . A. G R O N STA L
P re s id e n t

FRA N K W A RN ER
S e c re ta ry

C ouncil B luffs

Des Moines

Q uad-City Clearing House
The election of Louis B. W ilson,
p resid en t of th e S tate B ank of Rock
Island, as p re sid e n t of th e Quad-City
Clearing H ouse A ssociation, featu red
th e an n u al m eeting and election held
a t th e D avenport B ank & T ru s t Co.
recently. H erm an Staak, vice p re si­
den t and cash ier of th e D avenport
bank, is the re tirin g p resid en t of th e
association.
O ther officers chosen w ere H. R.
Chapm an, cash ier of th e S tate B ank
of E a st Moline, vice presid en t, an d C.
J. K lingebiel, cashier of th e Moline
N ational bank, secretary -treasu rer.

Changes Position
Miss Lucille K lein has resigned h e r
postion a t th e St. A nsgar Citizens
S tate B ank and has accepted a position
in th e A ckley S tate B ank, h e r hom e
tow n.

Named Bank Director
F re d A. F lo p p in g , of U nderw ood,
w ell - kn o w n w e s t
P o ttaw attam ie
county farm er, has been nam ed a
d irecto r of th e Council Bluffs Savings
b an k at a board of directo rs m eeting.
F lo p p in g w as in stalled im m ediately.
H e replaced Jo h n K eeline, w ho has
becom e p resid en t of th e b an k of
Cherokee.

New Cashier at Leon
C harles H. Kelley, of th e state b a n k ­
ing d ep artm en t, is th e new cashier
for th e D ecatur C ounty State B ank
a t Leon. K elley h as been exam iner-

in-charge of closed banks for th e state
ban k ing d ep artm en t in th e M anchester
area for ten years, and has been associ­
ated w ith th e state b an king d e p a rt­
m en t for tw enty-six years.

T he new ly organized M axwell State
B ank had its form al opening in th e
office location of th e C apital City State
Bank, w hich discontinued operation
Ja n u a ry 30th.
The office personnel of th e new b an k
includes D. E. P eters, cashier; Gladys
P eters, assista n t cashier, and Guy
Cooper, active vice president.
The te n tativ e board of directors of
the new corporation to handle th e af­
fairs of th e in stitu tio n u n til th e first
an n u al m eeting w ill include F o rest F.
Cooper, president, Guy Cooper, vice
president, Rolfe W agner, of Des
Moines, Carl H. Hill, J. M. A tterb erry ,
Mike P h elan and Dan E. Peters.

Bank Changes— Exira

W y att Wood, son of Mr. and Mrs.
F ra n k W ood of G illett Grove, and a
corporal in th e A rm y M edical Corps,
has been rep o rted as killed in action
in th e south Pacific.
Mr. Wood, w ho is cashier of the
G illett Grove Savings Bank, and his
w ife received a le tte r from th e ir son
ju s t p rio r to th e w ord from th e W ar
D epartm ent.

Mrs. George Cannon, w ho has been
em ployed in th e E xchange S tate bank,
E xira, the p ast th ree years as a ssist­
a n t cashier, resigned h er position and
has left for Long Beach, California,
w here she w ill m ake h e r home. H er
husb an d is in th e navy and is stationed
there. R ay A nderson, cashier a t th e
bank, w as recen tly inducted into th e
service. Alva Jo rg en sen and W a rre n
C hristensen are assisting at the bank,
tak in g th e places of Mrs. C annon and
Mr. A nderson.

Resigns Post

New Service Charges

Killed in Action

Mrs. Iv an Shradel, bookkeeper a t
th e Peoples T ru st & Savings b an k of
R iverside for th e p ast six years and
tow n treasu rer, has resigned and w ill
join h e r husband, a lieu ten an t in th e
arm y a t Belleville, Illinois.

Karsten Honored
O. L. K arsten, cashier and execu­
tive officer of th e N ew ton N ational
B ank, w as felicitated by th e M aytag
Coffee Club recently, th e occasion be­
ing his b irth d ay . He w as praised by
Jam es R. R hodes w ho congratulated
th e b an k er on his g reat im provem ent
in every w ay—even to his new born
m ustache—since he cam e back to his
nativ e Iow a afte r having been a
b a n k er a t K ew anee, Illinois, for some
years.

At a m eeting of th e board of di­
rectors of th e Clarence Savings B ank
th e follow ing service charges w ere
adopted: 35 cents p er account p er
m onth. If only tw o checks or less
have been charged p er m onth th e ac­
count w ill be classified as inactive and
no charge w ill be made. $1.00 p er
m onth w ill be charged ag ain st busi­
ness accounts. Checks th a t ceate or
increase an overdraft, each 25 cents.

Annual Meeting
In Burlington
A nnual m eetings w ere held last
m onth by both th e F arm ers and M er­
ch ants and W est B urlington savings
banks.
T here w as a good attendance of
stockholders at th e F a rm e rs and Mer-

S carborough sIC oinIPANY
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First N ational Bank Building, Chicago


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Federal Reserve Bank of St. Louis

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H orace A. Smith, Iow a R epresentative
Des Moines, Iow a

N orthw estern B anker

March 1943

54

• IOWA
ch ants b an k m eeting a t w hich officers
rep o rted a h ighly successful y e a r w ith
an u n u su al increase in business.
All directo rs w ere reelected and at
th e ir o rganization a fte rw a rd renam ed
officers. Officers of th e b an k are: M.
E. T oothacre, p resident; Oscar Riepe,
vice p resident; H. R. B u ettn er, ch a ir­
m an of board; H. E. Simon, cashier; C.
H. W alsh, a ssista n t cashier. D irectors:
M ark Blaul, H. R. B u ettn er, Jam es
Kelly, H en ry K oestner, Oscar Riepe,
H. E. Simon, George S teingreaber, H.
E. Toothacre, C. H. W alsh, and M ark
A. W alsh.

YD
IU

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vJ

•

J. J. Meyer, a d irector of th e W est
B u rlin gton b ank since 1928 and p resi­
den t since 1937, ten d ered his resig n a­
tion due to extended illness. J. L. B.
G raham succeeds him as president.
S tockholders h eard officers rep o rt
a satisfactory y ear w hich ended De­
cem ber 31st, w ith an increased volum e
of business as com pared to th e p rev i­
ous year.
D irectors elected by th e stock­
holders: J. L. B. G raham , F ra n k J.
Skesa, H. K irkendall, C. H. W alsh and
B. 0. Ball. The directors elected the
follow ing officers: J. L. B. G raham ,

jm

1

NE WS

TIT
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ill

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to Unique Correspondent Service in
Wisconsin and Neighboring States

president; F ra n k J. Skeva, vice p resi­
dent; L. Roy T rout, executive vice
president; B. O. Ball, cashier; and H.
G. P ierson, a ssistan t cashier.

Elects Officers
At th e board of directors m eeting
of th e L uV erne b ank th e directors
w ere all reelected. J. A. N elson w as
nam ed cashier w ith D orothy Mae
L indebak as a ssista n t cashier and
D orothy Sw anson, teller.
Officers of th e b ank are president,
J. A. M arty; vice-president, L aw rence
Miller. The directors are G lenn Buchanna, H. T. Huff, H. P. Sorensen
and A. A. Shipull.

New Board Member
A t a recen t m eeting of the directors
of Avoca S tate Bank, Clarence Rock
w as nam ed to fill a vacancy on th e
board. He succeeds th e late H en ry
T. Rock. Clarence is associated here
w ith his b ro th e r in th e Rock H ard ­
w are store.

Takes Bank Job
C.
L ester A nderson, deputy coun­
ty au d ito r for tw elve and a half years,
has resigned his position at th e c o u rt­
house to accept an offer to become
teller at the H oughton State bank.

New Bank Examiner
J. H. R edm an of Indianola has been
appointed as a ssistan t b ank exam iner
of th e state d ep artm en t of banking.
Mr. R edm an had seven y ears banking
experience a t Correctionville.

New Assistant
The First Wisconsin serves as Milwaukee depository for more than
85 per cent of all the banks in Wisconsin and Upper Michigan.
This unparalleled “coverage” is the master key to prompt collection
of checks and drafts throughout this area. Service keyed to th e s e
times!

B A N K S and B A N K E R S D I V I S I O N
George T. Campbell
Richard J. Lawless
Donald A. Harper

Member o f the
Federal Deposit
Insurance Corporation'

Vice President
Assistant Vice-President
Assistant Vice-President

FIRST WISCONSIN
NATIONAL BANK

N orthw estern B anker


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Federal Reserve Bank of St. Louis

O F

M ILW A U K EE

March 19b3

George Cowles, deputy tre a su re r of
F ay ette county for the p ast tw o years,
has tendered his resignition from th a t
position to accept th e post of a ssist­
a n t cashier a t th e C itizens’ State B ank
in Postville.

State Bank of Worthington
At th e ann u al m eeting of th e State
B ank of W orthington, H erm an B urger
w as elected president, Jo h n L. K ram er,
the vice-president, George Feltes, N.
J. Feltes, all of W orthington, and
Joseph D rees of F arley. A four per
cent dividend w as paid last year.

Change in Personnel
Mrs. E lm er E sbeck has resigned h e r
position at th e L andm ands N ational
bank, K im ballton, and expects to leave

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1 ' ODAY, as in years B. C., progressive business men are always looking for
a better way to handle each job.

The constant application of this progressive

spirit has built the Bankers Trust Company into one of Iowa’s largest banks—
a bank where correspondent accounts are especially welcome.

..


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Federal Reserve Bank of St. Louis

BANKERS T R U S T
C O M PA N Y t;,:ï des moines

FQPAICTORY
UNITI-D
STATFS

W AR

mONDS j
AND

STA M PS I

56

— •
S atu rd ay for De Sota, K ansas, to join
h e r husband.
Miss H elen T hor w ill succeed Mrs.
E sbeck a t th e bank. She is a d au g h ­
te r of Mr. and Mrs. E rik T hor, and
has had som e experience, w orking in
a b an k a t Taft, California.

New Assistant
L eonard M. P edersen has accepted
a position as a ssista n t cashier in th e
F irs t T ru st & Savings b an k of AVheatland.
Mr. P edersen is tak in g over th e
duties of Lloyd E ndorf, w ho w ill short-

IO W A

NEWS

•-

ly be called into Uncle Sam ’s arm ed
services.
Mr. P edersen is th o ro u g h ly fam iliar
w ith all phases of banking, as he
served four y ears as a ssistan t cashier
of th e Calam us ban k several years
ago, and w en t from th ere to th e T or­
onto Savings b ank w here he served as
cashier u n til th e closing of th e bank.

R. M. Harben Promoted
R. M. H arben has been prom oted to
t h e ' position of vice p resident and
a ssistan t general m anager of th e Sioux
City Stock Y ards Com pany at Sioux

A Bigger Job

City, Iowa. He has been connected
w ith th is organization for m any years.
At the sam e tim e, R ay Rodine w as
m ade assista n t secretary and treasu rer.

Pass Two Million Mark
D uring th e p ast m onth the N evada
N ational B ank has joined th e $2,000,000 list of Iow a bankers. Total
resources have recently passed th e
two m illion m ark, and it is anticipated
the deposits w ill considerably exceed
th a t am ount, before A pril 1st.
Corn Loans are $225,000.00. Local
loas, $575,000 and bonds $700,000.
T he ban k also passed th e $100 m a rk
in p aym ent of com m on stock dividends
th is last Ja n u a ry 1st. Such paym ent
being on th e original sale price of
$140 a t the beginning of th e b an k in
1934.
W hile $75,000 of the b ank earnings
have been credited up to su rp lu s and
reserves.
The b a n k ’s sale of Series E F and G
bonds du rin g 1942 exceeded $300,000
and still its deposits gained over a like
am ount.

County Bankers Meeting

trade area and y o u ca n d ep en d upon the m ost

At the m eeting of th e Pocahontas
County B ankers A ssociation, all p res­
en t officers w ere reelected—H. V. Reid
of Palm er, president, A lfred Miller,
Pocahontas, vice president, and E d
Carmody, Pocahontas, sec.-treas.
M ain topics of discussion w ere the
ratio n coupon banking, th e 1943 w ar
savings bond set-up, w hich w as ex­
plained by C harles E. W atts, cashier
Com m ercial S tate B ank of Pocahontas
and county ch airm an on sale of bonds.

exactin g correspondent service at the First N ational

Vacancy Filled

Bank in Sioux City.

Lloyd L. L efebure had been elected
director of th e F a irfa x S tate Savings
B ank to fill th e vacancy caused by the
death of W esley J. Sedlacek.

In w ar time, b u sin ess lead ers of the com m unity
call on the banker for greater service.

His con n ec­

tions in important centers help him to m eet these in­
creasin g dem an d s.
For m a n y y ea rs, w e h a v e served the Sioux City

A. G. Sam, President
J. P. Hainer, \ic e President
J. R. Graning, Assistant Cashier
Fritz Fritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier
J. T. Grant, Assistant Cashier
AV. F. Cook, Auditor
Member Federal Deposit Insurance Corporation

IN SIO U X CITY
N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 19^3

Tipton
A t the an n u al m eeting of the T ipton
State B ank J. W. Edge w as reelected
president, and R. D. Sw artzlender,
cashier.
The year 1942 bro u g h t an increase
in deposits of $640,500, an increase in
bills receivable of $180,000, and an in ­
crease in g overnm ent bond holdings
of $373,000.
The officers rep o rt v ery satisfactory
earnings for th e p ast year w ith a good
local dem and for cattle and real estate
loans at th e p resen t tim e. T his bank
sold $336,000 w o rth of w ar bonds to
its custom ers d u rin g the p ast year
and anticipates selling $1,000,000 w orth
of such bonds du rin g th e c u rre n t year.

57

IO W A G R O U P M E E T IN G S — A t th e le f t is M. W. Ellis, Io w a s u p e rin te n d e n t o f b a n k in g ; John Langum, c h ie f
e co n o m ist o f th e C hicago F e d e ra l R e se rv e, a p p e a rs in th e c e n te r; a n d B. A. Gronstal, p re s id e n t of th e Io w a B a n k e rs
A s so c ia tio n . M r. E llis a n d M r. G ro n s ta l a tte n d e d b o th F e b r u a ry m e e tin g s— G roup One in S ioux C ity a n d G roup
E le v e n a t B u rlin g to n . A t th e rig h t, b y th e flag, is R. J. McCleary, v ic e p re s id e n t a n d c a s h ie r o f th e S e c u rity S ta te
B a n k , K e o k u k , n e w c h a irm a n o f G roup E le v e n ; a n d L. N. Frescoln, e x e c u tiv e v ice p re s id e n t a n d c a s h ie r of th e F i r s t
N a tio n a l B a n k in F a irfie ld , new s e c re ta ry o f G roup E le v en .

Two Iowa Groups Convene
Group One in Sioux City
T H E a n n u a l m eeting of Group One
of th e Iow a B an k ers A ssociation a t
Sioux City, on F e b ru a ry 12—L incoln’s
b irth d a y —w as an excellent m eeting
w ith an atten d an ce even g re a te r th a n
anticipated.
R eg istratio n w as ap ­
p ro xim ately 500. C redit for th e suc­
cess of th e m eeting goes to th e effi­
cient w o rk of th e convention com ­
m ittees of w hich Carl F redricksen,
p resid en t of th e Live Stock N ational
B ank, w as ch airm an. W hile th is a t­
tendance figure w as slig h tly u n d er
th a t of last year, it w as a fine tu rn out,
considering th e cold w e a th e r and
tra n sp o rta tio n difficulties of today.

Group Eleven in Burlinston

W ith A. J. B ertelsen , cashier of th e
M orningside Savings B ank presiding,
th e G roup One program m oved along
v ery satisfactorily. It began at the
noon luncheon and concluded in tim e
for th e social h o u r w hich preceded
th e big banquet. The b an quet speaker
w as L ieu ten an t Clarence Campbell, a
physical in stru c to r at th e Sioux City

T here w as no m orning session at
Sioux City, b u t th e Ju nior B an kers
held a m eeting and an A dding M achine
Contest. M ildred Barr of th e Rock
Valley B ank a t Rock V alley w alked
off w ith first honors in the contest.

A featu re of the Sioux City m eeting
w as a reso lu tio n en dorsing R. R. Brubaeher, p re sid e n t of th e Toy N ational
Bank, Sioux City, for th e presidency
of the Iow a B an k ers A ssociation. Mr.
B ru b a c h e r’s candidacy had p reviously
been en dorsed by th e Sioux City
Clearing H ouse A ssociation. R alph
is w idely know n, and has alw ays been
an active w o rk er in state association
affairs.
George W ilson, vice p resid en t of th e
C herokee S tate B ank, w as elected
p resid en t of G roup One and H enry
V isser, cash ier of th e F irs t N ational
B ank a t H aw arden, w as nam ed secre­
tary. T h eir election w as unanim ous.

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Federal Reserve Bank of St. Louis

A ir Base. Lt. Cam pbell has an o ut­
standing perso n ality an d a so u th ern
accent w hich w as v ery pleasing to th e
crowd. He w as an out fielder on th e
C leveland Indians baseball team an d is
a close frien d of Iow a’s fam ous “Bobby
F eller”. In fact he w as one of th e
sm all group in attendance a t F e lle r’s
recen t w edding in W aukegan, Illinois.

P resid en t B. A. G ronstal of th e State
A ssociation w as one of th e prelim in ary
speakers a t th e Group One m eeting.
H e m ade a special point on P roduction
C redit A ssociation Com petition. He
said “The P. C. A. is in th e loan field
not to provide credit to b o rrow ers w ho
can ’t get loans from banks, b u t to
steal any or all loans from banks and
such activ ity is financed by g overn­
m ent funds and th e ir fieldmen operate
on “C” gas ratio n cards.”

Iow a B anking S uperintendent, M el­
vin E llis, spoke briefly, em phasizing
R. R. B R U B A C H E R
I. B . A . P r e sid e n tia l C andidate

the value of service charges. He said
th a t m ore th a n 20 Iow a counties have
adopted th e Iow a u n iform service
N orthw estern Banker

March 19b3

58

• IOWA
charge in recen t
th a t about all th e
these days in th e
from R iskless “B”
charges and from
m en t bonds.

m onths. He said
b an k s can obtain
w ay of incom e is
incom e or service
“risk le ss” g o v ern ­

“T he alp h ab et m an ,” W. G. C. Bagley, Iow a’s congenial state tre a su re r,
w as on h and a t Sioux City, an d ex­
tended greetin g s d u rin g th e program
to his m any b a n k e r friends.
b an k er
from Storm Lake, Iowa, w as a t th e
George

Schaller, v e te ra n

NEWS

•

Sioux City m eeting. As the ex-presi­
den t of th e Chicago F ederal R eserve
B ank, George is once m ore back in the
h arn ess as a co untry banker, since his
son H a rry is in th e arm ed services.
An in terestin g sk it on ratio n b an k ­
ing w as staged by th e Sioux City
A. I. B. u n d er the supervision of
C arleton Van D yke, a ssistan t cashier
of th e Toy N ational Bank.
T here w as an excellent attendance
of w om en at th e Sioux City m eeting.
More th an 100 w ere th ere un d er th e

supervision of Mrs. Carl Fredricksen, w ho headed th e ladies e n te rta in ­
m ent com m ittee.
The m ajo rity of
them stayed for th e big b an q u et and
enjoyed th e excellent e n te rta in m e n t
provided by a show troop from Omaha.
F. F. P atton, executive m anager for
th e V ictory F u n d Com m ittee of the
Seventh F ed eral R eserve D istrict
m ade an excellent talk on “Federal
F in ancing.” Speaking plainly, he said
“B anks m u st e ith er sell w a r bonds
or buy them . You are on th e spot. W e
m u st even urge people to take m oney
out of banks to buy bonds w hich is
certainly a rev ersal of all our bank
education and tra in in g .”
A rthur D onhow e, vice president,
C entral N ational B ank and T ru st
Company, Des Moines, and last y e a r’s
presid en t of th e State A ssociation, w as
a t th e Sioux City m eeting in speech­
less condition. He w as suffering from
a th ro a t condition and hoarseness, p re ­
venting m ore th a n a w hisper, b u t he
enjoyed th e m eeting nevertheless.

In his address of response, H arold
Scott, p resid en t of th e Sibley State
B ank said “W e w an t to know tw o
things, w h at is th e w ar going to do
to banks, and secondly w h at are banks
going to do for th e w ar,” These tw o
problem s w ere p aram o u n t a t the
Group One m eeting.
Production Lines are Battle Lines

W A R -T IM E B A N K I N G S E R V IC E
— G e a r e d to th e R e q u ir e m e n ts
o f G o v e r n m e n t, I n d u s tr y
an d C o rre sp o n d e n t B anks
in a W a r E c o n o m y

Bankers T rust Company
NEW YO RK

In q u irin g b an k ers w ho w anted a
lapel b u tto n ju s t like th e beautiful
red and green b u tto n w orn by A. G.
Sam, presid en t of th e F irs t N ational
B ank of Sioux City, found th ey could
easily obtain a sim ilar button, th e
cost only $1, and the object N orw egian
W ar Relief. A. G. w ho is alw ays a
leader in com m unity and w ar relief
w ork has raised m any dollars th ro u g h
the sale of these buttons. Inciden­
tally, A. G. is again th is year in charge
of th e “large g ifts” section of th e
Sioux City Red Cross Drive.
Am ong th e out of state guests at
th e Sioux City m eeting w as Ralph
W atson, presid en t of th e N orthw est
S ecurity N ational B ank of Sioux Falls.
R alph has a wide acquaintance not
only th ro u g h o u t South D akota b u t in
adjoining states and as p resid en t of
South D akota’s largest bank, he gets
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

M em b er o f th e F ed eral D e p o sit In su ra n c e C o rp o ra tio n

F. E. D A V E N P O R T & C O .
OMAHA

N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 1943

59

.

IO WA

NEWS

.

aro u n d w h e re v e r b an k ers m eet. In ­
cidentally, his b an k in g group is one
of th e o u tstan d in g groups in th e U n it­
ed States, p a rtic u la rly from th e
stan d p o in t of earnings. D eposits a t
th e first of th e y e a r w ere w ell in ex­
cess of $21,000,000.

b an k ers celebrate th e an n u al affair.
One person w as absent, how ever.
B reaking a 28-year attendance record
at G roup E leven m eetings, F rank W ar­
ner, secretary of th e Iow a B ankers As­
sociation, w as busy w ith legislative
m a tte rs in Des Moines.

H erb ert V. P rochn ow , a ssista n t vice
p resid en t of th e F irs t N ational B ank,
Chicago, m ade a splendid ta lk on
“P roblem s of W ar Tim e B an k in g ”.
H e u rg ed b a n k e rs to tra in th e ir m em ­
bers for one or m ore e x tra jobs to
take care of th e perso n n el problem .
Mr. P rochnow said “In th e m orning,
no one comes in to borrow , and in th e
afternoon, th e ru sh falls off a little ”.
He advised b an k s to build up th e ir
reserv es for th e fu tu re, even to th e
ex ten t of reducing dividends.

The luncheon on M onday w as fol­
lowed by th e usual program , w ith Lee
H u ston, G roup chairm an, as to ast­
m aster. B. A. G ronstal, p resid en t of
th e Council Bluffs Savings Bank, and
p resid en t of th e Iowa B ankers Asso­
ciation, headed th e b rillia n t a rra y of
speakers. Speaking of PCA com peti­

tion, Mr. G ronstal said th a t “it is an
agency setup and operated now for the
sole purpose of stealing aw ay from
th e banks in th e ag ricu ltu ral com­
m unities all th e good, sh o rt and m e­
dium te rm loans we co u n try banks
have.” Our G overnm ent is spending
our ta x m oney to finance such opera­
tions, he said, and urged his listeners
to w rite or w ire th e ir rep resen tativ es
in W ashington to p u t PCA on a selfsupporting basis, or close up shop.
M. W . E llis, Iowa su p erin ten d en t of
banking, paid trib u te to R alph B unce
and his d ep artm en t exam iners for the

A n o th er Sioux F alls v isito r a t Sioux
City w as Tom H ayter, vice president,
F irs t N ational B ank of Sioux Falls.
Tom has m ade quite a stu d y of im ­
prov ed b a n k bookkeeping m ethods
and is glad to tell o th er b an k s of some
of th e sh o rt cuts th a t his b a n k has
effected.
In his b rief re p o rt in th e G roup One
m eeting, Secretary F ran k W arner,
w arn ed b an k s n o t to over p u rch ase on
ratio n form s. H e review ed som e of
th e b an k in g legislation w hich is now
up for consideration by th e Iow a
legislature, an d p resided over an in ­
terestin g discussion of P. C. A.
activities.
T he concluding speak er on th is topic
w as E. W . R ossiter, p resid en t of th e
B ank of H artin g to n , N ebraska, w ho
has been v ery active in th e w o rk of
m iddle w e ste rn b a n k e rs in fighting
P. C. A. com petition.

Group Eleven in
Burlington
J. McCLEARY, vice p resid en t and
cashier of th e Security S tate B ank,
•K eokuk, w as nam ed ch airm an of
G roup E leven of th e Iow a B ankers
A ssociation, a t th e a n n u a l m eeting
held in B u rlin g to n on F e b ru a ry 22.
R. N. F rescoln, vice p resid en t and
cash ier of th e F irs t N ational B ank in
Fairfield, w as elected se cretary and
tre a su re r. A ttendance at th e m eeting
w as abo u t th e sam e as last y ear, to ta l­
ling 200. R ep resen tativ es from Chi­
cago, N ew York, St. Louis, K ansas
City, an d Des M oines b an k s w ere on
h an d as u su al to help G roup E leven

R

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

S T O C K

Y A R D S ,

C H I C A G O

N orthw estern B anker

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

March 19b3

60

—•
fine job th ey are doing, and introduced
four of th e exam iners w ho w ere p re s­
ent. A sked for som e “tim ely tip s”,
Mr. E llis suggested th e adoption of th e
Iow a u n ifo rm schedule of account
analysis,—get read y to change over to
a p a r basis n e x t J u ly 1,—m ake ade­
quate service ch arges—keep invested
in U nited States securities, staggering
m a tu rity dates from one to tw elve
y ears—em ploy m ore wom en.
Chairm an H u ston said th a t th e first

m eeting of G roup E leven w as held in
1897, and has been held an n u ally on

IOWA

NEWS

•-

W ash in g to n ’s B irthday ever since.
Seven m en w ere at th a t first m eeting
so m any y ears ago. One of those m en
w as L ym an E dw ards, and Mr. E d­
w ards also attended th is m ost recent
m eeting in B urlington.
One of th e biggest problem s of w ar,
according to John L angum , chief
econom ist of th e F ed eral R eserve
B ank, Chicago, is th e problem of
finance—how to raise m oney to pay
for it. T hree th in g s m ust be accom ­
plished—inflation m u st be checked, an
ord erly and flexible m oney m ark et

★

★

A WEALTH OF SERVICE

m u st be m aintained, and th e A m erican
system of free en terp rise m u st be
preserved. Inflation is still a real
danger to th e country, th e speaker
said. Mr. L angum said four things
control inflation—m ore taxes, control
of w ages and farm prices, the su p p o rt
of price controls and rationing, and an
increase of th e public debt outside of
th e banking system .
Am ong resolutions adopted w ere
those in sisting on u n it ban k in g only—
p ro test ag ain st th e revival of th e
RACC and all o th er G overnm ent
agencies, w ith S tate and N ational as­
sociation u rged to fight such agencies
—banks to m ain tain assets in strong,
liquid condition—and lend all assist­
ance to sale of W ar Bonds and Stam ps.
W ages are n ot frozen to th e ex ten t
m any em ployers believe, and can be
thaw ed, according to H ow ard Chenhall, inspector in charge of th e Iowa
W age and H our Office, a sp eaker to
th e Group E leven m eeting. Increases
m ay be m ade in keeping w ith the
h ig h er cost of living, and at p resen t
th is increase can ru n aro u n d 15 per
cent. F u rth e r increases m ay be p er­
m issible as cost of living tends to rise,
as it probably will. B anks having
seven em ployees or less are not af­
fected by th e W ages and H o u r Law,
b u t m any questions w ere asked Mr.
C henhall from b an k ers in th e audi­
ence w hose personnel w as close to the
border-line num ber. T he sp eaker sug­
gested th a t even though ban k s w ere
not th in k in g of m aking any g reat
am ount of w age increase a t th e p res­
en t tim e, it w ould be a good idea to
m ake application for perm ission to
m ake such raises, should th e occasion
arise.

A N D INFORM ATION
FOR CORRESPONDENTS

D

URING its more than fifty years of
continued service, The Northern
Trust Company has accumulated a wide
variety of facts, figures, and experience.
Our correspondents draw freely upon
this reservoir of helpful information.
For example, regarding "V” loans, ra­
tion banking, commodity loans, and
state, municipal and U. S. Government
bonds, data are available for your use.

A fter dipping into th e gasoline
ratio n book to trav el to th e m eeting,
and reading in th e pap er th a t m orning
all about th e point system of ra tio n ­
ing food, Ed E b ersole bobs up w ith a
ratio n book outlining th e program for
the Group E leven m eeting.
The
coupons called for a liberal am ount
of every th in g —even th e “A”, w hich
referred to th a t quiet h o u r ju s t before
the storm know n as tea-tim e. One
th in g th a t w ill never be ratio n ed is the
B u rlington b ran d of h o sp itality —th a t
continues in full m easure y e a r afte r
year.

THE NORTHERN
TRUST COMPANY
50 S O U T H LA SALLE STREET, C H IC A G O

M em ber F ederal D eposit Insurance Corporation

★
N orth w estern B anker

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Federal Reserve Bank of St. Louis

March 19b3

Position desired by experienced bank
man—age 43, married and one child. Am
a Catholic, have college education and ex­
perience in both country and city hanks.
Write E. C. O., c/o Northwestern Banker.

61

IO W A

N EW S

FROM HERE AND THERE
By J . A. Sarazen, A sso ciate Editor

T

H E B u rlington Savings B ank had

an increase in deposits d u rin g 1942
of $691,000. Loans and D iscounts in
th is period decreased $619,377.
A. A. Jackson, fo rm erly a ssista n t

cashier, W ayland S tate Bank, recently
w as m ade cashier of th e F a rm e rs Sav­
ings B ank, K alona. F erd E. Skola,
presid en t, rep o rts p ay m en t in full of
depositors segregated T ru s t Certifi­
cates.
In te re s t ra te s paid on deposits in
B u rlington b an k s since S eptem ber 1,
1942, is 1 p er cent on savings and cer­
tificates of deposit.
New service
charges in stitu te d h ere J a n u a ry 1, is
a base charge of 354 p e r m onth, 3<^ on
each check w ritte n or each out-of-town
check deposited. C redit to an account
is 10^ p e r h u n d re d on th e m inim um
balance d u rin g th e m onth. B an k ers
here are e n th u siastic over th e ir new
plan and p re fe r to use th e m inim um
balance in stead of th e average balance.
A noticeable increase in deposits
w as m ade by th e N ational B ank of
B u rlin gton d u rin g 1942. D eposits rose
from $4,719,588 to $5,974,386, or an in ­
crease of $1,154,800. L oans and dis­
counts decreased $277,370. In v e stm e n t
in go v ern m en t bonds in creased m ore
th a n $1,100,000.
Service charges as suggested by th e
Iow a D ep artm en t of B anking w ere
adopted by th e F a rm e rs Savings B ank,
W ever, last October. Service rev en u e
from th is source h as tripled, according
to H a rry E dw ards, cashier, w ith p ra c ­
tically no com plaint from custom ers.
T he b an k pays 1% p er cen t in te re st on
deposits.
Io w a’s dean of b an k ers, Jam es G.
W h itn ey, p resid en t of th e W h itn ey
Loan an d T ru s t Com pany, A tlantic,
recen tly celebrated his 79th b irth d ay .
He is on th e job every day an d does
not w ear glasses. On A pril 15 he w ill
have ro u n d ed out 65 y ears of ban k in g
on th e sam e corner.
reduced in te re st
rates th e first of th e y e a r from 2 per
cent to 1 p e r cent.
Red

Oak banks


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Federal Reserve Bank of St. Louis

D uring th e p ast year, deposits a t
th e State C entral Savings Bank,
K eokuk, w en t from $2,905,283 to $4,214,900, or an increase of $1,309,617.
A t th e Secu rity State Bank, K eokuk,
all p re ferred stock w as recently paid
off in full. O ther real estate has been
p ractically elim inated and du rin g th e
last five y ears fu rn itu re and fixtures
have been depreciated $8,600.

T he
N ew York T rust
Company
C apital Funds . $37,500,000

IO O BROADW AY
MADISON AVENUE
AND 40TH STREET
TEN
ROCKEFELLER
PLAZA

T he Earlham Savings B ank moved
up $25,000 from undivided profits to
th e surplus. T he capital is now $25,000, su rp lu s $50,000, and undivided
profits of $15,000.
T he A nita State B ank pays 2 per
cent in te re st to old custom ers and 1
p er cent to new custom ers.
D eposits at th e A tlantic State Bank
increased $1,000,000 du rin g th e p ast
year. T he b an k has been paying 1
p er cent in te re st on deposits for some
tim e.
T he M enlo S avin gs B ank and its
Casey office now m ake a service charge
of 2c on each check w ritte n by th e
custom er. No charge is m ade to cus­
to m ers on out-of-town check deposited.
D eposits here are over $1,200,000.
W hile th e checking account service
charges as applied by th e E arlham
S avings B ank are n ot new, n ev er­
th eless we w ill review th e plan here
as it is th e w rite r’s opinion th a t if
balances continue to pile up in banks
and loan volum e continues to decline,
the plan, or a sim ilar plan, w ill be­
come u n iv ersally popular.
A CHARGE ON A LL CHECKING
ACCOUNTS OF 50c P E R MONTH
W IL L ALLOW A CUSTOMER TO
W R IT E 15 CHECKS. A CHARGE OF
$1.00 P E R MONTH W IL L ALLOW 30
CHECKS.
ADDITIONAL CHECKS
A R E 3c EACH. T here is no charge on
inactive accounts and th e b an k offers
an a lte rn a te plan of 5c on each check
w ritte n . C ustom ers pay $1.00 in ad ­
vance for a pad of 20 checks.

Member of the Federal Deposit Insurance Corporation

TUV

I l l Ei

P u b l ic
N a t io n a l
B ank
AND TRUST COMPANY
OF NEW YORK
Service—Maintaining an
intimate, personalized corre­
spondent bank service.
Experience—Officials with
years of service in this field,
assuring a knowledge of re­
quirements and valuable as­
sistance.
Policy—To cooperate with
out-of-towm banks rather ti%n
compete for business which is
rightfully theirs.

ESTABLISHED 1908
MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION

62

• IO WA
The F ort M adison banks adopted th e
Iow a un ifo rm schedule of service
charges last Septem ber. One p er cent
in te re st is paid on deposits here.
The Lee County Savings Bank, F ort
M adison, cleaned up all o th e r real
estate, re tire d balance of p re fe rred last
year, paid a 5 p er cent dividend and
added to reserves.
R aym ond V. Sar, S henandoah a tto r­
ney, h as been elected to th e board of
directo rs of th e F irs t N ational B ank,
Shenandoah, and succeeds G. J. Liljedahl, deceased. T he b an k now has

NEWS

•

capital, su rp lu s and undivided profits
of $50,000 each.
In te re st rates w ere reduced at
Shenandoah F e b ru a ry 1, from 1 y2 per
cent to 1 p er cent.

The R andolph State B ank m akes a
service charge of 50ç!- p er m o n th on all
checking accounts except a few b u si­
ness accounts.

The M ineola State Bank, like several
o th er banks in this te rrito ry , m akes a
F.
J. Iw ert has been elected cashier service charge of ju st 24 p er check on
of th e M alvern T ru st and Savings each check w ritte n by th e custom er.
Bank. Before com ing here, Mr. Iw ert Some of th e banks also m ake a charge
w as cashier of th e Security S tate Bank, on out-of-town checks deposited.
Shell Rock, Iowa.
Oakland banks pay 1 per cent in te r­
Page C ounty banks adopted th e Iowa
est on savings accounts, 6 m onths
schedule of service charges F eb ru ary
CD’s and 1V2 p er cent on 12 m o n th
1, on a modified basis.
CD’s.
A t th e A voca State Bank, R ichard
Coe w as advanced from teller to as­
sista n t cashier.
The A voca banks still pay 2 and 2%
p er cent in te re st on deposits.

Medals for Bankers
O u r arm ed forces rew ard m eritorious service
w ith decorations.

Bank Management
Company Organized
A nnouncem ent has been m ade of
the form ation of M arshall Corns and
Company, m anagem ent engineers and
consultants.
In co rporated u n d er Illinois law, th e
com pany is c h artered to act in ad-

On the w ar production fro n t A rm y and N avy
“ E ’s” are given for excellence in perform ance.
On the banking front, w hile no decorations are
given, the cooperation of bankers in the w ar
effort has been well recognized.
W e are glad to cooperate w ith you in any of
your problem s.

M A R SH A L L CORNS

visory capacity to banks and b an k ers
on m anagem ent problem s, and to fu r­
nish or install A ccounting P rocedures,
A udit System s and Controls, Cost
System s, In v estm en t P rogram s, M ar­
k etin g Surveys, and O rganization A n­
alysis to banks, bankers, and th e ir
custom ers.
N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 194-3

63

•
M arshall Corns, th e president, w as
educated a t Loyola A cadem y, Chicago,
and St. M ary’s College, K ansas. The
early y ears of his b an k in g career
w ere sp en t w ith several sm all b an k s
in Illinois, and p rio r to form ing his
ow n com pany w as for a n u m b er of
y ears one of th e o p eratin g officers of
the City N ational B ank and T ru st
Com pany, of Chicago. Mr. Corns has
been a fre q u e n t c o n trib u to r to ban k in g
publications on m anag em en t and
econom ic subjects, and is th e a u th o r
of “B etter B ank M anagem ent”. He is
a m em ber of th e A cadem y of P olitical
Science.

IO W A

NEWS

•

said, “Scold th e b u reau crats and brass
h ats as we do, we need them . W ith ­
out b u reau crats and brass hats, we
cannot w in a total w ar.”

clerk at a sale recently w here B ert
Brock sold some of his pureb red Duroc
hogs, and w ith th ree-fourths of th e
sale, or $6,696, Mr. B roek purchased
w ar bonds. H is son, B arney Broek, is
E. C. F ish bau gh, president, Security
now in the service, and th e fa th e r
T ru st & Savings B ank of S henan­ told those atten d in g the sale th a t he
doah, in a recen t le tte r to us said, “I was going to give his son all the help
g reatly enjoy y o u r editorial pages— he could by buying w ar bonds, and
th ey are th o u g h t provoking and I have th is bro u g h t a rousing cheer from the
form ed a h ab it of passing them along filled pavilion.
to friends.”
D uring th e sale th ere w ere 66 sows
sold to buyers from 7 states, for an
S.
C. Aue, cashier of th e F irs t N a­average price of $133.25, the top sow
tional B ank of Sioux Center, Iowa, w as selling for $200.

The d irecto rs of th e com pany, in
addition to Mr. Corns, are: H. E. Cot­
ter, p resid en t H. E. C otter and Com­
pany; F ra n k lin K eller, p resid en t D.
F. K eller P rin tin g Com pany, and G.
Rody Scheib, se c re ta ry -tre a su re r of
Crow n Steel Sales Com pany, an d di­
recto r of In d u stria l M etal F ab ricato rs,
Inc.
The p rin cip al office of th e com pany
w ill be located a t 39 South LaSalle
Street, Chicago, Illinois.

N EW S A N D VIEW S
(C ontinued from page 14)
is an y w ay th a t we can be helpful in
form ing th is o rganization we w ould be
glad to do so. I am v ery m uch opposed
to g o v ern m en t loaning agencies as
th e re is p len ty of m oney in p riv ate
ow ned in stitu tio n s th a t is begging to
be loaned on desirable p ap er.”
W. J. R yan, w ho last m onth w as

elected a ssista n t cashier of th e Stock
Y ards N ational B ank of South St. Paul,
M innesota, sta rte d to w o rk in th e b an k
in S eptem ber, 1941, and previous to
th a t tim e, he h ad been w ith th e F irs t
N ational B ank of Rice Lake, W iscon­
sin, for about tw o y ears and w ith th e
B ank of New R ichm ond, W isconsin,
about th re e years. H is fa th e r is th e
executive officer at th e New R ichm ond
bank.
Jam es F. B rynes, econom ic stabil­

ization director, in a recen t speech,

For three-quarters of a cen­
tury—in war and peace—in
good times and bad—this
bank has served farmers,
business men and bankers
throughout the middle west.
During three wars and
five major depressions we

have been in close touch
with both agriculture and
industry in this territory.
This experience, which our
hundreds of correspondent
banks have found of value,
is offered to you without
obligation.

LIVE ST O C K
*A f f / i f i j t a / B A N K
ESTABLISHED 1868

Banks Sold or Bought!

U N IO N

quietly, quickly and in a personal manner

STOCK

YARDS

JAY A. WELCH
BANK BROKER
Haddam, Kansas
“35 Years Practical Banking Experience”

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Federal Reserve Bank of St. Louis

fj/ A

% 'e a /i

M e m b e r F e d e ra l D e p o sit Insu ran ce C orporation

N orthw estern B anker

March 19Í3

64

IOWA
C. O. Strom , cashier of th e F irs t N a­
tional B ank of Le Roy, M innesota, re ­
ports a v ery excellent y e a r for his
institu tio n , and in a recen t le tte r to
th e N or thwestern B an ke r , he said, “I
th in k p erh ap s you w ould like to know
how th in g s are shaping up at Le Roy,
so I am sending you our last s ta te ­
m ent of D ecem ber 31, 1942, w hich
show s deposits of $586,156 and capital
of $45,000.
“We re-elected all officers at th e a n ­
nual m eeting—declared 8% dividend—
and our deposits show an increase of
about $140,000 for th e p ast year. W e
increased su rp lu s and charged off on
th e b an k building and fixtures in ac­
cordance w ith custom . W e feel th a t
we have had a successful y e a r.”
E rn est O sm undson, p resid en t of th e

Peoples S tate B ank of Thom pson,
Iowa, believes th a t his b an k is topping
th e list in th e H aw keye state in th e
sale of w a r bonds and he is certain ly
doing a very fine job of it as indicated
in a recen t le tte r to th e N or th w es t ­
ern B an ke r . H ere is w h a t Mr. O sm und­
son said, “I have enjoyed th e N orth ­
w e s t e r n B anker for a good n u m b er of

f 1Í

NEWS

years, and have alw ays enjoyed Joe
Sarazen’s brief visits w ith us.
“It is w ith a g reat deal of in terest
th a t I read H. G. M orrison’s (cashier
of the P eterson S tate Bank, Peterson,
Iow a) le tte r com paring his record w ith
th a t of Sam Torgeson, cashier of the
F arm e rs and M erchants State Bank,
Lake Mills, Iowa, in selling w ar bonds.
I notice th a t from May 1, 1941, to J a n ­
u a ry 1, 1943, th e P eterso n b an k sold
to th e public $193,925 (m atu rity value)
of w ar bonds, and th a t th e ir deposits
of Ju n e 30, 1942, w ere $465,000, th e
percentage of w ar bonds sold d uring
th e 20 m onths w ere 41.7% (m atu rity
value) of th e ir Ju n e 30, 1942, deposits.
F u rth e r on in th e item , Mr. P eterson
rem ark s th a t ‘I th in k you w ill find we
are ju s t about first in th e State of
Iow a.’
“The deposits of m y b ank on J a n ­
u a ry 1, 1942, w ere $288,205 on Ju n e
30, 1942, th ey w ere $312,321. F rom
J a n u a ry 1, 1942, to D ecem ber 31, 1942,
we sold to our custom ers w ar bonds
hav in g th e follow ing m a tu rity values,
$152,150 Series E —$15,900 Series F and
$100 of Series G, m aking a to tal of
$168,150 sales d uring the year, w hich

J

%

I

i\

4

f %J t I T

:

Above, Our War Bond Lobby Display

NATIONAL

FIFTH AVENUE
SOUTH-226-

N orthw estern B anker

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Federal Reserve Bank of St. Louis

BANK

t y f C & n tc n , ¿Jc/M Tct

C LINTON, IOWA

March 1943

—

Member Federal Reserve
System and Federal Deposit
Insurance Corporation

am ount to approxim ately 53.9% of our
Ju n e 30, 1942, deposits. You w ill note
I am using m a tu rity values b u t I do
believe th a t cost values should be used.
The bonds th a t our custom ers bought
du rin g 1942 cost $125,978.50, w hich
is about 43.5% of our deposits on J a n ­
u a ry 1, 1942.
“I don’t th in k th a t I sold enough
bonds in 1942, and I sincerely hope
th a t a n um ber of ban k s in Iow a w ill
rep o rt b e tte r sales th a n m ine. To stim ­
ulate th e sale of bonds du rin g 1943, and
to save some m oney, we are n ot ac­
cepting tim e deposits, and are sug­
gesting th a t holders of our tim e certifi­
cates invest th e ir m oney in w ar bonds,
as th e ir certificates becom e due.”
The Land O' L akes News p resen ts 10
points w hich th ey say “cost so little
and are w orth so m uch,” and th ey are
so stim u latin g and helpful th a t w e are
p resen tin g th em to you and here they
are—
1. You cannot bring about p rosperity
by d iscouraging thrift.
2. You cannot stren gth en the w eak
by w eak en in g the strong.
3. You can n ot help sm all m en by
tearing dow n b ig m en.
4. You cannot help the poor by de­
stro y in g the rich.
5. You cannot lift the w age-earner
by p ullin g dow n the w age-payer.
6. You can n ot keep out of trouble by
sp en din g m ore than your incom e.
7. You cannot fu rth er th e brother­
hood of m an by in citin g class hatred.
8. You cannot establish sound secu r­
ity on borrow ed m oney.
9. You can n ot build character and
courage by ta k in g aw ay a m an’s
in itia tiv e and independence.
10. Yrou cannot help m en perm a­
n en tly by doing for them w h at th ey
could and should do for th em selv es.

If th e “com m on m an” is to be en­
couraged to buy refrig e rato rs and
radios for delivery afte r th e w ar, pay­
ing for th em now on th e in stallm en t
plan, th e N ew Y orker view s th e situ a­
tion w ith a tinge of sadness by say­
ing—
“In the old days a m an could at least
keep a couple of b ottles of beer in
the iceb ox to ch eer h im self up w h en
he got to w orryin g about h is credit;
now he w o n ’t even have th e icebox.
A lso, w e are goin g to be bothered by
the in evitab le tran sposition of bigb u sin ess language in to th e future
ten se. ‘A sk the m an w h o ’s go in g to
ow n one as soon the w ar is over and
w e get in to production!’ th e ad v ertise­
m ents w ill cry, and the credit man-

65

JUk& 9 t"
"An excellent directory.”
First S ta te Bank, Belmond, Iow a.

"W e substitute your excellent direc­
tory for the large directory.”
S ta te Bank of Lib erty, N ebraska.

"It's the best directory published and
just the right size so one can carry it
in the pocket daily.”
Bennett State Bank, Bennett, Iow a.

"Your bank directory is a very handy
and complete book.”
Lexington S ta te Bank, Lexington, N ebraska.

The new 1943 edition of the lowa-Nebraska Bank Directory will be
ready soon.

In it you'll find the most complete and latest informa­

tion on Iowa and Nebraska banks, including

personnel,

capital,

surplus, deposits, loans and discounts, bond holdings, correspond­
ent banks and other valuable data.

lowa-Nebraska Bank Directory ______________________ , 1943
527 Seventh Street
Des Moines, Iowa
Gentlemen:

Use the handy coupon at the right

Please send--------------- copies of your 1943 lowa-Nebraska Bank
Directory to us, and we will remit at the rate of $2 per copy
upon receipt of your Directory.
Bank___________________________________________________
Officer---------------------------------------------------------------------------City__________________________ State______________________
N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 1943

66

-•
ager, w ith a steely g lin t in h is eyes,
w ill m urm ur, ‘F ran kly, you r d elin ­
q uency w ill force us to rep ossess the
m achine—as soon as it is m anufactured
and delivered to you .’ ”
L ee Chandler, cashier of th e Iow a
Savings B ank of Dike, points out in a
le tte r to th e N o r t h w e s t e r n B a n k e r
th a t in his tow n, w ith a p opulation of
408, th e y have m ade a rem ark ab le re ­
cord in th e sale of w ar bonds. In his
letter to us, Mr. C handler says:
“A recen t article crediting th e State
B ank of P eterson, Iowa, w ith being
the th ird larg est b an k bond seller in
the U nited S tates in pro p o rtio n to th e
size of its deposits stated th a t a t th a t
tim e th e y h ad sold 30.2% of th e ir de­
posits in bonds.
“I believe th a t we m ay have s u r­
passed th is record as our figures as of

IO W A

NEWS

•

D ecem ber 31, 1942, reflected th e fol­
low ing facts: Our deposits on Ja n u a ry
1, 1942, totaled $460,001; du rin g th e
y ear of 1942 we sold U nited States W ar
Bonds to our custom ers w ith a cash
value of $142,965, w hich w ould m ean
a p ercentage of 31.7% as com pared
w ith deposits. I do not, of course,
know th e date on w hich th e P eterson
bank based its figures, b u t it w ould
seem th a t J a n u a ry 1 w ould be th e
logical one to use since th a t is th e date
on w hich we sta rte d selling bonds for
the year.
“In spite of th e n u m ber of bonds
sold, our deposits du rin g th e y ear in ­
creased $72,374.61 and totaled $552,376.35 on Ja n u a ry 1, 1943.”
E llio tt W . F rank, pro m in en t mid-

w estern banker, has been appointed
vice p resid en t of th e LaSalle N ational
B ank of Chicago.

Victory requires
I HEALTH!

¡ ! l | :With the rejuvenating mineral waters,
RiEifound here at America's greatest spa
EEE&very thrilling qqiqbpf activity of the
\V fall season is waiting to be enjoyed by
l l i i ? Hotel guesh/Write today for de$¡10'% : scriptive literature,'

SPRING &Ma
c a r b o r o u g h

®

£ f o M PA N Y
LfQ
XA
fb

First N ational Bank Building, Chicago

N orthw estern B anker


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Federal Reserve Bank of St. Louis

March 19b3

É

lined Mr. F ra n k ’s background. “F ra n k
en tered th e b an king field in so u th ern
Illinois about 20 y ears ago. T hen for
several y ears he served as N ational
B ank E x am in er for th e E ig h th F ed ­
eral R eserve D istrict, la te r becom ing
vice p resid en t of an outlying Chicago
bank. H e is considered an excellent
choice to su pplem ent th e loan officers
of th e LaSalle N ational.”
T he exceptional gro w th of th is b an k
since opening its offices in th e F ield
building, he stated, has req u ired con­
siderable expansion of personnel.

F IN A N C IA L ADVERTISERS
D ISC U SS W A R PROBLEM S
(C ontinued from page 17)
w hich can be carried to the consum er
— and w h en w e recognize th e v a st
back-log of p urch asing p ow er th a t is
b ein g b uilt up through the purchase
of W ar Bonds, V ictory T ax Credits
and other form s of savin gs, com bined
w ith the fa ct th at th e desire of the
A m erican people for th ose th in g s
w h ich th ey have done w ith o u t m ust
be m et, a m ost en cou raging picture is
presented. To a ssist in such a rev iv a l
of trade, bank cred it w ill he needed,
not on ly in the fields of m anufacturing
and d istributing, but by th e u ltim ate
consum er. The P ersonal L oan field
should exp erience great strid es after
the w ar— for there w ill he at th e d is­
posal of the in dividu al so m any th in g s
th at are desired— m ore m odern hom es,
appliances, tran sportation fa cilities,
all d esign ed for th eir con ven ien ce and
en tertain m en t.
R obert L ind qu ist, p ersonnel and

public relatio n s directo r of th e A m eri­
can N ational B ank an d T ru st Com­
pany of Chicago and a directo r of
F. A. A., speaking on present-day
public relatio n s problem s said, “The
w ar m ay have b ro u g h t a revolution
in th e public relatio n s of m any types
of business, b u t let us n o t ju m p to th e
false conclusion th a t ban k s are in-

EXCELSIOR

S

In m aking th e an n ouncem ent C. Ray
P h illip s, p resid en t of th e bank, o u t­

/ US' f a W & r lA

H orace A. Smith, Iow a R epresentative
Des Moines, Iow a

67

•
eluded in th is group. R ath er, w ar h as
intensified th e need for m ain tain in g
th e good w ill of o u r cu stom ers and
increasin g our services to them ; a t
th e sam e tim e, settin g up new condi­
tions an d re stric tio n s w hich m ake it
ex trem ely difficult to m eet th is need.
T h ere is no scarcity or ratio n in g of
b an k services. B anks cannot p o in t to
em pty shelves or overflow ing lobbies
an d adopt a ‘tak e it or leave it’ a tti­
tude. C ustom ers come in expecting
no re stric tio n s in th e service to w hich
th e y have been accustom ed, and
sm a rtin g p erh ap s from in su lts an d de­
lays th e y have suffered in o th er es­
tab lish m en ts, m ay be m ore critical
th a n ever of th e ir banks.
“No, w ar has n ot brou ght a revolu ­
tion in bank public relation s. B u t w ar
has brought a revolu tion in the tech ­
nique of hank public relation s. A nd
the k ey to th is n ew techn iqu e is ‘per­
so n n el’. The b asis of sound public
relation s in a bank a lw ays h ave been
a trained, loyal, en th u siastic p erson ­
nel, and it con tin u es to be true th at
w e m u st build from w ith in if w e are
to be su ccessfu l. B ut today Ave cannot
proceed to build our super-structure
of public relation s, confident th at the
p ersonn el foundation provided for us
is stable and strong. W e m u st start
by d iggin g dow n and h elp in g to build
the very foundation itself. F or m uch
of th e m aterial in our old foundations
has gone to Avar. W e m ust select neAV
m aterial, test, train and m old Avith the
old. Today there m ust be a com plete
m erger of the th in k in g, p lanning, and
fu n ction in g of the p ersonn el and
public relation s program s of every
bank, large or sm all.”
Lou T ow nsend, a ssista n t vice p re si­

dent, B ank of A m erica, San Francisco,
and p resid en t of th e F. A. A. spoke
a t th e evening b an q u et and a few of
his v ery in te re stin g observations w ere
these:
“W e need to ad v ertise now to the
public th a t th e y should keep th e ir
bonds u n til m atu rity . W e are also
using th e slogan in our ad vertising,
‘B uy Bonds for V ictory and Save for
Peace”.
“Over one m illion new people have
m oved to C alifornia d u rin g th e p ast
y e a r and o u r b an k has opened over
35,000 new accounts net.
“A dvertisin g is th e m outhpiece of
thin k in g .
“A dv ertisin g is th e g re a te st pow er
No. 75 Model Cummins Perforator, mo­
tor operated check cancelling machine.
New. Perfect condition. Berkowitz En­
velope Company, 19th and Campbell
Streets, Kansas City, Missouri.

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

IO W A

NEWS

•

in th e w orld, b u t it is like electricity
and m u st be handled carefully.
“T he tu rn o v e r of accounts is the
biggest cost in a bank.
“B ank ad v ertising copy should be
based first on em otions, second on
facts and figures, and third on hum or.

A nd as an illu stratio n of th e first
po in t consider th e heading, “I gave
m y daddy— can’t you

g iA re

10%?”

“T h at bank advertisin g still has a
big job ahead is proven by th e fact

th a t th e re are 50 m illion A m ericans
who have n ever used a b ank.”
Ju liu s K. W aibel, ad v ertisin g coun­
sel of th e C ontinental Illinois N ational
B ank and T ru st Com pany of Chicago,
presided a t th e noon-day luncheon as
M. C., w hich eith er m eans m aster of
cerem on ies or in th e b anking busi­
ness, m ore cash. Jak e did a fine job
and k ep t everyone in good spirits. In ­
cidentally, in addition to his rep erto ire

C orrespondent Bank R e latio n s
w ith T h e F irs t N a tio n a l B a n k o f
C hicago assure p r o m p t h a n d lin g o f
checks, n o tes, d rafts a n d collections;
afford facilities fo r th e ex ch an g e o f
c re d it in fo rm a tio n , fo r ch eck in g in ­
v e stm e n t p o rtfo lio s, a n d o th e r bank*
to -b a n k services*
W i t h T h e F irs t N a ti o n a l B a n k o f
C hicago c o rre s p o n d e n t b a n k re la tio n ­
sh ip is o n e o f lo n g d u ra tio n , h a v in g
b e e n in a u g u r a te d in 1863* T o d a y
th e B a n k s a n d B a n k e r s D iv isio n is
h a n d lin g a n a tio n -w id e business, a n d
in v ites acco u n ts u p o n a basis th a t so
lo n g h as p ro v e d m u tu a lly satisfactory*

The First N ational Bank
o f C hicago
MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

N orthw estern B anker

March 1943

68

•
of good stories, Jak e is also fam ous for
his red, w h ite and blue, personally
penciled letters.
Before he becam e vice p resid en t of
the Citizens and S o u th ern N ational
B ank of A tlanta, 11 y ears ago, L ew is
F. Gordon w as vice p resid en t of th e
McGraw-Hill P u b lish in g Corporation.

M ERC H A N TS
MU T U A L

BO N D IN G
COMPANY
Incorporated 1933

Home Office
VALLEY B A NK BUILDING

Des Moines, Iowa
•

IO W A

NEWS

•

Robert A. B row n, ad v ertisin g m a n ­
ager of the F irst W isconsin N ational
B ank of M ilwaukee, w as unable to a t­
ten d th e conference as he w as tak in g
a little “sick leave” a t th e hospital.
E veryone m issed him , and hoped for
his speedy recovery.
V ern Soash of the M innesota F ederal

Savings and Loan A ssociation of St.
Paul, received w ord du rin g th e con­
ventio n th a t his son, R obert Soash,
had recently received his w ings at
M arfa Field in Texas.
D ale B row n, th ird vice presid en t of
th e F inancial A dvertisers A ssociation
and a ssistan t vice presid en t of th e
N ational City B ank of Cleveland, w as
p rev en ted from atten d in g th e m eeting
because of th e recent death of his
father.

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

e •

C hester L. Price, advertising and
p ublicity m anager of th e City N ational
B ank and T ru st Com pany of Chicago,
did th e official in troducing at th e af­
tern o o n m eeting, w here he allow ed
each sp eaker 10 m in u tes for his talk
and th e n 20 m inutes for discussion of
each subject. A fine idea.
P reston E. Reed, th e popular ex­
ecutive vice presid en t of th e F. A. A.,
told th e conference th a t every m onth
he is receiving new house organs
from b anks all over th e country, and
th a t evidently th ere is a definite tren d
to increase th is form of com m uni­
cation am ong b ank officers and em ­
ployes.

Write to

E. H. WARNER
Secretary and Manager

H arry J. L azarus, d irector of ad­
W e ’ve had our problems in the past, and
we’ve successfully met them.
W e have
our problems today— and with your help,
we can overcome them again.
Though selections may not be large and
substitute m e rch a n d ise d is p la y e d — re st
assured we are doing our best to serve
your immediate requirements— and at the
same tim e e n th u s ia s tic a lly support our
country in the ” A II- O u t W a r Effort.”
” Buy U . S. Bonds and Stamps”

K och B r o t h e r s
p

, A P R IN T E R S
M ESTABLISHED

---------------J
>

STATIONERS V
1889 S BOOKBINDERS
OFFICE O U TFITTE R S^^ ^ ^ -^ B U SIN E SS MACHINES

Grand Av e .

at

Fourth

N orthw estern B anker


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

De s Moines , Ia .

March Ì9 i3

Sharp Now With
Banking Department
E ugene W. Stetson president, The
G u aran ty T ru st Com pany of New

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

OldestandLargestinDesM
oines
411 6th Ave.

Dial 4-7119

E L M E R E. M IL L E R
P res, and Sec.

H U B E R T E. JA M E S
A sst. Sec.

FO R Y O U R E N JO Y M E N T . . .
L iste n to th e

Paul P. P ullen , p resid en t of the Chi­

cago F inancial A dvertisers and ad ­
v ertisin g m anager of th e Chicago T itle
& T ru st Company, did a very fine job
as w elcom ing host.

•

G. W . M cSw een ey, presid en t of De
Luxe Check P rin te rs, Inc., of Chicago,
has th ree charm ing d au g h ters w ho
are Louis, age 13; Mary, 18; and P eggy,
21. The la tte r tw o girls are atten d in g
Lake F orrest.

v ertisin g of th e C entral N ational B ank
in Chicago, and H arold H. Stout, vice
p resident, both atten d ed th e luncheon
m eeting. Carl F. K u ehule, president
of th e bank, is recovering from an
operation caused by a broken ap ­
pendix.
H arold P. K lein, vice presid en t of
th e Iow a Des Moines N ational B ank
& T ru st Company, suggested th a t th e
F.A.A. should now m ake a study to
find out how best to help finance th e
purchase of civilian goods w hen the
w ar is over, and to endeavor to keep
th is business for th e banks ra th e r
th a n com peting lending organizations.

“ W O RLD O F M U SIC ”
KSO, 1460 KC
9 :30-10 :00 a. m. Sundays

T w en ty-fou r
Y ea rs of

v °^

.V
A e°

Hawkeye Mutual Hail
Insurance Association
C a rv e r B ld g .

F o r t D o d g e , Io w a

or
IMM EDIATE
SA LES

.essine Advertising Co.
J

I NC.

J

Des M o i n e s

69

—• I O W A
York, an nounced th a t Dale E. Sharp,
vice president, has been tra n sfe rre d
from th e tr u s t d e p a rtm e n t to th e b a n k ­
ing d e p a rtm e n t and w ill h en cefo rth be
identified w ith th e com pany’s b a n k ­
ing relatio n sh ip s in th e m iddle w est
district, com prising Illinois, M ichigan,
Indiana, M innesota, W isconsin and
Iowa.
Since his g rad u atio n from college
in 1924 Mr. S harp has been associated
w ith th e G u aran ty T ru st Com pany of
New Y ork and The N ational B ank of
Com m erce in New Y ork (w hich
m erged w ith th e G u aran ty in 1929)
except for a b rief period w hen he w as
in th e in v estm en t b an k in g business.
In recen t y ears he has been engaged
in th e in v estm en t w o rk of th e tr u s t
d ep artm en t.
Mr. S harp w as b orn in Topeka,
K ansas, in 1903 and w as g rad u ated
from W ash b u rn College in 1924 and
from N ew York U niversity, G raduate
School of B usiness A d m in istratio n in
1928.

NEWS

•-

advises th a t he is th e only m an w ho
has been w ith th e bank continuously
since it w as organized in 1913.

Kalona, Iowa
F red E. Skola, presid en t of the
F a rm e rs Savings Bank, advises th a t
notice has been given to th e public
th a t all old depositors’ tru s t certifi­
cates w ould be redeem ed in full. Both
banks in K alona have now paid out
one h u n d red p er cent on th e ir tru sts,
and both now have over a m illion
dollars in deposits.

Oakland, Iowa
D irectors of th e O akland Savings
B ank declared th e usual sem i-annual
d ivident and a review of past y e a r’s
activities show ed an increase in all
departm ents. D eposits are now m ore
th a n a m illion, an all-tim e high, and
earnings are satisfactory.
W. H.
Spencer continues as presid en t of the
institu tio n , and also reelected w ere H.
H. Spalti, vice president; J. J. Evans,
cashier; and D. J. Spencer and H arold
Spencer, a ssistan t cashiers.

In Army
George E. W hitney, w ho for th e past
ten y ears has been connected w ith
th e F irst State Bank, C hurdan, Iowa,
is now in the Army.

21st year plann ing a d v ertisin g program s
for banks and tru st com panies . .
W rite for Program K e y e d to W ar T im es.
C

o

u

n

s
D

e
r

l

o n

B

a

n

k

P

u

b

l

i

c

R

e

l

a

t

i

o

n

s

. W e s s l in g , p r e s id e n t

< z A / \ o l n z i , iJ o v e r a

L E G A L Q U ESTIO N S
(C ontinued from page 21)
Pedles recover dam ages for eviction
from V an Slyke?
No. A landlord is not an sw erab le in
dam ages to a ten an t for eviction from
leased p roperty u n less the eviction be
due to som e w ron gfu l act on the part
of the landlord, eith er p ersonally or by
som e person actin g under h is author­
ity, or because of som e param ount
title.

Is it possible in South D akota to
set aside a ju d g m en t th a t has becom e
final because of new ly discovered evi­
dence?
No. In South D akota a judgm ent,
after it has becom e final, w ill not he
set aside upon the ground of n ew ly d is­
covered evidence. Such ru lin g is de­
sign ed to p reven t repeated litigation
b etw een th e sam e p arties in regard
to the sam e su bject of con troversy.

Rock Valley, Iowa
A nnouncem ent comes from J. P.
Schutt, p resid en t of th e V alley State
B ank, of th e resig n atio n of G. G. V er­
m eer as cashier of th e in stitu tio n , al­
tho u g h he w ill rem ain on th e board
of d irecto rs as a vice p resident. Jo h n
R oghair, Jr., fo rm erly a ssista n t cash­
ier, has been nam ed cashier, and
M ildred B arb has been elected to th e
office of a ssista n t cashier. Mr. S chutt

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

tfndex Ç7o ¿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 ....................................... 32
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 Co. .46
B

B ankers T
B ankers T
B erk o w itz
B urroughs

r u s t C o m p a n y , D e s M o i n e s . . . 55
r u s t C o m p a n y , N e w Y o r k . . . . 58
E n v e l o p e C o m p a n y ......................... 50
A d d i n g M a c h i n e C o ......................... 30

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 Co. . . . 1 0
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 .......... 28
C i t y N a t i o n a l B a n k , C l i n t o n ............................... 64
C ity N a tio n a l B a n k a n d T r u s t C o m p a n y ,
C h i c a g o ............................................................................ 42
C o n tin en tal-IU in o is N atio n al B a n k an d
T r u s t C o ............................................................................. 6
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 ...........49

1J
F . E . D a v e n p o r t a n d C o m p a n y ................. 4 9 - 5 8
D es M o in es 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 .....................................................................68
D r o v e r s N a t i o n a l B a n k ............................................ 59
E
E l m s H o t e l ....................................................................... 66
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 ...................... 25
F
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k s ............ 33
F i r s t N a t i o n a l B a n k , C h i c a g o ............................ 67
F i r s t N a t i o n a l B a n k , S t . J o s e p h ....................... 47
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 .................... 56
F i r s t S t . J o s e p h S t o c k Y a r d s B a n k ............ 48
F i r s t W i s c o n s i n N a t i o n a l B a n k ....................... 54

G
G eneral A m erican

L i f e I n s u r a n c e C o . . . . 26

II
H a w k e y e M u tu al H ail In su ra n c e
A s s o c i a t i o n .....................................................................68
H o m e I n s u r a n c e C o m p a n y ................................... 5

L.

G e o r g e L a M o n t e a n d S o n ...................................... 3
L e s s i n g A d v e r t i s i n g C o m p a n y ..........................68
L i v e S t o c k N a t i o n a l B a n k , C h i c a g o ............... 63
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 ............... 52
L i v e S t o c k N a t i o n a l B a n k , S i o u x C i t y . . . 40

>1
M
M
M
M

a r s h a l l C o r n s a n d C o m p a n y ............................ 32
e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 68
e r c h a n t s N a t i o n a l B a n k ...................................... 2
in n ea p 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 ..........................................................................39
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 .............. 36
M i s s i s s i p p i V a l l e y T r u s t C o m p a n y ............... 62
N
N a t i o n a l S u r e t y C o r p o r a t i o n ...............................22
N e w Y o r k T r u s t C o m p a n y .................................... 61
N o r t h e r n T r u s t C o m p a n y ....................................... 60
N o rth w e s te rn N a tio n a l B an k , M in n e­
a p o l i s ..................................................................................34
N o rth w e s te rn N a tio n a l L ife In s u ra n c e
C o m p a n y .......................................................................... 36

O
O m a h a N a t i o n a l B a n k ...............................................19

1*
P h i l a d e l p h i a N a t i o n a l B a n k ............................... 51
P u b l i c N a t i o n a l B a n k a n d T r u s t C o ............61
S
S c a r b o r o u g h a n d C o m p a n y .................... 2 3 - 5 3 - 6 6
S q u a r e D e a l I n s u r a n c e C o m p a n y .................... 24
T

T o w n M u t u a l D w e l l i n g I n s u r a n c e C o . . . 29
T w in C ity F e d e r a l S a v in g s a n d D oan
A sso ciatio n
..................................................................38
U
U n i t e d S t a t e s N a t i o n a l B a n k ...............................44
U n ite d S ta te s T r e a s u r y D e p a r t m e n t .... 4

I
I o w a - D e s M o i n e s N a t i o n a l B a n k .................... 72
I o w a - N e b r a s k a B a n k D i r e c t o r y ....................... 65
I r v i n g T r u s t C o m p a n y .....................
42
J

J a m i e s o n a n d C o m p a n y . .......................................... 38

IV
K o c h B r o t h e r s ..................................................................68

V alley

S a v in g s

V
B a n k ........................................

71

W
W a n t a d s .................................................................... 6 0 - 6 7
C h a r l e s E . W ' a l t e r s C o m p a n y ..........................47
J a y A . W e l c h .....................................................................63
W e s s l i n g S e r v i c e s ....................................................... 69
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 .............. 27

N orthw estern B anker

March 19^3

70

In the D ir ec to r s ' R o o m
he m ig h t say som ething. As an in­
dulgence, th is w as perm itted.
“All I w a n t to say, gentlem en,” he
rem arked, “is th a t I w ish I ’d never
seen those birds.”

G ive H er Tim e
H ighw ay P atrolm an: You have been
doing six ty m iles an hour. D on’t you
care an y th in g ab o u t th e law?
P re tty Miss: W hy officer, how can I
tell w h en I have only ju s t m et you?

A R ecord
V isitor:
D on’t you cut yourself
p re tty often w ith th is straight-edged
razor?
M ountaineer: N ar, I been shaving
nigh on to five y ears now and I a in ’t
cu t m yself e ith e r tim e.

W ho To?
Teacher: “H ow do bees dispose of
th e ir honey?”
Tommy: “T hey cell it, I believe.”

Caught!
Practical Man
A m o to rist stopped a t an E nglish
teahouse, w here he w as supplied w ith
som e v ery h a rd and an cient cake. He
glanced a t th e m enu and sen t for the
m anager.
“I see from y o u r bill of fare,” he
said, m ildly, “th a t y o u r cakes are all
hom e baked and th a t you supply
socials and clubs.”
“T h a t’s right, sir,” said th e m anager.
“W ell,” said th e custom er, “ju s t lend
m e one of y o u r clubs, w ill you?”

H e H ad ’Em A ll

T h a is D ifferent

It seem s th e gate broke dow n be­
tw een heaven and hell. St. P e te r ap ­
peared a t th e bro k en p a rt and called
out to th e devil, “Hi, Satan, it’s y o u r
tu rn to fix it th is tim e.”
“Sorry,” replied th e boss of th e land
beyond th e Styx, “m y m en are too
busy to go about fixing a m ere gate.”
“W ell, th e n ,” g rum bled St. P eter,
“I ’ll have to sue you for b reak in g our
ag reem en t.”
“Oh, y eah ,” said th e devil, “w here
are you going to get a law y er?”

The applicant for a selling job w as
being interview ed.
“You say y o u ’ve n ever h ad an y ex­
perience selling in our line of goods?”
“T h a t’s rig h t.”
“W h at selling experience have you
had?”
“N one.”
“H ave you ever studied salesm an­
sh ip ?”
“No, sir.”
“T h en w hy did you come here and
ask for a salesm an’s job?”
“I ’ve got a b ran d new set of tire s.”
“W hy d idn’t you say so in th e first
place? W here do you w a n t to start?
H ow w ould you like to cover all of
T exas?”

M edically D escribed
A p a tie n t w ho com plained of diges­
tive troubles w as told by a specialist
th a t he w as d rin k in g too m uch and
w ould have to knock off.
“W ell,” said th e p atien t, “w h a t am I
to tell m y w ife?”
The doctor th o u g h t for a few m in ­
utes, th e n said: “Tell h e r you are su f­
fering from syncopation. T h a t will
satisfy h e r.”
T he p a tie n t did as he w as told.
“W h at is syncopation?” asked his wife.
“I don’t know ,” said th e husband,
“b u t th a t’s w h a t he said.”
W hen h e r h u sb and h ad gone out th e
wife looked up th e w ord in th e dic­
tionary , and found th a t it m eant: “I r ­
reg u la r m ovem ent from b a r to b a r.”

Take Y ou r Choice
T o u rist (in village store): Waddya got in th e shape of autom obile
tires?
Saleslady: F u n e ra l w reath s, life p re ­
servers, invalid cushions and dough­
nuts.
N orthw estern B anker


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

March 1943

Bad Shot
A Chicago gan g ster took it into his
head to send his son to school.
T hey arriv ed in th e pincipal’s study.
“W h at ya got?” said th e father.
“Sir, w e offer arithm etic, trigonom ­
etry, spelling, etc.”
“W aal, give ’im trig g ern o m etry . H e’s
de w oist shot in de fam ily!”

G u ilty!
T he p riso n er w as on tria l for steal­
ing ducks. H is counsel addressed th e
ju ry at length, pointing out th a t it had
n o t been proved conclusively th a t the
pro secu tor had lost an y ducks; th a t
th e ducks found in th e p riso n e r’s cot­
tage w ere not those of th e prosecutor;
th a t th e p riso n er h ad established an
absolute alibi.
J u s t as th e judge began to sum-up,
th e p riso n er interposed and asked if

A n A m erican n ew spaper corre­
spondent in Ja p a n w rote to a friend,
“I don’t know if th is le tte r w ill ever
arriv e, because th e Jap anese censor
m ay open it.” A w eek la te r he re ­
ceived a note from th e Jap an ese post
office saying, “T he sta te m e n t in y o u r
le tte r is n o t correct. W e do n ot open
letters.”

Just to Be Safe
Joe: “H ow are you going out w est?”
Jo-Jo: “We are going to drive m y
car. My com panion is tak in g along a
gallon of w hiskey for rattle sn a k e
bites.”
Joe: “Fine. A nd w h at are you go­
ing to tak e?”
Jo-Jo: “A couple of rattlesn ak es.”

Resignation
T his le tte r w as received from an
A m erican conscript: “D ear Colonel:
A fter four m onths of arm y life and
m uch sober reflection, I have decided
th a t I cannot su p p o rt m y w ife in th e
m an n er to w hich she has been accus­
tom ed on m y arm y pay. K indly accept
m y resig n atio n .”

A ccording to Orders
Out for a drive in h e r pony-cart, an
elderly lady m anaged to get involved
in some arm y m aneuvers. As she
approached a bridge a se n try stopped
her.
“Sorry, m adam ,” he said, “you can ’t
cross th is bridge. I t ’s ju s t been de­
stroyed.”
T he old lady peered at it th ro u g h
h e r spectacles.
“It looks all rig h t to m e,” she m u r­
m ured. Then, as an o th er soldier cam e
along, she asked:
“E xcuse me, b u t can you tell me
w h a t’s w rong w ith th is bridge?”
T he soldier shook his head.
“D on’t ask me, lady,” he replied;
“I ’ve been dead tw o days.”

P le n ty W eak
A rm y Doctor:
“W eak eyes, eh?
How m any lines can you read on th a t
c h a rt? ”
D raftee: “W h at c h a rt? ”

ALLEY
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Federal Reserve Bank of St. Louis

AS ESSENTIAL AS BULLETS
Iow a Banks an d Bankers are m aking
an important contribution to the W ar
effort by assistin g the farm ers of our
State to produce more food.
A d eq u a te fin an cin g, en cou ra g em en t
an d cooperation on the part of his
local Banker should h elp the farmer
m eet som e of his present-day prob­
lem s, w hich in clu d e serious sh ortages
in labor, m achin ery a n d equipm ent.

owa-D es

More food from Iow a . . . to feed our
ow n N ation an d our A llies . . . is just
a s essen tia l a s bu llets in continuing
the m arch tow ard Victory.
Iow a Banks an d Bankers h a v e e n ­
listed under the Food for Freedom
b an n er for the duration to assist in the
all-out m obilization of our State's great
food produ cin g resources.

M oines N ational B ank
& TRUST COMPANY

M e m b e r F e d e ra l D ep o sit Insura n ce C o rpo ra tio n


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Federal Reserve Bank of St. Louis