Full text of The Northwestern Banker : March 1946, 51st Year, No. 704

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Federal Reserve Bank of St. Louis

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How You Benefit
A correspondent account with this bank assures prompt
handling of checks, notes, drafts and collections. It affords
facilities for securing credit information and other bank-tobank services which are continually useful in this, the
largest grain center in Iowa and one of the largest in the
country.

W e will welcome an opportunity to discuss a correspondent
relationship with you, at any time.

A------CEDAR RAPIDS
BANK
----------

CED A R
R A P ID S

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SERVICING A L L IOWA.

THE

-M

MERCHANTS
OFFICERS
James E. H am ilton , Chairm an of E xecutive Committee
S. E. Coquillette, Chairm an o f the Board
John T. H amilton II, President
H. N. B oyson , V ice President
Roy C. F olsom , V ice President
M ark J. M yers , V. Pres, and Cashier
George F. M iller, V. Pres, and T rust Officer
M arvin R. Selden , V ice President
F red W . S m it h , V ice President
R. W . M an att , Asst. Cashier
L. W . Broulik , Asst. Cashier
P eter B ailey , Asst. Cashier
R. D. B rown , A sst. Cashier
O. A . K earney , Asst. Cashier
Stanley J. M ohrbacher, Asst. Cashier
W allace S. H am ilton , B uilding M gr.

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Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

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

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Federal Reserve Bank of St. Louis

J o r if o u r n e w
h a u l; v a u l t

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Neta WctilA-StcuuíanA QteateA by

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•N ow it can be told — how, for the five long years
of continuous research, while Herring-Hall-Marvin
engineers were concentrating on new and higher
standards of precision-engineering to help speed
all-out Victory, they built up a backlog of revolu
tionary discoveries that they knew would he appli
cable to the art and science of building better
protective equipment for hanks in the years of

peacetime progress. Now, they are ready to make
the epochal announcement— STAINLESS STEEL
FOR YOUR NEW BANKING HOME! Yet this is
only one of a score of unannounced improvements
that m e rit y o u r im m e d ia te in v e s tig a tio n .
Whatever your requirements for new construction
or remodeling, see your local Herring-Hall-Marvin
representative— or write, wire or phone us direct.

HERRING-HALL-MARVIN SAFE
M anufacturers of Bank V ault Equipment - Bank Counters - Tellers' Buses and
Lockers - Safe Deposit Boxes - Night Depositories - Bank and Office Safes

BUILDERS OF THE UNITED STATES SILVER STORAGE VAULTS AT WEST POINT

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Federal Reserve Bank of St. Louis

General Offices

H A M I L T O N , OHIO
BRANCH OFFICES
In New Y o r k ,C h ic a g o , Boston, W ash in g to n ,
S t. Lo u is, A tla n ta , H ouston, P h ilad e lp h ia,
Los A n g eles, Detroit, Pittsburgh
OTHER

AG EN C IES

ALL

OVER

THE

W ORLD

Northwestern Banker, March,

1946

(C e n tra l Hanover is one of New York’s
oldest commercial banks—and one of
the most experienced in handling the
business of correspondent banks.

Unusual requests receive the resource
ful, personal attention of officers who
are acquainted with conditions in all
parts of the country.

CENTRAL HANOVER
BANK AN D

Northwestern Banker, March, 1946

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Federal Reserve Bank of St. Louis

TRUST C O M P A N Y
NEW YO RK

Mem ber Federal Deposit Insurance Corporation

HERE is little difference between the tasks and the oppor
tunities of insurance. Keeping pace with progress is an old
story to “ the industry that protects other industries.” Along
with the bright promises of modern science, many new and un
looked for hazards will doubtless develop, but science itself
has been a potent tool used by property insurance under

writers and the various agencies of public safety.
It seems to me that the accomplishments of American
idealism are very closely related to the accomplishments of
American business. If that is so there is little to fear in the
future if we maintain the same qualities to which our organiza
tion was dedicated ninety-three years ago. Any improvements
in operating methods which may be required for the good of
public service should be welcomed. Providing financial pro
tection to meet the exact requirements of the insuring public
must remain foremost in our endeavors.
People of the fire insurance business and of our own organi
zation can look with pride upon the achievements of 1945,
the Year of Victory. In common with every American citizen
and every American business they were a part of the solid
home front behind our victorious fighting men.
This report on the affairs of the company reflects the progress made in a year of national transition from war to peace.

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Federal Reserve Bank of St. Louis

STATEMENT
A
December 3 1 ,19 4 5
ADMITTED

ASSETS

Cash in Office, Banks and Trust Com
................................ . . S 21,252,662.44
panies
43,311,100.25United States Government Bonds
93,759,025.46
A ll Other Bonds and Stocks . . . .
180,533.95
First Mortgage Loans . . . . . .
3,464,339.81
Real Estate . .........................................
8,480,590.41
Agents Balances, less than 90 days due
Reinsurance
1,567,724.71
Recoverable on Paid Losses .
187,624.54
Other Admitted Assets . . . . . .
Total Admitted Assets

. $172,203,601.57

LIABILITIES
Reserve for Unearned Premiums . . $ 62,085,749.00
Reserve for Losses . . . . . . .
17,528,837.00
Reserve for T a x e s ...............................
4,299,218.20
Liabilities under Contracts with War
Ship Adm. . ....................................
2,719,717.62
Reserve for Miscellaneous Accounts ..
435,448.41
F unds H e ld U n d er R ein su ra n ce
Treaties
67,772.03
Total Liabilities Except Capital $ 87,136,742.26
G eneral VoluntaryReserve
• • $ 1 0 ,0 6 6 ,8 5 9 .3 1
Capital . . . .
1 5 ,0 0 0 ,0 0 0 .0 0
Surplus
. . .
6 0 ,0 0 0 ,0 0 0 .0 0
Surplus as Regards P olicyhold ers $ 85 ,06 6,8 59 .3 1
Total .

......................................$172,203,601.57

N ote: Bonds carried at $4,414,678.58 amortized value
and cash $50,000.00 in the above statement are
deposited as required by law. A ll securities
have been valued in accordance with the re
quirements of the National Association of In
surance Commissioners. Surplus adjusted to
reflect Canadian Assets and Liabilities on
United States Dollar basis.

-TJOtectvuiLewis L. Clarke
Banker

Charles G. Meyer
The Cord Meyer Company

W illiam L. D eB ost
President, Union Dime
Savings Bank

W ilfred K urth
Chairman of the
Finance Committee

E dwin A. Bayles
Dennis, Mass.

G ordon S. R entschler
Chairman of the Board,
National City Bank
of New York

R obert G oelet
Real Estate

G eorge McA neny
President, Title Guarantee
& Trust Co.

Guy Cary
Lawyer

Harold V. Smith
President

Harvey D, Gibson
President, Manufacturers
Trust Company

Frederick B. A dams
Chairman of the Board,
Atlantic Coast Line
Railroad Co.

☆ THE HOME ☆

R obert W. Dowling
President, City
Investing Co.

G eorge Gund

N EW

President, Cleveland
Trust Co.

H arold H. Helm
Vice President,
Chemical Bank &
Trust Co.

FIRE

Y O R K

AUTOMOBILE

MARIN E

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

6
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Quality Cooperation

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T o banks— in other sections o f the country and especially in smaller communities
— w ish in g to enlarge their field o f activity, T h e Philadelphia N ational is glad to
offer quality cooperation, o f which these services are ty p ica l:
Cooperation in the extension o f industrial loans.
D ependable and experienced representation.
A com plete Foreign Departm ent, backed by years o f experience in handling
the transfer o f funds into and out o f the country . . . the issuing o f Letters o f Credit
and collecting on exports. O ur long-established contacts in foreign credit centers
also perm it us to provide immediate information on current prospects and trade
trends.
If you require these or other services now or contemplate their need in the near
future, we shall be pleased to discuss with you in detail the benefits o f fo rm in g such
a relationship.

THE P H IL A D E L P H IA N A T IO N A L B A N K
Organized

180 3

P H I L A D E L P H I A
M E M B E R

Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

F E D E R A L

D E P O S I T

PA.

I N S U R A N C E

C O R P O R A T I O N

•

1946

Credit Information
We recognize the value to our Correspondent
Banks of complete and accurate credit information,
both for their own use and as a service to their
depositors. We are in a position to render prompt
attention to credit inquiries, and welcome the
opportunity of placing this service at the disposal
of our banking friends.

BANKERS TRUST COMPANY
NEW

YORK

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

A Partial List o f Bankers Trust Company Services to Banks
Collection o f Par and Non-Par
Checks
Collection o f N otes, Drafts,
Coupons, Matured Bonds and
Other Items (D om estic and
Foreign)
Transfer o f Funds, Remittances
and D om estic M oney Orders

Servicing Loans to Brokers and
Dealers

Commercial and Travelers Letters
o f Credit

Participation with Correspondent
Banks in Loans to Local
Enterprises

Safekeeping o f Securities

Dealers in United States G overn
ment, State and M unicipal
Securities
Investment Information

Credit Information
Commercial Paper Purchases

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Federal Reserve Bank of St. Louis

Receipt and Delivery o f Securities

Consultation on Pension and
Profit-Sharing Plans
Co-Paying or Exchange Agent,
Co-Transfer Agent or Registrar,
and Co-Depositary
Trust and Reserve Accounts
International Trade and Foreign
Banking Facilities

Northwestern Banker, March,

Ì946

FIELD WAREHOUSING!

The Modem Method of Inventory Financing
Some of your present customers . . .

as well as others whose

business you would like to have . . . may find their working
capital insufficient for their needs.
Many have inventories that offer sound opportunities to you
lor

Warehouse

Receipts

Loans.

Our

Field

Warehousing

Service enables you to make those loans against inventories
stored right on the borrower’s own premises.
Warehouse Receipts make it possible for you to lend in ex
cess of open-line credit limits, safely and profitably.
We

are

specialists

Field

Warehousing.

Our

experience

is long . . . our responsibility recognized.

Without obligation, our representative will call on
request and explain how our Field Warehousing serv
ice provides collateral on inventories on the owner's
location . . .

B>t|Saul terminal Warehouse Co.
ST. PAUL. MINN.
I O W A O F F IC E
515 Iow a-D es M oines National Bank Building
D E S M O IN E S
T E L E P H O N E 2-1208
T. C. C A N N O N , D IS T R IC T M A N A G E R

OTHER

O F F IC E S

M IN N E A P O L IS
M IL W A U K E E
IN D IA N A P O L IS
D E T R O IT
C H IC A G O
N E W Y O R K B O ST O N P H IL A D E L P H IA
P IT T S B U R G H
SYRACU SE
M E M P H IS
ATLANTA
C H A R L O T T E A L B A N Y , GA.
JA C K S O N V IL L E

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

Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

W hat
Do
Y ou
Think?

NUMBER 704

FIFTY-FIRST Y E A R

Oldest Financial Journal West of the Mississippi River

Question: Do you think finance com
panies or banks will make most
of the installment loans in the
future?
O. J. Boos, president, Miner County
Bank, Howard, South Dakota: “ In my
opinion the banks are approximately
twenty to twenty-five years late. In
the days when the profits were enor
mous, they looked upon the paper as
trashy. Today after they have allowed
the Finance Companies to take off the
cream and to grow financially strong
at the expense of the bank, now the
banks are classifying the paper as
cream of the wheat. I can speak only
for ourselves. We handled 95 per cent
of all finance paper originating in this
county, also some out of the county
and even state. We will handle vir
tually all paper here, unless the rate
is so low that it is unprofitable. My
contention is that there is no money
in a 3 or 4 per cent finance charge, that
is grossing slightly under 6 or 8 per
cent.”
E. S. Pitman, cashier, Central State
Bank, State Center, Iowa: “ I think
that banks are going to endeavor to
get their share of the installment loan
business which will be in the market
in the near future. You will notice
many of the city banks are advertising
for this business at the present time
not only in print but also over the air.
This business will no doubt be taken
over and handled through the personal
loan department.”
H. N. Eungwitz, cashier, Wright
County State Bank, Monticello, Min
nesota: “ I think there will be an un
limited amount of installment financ
ing available in the near future and
with the large cash resources now on
hand in most all of our banks, I am of
the opinion these banks will make a
bid and go after a larger percentage
of installment loans in the future.”
J. A. Indra, president, Bank of St.
Edward, St. Edward, Nebraska: “ I
think that if some of our country bank
ers will not wake up to the need for
(Turn to page 30, please)

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Federal Reserve Bank of St. Louis

IN THIS MARCH, 1946, ISSUE
EDITORIALS
A cross the Desk from the Publisher

FEATURE ARTICLES
W h at Do Y ou T h in k?.............................................................................. .......................................
F ron tispa ge ......................................................................................................... -......... - ...........—T w enty T im ely Tips on F in an cing.................................................. ....... George E. Larson
H ow Much Capital Should Y ou r Bank H a v e?......................................... Carl B. Sebring
News and View s o f the B anking W orld ........, ........................ ................. Clifford De Buy
Bankers Y ou K now — Philip R. Clarke...................................... .................. - - .......................
H ow a Bank Celebrated Its D iam ond Jubilee......................... ................... -........ ....... .....--W h at They Said at the T ru st C onference.......................................... -..................................
W hat the Public Does W ith Its M oney.................................. ..................................................
When a M ortgage Is F oreclosed— Legal D epartm ent........................................... —-........
W h y Bankers A r e Cussed— and D iscussed.......... ...... ............................ Marshall Corns
W h at Do Y ou T h in k?...................................................... ...... .............................. -......................N ine W ays to Increase Business fo r Y ou r B ank.............................. Merrill Anderson

9
13
14
15
16
17
18
20
22
24
26
28
59

BONDS AND INVESTMENTS
R estrict Investm ent to the Shorter Term Governm ents.................Raymond Trigger 33

INSURANCE
Three K eys to Success......................................................................................... W. J. Cooper 39
Receives H on ora ry M em bership............................................................................................... 42

STATE BANKING NEWS
M innesota New s .............................................................................................................................
Tw in C ity N ew s.........................................................................................................—-........
South Dakota N ew s......................................................................................................-................ Sioux Falls N ew s.................
N orth D akota N ew s.............................................................................. —......................................
Nebraska New s ................... ................................................. .........................................................
Omaha Clearings ................. .................... ...........................................................................
Lincolw n Locals — ............ ............................... —- ............. -................... ..........................
Iow a New s ...................................................................................
Groups One and Eleven in Annual M eeting— S tory and P ictu res................................

45
49
51
52
53
55
57
58
64

IN THE DIRECTORS' ROOM
Short Stories to Make Y ou Lau gh.. ........................... ....................................................... —- 78
Conventions ....................................................................................... .............................................. 78

NORTHW ESTERN B A N KER, 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFO RD DE PUY, Publisher
R A L P H W. M O O R H E A D
Associate Publisher
E LIZ A B E T H C O L E
Advertising Assistant

H EN RY H. H A Y N E S
Editor

BEN J. H A L L E R , Jr.
Associate Editor

M A R G U ER ITE BROW N
Office Supervisor

SA D IE E. W A Y
Circulation Department

NEW Y O R K OFFICE
Frank P. Syms, Vice President, 505 Fifth A ve., Suite 1806

Telephone MUrray Hill 2-0326

Northwestern Banker, March,

1946

10
active competition. At the time of the creation
of each of these agencies there was always some
alleged emergency which was used to justify it.”
As we see it, Air. Atattison, the banks of the
nation must do two things. One, (1) continue to
invite and encourage both large and small busi
ness to carry on their financial transaction with
the banks and not with government lending agen
cies; and two, (2) banks must stop leaning on the
government for guarantee of every loan they
make. *
Just recently the Department of Commerce,
through its small business advisory committee, has
revived proposals for government guarantee of
business loans up to 90 per cent.
Every time the banks of-the country expect the
federal government to guarantee a substantial
part of their loans, they are simply making it
easier and easier for the government to take over
the entire banking business of the nation.

Across tlic Desk
From the l*u hi ¡slier
S b ea l £ .

/? .

M a tiU a n :

The question of aiding small business is receiv
ing much discussion both in Washington and in
banking circles.
We are interested in what you have been doing
as executive vice president of The Bank of
America, San Francisco, to stimulate loans for
small business.
You emphasize that ‘ ‘ Small business needs sound
financing’, the same as large business, and the
financing is available through established private
enterprise channels. But the small business man
hunting financial assistance must know where to
go; otherwise he may be lured by the siren call
of the politicians.”

Not only has the small business man, but larger
ones as well, been lured by the “ siren call of the
government lending agencies,” because as one
prominent New York banker has told us, “ On
June 30, 1945, the government credit agencies
were lending to our clients $5,544,000,000. On
September 1, 1945, they were lending $5,409,000,000. The figure is gradually coming down, but
not rapidly enough. AVe must keep at this.
‘ ‘ Over the past 12 years our government has
created some 45 credit agencies with which we,
in privately chartered banking, have been in
Norihwesfern Banker, March,

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Federal Reserve Bank of St. Louis

1946

eat Willie

fiaoilt:

Should we or should we not loan $3,750,000,000
to England?
The amount of the loan originally proposed
was $4,400,000,000 and then was reduced to the
amount above mentioned.
As chairman of the committee on International
Economic Policy, we have read carefully your
recent ‘ ‘ 15 Facts on the proposed British loan.”
The Northwestern Banker made a survey among
some of its subscribers on this very question,
‘ What do you think of the proposed loan to
Great Britain,” and the results appeared in our

February issue and additional reports are in this
issue.
Some of the objections to the loan, as expressed
by the Northwestern Banker readers, were these:
“ Uncle Sam has been ‘ Uncle Sap’ long
enough. In this International game of give
and take, this country should now stop doing
all the giving. ”
“ W hy should England expect a country
on a capitalistic basis to finance socialism?”
“ It is about time we quit playing Santa
Claus.
Let England solve her own prob
lems.”
‘ ‘ There is also a limit of national debt and
the amount of income taxes our people can
stand. ’ ’

ATarriner S. Eccles, chairman of the Federal
Reserve Board, believes that we should make the
loan to Britain because the United States, “ can-

11
not afford in its own long run interest to refuse
the help.”

Secretary of Commerce Henry A. Wallace be
lieves we should make the loan to Great Britain
as well as being prepared to finance foreign trade
deficits for other countries with unfavorable trade
balances, which, as he puts it, “ would include
most of the rest of the world.”

Perhaps it is to our best interests to make this
loan to Great Britain, but many people are not
forgetting that our own national debt is very
close to $300,000,000,000 and that we have a con
siderable amount of financing to do on our own
part if we are to continue as a “ going enterprise.”
Also, many taxpayers still remember that 17
foreign countries still owe the United States from
40 to 95 per cent of the money they borrowed after
World War I; and that Great Britain still owes
$4,368,000,000 in principal alone without any in
terest being figured on its original debt after
World War I, which amounted to $6,415,000,000.
Now, if, as Secretary Wallace indicates, we
are going to have to finance “ the rest of the
world,” the question we must decide is how far
“ can we g o ” in the extension of foreign credit.
Nicholas Murray Butler, in the preface to your
booklet, Mr. Booth, gave perhaps the best reply
in favor of the loan to Britain when he said,
“ Every business man knows that it is to his
advantage if his customers prosper. Every Amer
ican should know that it is in our national inter
est to strengthen the financial position of our
best customer— Great Britain.”

jbean. Jl.

jH acy:

handle it in such an attractive way that our people
would protest against banks being taken from
private ownership.”

Private banking must do a better job than
government financial agencies if federal social
ization of banking is to be prevented.
The United States of America was not built by
government banks but by private banks operating
with state and national charters, and these
independently owned banks today are in a better
position than ever to serve the needs of their
respective communities and we are confident will
do so during the coming months and years.
We have enough government politics in bank
ing now. What we need is less of it with an in
creased determination on the part of the 15,000
banks of the country that they will give the best
service that they have ever rendered in their entire
history. Then we will have no fear of socializa
tion of our banks.

^ b ea ^ i Id J iU u n <Ji. P o & i:

As we enter the postwar banking era, there cer
tainly is nothing more important than improving
the physical banking quarters of institutions so
that they can render better service to the public.
Your association with the Continental Illinois
National Bank and Trust Company, Chicago, has
apparently given you the opportunity, or you
have definitely made it a part of your duties, to
study how banks can improve their bank build
ings and interior layouts.
In a recent speech you told how cold and for
bidding many bank quarters were whereas the
friendly and inviting type of architecture should
be used.

You recently brought up the question of
whether the people of the United States would
object to the socialization of banking in this coun
try if the question was presented to them.
Some time ago the Gallup Poll indicated that
government ownership of banks met with the
approval of 31 per cent and with the disapproval
of 69 per cent of the people interviewed. We
hope this favorable feeling towards the banks
will continue, but as president of the Morris Plan
Bank of Oklahoma City, you pointed out that,

‘ ‘ While we must continue to do business in our
present bank buildings,” you said, “ wherever
possible this cold feeling should be eliminated if
we want to encourage people to do business with
us. We must make our banks into places which,
because of their atmosphere, invite customers to
meet their banker— who no longer wears a long
black coat and looks with glassy eyes on the source
of his livelihood. Our way of doing our banking
business has changed and our quarters should
reflect that improved attitude.”

“ France recently socialized its banks with prac
tically no protest from the people of France. Eng
land has recently socialized its banks with prac
tically no protest from the customers of those
hanks. If agitation should come in America for
the government to take over all banking, would
there be a popular protest against such action?
“ If the banks of the United States are serving
enough of the rank and file of our citizens, the
socialization of banks in America will not come.
Our banks must handle consumer credit and must

There is no more personal business in the world
than banking. Everything should be done by
bankers, not only in their personal contacts
with their customers, but also in their banking
quarters to establish a cordial, pleasant and
friendly relationship with all those who enter
their banks.

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Federal Reserve Bank of St. Louis

Northwestern Banker, March,

1946

WHERE FRIENDLINESS IS A TR AD ITIO N . . .
WHERE THE PROM PT. EFFICIENT H A N D '

LING OF EVERT CORRESPONDENT AND
TRANSIT ITEM IS AN INVIOLABLE RULE

"Û oum A

R a n k"

T he C entral N ational
BANK AND TRUST COMPANY
2 >ed
MEMBER

FEDERAL

Mo¿ne¿,Dowa
DEPOSIT

0
Northwestern Banker. March,

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

1946

INSURANCE

CORPORATION

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

T w enty T im ely Tips on
W h olesa le and H etail
Some of the Things the Banker Needs to Watch When
He Goes Into the Installment Sales Financing Field
By GEORGE E. LARSON
Installment Sales Advisor
Scarborough & Company, Chicago

N MORE than thirty years of opera
tions installment sales financing has
proved to be a profitable business
and its development has never been
seriously retarded during this time.
Even during the depression, including
the bank holiday, this business has
carried on successfully. Most reason
ably well operated consumer credit
banks or finance companies have made
continuous and satisfactory progress.
Without a dissenting voice anywhere,
bankers proclaim we are now on the
brink of our most phenomenal growth
in history in this field. Banks are in
a position to benefit from a large
potential of new customers and to
prove that they are anxious to fulfill
their original mission—to serve the
public of the community in which they
are located. A simple explanation of
some of the troublesome experiences
of finance companies and banks in pre
war years will remove some of the
mystery attached to this method of
financing.
Banking publications during the
past two years have cited evidence
based on comparative volume in pre
war years to prove the advantages of
doing business through the dealer,
while bankers who have had consider
able experience in the direct field say
they will continue with the same
program.
Insurance men are spending large
sums to merchandise their agents’
services. The banker can benefit from
both approaches and should aggres
sively develop these new fields in the
interest of greater volume and profit,
while providing bank service to a
larger portion of the community popu
lation.

Wholesale Financing
Bankers can no longer justify their
failure to enter this field of financing
by the statement that the automobile
or appliance business has been too
hazardous or that the individuals en
Banker, March, 1946
Digitized forNorthwestern
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gaged therein are not “high-grade”
business men. Admittedly, any new
field of business enterprise has prob
lems not previously encountered, but
these fields of merchandising were
well seasoned in prewar years. The
profit possibilities for both are obvious.
The experience of years has made the

trust receipt and be sure to register
the statement of trust receipt financ
ing where state laws so provide. If
used cars are financed for wholesale
credit, be certain that the certificate of
title is obtained and shows no other
encumbrance.
2. Make sure that the dealer is not
asking your bank to finance inventory
already held as security by another
lending agency.
3. Make commodity checks of mer
chandise floor planned and if the car
or appliance has been sold, verify the
date sold and delivered—from the
dealer’s records, if possible. If there
has been a delay of more than a day
or two in payments by the dealer for
merchandise sold, a “float” is consid
ered to have existed.
4. If a number of sales are reported
at the time of inspection, reinspect
within a few days even though the
merchandise was paid for at the time
of the previous visit. The dealer may
learn that an inspection is made at a
certain time of the month and follow
a practice of withholding payment
until the inspection is made or a few
days prior thereto.
5. Make inspections without previ
ous notice to the dealer. If the dealer
GEO RG E E. L AR SO N
objects to an inspection at any time,
“ Banks Are a Dominant Factor’'
it is a definite indication that some
men who ventured their capital in items have been sold out of trust and
these fields high-grade business men
he is not prepared to pay for them.
today, and while there are still haz
6. Do not permit the dealer to drive
ards that cannot be foreseen, as there
floor planned cars. Such cars normally
are wherever the human equation is are not covered by collision insurance
concerned, insurance protection is and a loss may result which the dealer
available to the bank, just as it is for must repair at his own expense. Ar
embezzlement or other bank risks.
range a demonstrator plan with ade
Assuming the bank has made the quate monthly curtailments to offset
usual credit and character investiga depreciation.
Limit
demonstrator
tion of a dealer, let us consider some
transactions to the actual number
of the risks and preventive measures used by the dealer’s organization.
7. If the dealer is slow in making
developed in wholesale or floor-plan
relations with the dealer.
curtailments on merchandise in his
1.
Be sure to obtain a bill of sale possession ninety days, when mer
from the factory or distributor to chandise conditions return to normal,
prove title on new cars handled on a
(Turn to page 72, please)

H oiv M tich Capitili Should Your
Bank H a ve?
C a p ita l in c r e a s e s A r e M a d e —
1. To increase the limit on individual loans.
2. To add prestige to the institution.
3. To provide fullest measure of protection.
4. To provide a complete and modern service.

By CARL B. SEBRING
Bank Commissioner for Oklahoma

NCREASES or decreases in capital
may be recommended by supervi
sory authority, but the decision as
to compliance with the recommenda
tion rests solely with the directors of
the individual hanking unit. However,
in no case can a decrease be made to
a smaller minimum capital than that
required by the statute governing that
particular bank.
Supervisory authorities h a ve at
tempted to secure increases of capital
by persuasion and, in some instances,
by requiring a stipulation by the bank
officers that the bank will increase cap
ital from time to time, as its total lia
bilities increase.
Some supervisors are really prodi
gious in the display of inventive gen
ius. Remember a short time ago when
the emphasis on capital ratio had
reached amplified fortissimo volume?
Now that same emphasis has been re
duced to a muffled pianissimo whisper.
The change reminds me of the little
woman who always whipped her hus
band every time she made a mistake.
The chip has been removed from the
capital ratio bug, and the inventors of
that pseudo-program fervently hope the
actual bankers will soon forget it. Un
sound ideas preclude safe advice and
it is only when we discover and correct
such ideas that progress can be made.
I have always maintained that the
only safe yardstick for measuring cap
ital ratio is of asset condition.
Capital requirements cannot be ac
curately determined during a period
of inflationary conditions. We all real
ize that deposits are abnormally high
at present. I know some experienced

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observers expect deposits to decline in
the future as they follow the inevitable
decline in national income, resulting
from the change from wartime to the
more settled conditions of a peacetime
era.
Other experienced observers express
an opposite belief in deposit trends.
The broader picture is that the man
agers and owners of our respective
units have almost universally recog
nized the need for additional capital
as the resources of the community
which they serve develop, and as their
customers become more prosperous.
They have voluntarily increased their
capital for two or more reasons. First,
sometimes to increase the limit on in
dividual loans the bank can make in
order to better serve their community
needs. Second, to add prestige to the
institution, mainly with the idea, the
bigger the bank, the larger and more
elaborate the building in which the
bank is housed, the more inviting the
institution will be to the public. Also,
to provide the fullest measure of pro
tection, together with a complete and
modern service for its customers. I
am sure these three reasons are fa
miliar and are understood by all of you
as they are common practices in all
our states, and are not confined to
either the state or national systems.

Supervisory Agencies
There are four separate supervisory
agencies operating in this country, and
three of them exercise the privilege of
examining certain state banks, while
National banks have only one super
vising agency responsible for their ex
amination and control. Under existing

CARL B. S EB R IN G
“ Let the Banker Manage His

Bank”

laws, supervisors and their examining
staffs are not permitted to own stock
in state banks. This is a meeting of
state bank supervisors to which we
have invited representatives of the
other supervising agencies. We have
also given them preference on the pro
gram and have invited them to bring
us the results of their study, their
ideas, and their suggestions. We wel
come them, and it might be said we
have asked them to quarterback the
game and call the signals. This is as
it should be, if we are to attain a
cooperative understanding and achieve
the best results.
We realize that there is, as it should
be, friendly rivalry between the two
systems of banking, but are equally
sure there is no jealousy between the
members of the two systems. From
the record our state banks have made
in handling the business entrusted to
them, I have no apology to make for
the contribution they have made in
the development of this country.
All supervisory authorities have a
personal and mutual responsibility in
their efforts to intelligently and cour
teously recommend correction in bank
er practices, where such practices ap
pear to be unsound. They can offer
suggestions and require the discontin
uance of unsound practices. Yes, they
can also make mistakes -— however,
when they find that they have erred,
the real supervisor admits the mistake
and immediately begins the correction.
Did you ever hear of a supervisor who
immediately began to knock some in
dividual banker’s ears down when he
(Turn to page 73, please)
Northwestern Banker, March,

1946

News and Views
OF THE BANKING WORLD
By C liffo rd De Puy

We heard a speaker make this state
ment the other day, and we think he is
absolutely correct. “If all economists
were laid end to end, they wouldn’t
quite reach a conclusion.”
William Huckel, assistant cashier of
the Chase National Bank, was elected
president of the New York Financial
Advertisers at their annual meeting.

correspondent banking relationships
between the banks across the coun
try.”
It is estimated by Government econ
omists that the national income for
1946 will exceed $140 billion. These

figures could be compared with the
1945 peak of $160 billion.
Dudley L. Parsons, for many years
public relations manager of The New
York Trust Company, and more re
cently vice president and general man
ager of William E. Rudge’s Sons,
printers, has announced the opening of
a public relations office under his own
name at 52 Vanderbilt Avenue, New
York 17, New York.
Advertising Age carried this inter
esting paragraph in one of its recent
issues, “ Such is fame dept.: Not a
single contestant in Phil Baker’s ‘Take
It or Leave It’ show for Eversharp was
able to answer the jackpot question,
‘Who is the Secretary of Commerce?’
“Henry Wallace’s admirers would
probably insist that he isn’t such a
specialized product, since his name is
venerated in varying degrees by farm
ers, labor unions and business men.”

W IL L IA M H U C K EL
President New York F.A.A.

Other officers elected were: First
vice president, P. Raymond Haulenbeek, vice president of the North River
Savings Bank; second vice president,
Earl S. MacNeill, trust officer, Conti
nental Bank and Trust Co.; secretary,
Ree C. Hornney, financial advertising
manager, New York Post.
Perhaps the best analysis of the
labor disputes was summed up by V .
Hubert Johnson of Edgar, Nebraska,
who is suggesting that the Farmer’s
Union should do a little striking on its
own account. As he put it, “We are
not taking sides with capital or labor.
We simply want both sides to produce
the things we need and to do their
wrangling on their spare time.”
Hugh H. McGee, vice president of
the Bankers Trust Company, New
York, believes that “the very backbone
of our privately chartered banking
system in this country consists of the
Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

know, several million new families
have been formed and these will have
to be housed and supplied with auto
mobiles, electric gadgets, community
facilities and the other goods and serv
ices which are a part of the American
standard of living. Here is a tremen
dous market for the products and
services of American business.
“Another new market for the post
war period is a temporary one but it
is large. I refer to the deferred de
mand which has accumulated in re
cent years because production in our
durable consumer goods industries
was shut off when the nation’s produc
tive organization was mobilized for
war.”
Phil R. Easterday, chairman of the
board of the First National Bank of
Lincoln, Nebraska, in discussing the
government bond market, says, “Up to
the present time we have had no hesi
tation in recommending to banks that,
for their more permanent Government

Carl Snyder, nationally known au
thor and economist, died recently at
the age of 76. He was the author of
“Capitalism the Creator” and many
other excellent books on economics.
Mr. Snyder was former president of
the American Statistical Association.
He was born in Cedar Falls, Iowa, and
was educated at the State University
of Iowa, but at the time of his death
lived in Santa Barbara, California.
Edward A. Pierce of Merrill Lynch,
Pierce, Fenner & Beane, 70 Pine
Street, New York City 5, has just pub
lished a very interesting booklet, “A
Primer for Investors,” which covers
everything from “Government Securi
ties” to “Brokerage Service.”
This is a very complete and worth
while addition to any financial library.
Murray Shields, vice president of the
Bank of The Manhattan Company,
New York, believes that we should
view our economic future with some
optimism because we have several new
markets to develop. “ During the war
years,” says Mr. Shields, “as we all

P H IL R. E A S T E R D A Y
“ Banks should own longer bonds”

bond holdings, they should own a sub
stantial amount of longer bonds, with
special emphasis on the 1952-54 maturi
ties. We continue to feel that such
maturities should constitute a sizable
proportion of a bond portfolio.”
George Allen, who was recently con
firmed by the United States Senate as
director of the Reconstruction Finance
Corporation, has been the subject of

17
quite a bit of discussion because of
his representation in Washington of
various corporations.

A b o u t itu n h ors You

One writer announced his election
this way, “George Allen, who is known
in Washington as the man who makes
President Truman laugh, was ap
proved by the senate as a member of
the 20 billion dollar Reconstruction
Finance Corporation after lively de
bate on the question why big corpora
tions should pay a White House jester
850,000 a year. It is rumored in Wash
ington that Allen eventually will be
come chairman of the RFC. The ami
able Allen’s golf and poker companions
in the senate stood loyally by him.”
Ensign Emerson De Pay, U.S.S.
Admiral R. E. Coontz, in a recent letter
from Japan, said, “In Yokohama I vis
ited the Banker’s Club. It was a very
fine building directly across the street
from the Stock Exchange and a Bank.
It is almost on the waterfront so it did
not get bombed. The only things re
moved from the club were the radi
ators which were used for the making
of munitions.”

In another part of his letter, he
wrote: “I might say in passing that
the husband in Japan is the master
of the house—what he says goes.
When marriage is contemplated, the
parents are the ones who pick out the
boys and girls that are to be married.
The girl has a small trial period where
she comes and lives with the boy’s par
ents and at the end of this time, if
everything has gone along smoothly,
they get married. After being married,
if the girl does not have any children
the parents can kick her out if they
so desire. When a girl leaves home to
get married they give her up as dead—
she is no part of her original family
any more. After a Japanese girl is di
vorced her family quite frequently will
not take her back. That is where a
great many of the Geisha girls come
from. We always think of the Geisha
girls as prostitutes but this is not true.
The true Geisha girl is an entertainer.
She can sing, dance and put on plays.
High class people go to a Geisha House
the same as we would to a movie. Of
course there are also other kinds of
Geisha girls and about which we have
heard so much.”
THE VALENTINE influence of last
month permeated the N orthwestern
B anker office as Miss Marguerite
Brown, office supervisor for the past
seven years, changed her name to Mrs.
Dan T. Blandford.

Mr. Blandford was formerly in busi
ness in Sioux City but in a few months
he and his wife will move to Oakland,
California, to make their future home.

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PHILIP R. CLARKE
“ Makes deserving projects a success’ ’

I N 1907 at the age of 18 years, an ambitious, energetic young man began his
I financial career as a salesman with Farson, Son & Co., Chicago investment
bankers. From 1910 to 1913 he managed the Chicago office of O'Connor and
Kahler investment bankers, then at the age of 24 left them to organize his own
investment banking firm. Today, 39 years after he first started in the bank
ing business, this man, Philip K. Clarke, presides as chief executive over the
City National Bank and Trust Company of Chicago.
Philip R. Clarke was born June 10, 1889, in Hinsdale, Illinois, the son of
Robert William and Mary Evelyn Clarke. Mr. Clarke was educated in the
Hinsdale high school. In 1910 he married Louise Hildebrand and they have
three sons, Philip R., Jr., Normati F., and David G. Clarke. Last month Mr.
Clarke prevailed upon Philip, Jr., just released from the navy as a lieutenant
commander, to enter the banking profession in the City National's transit
department.
A t the outbreak of World War I the investment firm of Clarke & Co. was
voluntarily liquidated and in 1919, Mr. Clarke organized and became presi
dent of the Federal Securities Corporation until its sale in 1929 to the Central
Trust Company of Illinois. H e ivas elected president of the latter institution
in 1930, serving until 1932 when he helped organize and assumed his present
duties as president and director of the City National Bank and Trust Com
pany of Chicago, which now has deposits of more than $337,000,000. He was
also president of the Hinsdale State Bank from 1928 to 1932.

(Turn to page 58, please)
Northwestern Banker, March,

1946

H ow a Hank Celebrateti
Its
EHamond
Pictures in the Lobby of the First National Bank of
Creston, Iowa, Attract Many Customers and Friends
N OBSERVANCE of its seventy-fifth
aniversary the First National Bank
of Creston, Iowa, has in its lobby a
unique display of pictures represent
ing Creston life of seventy-five years
ago when the bank was founded in
1871. Pictures of several displays are
shown on this and the opposite page.
After discussing several ideas to ap
propriately celebrate the diamond an
niversary, officers of the bank decided
to give bank patrons a peek into the
past with a pictorial review of the
1870’s. Immediately after the first pic
tures of stern Creston patriarchs posed
stiffly in their high, starched collars
appeared on the bank lobby display
board, the townspeople clustered about
eyeing these scenes of “life in the
good old days.”
One thought raced through every
one’s mind and they dashed home and
began rummaging through attics,
cellars and various depositories of
family heirlooms and history. In no
time at all the bank’s simple display
board had snowballed into a fullgrown picture history covering prac
tically every person, building and busi
ness in Creston 75 years ago. The
supply of material was so heavy that
Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

bank officials have had to use one whose able management it has re
entire wall with a banner as shown
mained to the present time, and has
at the top of this page and in addition enjoyed, and has to a large degree, the
have had to remove panels of pictures
confidence of the public. This is one
from time to time in order to make
of the few banks that kept open doors
room for more that hadn’t been up yet.
during the panic of 1872, and paid all
At the last report there was still a checks on presentation.”
The Colby history further states,
good supply of historical material to
be shown.
“ In April, 1871, the town was incor
A.
E. Jensen, president of the First porated, and in the first municipal elec
National Bank for 15 years, has also tion about fifty ballots were polled, a
been named president and director of small candy box being used to receive
the Mid-City National Bank of Chica the ballots. . . . It is here that the
go. Bert Tallman, vice president and company (Chicago, Burlington &
Quincy Railroad) have a division sta
director of the bank since 1904, will
assume active direction of the bank’s tion and where they have the largest
affairs.
engine house in the west, if not the
continent. A large number of the men
In reviewing a history of the bank
since its founding in 1871, Mr. Jensen employed by the company live and
and Mr. Tallman have turned up some thrive in Creston. They here receive
interesting biographies, not only of their wages, and as all busy com
the bank but of the Burlington rail munities are wont to do, they spend
road which had division shops there their money at home. Over $40,000 per
at that early date and for which a month is here paid to the employes of
the road, by the C., B. & Q. railroad
great number of the townspeople
company and is by the men paid out
worked.
According to Colby’s history of in Creston. Some of the finest homes
Union county, edited in 1876, “The old in town are built and occupied by rail
est bank, that of S. H. Mallory & Com road employes. Thus the surplus earn
pany (now First National) was started ings of the men are being kept at
home, and the profits accruing are
in 1871 by A. D. Temple, cashier, under

CRESTON’ S FIRST MAYOR, Col. S. 1).
Swan, is shown in picture at right, the
center man in group of live former mayors.
The building at top is the town’s first
■schoolhouse. Directly below it is pictured
the ‘ ‘ Patt & Carpenter Block,” a threestory building of the ‘ ‘ seventies,” which
was ‘ ‘ then occupied by sundry business
concerns with the Masonic Lodge on the
third floor.”

used in increasing facilities for the
benefit of all.”
Oldest employe of the bank is R. I.
Pinkerton, vice president, who joined
the bank 46 years ago as assistant
cashier. When Mr. Tallman joined the
bank in 1904 there were 13 banks in
Union county, five of them in Creston.
Today there are five banks in the
county, two of them in Creston.
The year 1881 marked the end of
the bank’s and Creston’s first decade
during which the first fire company
was organized, a majority voted a tax
for coal prospecting in the county,
the high school graduated its first
class, General U. S. Grant paid a visit,
the town had grown from three houses
to a population of 5,116 and the bank’s
total resources were $180,602. At pres
ent the First National’s resources are
$4,863,753.
In publicizing its diamond anniver
sary, the First National has run full
page ads in the Creston Neivs Adver
tiser drawing reader attention to the
celebration and bank display. As a
result of this practically everyone
drops by the bank to see the pictures,
bring some in, then come back again
to see if new ones have been put up.
This keeps customers coming into the
bank, in addition to building more
prestige to their 75-year-old reputation
based on the motto, “We strive to
merit the patronage of the community
we serve.”
Other officers in the bank in addition
to Mr. Jensen, Mr. Tallman and Mr.
Pinkerton are G. R. Heflen, cashier,
and Deane Smith, S. E. Quin and M. I.
Anderson, assistant cashiers. Direc
tors are Frank A. Ide, chairman;
Homer F. Harsh, George D. Newcomb,
Mr. Tallman and Mr. Jensen. # #

WELL-DRESSED LADIES OF 1870’ S

traveling oil the Burlington & Missouri
Railroad are shown at right standing be
side a high-powered ‘ ‘ Iron Horse.”
In
center picture above the locomotive is a
view of Creston and railroad yards with
a train made up of freight and passenger
cars. In bottom picture can be seen an
other picture of yards with depot, round
house and machine shops of the C., B. & Q.
in background. The two poles sticking up
in foreground are manual switches used
at that time.

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Federal Reserve Bank of St. Louis

W hat Theiß S ah t a t the
Tr a s t Í
oa fe rra
Bankers and Economists Discuss
Current Trust Problems in New York

THE CONDITIONS OF LABOR PEACE
By DR. LEO WOLMAN
Professor, Columbia University, New York

“ One cause of (labor) trouble is the general state of our
labor law and the way it is administered. . . . Unlimited
powers (have been) bestowed upon . . . the National
Labor Relations Board. . . . This board does what it pleases
. . . it makes no pretense at being fair and impartial. A
second cause of trouble is the lack of correct, frank and
clear statement of economic policies. Washington talked
as if the country were faced with large-scale inflation,
which could be avoided only by rising wages. If the payroll
(the largest element of cost) is raised 10, 15 or 20 per cent,
there is no way out but to raise prices.
“The prerequisites to a more peaceful labor situation
are better and fairer enforcement of labor laws and the
willingness to face the stubborn economic facts of the
times.”

2 . BANKING'S OBJECTIVES IN 1946
By FRANK C. RATHJE
President, A.B.A. and
President, Ch/casfo City Bank and Trust Co.
“ The postwar period gives great promise of a high level
of business and industrial activity. Individuals and busi
ness units now hold currency and bank deposits of 150
billion dollars and 100 billion dollars of government bonds.
Consumers’ goods purchases which had been deferred dur
ing the war now represent a tremendous backlog of de
mand.
“Banking’s objectives for 1946 are to provide credit facil
ities for every business and individual use which will
contribute to the sound health of the economy and to
avoid all investments which will create or aggravate de
velopments which would impair the economic stability of
the nation.”

PUBLIC RELATIONS PROGRAM
By DALE BROWN
President, F.A.A. and Assistant Vice President,
National City Bank of Cleveland

“Management, in both industry and banking, has come
to an important decision that an intelligent application of
public relations has been and will continue to pay off in
good will which in turn means greater profits. Speaking
of American business as a whole it has many opportunities
ahead. It has the problem of introducing scores of new
products; it has the problem of creating new desires and
bringing old ones to life again. The job is to see to it that
our distributive system is improved, that more and more
people use more and more goods. This applies as much
to bank service as it does to industry because there are
millions of people today who have never used any bank
service.
Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

“Our real competition is not the bank across the street.
It is public inertia. Not enough people understand banks
and banking. Not enough people use as many services as
they need.
“No bank today can hope long to survive without an
aggressive and intelligent public relations program that
permeates the officer and staff group, from president to
porter—a program well developed and long range, and
one participated in by all, not this week or next week, but
throughout all of the years, because public relations is
not and never will be static. It is alive, virile, changing
and moving.”

FORECASTING ECONOMIC WEATHER
By DR. MARCUS NADLER
Professor, New York University, New York

“As a result of the war and the increase in wages that
has taken place and that will take place in the near future,
a new middle class has arisen which in turn means that
there will be new demands for all kinds of commodities
which did not exist before. All this augurs well for the
future of the nation. From the purely physical aspect
therefore, and looking at the future primarily from the
economic point of view, the outlook for the United
States is as good as possible.
“From a standpoint of human relations, the outlook is
not as rosy. There is a conflict between capital and labor,
not only over wages but also over the degree to which
labor should have a voice in the management of business.
These problems will undoubtedly be solved in the not
distant future.
“The principal problems that will have to be solved
during the present year are: (1) the prevention of a serious
increase in prices of commodities, (2) the adoption of a
sound debt management policy, and (3) an adequate han
dling of the labor problem.
“ The handling of the fiscal affairs of the country since
V-J day does not inspire a great deal of confidence. While
the deficit for the fiscal year 1946-47 has been reduced to
about $4,300,000,000, yet it is one of the largest deficits in
peacetime. Hence one may reach the conclusion that the
government is not as yet fully aware of the necessity of
balancing the budget.”

PROBLEMS IN EMPLOYES' TRUST FIELD
By ESMOND B. GARDNER
Vice President, The Chase National Bank

“An employes’ trust is fundamentally a financing ve
hicle or method of carrying out the terms of an employe
benefit plan and, in its simplest form, an employe benefit
plan merely sets forth the rules to determine who is en
titled to a benefit, when he is entitled to it, and how to
determine its amount. The benefit can, of course, take the
form of a pension after retirement, a death benefit, pay
ments upon disability, or any other severance of employ
ment; other events can also be used as bases for benefits.”

The Omaha
National Bank
COMPLETE

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Federal Reserve Bank of St. Louis

M em ber

BANKING

Federal

Deposit

Insurance

SERVI CE

Corporation

Northwestern Banker, March,

1946

W hat

the P ub tic
W ith its M o n e y
A Survey That Tells You Where the Money Goes

OW many people have checking
accounts? How many people
have savings accounts? What
about postal savings? Who puts
money into savings and loan? Are
there people who make use of none of
these facilities?

Here you will find these questions
answered.
In a recent survey made by The
Iowa Poll of the Des Moines Sunday
Register, a representative cross-section
of Iowa people were interviewed to
find the answers as to where thrifty
persons put the money they save, and
whether or not they make use of one
or more of the banking facilities avail
able in their community. Compared
with past interviews obtained in the
same manner on other subjects, the
information and figures presented here
are accurate to a very small fractional
percentage in either a plus or minus
direction, and are published here in
the N o r t h w e st e r n B a n k e r for the first
time. While the interviews were ob
tained from Iowa residents, the re
sults of the survey should apply iden
tically to any other section of the middlewest.

(a) .
(b)
(c)
<d)
(e) ..

Cheeking account in a hank?
Savings account in a hank?

Upper
Middle
84%
50
17
13
0

Lower
Middle Low
30%
68%
41
18
6
16
0
5
11
58

Further analysis shows that use of
bank facilities in the form of checking
and savings accounts is higher among
the two upper income groups. In
other words, they have checking ac
counts and bank accounts in about
twice the proportion of their represen
tation in the total population. This is
not true of postal savings in the high
est income group, but building and
loan are high in proportion.
Among the lower middle group,
checking and savings accounts are
found in about the same proportion as
this group is of the total population,
slightly higher, but not significantly.
The same is true of building and loan.
However, the proportion of the people
in this group who have postal savings

Field reporters asked the following
questions:
Do you keep any of your money
in any of the following:

Top
100%
54
8
23
0

59%

Savings A cco u n t

Building and loan?

Building & Loan

None ?

Northwestern Banker, March, 1946

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

When the group who have building
and loan are separated, 78 per cent of
them have checking accounts, 50 per
cent savings accounts and 25 per cent
postal savings accounts. # #

Checking A cco u n t

Postal Savings

An additional breakdown of the re
plies was accomplished by separating
into economic groups, with the follow
ing results:

When the group who have postal
savings accounts are separated, it is
found that 58 per cent of them have
checking accounts, 36 per cent have
savings accounts and 10 per cent build
ing and loan.

W here the Money G oes (Totals)

Postal savings account?

Charted on this page are the percent
age totals of how those interviewed re
plied to each of the five questions, fol
lowed by a breakdown of the replies
into city, town and farm residents. It
will be noted that the percentage in
each column total more than 100 per
cent. The reason is, of course, that
multiple answers are involved.

is noticeably higher than their ratio
to the total population.
There are also some interesting rela
tionships between the different types
of services. Among the group who
have checking accounts, 36 per cent
have savings accounts, 13 per cent
have postal savings accounts and 7
per cent have building and loan ac
counts.
Among the group who have savings
accounts, 61 per cent have checking ac
counts, 13 per cent have postal savings
accounts and 7 per cent have building
and loan accounts.

None
Total

C ity

Town

Farm

(a) Checking A cco u n t

59%

49%

54%

69%

(b) Savings A cco u n t

35%

42%

30%

29%

13%

17%

12%

23%

25%

24%

20%

(d) Building & Loan
(e) None

The money your depositors re

the day o f receipt.
A ll you have to do is ask your

ceive from the sale o f live stock
speedily trans

shippers to instruct their com

ferred to their credit in your

mission firms to route the pro

Bank if routed through us. The

ceeds o f their live stock sales

Stock Yards post office is just

through this Bank. We shall be

across the street and the advice

glad to supply you with instruc

o f credit is mailed to you on

tion cards for this purpose.

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

Chicago

LIVE STOCK
BANK

o / Z o / u c a / fO

./ { « / ¿ o t t a /

E S T A B L IS H E D

1868

U N I O N STOCK YARDS
DAVID

REIM ERS,

President

M em ber Federal Deposit Insurance Corporation

Northwestern Banker, March,

1946

LEGAL

W hen

M orUjatje

isCun

Hefieieneif •iudi/nient He Obtained?
Q.

A mortgage held by a Nebraska
bank on a farm in that state went into
default and the bank sued to foreclose.
As an incident to the foreclosure the
bank, on proper showing, had a receiv
er appointed. Some of the defendants
resisted the appointment on the
ground that a deficiency judgment
could be obtained against them which,
they alleged, would be collectible.
Should such defendants prevail?

No. While the bank might have ob
tained a deficiency judgment against
anyone personally liable for the bal
ance of the indebtedness owing, it is
not necessary that it do so. A mort
gagee is entitled to have his debt satis
fied out of the property pledged as
security for its payment without being
forced to resort to other remedies.
G)* A life insurance company issued a
policy to the wife of an Iowa banker.
The policy was on the life of the wife
and named her husband as beneficiary.
Subsequently they were divorced and
thereafter the wife died without hav
ing changed the beneficiary in the pol
icy. Is the husband entitled to recover
thereunder?

Yes. Where the designation of a hus
band as a beneficiary in a life insur
ance policy is valid in its inception,
which was the case here, the designa
tion remains so even after the marital
relationship has been terminated by
divorce.

Iowa, as do most states, has a stat
ute to the effect that the guilty party
forfeits all rights acquired by marriage
when a divorce is decreed. Suppose
that, in the preceding question, the
wife had obtained the divorce on the
basis of the faults of the husband.
Could such statute be applied to de
prive the husband of his rights as ben
eficiary in the insurance policy?

No. In a recent decision involving
similar facts, the Iowa Supreme Court
held that the statute providing that
the guilty party forfeits all rights ac
quired by marriage when a divorce is
decreed cannot be applied to deprive a
husband of his rights as beneficiary in
Northwestern Banker, March,

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

1946

This and Other Timely Legal
Questions Are Answered
by the

divert water from its course of natural
drainage and cause it to flow upon a
plaintiff’s land in an unusual and un
natural manner.

LEGAL DEPARTMENT

an insurance policy on the wife’s life,
upon the wife securing a divorce,
where the wife failed to change the
beneficiary.
Q . A Minnesota banker was a direc
tor of the local cemetery association.
Such association purchased a farm ad
joining the cemetery and made a plat
thereof that would show how such
farm might be used in expanding the
cemetery. The association did not,
however, sell any grave plots on the
farm and the land of the farm was used
simply for agricultural purposes. Ac
tually, the farm could not be used for
cemetery purposes without a change in
the zoning restrictions. AVas the farm
exempt from taxation as a public bury
ing ground?

No. In a decision involving similar
facts the Minnesota Supreme Court
held recently that land owned by a
cemetery association is not exempt
from taxation as a public burying
ground under the laws of that state
unless the land is actually and pres
ently used for the burial of the dead.

Snow, an Iowa banker, owned a
farm in that state, the elevation of
which was higher than that of the ad
joining property. In doing certain
road work the highway authorities
commenced the construction of a road
which would operate to dam the sur
face water flowing from Snow’s land
back on to his property so that it was
damaged thereby. Could they be pre
vented from completing the road work
in that fashion?

Yes. Iowa highway authorities have
the duty to place openings in highway
drains so as to permit surface water
to escape in its natural course from
higher to lower lands. An injunction
will lie to restrain highway officials
from so improving a highway as to

Brown robbed a Michigan bank
and was convicted of the crime. A sen
tence of life imprisonment was prop
erly imposed on him and he com
menced to serve such sentence. There
after the trial court sought to reduce
the sentence. Could it do so?

No. In Michigan, where a sentence
of life imprisonment for robbery has
been properly imposed and has been
partly served, the trial court does
not have power to reduce the sentence
since to permit such power would in
fringe on the pardoning power of the
governor and would violate the juris
diction of the parole board.

Curtain, an Iowa banker, died,
leaving no will and a substantial
estate. His next of kin was his nineyear-old daughter who had no guard
ian.
Could an administrator be
appointed for the estate on the applica
tion of such daughter through a next
friend?

Yes. The administration of the es
tate of a decedent may be properly
granted to a suitable person of the
court’s selection upon an application
made by the decedent’s daughter and
next of kin through a next friend,
though the daughter was a minor and
no guardian had been appointed for
her. The privilege of having an ad
ministrator appointed on her applica
tion is a valuable and substantial right
belonging to the daughter notwith
standing her minority.

Horton, a North Dakota banker,
owned a farm in that state on the Mis
souri river. At the time of statehood
there was no island opposite the farm,
but during the years one was formed.
Did such island belong to the state of
North Dakota?

Yes, according to a recent North
Dakota Supreme Court decision. The
(Turn to page 75, please)

New

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Federal Reserve Bank of St. Louis

\/orkCityObligations-State and other high grade
Municipal Monds
☆

Bond Department

THE C HA S E N A T I O N A L B A N K
OF THE CI TY OF NE W Y OR K
Pine Street Corner of Nassau

ZeU MJhtover 2-6000

M l System

Teletype ft. y. 1-1010

Northwestern Banker. March,

1946

l
*

W h y Hankers A r e Cussed
HAMMERMILL
COLUMN

*
★

A n d iHseussed

N o w th a t the w aste paper drives are
over, a g rou p o f slick forgers are con
du ctin g a drive o f their ow n on the w aste
baskets o f banks. T h e y h ave discovered
th at there is gold in those unobtrusive,
utilitarian ob jects.

★

The scheme is simple. No elaborate
preparation is necessary. And the forged
checks are cashed right there in the bank
that services the accounts!

H ere’s h ow it operates: T h e forger
enters a bu sy b a n k and m oves from one
w ritin g ta b le to an oth er b efore he fills
ou t a deposit slip. O ccasion ally his pen,
or a new spaper, or som e other o b je c t
he’s h olding, drops to the floor, an d he
stoops to retrieve it.

★

By MARSHALL CORNS, President
Marshall Corns & Co., Chicago
EARS of association with bank doesn’t he is not the right man for
executives under various circum the job.
stances, and intimate knowledge of
If he belongs to local clubs he is
their activities and affairs, both public
and private, have resulted in the con social-minded; if he doesn’t he is not a
clusion that bankers are misunder good mixer.
stood and very much maligned.
If he is active in community affairs
While every banker is deeply con he is a publicity-hound; if he isn’t he
cerned with the problem of getting
is not civic-minded.
along with people and pleasing every
If he smiles and is pleasant to all
body, he soon learns it is an impossible
he
is a flirt; if he doesn’t he is marked
task because:
down as a grouch.
If he loans you money on your
If he is loquacious in speech he is a
bore; if he isn’t he is dull company.

★

If he gives his children a good edu
cation everyone wonders where he
gets the money; if he doesn’t he lacks
family pride in keeping with his posi
tion in the community.

I f he notices a guard watching him,he'll
step into a line with a deposit slip in
his hand. But when he reaches the teller's
window he'll politely ask for change of
a perfectly good $10 bill.

★

—

★

W hen the forger leaves the b a n k he
has a few gold n uggets in his p ock et —
the discarded, p a rtially finished, or er
roneous slips th row n a w a y b y bon a fide
custom ers. E a ch tim e our forger has
dropped som ething, h e’s picked up such
crum pled slips from the w astebaskets.

If he owns his own home and
through
frugality acquires some
means, he makes deals on the side; if
he doesn’t people want to know what
he does with his money.
If he takes a cocktail he is a tippler;
if he doesn’t he is a prude.
If he dresses as becomes his posi
tion, he is putting on the dog; if he
doesn’t he has no pride.

Some of these slips contain the signa
tures of depositors. The forger has a
working model through the courtesy of
the bank's wastebaskets. The next day he
presents a small forged check (usually
under $40, made out to cash). Boldly
scrawled across the back is the notation,
“ OK for payment," followed by the sec
ond forged signature of the depositor.

★

Watch those wastebaskets! Be sure,
too, that your customers' checks are on
safety paper that is unfailingly relia
ble—the kind that any forger knows
cannot be tampered with. Hammermill
Safety is such a pap er.. .from a modern
mill where every step in the paper's man
ufacture is subject to almost infallible
laboratory tests.

★

Since th e easin g of w artim e restrictio ns
this fine ch eck p a p e r is ev en b e tte r than
e v e r . W e’d lik e yo u to com p are it w ith th e
p a p e r you a re now using . A n ote on you r
b ank le tte rh e a d w ill b rin g sam p les. Just
ad d ress Ham m erm ill P a p e r Co m pan y, 1513
FRASER
East La k e R oad, Erie, P e n n sy lv a n ia .

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

M A R S H A L L CORNS
“ Bankers Are Misunderstood’’

★

T h e sm all am ount in volved keeps the
teller from inspecting the signatures too
closely. R ecen tly , w hen one m em ber o f
the gan g w as picked u p in N ew Y o rk
C ity, he h ad 15 checks a ll draw n against
the sam e ba n k , w hich he h ad planned
to use the next d a y .
★

If his wife is active socially she is
a climber; if she isn’t she is not help
ing his career.

proposition he is a smart banker; if he
turns you down he lacks vision.
If he listens to all your petty
troubles he is kindly and understand
ing; if he doesn’t he has a heart of
stone.
If he agrees with everything you
say he is brilliant; if he disagrees with
you he is stupid.
If he plays golf he isn’t tending to
business; if he doesn’t he should for
customer relations reasons.
If he leaves the bank at 4:00 o’clock
he has a snap of a job; if he stays until
late, he is foolish to work so hard.
If the bank progresses under his
guidance he is too ambitious; if it

If he contributes generously to his
church and the community fund he is
trying to show off; if he doesn’t he is
a tight-wad.
The average banker is a hard work
ing man, trying to make a living and
support his family in the best way
he knows how in one of the most
difficult jobs there is—operating a safe
and profitable bank and at the same
time pleasing stockholders, directors,
employes and, most of all, customers.
He knows he is worth more money
than he makes and can make twice as
much money with the same amount of
effort in any other respectable occu
pation.
He is a banker because he likes
people and the satisfaction which
comes from a job well done in the
public trust, ff ff

A n o th er lea d in g b a n k using H am m erm ill S a fe ty
Since 1850 the Marine Trust Company has
been linked with the diversified industrial life

out the city and surrounding communities.

of Buffalo. It is the city's oldest and largest
commercial bank, one of the most inf uential in

W e are happy that Hammermill Safety is the
paper on which checks of the Marine Trust Com
pany are lithographed. The sample check shown

the East, and has 37 offices located through

below is on straightline background design.

ARINE-*-

, uST C ompany

buffm-o,

MANUFACTURED

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

HAMMERMILL

PAPER

COMPANY,

ERIE,

PA. ,

FOUNDED

1898

Northwestern Banker, March,

1946

Straight Talk
In a year-end statement summariz
ing the prospects for business and in
dustry in the coming year, the presi
dent of a leading oil company states:
“We have heard much talk on the part
of OPA . . . to the effect that high
prices cause inflation. This is double
talk, designed to deceive and confuse
the public. . . . Actually, price increases
are one of the many disastrous results
that follow in the wake of inflation
and have nothing whatsoever to do
with the cause of inflation.
“ . . . Inflation can be halted only by

full production and by a reversal of
the fiscal, monetary and other policies
which set it in motion.
“The oil industry became one of
America’s great institutions for service
to the public because of its competitive
nature. If this industry is to advance,
it must be released from the OPA
economic strait-jacket. This is the No.
1 problem for all. In the face of that
problem, all of our other difficulties
pale into insignificance, for no indus
try can prosper when any govern
mental body exercises the power of
life and death over all or any of its
units.”

In Michigan Territory
Russel A. Swaney, former deputy
director, banking division, U. S. Treas
ury War Finance Committee for Mich
igan, has been appointed special repre
sentative of the Federal Reserve Bank
of Chicago and will represent the bank
in Michigan.
Mr. Swaney was in charge of the
banking division in the thirty-five
counties comprising the west half of
the lower peninsular of Michigan dur
ing all of the War Loan and Victory
Loan drives. His work for the Treas
ury was chiefly concerned with the sale
of government securities th ro u g h
banks.
Prior to joining the Treasury staff,
Mr. Swaney spent fifteen years in the
investment banking business in Grand
Rapids where he will continue to make
his headquarters.

Plans for 1946 Session

ILLIONS o f dollars are now being sent to Europe
by generous Americans to assist needy relatives and
friends. Based on experience after the last war, such remit
tances will run into hundreds o f millions annually—and
your bank undoubtedly has customers who will require
this service.
It is not necessary for you to establish costly connections
with foreign countries to render this service. Right here in
Chicago, we have the necessary facilities to transmit funds
to any country by mail, airmail or cable at a moderate cost.
W e will supply the necessary forms, bearing the name o f
only your bank, and keep you fully posted.
W hy not consult us now? W e are ready to serve you.

AM ERICAN NATIONAL BANK
AIMD T R U S T C O M P A N Y
OF C H IC A G O
LA S A L L E S T RE E T . I
Member Federal Deposit

OUR

BUS I NES S

Northwestern Banker, March,

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

1946

AT W A S H IN G T O N

gSjlM sgL: Insurance Corporation

HELP

B US I NE S S

The 1946 summer resident session of
The Graduate School of Banking of
the American Bankers Association will
be held at Rutgers University, New
Brunswick, New Jersey, June 17th to
29th, inclusive, according to the 1946
catalogue of the school, which has been
mailed to member banks of the A.B.A.,
G.S.B. students, and others.
Already there are indications of a
record number of applications for en
rollment. However, the student body
of necessity will have to be limited to
600 students, approximately 200 to each
of the three classes. This means for
the new class coming in this year the
first 200 applicants meeting the en
trance requirements will be accepted.
Three new members are to be added
to the faculty this year. They are:
Falkner Broach, vice president, Na
tional Bank of Tulsa, Tulsa, Oklahoma;
Harry C. Culshaw, vice president, The
Pennsylvania Company for Insurance
on Lives and Granting Annuities, Phil
adelphia, Pennsylvania, and Carl M.
Flora, vice president, First Wisconsin
National Bank, Milwaukee, Wisconsin.

Guaranty Trust Promotions
J. Luther Cleveland, president of
Guaranty Trust Company of New
York, announced the appointment of
Harold F. Anderson, Arthur H. Kiendl
and Russell L. Wardburgh, formerly
second vice presidents, as vice presi
dents of the company; Lt. Col. Guido
F. Verbeck, Jr., as assistant treasurer,
and Kenneth S. Stocker as assistant
trust officer. At the same time an
nouncement was made of the reap
pointment of Col. Daniel B. Grant, vice
president, and Col. Robert B. Menapace, second vice president, to their
former titles upon their return this
month from military leaves of absence.

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

NATIONAL SURETY
CORPORATION
V I N C E N T C U L L E N , President
•

FINANCIAL STATEMENT
December 31st,#1945
A SS E T S
Cash in B a n k s ................................................................................................ $ 3,282,233.65
Investments:
.

$11,438,768.36

All other B o n d s ............................................

Bonds o f United States Government.

1,456,194.54

Preferred S t o c k s ............................................

7,148,232.00

Common S t o c k s ...........................................

11,449,229-95

31,492,424.85

Capital stock o f National Surety Marine Insurance Corporation,
a wholly owned s u b s id ia r y .............................................................
Premiums in Course o f Collection, N o t over 90 Days Due .

2,172,903.54

1,502,980.65

Accrued I n t e r e s t .......................................................................................

44,418.02

Reinsurance and Other Accounts R e c e iv a b le ...................................

54,060.97

Hom e Office B u i ld i n g ...............................................................................

500,000.00

TOTAL ADMITTED A S S E T S ........................................ $39,049,021.68
L IA B IL IT IE S , C A P I T A L A N D
Reserve for Losses and Loss Adjustment Expenses .

SURPLUS
.

$ 4,169,253.28

Reserve for Unearned P r e m i u m s .....................................................

8,599,100.66

Reserve for Commissions, Expenses and Taxes

1,984,843.07

Capital S t o c k ..............................................................$ 2,500,000.00
Voluntary Reserve for Fluctuations in
Security P r i c e s ....................................................

4,278,021.37

S u r p l u s ......................................................................

17,517,803.30

Surplus to Policyholders

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

24,295,824.67

T O T A L ........................................................................... 539,049,021.68
Investm ents are carried on the basis prescribed by the N e w Y o rk Insurance D epartm ent—
b on d s bein g carried at am ortized or investm ent values and stocks at values based o n rates
prom ulgated by the N ation al A ssociation o f Insurance C om m issioners. I f investm ents were
carried at the D ecem b er 31st, 1945 market quotations, total assets, voluntary reserve for
fluctuations in security prices and surplus to p olicyh olders w ou ld be increased by $ 4 70 ,9 39 .4 3.
B on ds carried at $1 ,1 5 5 ,5 0 0 .0 0 are deposited as required by law.

Northwestern Banker, March,

1946

30
WHAT DO YOU THINK?
(Continued from page 9)
their participating in the making of
installment loans they will not have
much of a future.”
Frank P. Powers, president, Kana
bec State Bank, Mora, Minnesota: “ I
think, according to the latest A.B.A.
survey, over 10,000 banks in the Unit
ed States expect to handle installment
financing. With this increased inter
est in this type of lending, it seems to
me the banks should secure a much
larger volume of installment loans
than they did previous to the war.
Competition will be very keen, how
ever, and in order for the banks to

secure the business and properly serv
ice their customers—both retailer and
buyer—it will be necessary for them
to keep in step with the greatly ad
vanced methods of doing business.

Oklahoma Banker Named
The appointment of Ben N. Jenkins,
assistant vice president, First National
Bank and Trust Company, Oklahoma
City, Oklahoma, as an ex officio mem
ber for the current year of the Bank
Management Commission of the Ameri
can Bankers Association, was an
nounced recently by A.B.A. President
Frank C. Rathje.
Mr. Jenkins is also president of the
National Association of Bank Auditors

and Comptrollers. Since the Bank
Management Commission and the As
sociation of Bank Auditors and Comp
trollers are both concerned with the
operational aspects of the banking
business, Mr. Jenkins’ appointment to
the commission was a recognition of
this common interest and a step in the
direction of achieving an appropriate
cooperation between the activities of
the two groups.

To Vice President
Wallace L. Boss, formerly an assist
ant cashier of the First National Bank
of Saint Paul, was promoted to vice
president at the annual directors’ meet
ing.
Mr. Boss entered the Merchants Na
tional Bank of Saint Paul as a messen-

Ijau

Ate

9
* *i

The w id e exp erience w hich w e
have accumulated in this field is at your
disposal.
Members of Our staff will be glad
to advise you on this timely service, and
to assist you in the establishment of your
own department.

W A L L A C E L. BOSS
Now a Vice President

ger in 1923. Upon his graduation from
the University of Minnesota in 1928,
he returned to the Merchants National.
He became a First National officer in
1938, and has been a member of the
bank’s department of banks and bank
ers for the past eleven years.

Conference Speaker
K. K. DuVall, vice president of the
City National Bank and Trust Com
pany of Chicago and president of the
Robert Morris Associates, a national
organization of bank credit men, spoke
on the subject “ The Loaning Function
and the Future” before the mid-winter
conference of the Wisconsin Bankers
Association.

! C'

L
Northwestern Banker, March,

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

1946

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

Chicago

C O M M E R C IA L

B A N K IN G

CORPORATE A N D

PERSO NAL

T R U S T S E R V IC E S
F O R E IG N
U N IT E D
AND

B A N K IN G

F A C IL IT IE S

STATES G O V E R N M E N T

M U N IC IP A L

S E C U R IT IE S

S A V IN G S D E P A R T M E N T

M em ber Federal Deposit Insurance Corporation

Northwestern Banker, March,

1946

ere

B O O K L E T that should be of interest to everyone

engaged in bank portfolio management. It makes practical sug
gestions for basic investment policy and offers specific recom
mendations for portfolio management under current conditions.
We cordially invite you to write to us
fo r one or more copies of this booklet . . . and to avail
yourself of our bond portfolio service.

r v in g

Tr u st Co m p a n y

ONE WALL STREET • NEW YORK
Member Federal Deposit Insurance Corporation

Northwestern Banker, March,

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

1946

15, N. Y.

IN V E S T M E N T S

i t A ppea rs D esirable to
lie st riet
N ew
Investmen
the Shorter Term G overnm ents
Corporates Have Not Been Advancing, and
They Should Now Be Viewed With More Caution
By RAYMOND TRIGGER
Investment Analyst
New York City

HE vigor of the bond market which
had been growing since mid Sep
tember became almost explosive in
the second week of February. The
new Treasury 2%s, for instance, ad
vanced the limit on five of the eight
trading days from February 5th to
14th, inclusive. On one day in this
period they went down the 8/32 limit
in the manner of a mild correction, but
this was more than recovered subse
quently. Other restricted issues expe
rienced limit advances on some of
these days and reacted less. The long
“bank” 2 X
/2 S showed more moderate
daily advance but broke “the limit”
with the new 2%s on February 11th.
This unleashing of demand for the
higher coupons — mostly from non
banking institutions — cast its reflec
tion in the corporate market to a less
er degree in price advances of out
standing issues on the whole than in
the absorption of two new issues on
unprecedented terms. On February
6th the $44,493,000 Union Pacific De
bentures of 1976 were sold as 2%s on
a 2.47 per cent basis and two days later
the $4,500,000 Madison Gas & Electric
issue, also a 30 year bond short of a
top grade rating, was sold as 2% s on a
2.39 per cent basis. The $50,000,000
Southern Pacific issue on the other
hand was brought out generally in line
with expectations as 2%s on a 2.81
basis. While subsequent price advance
of this issue has been fractional, the
quick absorption of this first section of
the refunding program led to the of
fering of another $50,000,000 on Febru
ary 18th, which was retailed as 2%s
on a 2.75 per cent basis and went
rather slowly.

Corporates Should Be Viewed With
More Caution
Compared with the action of the gov
ernment market outstanding corporate

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

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

issues showed relatively little change.
Average y i e l d s actually increased
slightly in the industrial and 2A rail
sections in the 30 day period ended
February 15th, and the reduction in
yield of top-grade utility bonds was
only about six basis points as com
pared with the nine basis point drop
for the new restricted 2%s. Top-grade
rails firmed by three basis points and
1A rails by five basis points.
However, average performance was
greatly exceeded by individual issues,
notably Cincinnati Gas & Electric 2%s,
Commonwealth Edison 3s, Connecticut
Light & Power 3s, Dayton Power &
Light 2%s and the telephone operating

company issues in the top grade utility
group. Top grade rails were featured
mostly by the currently non-callable
Chicago Union Station 2%s and Virgin
ian Railway 3s. On the other hand,
Kansas City Terminal 2%s of 1974,
which are non-callable before 1954, and
are thus highly desirable for banks
that can fit them into their legal limit,
showed only fractional gains. New
York Connecting Railroad 2%s moved
up the better part of two points but are
still attractive around the 105 call price
level.
Refundings at lower and lower in
terest rates are serving to emphasize
the importance of considering call
prices both as a limiting factor on price
advance and as an element of risk.
For instance, the ease with which
Union Pacific refinanced its junior debt
on a 2.48 basis caused the Union Pacific
First 3s, callable at 107, to drop back
from 110 to 108-9. At the present time
there are no 2A or 3A utilities selling
below call prices other than the re
cently issued and richly priced Madi
son Gas & Electric 2%s, and there are
no industrial issues selling under call
of better than fourth rating and few
enough in the latter category. The
pending $15,000,000 Philip Morris is
sue, which is reported as being resusci
tated, should help to relieve this tight-

Penn. R. R. Gen............... ... 3y8
Chgo. Burl. & Q............... . . . 3%
Buy: Southern Pac................... . . . 2%
Sell: Cincinnati Un. Term . . . . . . 2%
Buy: Kansas City Term.......... . .. 2%
Sell: Chicago Un. Sta.............. ... 3%
Buy: N. Y. Connecting R. R. .. . .. 2%
Sell: B. F. G oodrich................ . . . 2%
Buy: Natl. Dairy Prods............ . . . 2%
*to 1954—then
Sell:

1985
1985
1986
1974
1974
1963
1975
1975
1965
at 105

Call
Price
105
105%
105%
105
NC*
106
105
103
104%

Approx. (Feb. 1
Market Yield %
2.84
107%
2.86
106%
102
2.80
2.43
105%
2.42
106%
2.53
107%
105
2.63
2.39
105%
2.45
105%

Northwestern Banker, March.

1946

Investments

ness a little, and temporarily. The
“freezing” effect of call prices has been
the principal effect in holding down
the further advance of the corporate
bond market while such notable gains
were being registered by the Treasury
issues. Our preference for the corpo
rates, which has been emphasized in
several previous writings of this col
umn, is considerably dampened for the
time being.

Improving "Call" Position While
Realizing Profit
Here and there it is possible to im
prove the bank’s position with respect
to call prices and at the same time ce

ment a book profit into capital funds.
Several such instances are illustrated
on the previous page.
The new Union Pacific Debentures
2%s might also be used as a replace
ment for currently callable issues in
those cases where a low yield is ac
ceptable in view of shorter than aver
age term and high quality. There is
some belief that the Union Pacific 2%s
have been underrated in disregard of
the expected cash retirement of the
greater part, if not all, of some $150,000,000 senior debt due in the current
year and in 1947. Nevertheless, the
Union Pacific 2%s are a little on the

|llllllllllllllllllllllll[||||||||l!llllllllllll!llllllllll|[|lll[|ll!lllll!llllllll[||||l!llllllllllllinillll|[||llllllllllllllllllll!lll!lllllllllllllllllllllllllllll|[|||||||||[||[l!llli:ill[!l!l[||||||||l!ll[||l!lllllll!llllllllllllllllll|[|||||[||||||||||||||f

Serving the

I
[
i
I

Investment
N eeds
°f

Institutions
Our Institutional Department offers special serv
ice to banks, insurance companies and other
institutions by assisting them in the solution of
the many phases of their investment problems.
Our broad experience enables us to provide
institutions with current basic facts concerning
security market activities— a service of particular
value during these days of changing conditions.

[
[
I
j
1

In addition, through the facilities of our 89
strategically located offices— connected by direct
wires— we are able to assemble facts concerning
markets and securities promptly and efficiently.

sticky side around the offering price
of 108 y2.

Treasury's March 1st Payoff
Significant
The advance of bond prices was
halted on February 15th by the Treas
ury announcement that it would pay
off with cash $1,000,000,000 of the $4,147,000,000 March 1st Certificate ma
turity, the $1,291,000,000 March 15th
maturity of the 1 per cent notes and
would call for cash payment the $489,000,000 %s on March 15th. As of last
September 30th commercial banks held
about 62 per cent of the $5,927,000,000
total of these issues. Assuming the
same proportion currently, this would
mean a reduction of some $1,750,000,000
in “cash” resources of the banking
system no longer available for pur
chase of long term bonds, as might
have been the case if the issues in
question had been completely re
funded by certificates and other short
term issues. At the same time, the
War Loan deposit and the potential
demand deposit of the banking sys
tem is reduced by $2,780,000,000.
That the market took this deflation
ary development merely by halting its
advance rather than by declining is
due to the offsetting psychological fac
tor. The urge to invest in the longer
maturities is increased by the portent
of a reduction in the available total of
issues and by the implication that
“rights” of maturing issues may be a
thing of the past.
It may be hasty to form an opinion
now but the announcement of the par
tial retirement of the March 1st cer
tificates makes it appear that Secre
tary Vinson may be giving some
ground in the contest with Chairman
Eccles and other officials of the Fed
eral who wish to slow up the purchase
of government issues by the banks.
The fact has probably not become ob
scured to Treasury officials that the
Federal Reserve still sits in the driv
er’s seat through its power over open
market operations and reserve require-

This type of service offers a modern and logical
approach to today’s institutional investment
problems. We will be more than happy to sit
down with you personally and discuss the many
phases of your investment requirements in a
confidential manner.

M errill Lynch , P ierce, F enner & B eane
U nderw riters and D istributors o f Investment Securities
Brokers in Securities and Commodities

70 PINE STREET

NEW YORK 5, N. Y.
Offices in 8 8 C ities

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Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

When it was half finished, the Government
sued him for back income tax.

Investments
president, Mexico Savings Bank, Mex
ico, Missouri; John De Laittre, state
vice president of the savings division
for Minnesota, who is also treasurer,
Farmers and Mechanics Savings Bank,
Minneapolis, Minnesota; M. W. Ellis,
Iowa state superintendent of banking,
Des Moines; William Gough, state vice

ments, and that the honeymoon of the
wartime marriage of convenience
could come to an end. President
Sproul of the New York Reserve Bank
stated not long ago that control of the
money market had passed from the
Federal Reserve authorities to the
15,000 member banks but this is looked
upon as something of a hyperbole. It
may be so, at the most, only as long as
the Federal does not draw the purse
strings of the system.
Until it becomes clearer which of
the two policies is to prevail, it ap
pears desirable to shorten sail a bit,
pull back maturities and restrict new
investment to the shorter terms. This
does not imply necessarily a commit
ment to a resulting lower rate of re
turn for an indefinitely long period.
On the other hand, it might be the
means of having locked up as book
profits safe from decline an amount
equivalent to income for a considerable
period. One or more of the inhibiting
moves against the bond market men
tioned in last month’s column may
well be an active possibility. # #

president of the savings division for
Kansas, who is also cashier, Bank of
Commerce, Chanute, Kansas; B. A.
Gronstal, state vice president of the
savings division for Iowa, who is also
president, Council Bluffs Savings Bank,
Council Bluffs, Iowa; B. F. Kauffman,
president, Bankers Trust Company,

Mortgage Conference in
Des Moines
Appointment of a conference com
mittee to make plans for a Regional
Savings and Mortgage Conference at
Des Moines, Iowa, on May 27th and
28th, has been announced by Myron
F. Converse, president of the savings
division of the American Bankers As
sociation, who is also president of
Worcester Five Cents Savings Bank,
Worcester, Massachusetts.
The committee, of which H. L. Hor
ton, president, Iowa-Des Moines Na
tional Bank & Trust Company, Des
Moines, Iowa, is chairman, is planning
a program for the two days and has
already selected the Fort Des Moines
Hotel as conference headquarters.
Serving with Chairman Horton on
the conference committee are: E. F.
Buckley, president, Central National
Bank & Trust Company, Des Moines;
C. A. Christopherson, state vice presi
dent of the savings division for South
Dakota, who is also chairman of the
board, Union Savings Bank, Sioux
Falls, South Dakota; W. R. Courtney,
state vice president of the savings
division for Missouri, who is also
In s u ra n c e C ounselors to B a n k s

D id you know that this company has specialized in
Bank Insurance since 1 9 1 9 — that it has the inside view on Bank
Insurance problems? Consult us freely at any time.

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Federal Reserve Bank of St. Louis

FIRST

NATIONAL

BANK

BUILDING

Scarborough
& Company
• CHICAGO

ILLINOIS

• STATE

4325

Northwestern Banker, March,

1946

Investments

Des Moines; Frederick M. Morrison,
president, Valley Bank & Tr. Co., Des
Moines; F. E. Stewart, state vice presi
dent of the savings division for North
Dakota, who is also cashier, American
State Bank, Williston, North Dakota;
R. O. Wagner, president, Capital City
State Bank, Des Moines; Frank War
ner, secretary, Iowa Bankers Associa
tion, Des Moines, and C. F. Witt, state
vice president of the savings division
for Nebraska, who is also president,

South Omaha Savings Bank, Omaha,
Nebraska.

Annual Election

dent. Other company officers are: E.
B. Duncan, vice president; W. S. Ford,
vice president and secretary, and W.
H. Lembeck, treasurer. The St. Louis

Effective recently, Charles J. LaMothe has become president of the St.
Louis Terminal Warehouse Company
and subsidiaries, having served as vice
president for a number of years, and
more recently as executive vice presi
dent. Lieutenant Colonel A. J. Bardol,
who was an officer of the company
prior to entering military service, has
been released by the army and has
returned to the St. Louis Terminal
Warehouse Company as a vice presi-

No Market Losses
IF
Y O U INVEST

THOMSON &
McK in n o n

YOUR M ONEY
— in our 3 %

Fed

eral] y insured cer
tificates,
have

ST O C K S • BO N D S
C O M M O D IT IE S

w h ic h

safety,

216-218 Empire Bldg.

D E S M O IN E S

quidity and free

Phone 4-2127

dom from market

11 W all Street, New York
231 S. LaSalle St., Chicago
Branches in 34 Cities

losses.

Write for our weekly Stock Survey
DIRECT PRIVATE W IR E

Laverne M. Barlow

George E. Virden, Secretary

M anager

Members New York Stock Exchange
and other principal exchanges

The Russell County Building & Loan Association
-

R U SSELL,

KANSAS

B O N D S

Railroad
Municipal

A .C . A L L Y N and c

In c o rp o ra te d

W a t e r lo o

Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

A half century of leadership in the
American Express Company was cele
brated this month by Frederick P.
Small, chairman of the executive com
mittee of the company’s board of direc
tors, at a reception given him by offi
cers and members of the board.
A pioneer of new operating tech
niques in the express, foreign ex
change and travel fields, Mr. Small
provided the leadership for extensive
international organizational expansion
during 20 years as president.

o m p a n y

100 W e s t M on roe S tre e t, C h ic a g o
M ilw a u k e e

Executive Honored

The Mercantile-Commerce Bank and
Trust Company, St. Louis, Missouri,
has announced the appointment of
William H. Jaffke as assistant vice
president with the real estate depart
ment of the bank. Mr. Jaffke has been
with the Tower Grove Bank and Trust
Company for the past eighteen and
one-half years, and before leaving h>
join Mercantile-Commerce, was secre
tary and treasurer in charge of the
mortgage loan and real estate depart
ment.

Industrial

O m ah a

Terminal Warehouse Company oper
ates both field and commercial ware
houses in the mid-continent area, with
headquarters at St. Louis.

Named Vice President

Public Utility

N ew Y o rk

CH AR LES J. L aM O T H E
Elected President

B o sto n
K a n s a s C ity

M in n e a p o lis
M o lin e

Quick H enry the Flit
Squire: “ Did you send for me,
m’Lord?”
Lancelot: “Yes, yes! Make haste.
Bring the can opener. I have a flea
in my Knight clothes!”

Investments

Returns to Midland
Richard W. Peavey, who recently
returned to the Midland National Bank
of Minneapolis from service as a lieu
tenant in the U. S. Navy, is now as
signed to the department of banks and
bankers, which is under the direction
of Lawrence 0. Nelson, vice president.
Also serving in this department is E.
Walter Engstrom, assistant cashier.
Mr. Peavey is the son of Roger W.
Peavey, president of the Security Na
tional Bank and Trust Company of
Faribault, and comes from a family of
bankers well known throughout Min
nesota. He joined the Midland Bank
in February, 1939, where he received
training in various departments prior
to entering the navy in 1942. He began

of foreign banks and governments
from 12 countries. These included
Australia and India (a representative
from The Chartered Bank of India,
Australia, and China), 1; Belgium, 2;
Bermuda, 1; Canada, 18; China, 1;
Czechoslovakia, 1; Denmark, 1; Eng
land, 3; Italy, 1; Norway, 1; and Swe
den, 2.

S p e c ia li z in g in

Daily Double
Going over the accounts one evening
the young husband said reproachfully,
“Look here, dear, the bank just re
turned your check.”
The bride beamed, “ Isn’t that won
derful, darling! What will we buy
with it this time?”

U n listed S e c u r itie s

BANK — INSURANCE
PUBLIC UTILITY —

INDUSTRIAL —

REAL ESTATE

LUMBER & TIMBER
BONDS, PREFERRED AND COMMON STOCKS
BOUGHT

—

SOLD

—

QUOTED

R E M E R , M I T C H E L L & R E I T Z E L , INC.
208 S o . L a S a lle S t ., C h i c a g o 4
R A N d olp h

WESTERN UNION
TELEPRINTER
“ W UX”

3736

BELL SYSTEM TELETYPE
CG-989

I N F O R M E D A C T I O N IS T H E K E Y TO S U C C E S S F U L I N V E S T I N G

¡¡'ZRevitalizedIndustry
Today’s railroads are a revitalized and, to a
large extent, a reorganized industry from the
standpoint o f both operations and financial
structure. The industry is one for which the
public has new respect and appreciation growing
out o f its courageous pre-war accomplishments
and its amazing wartime record o f achievement.
Instead of being a declining industry, it appears
to be entering a new phase of development
which, if not as expansive and dynamic as in
its earlier stages, promises to be at least more
stabilized and certainly no less necessary
to the growth and well-being of the nation.

R ICH AR D W . P E A V E Y
Returns from the Service

his naval training course at Columbia
University, where he was commis
sioned an ensign, later taking addi
tional work at Ohio State University.

New High in Attendance
A new high point in attendance and
interest was set by the 27th Mid-Win
ter Trust Conference of the trust divi
sion of the American Bankers Asso
ciation, which was held last month in
New York City.
James W. Allison, president of the
division, who is also vice president of
the Equitable Trust Company, Wil
mington, Delaware, reported that regis
tration at the conference exceeded
1,500 representatives of banks and
trust companies from 38 states and the
District of Columbia. The previous
high in attendance was the Mid-Winter
Conference in 1944, at which 1,277
were registered.
There were also 32 representatives

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Federal Reserve Bank of St. Louis

Send fo r this Informative Folder
on Railroad Bonds
HALSEY, STUART & CO. Inc .
123 S. La Salle Street, Chicago 90, Illinois
Gentlemen: Please send me, without cost
or obligation, "The Investment Merits of
Selected Railroad Bonds.’’

Name_____________________

1 The basic factors essential to qualification of
tr selected railroad bonds for favorable investment
|| consideration are discussed interestingly
¡F and non-technically in an up-to-date analysis,
"Investment Merits of Selected Railroad
|F Bonds.’’ Send for it, without obligation, as a
1 guide to informed action.

Address_
City_

Use this request form —at no cost.

_State_

NB-2

H A LS EY, S T U A R T &, CO. In c .
C H IC A G O

9 0, 123 S O U T H

LA S A L L E

S T R E E T - N EW

Y O R K 5 , 35 W A L L S T R E E T ■ A N D

O TH ER

P R IN C IP A L C IT IE S

Northwestern Banker, March,

194&

Industrial M anagem ent is 100% sold on the value of

men are vitally concerned with sa fe ty .» » A n d the more

preparedness. For example, no businessman would

farsighted the organization—the more informed its man-

wittingly chance the loss of life and property through

agement — the more likely it is you will find that organ-

inadequate fire-fighting equipment. And the more dis-

ization follows the lead of so m any of America's fore-

cem ing the managem ent, the more complete and effi-

most banks—and issuescheckson itsownindividuaiized

cient the provisions for fire control. » » It is likewise

Safety P ap er-d evelop ed b y LaMonte for maximum pro-

evident that in the transfer of funds by check business-

lection against fraudulent alteration and counterfeiting.

For S a m p le s o f L a M on te S a fe ty P aper s e e ty o u r Lithographer or Printer

LA MONTE
GEORGE LAMONTE & SON

Th* W a v y Lines a re a L a M o n te Trade M ark

Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1 9 46

PAPER
NUTLEY, NEW JERSEY
W e su p p ly m a n y b a n k s and b u sin ess organizations
with their ow n i n d i v i d u a l l y i d e n t i f i e d S a fety P aper.
The issu ing organization's Trade-M ark is in the p a p er
itself and a p p ea rs on both the front and b a c k o f the
ch eck . Such i n d i v i d u a l i z e d paper not o n ly p rotects
again st fraudulent alteration but p ro v id es m aximum
p rotection a ga in st co u n terfeitin g —s a v e s Banks sort
in g time —h elp s p rev en t errors.

—or w rite

u s directo

I N S U R A N C E

K e y s to

S u c c e ss

H ave a Plan
2 . W o rk That Plan
2 . D o n 3t He a Coward
1.

Then Keep Records of the Calls You Make, Note
the Results, and See Where You Can Do Better
By W. J. COOPER, General Agent
Illinois Bankers Assurance Company
Houston, Texas

N MY years in the selling of insur*
ance I have seen many salesmen
come and go. Some made a grand
success and some a complete failure.
Men with no particular gift of selling
made money and others with excellent
educations failed completely. We all
want to make money. We want to be
successful, and to my mind there are
three things that keep the average
salesman in this business from making
the success he hopes for. Do these
apply to you?
1. You do not plan.
2. You will not work.
3. You are afraid.
Let’s take the first one. I believe
you will agree that every successful
salesman does plan his work. He plans
how he is going to find prospects who
can buy, how he is going to introduce
himself to them under favorable cir
cumstances, how he is going to make
them want his contract, how he is go
ing to answer their objections and how
he is going to get them to sign. If he
doesn’t plan such things then he is
just drifting, hoping to be able to say

the right thing at the right time. But
I know you will agree that a drifting
ship doesn’t bring home the cargo like
a ship that is steered on a planned
course.
Plan to keep records. There is noth
ing so revealing as to look at the
number of calls you are making, and
the results you get from those calls.
If you are not making at least forty
calls a week, then you know imme
diately where you are falling down
on the job. If you find you are making
forty calls or more but not getting
the interviews, then you know the
trouble is in your approach and you
can strengthen that. If you find you
are getting the proper percentage of
interviews from your calls, but not
making the sales, then you must re
vamp your talk to present your con
tract better and to strengthen your
closing.
As to your working habits. Can you
conscientiously say to yourself that
you are giving eight hours a day to
actual selling? You would have to
work eight hours a day if you were

D id

you

kn ow

b u t e n a b le s y o u

th a t o u r C a sh

w . j . COOPER
“ People W ant Money— You Sell It to Them”

working for someone else. Why not
do it for yourself when you are the
boss? It is so easy to sit around the
office, theorizing about what you are
going to do, but ten minutes in the
presence of a prospect is worth more
than two hours of idle theorizing. It is
easy to stand on the street visiting
with a friend, but does he help you
sell? Does he pay you for your time?
I have seen men fail in this business
because they would not talk to pros
pects, then turn around and work
eight hours a day in a grocery store
lifting heavy boxes and crates. That
same eight hours spent in talking to
prospects, incidentally a much more
pleasant and easier occupation, would
have made that man ten times as
much money. Some men find it hard
to work with their minds, but it makes
more money and is worth while trying.
And now as to fear. It’s rather seri
ous to accuse a man of being a coward.
Most men immediately will want to
hit back or get mad, but if a man gets
mad he generally gets some kind of
action. I don’t mean that you are a

L e tte r P o lic y n o t o n ly g iv e s p ro te c tio n

to c u t o p e r a tin g e x p e n s e s s u b s ta n tia lly ?

A s k u s fo r d e t a ils . Y o u w ill n o t o b li g a t e y o u r s e lf .

Scarborough &) Com pany
In s u r a n c e C ounselors

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Federal Reserve Bank of St. Louis

FIRST N ATIO N AL BAN K B LD G . • CH ICAGO 3 , IL L . • STA TE 4 3 2 5

to B anks
Northwesfern Banker, March,

1946

Insurance

physical coward, but I do mean that
mentally you are afraid to call on
prospects. Years ago I did some cold
canvassing with an older man. I
would hold back but he would walk
right into an office full of people and
start talking to someone. I told him
one day I wish I had his nerve. “Why
not,” he said, “they won’t hit me.”
I have never forgotten that statement.
Why should we be afraid?
Just remember, if you don’t go to
see him you can’t sell him. And if
you do see him you might sell him.
One way to overcome fear is to learn
your rate book thoroughly. Learn
what each contract will do, what bene

fits it will give, how it will apply to
different problems. A thorough knowl
edge of your policies will give you
confidence, for when all is done you
know a whole lot more about insur
ance than any prospect you will call
on.
In planning an interview a great
deal of attention must be given to your
introduction. In planning your intro
duction let me give you a thought.
Nobody wants to buy insurance. Your
prospect looks on it, if he ever thinks
of it at all, as something abstract,
something that costs him money,
money that he would much rather use
to go fishing, to see football games,

A nother Year of Grow th Shows
GAINS IN ASSETS

GAINS IN RESERVES

GAINS IN SURPLUS FUNDS

GAINS IN PREMIUM INCOME

GAINS IN INSURANCE IN FORCE

Financial Statement— January 1, 1946
ASSETS
Cash and Bonds.................................................................... $1,248,383.78
First Mortgage Loans on Real Estate.................................. 2,840,636.83
Home Office Building and Other Real Estate.......................
203,747.86
Stocks ..................................................................................... 607,408.04
Loans to Policyholders...........................................................
138,355 51
Interest and Rents Due and Accrued....................................
19,226 30
Net Premiums in Course of Collection....................................
91,962 41
Total Assets ................................................................... $5,149,720.73
LIABILITIES
Policy Reserves ..................................................................... $3,795,731.60
Reserves for PolicyholdersDividends.....................................
126,719.89
Premiums Paid in Advance..................................................
190,636 78
Other Reserves and Liabilities...............................................
183,869.50
Total Liabilities ............................................................. $4,296,957.77
‘ Surplus to Policyholders......................................................
852,762 96
Balance

..........................................................................$5,149,720.73

in c lu d e s Capital Stock of $204,383.67.

POLICYHOLDER'S IlflTIOIIflL LIEE
INSURANCE

COMPANY

SIOUX FALLS, SOUTH DAKOTA
Northwestern Banker, March.

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Federal Reserve Bank of St. Louis

1946

etc. Nobody wants insurance but
everybody wants money, and more
money. They all want the things that
money will buy for their children,
their wives, and don’t overlook it—
for themselves. Therefore, when you
plan your approach, don’t talk about
insurance; talk about money.
Another thing to remember. No one
wants some strange insurance agent,
or anyone else for that matter, telling
him what he should do, how he should
handle his own money, how he should
arrange his business, or how he
should provide for his family. There
fore, in the first part of any interview,
devote your thought to finding out
what the prospect wants to do. What
are his plans? Ask questions. How
much will it cost to educate his chil
dren? How much will it cost to retire
his mortgage? How much will food,
fuel, clothing, etc., cost his family
when he dies? How much will Social
Security pay him when he reaches
age 65? A lot of “how” questions cour
teously and judiciously asked will get
you a lot of information, and enable
you to settle on one key problem to
solve. Most important he won’t buy
from you unless he needs your con
tract. So in your “how” questions,
develop that need.
In your questions and presentation
don’t be afraid to use the word “die”
and “death.” To me it is a very weak
statement to say, “When you pass
away,” or “ If you are taken out of
the picture.” What picture? Why not
say, “ If you had died yesterday, what
would your family need today?” That
may sound hard-boiled, but it will
certainly jolt him to thinking. If he
died yesterday, that is an accom
plished fact, something that has to be
faced, not something that he doesn’t
think is going to happen until he gets
over eighty. It’s up to him then and
up to him hard. They are going to face
it some time, either with him now,
when he can do something about it,
or when he is gone and it’s too late.
So, how much will a cemetery lot cost?
How much will a funeral cost? How
about hospital bills? Food, clothing,
fuel, and all the things necessary to
keep that family going after he is
gone? How much per month and how
many months? If you can get him
to write down the answers you will
have his undivided attention and they
will appear as his answers, not yours.
If he makes objections, and he will,
of course, then I believe you can get
around most any objection (and most
of them are only excuses) with a few
“why” questions. Why does he think
he has enough insurance? Why did
he apply for that particular amount?
In defending his position there he will

Insurance
be helping you sell himself. Why
doesn’t he want his child to have that
college education? Why doesn’t he
want his family to own their home
and why doesn’t he want you to fur
nish the money? Show him how you
can and why that method is better
than any other in the world.
In planning your successful inter
views, and later if they don’t work too
well, take this into consideration.
Don’t be depressed when you fail to
make a certain sale. Make a game of
this business. Football players never
quit because they are tackled and
thrown for a loss, do they? No, they
go into a huddle, call new signals and
hit the other side of the line. Do the
same thing yourself; don’t give up.
Call another signal. Hit the other side
of the line, and the chances are that
that side is held by the very prospect
who will sign on the line for a fine app.
People today have more money than
ever before. Your prospects may not
want to buy radios, carpet sweepers,
washing machines or even insurance.
But they do want money. You have
it in unlimited quantities. The only
commodity that every one wants.
Enough for every emergency. So plan
who to see, how much they want, and
let them have it. # #

Elected Director
Harry E. Ward, chairman of the
board of Irving Trust Company of
New York, has announced the election
of Richard H. West, as a director of the
company.
Mr. West is vice president of the
Irving, in charge of its trust business.
Prior to assuming those duties several
years ago, he was prominent in many
of the company’s lending and investing
activities.
Before joining Irving Trust Com
pany in 1930, Mr. West had wide expe
rience in the commercial field, both
here and abroad.

Financial Statement
of
IO W A ’ S LARGEST
CASUALTY INSURANCE AND
RON DING COM PANY

Statement as of December 31, 1945
OFFICERS

ASSETS

J . W . Gunn

President-Treasurer
John

Hynes

Vice Pres.-Secretary

DIRECTORS
O r. D . E. Baughman

Fort Dodge, Iowa
W.

Brenton

Pres., Brenton Bros.
Des Moines
H.

Hjermstad

Pres., Citizens Fund
Fire Insurance Oo.
Red Wing, Minn.
Dr. L . E. Kelley

Physician & Surgeon
Des Moines

Bonds— Government, State & Munic‘ „
ipal — Amortized — ------------------------- $6,845,681.10
No Bonds owned by the Company
have ever been in default either as
to interest or principal.
120,974.60
Real Estate— Home Office Building —
Cash in Banks------------------------------------- — 1-,057,538.41
170,064.89
Real Estate Mortgages— F H A -------------29,670.00
Stocks and Federal Savings Certificates
898,512.50
Premiums Receivable— Not past due
Current Balances due from Agents
and Policyholders.
Interest A ccru ed ------------------- ----------- - —
3±,<o±.vn±
TOTAL ADMITTED A S S E T S ---------$9,154,192.54

Frank Kohrs

Pres., Kohrs Packing
Company, Davenport, Iowa
Carl Muelhaupt

Secy., Central Service
Company, Des Moines, Iowa
Amos C. Pearsall

General Manager,
Pittsburgh-Des Moines Steel
Company, Des Moines, Iowa
W . Z. Proctor

Attorney at Law
Des Moines, Iowa
H . W . Read

Secy., Iowa Valve Company
Oskaloosa, Iowa
R. W . Weltz

Contractor
Des Moines, Iowa
M. J. Wilkinson

Supt. of Agents
Des Moines
R. W . Wood

RESERVES
Reserve for C la im s -------------------------------$3,783,783.55
Funds set aside to fully pay all in
curred and expected losses.
Reserve for Unearned Prem ium s--------- 2,507,620.24
Funds set aside to return to every
policyholder the unearned premium
in event of cancellation.
Reserve for Taxes— State andFederal
208,755.30
All Other Reserves —- — -------------------531,198.67
Included in this Reserve is a sufficient
amount to pay 1945 dividends on all
participating policies.
TOTAL

L I A B I L I T I E S --------------------$7,031,357.76

Reserve for Contingencies------------ —

300,000.00

SURPLUS over ALL Liabilities------- 1,822,834.78

Physician & Surgeon
Newton, Iowa

$9,154,192.54

K in p lo y o r s M il t u a I
Casualty Company
des

M O IN E S

Automobile, Plate Glass,

Workmen’s Compensation

Public Liability Insurance

Fidelity and Surety Bonds

My plan for private business after the war
is really simple, Senator, “ The Interest on
the Losses pays the Profits.”

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Federal Reserve Bank of St. Louis

Northwestern Banker, March,

1946

Insurance

Balanced Budget in Sight
In its annual review, the bond de
partment of the Bankers Trust Com
pany of New York draws attention to
the fact that the close of 1945 clearly
marked a turning point in the govern
ment’s fiscal affairs and states that the
federal debt of $279,000,000,000 at the
year’s end may prove to be the peak
for years to come. There appears to
be no need for cash financing within
the foreseeable future and the problem
has therefore become largely one of
debt management.
k

R e c e iv e s H o n o r a r y M e m b e r s h ip

★

A STATEMENT OF
MANPOWER POLICY
N o r t h w e s t e r n n a t io n a l
LIFE’S management firmly believes
that the best interests of the agent, the
policyholder, and the public are served
when life agents are in every respect
independent businessmen standing on
their own feet. This, in our opinion, re
quires the highest type of Home Office
leadership we can bring to the task. To
that end:
★ We are providing our agency heads
with the most thorough and prac
tical selection devices we can create.
★ We are encouraging selection of men
with proven success in other fields
and are accepting fewer agents with
previous life insurance experience.
★ We are sharply limiting the number
of men who will be accepted under
an NWNL franchise, but are making
a substantial investment in their
training and stabilization.
★ We are conscious of our obligation
to help keep post-war employment
at as high a level as possible, but are
standing firm against the temptation
to recruit en masse and to use G.I.
benefits as a form of agency financing.
★ We have developed a thorough Home
Office training, with preliminary
training in the local agency.
★ We are guarding against a debtorcreditor relationship with agents.
★ We share the natural desire of all
companies for volume growth, but
our first consideration is for a high
level of earnings per man, letting vol
ume develop naturally and soundly.
We know that such a program leads
to low turnover and to higher earnings
per man, and we believe the program is
in keeping with the best interests of
Nw NL and of the business as a whole.

Northwestern
National L ife
in s u r a n c e

COM PANY

O . J. A r n o ld ,

M in n e a p o lis ,

P r e s id e n t

M in n e s o ta

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

1946

The federal deficit for the calendar
year of 1946 is estimated at eight to
ten billion. War expenditures are de
clining and should the national income
reach around $140 billion, budget re
ceipts might aggregate about $34,000,000,000. The opinion is expressed that
the budget could reach a condition of
approximate balance by the end of the
year if a determined effort is made in
that direction.

Heads Banking Department
The appointment of Alex H. Ardrey
as head of the banking department of
Bankers Trust Company, New York,
was announced by S. Sloan Colt, presi
dent of the bank. Mr. Ardrey has been
a vice president of Bankers Trust Com
pany since 1930. His first banking con
nection was with the National Bank
of Commerce, New York, during his
college vacations and after his gradua-

C a r fin a n c in g
Will locally purchased automobiles be locally financed
when new cars become available?
Both you and Allied Mutual are interested in this. Let's
get together.
Write

ALLIED M U TU A L
CASUALTY COMPANY
Harold S. Evans, President
H u bbell

★

★
Northwestern Banker, March,

HONORARY MEMBERSHIP in the American Institute of Banking New
York Chapter was conferred upon Gordon S. Rentschler, chairman of the board
of the National City Bank of New York and the City Bank Farmers Trust Com
pany, at the recent annual banquet of the organization. Presentation of the
scroll was made by Edgar C. Egerton, Chapter president.
Above, Mr. Rentschler, right, receives the scroll from Mr. Egerton.

Building

Des

M oin es

7, I o w a

Insurance
tion. In the summer of 1922 he did
special work in the Iowa National
Bank (now the Iowa-Des Moines Na
tional Bank). He then became vice
president of the Security Trust and
Savings Bank of Los Angeles. This
bank later was merged with the First
National Bank of Los Angeles under
the title of the Security First National
Bank. Mr. Ardrey remained with this
institution until joining the Bankers
Trust Company.

With Public National
E. Chester Gersten, president of The
Public National Bank & Trust Com
pany of New York, has announced the
appointment of Lt. Col. Gordon L.
Chapline, A.U.S., as assistant vice pres
ident. He will be identified with Pub
lic National’s out-of-town business ac-

fiscal statement. The corporation held
almost $900,000,000 of United States
government obligations and $16,000,000
of cash. Assets acquired through bank
suspensions and mergers and still held
by the corporation represented dis
bursements of $38,000,000. These were
carried at a value of $15,000,000 after
the deduction of a reserve for loss of
$23,000,000.
Total income of the corporation dur
ing the last six months of 1945
amounted to $60,000,000, including $49,000,000 from assessments paid by in
sured banks at an annual rate of onetwelfth of 1 per cent of their average
deposits, and $11,000,000 from the re-

turn on investments and miscellaneous
income. During the six months no call
was made upon the corporation for a
disbursement to protect depositors in
weak or insolvent banks. Total ex
penses for the period amounted to $2,000,000, leaving net income transferred
to surplus of $58,000,000. Another $3,000,000 was added to surplus as a re
sult of adjustments in the reserves for
losses on assets previously acquired
through bank suspensions and merg
ers. Recent liquidation experience with
these assets has been very favorable
and the corporation’s loss has been
smaller than was anticipated. Total

w
H
W HY risk the financial security of your bank by loaning money
on unprotected holdings?

Be in position to offer your clients

the best in insurance protection as attested by hundreds of
G O R D O N L. C H A P L IN E
Named Assistant Vice President

tivities. Lt. Col. Chapline is a graduate
of U. S. Military Academy, West Point,
New York. He has had extensive
experience in the finance and commer
cial paper business, having been iden
tified with companies specializing in
these fields. For the past four years
he was in the U. S. Army, administer
ing the contractual relationships be
tween the Army Air Forces and MidContinent Air Lines, Inc., and Trans
continental and Western Air, Inc.

F.D.I.C. Assets
Total assets of the Federal Deposit
Insurance Corporation amounted to
$931,000,000 on December 31, 1945,
Chairman Maple T. Harl, speaking for
the board of directors of the Federal
Deposit Insurance Corporation an
nounced in releasing the semi-annual

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Federal Reserve Bank of St. Louis

Banker Agents in the middle west.
You, too, can augment your income and protect your customers
with our complete line of

FIRE

•

AUTOMOBILE

WINDSTORM & PLATE GLASS

INSURANCE
Write

Western Mutual
Fire Insurance Co.
Ninth and Grand

Des Moines 8, Iowa

Northwestern Banker, March,

1946

■«■1*1
■

FOCAL POINT
foi Co-ordinated Regional

capital and surplus on December 31,
1945, amounted to $929,000,000.
At the close of the year total depos
its in the 13,495 insured' commercial
and mutual savings banks amounted
to approximately $154 billion. This
was an increase of $19 billion over the
$135 billion at the end of 1944 and was
the highest amount on record. Since
December, 1938, deposits in insured
banks have increased more rapidly
than the total capital account of the
corporation. Deposits rose to three
times the 1938 level, while total capital
account of the corporation a little more
than doubled.

Green Made Director
Charles W. Green, formerly public
relations director of the Franklin
Square National Bank at Franklin
Square, Long Island, New York, and

M I L W A U K E E
Wisconsin's Bank for
T his outstand ing bank — established
in 1 8 53 — serves as M ilw a u k e e d e
p o sito ry fo r o ve r 85 p er cent o f a ll
the banks in W isc o n sin !

ililt!
ip«®
¡■ ¡J

;
111

With unparalleled correspondent “ coverage” of
Wisconsin, the First Wisconsin National Bank
of Milwaukee is not only “ the point of prompt
collection” for Wisconsin checks and drafts, but
also the focal point for unique Co-ordinated
Regional Service keyed to the needs of national
corporations operating branches, sales divisions,
distributorships, retail outlets or other units in
this area.
Bankers as well as business executives are invited
to write for further information.

FIRST WISCONSIN
NATIONAL BANK
o f M ilw a u k ee
ME MBER

THE

Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

FEDERAL

1946

DEPOSIT

I NSURANCE

CORPORATI ON

CH AR LES W . GREEN
Heads Public Relations

during the past two years a member
of the staff of the committee for eco
nomic development, on leave from his
bank, has joined the staff of the Amer
ican Bankers Association as director of
its Public Relations Council, it is an
nounced by Dr. Harold Stonier, execu
tive manager of the A.B.A.
Mr. Green takes over the title held
for the past few years by Merle E.
Selecman, who is giving up the direc
torship because of increasing duties.
Mr. Selecman will continue as deputy
manager and secretary of the Ameri
can Bankers Association, and secretary
of its trust division, and his relation
ship as a member of the Public Rela
tions Council.

Minnesota News

M IN N E S O T A
NEWS
GEORGE A. BEITO
President
Gonvick

W IL L IA M DUNCAN, Jr.
Secretary
Minneapoiis

2, 1942. He was a pilot of a Marine
B-25 and participated in 26 missions
on night shipping attacks. He served
in attacks on Saipan, Iwo Jima, Oki
nawa and the mainland of Japan in 15
months of duty in the Pacific.
Lengenhausen was an electricians
mate, third class. He received his boot
training at Great Lakes, Illinois, at
tended electrical school at Iowa State
College, Ames, Iowa, after which he
was assigned to the U.S.S. Buckingham
for duty in the Pacific.

Promote Two Officers
Buys Beaver Creek Bank
Alfred E. Precht, of Vesta, Minne
sota, has purchased the controlling in
terest in the Beaver Creek State Bank
from H. W. Peters and associates, and
took over active management of the
business last month.
Mr. Precht entered the banking busi
ness at Echo, Minnesota, and was em
ployed at the Citizens State Bank of
New Ulm, Minnesota, before taking
over a bank at Lafayette, Minnesota.
On October 1, 1945, he organized and
opened the bank at Vesta, Minnesota,
which business he disposed of to go
into business at Beaver Creek.
The Beaver Creek bank, organized
in 1917, at present has a capital of $15,000, its surplus is $15,000 and undi
vided profits, $10,000. As of Decem
ber 31, 1945, its deposits totaled $512,706.34.

Navy Veteran Cashier
The board of directors of the First
National Bank of Owatonna, Minne
sota, announced the resignation of
Joseph S. Cotter as cashier last month.
Mr. Cotter left to accept a position with
the First National Bank and Trust
company of Helena, Montana. He
went to Owatonna on August 1, 1945,
having previously been discharged
from the service.
Clarence LaRoue, assistant cashier,
recently returned from the Navy, has
taken over Mr. Cotter’s duties. Mr.
LaRoue had been with the bank for
twelve years prior to going into the
Navy.
The bank also announced the return
of Sidney Sieracki who has been in the
Service three years and five months.
He was with the Medical Department
in the Aleutians and Europe and upon
discharge was Technician fourth
grade.

Joins Eveieth Bank
Joseph Turk, World War IT veteran
who was discharged from U. S. Naval
service some weeks ago, has taken a
position with the Service Agency in
the insurance department at the First
National Bank of Eveieth, Minnesota.

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Federal Reserve Bank of St. Louis

Wood Lake Election
C.
C. Elkjer, president of the State
Bank of Wood Lake, Minnesota, sold
his interests and resigned recently. At
a stockholders’ meeting for election of
officers, Dr. R. H. Kath was named
president; John Lyner, vice president;
Herman G. Harnre, cashier; Loyd
Schroder, assistant cashier; Norma
Stueland, assistant cashier, and Anita
Nelson, bookkeeper. Directors elected
were Dr. Kath, Mr. Hamre, Alfred
Larson, Mr. Lyner and Harry F.
Payne.

A. E. DeSutter was promoted from
cashier to executive vice president,
and Harry W. Tillemans was promoted
from assistant cashier to cashier by
stockholders of the Farmers and Mer
chants State Bank of Minneota, Min
nesota, at the annual meeting held re
cently.
Other officers and directors, all re
elected, were; H. J. Tillemans, presi
dent; E. M. Amundson, assistant cash
ier, and L. V. Widmark and John Tille
mans, directors.

Made Vice President
Two Veterans at Mankato
Two ex-servicemen have taken over
their duties on the staff at the National
Citizens Bank of Mankato, Minnesota.
Jerry J. Kigin is in the personal loan
department and Louis W. Legenhausen
is a teller.
Mr. Kigin, who was a first lieutenant
in the Marine Air Corps, enlisted June

At the annual meeting of the stock
holders of the First National Bank of
Marshall, Minnesota, all directors were
re-elected and the following promo
tions were made:
Kenneth E. Sheffield, from cashier
to vice president.
Carl D. Peterson, from assistant cash
ier to cashier.

Opens New Oepnrtm eni

As business began in the Mortgage Department of the Northwestern National
Bank, the above picture was taken. Located on the street floor of the bank build
ing, and immediately adjoining the Home Institute, the new facilities will be con
nected with the main banking floor by escalator. Staff members and officials
(left to right), are: Evelyn Zimmerman (center front); Aimie Pinko; Wm. A.
Benson, assistant cashier; Marilyn Braddy; W. R. Johnson, Mildred Sargent;
M. C. Honsey; Charles Raymond; H. G-. Hagen (desk); R. C. Cooper (desk); and
C. A. Dahl (desk).
Northwestern Banker, March,

1946

Minnesota News

Directors of the bank are as follows:
J. M. Shrader, H. H. Gieseke, H. W.
Addison, E. V. Molle, and Dr. B. C.
Ford.

Before accepting the position of dep
uty treasurer Mr. Ubl had been assist
ant cashier of the Citizens State Bank
of New Ulm for many years.

Joins Sleepy Eye Bank

L. N. Ingalls

Harry J. Ubl, former deputy county
treasurer, who resigned that position
to accept the cashiership of the West
ern State Bank in Marshall, Minnesota,
January 1st, has resigned at Marshall
and is temporarily at the State Bank of
Sleepy Eye, Minnesota, taking the
place of A. A. Manderfeld, who is
receiving treatment at Rochester. Mr.
Manderfeld is assistant cashier of the
Sleepy Eye bank.

Lansford N. Ingalls, president of the
Security State Bank at Hammond,
Minnesota, died recently at the home
of his son, Dr. F. G. Ingalls of Roches
ter, after a six month illness.
Surviving Mr. Ingalls are his sons,
Arthur L. and Dr. F. G. Ingalls of
Rochester, a sister, Mrs. Edith Bingam,
and a brother, E. L. Ingalls of Durango,
Colorado.

Minnesota Representative
J. W. Franks, who has been a resi
dent of Minnesota for 17 years, has
been appointed news reporter and cir
culation representative in that state
for the N o r t h w e st e r n B a n k e r .
Mr. Franks has been in the publish
ing business more than 20 years and
because of his long residence in Minne
sota, is well known to many executives
and business men in the state.
Before becoming associated with the
N o r t h w e st e r n B a n k e r Mr. Franks was

J. W . FRANK S
Now Traveling Minnesota

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horses or tractor. Rigid all-steel frame helps
assure long life accuracy. Keystone-shaped,
all-steel hopper is easy to fill. Bushel per
foot capacity. Outer ends of axles where
load is carried are supported by extra large
Hyatt roller bearings enclosed in self
aligning, dust-proof housings. Single chain
drive. High quality pressure springs. Tubu
lar steel pressure rods. Simple, efficient
power lift available. See your MM dealer.

M i n n e a p o l i s -M o l in e
POWER IMPLEMENT COMPANY
MINNEAPOLIS

Northwestern Banker, March,

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

1946

1, M I N N E S O T A , U. 5. A.

connected with the Crowell Publishing
Company.
He is married and has two children.
Any courtesies extended to him will
be appreciated by the N o r t h w e st e r n
B anker.

Banks Consolidate
The Sherburn National and the
Farmers State Bank of Sherburn, Min
nesota, are consolidating, according to
Leo Howard, cashier of the National
Bank.
The combined bank will operate
with the same officers as the present
National Bank, plus one addition. E. F.
Johnson, Farmers State Bank cashier,
will be vice president. He and M. N.
Johnson will be added to the Sherburn
National board of directors.
Officers of the Sherburn National
Bank who will continue in their for
mer positions are: Henry Schwager,
president; C. M. Landin, vice presi
dent; Leo Howard, cashier, and Mary
Howard, assistant cashier. Directors
are Henry Schwager, C. M. Landin,
Elmer P. Myers, Sherburn, and Leo J.
Seifert and Fred P. Krahmer, Fair
mont.

OUR SP E C IA L
DEPARTMENT
FOR YOU

D . E. C R O U L E Y
V ic e P resid ent

A . F . JU N G E
A sst. Cashier

C A R L F . W IE S E K E
A sst. Cashier

L. P . G IS V O L D
A sst. V ic e P resid ent

These are the men o f the Banks and Bankers
Department, who provide a direct personal
contact between the Northwestern Bank and
its valued correspondents.

They are always

available to assist in providing the many serv
ices which our hanks offer. W e invite you to
call on them.

K E IT H M . B A R N E T T
R ep resen ta tive

M O RROW PEYTON
Re presen tati ve

J. F. RINGLAND,
President

N O R T H W E S T E R N

N A T I O N A L

B A N K

OF MINNEAPOLIS
Marquette, Between Sixth
and Seventh Streets

MEMBER FEDERAL DEPOSIT INSURANCE

CORPORATION

___________________________________________________________________ _______________________________________________

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1946

Minnesota News

The consolidated bank will have de
posits of $1,600,000.
The new bank will be located in the
present National Bank Building.

Talks on British Loan
Paul W. McCracken, director of re
search work at the Federal Reserve
Bank in Minneapolis, spoke at the
weekly meeting of the Rotary Club in
Hotel St. Cloud, St. Cloud, Minnesota,
last month.
His talk was titled “The Loan to
Britain.”
Mr. McCracken at one time was an
economist with the Department of
Commerce at Washington, D. C. He
was recommended to the chairman of
the day, George Meinz, by John Pey
ton, president of the Federal Reserve
Bank.

Named President

Northwestern Director

R. MacDonald has been named presi
dent of the First National Bank of
Stillwater, Minnesota, succeeding the
late Albert J. Lehmicke. Mr. MacDon
ald has been associated with Stillwater
banks for 30 years.

Harold H. Tearse was elected a di
rector of Northwestern National Bank,
Minneapolis, last month, according to
an announcement by Clarence E. Hill,
chairman of the board. Mr. Tearse is
vice president and general manager of
the Searle Grain Company and has
served as a commissioner of the Park
Board since 1944. He is president of
the Minneapolis Chamber of Com
merce and secretary of the Minneapo
lis Chamber of Commerce Clearing
Association.

Thief River Falls
Ardell Tiedeman, a native of North
Dakota and graduate of the University
at Grand Forks in 1942, has joined the
staff of the Union State Bank of Thief
River Falls, Minnesota, and will serve
in the G. I. loan and installment loan
and insurance departments. Mr. Tiede
man is on terminal leave from the
U. S. Army Air Corps, after three and
one-half years of service during which
he attained the rank of major. He
served overseas in the European Thea
ter for 23 months.

Active in civic affairs, Mr. Tearse is
presently chairman of the Hennepin
County Chapter of the American Red
Cross and is a director of the Minne
apolis Orchestral Association and the
Minneapolis Society of Fine Arts.

The Minnesota Commercial Men's Association had a very successful year during
1945.

The statement below indicates its strong financial position.

Liberal sick

ness and accident policies paying from $25.00 to $75.00 a week for disability with
$5,000 for accidental death are available for select risks at a very low cost.

hospital policy covering hospital and surgical expenses is also provided.
Statement of December 31, 1945
LIABILITIES

RESOURCES
%
22.51
27.94
25.15
6.28
3.66
4.92
2.37
3.80

$ 92,443.13
114,780.00
103,312.50
25,787.50
15,013.75
20,193.34
9,742.61
15,600.00

0.44

1,836.36

2.93

12,057.80

TOTAL ........................... 100.00

$410,766.99

Cash .......................................
U. S. Government Bonds.......
Municipal Bonds ...................
Railroad Bonds .....................
Stocks .....................................
Endowments, Cash V alu e.....
Savings and Loan Deposits..
Real Estate .............................
Interest, Dividends Receiv
able .....................................
Market V alue O ver Book
Value of Stocks and Bonds

Disability Claims Pending....................... $ 18,524.00
Death Claim Awaiting Proof...................
5,000.00
Unearned Assessm ents ......................... 40,636.25
Reserve for Taxes, Bills, Etc....................
4,052.03
RESERVE FOR PROTECTION OF
MEMBERS .............................................. 342,554.71

TOTAL ................................................$410,766.99

Write for Applications and Literature

MINNESOTA COMMERCIAL MEN’S ASSOCIATION
PAUL CLEMENT, Secretary
2550 PILLSBURY AVENUE

Northwestern Banker, March,

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

1946

MINNEAPOLIS 4, MINNESOTA

Twin C ity N e ws

ECAUSE deposits have increased
almost $26,000,000 since 1940, de
posit accounts were increased by
2,500 in 1945 alone and veterans’ loans
for homes have totaled almost $500,000,
the Marquette National Bank of Min
neapolis has been forced to expand its
quarters in the Thorpe Building annex.
President Bussell L. Stotesbery said
the expansion into the third floor of
the Thorpe building, doubling the size
of the bank annex, is a temporary solu
tion to the bank’s housing problem. A
two-year lease has been taken on the
space.
The Marquette was built in 1925
after a fire had destroyed everything
but the foundation and sandstone pil
lars of the old State Institution for Sav
ings. The second floor of the Thorpe
building was leased as an annex in
1935.
The new space will provide new of
fices for Ralph W . Manuel, chairman
of the board; the trust department un
der Vice President William F. Kunze;
the comptroller’s department and divi
sion of analysis and research headed
by S. L. Jerpbak, the bookkeeping and
accounting departments. Also included
in the new space will be a board room
and new ladies’ lounge for employes.

Clarence E. Hill, chairman of the
board of Northwestern National of
Minneapolis, has been elected presi
dent and Russell E. Stotesbery, presi
dent of Marquette National, was elect
ed vice president of the Minneapolis
Clearinghouse Association.
H. B. Humason, president of the
American National, was elected presi
dent and C. E. Johnson, president of
Empire National Bank & Trust Co.,
vice president of the St. Paul Clearing
house Association.
Farmers & Mechanics Savings Bank

of Minneapolis has announced a pay
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Federal Reserve Bank of St. Louis

By E. W . Kieckhefer
Special Correspondent
Northwestern Banker

roll deduction plan for savings de
signed to accommodate Minneapolis
residents who acquired the habit of
thrift through payroll purchase of war
bonds but who no longer can get such
payroll deductions.
Employers will deduct the amount
specified by the worker each pay day,
deposit it at F&M in personal savings
accounts for the worker. The worker
will have all the advantages of the
bank’s services including regular in
terest and quarterly statements of de
posits and withdrawals.

Ernst, vice president; Melvin Olson,
cashier and managing officer. All the
officers are associated with the Mid
way National Bank.
David T. Scott, president of the
American Institute of Banking, visited
Twin Cities bankers recently while on
his way from Portland, Oregon, to Bos
ton where he is assistant cashier of the
First National Bank. He reported that
85 per cent of the veterans formerly
employed in banks are returning to
their jobs.

Five affiliates of the First National
Bank of Minneapolis and the First
Bank Stock Corp. have changed their

Consolidated net income of North
west Bancorporation during 1945 has
been reported by President J. Cameron
Thomson at $4,774,480, or $3.08 a share,
compared with $3,680,098, or $2.37 per
share, in 1944. Dividends paid during
1945 amounted to 70 cents per share
with 60 cents in 1944, and book value
of stock outstanding increased $2.60
per share during the year.

names to incorporate the word “First”
with their former names.
The banks involved are the First
Hennepin State Bank, First Produce
State Bank, First Minnehaha National
Bank, First Bloomington-Lake Nation
al Bank and the First Robbinsdale
State Bank, formerly known as the
Security State Bank of Robbinsdale.

J a m ie so n
&
C o m p a n y

Two assistant cashiers were elected
at the annual meeting of the First
Minnehaha National Bank. They are
Th omas G. Jackson, who has been with
the bank since 1943, and Roy N. Strom,
who has been at the bank since 1936.
Application for organization of the
Highland Park State Bank in St. Paul’s
Highland Village area near the Ford
plant has been granted by the Minne
sota Commerce Commission. The new
bank will have $50,000 capital, $10,000
surplus and $5,000 undivided profits.
A. E. Ritt is to be president; Martin

Members

New York Stock Exchange
and

Other Principal Exchanges

★

STOCKS
BONDS
COMMODITIES
★
MINNEAPOLIS
FARGO
ST. PAUL
GRAND FORKS
DULUTH
SIOUX FALLS
EAU CLAIRE
PRIVATE WIRES

________________________________ _
Northwestern Banker, March,

1946

Minnesota News

Net operating earnings of First
Bank Stock Corp. affiliates for 1945

voluntary liquidation, according to an
announcement by J. Forrest Yetter,
president of the bank.

amounted to $5,907,589 compared with
$5,232,034 in 1944. The portion of this
which was applicable to the corpora
tion and other active affiliates was
$5,613,187, equal to $1.98 a share, com
pared with $1.74 per share earned in
1944. Dividends during 1945 totaled
75 cents per share. # #

At liquidation the First National has
a capital structure showing $35,000 in
capital stock, $15,000 in surplus and
$10,000 in undivided profits. During
the years of its operation as a national
bank it has paid out in excess of $60,000
in dividends to its stockholders. De
posits as of its last published statement
on December 31, 1945, were at an alltime high of $1,232,587.38.

Stephen Bank Closing
The First National Bank of Stephen,
Minnesota, oldest financial institution
in Marshall county and closely identi
fied with the progress of that commu
nity for nearly 58 years, has gone into

The State Bank of Anoka, Minne
sota, has been granted membership in
the Federal Reserve System as of Feb

F I F T Y - A N D ONE

FR E D R IC K SE N
President

M . A. W IL S O N
Vice President

1946 marks our 51st year of
service to the Sioux City market

W . G. N ELSON
Assistant Vice President

area.

W . C. SCH ENK
Cashier

The

H. C. L IN D U S K I
Assistant Cashier

e x p e r ie n c e

have

gained in this period is yours

C. L. A D A MS
Assistant Cashier

for the asking. Let us share it

J. S. H A V E R
Assistant Cashier

with you as we face the bank

J AMES L. SM IT H
Auditor

ing problems of today and of
tomorrow!

ruary 1, 1946, it was announced last
month by the Federal Reserve Bank
of Minneapolis. Officers of the State
Bank are R. W. Schmidt, president;
James B. Berry, vice president; Paul C.
Heard, cashier, and Gerald L. Bryan
and Elaine Hartman, assistant cash
iers. Directors of the bank are Mr.
Berry, Mr. Heard, Mr. Schmidt, Carl
E. Bonnell, E. V. Larson and H. R.
Thurston.

Bankers Conference
Nearly 200 bankers attended the sev
enth annual Minnesota Bankers con
ference at the University of Minnesota
last month. The many speakers dis
cussed the trend of rural and urban
land values, consumer credit, postwar
agricultural prospects, bank services,
bank deposits and service to veterans.
Dale Brown, assistant vice president
of the National City Bank of Cleveland,
told the conference that the average
banker must be more aggressive in
selling his service to customers if he
is to realize the full worth of his bus
iness in the future. He said that any
customer who uses one service in the
bank could just as well be using three
or four others and if he is not, the
fault lies with the banker.
Bankers were called on by Dr. Aus
tin A. Dowell, professor of agricultural
economics at the University Farm, to
aid in the fight against an expected
large-scale boom in farm land prices
within 10 years. He urged them to
discourage speculation, give sound ad
vice to prospective farm buyers, work
for greater price stability, support full
employment and encourage a sound
foreign trade policy.
Paul W. McCracken, director of re
search of the Federal Reserve Bank,
predicted a tapering off of wartime
bank deposits in Minnesota. He said
there was a larger relative gain in
Minnesota deposits through the war
years than the country as a whole, so
that even if deposits nationally con
tinue to expand there will probably be
a leveling off of Minnesota deposits or
else a slight decline.

Heads Farm Group

i v e

t o c k

N a t io n a l
OF

SIOUX

CITY,

M E M B E R

" y /i e

Northwestern Banker, March, 1946

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Federal Reserve Bank of St. Louis

B
F, D .I.C .

t /t e

IOWA

Edwin T. Peterson of St. Paul, man
ager of the farm management depart
ment of the Merchants Bank, was
elected president of the Minnesota
Farm Managers Association, succeed
ing Paul E. Benson of the Minnesota
Valley Canning Co., at the conclusion
of the annual meeting in St. Paul.
William L. Cavert of the farm credit
administration, St. Paul, was named
first vice president, and S. J. Oberhauser, Minneapolis, second vice presi
dent.

South Dakota News

SOUTH
D A K O T A
NEWS
C. O. GORDER
President
Deadwood

Acting Secretary
LOIS J. HALVORSEN

GEORGE M. STARRING
Secretary-Treasurer
Huron

(In the Service)

State Meeting in June
The South Dakota Bankers Associa
tion will hold its 1946 convention on
June 14th and 15th, it was announced
from the association’s state headquar
ters in Huron.
Dates for the 1946 convention were
set at a meeting of the executive asso
ciation, presided over by C. O. Gorder
of Deadwood, association president.
Although definite site of the conven
tion has not yet been decided upon,
association offices said the conclave
would be held in the Black Hills.
Chief topic of discussion at the exec
utive council session was the central
states school for bankers in the 14
north central states. The council en
dorsed South Dakota’s co-sponsorship
of the school.

State Deposits Increase
Deposits in state banks and trust
companies in South Dakota totaled
$184,072,031 at the end of 1945, for a
$42,452,025 increase over deposits six
months earlier, Verne W. Abeel, state
banking superintendent, disclosed.
Mr. Abeel said demand deposits in
creased from $89,099,701 to $128,110,626
to account for over $39,000,000 of a
$44,242,219 liability advance. Time de
posits went up from $24,178,292 to
$28,209,674, while U. S. government de
posits, including p o s t a l savings,
dropped from $12,213,054 to $11,492,108. Total liabilities were $193,771,959.
Resources rose from $150,821,684 to
$193,771,959 during the six-month pe
riod, Abeel said. Loans and discounts
at $26,116,836 were down slightly, but
U. S. government obligations, includ
ing war bond purchases, soared from
$75,403,920 to $105,481,683.
In March, 1945, deposits were $130,902,063 and resources were $139,781,478.

Re-elected President
R. F. Looby was re-elected president
of the Artesian State Bank of Artesian,
South Dakota, at the annual meeting
of stockholders. A. R. Hallander was
named vice president to succeed J. O.

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Federal Reserve Bank of St. Louis

Foote who has moved to Rapid City.
O. E. Adams was re-elected as cashier;
Mrs. Adams and Gladys Witzel, book
keepers and tellers, and John H.
Adams was chosen as assistant cashier.

Assistant Cashier
Stuart Holdhusen has been elected
assistant cashier of the Ipswich State
Bank of Ipswich, South Dakota. He
is a graduate of State College, where
he majored in accounting and finance.
He received ROTC training and was
commissioned a reserve officer and in
March, 1941, was called into the serv
ice. In the army he was advanced
to the rank of major.

Bancorporation Meets
Officers of the Northwest Bancorpo
ration of Minneapolis, other cities
throughout South Dakota, and particu
larly officers and directors of the First
National Bank of the Black Hills
group, held a business conference in
the Alex Johnson Hotel in Rapid City,
South Dakota. The meeting was high
lighted by an address by Cameron
Thompson, president of the Northwest
Bancorporation of Minneapolis. He
spoke on economic factors and public
relations of the banking industry.
Other officers from Minneapolis in
cluded V. E. Luscher, vice president;
Carl E. Voigt, assistant vice presi
dent, and A. R. Evans, manager of the
investment department. Representa
tives of the branches in Sioux Falls,
Aberdeen and Watertown were also
present, as well as officers and direc
tors of the affiliated banks in the Black
Hills.

Vice President Returns
W. M. Willy was re-elected president
of the Security Bank & Trust Company
of Madison, South Dakota, at the an
nual meeting of the board of directors.
Other officers, all re-elected, include:
E. J. Dirksen, vice president; James
Robson, vice president; Frank Elbert,
cashier; J. A. Deragisch, Jr., assistant
cashier; Gladys Campbell, assistant

cashier, and Nellie Amert, assistant
cashier and secretary.
E. J. Dirksen, who was employed by
the federal banking department as an
examiner for six months, was wel
comed back. He has resumed his ac
tive duties in the bank as vice presi
dent.
Members of the board of directors,
named by the stockholders at their
annual meeting, include Oscar A. Ol
son, Roy E. Willy, James E. Robson,
E. J. Dirksen and W. M. Willy.

C. L. Breckenridge
C. L. Breckenridge, 64, cashier of
the First National Bank of Armour,
South Dakota, and president of group
three, South Dakota Bankers Associa
tion, died at his home in Mitchell re
cently.
A long-time resident of the Mitchell
area, he was in the real estate business
in Mitchell and Ethan for many years
and joined the Armour bank eight
years ago.

Tri-County Meet
H. A. Viergutz, vice president of the
Federal Land Bank of Omaha, was the
principal speaker at a meeting of the
Tri-County National Farm Loan Asso
ciation at the Legion Hall at Beresford,
South Dakota, last month.

McIntosh Bank Closing
R. H. Jackson, president of the Se
curity State Bank of McIntosh, South
Dakota, has announced the bank will
close as soon as all deposits are trans
ferred and loan and other banking
business is terminated. Mr. Johnson
said the volume of business transacted
by the bank was not sufficient to offset
increasing overhead expense, and the
officers and directors had voted to liqui
date. Mr. Jackson has been with the
Security State for 24 years.

Bank for Hill City
With the final approval of the repre
sentative of the Federal Deposit Insur
ance Corporation, a new bank becomes
assured for Hill City, South Dakota.
The new bank will be called the Rushmore State Bank and will be open for
business soon. The bank will be capi
talized for $25,000 and the stockhold
ers also invest $5,000 surplus and $2,500
undivided profits, making a total work
ing capital of $32,500. The new officers
and directors are: John E. Loberg,
president; Harry Belmont, vice presi
dent; Ralph Hockridge, cashier. The
board of directors also includes
Charles Hare and James Clinton.
Northwestern Banker, March,

1946

South Dakota News

Abbott Buys Winner Bank
C. J. Abbott has purchased the Farm
ers State Bank of Winner, South Da
kota. The only bank in that town, the
Farmers State, has deposits of $4,000,000. No announcement of plans for
operation or change in officers has
been made as yet.

INTEGRITY
Integrity is a lot o f little things. It’s
the years the g irl at the sw itch board
has been on the job , the p rid e a
w ork er takes in his righ t to be
called a craftsm an. It’s the eager
ness o f the newest clerk to serve
the custom er w ell. It’s many other
little things.
But integrity is a lot o f b ig things,
too. It’s the reputation o f the c o m
p a n y y o u d o b u sin ess w ith , its
u n com p rom isin g honesty, its fair
ness to com p etitors—and to y o u —
its standing in the com m unity, its
above-board policies.
S om e c o m p a n ie s are lik e g o o d
friends. Y o u can depen d on them.
Y o u k n o w y o u ca n d e p e n d o n
them.
T h e d is b u r s e m e n t s u p p lie s y o u
buy need this integrity. T h ey must
be dependable. T h ey must liv e up
to e x p e c t a tio n s . T o d d q u a lity
means the best w ork m a n sh ip —the
best materials—the greatest possi
ble care in m akin g a p rod u ct that
w i l l p r o t e c t y o u . . . a n d d e s e rv e
you r lasting confidence.
W h e n y ou use T o d d products y ou
buy integrity. A g o o d and depen d
able friend is w atch in g you r inter
ests.

TODD SERVICES and PRODUCTS
• Super-Safety Checks
• Pass Books and Check Covers
• Todd Protectograph
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DISTRIBUTORS THROUGHOUT THE WORLD

Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

Sioux Falls

News

sist Dan Slattery, manager of the Mad
ison branch of the Northwest Security
National Bank. The new staff member
served four years in the army air
forces, rising to rank of major. He is
a graduate of State College. While
serving in the southwest Pacific he
married an Australian girl in Bris
bane. His wife and daughter came to
this country from Australia to join him
at Madison.

ILLIAM C. DUFFY, president of

The Northwest Security National
the Union Savings Bank, Sioux
Bank in Sioux Falls experienced on
Falls, was elected president of the
Sioux Council, Boy Scouts of America, February 13th the heaviest day’s busi
for the coming year, at the council’s ness in its history. Altogether 13,000
18th annual meeting. He succeeds Roy debits were handled and recorded on
E. Willy, Sioux Falls, who had filled the IBM machine. Employes worked
that office for the past five years. The late to take care of the rush of busi
Sioux council consists of 16 counties ness.
Closely identified with development
in South Dakota, gix in Minnesota and
one in Iowa. Duffy has served as of the Rosebud area of the state is
chairman of the council finance com Herbert E. McKee, manager of the
mittee, council treasurer, council exec Gregory branch of the Northwest Se
utive board member, chairman of the curity National Bank. A veteran bank
John Bradford district committee and er, he punched cattle with Tom Berry,
former South Dakota governor, in the
troop committee member.
Harold O. Engen, vice president and Rosebud country in the early days.
cashier of the Union Savings, was re
elected council treasurer.
“Do you think business would im
prove or would the country’s economy
Men who have returned lately from suffer if the OPA were discontinued?”
the armed forces to resume various
Confronted with this question by a
positions at the National Bank of
South Dakota in Sioux Falls are C. newspaper columnist, Torn S. Harki
Wendell Scnrr, loan teller, who served son, president of the National Bank of
four years in the navy; Arthur E. Fri South Dakota, Sioux Falls, replied:
day, auditing department, veteran of
three and one-half years in the navy,
and John O’ Donnell, commercial teller,
who spent four years in the army.
Assistant Cashier Ole H. Bondhus is
expected to return early this spring
from the navy, in which he is rounding
out his fourth year.
Tom S. Harkison, president of the
National Bank of South Dakota, and
Ralph M. Watson, president of the
Northwest Security National Bank, are
directors of the newly formed Elbon
Club in Sioux Falls, composed exclu
sively of El Riad Shrine members and
their families.
Both men attended a group meeting
of the Iowa Bankers Association in
Sioux City February 12th.
H. R. Kibbee, Jr., vice president of
the Commercial State Bank at Mitchell,
played host to a group of South Dakota
bankers marooned in his city by a bliz
zard while en route to a Northwest
Bancorporation meeting in Rapid City.
He was reported to have performed
very admirably in that role.
Burt Van Wald, originally of Redfield and formerly athletic coach at
Gregory, has gone to Madison to as

“Equitable price controls at the mo
ment have a place in our economic pic
ture. However, the exercise of that
control should not be permitted to
curtail production. Production is the
basis of our future prosperity, and
production is not inflationary. De
mand without production creates in
flation.”
Checks totaling $9,980.32, represent
ing unclaimed dividends for 66 South
Dakota banks, were transferred to the
permanent school fund by the state
banking department, according to John
Lundeen, commissioner of school and
public lands. Banks are required by
state law, Lundeen pointed out, to
advertise once a week for two weeks
when dividends are not paid for 10
years after final termination of liquida
tion. If dividends remain unclaimed
for 90 days, the banking superintend
ent must pay the money into the school
fund. Largest transfer, it was re
ported, came through the Farmers
Savings Bank of Wessington Springs,
which enriched the fund by $1,011.40.
The Stockmen’s Bank of Hot Springs
turned over $981.72; the Bank of Hart
ford $523.17, and the Bennett County
Bank at Martin $515.54.

North Dakota News

NORTH
DAKOTA
A. C. IDSVOOG
President
Grafton

NEWS

Meet in Minot
North Dakota affiliates of the North
west Bancorporation, with headquar
ters in Minneapolis, convened in a
two-day session in the Elks Lodge
room in Minot, North Dakota, last
month.
Principal speaker was J. Cameron
Thomson, Minneapolis, president of
the Northwest Bancorporation. Other
officers of the group accompanying him
to the Minot meeting were: Von E.
Luscher, vice president; A. R. Evans,
manager of the investment depart
ment; Carl E. Voigt, assistant vice
president, and Miss Grace Griffee, Mr.
Thomson’s secretary, all of Minneap
olis.
Guest speakers included Dr. Frank
L. Eversull, president of the North
Dakota Agricultural College, w h o
spoke on agricultural conditions in
North Dakota; Attorney Halvor L.
Halvorson, Minot, who spoke on the
Missouri basin project; C. C. Watam,
Fargo, secretary of the North Dakota
Bankers Association, and John Gra
ham, Bismarck, state examiner.
Main topics of discussion at the con
ference were agricultural financing, in
stalment financing, and general bank
ing, as well as a review of the past
year’s activities of the corporation, and
its future possibilities in North Dakota.
Represented at the meeting were
officers and directors of 11 North Da
kota banks, located at Fargo, Bis
marck, Mandan, Valley City, James
town, Hillsboro, Grafton, Maddock,
Napoleon, Wahpeton and Minot.

Two Veterans Return
Two additions were made in the offi
cers of the American State Bank of
Williston, North Dakota, at the annual
meeting of its stockholders.
C. O. Harding and W. S. Davidson,
Jr., recently discharged veterans, have
been appointed assistant cashiers. The
other officers are: W. S. Davidson,
president; M. M. Millhouse and O. W.
Bell, vice presidents; F. E. Stewart,
cashier; and T. M. Davidson and Ralph
M. Mode, assistant cashiers.

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

C. C. W ATTAM
Secretary
Fargo

There were no changes in the direc
tors and they are: W. S. Davidson,
M. M. Millhouse, O. W. Bell, J. C.
Canning and F. E. Stewart.

Walhalla State Bank, Walhalla, from
$25,000 to $30,000.
The application of the Farmers Se
curity Bank of Washburn for permis
sion to discontinue and terminate the
existence of its paying and receiving
station at Mercer, North Dakota, was
approved, and the permit was canceled
on the records of the state examiner
as of January 5, 1946.
The Farmers and Merchants State
Bank of Berlin was placed in volun
tary liquidation by appropriate action
of its stockholders and directors as of
October 31, 1945, and the final exami
nation of this bank was made as of
December 27, 1945.

For the first time in the history of
Elgin, North Dakota, an Elgin bank
has topped a million dollars in its de
posits and assets. At the close of busi
ness recently, the Farmers State Bank
of Elgin showed a total of $1,034,460.

Lynn U. Stambaugh, Fargo, North
Dakota attorney and past national
commander of the American Legion,
who was named by President Truman
to membership in the five-man board
of directors of the Export-Import
Bank, and whose nomination has been
approved by the Senate, left Fargo for
Washington where he and Mrs. Stam
baugh will make their home.
One of the two Republican members
of the board, Mr. Stambaugh said be
fore his departure that no particular
assignment has been given him. The
board, which is authorized to make
loans to foreign countries, will meet
each Wednesday with special meetings
slated as occasion arises.
Mr. Stambaugh wound up his con
nection with the law firm of Cupler,
Stambaugh and Tenneson, with whom
he had been associated since his return
from service in World War I in 1919.
He expects to return to Fargo from
time to time as his duties permit.
Herbert E. Gaston, former assistant
secretary of the treasury, who was
also named to the Export-Import Bank
board of directors, is also a former
resident of Fargo. He edited the
Fargo Courier-News from 1917 to 1920.

Bank Board News

Vote Dividend

Elects Assistant Cashier
Thomas S. Kleppe, who entered the
armed forces April 15, 1942, has re
ceived his final discharge and has been
elected assistant cashier of the Dakota
National Bank of Bismarck, North Da
kota, in charge of the personal loan
department.
While in the armed forces he was in
the finance division. He was retired
from the service last December 21st
for physical disability.
From March 14, 1941, to August 23.
1941, he was employed by the Stock
Growers Bank of Napoleon. From Sep
tember 1, 1941, to January 20, 1942, he
was teller in the Dakota National
Bank. He returned to Napoleon Jan
uary 21, 1942, where he remained until
he entered the armed forces.

Tops Million Dollars

There were no changes in bank titles,
liquidations, consolidations, or closings
during the month of February in
North Dakota.
The following capital increases were
approved by the State Banking Board
at the January meeting:
Grant County State Bank, Carson,
from $15,000 to $25,000; Casselton State
Bank, Casselton, from $20,000 to $35,000; Walsh County State Bank, Graf
ton, from $45,000 to $75,000; Farmers
State Bank, Lisbon, from $50,000 to
$75,000; American State Bank, Minot,
from $50,000 to $75,000; Commercial
Bank of Mott, Mott, from $25,000 to
$35,000; Merchants Bank, Rugby, from
$25,000 to $35,000; First Security Bank,
Underwood, from $15,000 to $25,000;

A dividend of 40 cents per share on
2,831,188 shares outstanding of the
capital stock of First Bank Stock Cor
poration, payable March 11, 1946, to
stockholders of record at the close of
business February 21, 1946, was de
clared by the directors at their annual
meeting held February 13th, in Minne
apolis.
A dividend of like amount was paid
to stockholders on September 10, 1945.
Last Look
Recruit: Do I have to hold my head
up like this all the time?
Officer: Of course!
Recruit: Well, I guess I’ll never see
you again.
Northwestern Banker, March,

1946

Sound

Ba n k i n g

ser v ice

We will be pleased to have you
drop in for a visit any time you
are in Omaha. Northwest cor
ner, 16th and Farnam Streets.

OF F I CERS
H ER B ER T M . BU SH N ELL,

ELLSW O R TH MOSER,

Executive Vice President
V IC T O R B. C A LD W E L L ,

A R T H U R D. ANDERSO N,

Vice President
R IC H A R D H. M A L L O R Y ,

JA M ES L. SH IELD S,

Assistant Cashier

Vice President
THO M AS F. M U R PH Y,

NELS L. SH O LIN ,

Vice President
ELD RID G E C. M cE LH A N E Y ,

CASPER Y . O FF U T T ,

Asst. Trust Officer

Vice President
EDW ARD W . L Y M A N ,

H EN R Y B. PIER PO N T,

Asst. Trust Officer

Asst. Vice President

LEO M. BROW N,

H A R R Y E. ROGERS,

Asst. Vice President

U N IT E D S T A T E S
Rational B A N K
Northwestern Banker, March, 1946

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Federal Reserve Bank of St. Louis

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Nebraska News

was in 1908 with a Wallace bank, con
tinuing with that organization and its
successor in the field until his resigna
tion.
Mr. Blouch still holds his bank stock
and will remain a director of the in
stitution. He will continue to super
vise some 30 farms, as he has for a
number of years, and will retain his
general insurance business with his
office in his home.

NEBRASKA
NEWS
CARL G. SWANSON
Secretary
Omaha

V. E. DOLPHER
President
David City

Agricultural Consultant
Eldon F. Goble, recently appointed
agricultural consultant of the Beatrice
State Bank of Beatrice, Nebraska, took
over his new job March 1st.
Mr. Goble graduated from the Uni
versity of Nebraska college of agricul
ture in 1942.
With a field artillery commission
earned at the university after four
years in ROTC, he was called to duty
in May, 1942, and eventually became
commander of the 514th field artillery
battalion, which he led through the
French Ardennes, Rhineland, and Cen
tral Germany campaigns. He won the
French Croix de Guerre for the effec
tive firing of his unit on the French
coast.

Elect Directors
At the anual meeting of the stock
holders of the State Bank of Burchard,
Nebraska, Mrs. Viola Obermann and
Martin Wehn were elected to the
board. Mrs. Obermann was elected
to the position of cashier and Frank
Coonley of York, Nebraska, was ap
pointed chief bookkeeper.

Charles D. Young
Charles D. Young, 61, former Laurel
and Coleridge, Nebraska, banker, died
at his home in Norfolk, Nebraska,
from a heart attack last month.
Mr. Young went to Laurel in 1904
and was employed in the First Nation
al Bank. After serving as a clerk, he
became assistant cashier and then
cashier of the bank.
In 1913 Mr. Young moved to Cole
ridge where he became president of
the First National Bank. He moved
to Norfolk in 1923 to become district
agent for a life insurance company, a
position he held at the time of his
death.

The new institution has a total capi
talization of $35,000—$25,000 capital
and $5,000 surplus and $5,000 reserve
funds. It is a member of the Federal
Deposit Insurance Corporation.
Taylor Jarman is president of the
bank, Otto Nielsen, vice president, and
C. R. Caley, cashier.

Back to Bank
Stanley Bednar, who was recently
discharged from the army after service
in Europe, returned to his duties at
the Washington County Bank of Blair,
Nebraska, where he is assistant cash
ier. He had been on leave of absence
from the bank since early 1944.

Buy Kimball Bank
W. S. Rodman, Walter M. Rodman
and Charles B. Rodman announced the
sale of the controlling interest in the
American National Bank of Kimball,
Nebraska, recently to J. I. Christian
sen and C. E. Nelson. Mr. Christian
sen, who is the new president of the
bank, has had 30 years experience in
the banking business, the last 20 years
of which were with the Seven Valleys
State Bank of Callaway, Nebraska.
Mr. Nelson, who is the new cashier, is
from Kearney, Nebraska. He has had
25 years banking experience at Axtell
and Keene, Nebraska.

Promoted to President
At the annual meeting of the stock
holders of the American State Bank,
the following officers were elected:
President, M. M. Nelson (formerly
cashier); vice president, T. N. Thomas;
cashier, H. J. Knox; chairman of board
of directors, C. A. Kingsbury.
Directors elected: C. A. Kingsbury,
M. M. Nelson, N. T. Thomas and H. J.
Knox.

Exeter Banker Resigns
Springfield Gets Bank
The Springfield Bank, first in the
town of Springfield, Nebraska, since
1932, opened for business February 23,
Banking Director J. F. Peters an
nounced.

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Federal Reserve Bank of St. Louis

When he resigned recently as cash
ier of the First National Bank of Exe
ter, Nebraska, Lesher T. Blouch closed
a career of 38 years in bank work, first
as a bookkeeper and later as an official
and stockholder. His first position

Elected Bank Head
L. A. Larson, who has been execu
tive vice president of the Farmers and
Merchants State Bank of Bloomfield,
Nebraska, was recently elected presi
dent of the institution. He succeeds
O. M. Jeffery of Plainview, Nebraska,
who has sold a substantial part of his
stock holdings to Mr. Larson, Wm.
Lamprecht, Jr., A. L. Burbridge and
Ralph High.
The board of directors is now com
posed of the following: L. A. Larson,
Wm. Lamprecht, Jr., A. L. Burbridge,
Ralph High and O. M. Jeffery.
At this time also, officers were elect
ed for the following year, as follows:
Mr. Larson, president; Mr. Lamprecht,
Jr., vice president; Frank Hughes,
cashier; and Harry Meyer, assistant
cashier.
The bank has assets of approxi
mately three-quarter millions and has
during the past several years made
substantial increases in both capital
and surplus accounts.

Receives Rotary Award
C. A. Sweet, Sr., cashier of the Bank
of Palmyra, Nebraska, received the
annual service award of the Nebraska
City Rotary club at their meeting re
cently. A dinner at the Hotel Grand
preceded the presentation.

Clearinghouse Head
Emil Wolf of North Bend, Nebraska,
was elevated to the presidency of the
First Nebraska Regional Clearing
house Association at a dinner meeting
recently at Hotel Pathfinder in Fre
mont. The North Bend banker had
served as vice president the past year
and succeeds George Hedelund of Blair
as head of the eight-county organiza
tion.
Louis Novak of Brainard was elect
ed vice president and Ernest Gaeth
of the Stephens National Bank of Fre
mont was re-elected secretary-treas
urer. Fifty-five bankers were present
from Dodge, Saunders, Washington,
Burt, Butler, Colfax, Sarpy and Doug
las counties.
Speakers were L. Dale Matthews
and John McCumber, Omaha, and Carl
Ganz, Lincoln, who discussed various
phases of installment loans. Visitors
Northwestern Banker, March,

1946

Nebraska News

included V. E. Dolpher, of David City,
president of the Nebraska Bankers
Association, and Carl G. Swanson, of
Lincoln, association secretary, who
formerly was state treasurer.

ed for the current year: R. C. Miller,
president; H. M. Counce, vice presi
dent and cashier; and J. K. Miller and
Shirley Leffler, assistant cashiers.

Elected Trustee

Attends Conference
R. W. Trefz, president of the Bea
trice State Bank, Beatrice, Nebraska,
was in Chicago last month to take part
in a three day conference of the Con
sumers Credit Committee of the Amer
ican Bankers Association. Mr. Trefz
is representative of the midwest region
and one of nine members of the com
mittee.

Kenneth G. Harvey, president of
the Douglas County Bank of Omaha,
was elected to the board of trustees of
the Nebraska Children’s Home Society
at the board’s annual meeting last
month. The Douglas County Bank’s
deposits have grown from $1,670,000 in
June, 1942, to over $7,500,000 at the
close of 1945 business.

Retires After Fifty Years
Return to Northern Trust

Home-Owned Bank
A group of Hayes Center, Nebraska,
citizens has purchased the stock of the
Waggenhorn estate and Charles Bloedorn in the First National Bank of
Hayes Center, making the bank en
tirely locally owned now.
At a meeting of the new owners re
cently the following officers were elect

BANKS

Bought and Sold

The Northern Trust Company of
Chicago, Illinois, announces that Doug
las R. Fuller and James W. Karraker,
second vice presidents in the banking
department, have returned from mili
tary service. Mr. Fuller left the navy
as lieutenant commander, h a v i n g
served from 1942 to January, 1946.
Mr. Karraker, who began his army
service in 1941, was recently dis
charged as lieutenant colonel in Chi
cago Ordnance office.

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
40 Years Satisfactory Service

THE CHARLES E. WALTERS CO.
OM AHA. NEBRASKA

Assistant Vice President
Elevation of Ashton Carhart to an
assistant vice presidency of the First
National Bank of Minneapolis was an

W e solicit the
business of banks
on the basis of
our own record.

FIRST
IATI M L
R I M ST. JOSEPH, MISSOURI
0

MEM BER

N orth w estern

FEDERAL

Banker, March,

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

D E P O S IT

7946

nounced by Henry E. Atwood, presi
dent. Mr. Carhart, who was recently
released from the army with the rank
of major following nearly four years’
service, was elected to the new post
last month and has assumed duties as
a loaning officer of the bank.
Joining the First National Bank of
Minneapolis in 1929, Mr. Carhart en
tered the credit department the fol
lowing year and served there until his
departure for military duty. He was
elected an assistant cashier of the bank
in 1938.

IN S U R A N C E

C O R P O R A T IO N

The board of directors of the First
National Bank of St. Louis has an
nounced the resignation of Richard S.
Hawes, senior vice president, who re
tired March 1st after more than fifty
years of service. Mr. Hawes’ banking
experience has been entirely with the
First National Bank and its predeces
sors. Mr. Hawes stated that it is his
purpose to relax and rest, and that he
is glad that he will now have oppor
tunities to do many things and go
many places which he has never had
time for before.
His first job was in St. Louis as
office boy for the Mississippi River
Commission. On January 1, 1893, he
secured a position with the old Chemi
cal National Bank, which in 1897 was
succeeded by the Third National Bank.
In 1911 he was elected vice president
of the Third National Bank. In 1919,
when the First National Bank in St.
Louis was organized, through consoli
dation of the Mechanics-American Na
tional Bank and the St. Louis Union
Bank with the Third National Bank,
he was elected vice president.
William C. Connett has been elected
first vice president and a director, to
succeed Mr. Hawes. He was born on
a farm in Buchanan county near St.
Joseph, Missouri. He was graduated
from Manual Training School and St.
Louis law school and took postgradu
ate work at the University of Virginia.
He practiced law in St. Louis for 20
years before being elected vice presi
dent of the old Liberty Central Trust
Company in 1922. When the Liberty
Central was merged with the First Na
tional Bank in St. Louis in 1929, he
then became a vice president of that
bank.
Source of Supply
Chaplain, concluding a stirring ser
mon on temperance: “And so all the
liquor in the nation should be thrown
into the river.”
Choir Leader: “ The next selection
by the choir will be ‘Shall We Gather
at the River?’ ”

Nebraska News

moved into the bank’s outer lobby
while the remodeling was under way.
It was expected that the work would
take about two months.
Daniel J. Monen of the Omaha Na
tional Bank was named treasurer of
the Omaha Community Chest and Wel
fare Fund at the annual meeting. Mor
ris E. Jacobs was elected president,
succeeding W. O. Swanson. Mrs. C.
W. Mead was second vice president
during 1945. Edgar M. Morsman, III,
was elected new first vice president.

HE Omaha Clearing House Associa bers of the commission, which built
tion has given an additional contri and manages the South Omaha bridge
bution of $3,000 to the Children’s Meacross the Missouri River. James J.
morial Hospital of Omaha in the drive Fitzgerald was renamed to the commis
for $500,000 which was nearing com sion for four years. He is treasurer of
the commission.
pletion recently.

Kay K. Ridge, vice president of the

Omaha National Bank, was elected a
trustee of the Florence Home Associa
tion at Omaha recently.
J. F. McDermott, vice president of
the First National Bank of Omaha, was
speaker when more than 500 new mem
bers of the American Legion were initi
ated at Council Bluffs. His topic was
“ The Veteran and the Legion.”
John M. Douglas and J. Cliff Rahel,

Omaha investment bankers, w e r e
named co-chairmen of the initial gifts
committee for the Red Cross campaign
in Douglas county, including Omaha.
Ford Bates is general chairman.
W. I). Adkins, retired South Omaha
banker and merchant, was re-elected
chairman of the Omaha Bridge Com
mission at the annual meeting. Mr.
Adkins, 83, is one of the original mem

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

The Lady Chapel of St. Cecilia’s
Cathedral in Omaha was the setting
for the wedding of Miss Mary Kathryn
Murphy, daughter of Mr. and Mrs.
Thomas F. Murphy, to Carl J. Haase,
son of Mrs. Martha Haase. The bride’s
father is a vice president of the United
States National Bank of Omaha. The
couple went on a wedding trip to New
York City.
It’s a big occasion when a family gets
together after five years of separation.
And so Mr. and Mrs. Richard B. Mal
lory gave a reception at the Blackstone
Hotel in Omaha to celebrate. Mr. Mal
lory, recently discharged after navy
service, is a vice president of the
United States National Bank of Omaha.
Extensive remodeling operations
have started in the savings department
of the United States National Bank of
Omaha. Tellers’ cages and desks were

Lieut, (j.g.) and Mrs. John F. Davis
and their children, Carol and Tommy,
will be back at their Omaha home late
in March. Lieutenant Davis, with the
12th Naval District at San Francisco,
expected to be released from service
about February 15th. His family
joined him in California last Novem
ber. He is on leave from his duties at
the First National Bank of Omaha.
It was June-in-January recently at
the home of Mr. and Mrs. Alvin E.
Johnson. Mr. Johnson is president of
the Livestock National Bank of Omaha.
Their daughter, Mrs. Philip H. Olson,
and Mr. Olson, were hosts at an indoor
picnic. Guests wore blue jeans and
lumber jackets and ate a potluck sup
per which featured baked beans, meat
loaf and other picnic fare. The party
was held in the Johnson’s recreation
room.
J. M. Harding, investments, was
elected president of the Greater Omaha
Association at the annual meeting. A
new and expanded program w a s
planned. It was the first change in
officers for seven years. Ford E.
Hovey, president of the Occidental
Building and Loan Association, had
been president since 1938. Before that
J. E. Davidson was president for 11
years.
Other new officers include Farrar

Northwestern Banker, March,

1946

Nebraska News

Newberry, vice president; Harvey Milliken, secretary; W . Dale Clark, treas

banks had deposits of less than $250,000, Mr. Peters said.
On December 30, 1944, 63 banks
noted deposits of more than one mil
lion dollars, including 15 above two
million dollars. On the same date, 27
banks reported deposits of less than
$250,000.
From June 30 to December 31, 1945,
United States Government bonds held
by the banks increased $47,667,883 and
cash due from other banks rose $11,693,984. Federal deposits decreased
$780,791.

urer. Mr. Clark is president of the
Omaha National Bank.
Bank and insurance officials, lawyers
and college professors addressed the
Nebraska Association of Small Loan
Companies at a convention in Omaha
recently.
They included Stanley A. Matzke,
Nebraska insurance commissioner, and
J. Fred Peters, Nebraska banking di
rector, who said there are many in
quiries and applications from persons
wanting to start small loan companies.
Capt. William A. Sawtell, Jr., son of
Mr. and Mrs. W. A. Sawtell of Omaha,
has been on terminal leave from the
army. He arrived in Omaha from Fort
Sill, Oklahoma.
Captain Sawtell returned last fall
after nearly a year in Germany. He
is the son of the president of the Stock
Yards National Bank of Omaha.
Earl Liggett, chief reviewing ap
praiser for the Omaha Farm Credit
Administration District, has retired
after twenty-three and one-half years
of service with the Federal Land Bank
of Omaha.
Oscar W. Hahn, associate reviewing
appraiser, succeeded Mr. Liggett.
Mr. Liggett, 63, has driven a car
more than a half million miles on the
job and plans to enjoy his retirement
—by driving some more. “There are
lots of places in this country that Mrs.
Liggett and I want to see,” he said.
“ I’ve always had a yen to drive to
Alaska, too, and we’re going to do it.”
# #

h u n k

s . . .

BANKERS YOU KNOW
(Continued from page 17)
In addition to Jus banking duties
EBRASKA’S 282 state banks com Mr. Clarke is a director and officer of
pleted their best year on record many corporations, among them the
Pure Oil Co., U. S. Steel Corpora
in 1945, with deposits increasing $89,tion, M ontgom ery Ward & Co., and
832,971 during the year, J. F. Peters,
the Pennsylvania Railroad Co. He
banking director, announced.
never refuses to help make deserving
Total deposits last December 31 projects a success. This is proven by
amounted to $322,144,032, against his record of having served as vice
$232,311,061 at the close of 1944. Dur
chairman in charge of sales for all
ing the last six months of 1945, de five Chicago Liberty Loan campaigns
posits gained $60,183,935, the bank di in World War I, and chairman of the
rector said.
Fifth War Loan drive in Chicago in
The spectacular increases, which far
World War II, the first campaign to
exceeded Mr. Peters’ prediction last exceed all of its quota in the Chicago
fall that the total deposits would be and Cook county area. Many times
slightly above the 1925 record of $272,- he has acted in an advisory capacity
584,233, were attributed chiefly to to the Chicago city councilmen and
higher farm prices and the bumper officials on financial matters.
wheat crop.
Mr. Clarke served as a director of
The rarity of a state bank with de the Association of Reserve City
posits of more than one million dollars Bankers from 1936 to 1938; as a di
virtually has disappeared. Forty-three
rector of the Illinois Chamber of
banks reported deposits of more than Commerce from 1937 to 1940, as presi
two million dollars, and 76 were above dent of the Chicago Clearing House
the one million-dollar mark. Only 12 Association from 1931 to 1933, and
chairman of that group from 1939 to
1943.
His favorite sport and hobby is
golf. He is a member of the Chicago
and Hinsdale golf clubs; Chicago
club; Commercial club; Attic club;
Bankers club; Hinsdale club and the
Recess club of New York. # #

FOR THE BUSINESS
Y O U SEND TO US
N&noHâx B a h k o f Co m m erce
LINCOLN, NEBRASKA
O F F IC E R S
A L B E R T A. H ELD
E x e c u tiv e V ic e P re sid e n t
E R N E S T C. FO LSO M
V ice P re sid e n t
J U L IU S W E IL
V ice Pre sid e n t
CARL D GANZ
V ice P re sid e n t
G LEN N YA U S SI
A s s t. V ice Pres, and T r u s t Officer

A sst.

M AR S H A LL H E W IT T
A s s t. V ice P re sid e n t
PAUL B O G O TT
C as hie r
W IL L IA M S T R A T E M A N
A s s t. V ice P re s id e n t
R. E M I L L E R
C a s h ie r and A s s t. T r u s t Officer
T E D TH O M PSO N
A s s t. C a s h ie r

Member of Federal Deposit Insurance Corporation

North western Banker, March,

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

1946

Wrong One
The Little Moron has grown up and
is now in business. He doesn’t trust
banks, thinks they have too many riv
ers flowing through them, watering the
stock. So he began depositing his prof
its behind a loose brick in the wall of
his house. Not feeling too secure about
this, he wrote across the wall: “ No
money in this wall.”
His pal, Joe Snerd, the big Moron
who lives across the way, saw this
writing, and one day rifled the cache,
and swiped the dough. Fearing detec
tion, he, too, wrote on the replaced
brick: “ The money was not stolen by
Joe Snerd.”

W a y s la

Increase

Ita sia ess for Your litui li
By MERRILL ANDERSON, President
The Merrill Anderson Co., New York
l Before New York Financial Advertisers1
IDEAS for improvement of your
I' bank’s public relations leading to
more business:
1. THE MARKET FOR THE LIV
ING TRUST as a retirement fund is

much greater than ever capitalized.
Retirement funds are very much in
the minds of business men. What
more natural program than a Living
Trust to which one can add as his
accumulated surplus permits? Banks
with common trust funds should be
able to do especially well with this.

demand for it in their particular area.
If you mention that they have to work
up the demand, they explain that the
commodities or inventory don’t exist
in sufficient volume in their commu
nity. Yet in each case that I’ve heard
of where a bank made a systematic
survey, and persistent sales effort, it
got profitable results.
7. A WEEKLY NEWS BETTER re

Ji_________________
[PEtRIFQJtMES

2. SELL THE MEN COMING BACK
from overseas, for whom you were ap
pointed substitute fiduciary.
3. INVITE L I F E INSURANCE
MEN to come to you for help in estate
planning, even where there is no rea
son for an insurance trust. Some
times they hesitate to do so because
they wonder if you will “cross them
up” and manipulate the interview to
the trust company’s advantage. Good
faith pays out liberally.
4. FIND
WORTHWHILE
JOBS
FOR WORTHWHILE VETERANS

and you will build more good will for
your bank (and for you personally)
than almost any other plan. It takes
just what you haven’t got: time. But
there are jobs that need these able
men just as the men need work; some
times all it takes to bring them to
gether is a pointer from you.

recommend this one before and this
one after marriage.

porting the proceedings of the Iowa
General Assembly during the entire
time it is in session is published by the
Central National Bank and Trust Com
pany of Des Moines. They get a good
deal of appreciative comment on this
coverage. Of course, it’s in the state
capital, but the idea may suggest other
applications to you.
8. NEW SERVICES TO INSTALL

are being sought from all sources by
many bankers who have been readying
up for the period ahead when money
may be harder to make. They are
seeking new and better ways of pro
moting the old; and young, able per
sonnel who can build the bank. When
and if we enter a period of lower earn
ings, they are set to make a real fight
of it, and their stockholders will bene
fit accordingly. This is the time of all
times to be studying all avenues of
new business—scratching off those
that are unsound or impractical, and
concentrating on a few good ones that
seem right for your bank.
9. DON’T BE SATISFIED with
merely “bringing the bank’s name to
the attention of the public.” That’s
essential, but not enough. Find some
characteristic, advantage or service
of the bank that you believe can be im
portant to people whose business is
important to you. Then perfect it,
feature it in your advertising, and
keep on featuring it till people think
of your bank whenever they hear or
think of that service. Don’t let up
just because you and the other people
in the bank get bored and want to talk
of something else. The chances are
that you are just getting well into the
scoring zone. # #

5. ENCOURAGE SAFE DEPOSIT
HOLDERS to put into their boxes all
the things that should be there so
they won’t surrender them as they did
after World AVar I. This is the time
to do it—with coupon booth placards,
bill enclosures, posters, even personal
conversations, all aimed at educating
customers to the point where they’d be
alarmed at closing their safe deposit
box.
6. FIELD WAREHOUSING is one
of the most perverse situations in all
of bank public relations. Most bankers
the country over will tell you, even
now, that they’d love to build up that
business, but unfortunately there’s no

The complete facilities of this
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We

invite

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Lincoln.

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B ank
f

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
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F. E. DAVENPORT & CO.

LINCOLN
Member Federal Deposit Insurance Corporation

OM AHA

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Northwestern Banker, March,

1946

(BECAUSE

THEY

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NI GHT S

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OUR

CORRESPONDENTS

BANKS

WITH)

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W hen most folks are going to bed, our night transit staff is just
rolling up its sleeves, going to work. But that's what it takes to keep
collection items moving 24 hours a day.
W e don't mind . . .

in fact, we like it.

Service is our yardstick of progress and providing 24-hour transit
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LIVE STOCK N A T I O N A L B A N K
OMAHA, NEBRASKA
Member F.D.I.C.

T H E

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Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

O F

F R I E N D L Y i

S E R V I C E

Iowa News

J. L. Glenny, E. E. Everett, R. Leytze,
Sr., and C. V. Rosenberger.
Officers and employes of the bank
are: E. F. Sorg, president: E. E. Ever
ett, vice president; C. L. Fiester, cash
ier; P. E. Sorg, assistant cashier; Jean
Hohl, assistant cashier.

IOWA NEWS

Navy Man Returns

L. SAW YE R S
President
Centerville

Over Billion Deposits

FRANK W AR N ER
Secretary
Des Moines

Runs for Senator

Earl C. Fishbaugh, Jr., a director of
Deposits in Iowa’s 549 chartered
banks reached a record high of $1,364,- the Security Trust and Savings Bank
367,569 during 1945, Melvin W. Ellis, of Shenandoah, Iowa, has obtained
superintendent of the Iowa depart nomination papers for the office of
ment of banking, reported last month. state senator from the seventh district.
This is an increase of $225,720,210 over Mr. Fishbaugh, a Republican, will seek
1944 deposits. Total assets jumped the seat of Carl Sjulin of Hamburg,
from $1,203,486,161 as of December 31, Iowa, who has announced he will not
1944, to $1,436,766,844 at the close of run for re-election. Mr. Fishbaugh is
business December 31, 1945. Of this the son of Earl C. Fishbaugh, Sr., pres
total, $1,153,125,300 is held in cash and ident of the Security Trust and Sav
ings Bank.
U. S. securities.
Since 1939 the total resources of
Iowa banks have gained almost one bil Reorganize Bank
lion dollars, mainly through the war
A reorganization of the Farmers
years with the purchase of so many Savings Bank has resulted in the elec
U. S. securities. During the past six tion of five directors, including A. J.
years 11 new banks have been char Cruise, H. C. Faulkner, Fred J. Groves,
tered. All interest income in 1945 was H. C. McGregor and J. W. Rogers. At
up 17 per cent over 1944, and despite their first directors’ meeting they
an increase in all expense items of 17 elected as officers of the bank Mr.
per cent, net operating profit was in Cruise, president, and Wray Wilson,
vice president. Burton Hood, a Pacific
creased 9 per cent.
Theater navy veteran, and Aldon Jen
sen, European Theater Air Force pi
All Deposits Now Demand
The stockholders’ report issued by lot, were both elected bookkeepers.
the Breda Savings Bank of Breda,
Iowa, shows deposits have grown from
$469,396 in 1940 to $1,063,100 at the
start of 1946. In 1930 there was slight
ly over one million dollars on deposit,
of which 24 per cent were demand and
76 per cent time deposits. At present
all deposits are demand. F. Van Erdewyk, president, also informed stock
holders the bank has a total of $672,745 in bonds.

J. Lyman Edwards
Funeral services were held last
month in Burlington, Iowa, for J. Ly
man Edwards, 81, president of the old
Merchants National Bank. Mr. Ed
wards was prominent in Iowa banking
for many years. He began his banking
career with the National Bank of Red
Oak. Iowa, then returned to Burlington
in 1885 as bookkeeper. In 1897 he be
came cashier and in 1904 was elected
president, one of the youngest bank
executives in the state. Mr. Edwards
served as president of the Iowa Bank
ers Association in 1914-1915.

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Federal Reserve Bank of St. Louis

Attorney Made Cashier
Attorney A. W. Vogl of Dyersville,
Iowa, was promoted to cashier of the
American Trust and Savings Bank in
Dubuque, Iowa, last month. Mr. Vogl
was assistant cashier in the Dubuque
bank for the past several years.

25th Anniversary
The Farmers State Savings Bank of
Independence, Iowa, marked the twen
ty-fifth anniversary of its founding last
month.
Incorporated at its beginning for
$50,000, all of the stock was sold locally.
Today the bank boasts capital stock of
$100,000, with a surplus of an addition
al $100,000 and undivided profits at
more than $58,000. Deposits have in
creased to nearly six million dollars as
shown by their last statement as of
January 1st.
Today, four of the original directors
are still serving, Dr. B. B. Sells, W.
E. Glenny, E. F. Sorg and Frank
Kirsch. Other present directors are:

Ernest Madill has returned as assist
ant cashier of the Farmers State Bank
of Jesup, Iowa. He has been in the
navy for two and a half years.

Army Officer Joins Bank
Major George O. Sokol of Collins,
who was discharged on February 9th
after five years in the U. S. Army, dur
ing which time he was finance officer
and personnel director, was elected to
the position of assistant cashier of the
State Bank and Trust Company of
Nevada, Iowa, at a meeting of the
board of directors last month.
Major Sokol graduated from Grinnell
College where he received a degree in
Commerce. Entering the service as a
private he rose to the rank of major.

Story County Election
The Story County Bankers Associa
tion held its annual meeting recently
in Nevada, Iowa, with Harold T. Faw
cett of the Nevada State Bank & Trust
presiding as 1945 president. The meet
ing, with 60 member bankers present,
was the largest in attendance in the
history of the association.
New officers for the year 1946 were
elected as follows:
President, H. R. Martin, cashier of
the Union Story Bank, Ames, Iowa;
vice president, Dan Peters, cashier of
the State Bank at Maxwell, Iowa; sec
retary-treasurer, Edwin Hauge, teller
at the Story County State Bank, Story
City, Iowa.

Name Two New Officers
A. E. Peters, assistant cashier of the
Jasper County Savings Bank of New
ton, Iowa, for the past several years,
was promoted to a vice presidency at
the annual meeting of stockholders
and directors of the bank. At the same
time George Hill was named an assist
ant cashier.
All directors and other officers were
re-elected. Officers are: Fred Maytag,
II, chairman; Ray O. Bailey, president;
L. B. Maytag, W. E. Dennison, D.
Wormhoudt, E. M. Cary, W. N. Enyart,
Robert E. Vance and Peters, vice presi
dents; A. E. Hindorff, cashier, and G.
M. Kruse, H. H. Morrison, Marie Van
Gilst and George Hill, assistant cash
iers.
Northwestern Banker, March,

1946

Iowa News

Butler County Election
The Butler County Bankers Associa
tion met in Allison, Iowa, at the State
Bank of Allison, where election of offi
cers was held.
Officers for the year are: Lloycl Gib
son of Shell Rock, president; Wilford
Nelson of Allison, vice president; John
McWhirter of Allison, re-elected secre

tary; George DeBuhr of Kesley, re
elected treasurer. All the towns of
the county having banks were repre
sented, with one exception.

Heads Red Cross Drive
Reginald B. Figge, vice president
and cashier of the Guaranty Bank and
Trust Company of Cedar Rapids, Iowa,
will serve as chairman of the 1946 Red
Cross fund-raising campaign in Linn
county.
Goal this year is $86,500 as compared
to $135,000 a year ago.
“The Red Cross is staying with our
men overseas until the last man re
turns,” Mr. Figge stated, “but the num
ber of servicemen needing aid is nat
urally far less than in wartime. How
ever, the Red Cross has a big peace
time program to carry on.”

Returns From Army
Sgt. Lloyd E. Knoll has returned to
his job at the First National Bank of
Mason City, Iowa, which he left in
April, 1944, to enter service in the
army. Mr. Knoll, who was given his
discharge at Patterson Field, Dayton,
Ohio, had been serving as senior in
structor with the cryptographic school
at Scott Field, Illinois. He had been

employed at the First National for 16
years prior to entering the service.

Elected Assistant Cashier
Miss Florence Berdin was elected
to the position of assistant cashier of
the Palo Alto County State Bank of
Emmetsburg, Iowa, at the institution’s
annual meeting recently.
All other officers of the bank were
re-elected to their current positions.

Iowa's Top Banks
A list of the 300 banks in the United
States with the largest deposits in
cludes four from Iowa, according to a
survey by The American Banker.
They are, with their rank in the
nation and deposits as of December
31st, the Iowa-Des Moines National
Bank & Trust Company, Des Moines,
$114,368,404 in 167th place; the Mer
chants National Bank, Cedar Rapids,
$90,452,067, as 210th; the Central Na
tional Bank & Trust Company, Des
Moines, $83,170,780, as 224th, and the
Davenport Bank & Trust Company,
Davenport. $73,918,077, as 248th.
Largest is the Chase National Bank,
New York, New York, with deposits of
$5,742,179,806.

Two Buy Dows Bank

Henry Janssen and Attorney James
E. Coonley, both of Hampton, Iowa,
have purchased the controlling inter
est in the Farmers State Bank at Dows,
Iowa, from Will E. and James I. Deam.
Mr. Janssen is in active charge of the
bank. He was assistant cashier of the
First National Bank of Hampton, Iowa.

THE
0

ÍVTIAEATAL

Lee County Meeting

BANK & TRUST COMPANY
OF N E W YO R K
M EM BER O F TH E

FEDERAL

D E P O S IT

IN S U R A N C E

D id you

C O R P O R A T IO N

The annual meeting of the Lee Coun
ty Bankers Asosciation was held in the
Tiffany room of the Hotel Iowa in
Keokuk, Iowa, last month.
The following officers were elected
for the ensuing year:
President, A. J. Vonderhaar, assist
ant cashier, Iowa State Bank, Ft. Madi
son, Iowa; vice president, Loren J.
Peel, cashier, Farmers Savings Bank,
Wever, Iowa; and secretary-treasurer,
F. J. Breitenstein, State Central Sav
ings Bank, Keokuk, Iowa.

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without costing you a cent.

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In su ra n ce C ounselors
Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

FIR ST N A T IO N A L BANK B LD G . • C H ICA G O 3 , IL L. • ST A T E 4 3 2 5

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Federal Reserve Bank of St. Louis

. .

Your Des Moines
Business Receives
the Whole-Hearted
Personal Attention of
an Entire Banking Staff

V alley Bank and Trust Company
AT FOURTH AND WALNUT

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Northwestern

Banker, March,

1946

Iowa News

l«/r« Groti/fs 00110» 41110! Eli»v 0»n
H 1th! An mi í§I 3f4»4»tinfßs
Combined Attendance at Sioux City and
Burlington Meetings Is Nearly 900
ITH all the pre-war pep and
vigor usually displayed at such
gatherings, Iowa Group Meet
ings opened with a bang last month
when Groups One and Eleven held
their annual meetings in Sioux City
and Burlington, respectively. Group
One in Sioux City chalked up a regis
tration of more than 600 for an all-time
high, with bankers from South Da
kota and Nebraska, and a few from
Minnesota, helping to swell the at
tendance. Two hundred and sixtyseven persons sat down at the annual
luncheon of Group Eleven at Burling
ton, and this meeting also approached
a record registration. Other Groups of
the Iowa Association will hold their
meetings in May, the 7th to the 17th,
meeting places for which have not as
yet been announced.
Allison R. Miller, cashier of the
Woodbury County Savings Bank,
Sioux City, presided at the Junior
Bankers Group One meeting, which
held a morning session preceding the
full conference sessions. Discharge
buttons appeared on the lapel of many
of those attending this meeting.
F. F. Sawyers, president of the Cen
terville National Bank and president
of the Iowa Bankers Association,
spoke at the meetings of both groups.
Mr. Sawyers warned of the danger of
banks in the United States being taken
over by the Government, saying that

America is now the only country
where banks are not Government
owned and controlled. Our banking
system is one of the main bulwarks
sustaining our free enterprise in this
country, and the speaker said the best
way to keep it that way was to per
form a better job of public relations—
people need to know more about banks
and how they operate.
H. R. Jackson, deputy superintend
ent of banking for Iowa, presented
several of the department examiners
present at both meetings. He said
nine state banks had been chartered
during the past five years, and that
during that time 74 per cent of net
earnings of Iowa banks had been
plowed back into capital funds.
At the Sioux City meeting Frank C.
Rathje, president of the American
Bankers Association, gave his listen
ers some good hard facts in his
straight-from-the-shoulder style. He
urged bankers to keep on a sound
course of action, saying that there
were mixed elements of strength and
weakness in future business opera
tions—don’t carry too many long term
Government bonds, keep the bank as
liquid as possible. To prevent infla
tion, Mr. Rathje said that deficit financ
ing must cease, wages must not get
too high, excessive buying power of
the public must be restrained, and
banks should not extend credit too

freely as such relates to over-expan
sion.
Walter T. Robinson, Iowa loan guar
antee officer of the Veterans Adminis
tration, spoke at Sioux City and Bur
lington. Early last month, he said, his
office had 2,975 applications for G.I.
loans, 140 of which had been rejected.
Of those accepted, 2,054 had been com
pleted, 950 of these had been made by
banks, the average loan being around
$4,000. Recent legislation has simpli
fied the loan forms and broadened the
provisions considerably. Mr. Robin
son threw the meeting open for ques
tions, and many were asked. It is
hoped that in coming issues of the
N o r t h w e st e r n B a n k e r Mr. Robinson
will find time to conduct a question
and answer column on this important
subject of G.I. loans.
Another speaker at the Group meet
ings was Frank Warner, secretary of
the Iowa Bankers Association, who
touched upon a number of Association
activities. Mr. Warner made particu
lar mention of the new public rela
tions project of the Iowa Association
through spot announcements over a
number of Iowa radio stations, in
which practically all Iowa banks are
participating financially, and which
will benefit every bank in the state.
Mr. Warner also mentioned briefly onthe-job training for veterans as apply(Turn to page 66, please)

A l Un* hura Uroap 3Ët»«*tiaijs
The pictures on the opposite page were taken at the two Iowa
Group Meetings held la s t' month— Group One in Sioux City,
and Group Eleven in Burlington. Beading from left to right,
those pictured are:
1— Many old friends greeted each other at the registration
desk in Burlington.
2— F. L. Sawyers, president Centerville National Bank and
president Iowa Bankers Association; Henry Visser, cashier First
National Bank, Hawarden, and chairman o f Group One; and
Frank C. Rathje, Chicago, president of the American Bankers
Association.
3— R. E. Gleason, assistant cashier First National Bank, Sioux
C ity; and Dale C. Smith, Central National Bank, Des Moines.
4— B. A. Gronstal, president Security State Bank, K eokuk;
arid Joe H. Gronstal, the son, vice president of the Security
State Bank.
5— R. R. Schroeder, vice president and cashier Iow a County
Savings Bank, Marengo, shakes hands with Hans Boyson (right),
vice president o f the Merchants National Bank, Cedar Bapids,
Northwestern Banker, March,

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Federal Reserve Bank of St. Louis

1946

with Hugh R. Jackson, deputy superintendent of banking for
Iowa, looking on.
6— Lester L. Siems, assistant manager bond department N or
thern Trust Company, Chicago; Robert E. Hunt, assistant cashier
Northern Trust Company; Charles M. Nelson, vice president and
cashier Northern Trust Company; J. W. McElroy, director Bur
lington Savings Bank; and B. A. Gronstal.
7— Tom Cannon, St. Paul Terminal Warehouse Company, Des
Moines; Verne Bartling, assistant vice president First National
Bank, Chicago; and Erwin Jones, vice president Iowa-Des Moines
National Bank, Des Moines.
8— V. Z. Breneman, cashier Farmers State Bank, New London,
visits with Frank Warner, secretary o f the Iowa Bankers Asso
ciation.
9— Paul Keller, director; C. W. Wagner, vice president; and
Ray W. Mix, director, all of the Danville State Bank.
10— R. J. McCleary, executive vice president Security State
Bank, K eokuk; T. R. Richardson, assistant cashier Mediapolis
Savings Bank; and R. A. Daedlow, vice president and cashier
Mediapolis Savings Bank.

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Federal Reserve Bank of St. Louis

Iowa News

IOW A GROUP MEETINGS
(Continued from page 64)
D r o v e r s N a tio n a l B a n k
47th Street and Ashland Avenue

Stock Y a r d » Sta ti on

CHICAGO, ILLINOIS

ing to banks, and spoke of the manner
in which bank directors were included
or excluded from the provisions of the
wages and hours law.
In Group One, Henry Visser, cash
ier of the First National Bank, Hawarden, continues as president of the
Group, and A. E. Muir, president of the
Onawa State Bank, who has been act
ing secretary, was officially elected
secretary. These officers will hold
their terms for one year, since the odd
numbered Groups elect in the odd
years, with officers holding for a twoyear term.
Leonard N. Frescoln, executive vice
president and cashier of the First Na
tion Bank in Fairfield, was named
chairman of Group Eleven, and Dale
Kelly, cashier of the Henry County
Savings Bank, Mt. Pleasant, becomes
secretary. These officers also were
elected for a one-year term.

^ »

cA/ame

Resolutions at Sioux City com
mended banks in the sale of War
Bonds; opposed the competition of Pro
duction Credit Associations; voiced
approval of the Iowa Association
radio project; urged banks to give seri
ous thought to their bond accounts;
recommended that banks avail them
selves of the group insurance plan;
study carefully the G.I. Bill of Rights;
and recommended that future meet
ings be held in Sioux City.

They'll Be In
CHICAGO
By Daylight
Tomorrow

Within a Few Hours After They Are Sold
A Drovers ''Yellow Boy" Will Be Speeding on Its Way
The “ Yellow Boy” advice is distinctive with the Drovers National Bank. It is
widely recognized as a symbol of fast, efficient service to bankers whose customers
ship livestock to the Chicago market. Y ou r C hicago accou nt is invited.
Members, Federal Deposit Insurance Corporation

BRGYERS NATIONAL BANN
DROVERS TRUST 0 SAVINGS BANN
U N I O N

S T O C K

Mr. Banker:

Y A R D S ,

C H I C A G O

At Burlington the resolutions com
mittee presented the following: praised
bankers who had helped promote the
sale of War Bonds and Stamps; co
operate to fullest extent on G.I. Loans;
urged better public relations, includ
ing the radio spot announcements;
asked for consideration in reduction of
FDIC assessment rates; suggested co
operation in the Banker-Agent Auto
Plan; recommended installment loans
for banks; and praised the work of the
Iowa banking department. # #

ili
D.A.S. AGRICULTURAL DIGEST

Do you know that EVERY MONTH ÇJU MORE BANKS become subscribers to

There is no other agricultural information service just like it.
For sample releases and further information write to

Doane Agricultural Service, Inc.
Box 603, 206 Plymouth Bldg.

Y o u S h o u ld H a v e It!
Northwestern

Banker,

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Federal Reserve Bank of St. Louis

March,

1946

Des Moines 9, Iowa
H o m e Office— St. L ou is

Iowa News

Davenport Promotions
Five men were promoted to assist
ant vice presidents and seven to as
sistant cashiers of the Davenport Bank
& Trust Company of Davenport, Iowa,
at the annual meeting, at which all
present officers and directors were re
elected.
Four assistant trust officers elected
to the position of assistant vice presi
dent and trust officers are Herbert W.
Braack, Edward L. Carmody, Kenneth
C. Hartman and Alfred P. Sindt.
Ernest H. Ketelsen, auditor of the
bank, was elected assistant vice presi
dent and comptroller.
The newly elected assistant cashiers
are Edmund W. Braack, Carl M. Fied
ler, Cornelius Hansen, Harry B. Moel
ler, Leroy Schaefer, Charles Schlapp
and William F. Siegle.
Officers re-elected were: V. O. Figge,
president: Fred Gruenwald, Anthony
M. Hiegel, J. M. Hutchinson, Herman
Staak and Dr. Kuno H. Struck, vice
presidents; Edgar L. Runberg and Al
bert P. Wolters, assistant cashiers. In
addition to being vice presidents, Mr.
Hutchinson is trust officer and Mr.
Staak is cashier.
Members of the board re-elected
were: Mr. Figge, Joseph L. Hecht,
Mr. Hutchinson, Charles J. Johnson,
Joseph S. Kimmel, Dr. Frederick H.
Lamb. H. E. Littig, Mr. Staak, Dr.
Struck, Cable G. Von Maur, Thomas
J. Walsh and C. D. Waterman.

Mr. O’Brien was a member of the
Emmet County State Bank board of
directors for 18 years and for the past
five years has been vice president of
the board. He was treasurer of the
Emmet county consolidated school
from 1918 until 1937 and helped to
organize the Emmet county Farm Bu
reau of which he was a lifelong mem
ber.

recent death of Curtis W. Albertson,
who was president since the bank was
chartered in April, 1945.
Mr. Henrickson has been a director
of the bank since established and will
fill the presidency for the balance of
the year. A new member of the board
will be elected at some later date, Cliff
Pruitt executive vice president, an
nounced.

Director Becomes President

Bankers Hear FBI Man

H. A. Henrickson was elected to the
presidency of Inwood State Bank of
Inwood, Iowa, last month at a direc
tors’ meeting in the bank. His election
was to fill the vacancy caused by the

Members of the Clinton County
Bankers Association were invited to
Chief Long’s police school, February
26th, to hear E. E. Kuhnel, special
FBI agent in charge of the Des Moines

. . . those qualities of seasoned experience,
trained personnel and physical facilities . . .
to render

Goes to Iowa Pails

good,

dependable

correspondent

service.
Let us handle your account in Sioux City.
W e are well equipped to handle collections,
with special attention to Bill of Lading Drafts

J. H. Stewart
J. H. Stewart, 53, cashier of the
Citizens National Bank at Webb, Iowa,
died last month. His wife, two sons
and a daughter survive. Both sons
returned on leaves from service to be
at his bedside.

and other items.

J. P.
Fritz
J. T.
J. R.

A. G. Sam,
Hainer, Vice President
Fritzson, Vice Pres, and Cashier
Grant, Assistant Cashier
Graning, Assistant Cashier

President
E. A. Johnson, Assistant Cashier
R. E. Gleeson, Assistant Cashier
Harold H. Strifert, Assistant Cashier
W. F. Cook, Auditor

Thomas J. Neessen, who has been
cashier of the Farmers Savings Bank
at Beaman, Iowa, the past three years,
has accepted a position as cashier of
the Iowa Falls State Bank at Iowa
Falls. Iowa. He submitted his resig
nation a short time ago to the direc
tors of the Beaman bank and it was
accepted, effective March 1st. He suc
ceeds W. A. Roberts.

William D. O'Brien
William D. O’Brien, 73, died suddenly
in Estherville, Iowa, last month as the
result of a stroke.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

/f t

/O U Y

C f /i f

F. E. DAVENPORT & CO.
OM AHA

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Federal Reserve Bank of St. Louis

Northwestern

B anke r,

March,

1946

Iowa News

office, discuss “ Bank Robberies and
Kidnaping.” The class meets at 2:00
p. m. each Tuesday in the city hall.
Kuhnel met with the bankers to
review preliminary plans for reorgani
zation of the county vigilantes.

Prior to his army service the young
er Agena was with the Bank of Amer
ica for three years. Other officers of
the State Savings Bank are: M. J.
Kettenhofen, president; Calvin Noah,
vice president, and Miss Kimberley,
assistant cashier.

Cashier at Baxter
A. F. Agena has purchased the in
terests of W. L. Phillips, cashier, in
the State Savings Bank of Baxter,
Iowa, and has been elected cashier to
take Mr. Phillips’ place. Andy H.
Agena, a younger brother of the new
cashier, has also joined the bank staff
and has been appointed assistant cash
ier. Both brothers served three years
in the army and have been discharged
recently.

Farmers Should Hold Land
Farmers who own their land should
not let a rise in prices induce them to
sell their property, E. N. Van Horne,
president of the Federal Land Bank
of Omaha, advised recently at the an
nual stockholders’ meeting of the
Woodbury County National F a r m
Loan Association at the Marion Hotel
in Sioux City, Iowa.
The worth of a farm as a home and

a source of livelihood offsets the
amount of money above normal it
would bring, Mr. Van Horne declared.
Stockholders re-elected Alfred Molstad, Moville; Randall B. Van Houten,
Correctionville, and Lloyd N. Sawin,
Anthon, and elected Paul G. Hummel,
Oto, and H. G. Corrie, Sioux City, as
directors. Mr. Molstad and Mr. Van
Houten will serve for three years, Mr.
Corrie for two years and Mr. Hummel
and Mr. Sawin for one year.
The directors then re-elected Mr.
Molstad pfesident; E. W. Wichhart,
Sioux City, secretary-treasurer, and
Virgil Mosier, Sioux City, assistant sec
retary-treasurer. Mr. Corrie w a s
elected vice president.

President Retiring

C O O P E RATI O N —K E Y N O T E O F O U R

Stockholders of The State Bank of
Prairie City, Iowa, held their annual
meeting at the office of the bank last
month.
Harold F. Stoner was elected as pres
ident to succeed Wm. Vander Kraan,
who is retiring after 16 years of serv
ice. Wiley A. Roberts was elected a
new director.
All other officers and directors were
re-elected. The usual annual dividend
was paid to the stockholders for the
year 1945.

Heads Clermont Bank

C O R R E S P O N D E N T RELA TIO N SH IPS

A willing, friendly spirit of cooperation char
acterizes relationships between The Northern
Trust Company and its correspondent banks.
All the experience and broad facilities of this
long-established Chicago hank are constantly at
your disposal. It is our objective to assist you in
broadening the scope of your own customer
service. Your inquiries are cordially invited.

THE N O R T H E R N
TRUST COMPANY
50 S O U T H

LA S A L L E S T R E E T , C H I C A G O 9 0 , I L L I N O I S
Member Federal Deposit Insurance Corporation

Northwestern

B anke r,

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Federal Reserve Bank of St. Louis

March,

1946

At the annual meeting of the stock
holders of the Farmers Savings Bank
of Clermont, Iowa, the following were
elected directors for the ensuing year:
Louise Miller, E. P. Quinn, J. A. Erick
son, E. Lyngaas, J. M. B'rorby, Ole C.
Peterson and H. A. Lubke.
At the directors’ meeting Mrs.
Louise Miller was elected president of
the bank; E. Lyngaas, vice president;
and J. A. Erickson, cashier; Miss Verla
Gunderson, teller; and C. Clifford Kittelson, bookkeeper.
The bank paid its stockholders 5 per
cent dividend from the 1945 earnings.

Cashier Resigns
E. J. Johnson has resigned his posi
tion as cashier of the Farmers Savings
Bank of Stratford, Iowa, effective
March 1, 1946.
Mr. Johnson accepted the position as
cashier of the bank in September, 1934,
at which time the bank had a total
capital structure of $25,000 and in the
last published bank statements as of
December 31, 1945, a capital structure
of $56,000 was shown.
Robert Dixon of Clarion has been
elected to succeed Mr. Johnson as
cashier. J. A. Rierson and Miss Nettie
Freie have also been reelected as
assistant cashiers.
The following are the present offi-

Iowa News
cers and directors of the bank: Chas.
0. Erickson, president; Reuben Erick
son, vice president; E. G. Erickson,
Andie Holt, and H. F. Gustafson, di
rectors.

Testimonial Dinner
One hundred fifty townspeople of
Waverly, Iowa, gathered in Legion
hall last month at a “testimonial din
ner” to honor the community’s “most
eminent public figure,” Guy O. Van
Derveer, 75, president of the State
Bank of Waverly.
Highlight in the series of speeches
made was that by a nearly cured in
fantile paralysis victim, Miss Leona
Hinrichs, Readlyn, Iowa, for whom
Mr. A^an Derveer obtained aid for
treatment during his chairmanship
with Red Cross. Miss Hinrichs is now
a premedical student at Coe college,
Cedar Rapids, Iowa, and presented the
honoree with a wrist watch from the
assembly.
The dinner, a surprise to Mr. Van
Derveer and his wife, was attended by
several out-of-town guests including
Representative Arch McFarlane, Les
ter Roeder, and Ray S. Eggert, Water
loo.

of Ogden, Iowa, has been elected as
sistant cashier of the First State Bank
of Chariton, Iowa.

Back to Belle Plaine
Leland G. Hix has returned as cash
ier of the Citizens State Bank of Belle

Plaine, Iowa, after serving five years
with the armed forces. He entered the
army as a volunteer in November, 1940
and was discharged a year later only
to be recalled following the Pearl Har
bor attack. He attained the rank of
Captain in the finance department,

Experienced Foreign Banking Service in

CUBA
a?id throughout the

WEST INDIES
We offer banks and business firms interested in foreign trade, an experi
enced “ on the spot” banking service in Cuba, and throughout the West
Indies. Long established branch offices assure you of valuable assistance.
Branches in Cuba, H aiti, Puerto R ico, Dom inican Republic, b
British AVest Indies, Central and South A m erica.
T w o branches in L ondon, England

Complete foreign banking service in all parts o f the zvo/ ■
N ew Y o r k A gen cy— 68 W illiam Street

President's Daughter Weds
Ruth Jean Olson, bookkeeper in the
Northwood State Bank of Northwood,
Iowa, became the bride of David Wal
ter Backstrom of Harwood, North
Dakota, last month. Mrs. Backstrom
was given in marriage by her father,
Oscar A. Olson, president of the Northwood State Bank. After a trip to the
Twin Cities the couple left for Fargo,
North Dakota, where they will make
their home.

THE ROYAL BANK OF CANADA
Incorporated I SÒQ

HEAD OFFICE—M O NTREAL

R e so u rce s e x c e e d

B ra n ch e s in C a n a d a
from C o a st to C oast

$ 2 , 000 , 000,000

Elect Navy Veteran
R. J. Nachazel, recently returned
from three years’ service in the Navy
and formerly with the City State Bank

H a n k s a n d H a n k e r s will find this
institution especially well equipped to handle
their Chicago accounts. Our complete facilities
are at the disposal of all in need of this service.

C ity

N atio n al

B a n k

A N I» T R U S T C O M P A N Y o f C h ic a g o

2 08

S OU T H

( M EM B ER FEDERAL

LASALLE
DEPOSIT

STREET

IN SU RAN C E

jPw’f
^

COUP.

“ But, Daddy, how do you know it’ s wrong?
You haven’t been to school in a long time.”

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Federal Reserve Bank of St. Louis

Northwestern

B anke r,

March,

1946

Iowa News

serving in the Pacific and European
theatres.

Made Cashier
Francis Baschnagel was elected
cashier of the Peoples Trust and Sav
ings Bank of Riverside, Iowa, at the
annual meeting of stockholders and di
rectors recently. Other officers all re
elected were Ivan H. Cummings, presi
dent, and George A. Eglin, vice presi
dent.

Teller Returns
Arthur W. Boyken, teller at the
Titonka Savings Bank of Titonka,

Iowa, has returned to his former posi
tion after three years and nine months
in the army. He had the rank of staff
sergeant and was connected with the
finance department in the army air
forces.

Radio Advertising
A total of 633 Iowa banks have
given their approval and contribution
to the Iowa Bankers Association pros^
pective “spot” radio advertising pro
grams which will be broadcast state
wide over a chain of Iowa radio net
works. This program, supplemented by
individual advertising through regu

lar newspaper ads, direct mail and
personal contacts, is intended to show
people that their local bank is a service
agency for all of the people in the com
munity, and that banks want all the
people in every way to use the finan
cial services of their local banks.

Re-elect Officers
All officers of the Northwest Bank
& Trust Company of Davenport, Iowa,
were re-elected at the anual meeting.
Henry H. Jebens was re-elected
president. Other officers are W. F. Meiburg, vice president; L. W. Fromme,
cashier and trust officer; B. F. McGee,
assistant cashier. The directors are
President Jebens, Mr. Meiburg, Martin
Thomsen, Dr. A. B. Kuhl, Sr., Ben
Kelling, Martin L. Runge, Fritz
Keppy, G. H. Ruehmann and Clarence
Heeter.
Reports showed the deposits as of
December 31, 1945 totaled $3,404,688.20.

Bancorporation Meets

COMPLETE financial service for
correspondent banks, developed
through more than eighty years of
conservative banking is offered by
The First National Bank of Chicago.
Inquiries relative to any phase of
this service are invited and will
receive prompt attention.

The First N ational Bank
of Chicago
MEMBER FED ER A L D EPO SIT IN S U R A N C E CO R PO R ATIO N

Northwestern

Banker,

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

March,

1946

Executive officers of Iowa and Ne
braska banks affiliated with Northwest
Bancorporation attended a meeting in
Sioux City, Iowa, last month. Present
were: F. C. Heneman, president, Doug
Swale and F. Farland of the First Na
tional Bank of Mason City, Iowa; A.
J. Robertson, vice president, A. H.
Keyes and G. O. Nelson, assistant vice
presidents of the Iowa-Des Moines
National Bank and Trust Company of
Des Moines; Wm. Adams, president
and T. C. Aarestad, cashier of the First
National Bank of Denison, Iowa; Carl
L. Fredricksen, president; M. A. Wil
son, vice president; W. G. Nelson, as
sistant vice president; W. C. Schenk,
cashier; H. C. Linduski, C. L. Adams,
J. S. Haver, assistant cashiers, and H.
C. Boswell, G. F. Silknitter, B. L. Sifford and C. R. McKenna, directors of
the Live Stock National Bank of Sioux
City, Iowa.
Those attending from Nebraska
were: Ellsworth Moser, executive vice
president, Harry E. Rogers, assistant
vice president, and A. D. Anderson,
assistant cashier of the United States
National Bank of Omaha; C. F. Witt,
president of the South Omaha Savings
Bank of Omaha; H. G. Pratt, president
of the Hastings National Bank; L. R.
Gillett, president, L. W. Ross, vice
president and cashier, and J. Ballantyne and D. Mayes of the National
Bank of Norfolk.
Several South Dakota bankers also
attended the meeting including: F. B.
Stiles, president, and J. Warkentin, vice
president of the First National Bank
of Aberdeen; W. D. Heupel, vice presi
dent and manager of the Mobridge
branch of the First National of Aber
deen; Arlo R. Allen, vice president and

Iowa News
manager of the Milbank branch of the
First National of Aberdeen, and Carroll H. Lockhart, vice president and
trust officer of the First Citizens Na
tional Bank of Watertown.

Rejoins Investors Syndicate
After serving two and a half years
in the U. S. Marines, James R. Ridgway, Jr., has rejoined Investors Syndi
cate in Minneapolis as assistant to
D. E. Ryan, vice president in charge
of the mortgage department. Mr. Ridg-

Other officers re-elected were Charles
S. Vance of Des Moines, secretary;
Floyd E. Mueller of Calamus, Iowa,
treasurer; Glenn S. Blount of Des
Moines, secretary; Floyd E. Yoast of
Des Moines, assistant to the president,
and R. J. Kent, Des Moines, assistant
secretary.

Cedar Rapids, Iowa, were elected to
three-year terms as directors.
Visitor: “ Don’t you cut yourself
pretty often with this straight-edged
razor?”
Mountaineer: “Naw, I been shaving
nigh on to five years now and I ain’t
cut myself either time.”

Blount, Vance and R. C. Booth of

H e l p f u l n e s s . . . Plus

To give more service than may
be expected— that, in short, is the
basis on which we conduct our
b u s in e s s
banks.

with

This

correspondent

extra

measure

helpfulness, based on grass-roots
JAM ES R. R ID G W A Y , JR.
In Mortgage Department

way will be associated with all phases
of the Investors Syndicate Mortgage
Department and will contact loan cor
respondents throughout the United
States.
In 1933 he became associated with
the company as an assistant in the
mortgage department of Investors Syn
dicate Title & Guaranty Company in
New York City and was later promoted
to assistant vice president, where he
served in the mortgage department in
the company’s home office in Minneap
olis. At the death of his father, J. R.
Ridgway, Sr., he became president of
Investors Syndicate in June of 1937.
Two years later he returned to the
mortgage department and later joined
the sales department where, as co
agency manager of the Minneapolis
Agency, led all other agencies in the
country during 1940. He was promoted
to eastern sales manager and was vice
president and assistant general sales
manager before entering the service.

Re-elects Kent
J. Dolliver Kent of Des Moines was
re-elected president of the Western
Mutual Fire Insurance Company at
the annual meeting.

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Federal Reserve Bank of St. Louis

experience in the banking field,
is given alike to new and old
customers.
glad

will alw ays

to discuss

possible

corre

spondent relationships.

Security National Bank
Sioux City, Iowa
Member Federal Deposit Insurance

l/ U eóófin cj
C o u n s e l

Plan to use an advertising program of
well worded messages created by
Wessling Services, D es Moines, Iowa

lenyLceó
o n

B a n k

Corporation

b l

l a

i o n s

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

Woinei 9, Jo
Northwestern

B anke r,

March,

1946

Iowa News

TIMELY TIPS ON
FINANCING

Retail Financing

(Continued from page 14)
it is an indication that his capital
structure is weak or he is using poor
sales methods.
8. Obviously, your dealers will be
contacted by other banks and finance
companies, but if you have any indi
cations that representatives of such
companies are inspecting merchandise
in the dealer’s possession, contact the
other lender to determine whether
any duplicate floor plan financing
exists.

Retail transactions offer possibilities
of large losses if the banker does not
learn to recognize questionable fac
tors. Some of these are similar to
troubles found in wholesale financing
and may occur in both direct and in
direct financing operations.
1. The use of another “finance” con
nection, whether a wholesale or re
tail connection or both, is always a
cause for caution and, in some cases,
suspicion. The other connection should
be cultivated and a confidential ex
change of information arranged.
2. If the dealer frequently requests
that you change the serial numbers of

Percentage
The percentage is decidedly in
your favor when you take ad
vantage
transit

Commerce

service.

The

24-hour

difference

between 24-HOUR TRANSIT and
ordinary transit is about 16 hours
a day.

That means a saving of

from one to three days on many
of your transit items.

This fea

ture plus direct sending of items
that is unequaled in the United
States

recommends

merce

you

the

Com

percentagewise.

(o m m e rc e j r u s t ( o m p a n y
Capital fyuncLi £"X*ceecL «20 M illion 1^bollanA.

KANSAS CITY’S LARGEST BANK
Established 1865

Northwestern

Banker,

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

March,

7946

the contracts, it could be an indication
that the dealer is doing some duplicate
financing and that such duplication
has been discovered by the other
lender.
3. Retail commodity checks have
sometimes uncovered duplicate financ
ing where the purchaser is making
payments to one lender and the dealer
making payments to another.
4. Payments from the dealer on re
tail accounts are always open to ques
tion. It should not be permitted as a
general practice.
5. Employe and relative contracts
are most often subject to question be
cause of the possibility that the dealer
has prevailed on such employe or
relative to enable him to raise money
for a short period of time, with the
expectation that the contract will be
paid off before the bank is aware that
an actual sale was not made.
6. Frequent prepayments of con
tracts by the dealer also may indicate
a circumstance where the dealer has
submitted a contract which does not
cover an actual sale, in order to obtain
the use of additional funds for a short
period of time.
7. The financial structure and size
of the dealer’s sales organization will
give some indication as to the volume
of business the dealer may be expected
to create. A sudden increase in the
number of retail contracts submitted
might indicate questionable transac
tions, or a sudden falling off in the dis
counting of retail contracts might in
dicate that the dealer is using a “float”
by giving contracts to another landing
institution.
8. A repetition of sales to the same
purchaser, or purchasers with the
same surname, may also indicate that
the dealer has prevailed upon that
purchaser in the creation of an accom
modation deal, on the present pretext
that he needs money for only a short
period of time.
9. Too many repossessions may in
dicate that the dealer does not prop
erly recondition his used cars or is
using high pressure sales methods.
Too many deals on very old used cars
will certainly cause excessive reposses
sions and losses.
10. Short down payments and long
term contracts have a direct influence
on losses, especially when granted on
used car transactions. Excessively high
used car prices—in normal times—
might indicate that the dealer is in
flating the sales prices to build up the
down payment shown.
11. Too many insurance losses by
the same purchaser may indicate collu
sion with the dealer in disposing of
unsalable cars.
It is claimed that there are no new

Iowa News

methods of defrauding the lender, but observer. It should be fully familiar position to judge the amount of capital
there will undoubtedly be many new with its needs for a requisite capital that will best serve the unit in its local
variations of the old methods. Some and, in most instances, is in far better communities.
fraudulent acts may continue over a
long period of time—others will hap
pen overnight without previous warn
ing, just as do embezzlements or other
losses within the bank itself. How
ever, the banker cannot afford to
create a sense of suspicion in his
contacts with the dealer, agent, or
customer, if he is to retain their good
will. Protection against this fear is
available to the banker, just as it is
against embezzlement losses, by in
surance now available covering dealer
conversion, fictitious collateral, dupli
cate financing and misappropriation.
The banker who works aggressively
through the dealer, with frequent con
tacts at the dealer’s place of business,
will soon develop a knowledge of the
" I ’m glad that teller told
"M y handbag’s gone! Stolen!
dealer’s business and financing prob
t me to report to an Am eri
0 W ith my American Express
lems and get to know his dealer as an
can Express office if any o f my
Travelers Cheques! And I don’t
individual. He will learn what his
know anyone in this town. But— cheques were stolen. There’s no
competitors are offering the dealer,
body else in this town I could go
wait—what was it that bank teller
he will be able to convince the dealer
to. And something else he said..
said? 'In case o f loss . . . ’
that he is interested in the dealer’s
welfare, and he will know what finan
cial help and advice he can extend that
will be of mutual benefit to the busi
ness of both dealer and banker. He
will find that the agent, dealer and
customer will each add to the bank’s
opportunities to build up savings and
commercial accounts and other bank
services, with resulting profits not
definitely credited to the installment
"W ith this record, you ’ll
2 " W h e n I b o u g h t th e
contract department. Take full ad
t get a refund more quickly.
t cheques, the teller said to
vantage of each source of business—
I know you ’re glad you carried
write the serial numbers on this
your bank is obligated to serve all
your travel funds in American
record form and carry it separate.
impartially. # #
Express Travelers Cheques in
I also noted the date whenever I

T ip

Trave...

spent a cheque. Here’s the list.’’

stead o f in cash!”

HOW MUCH CA PITAL?
(Continued from page 15)
(the supervisor) had made an error in
judgment?
I believe that history will further
show that the question of whether to
increase or decrease the capital of the
individual unit should rest solely with
the management of the local unit, as
it’s the management, after all, who is
responsible for the success of the unit
it manages. It is, or should be, more
familiar with local conditions in its
respective localities than any outside

THE

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

TOY

Y our bank has a real opportunity to serve business and
pleasure travelers who need protection for their funds.
For further information or advertising material, write
W. H. Stetser, Vice President, American Express Co.,
65 Broadway, New York 6, N. Y.

m e r ic a n

x p r e s s

Travelers Cheques

NATIONAL

BANK

W h e n Visiting in Sioux City ,
Hope You Will Call Upon Us
In

the

heart

o £ down

town

Sioux

City

North western

B anke r,

March,

1946

Iowa News
Mutual Understanding

Your Customer's
INVENTORY
6 - c M t& cC c

B A N KA B LE
t&touuA

out

FIELD W AREHOUSING
SERVICE...
Additional Working Capital Loans
can be made SAFELY when your
customer'sMarketable Inventories
are Collateralized through our
sound and econom ical FIELD
W A R EH O U SIN G SER V IC E, (the
setting up of Legal Warehousing
Operations right on the premises
of the Borrower's Business Estab
lishments).

Frankness of expression between
bankers and supervisory authorities
produces mutual understanding and
confidence, and paves the way for co
operation. Bankers have a personal
financial interest in their banks which
a supervisor cannot have. Also, frank
ness and sincerity should be the key
note of all bank advertising. I recently
suggested the following outline of pol
icies and practice.
“This bank is in business for the
purpose of paying dividends to its
stockholders; to render such service to
the public as is consistent with sound
banking; to encourage the habits of
thrift and economy in its customers
and to assist the citizenship in the
development of the resources of the
community. Its officers have not prof
ited individually by a single loan it
has made and have no interest in them
other than to see that they are paid
at maturity. It does not loan money
to anyone for the purpose of specula
tion, either in actual commodities or
in market futures. It loans only to
honest, energetic and responsible per
sons who have demonstrated their abil
ity not only to save but to make bor
rowed capital return a profit. If you
believe that your money will be safe
when left with a bank run for the pur
pose and in the manner we run this
one, then we invite you to become one
of our customers and make use of the
convenience and protection we offer.
We assure you and our many other
satisfied customers that when you
have helped us grow to the extent that
additional capital is necessary to en

able us to faithfully serve and protect
your interests, we shall not hesitate
to increase our capital commensurate
with our growth and added responsi
bility.”
I have faith in the individuals who
manage our banks, faith in their in
tegrity and judgment, faith in their
desire to serve their community in
sincerity and for the welfare of all,
faith in their judgment as to when an
increase in capital will enable them to
increase the service they have to of
fer, faith that they will always en
deavor to provide the fullest protection
for their customers at all times. And
as a result of that faith, I am willing
to trust the judgment of the individual
bank owners as to when and to what
extent, increases in capital should be
made. In the final analysis, policy
making is the sole prerogative of the
individual bank managers.
As you probably have observed, this
analysis assumes that the individual
banker is alert, informed and practical
in his conception of the opportunities
and responsibility incurred as an ac
tive bank manager.
Unrestrained supervisory authority,
either from incompetence or willful
design, can seriously damage, if not
totally destroy, the banks under its
immediate supervision. On the other
hand, an intelligent, considerate and
courteous authority can offer correc
tive suggestions which can be of in
estimable value to the banker, who for
some reason is not fully informed on
the opportunities and responsibilities
of modern bank management. # #

Have our nearest district manag
er discuss Valid W A R EH O U SE
RECEIPTS and the safety and eco
nomy of this service with you.

The most attractive reward any busi
ness receives from doing good work
is its increased ability to do better

'ty a cv i T ^ r a te c ttfw
1. V alu e of the Merchandise.
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2. Our A b ility and skill supported
by our W arehousem en’s Legal
Liability and Employees Fidelity
Bond, underwritten by the Hart
ford Accident and Indemnity Co.
3 . O ur Record Stands — Not one
dollar of loss to Lending Agent,
Bonding Company or Ourselves.

[ .. 6>

WRITE TO
NEAREST o f f i c e
a

(Complete information
given — N o obligation)

work. Good service to its correspond
ents has always been the first thought
of the City National Bank, and by
making it good we have increased
our ability to make it constantly better.

uiJtiSHlSBteLe___________________
FIELD W A R E H O U S IN G D IV IS IO N

ST.LDUI5TERminflLU)HBEH0U5E CD.
S E R V IN G

IN D U ST R Y OVER

GENERAL

TW ENTY YEARS

O F F I C E S - ST« L O U I S M O .

C I N C 1 N N A T I • ■• K A N S A S C I T Y
C H I C A G O < D A L L A S > M E M P H I S

Northwesfern

Banker,

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

March,

1946

FI FTH AVENUE
SOUTH-226-

NATIONAL

BANK

¿ & r v to n , <9crw n

Member of The Federal Deposit Insurance Corporation

LEGAL QUESTIONS
(Continued from page 24)
holding there was that an island in the
Missouri River which had not attained
definite form at the time North Dakota
became a state was, upon its creation,
property of the state since it originated
on land under navigable waters to
which the state acquired title as an
incident of sovereignty.

All Iowa banker, acting as admin
istrator of the estate of a friend, was
confronted with the following prob
lem: The widow of the decedent paid
the funeral bill, not from her own
funds but from funds turned over to
her by the labor union to which her
husband belonged for the express pur
pose of paying such bill. The union
had raised the funds by making an as
sessment against each member. Was
the widow entitled to be reimbursed
from the estate for the payment so
made?

No. Where a payment made on fun
eral expenses by a widow does not con
stitute an advancement from her own
funds but from funds turned over to
her by her husband’s labor union for
the purpose of paying the funeral bill,
the widow is not entitled to be reim
bursed from the estate for the pay-

T he
N ew Y ork T rust
Company

ment so made. The payment did not
represent a depletion of her own funds
or an advancement from such funds
and she therefore had no claim that
the payment should be returned to her.
G ). McWhirt died in Nebraska leaving, as far as could be ascertained at
the time, no will. Jordan was ap
pointed administrator of the estate.
Later on a will was discovered and
duly offered for probate. Under it,
White was nominated executor. Jor
dan sought to contest the probate of

the will. His sole interest in the mat
ter was as the administrator. Could
he contest?

No. Under Nebraska law only par
ties “concerned” may contest a will.
The Supreme Court of that state in so
interpreting such law recently said:
“While the authorities are not uni
form, we think the better reasoned
judgments are that the administrator
as such is not interested within the
meaning of the statute giving the right
to contest to a party ‘concerned.’ ” # #

A "NATURAL"
O n occa sion we hear the remark
about a product to the effect that it’s
a "natural,” meaning that it can’t fail
to click. T o qualify under this term a
product must make a real contribu
tion to the market that buys it. It
must deliver more in com fort, or in
convenience or pleasure, or it must
save money for the buyer. I f it does
any o f these things fully, or all o f
them in part, it’s a "natural” .
Personalized Checks are "naturals”
because people like them, banks save
money on them, operating people
find them a real convenience in sort
ing and filing . . . and they d on ’t cost
much money. For some reason or
other banks get a kick out o f selling
them and, from coast to coast, their
enthusiasm is mounting.
Some years ago we introduced the
thought that bank checks were the

"spearhead o f bank merchandising,'
meaning that they broke the ice in
sales contacts with the public. T o sell
big things it is desirable first to sell
little things. T o please customers in
im portan t transactions it’ s a g o o d
thing first to create that "attitude o f
acceptance” by pleasing them in little
transactions. Personalized Checks are
indeed little things but they pack a
punch and pave the way for the big
sales job facing all banks.
For years bank checks were mere
slips o f paper, but now we know they
can be dramatized and used effectively
to improve internal bank operations
as well as public relations. They are
the principal connecting link between
the bank and the public. They are
the personal currency o f the individ
ual. They represent the com m on point
o f contact with all depositors. Are
you selling them in your institution?

Capital Funds Over $50,000,000

IO O B R O A D W A Y
M A D IS O N AVENUE
A N D 4 0 T H STREET

h e y

look
TEN
ROCKEFELLER
PLAZA

THAT

STICK

Tension's BANKERS FLAP
carry bulky mail
safely. Popular sizes carried
in stock, in strong brown
Kraft paper. The wide flap
is gummed to seal from end
to end and to stay SEALED.
EN VELO PES

KNOW S
HOW

Member o f Federal Deposit Insurance Corporation

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

1912 Grand Avenue

Phone 4-4126

Des Moines 14, Iowa
Northwestern

Banker,

March,

194&

What Do You Think?
ESPONSE to the
“What Do You Think?”
Rquestion
last month was so heavy that
N orthwestern

B anker’ s

it was impossible to print all the an
swers sent in by many bankers. In
reply to the question, “What do you
think of the proposed 4.4 billion dollar
loan to Great Britain?” the following

were received in addition to those al
ready published:
C. Pederson, president, Farmers
& Merchants State Bank, Ruthton,
Minnesota: “The $4,500,000,000 ‘dona
tion’ to Britain is a case of damned if
we do and damned if we don’t. In my
humble opinion we, the United States,
should take a first mortgage on Ber
muda, the Virgin Islands or something
of the sort, then foreclose and take
over. We never seem to be able to talk
other nations into loaning money to
us.”
H.

W. R. Sandager, president, Farmers
State Bank, Lisbon, North Dakota: “As
a banker I am opposed to making a bad
loan. We know this loan will not be
repaid. Why cloak it with the name
of ‘loan’ when we know it is a gift?
Let’s grant it or deny it on that basis.”
VY.

Jones,

president,

Citizens

Bank of Mobridge, South Dakota: “ In
my opinion this loan should be made
on a strictly business proposition, the
same as any other loan. After all, the
Government is loaning the people’s
money and it is no different than a
bank loaning the depositors’ money.
In my opinion a loan of this size
should be secured so that it would
have the same status as any other
legitimate loan.”
Wm.
Rem pier, president, The
First National Bank, Parkston, South
Dakota: “What do I think of the pro
posed $4,400,000,000 loan to Great Brit
ain? Well, I guess we have to make
it if we expect to retain the so-called
‘free enterprise’ system, or capitalism,
as it is called in the text-books. We
cannot retain capitalism in the U. S.
if it is lost in Great Britain.
“ But in making the loan we should
make sure that it will accomplish the
desired result. Instead of forcing Eng
land to let us have part of the trade
with her colonies, thus making it still
more difficult to exist or survive, we
should make it possible for her to com
pete for world trade on a survival
basis.
“ It doesn’t make sense to say that
competitive industries can bring raw
materials thousands of miles to Eng
land, process them on the little island

Experience
Service
Cooperation
Manned by officials with years
of experience, our Correspon
dent Bank Division renders a
complete service, conducted in
an intimate and personalized
manner.
The guiding policy is one of
cooperation in all matters of
mutual interest.

KW ARTET"

N WRAPPERS

W r i t e T o d a y , to D e p t . G

BANK

B anke r,

March,

AND

COMPANY

TRUST
NEW

E S T A B L I S H E D

1946

Bankers:
We

specialize

writing

autom obile and fire insur
ance.
S pecial

bank

service

attractive p r o p o s i t i o n

and
for

banker agents.

YORK

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
M b Pleasant, Iowa

1 90 8

E. A.

\
Northwestern

C. W. Pennington, president, The
First National Bank of Sumner, Iowa:
“ In replying to the above, in my opin
ion it would certainly be a mistake to

★

Public National
I

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

H. Lentz, president, The Security
Bank of Hebron, North Dakota: “ I
am not in favor of the $4,400,000,000
loan to Great Britain as I do not think
they would consider it a loan but an
outright gift and would treat us the
same as they did after World War I.
“Why should the American taxpayer
work to bail out Great Britain when
this same money spent here in the
U. S. would help us much more than
we would benefit from exports to
Britain?”

crf%,

S IN G LE wrapper designed
to wrap pennies, hickels,
dimes and quarters in HALF
SIZE packages. Made of"SteelS tron g " K ra ft fo r g r e a t e r
strength. Tapered edge. Printed
in 2 colors. • FREE SAMPLES.

with its labor, and export the finished
products other thousands of miles to
the world market on an economical
basis with any chance whatever of
survival.
“There is only one way to make the
$4,400,000,000 loan of any permanent
value to Great Britain. It is to ear
mark it to be used exclusively in
moving 20,000,000 people out of Eng
land (where they cannot support
themselves without outside help) to
Canada, Australia, New Zealand and
to other parts of the empire. And
Great Britain should be compelled to
agree to keep not to exceed 20,000,000
or 25,000,000 people on the tight little
Isle at any one time in the future.
“ In this way, and only in this way
can we rest assured that Great Britain
will not be back in 5 or 10 years for
another $4.4 billion ‘so-called’ loan.”

Member:
Me
New York Clearing House
Association, Federal Deposit Insurance
Corporation

HAY ES,

P resid en t
O. T. WILSON,

E sta b lish e d

1929

S e c r e ta r y

Iowa News
loan Great Britain any money. It
occurs to us that it is an imposition
on the taxpayers and it is also our
opinion that taxes should he lowered.
They certainly cannot do this when
they are loaning money to Great Brit
ain and other countries who will never
pay.”

Announces Promotions
The Manufacturers Trust Company,
New York, announces the promotion of
Mr. Edmund Leone from assistant sec
retary to assistant vice president. A
member of the bank’s personal loan
department, installment financing at
its 29 Broadway office, Mr. Leone’s
twenty-two years with the Manufactur
ers Trust Company were interrupted
in 1944 upon entering the United States
Army Quartermaster Corps. Upon re
lease from service, he resumed his
duties with the bank.
Mr. Leone, a native New Yorker,
graduated with a B.C.S. degree from
New York University and an L.L.B.
and Masters Degree from St. Lawrence
University. Admitted to the bar in
1934, he has been active in financial
activities, one of which is counsel for
the Esquire Credit Club of New York.

IN D E X OF

MUT UAL

A
A llie d M u tu a l C a s u a lty C o m p a n y ...... 42
A lly n , A . C., and C o m p a n y ....................... 36
A m e ric a n E x p r e s s C o m p a n y .................. 73
A m e ric a n
N a tio n a l B a n k an d T ru s t
C o m p a n y ............................................................... 28
It
B a n k e rs T ru s t C o m p a n y, D es M o in e s . . . 79
B a n k e rs T r u s t C o m p a n y, N e w Y o r k . . . .
7
C
4
12

BONDING
COMPANY
Incorporated 1933

Home Office
SOUTHERN SURETY BUILDING

Des Moines, Iowa

•

This is Iowa’s oldest surety company.

A progressive company with experi
enced, conservative management.

D
D a v en p o rt, F . E . and C o m p a n y ...............59- 67
D e L u x e C h eck P rin te rs , In c ..................... 75
D es M oin e s B u ild in g , L o a n and Saving's
A s s o c ia tio n .......................................................... 77
D is tr ib u to r s G roup, I n c ................................... 35
D o a n e A g r ic u ltu r a l S e r v ic e ........................... 66
D ow n e y, C. L., C o m p a n y ............................. 76
D r o v e r s N a tio n a l B a n k ............................... 66

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 bank.

Write to

E m p lo y e r s M u tu a l C a s u a lty C o m p a n y . . 41

E. H. WARNER
Secretary and Manager

Fooled Again
A well-dressed woman walked into
a bank and glanced about her with
such a commanding air that the pres
ident of the bank came out to wait
on her.
“ Is there anything I can do for you,
madam?” he inquired.
“Yes,” she said, fishing an envelope
and slip of paper from an alligator
bag.
“ Sign here, please, Western
Union.”

M ERCHANTS

A D V E R T IS E R S

C e n tra l H a n o v e r B a n k and T r u s t C o ...
C e n tra l N a tio n a l B a n k and T r u s t C o ...
C e n tra l S ta te s M u tu a l In su ra n c e A s s o
c ia tio n ....................................................................
C h ase N a tio n a l B a n k .................................... 25
C ity N a tio n a l B a n k , C lin to n ..................... 74
C ity N a tio n a l B a n k and T r u s t C o m p a n y,
C h ic a g o ..................................................................
C o m m e rce T r u s t C o m p a n y ........................ 72
C o n tin e n ta l B a n k and T r u s t C o m p a n y . .
C o n tin e n ta l Illin o is N a tio n a l B a n k and
T r u s t C o m p a n y ........................................... 31
C o n tin e n ta l N a tio n a l B a n k , L in c o ln . . . .

E
F ir s t
F ir s t
F ir s t
F ir s t
F ir s t

N a tio n a l B a n k , C h ic a g o ...................... 70
N a tio n a l B a n k , O m a h a ......................... 57
N a tio n a l B a n k , St. J o s e p h . . ............. 56
N a tio n a l B a n k , S io u x C i t y ............ 67
W is c o n s in N a tio n a l B a n k ............ 44
II

H a ls e y , S tu a rt and C o m p a n y ................... 37
H a m m e r m ill P a p e r C o m p a n y ................. 2 6-27
H e r r in g -H a ll-M a r v in S a fe C o m p a n y . . . .
3
H o m e In su ra n c e C o m p a n y ..............................
5
I
I o w a -D e s M oin es N a tio n a l B a n k and
T r u s t C o m p a n y ........................................... 80
I r v in g T r u s t C o m p a n y .................................. 32

Banks Sold or Bought!
quietly, quickly and in a personal manner

JAY A. W ELCH
BANK BROKER
Haddam, Kansas
“37 Years Practical Banking Experience”

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION
Oldest In Des M oines
210 6th Ave.

Dial 4-7119

ELMER E. MILLER
Pres, and Sec.

HUBERT E. JAMES
Asst. Sec.

FOR YOUR ENJOYMENT . . .
Listen to the

“ WORLD OF MUSIC”
KRNT, 1350 KC

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

1 to 1 :30 p.m. Sundays

J a m ie so n and C o m p a n y .....................................

lv
K o c h B r o t h e r s ........................................................

L
L a M o n te , G e o rg e and S o n s .............................
L e s s in g A d v e r tis in g C o m p a n y ....................
L iv e S tock N a tio n a l B a n k , C h i c a g o . . . .
L iv e S to c k N a tio n a l B a n k , O m a h a ............
L iv e S to c k N a tio n a l B a n k , S io u x C ity . .

38
77
23
60
50

R
R enier, M itc h e ll & R e itz e l, In c ...................... 37
R o y a l B a n k o f C a n a d a ....................................... 69
R u s s e ll C o u n ty B u ild in g and L oan A s s o
cia tio n . . . ? ................... ...................................... 3

M e rc h a n ts M u tu a l B o n d in g C o m p a n y . . .
M e rc h a n ts N a tio n a l B a n k ................................
M e rrill L y n c h , P ierce, F e n n e r & B e a n e .
M in n e a 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 ...............................................................
M in n e s o ta C o m m e rc ia l M e n ’ s A s s n .........
M ississ ip p i V a lle y T r u s t C o m p a n y ..........
\
N a tio n a l B a n k o f C o m m e r c e ........................
N a tio n a l S u rety C o r p o r a tio n .........................
N e w Y o r k T r u s t C o m p a n y .............................
N o r th e rn T r u s t C o m p a n y ................................
N o r th w e s te r n N a tio n a l B a n k .........................
N o r th w e s te r n N a tio n a l L ife In su ra n c e
C o m p a n y ...............................
O
O m ah a N a tio n a l B a n k .......................................

77
2
34
46
48
30

58
29
75
68
47

S
St. L o u is T e r m in a l W a r e h o u s e C o............ 74
St. P au l T e r m in a l W a r e h o u s e C o m p a n y
S
S c a rb o ro u g h and C o m p a n y .................. 3 5 -3 9 -6 2
S e c u rity N a tio n a l B a n k , S io u x C i t y . . . . 71
T
T e n sio n E n v e lo p e C o r p o r a tio n .................... 75
T h o m so n & M c K in n o n ....................................... 36
T od d C o m p a n y ...................................................... 52
T o y N a tio n a l B a n k .............................................. 73

U n ite d S ta te s N a tio n a l B a n k ......................... 54

V a lle y B a n k an d

P
P h ila d e lp h ia N a tio n a l B a n k ...........................
6
P o lic y h o ld e rs N a tio n a l L ife In su ra n c e
C o m p a n y ...............................................................
P u b lic N a tio n a l B a n k an d T r u s t C o ......... 76

V
T r u s t C o m p a n y ...........

XV
W a lt e r s , C h a rle s E ., C o m p a n y .................. 56
W e lc h , J ay A ............................................................
W e s s lin g S erv ice .................................................
W e s t e r n M u tu a l F ire In s u ra n c e C o ......... 43

77
71

Northwestern

Banker,

March,

1946

Iowa

News

In the

D IR E C T O R ’S
ROOM
junior Spendthrift
It was just before closing one Satur
day in a penny savings bank estab
lished for children. A small boy came
in and withdrew two cents. Monday
morning as soon as the bank opened,
he returned and deposited the two
cents.
“So you didn’t spend your two
cents,” observed the teller.
“Oh, no,” replied the boy, “but a
feller likes to have a little cash on
hand over the week-end.”
Troubles Ended
There was a Swede who lived practi
cally on the border between Minnesota
and Wisconsin. For years he wasn’t
certain which state he lived in. Final
ly he got a state surveyor to make a
special investigation of the problem.
“You live,” decided the surveyor, “in
Wisconsin.”
The Swede threw his hat into the
air with great glee.
“Thank heaven,” he cried. “No more
of those terrible Minnesota winters.”
Confidential
“Good morning,” said the switch
board operator. “ This is Perkins, Par
kins, Peckham and Potts.”
“Mr. Perkins, please.”
“Who is calling, please?”
“Mr. Pincham of Pincham, Pettam,
Popum and Pogg.”
“Just a moment, please. I’ll give
you Mr. Perkins’ office.”
“Hello, Mr. Perkins’ office.”
“Let me speak to Mr. Perkins,
please.”
“Mr. Perkins? I’ll see if he’s in.
Who’s calling, please?’
•“ Mr. Pincham of Pincham, Pettam,
Popum and Pogg.”
“J u s t a moment, Mr. Pincham.
Here’s Mr. Perkins. Mr. Pincham on
the line, please.”
“Just one moment, please. I have Mr.
Pincham right here. Okay with Per
kins, Parkins, Peckham and Potts,
Mr. Pincham. Go ahead, please.”
“ ’Lo, Joe. How about lunch?”
“ Okay, Charlie.”
Northwestern

Banker,

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

March,

1946

A Helping Hand
The professor was about to make his
first speech before a large convention
and was very hurriedly and nervously
trying to dress in his hotel room. After
several unsuccessful attempts to tie
his tuxedo tie, he stepped to the next
room and asked the gentleman there if
he could tie a bow tie. His neighbor
said,

f Conventions
March 25-26, Central States Con
ference, Annual Meeting,
Chicago, Palmer House.
April 14-16, A. B. A. Executive
Council, French Lick, Indi
ana, French Lick Springs
Hotel.
May 1-3, Illinois Annual Con
vention, St. Louis, Jefferson
Hotel.
May 7-17, Iowa Group Meetings.
May

20-22, Missouri Annual
Convention, St. Louis, Jef
ferson Hotel.

June 11-14, American Institute
of Banking, Cincinnati.
June 12, Iowa Junior Bankers,
Des Moines, Hotel Fort Des
Moines.
June 12-13, Minnesota Annual
Convention,
Minneapolis,
Hotel Nicollet.
June 14-15, South Dakota A n
nual Meeting. Black Hills.
June 17-18, North Dakota A n
nual Meeting, Fargo, Gard
ner Hotel.
June 19-20, Wisconsin Annual
Convention, M ilw a u k e e ,
Hotel Schroeder.
September 9-11, Iowa Annual
Convention, Des Moines,
Hotel Fort Des Moines.
October 7-10, Financial Adver
tisers Annual Convention,
San Francisco.

“Why certainly, just lie down on the
bed.” The professor was a bit startled
at this but did as he was told. Then
the obliging friend calmly got on the
bed, knelt astraddle the somewhat em
barrassed professor and very deftly
tied his tuxedo tie. When the profes
sor got up he was still puzzled but very
thankful and introduced himself to the
stranger by handing him his card and
saying:
“Thank you very much. I’m James
Handley, a professor at State Univer
sity.”
The stranger accepted his card, po
litely shook hands and said, “Very
glad to know you. I’m Blackwell the
undertaker.”
How Nice
A tightwad traveling salesman sent
his better half a check for a million
kisses as a birthday present. He was
considerably upset when a few days
later he received the following letter:
“Dear Jim: I can’t begin to express
my appreciation of the check you sent
me on my birthday. I presented it to
the milkman this morning. He cashed
it.”
Is You Is or Is You Ain't?
John: “Which is correct, ‘A hen is
“sitting,” ’ or ‘A hen is “setting” ’ ” ?
Farmer: “ I don’t know and I don’t
care. All I bother about when she
cackles is ‘Is she laying or is she
lying?’ ”
I Believe It
“A good politician is a fellow who
says nothing in as many words as pos
sible.”
Quick, the Aspirin
Nancy. “ Do you hyphenate ‘Head
ache’?”
Ruth: “ Not unless it is a splitting
one!”
Everything Under Control
Mrs. Jones: “When you wait on my
guests tonight, don’t spill anything.”
Maid: “Don’t worry. I know how
to keep my mouth shut.”

do you think my
inventory o f raw m aterial
is big enough?

(ip S i
H i

•***;

i t looks O.K., but
why not check with the
Bankers Trust on your next
trip to d es Moines?

hat

’S the right answer. We always welcome the opportunity to give your good customers

the full benefit of our experience and contacts in their own fields of business . . . and the

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

opportunity to be of help in any of the other important ways in
wdfich our bank can give valuable service as your Des Moines
correspondent.

BANKERS TRUST
C O M PA NY DES MOINES

This Bank is called upon frequently to participate
with correspondent Banks in loans to their local
enterprises.
Our experience, covering many industries, enables
us to offer practical cooperation with correspond
ent Banks, not only with local loans, but in obtain
ing credit information of accuracy and timeliness.
This cooperation is offered as a helpful, construc
tive service to our correspondent Banks.

In no

w ay do we wish to compete for business belonging
to local Banks.
W e shall be glad to discuss with you
the needs of your customers who require
larger credit lines than you can extend.

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

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£ T J ilb i Ü Ü M M
Member Federal Deposit Insurance Corporation