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vey — Pag ■¡Í3í4®©ffií 'S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E COUNTRY BANK CONFERENCE IN OMAHA— See page COMPLETE SERVICE For your correspondent needs in this area, consider the service offered by the Merchants National Bank in Cedar Rapids — its widespread network of contacts throughout the midwest — its strong resources, its long experience and its friendly official staff. Many hundreds of bankers are finding complete satis faction and value in a Merchants National Bank corre spondent connection. Rapidi Bank Alldoma THE MERCHANTS NATIONAL BANK OFFICERS JAMES E. HAMILTON, Chairman Executive Committee S. E. COQUILLETTE, Chairman of the Board JOHN T. HAMILTON II, President H. N. BOYSON, Vice President ROY C. FOLSOM, Vice President MARK J. MYERS, Vice President and Cashier GEORGE F. MILLER, Vice President and Trust Officer « MARVIN R. SELDEN, Vice President FRED W . SMITH, Vice President R W . MANATT, Assistant Cashier L. W . BROULIK, Assistant Cashier PETER BAILEY, Assistant Cashier R. D. BROWN, Assistant Cashier O. A. KEARNEY, Assistant Cashier STANLEY J. MOHRBACHER, Asst. Cashier WALLACE S. HAMILTON, Building Manager Cedar Rapids Iowa Member Federal Deposit Insurance Corporation Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. 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A m ong other services to correspondent banks are: Issuance of commercial and traveler’s letters of credit Complete facilities for the safekeeping of securities Collection of checks, drafts and other bank documents Transm ission of funds abroad and shipment of currency Information on credit standing of firms and individuals Participation in local loans when desired by correspondents Performing a w ide range of incidental services THE Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHASE NATIONAL O F THE CITY O F NEW YO R K Member Federal Deposit Insurance Corporation BANK "" ' JL \ ÆÆÆ < y j 4 4 l “ T > U E N A VISTA/’* so-called in honor _ U of Zachary Taylor’s victory at the battle of that name during the Mexican War, was built near Wilmington, Dela ware by John Middleton Clayton in 1846. This large rambling brick house with its approach through a magnificent avenue of trees is still in the builder’s family and is now owned by his grand nephew, Senator Clayton Douglass Buck. Many famous paintings still hang in “ Buena Vista,” including the distin guished portrait of Queen Elizabeth painted by Nicholas Hilliard in 1850, and several others painted by the re nowned American artist, Gilbert Stuart. John Clayton, Chief Justice of Dela ware, United States Senator and Secre tary of State under Zachary Taylor, was graduated from Yale College with the highest honors of his class. He then https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis studied law and was admitted to the bar in 1819. The skill with which he handled his cases and his remarkable powers of oratory soon made him the outstand ing lawyer of his state. In 1828 he was elected to the Senate by the Whigs, and as the youngest member of that body he soon established an enviable reputation for himself as an orator. He continued to serve in the Senate until 1836, during which time he aided Henry Clay in put ting through his famous tariff bill and was instrumental in effecting the satis factory settlement of the Ohio-Michigan boundary dispute. After his retirement from the Senate, Clayton became Chief Justice of Dela ware for two and one-half years. Later he became inter ested in scientific farming and won an international reputa tion as an agriculturist. In 1845, he was again elected to the Senate where he served F IR E • brilliantly until he was appointed Secre tary of State by President Taylor. In this capacity, one of Clayton’s important contributions to his country was the program he prepared for opening up trade relations with the Orient which Commodore Perry used as a guide dur ing his expedition to Japan. However, his greatest achievement in the diplo matic field was the famous ClaytonBulwer Treaty with England, which set tled disputes which were apparently lead ing to war with that country in 1850. 7he Home, through its agents and brokers, is America's leading insurance protector o f American Homes and the Homes o f American Industry. & THE H O M E ☆ NEW A U T O M O B ILE YORK • M A RIN E IN SU R A N C E 6 Whatever Your Needs May Be Central Hanover is equipped to keep step with your correspondent banking require ments — local, national or international — whatever your needs may be. Investment assistance, prompt attention to routine services, cooperation in unusual situations. CENTRAL BANK Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HANOVER AND TRUST NEW COMPANY YORK M e m b e r F e d e r a l D e p o s i t In s u r a n c e C o r p o ra t i o n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 International Banking Facilities fo r Correspondent Banks I F ew o f our correspondent banks maintain complete Foreign Departments o f their own. However, they are under no handicap in handling the foreign transactions o f their customers. The complete facilities o f our Foreign Department are at their disposal. I f a problem arises all they have to do is to phone, wire or write us. They initiate the transaction; we furnish the facilities. 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I 73 Banking Offices in Greater N ew York European Representative Office: 1, Cornhill, London E.C. 3 Member Federal Deposit Insurance Corporation Northwestern Banker, March, 1947 8 To help banks meet the full needs of their local puec/c am/r/es. • # — th e Irving offers th e e x p e rie n c e and fa cilitie s of a D ep artm en t w hich sp e cia lize s e x clu siv e ly in th e fin an cial req u irem e n ts of this in d u stry. • Major changes currently taking place under the Public Utilities Act give many banks an excellent opportunity to broaden their usefulness to the electric and gas utilities industry and to natural gas and pipe line companies. • To assist banks in this important job, the Irving has assembled a group of specialists who have had years of practical experience in deal ing with the Public Utility industry. Directing this operation is an executive who has been active in the top management of utility companies for more than thirty years. • A new booklet, "Banking Aids to Public Utilities,” describes Irving’s specialized facilities. It may suggest opportunitiesof mutual advantage. A copy is yours for the asking. I r v in (¿T r u s t C o m p a n y Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One Wall Street MEMBER FEDERAL • D EPO SIT New York 15, N. Y. IN SU R A N C E CO RPO RATIO N t 9 Warehouse Receipts Loans Against I nventories Inventories are valuable assets and they constitute the repaying power of many manufacturers, processors, producers and dealers. W here inventories are present, hanks have splendid opportu nities to em ploy profitably their resources through new and larger loans based on them . . . . A nd when secured by our Warehouse Receipts inventory loans are sound. Long experience, integrity and responsibility stand behind our operations . . . . For inventory collateral there is no substitute for a Warehouse Receipt issued by an experienced bona fide Public Warehouse Company . . . . 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 . . . . is>t. 3ßml terminal OTareijouöe Co. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ST. PAUL, MINN. — Iowa Office — — Other Offices — 515 Iowa-Des Moines National Bank Building MINNEAPOLIS MILWAUKEE CHICAGO DETROIT NEW YORK BOSTON PHILADELPHIA PITTSBURGH SYRACUSE MEMPHIS ATLANTA ALBANY, GA. CHARLOTTE JACKSONVILLE DES MOINES TELEPHONE 2-1208 T. C. CANNON, DISTRICT MANAGER "The only company engaged in Field Warehousing with an office in Iow a " Northwestern Banker, March, 1947 10 A P artial List o f Bankers Trust Services to Banks « Bond Portfolio Analysis Collection o f Notes, Drafts, Coupons, Ma tured Bonds and Other Items (Domestic and Foreign) Collection o f Par and Non-Par Checks Commercial and Travelers Letters o f Credit Commercial Paper Purchases Consultation on Pension and Profit-Sharing Plans Co-Paying or Exchange Agent, Co-Transfer Agent or Registrar, and Co-Depositary Credit Information Dealers in United States Government, State and Municipal Securities International Trade and Foreign Banking Facilities Investment Information Participation with Correspondent Banks in Loans to Local Enterprises Receipt and Delivery o f Securities Safekeeping o f Securities Servicing Loans to Brokers and Dealers Transfer o f Funds, Remittances and D o mestic Money Orders Trust and Reserve Accounts These and other specialized services are used daily by our correspondent banks. You are invited to discuss any problem in which you fe e l w e can be of assistance. B a n k e r s T r u st C om pany NEW MEMBER Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL YORK DEPOSI T I N S U R A N C E CORPORATI ON 11 H ea r E d ito r DES MOINES Oldest Financial Journal West of the Mississippi The following letters are from Northwestern Banker readers. Your views and opinions on any subject will be gladly published in this column. • 52nd Year • No. 716 IN THIS MARCH, 1947 ISSUE EDITORIALS Across the Desk from the Publisher................................................... 12 "To Feel at Home" ‘ 1To see the familiar and welcome N orth B anker is all it took to make me really feel at home on the new job.” western Robert Lindquist, Vice Presi dent, LaSalle National Banlc, Chicago, Illinois. "One of the Outstanding Publications" “ I always enjoy reading the N orthwest B anker , as I am firmly of the opinion that it is one of the outstanding publications of its kind.” ern Charles H. Griesa, Vice Pres ident, The Inter-State Na tional Banlc, Kansas City, Missouri. Editor’ s N ote— Thanhs very much. "Correct With One Exception" “ In reading your January issue of the N orthwestern B anker it was interesting to read your article on page 70. In the main it contained correct information—with one exception—my nickname, by which I am called by nearly all of my friends through out Iowa, happens to be ‘ Ted’ instead of ‘Bed.’ ” Samuel P. Sandy, President, Wellman S a v i n g s Banlc, Wellman, Iowa. Editor’ s Note— Sorry “ Ted,” but glad you are out o f the “ Red.” FEATURE ARTICLES Dear Editor ....... ................ .......................................................................... Frontispage ..........................................................................;........-.............. The Month o f February We Spent in Texas........... Clifford Oe Puy What They Said at the Country Bank Conference.............................. Country Bank Conference Pictures.......................................... .....-........ Your G. I. Loan Question Box.............................. Walter T. Robinson About Bankers You Know— T. B. Strain........ ..................................... Are Repairs on a Tractor Subject to a Mechanic’s Lien— Legal....... H 15 16 18 19 20 21 22 BONOS AND INVESTMENTS How Banks A re Investing Their Funds— A N orthwestern B anker Survey............................... ..................... Government Securities and the Money Market........................... -........ Treasury Bonds May Carry Higher Interest....... Raymond Trigger Increased Production Will Promote Prosperity.................................. The Mortgage Financing Outlook....... ........................ John H. Fahey 28 31 33 37 41 INSURANCE The Country Banker Can Be a Good Life Salesman........................ ...................................... ,....................... ...................... George I. Beasing 51 What Do You Think?.......................................................... 54 STATE BANKING NEWS Minnesota News .......................................................................................... Twin City News....... .................................... South Dakota News...................................................................................... Sioux Falls News.......................... North Dakota News.................................................................................... Nebraska News ...................... Omaha News ........................................................................................ Lincoln L oca ls.......... ............................................... Fred L. Fassett Iowa News .................................................................................................... Iowa Group Meeting Dates...............................................................Group Meetings in Sioux City and Burlington.............................. Group' Meeting Pictures.............................. Sioux City News.............................................................................. — 57 59 63 63 65 67 71 73 77 77 80 81 86 "Continuity of Improvement" “ The N orthwestern B anker comes to me as an old friend. The years have put no mark on it save continuity of improve ment, better news and editorial content, better advertising and printing; plus better coverage. During the early thirties when banks were dropping off by scores and hundreds the future of the regional bank ing magazine seemed as obscure as did that of banking. Both emerged from the evil days to reach new heights, to gain alike in scope and esteem. Courage and vision were essential in both fields. “ That these attributes were not only present, but were characteristic of both (Turn to page 82, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN THE DIRECTORS' ROOM Short Stories— Supposed to Be Funny.......................................... 90 Conventions .......................... .....................-...................... .............. —- 90 NORTHWESTERN RANKER 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 RALPH W. MOORHEAD Associate Publisher CLIFFORD DE PUT Publisher HENRY H. HAYNES Editor BEN J. HALLER. JR. Associate Editor MALCOLM K. FREELAND Associate Editor ELIZABETH COLE Advertising Assistant HAZEL C. HADLEY Auditor SADIE E. WAY Circulation Department NEW YORK OFFICE Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806 MUrray Hill 2-0326 northwestern Banker, March, 1947 12 the conditions which made America great, and which will make it greater. I see no reason why the next decade should not be that kind of a dec ade— healthy, prosperous and a progressive period for all of us. But, we’ve got to avoid the present wild and fantastic scramble for money wealth. W e ’ve got to substitute product wealth.” Yes, indeed, Mr. Davis, the increased production of goods which you call “ product wealth” must be substituted for the mere increase of dollars and especially so if increased prices result in a smaller buying power from each dollar. Let’s hope as you predict that the next decade will be one of progress and prosperity. ubeaSi 'll/, fy. K e lly : A cro ss th e Desk From th e P u b lish er 3>ea^ R,. 2> a v id : With some of our economists and business lead ers predicting a depression, a recession and bad business ahead, we were interested in your op timistic report which you presented as vice presi dent and director of sales and advertising for the Ford Motor Company and in which you expressed the opinion that we face a bright future if we can keep production high and prices in line. As you said: “ W e are again entering the good, wholesome competitive atmosphere of a buyer’s market where the consumer is boss, where laziness, inefficiency and slip-shod ways will no longer be good enough— today’s phrase of ‘ That’s it, brother, take it or leave it,’ will change to, in fact is already changing to, ‘ Hold every thing, brother, I have what you want.’ “ If 1946 was a year of confusion, I believe 1947 can be the first year of a decade of unprecedented opportunity. Yet some people are worried by such a prospect. They are afraid it may mean a boom followed by a bust. I see no reason for such fears. I believe we are already moving from a seller’s market, which had some appearances of a boom, to a buyer’s market, which will, in my opinion, be far from a bust. As a matter of fact, I contend that the kind of a buyer’s market we (now face is a healthy market— a market where the emphasis will be on the consumer. Those are Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Your rosy prediction for the consumer credit business carries with it the thought that precau tions are in order with this ever mounting vol ume of time sales. In your capacity as vice president in the time sales division of the Pennsylvania Company of Philadelphia, you know what the consumer credit outlook is, and as you say: ‘ ‘ The consumer credit business will be bigger than ever, and if we can remember and use our experiences of past years, it will be as profitable as ever. The tremendous increase of personal installment loans in the past year indicates that the public is spending more than it is taking in. “ Perhaps the best remedy is to apply the old remedy, tested by experience, which is to watch your personal lending closely in good times. W e can afford to forget about our problem of build ing personal loan volume and concentrate on a judicious selection of our risks. “ If the consumer credit business is to be made a bigger business, it should influence us to stop worrying about the volume, to eliminate ruinous rate-cutting and assume that there will be enough business to go around. W e can expect more and more publicity and governmental attention in the form of regulation. “ So far, with few exceptions, regulation has been lightly applied and publicity has been favor able ; yet we know that the installment finance business has been anything but free from unfair practices. Loading of rates with ‘ packs’ for dealers, misrepresentation of insurance coverages, unfair repossession methods and other abuses from now on will receive an increasing amount of pub lic attention, and governmental regulation will follow. “ Consumer credit is a grand opportunity for private banking to sell itself to the public. It also represents a great risk to private banking if it is poorly administered. 13 “ The really important problem with which we have to contend today and tomorrow in this busi ness is the matter of rates. Gross return today on installment sale credit both before and after dis tribution of dealer reserves is substantially lower than the return which prevailed prior to 1941.” The question of building a large volume of con sumer loans, as you emphasize, Mr. Kelly, is not as necessary today as it used to be since there is a tremendous demand for personal loans, there fore, finance companies and banks with personal loan departments must watch more closely than ever the loans which they do make. Also, since there is such tremendous competi tion for consumer credit business, the loaning rates are likely to come down and this means that risks must be watched more carefully than ever. 2 > eoA / M en S fitL o M : Your discussion of personnel and other bank ing problems in your recent speech presented some very interesting points which all bankers can heed and follow. As president of the Federal Keserve Bank of New York, your observations are most timely. The great progress which we have made in efficiency and the use of time-saving machinery has all helped to give us more leisure and yet we must not overlook the fact that there is a great deal of unrest and a great many problems yet to be solved between employers and employes. Bank employes must share in the benefits which they help to create. A m o n g y o u r o b se rv a tio n s w ere th e se : “ During the last half-century, we have greatly shortened working hours and greatly increased our hours of leisure. Our failures certainly have not been in the magnitude of our gains. They have been in the fitfulness of our progress, in our haste to use increased production to satisfy immediate consumption needs, and in the distribution of our gains among various groups in the community. “ How have we achieved these tremendous gains? W e have achieved them in large part by increased efficiency in the use of our time, our materials, and our capital equipment. That is the way we must look for future gains. “ In so far as banks are concerned, we as man agers must be alert to improve organization and administration, to place the best possible tools in the hands of our workers, and to see to it that bank employes, as a group, share with other wage earners in the fruits of progress— increased real incomes and increased leisure.” ployes if the financial institutions of America are to continue to make the progress in the future which they have made in the past. jbeasi f l a n n e l af /¡m e^ ica : With a trend towards government ownership of railroads, utilities and banks in other parts of the world, it is pleasing to note that in recent cross sections of opinion in this country, the aver age citizen is today less interested in having the banks, for example, government owned than at any time in the last few years. A recent public poll showed these very favor able figures concerning whether the government should or should not own the banks: Banks Yes No Undecided 1936 .............................. 36% 56% 8% 1945 .............................. 27 61 12 1946 ......................... 26 66 8 Thus today 66 per cent of the people interviewed voted “ no ” when they were asked the question if they would like to have the United States gov ernment own the banks. This indicates that the public relations policy of the bankers of America is showing results in their favor. No banker, however, should feel smug or com placent about the favorable public trend but should try even harder to help his institution serve its customers better, more efficiently and more courteously than at any time in the past. Even labor union members voted 62 per cent against government ownership of railroads and their opinions were also included in the 66 per cent who opposed the federal control of banks. As one authority puts it, “ England’s Labor government has embarked on a sweeping program of nationalization of electric power, coal mines, transportation and other key industries. By con trast the American workers, including those who belong to labor unions, vote by a substantial ma jority in favor of continued private ownership. In fact, the viewpoint of the working man in that respect is closer to that of employers and business men than in many issues. “ The two groups, who so often war over other matters, agree in their allegiance to the basic principle of private ownership.” So we say, let the bankers of America continue the fine work they are now doing in promoting better public relations with their customers so this favorable trend may continue. Certainly, Mr. Sproul, the “ fruits of progress” must be shared with bank officials and bank em https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, Ì947 14 WHERE FRIENDLINESS IS A TR A D ITIO N . . . WHERE THE P R O M P T , EFFICIENT H A N D ' LING OF EVERT CORRESPONDENT AND TRANSIT ITEM IS AN INVIOLABLE RULE "9 < u u a i fy 'U e tu iL f' R a n k " T he C entral N ational BANK AND TRUST COMPANY 2 > ed M E M B E R 9F E D E R A L Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M o i+ te d , DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 Northwestern Banker, March, 1947 Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B u ll F igh ts and Banana B oats By CLIFFORD DE PUY Publisher The Northw estern Banker EXAS is a land of citrus, sage ernoon. The hot southern sun was brush, cattle, cash, courtesy and beating down ( It hadn’t been out for a “ damnyankees” who have made week) on the last day of the “ Charro good. Fiesta,” the Mardi-Gras of Brownsville. Texas is a state of contrasts— a state Along the streets and in the parks of barren waste lands, of fertile val strolled the bearded boys with side leys, of dirty, dusty city streets, of burns, whiskers and mustaches ar clean fast growing progressive com ranged and trimmed in designs to at tract attention, in the hope of winning munities, of backward Mexican border first prize at the “Brush Court.” By towns, of acres of gushing oil wells; their sides in gay and glittering Mexi Texas is a land of opportunity and of can costumes were their American disappointment. Senoritas, laughing and flirting as they Texas is an empire—throbbing and stopped at the Coney Island conces pulsating with a progressive spirit of sions to buy the usual popcorn, pea enterprise and accomplishment. nuts and ice cream sandwiches. The cities of Texas in the order of their population are: (1) Houston, It had been a week of fun, and who (2) Dallas, (3) San Antonio, (4) Fort cared how tired they were, or how dirty and dusty the streets. W orth, (5) El Paso, (6) Austin, (7) Galveston, (8) Corpus Christi. W e Last night, and for three other didn’t quote the 1940 U. S. Bureau of nights, they had danced to the South Census figures which are the last American rumbas of the 32 piece “ official” ones because we didn’t want band directed by the internationally every Chamber of Commerce telling famous Xavier Cugat, who was on us we were wrong. hand in person “to the tune” of $27,500. The Bull Fight. It was Sunday aftAt mid-afternoon the autos, busses and taxis all turned their radiators to 1— Leaving the snowdrifts for southernward the International Bridge across sunshine. Mrs. F. B. McAneney, left, and the Rio Grande and made one long, Mrs. Clifford De Puy, in front of the De continuous line as they headed for Puy residence in Des Moines, just before “Plaza I)e Toros” in Matamoros, Mex starting on 3,500-mile motor trip. 2— Two “ damnyankees” in front ofico, where the Bull Fight was to take Shary Yacht Club, Port Isabel, Texas. place at 4:00 p. m. Clifford De Puy, publisher of the North Tickets were $4.25 “General Admis western Banker, and F. B. McAneney, sion Sun,” $7.50 “General Admis district examiner, Federal Home Loan Bank Administration, Des Moines. sion Shade” and $10.50 “Reserved Seats 3— “ The Old Lighthouse” at Port IsaShade,” and since we had come south bel, Texas—a landmark of that town of for the sun, we bought the $4.25 tick 1,307 population. ets, but before the fight started it was 4— A little “ Capework” by the matador 5:00 p. m. and most of the ring was in in the arena at Matamoros, Mexico, during the shade anyway. a Sunday afternoon bull fight. T m lV Can you imagine a football, baseball or track meet starting one hour late in “ The States” ? In Mexico the people apparently do not care and we are sure the bulls appreciated living a little longer. As we waited, Mexican boys sold “ eye shades” to those directly facing the sun, while others sold seat cush ions, Mexican beer and the ever-pres ent colored candy bars carried on a large piece of heavy board and all ex posed to the dirt and wind—maybe some day they will hear of cello phane. Suddenly the off-tune band strikes up a few stirring notes and the main gate to the bull ring opens and the “Gala Bull Fight” is officially started as the principal participants— all ex cept the bulls — parade around the arena like Roman W arriors before a battle. The poor bulls, 5 in all, never really have a chance and are each stabbed to death in about 15 minutes apiece. It looks like cruelty to dumb ani mals, as these, at first high spirited, bulls finally are covered with blood and bleeding from their wounds and exhaling blood from their nostrils, eventually fall in a heap and are soon dragged away by two men with a team of horses. It is cruel—but the Mexicans say we sometimes kill our fine young men playing football so perhaps we are the “crazy ones.” Ricardo Balderas was the “ leading man”—the Matador and his capework brought cheers from the crowd as this tall, dark, good-looking young man in his tight black and silver costume of knee breeches, sometimes danced near the bull, sometimes did a slow rumba —moving his feet only a few inches as the raging bull rushed by, missing him only by inches as he gracefully side stepped, ducked or moved his body so he escaped being gored, as the bull lunged at the red cape. Before the bull is finally given the “ stab of death” by the Matador, he has been pierced by a long spear carried by Picadores who enter the ring on decrepit old blindfolded horses covered https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis with pads. Also Banderilleros stand in front of the bull and as he dashes towards them, they implant two long spears in his neck and then jump quickly aside. This, to us, took nerve and skill as these Banderilleros have no cape to distract the bull’s attention. After each bull is killed the Matador struts proudly before the crowd and receives the plaudits of the multiude —he has made another “ home run”— he has pitched a “no-hit game”— he has played the course “ in par”—he hopes to make more money next time because of his improved technique and higher rating—the applause helps. It is 6:00 p. m. and long shadows from the setting sun are cast across the bull ring as the crowd of 2,000 specta tors leave after bull number 5 has gone to his rest on his way to become not a “hamburger” but perhaps a “bullburger.” Auto horns shriek, taxis honk and everyone fights to be first in line as they return over the International Bridge through the customs and back to the United States where they “shoot the bull’ but he isn’t killed. The Banana Boat. “Yes, we have bananas” — bunches of them — big bunches—green bunches— a boat load of them—300 tons of bananas, direct from Honduras. The “Amapala” loaded with bananas from Central America swings easily and slowly alongside the dock at Port Brownsville as the pilot with the skill of a professional eases his ship in pre(Turn to page 26, please) 5— Just before the lunge by the bull, which leaps for the cape as the matador steps quickly aside, at the “ Plaza de Toros’ ’ in Matamoros, Mexico. 6— “ Yes, we have bananas,’ ’ and they are being unloaded from a boat at the Port of Brownsville, Texas, by an endless chain basket machine which picks up each bunch of bananas in the boat and deposits it on the conveyor on the dock. 7— Bananas on conveyor at Port of Brownsville on their way across the dock to waiting trucks, autos and trains. 8— Bananas being loaded in a big truck at the end of the conveyor which brought them from the boat. Northwestern Banker, March, 1947 18 W h a t T h ey Saht at thet 'ou n tr y It All Phases of Smaller Bank Management and Operation Discussed at Mid-Continent Meeting in Omaha EARLY 1,000 bankers from eleven states in the upper midwest came to Omaha, Nebraska, last month to attend the Mid-Continent Country Bank Conference sponsored by the American Bankers Association Small Business Credit Commission in cooperation with the Agricultural Com mission and the Country Bank Opera tions Commission of the Association. The two-day meeting in Omaha was a grass-roots conference — grass-roots in that those attending live close to the soil, and close to their customers, and in that the speakers got right down to the ground and gave their listeners many dollars for every dime it cost to make the trip to the Nebraska metropolis. There should be more meetings like this one. Here are excerpts from what some of the speakers said at the conference: N “ PROGRAM O F SERVICE" C. W. BAILEY Preiident American Bankers Association “ This is not a time for careless lend ing for the purchase of farm land. W hen the farmer needs a piece of land to square out his line or to carry him out to the big road, and pays cash for it, ON THE COVER Seated— C. W. Bailey (left), Presi dent American Bankers Association, and president First National Bank, Clarksville, Tenn.; and Richard W. Trefz, member ABA Country Bank Operations Commission, and presi dent Beatrice (Neb.) State Bank. Standing— Dr. Earl L. Butz (left), director Agricultural Economics, Purdue University; and Robert M. Hanes, past president American Bankers Association, and president Wachovia Bank & Trust Co., Win ston-Salem, North Carolina. there is not much to be said; but mort gaging land that is paid for in order to buy more land at the present high prices is unwise and should, in the interest of the farmers themselves, not be encouraged by banks. “ This is not to say that a loan to a farmer on a good farm properly ap praised and the payments properly amortized is not a good loan. Such a loan is truly self-liquidating. “ Banks have reason to be interested in this problem, for they are now the principal lenders in the long-term farm mortgage field. As of September 1, 1946, they were making three times as many farm mortgage loans as were the Land Bank System or the insurance companies and are making more than is being made by individuals. H ow ever, the banks are screening their loans appropriately. The fact that the loans of banks are being based on sound appraisals and are being prop erly amortized is evidence of the high quality of the loans being made. “ The production value of the farm is still the real value. That must ever be kept in mind. “ Still another challenge to country banks is an investment in the farmers of tomorrow. E very country banker should be active in 4-H Clubs, the Future Farmers, and all other youth projects. The members of these groups are the finest flowers of agriculture. Here is practical agricultural education at its source. Our obligation to better farming, our obligation to banking, requires that we support these activi ties with credit and encouragement. And here is our opportunity to ac(Turn to page 44, please) A t th e C o u n try Mianh C on feren ce in O m aha -------- ► A NUMBER of bankers from the upper midwest who attended 4— Florence Freer, First National Bank; Lois Denton, Nebras ka Bankers Association; and Norma Dollen, United States Na the recent ABA Country Bank Conference in Omaha are pic tional Bank, all of Omaha. tured on the opposite page. Beading from left to right they are: 5— R. L. Smith, president, Stock Yards National Bank, South 1— Phil Krogh, Stockyards National Bank, Omaha; Crawford St. Paul; Gordon Nesbit, president, First National Bank, Fargo, Mortensen, president, Nebraska State Bank, Ord, Nebraska; North Dakota; and Frank Welch, president, Peoples Savings 1«. Nevin Lee, vice president, Bankers Trust Company, Des Bank, Cedar Rapids, Iowa. Moines; John V. Haas, assistant cashier, Northern Trust Com 6— William H. Whitman, vice president, American National pany, Chicago; William N. Mitten, president, Stephens National Bank & Trust Company, and Verne L. Bartling, assistant vice Bank, Fremont, Nebraska; Fred Aldrich, vice president, Con president, First National Bank, both of Chicago. tinental National Bank, Lincoln, Nebraska; and Richard 7— C. W. Bailey, president, American Bankers Association, Dunlap, vice president, Commerce Trust Company, Kansas City. and president, First National Bank, Clarksville, Tennessee; and 2— H. N. Thomson, vice president, Farmers & Merchants Ray R. Ridge, senior vice president, Omaha National Bank. Bank, Presho, South Dakota; George Henry, assistant cashier, 8— Dale Smith, assistant cashier, Central National Bank & First National Bank, Minneapolis; Jack Patton, vice president, Trust Company, Des Moines; Claude L. Stout, president, First Mitchell National Bank, Mitchell, South Dakota; B. L. McCart National Bank, Cameron, Missouri; and Frank Warden, vice ney, South Dakota manager, U. S. Check Book Company, Sioux president, Central National Bank & Trust Company, Des Moines. Falls; D. E. Crouley, vice president, Northwestern National 9— James P. Johnson, Continental Illinois National Bank & Bank, Minneapolis; Carroll Lockhart, vice president, First Citi Trust Company, Chicago; D. K. Snyder, vice president, Stockzens National Bank, Watertown, South Dakota; and L. C. Fore yards National Bank, Kansas City; and Dale Ainsworth, vice man, president, Corn Exchange Bank Elkton, South Dakota, and president, City National Bank, Kansas City. president, South Dakota Bankers Association. 10— Frank P. Powers, president, Kanabec State Bank, Mora, 3— —A. O. Swasand, cashier, Farmers Savings Bank, Vincent, Minnesota; Robert E. Pye, the new secretary of the Minnesota Bankers Association, Minneapolis; Max Stieg, cashier, Dairy Iowa; Marvin Selden, vice president, Merchants National Bank, men’s State Bank, Clintonville, Wisconsin; and L. O. Olson, vice Cedar Eapids, Iowa; and O. B. Lundgren, cashier, Burnside Sav president, Midland National Bank, Minneapolis. ings Bank, Burside, Iowa. Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i-i- llifSI të&âtè 20 Your (i. f. ifnestion l/o.v Lo Eight Questions and Answers on Transfer of Title, Application of Interest, and What to Do in Case of Default By WALTER T. ROBINSON Iowa Loan Guarantee Officer, who answers the things you want to know about the Servicem en's Readjustm ent Act Q . Does the transfer of title to the property by operation of law or other wise after creation of a lien thereon to secure a loan which is guaranteed, in validate the guaranty? that the obligation be delinquent for such utilization, it is apparent that if this amount were endorsed on the prin cipal of the note, it would serve as a reserve for a rainy day. A. Such transfer of title does not in any way affect the guaranteed status of the loan, unless the holder releases the veteran from personal liability or, without consent of the administrator, alters the contract to any extent that would release the security. . Who is entitled to the gratuity payment when the property has been transferred before the check has been Q Q. Wliat is the legal consequence of the language shown substantially as follows in a note secured by a guaran teed loan to a veteran: “In the event the title to the premises described in the mortgage given to secure this in debtedness is divested in whole or in part by reason of sale, death, or otherAvise, then the payment of said indebt edness may be due and payable at the option of said mortgagee.” CD. Does the lack of merchantable title necessarily invalidate the guar anty? A. No. W hile Sec. 36:4325 (b) of the regulations places a rigid responsi bility upon lenders with respect to merchantability of title, it is clearly determined that the protection af forded to a lender under an outstand ing guaranty will not become lost in 'th e event there is subsequently dis covered a defect in the title to the property purchased with the proceeds of the loan, but that the reduction in the amount payable on the guaranty in any such case will be limited to the amount of any loss to the government consequent upon such defect. The lender is not precluded from perfecting title in any case at his own expense. full, the lender should cause payment to be made to veteran on whose behalf the payment is made. If the lender caused payment to be made to the veteran, in lieu of applying it on the loan, it would be our policy in the event of claim to reduce the indebted ness by the amount of the 4 per cent payment, and compute the amount pay able on the reduced indebtedness. A. The wording of the act and regu lations shows plainly beyond any pos sibility of doubt that the above lan guage conflicts with the provisions of the regulations and statute, and hence unenforceable, anything in the note or mortgage to the contrary, notwith standing. Q. What is the proper application of the amount equal to first year’s inter est on the guaranteed portion of the loan which is paid by the government? received by the lender, and, if the lender endorsed the check payable to the veteran, what would the policy be in arriving at the amount of claim if the loan subsequently defaulted? May a supervised lender submit an application for loan guaranty on VA Forms 4-1802, 4-1822, and 4-1842, Applications for Guaranty on Home, Farm and Business loans, respective ly, and seek prior approval of the type given on VA Form 4-1867, Certificate of Approval? A. W hile regulations require that the amount be applied upon the loan, a recent administrative decision has taken a liberal view of its application. It is called a gratuity payment and, at the request of the veteran, may be applied on interest, principal, or a combination of any of the factors that got to make up the monthly payment on the note. W hile it is not necessary A. The 4 per cent payment subse quently paid to the holder of the ob ligation should be applied upon the loan. This is so even though the bene fit thereof may or will accrue to the transferee who purchased subject to the mortgage or assumed payment thereof. This item should have been adjusted at the time of sale closing. However, if the loan has been paid in A. If a supervised lender wishes to obtain prior 'approval of a loan it should submit loan in same manner as non-supervised lender, notwithstand ing the fact that forms established prescribe such as being for non-super vised lenders only. Prior approval is not to be confused with “ Prior Con firmation.” A loan made by a super vised lender in accordance with the Q. Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W A L T E R T. R O BIN SON Answers Your Questions 21 act and regulations may be submitted for prior determination by the Veter ans Administration of the three fol lowing requirements only, namely: 1. Veteran’s eligibility, 2. Amount of guaranty or insurance credit available to veteran, and 3. Eligibility of the purpose of the loan. Prior approval of a loan is based upon a consideration of all pertinent factors, including character and general ability of vet eran to repay the obligation. A b o u t H u n kers You K n o w Q. Is a minor, unless married, eligi ble for the issuance of a Certificate of Eligibility, Form 4-1870; and, if so, can a guaranteed or insured loan be made to a minor? A. W e have here two questions. The eligibility of the minor veteran per tains to his record of service and deter mines his eligibility for benefits under Title III of the act. The fact that he may be eligible to make a loan under the act does not mean that he makes a legal contract under the statutes of the state. It is entirely the responsi bility of the lender to determine the contractual rights of borrower. Our certificate of eligibility does not certify as to such rights, but only as to his eligibility under the act. Under pres ent Iowa statutes the disability of mi nority has not been removed. Q. What action must be taken by the holder of the obligation, and by the administrator in the case of either an actual default, or an impending de fault, and what are the steps to be taken? T. B. STRAIN President, Continental National Bank of Lincoln, Nebraska “ Analyze all loans to avoid losses in the future.” A GREAT many top-ranking banking officials have entered the banking business with a legal background. One of the outstanding financial exec A. First. It is the responsibility of utives of the middlewest who has this valuable legal training is T. B. Strain, the holder to investigate immediately, and determine a practical way to elimi president of the Continental National Bank of Lincoln, Nebraska. He at tended the University of Nebraska Law College and passed the state bar nate the default. He will endeavor to examination in June, 1930. work out a solution of the problem to preclude necessity of his filing suit. Well known to all of his associates is Mr. Strain’s ability for keen, precise This effort may result in: thinking. It is characteristic in liis business dealings that he never makes (a) Extension of the loan. snap judgments and decisions without first giving equal consideration to every (b) Postponement of action with ap factor. Rather than consider expediency essential at all times, he realizes proval of the administrator. the necessity for grasping the long-range perspective as protection for the (c) Postponement of action without future. Typical of this frame of mind is Mr. Strain’s comment on what he approval of the administrator. considers today’s most important banking problem: If the holder fails to obtain the con sent of the administrator to postpone “ During the past few years the lending of money has not been much of a action, he must proceed within two problem. Today there is competition for loans of all kinds and competition months toward the liquidation of the as to rates is just as keen. The bankers will want to serve their communities security, and upon his failure to pro but it is my opinion that careful consideration will have to be given in analyz ceed with this, the administrator may ing all loans if we are to avoid losses in the future.” pursue any legal or equitable remedies Mr. Strain is well equipped to counsel with Nebraska bankers about their and may fix a date beyond which no particular problems for he lias lived in the Cornhusker state all his life. further charges may be included in computing guaranty claim or an in Ide was born in Creighton on August 15, 1892. After attending high school there he worked in the Breslau State Bank, holding the position of cashier sured loss. when he transferred in the same capacity to the Farmers State Bank of Second. The administrator may be notified of an impending or actual de Brunswick. He was associated with the First Trust Company of Lincoln for fault at any time. The holder is re- several years where he gained valuable experience in bonds and investments (Turn to page 68, please) (Turn to page 42, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1947 22 LEGAL A r e K e ¡m irs ona Mecha Subject to Q, The superintendent of the farm of a South Dakota banker drove one of his employer’s caterpillar tractors into a garage and had it filled with gasoline and oil. In addition he purchased from the garage man a clutch plate for one of the trucks used on the farm. A dis pute arose over other matters and the garage man sought to impose a me chanic’s lien on the tractor for the gasoline, oil, and clutch plate. Could he do so? No. In South Dakota a caterpillar tractor is not subject to a mechanic’s lien for gasoline, oil, and a clutch plate where the clutch plate is purchased to repair a truck and not the tractor, since gasoline and oil are nonlienable items and the clutch plate, though a lienable item, is not used in the repair of the tractor. The South Dakota Su preme Court so held in a similar deci sion recently. Q. Gerdall, a banker, sought to pur chase a farm in Towa owned by Mrs. Amanda Brown. In checking the title he discovered that the State Board of Social Welfare claimed a lien against the property on account of certain old age assistance furnished Mrs. Brown’s husband. The assistance, however, was furnished to him before he married Amanda. Was the lien valid? No. The Iowa statute providing that old age assistance furnished shall con stitute a lien on any realty owned by either husband or wife does not create a lien on the w ife’s realty for assist ance furnished to her husband prior to their marriage. To hold one spouse liable for old age assistance rendered the other spouse, the assistance must he furnished during the time the mari tal relation existed. It has been so held by the Iowa Supreme Court in a recent decision. Q. Holbert was employed by a bank. The hiring was verbal and nothing was said regarding what could be done by him with reference to confidential in formation received by him in his em ployment in the event such employNorthwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This and Other Timely Legal Questions Are Answered by the LEGAL DEPARTMENT ment should be terminated. The em ployment was terminated and he went to work for another bank. Could he use such information for his new em ployer to the detriment of his former employer? No. The law is well settled that one of the implied terms of a contract of employment is that the employe will hold sacred any trade secrets or other confidential information which he ac quires in the course of his employ ment, and that therefore an employe who has left his employment is under an implied obligation not to use trade secrets or other confidential informa tion which he has acquired in the course of his employment, for his own benefit or that of a rival, and to the detriment of his form er employer. Cases so holding may be found in Arkansas, Florida, Illinois, Michigan, Ohio, and other states, as well as the federal courts. Q. Brunner died in Nebraska leaving a farm as the principal assets of his estate. In order to pay Brunner’s debts, bis administrator, with appropriate court approval, mortgaged the farm to a local bank under the statute in that state which permits such actions by personal representatives of decedents. The mortgage was not paid and the bank foreclosed. As an incident to the foreclosure it sought to hold the ad ministrator for any deficiency. Could it do so? No. Only the mortgaged property is bound for the repayment of a loan ob tained by the personal representative of a decedent' under authority of a statute authorizing him to mortgage realty with the permission of the court to obtain m oney to pay debts, succes sion taxes, cash legacies, and costs of administration. The Nebraska Su preme Court has specifically so held in a recent decision. Q. A corporation in the business of manufacturing drugs became bankrupt and Jordan, a banker, was appointed trustee. In going through the bank rupt’s books he developed that certain preferential payments had been made to its president. He sought to recover these and had to sue to do so. Was he entitled to interest on the amount of the preference from the date of the commencement of his action as a part of bis recovery? Yes. A trustee in bankruptcy suing to recover the amount of a preference received by a person from a bankrupt is entitled to recover interest from the date of the commencement of his action. It has been so held by the United States Supreme Court and other courts in various decisions in which the question has arisen. Q. May bell, a banker, also operated an automobile agency. In this last named line of business he hired Brock ton as salesman. The terms of the em ployment were that Maybell would ad vance to Brockton a certain sum each week and that these advances would be charged to and deducted from cer tain agreed commissions on each car sold by him. There was no express or implied agreement that Brockton would repay to Maybell any excess of advances over commissions earned. In such circumstances could Maybell, as a general rule, recover from Brockton any such excess? No. As a general rule, where a con tract of employment provides for ad vances to an employe which are to be charged to and deducted from the com missions agreed by the employer to be paid to the employe as they may ac crue, the employer cannot, in the ab sence of either an express or an im plied agreement or promise to repay any excess of advances over the com missions earned, recover from the em ploye such excess. Specific holdings https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 THE OMAHA NATIONAL BANK Northwestern Banker, March, 1947 24 to this effect may be found in Georgia, Illinois, Kentucky, Louisiana, Minne sota, W isconsin and other states. Ala bama, incidentally, holds to the con trary. Q. Suppose that, in the preceding question, Brockton laid down on the job and did not actively engage in sell ing activities on behalf of Maybell with the result that he breached the agree ment to the extent that he disqualified himself from earning the advances. Should Maybell he permitted to re cover from him in such circumstances? Yes. The rule that a total drawing account paid in excess of commissions earned can be retained by the employe is different when, during the time the drawing account was operated, the em ploye was guilty of such a breach of the agreement as to disqualify him from earning the advances; in such a case there is an implied duty to repay such advances. applied the proceeds to the note but these did not satisfy it in full. Jones did not specifically authorize such ap plication or otherwise do anything to recognize the indebtedness. Would the bank’s action of applying the proceeds to the note interrupt the running of the statute of limitations on it, as a general rule? Q. No. The general rule in situations similar to those outlined in the ques tion is that, in the absence of express authorization, the application of pro ceeds derived from property given as security on an indebtedness to such indebtedness does not interrupt the running of the statute of limitations. It has been so held in Minnesota and other states. Louisiana and a few other jurisdictions hold to the con trary. A bank made a $5,000 loan to Jones, taking hack his promissory note due in 60 days, together with certain bonds as security. The note was not paid as it came due and the statute of limitations commenced to run thereon. Later the bank sold the bonds and Q. S h a rin g our kn o w le d g e of FO R EIG N T R A D E FIN A N CE The resumption o f international trade has raised many questions about the credit instruments through which a large part of this trade is financed. To corre spondent banks and customers transacting overseas business, T he First N a tio n a l B ank offers the cooperation o f its Foreign Banking D epartm ent. Officers o f this department can render sound advice based on long experience, on credit arrangements, remitting funds, exchanges in foreign monies, risks in v o lv ed in im port and export transactions. This bank’s network o f foreign banking contacts, developed through eighty years, enables us to offer unusual service in matters o f foreign collections and remittances. In addition, information is available regarding the financial responsibility of business houses throughout the world. FOREIGN BANKING DEPARTMENT The First N a tio n a l B an k of Chicago MEMBER FEDERAL Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DEPO SIT IN SU R A N C E CO RPOR ATION The son of a Missouri banker was employed in that state in a job which was subject to the unemployment com pensation law. As an incident to the job he became a member of a labor union. Later the job was abolished and he became unemployed. There was available to him another job but he refused to accept it because he con tended that it would cause him to lose his standing as a union member or to lose his union permit. Was he entitled to unemployment compensation? No. In an analogous case it was held recently by the Missouri Supreme Court that the refusal of a claimant for unemployment compensation bene fits to accept employment on the ground that it would cause him to lose his standing as a union member or as the holder of a permit from his union disqualified him from obtaining such benefits. Q. Burnie, a North Dakota banker, owned 50 shares of stock in a building and loan association. He endorsed the certificates in blank and handed them to Nowata, telling him that, unless he instructed him to the contrary prior to his death, Nowata was to have them. Burnie collected the income from the stock during his lifetime and subse quently died without giving Nowata any contrary instructions. Was the gift to Nowata valid? No. The North Dakota Supreme Court so held in an analogous case re cently, pointing out that, in order to make the gift a valid one, Burnie should have divested himself of all dominion over the stock and invested Nowata with such dominion and that, since this was not done, the gift failed. — The End. 25 You Get the Money Quickly T h e proceeds o f live stock A ll you need do is ask your sales in Chicago are speedily s h ip p e r s to in s tr u c t th e ir transferred to your bank if Chicago com m ission firms to routed through us. T h e stock route through this bank the yards postoffice is just across m on ey the street and the advice is stock sales. W e shall be pleased mailed on the day o f receipt. to send you instruction cards. received fro m live £ TA e LIVE STOCK BANK </ W / l ic u a o ESTABLISHED 1868 U N IO N STO C K YARDS * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation Northwestern Banker, March, 1947 26 H ull F ig h is anti ISanana (Continued from page 17) cision like manner within a few inches of the wharf. Suddenly the dock is alive with cus toms officials, other men in uniform, carrying important looking brief cases and hundreds of “ extra w orkers” who have waited all morning because they heard that a “banana boat” would ar rive some time “around noon” and they wanted a job helping to unload. Now the canvas coverings over the two holds of the boat—one at each end—are uncovered. Then the big con veyors are put in place with one end in the bottom of the ship, and the Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis other connected to a long, flat belt con veyor which reaches clear across the dock to waiting fruit trucks, trains and vans at the other side. Presently the machinery gets in m o tion and the bunches of bananas start coming up out of each end of the boat in an endless stream like a green vol cano pouring forth its unripened fruit. Each canvas section carries one bunch and looks like the cradle for a baby. As the bunches reach the top of the boat and are deposited on the fiat belt conveyor, they are checked by commission men, and sorted by other men for their degree of ripeness al though to our untrained eyes they all looked very green. The owner of the “Amapala” is paid for delivering the bananas and has no interest in the market price. For this load of 300 tons he was paid $17.50 per ton or $5,250 and the trip took him about two and a half days. If weighing facilities are not avail able at the loading port in Central America, they are counted by “ the stem” and then sold by “the pound” when they are purchased by wholesale fruit dealers up here. In about three hours the long, green serpent-like line ceases to m ove or wiggle—yes there are no bananas on board—the ship is unloaded—the big trucks filled to the roof start for Hous ton, San Antonio and other points not so far distant. The “ extra help” melts away—the dock is cleared— and all is quiet again until the next banana boat is seen com ing into port— except that a few ta rantulas which have escaped detection until now are quickly killed as they appear among the “banana culls” piled at the end of the coyveyor. Yes, we have bananas— and they grow up— not down as you see them. — The End. Named Vice President N. Baxter Jackson, president of the Chemical Bank and Trust Company, has announced the appointment of Leonard M. Horton as a vice president. Mr. Horton is active in the handling of the bank’s Wall Street business. He started working in the Street in 1929 and has been with the Chemical Bank since 1932. He was first made an officer in 1941. Dividend The board of directors of The First National Bank of Chicago at a recent regular meeting declared a dividend of $2.00 per share on the capital stock of the bank, payable April 1, 1947, to stockholders of record March 24; also a dividend of $2.00 per share payable on July 1, 1947, to stockholders of rec ord June 24, 1947. To Air Condition Quarters The Kroeschell Engineering Com pany has announced that they have contracted with the American Bank and Trust Company of Chicago to ex tend air conditioning throughout the bank’s seven floors. To be included in this arrangement are the vaults of the American National Safe Deposit Com pany, and the equipment will have sufficient capacity to expand the air conditioning to the eighth and ninth floors when the bank finds this addi tional space necessary. 27 4 steps in good public relations . . . You give the same consideration to small borrowers as to large ones. That’s good public relations. Your tellers are friendly, know many of their customers by name. That’s personalized service. O You can complete your personalized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bank service with “ INDIVIDUALIZED” checks You give sound and careful advice to long-term investors. That makes friends for your bank. . . A s p e c ia l s u r f a c e d e sig n on H a m m e rm ill S a f e t y a d d s p r o te c tio n to c h e c k s and h e lp s “ id e n t if y ” y o u r b a n k to th e p u b lic Hammermill is supplying special design safety paper to many banks with their emblems part of the paper itself. You also can have individu alized check paper. See your check supplier for suggestions. Or send for samples of “ individual ized” checks and sample book showing wide range of colors and background patterns. Just address a note on your bank letterhead to Safety Paper Division, Hammermill Paper Company, 1513 East Lake Road, Erie, Penn sylvania. E N,AT,° N A L - S t > o r AN¥w h e r e. A nyw h er e u . s . a Dollars Northwestern Banker, March, 1947 28 A N N U A L IN V E S T M E N T SU RVEY A re H a w H anks I f f r e s t i n t j T h eir Tum is Results of a Survey Made Among 2,000 Banks of the Middlewest on What Types of Securities Make Up Their Investment Portfolio A NORTHWESTERN BANKER SURVEY ANKS of the upper midwest will buy more investment securities this year than they have for sev eral years past, according to a survey just completed by the N orthwestern B anker among 2,000 banks in this area. Banks in Iowa, Minnesota, Nebraska, North Dakota and South Dakota sub mitted information from which the analysis was made. The charts on this and the opposite page graphically display the response to the five questions bankers were asked to answer. To bring the analysis into sharp focus, banks replied to the several questions on the basis of three deposit classifications— “ Deposits un der, $2,500,000” , “ Deposits of $2,500,000 to $5,000,000” , and “ Deposits over $5,000,000” , which will permit our read- B No. 1. Key to Charts Deposits of $2,500,000 to $5,000,000 1 More than $5,000,000 Deposits Up to $2,500,000 Deposits -------------- >- In What Type of Securities Does Your Bank Have Its Funds Invested? Government and G ov’t Guaranteed •Government Agencies Municipals General Market Commercial Paper ers to better apply the answers to the investment set-up in their own bank. Before you start your interpretation of the several charts, please note care fully the “ Key to Charts” on this page, which illustrates the three different styles of bars showing each deposit classification. Further reference to these classifications in this article will be to “ small, medium, and large” banks. Note also that for the purpose of this survey, local and real estate loans are not included in any of the percentage or other figures appearing on the charts. Reference is to bonds and other securities only. May we call your attention first to Chart No. 4, where bankers answer the question— “ Does Your Bank Plan to Buy More or Less Securities This No. 2. Do Your Customers Ask Your Advice on Purchasing Stocks and Bonds? YES 100% 100% 100% Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 89 % 88 % 85 % 80 % — 74 % 41 % NO Investments Year?” Of the small and medium sized banks replying, more than two-thirds said they would buy “ more” securities this year, while the large banks were about equally divided between “ more” and “ less.” Comments from bankers answering this question were “W e ex pect our account to be stable, probably reinvestment only” and “ It will depend upon our deposit trends and our local demand for funds.” Across the board, however, banks plan to buy more se curities this year than they did in 1946. Chart No. 1, “ In W hat Type of Se curities Does Your Bank Have Its Funds Invested?” represents the in vestment portfolio of the small, me dium, and large banks replying to the question, broken down into the five types of securities shown. All banks replying have their funds in one or more of the five types of investment listed in the chart. The percentage figures indicate the extent to which the banks in this area have bought each of the types listed. Obviously all banks have some funds invested in Government and Govern ment Guaranteed issues, so the replies for this type are 100 per cent. Not so many banks hold Government Agen cies issues, as will be noted in the chart where only 18 per cent of the small banks say they have funds in this type of security, although 48 per cent of the large banks have bought such is sues. Percentages for Municipal holdings go up again, indicating that along with Governments, many banks have No. 4. Does Your Bank Plan to Buy More or Less Securities This Year? Will Buy More https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Will Buy Less bought Municipals for their invest ment portfolio. Chart No. 2, “ Do Your Customers Ask Your Advice On Purchasing Stocks and Bonds?” indicates the high regard with which bankers are held in their communities when from 80 per cent to 90 per cent of those reply ing said that they were so consulted. Individuals in the smaller cities and towns are fortunate to have a place to go where they can obtain intelligent financial information. Chart No. 3, “ Of Your Government Bonds, W hat Percentage (approximate ly) Mature as Follow s?” shows that the greatest percentage of all banks, small, medium, and large, have such No. 3. maturities grouped in the l-to-5 Year bracket with only a five point spread in the percentage figures. W ith the possible exception of the 39 per cent Up-to-1 Year maturity for the small bank, all maturities of Government bonds held by banks hold rather steady percentage-wise through the 5-to-10 Year maturity date, and then drop off sharply when the maturity exceeds the 10-year period. One banker in the large bank classification comments that “ Governments purchased will be of maturities of less than five years.” Chart No. 5, “What Type of Securi ties W ill You Buy For Investment This Year?” is related to Chart No. 1. Chart No. 1 shows how banks have had Of Your Government Bonds, What Percentage (approximatelyI Mature as Follows? Up to 1 Year No. 5. 29 1 to 5 Years 5 to 10 Years Over 10 Years What Type of Securities Will You Buy for Investment This Year? Government and G ov’t Guaranteed Government Agencies Municipals General Market Commercial Paper 98% Northwestern Banker, March, 1947 30 Investments their funds invested—Chart No. 5 looks into the future and reveals how banks propose to apportion their investments among the five types of securities listed. Comparing Government and Govern ment Guaranteed issues in the two charts, it appears that there will be a slight falling off in such purchases for the balance of this year. Neither do as many banks expect to buy as many issues of Governmental Agencies as they have in the past, and this is par ticularly noticeable in the case of the large institutions. This same trend is also indicated in General Market is sues, and applies to all banks, small, medium, and large. Under the heading of Commercial Paper, the large banks expect to buy more during the next few months than in the past, probably because there will be more paper com ing onto the market as production of durable goods in creases. Summarizing the replies received from banks to this highly important survey, as analyzed in the charts, it appears that banks in this great, rich middlewestern area will buy more in- *&<**/■ SSocA <S<Kc/i<vn<p,e vestment securities this year: their purchases of Government issues will with little exception not exceed a 10year period; and the banker is defi nitely established as the investment consultant of his community.— The End. Joins Des Moines Firm Paul H. Cunningham, Jr., recently joined the staff of W heelock & Cum mins, Des Moines investment banking firm, where among other duties he will call on banks throughout Iowa. He is the son of Paul Cunningham, United States Congressman from the fifth district of Iowa. Paul, Jr., graduated from Missouri Military Academy, attended Monmouth S/fcocJc SxcAa-ft^« Underwriters and Distributors o f Corporate and M unicipal Securities L. H. RYAN: Iowa Representative Union Bank & Trust Company Bldg. Ottumwa, Iowa / S S ffo tc /A foA / ccu jpo 3 f £ c t f f a //e STe/cftAevne P A U L C U N N IN G H A M , JR . T o C a ll on I o w a B a n k s College, and later completed an in vestment banking course in Denver sponsored by the Investment Bankers Association of America. Before com ing with W heelock & Cummins, he was associated with the investment firm of Peters, W riter & Christensen, Inc., of Denver. INVESTMENT SECURITIES Public Utility Industrial Dividend Railroad Municipal A .C. A L L Y N andc o m p a n y Incorporated 100 W e s t Monroe Street« Chicago N ew Y o r k O m ah a M ilw a u k e e W a t e r lo o Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B o s to n K a n s a s C ity M in n e a p o lis M o lin e The board of directors of Investors Selective Fund, Inc., open-end invest ment company, has declared a dividend of 7 cents per share for the first quar ter of the current fiscal year, E. E. Crabb, chairman of the board, an nounced. The current distribution, derived exclusively from interest and dividend income, is payable March 20, 1947, to share holders of record as of February 28, 1947. Investors Syndicate is the principal underwriter and investment manager for Investors Selective Fund, Inc. investments 31 G overnm ent Securities and the M o n e y M a rk et IN ITS annual review of government I securities and the money market ' the bond department of Bankers Trust Company of New York, points out that the large scale retirement of government securities was the princi pal influence on money and banking conditions in 1946. As a result of the Treasury’s debt retirement program, according to the study, there has been a net shrinkage of $15.6 billion in bank holdings of government securities; government de posits have been reduced from $24.6 billion to $2.7 billion and the steady downward trend of interest rates in the early part of the year was halted. In a discussion of debt management the study calls attention to the fact that over half of the $177 billion of marketable government securities out standing are due or callable within five years, including about two-thirds of the amount held by the commercial banks. “ Even if a Treasury cash surplus of several billion dollars should ac cumulate each year,” the writers, state, “ it will be possible to pay off only a small portion of the marketable debt maturing or callable in 1947 and later years; the remainder will have to be exchanged for other Treasury securi ties. “ If the Treasury continues its pres ent practice of converting into certifi- cates all maturing or callable issues not redeemed in cash, the reduction of the short-term debt achieved in 1946 will be undone within a relatively short time.” What approach the Treasury may be expected to take to the problems of debt management over the next sev- eral years will depend to some extent upon the condition of business and the economic environment in which the Treasury’s policies are carried out. If inflationary forces predominate, the Treasury can offset the effects on the money supply by reducing the bankheld debt and distributing a greater Experience In Moving ‘ Blocks Of Securities I j SENSE o f timing and an intimate knowledge A o f the market — these are the qualities that are always important in disposing o f securities in large lots. Sometimes — in some markets — they are the decisive factors in determining the success o f any offering. If you are now confronted with the problem o f selling a sizable block o f securities, we think you will find our familiarity with secondary and special offerings o f particular value. Our experience in J a m i e s o n & C o m p a n y marketing these securities for institutions, for estates, and for large private investors is supple mented by our large distribution facilities— a net work o f 92 offices. Members If we can help you with any such problem, may New York Stock Exchange and other Principal Exchanges we invite you to bring it to us for confidential discussion. STOCKS BONDS COMMODITIES ★ MINNEAPOLIS FARGO ST. PAUL GRAND FORKS DULUTH SIOUX FALLS EAU CLAIRE Private W ire https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M errill L y n c h , P ierce , F enner k B eane Underwriters and Distributors of Investment Securities Brokers in Securities and Commodities 70 PINE STREET j N E W YORK 5, N . Y , Offices in 91 Cities j to A ll Principal Markets iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiis Northwestern Banker, March, 1947 32 Investm ents share to the public. Under conditions of deflation, on the other hand, the money supply in the hands of the pub lic can be expanded and funds released for consumption or private investment by checking or eliminating sales of government securities to the public and permitting commercial bank hold ings to increase. “ During 1947, neither the volume of demand deposits nor net operating earnings of commercial banks are ex pected to show much change from the previous year,” the writers conclude. “Although there are a number of un certainties in the business picture, Public Utility there are many elements of underlying strength in the econom y which encour age the hope that any near-term ad justment in business will be in the nature of a mild recession, mostly in nondurable goods, and not a severe or prolonged depression. "Reaï Income" The “real incom e” of the American people at the start of January, 1947, was $1.06 or 6 cents more on the dol lar than a year earlier, according to Investors’ Syndicate in a study of what people earn and spend. Industrial * Railroad Municipal Underwriters B o n d s and Stocks Dealers Distributors J H. M. Byllesby and Company In co rp o ra te d 135 South LaSalle Street, Chicago 3 Telephone State 8711 New York - Teletype CG 273 Philadelphia - Pittsburgh Minneapolis - “ Higher wages, salaries, investment and ‘other income,’ or cash income generally, has enabled the average family to fare well in regard to cash,” family to fare well in regard to cash.” The larger cash incomes, however, have not been translated into public purchasing power, because of living costs. James A. Cummins James A. Cummins, 54, Des Moines investment banker, died last week in Hot Springs, Arkansas, after a heart attack. He apparently was in good health, having fully recovered from a previous heart attack four years ago. Mr. Cummins, a lifelong Des Moines resident, was president o f the invest ment securities firm of W heelock & Cummins, Inc., which he formed with the late L. F. W heelock. He had been president since 1943. His father, James C. Cummins, was a longtime secretary and president of the Equitable Life Insurance Company of Iowa. An engineering graduate of the Uni versity of Wisconsin, Mr. Cummins saw service in W orld W ar I. In 1922 he entered the investment banking business in Des Moines. He was a past president of the Iowa Investment Bankers Association and at the time of his death was a member of the Eighth district committee of the National Association of Security Deal ers. Surviving besides Mrs. Cummins are four sons and a sister. CALL OR WRITE US ABOUT ANT A. G. Becker &Co. GENERAL MARKET I N C O R P O R A T E D SECURITIES C o rp o rate Bonds M unicipal Bonds * * * Preferred and C o m m o n Stock s LYNN SWANEY & CO. C o m m ercial Paper Roosevelt Hotel Building CHICAGO • E sta b lish ed l 8 ç j Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NEW YORK 206 First Avenue N. E. CEDAR RAPIDS, IOWA Telephone 6647 Teletype C.R. 10 fnVéstmcrtts 33 K e fa a d e d T r e a su r y H oads a a d N o te s M a y C a rry Ë Almost Six Billion of Such Issues Come Due, or Callable, in the Second Half of 1947 By RAYMOND TRIGGER Investm ent Analyst New York City T HE size of the country’s debt is staggering, but that is water over the dam. Nothing can be done now about borrow ing that was obliga tory during the war. But there is more to the federal debt than mere bulk. Its composition can be altered as a matter of policy. It can remain live inflationary tinder, or it can be partly sterilized. Everyone in all walks of life is af fected by the size of debt and no less by the federal debt policy. Am ong groups that were notably affected by federal debt policy during and since the war, not the least is the country’s commercial banking system. Very broadly, the changed position of the banks can be sketched in a few words. The war transformed the banks from short term lending institutions, from lenders of money to facilitate trade and production on terms which were essentially self liquidating, to invest ment institutions, holding extremely large portfolios of government bonds with average maturities of from five to ten years. In the five years from mid-1941 to mid-1946, the government was obliged to borrow 214 billion dollars. Some thing like 60 per cent was secured from non-bank lenders, around 10 per cent was obtained from Federal Re serve Banks and the remaining 64 billions, or 30 per cent, from com mer cial banks. The effect of these enor mous operations on commercial banks becomes more apparent when restated from the point of view of the change in the make-up of the country’s com mercial banks’ assets. Fiduciary Agents Thus, in the years from 1939 through 1945, the percentage of total loans and investments represented by govern ment obligations rose from about onethird to about three-quarters. Obvi ously, the extent to which commercial bankers shifted assets from traditional advances to commerce and industry to governments is the measure by which they have made their total assets “ risk 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. less.” From the viewpoint of safety and from the standpoint of depositors, there can be no complaint. But it has made the banks to an alarming extent merely fiduciary agents of the govern ment and it has created an enormous amount of potential inflation tinder. Prices, wages and capital values of all sorts have risen to an inflationary extent; a vast threat exists in the sit uation. The threat would easily be come a reality were the rate of the turnover of deposits to rise. The commercial banks would have to stand by helplessly; not at fault perhaps, but in a futile and unhappy position certainly. Excess Cash The federal government, however, is not without the means to do a great deal to prevent any such inflationary development. One step would be to reduce outstanding debt. It was easy to do that in 1946 to the extent that the Treasury had excess cash on hand. Some further reduction may be seen in 1947, at least in the early part of the year. The test w ill be to what extent certificates of indebtedness are retired or rolled over. The April and June maturities likely will be 100 per cent rolled over and the reduction of federal debt with excess cash will have come to an end. Such economies as are possible by the federal government will alleviate, too. But whether federal spending is at the 30 or 37 billion dollar level, the figure is dangerously high if spending is to be “balanced” by taxes. If not so balanced, the Treasury will be forced to borrow, thus retracing steps by which debt was reduced in 1946 and the forepart of 1947. There remains one powerful action open to the authorities. They can do much to move federal debt from com mercial banks to non-bank investors. There is not too much hope that much will be undertaken along these lines in the near future because it would involve higher over-all interest costs for the federal government. The two schools of thought on the handling of the federal debt are too far apart to warrant the expectation of a complete reversal of position by the authorities. As long as they can go rolling along “rolling” over one-year y8s, and as long as the potential dan gers inherent in commercial bank hold ings of federal debt remain potential and until long-term investors make out a stronger and more dramatic case for their need for higher earnings from investments, not a great deal can be looked for. Additionally, of course, the Treasury and the Federal Reserve are headed by financiers who have long endorsed the “cheap” money poli cies now in force. There is, however, always room for a compromise. What would appear to be an unusually favorable opportuntiy for the authorities to go a little way toward putting the federal debt on a more conservative basis will be pre sented later in the year. Notes Coming Due As it happens, almost six billion of Treasury bonds and notes, and not counting bills and certificates, come due, or callable, in the second half of 1947. The securities carry interest cou pons ranging from 1*4 per cent to 4% per cent. Here, then, a refunding op eration, perhaps not on so permanent a basis as 20-year 2*4s ineligible for banks, but at least considerably differNorfhwestern Banker, March, 1947 34 Investments ent from the established one-year %s with which maturities have been met for the past year or so, might be em ployed without doing great damage to the feelings of the “ cheap and short” advocates, although perhaps not com pletely satisfying the more orthodox camp. There are at least two reasons for a more conciliatory attitude on the part of the present authorities. One is that there will be more and louder criticism of the frozen short-term structure as evidenced by the %s rate for bills and %s for certificates. There are, of course, cracks in the rigid short-term rate structure on all sides. W herever possible, natural forces have seeped through, or edged around, the artificial barriers imposed by Washington. If the official rates on bills and certificates are allowed to work a little higher by the play of normal money market forces, refund ing of the last half-year’s maturities on something longer than a one-year basis may seem a little less unpalatable. Another reason is that the adminis tration seeks permanent legislation to enable the Tresury to sell direct to the Federal Reserve Banks up to five bil lions of governments. This privilege was granted in W orld Wars I and II. but is now due for a natural death on March 31st. It is, obviously, the worst form of printing press money because it has a partial disguise. Nonetheless, if limited to a total of a billion, or two, it would be correspondingly less dan gerous. It could be that, in the give MUNICIPAL BONDS Specializing in Iowa County, City, School and Municipal Utility Revenue Issues C A R L E T o y D . B C b h o . and take of a Democratic administra tion and a Republican Congress, the Treasury may get part of what it wants in exchange for retreating some what from its present extreme position on federal debt policy. Higher Interest Rates These trends and portents, faint though they may be as yet, are signifi cant to the commercial banks because they add up to a warning of moder ately higher interest rates in general. Prices of longer governments could give way a little, but the effect on cor porate bond prices might be even more noticeable. The vulnerability of corporate bond prices— even including top quality is sues— is double that of governments. Both will m ove with the general in terest rate, of course; but corporates appear, additionally, to be too close to governments under any conditions. If governments hold steady, for example, the differential should still widen. And, if governments do decline moderately, corporates should drop more. Another factor that the prudent in vestment manager will keep in mind is that the differentials within the cor porate group are likewise distorted. The medium and lower grade obliga tions are, judged historically, too close to the upper-medium and top-grades. Thus, the investment portfolio man ager who accepts the probability of gradually rising interest rates and cor responding price adjustments will pro ceed to shorten maturities and upgrade the entire portfolio. IN V ES T M EN T S E C U R IT IE S DES MOINES aUli-DIN® B e s M o i n e s , Io w ^ w Specializing in HIGH GRADE MUNICIPAL BONDS Inquiries Invited Prospectus on request from Principal Underwriter INVESTORS SYNDICATE Becker k (Hvviiii*. Inc. R. E. MACGREGOR, President Minneapolis, Minnesota 823-24 Insurance Exchange DES MOINES 9, IOWA R F P P F S F N T A T T V F < ? TM TW IT P R I M C T P S T Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OTTTIT«! O F TH F TTNTTFn <?T A T F <? Phone 3-5189 Investm ents But, even if the proposition of higher interest rates is rejected and no effort is made to shorten maturities, there is still ample justification for improving over-all portfolio quality. f U. S. Governm ents Municipals Life Companies A development that appears to be gaining momentum and bears upon the problems of every investor is the activ ity of life insurance companies in a field to which they were only admitted last year. They may invest up to 3 per cent of assets in income producing properties and are proceeding to do so. The assets of the life companies (one exceeds eight billions) are so huge that 3 per cent is a much more potent sum than might immediately be thought. Ramifications of the new develop ment include the diversion of business from the investment banking field and, to that extent, mean a reduced supply of new corporates for ordinary invest ors. The life companies buy a prop erty from a retail chain organization, for example, and lease it back for a long term of years. The chain store company, of course, is thus supplied with additional w orking capital and, consequently, will not have recourse to commercial bank loans or to floating debentures on the investment market. Further, the life companies will net a larger return from these real prop erty operations than are afforded, with comparable safety, from investments. In turn, this will increase the supply of outstanding bonds, if the life com panies choose to sell, or reduce the demand by life companies for new is sues. In either case, the pressure is for lower prices for corporates. Another development of interest to investors is the fairly lively resur gence of railroad equipment obliga tions. These securities have one of the best records of any group of Am er ican corporate obligations if, indeed, they do not stand at the head of the list. Rail Equipment During the war, the purchase of much needed new rail equipment was necessarily deferred. In recent months, though, manufacturers of rolling stock have been in a position to accept new business and the railroads have to a great extent financed them with serial obligations specifically s e c u r e d by pledge of the rolling stock. Except in the blackest months of the deepest de pressions, rolling stock used on rail roads is always able to earn its keep. If a particular road finds itself over supplied and goes bankrupt, the rolling stock usually can be leased to another railroad. Since actual title to the equipment is normally vested in a trustee, there is no bar to such action. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 Public Utilities Industrials Railroads Canadians Preferred Stocks S alomon B ros. & Hutzler Members New York Stock Exchange Sixty W all Street New Y ork 5, N. Y. Private wires to BOSTON P H IL A D E L P H IA CLEVELAND NEW C H IC A G O HAVEN HARTFORD Investm ent Securities HAROLD E. WOOD & COMPANY First N ational Bank B u ild in g ST. P A U L 1 M IN N E SO TA STOCKS CORPORATE BONDS General Market Iowa Corporations Utility, Industrial and Railroad MUNICIPAL BONDS Iowa and General Market STANDARD & POOR'S SERVICE Statistical, Analytical, Advisory, Covering Listed and Unlisted Stocks and Bonds WNEELOCK & CUMMINS INCORPORATED Underwriters & Distributors 200 Equitable Bldg., Ph. 4-7159 Des Moines, Iowa A.T.T. DM 184 Northwestern Banker, March, Ì947 36 Investments Finally, rail equipments are always serial issues, which means that the holder can look forward to regular re payments, regardless of the general level of the corporate bond market. Frequently, the shorter maturities of new rail equipment issues are priced so high that they interest only the larger central reserve city banks, but the five to ten year maturities (which shorten a year annually, of course) are entirely suitable to banks outside the largest financial communities. One of the interesting minor angles of these securities is that the five to ten year maturities are, from the first year on, better secured than the early maturi ties. This is because the loan is lim ited to, say, 80 per cent of cost and is being steadily reduced by amortiza tion. Thus, at the end of five years, the total of the remaining outstanding certificates is no more than 40 per cent of the value of the pledged rolling stock if it is assumed that the original equipment had a useful life of 20 years. It is just, or almost as valuable when five years old as when new. So, at the start, the security is 125 per cent; but at the end of five years, it is 250 per cent. If the pledged roll ing stock is arbitrarily depreciated 20 per cent, the ratio of collateral to re maining indebtedness is still 2 for 1. Field Representative Appointment of Richard O. Weyrauch as a field representative in the investment department of First Na tional Bank of Minneapolis was an nounced by Henry Atwood, president. In his new position, Mr. W eyrauch will travel extensively throughout southern Minnesota and western W is consin and will specialize in municipal and government bond offerings and related matters. Mr. W eyrauch has been associated with First National Bank and the Ow e n p. McDer m o tt JAMES C. SHAW Sii aw, McDermott „ (Jo. INVESTMENT SECURITIES M UNICIPAL INDUSTRIAL RAILROAD PUBLIC UTILITY 914 Liberty Bldg. DES Phone 3-6119 MOINES 9, IOWA MUNICIPAL BONDS Iowa Illinois CORPORATION BONDS Public Utility Industrial R IC H A R D O. W E Y R A U C H R o a d f o r F ir s t N a t io n a l, M in n e a p o lis form er Minneapolis Trust Company since 1931. He served in the bank’s investment department from 1935 to 1943, and since then has been in the bank advisory division of the depart ment of banks and bankers. At the present time he is vice president of the First National Group Club, made up of employes of the bank and its affiliates in Minneapolis, Robbinsdale and Edina. Succeeding him in the First Nation al’s bank advisory division is Styrk S. Omlie, who joined the bank in 1933 and since 1940 has been a member of the investment research staff of First Service Corporation. Railroad R E P R E S E N T A T I V E M U N I C I P A L L I S T IN G S (C o m p ile d b y T h e N o r t h e r n T r u s t C o., C h ic a g o ) a s o f F e b r u a r y 25, 1947 Write for current list Birmingham, Alabama ..............1 % 4-1-63 2.00 Arkansas .....................................3J4 4-1-61 2.20 California ..................................... 1 2 - 1 - 6 4 1.25 East Bay Mun. Util. Dist., Spec. Dist. No. 1, California .1% 2-1-65 1.70 Los Angeles, Calif., H a rb or.. . .4% 10-1-66 2.00 Metro. Water Dist. of So. California ................................. 4 % 2-1-69 2.00 Connecticut ................................. 1J4 6-1-68 1.20 Baltimore, Maryland, S e w e r ...4 10-1-67 1.65 Boston, Massachusetts ..............4% 7-1-68 2.00 Detroit, Michigan ......................2 % 10-15-61 2.10 1.65 New Jersey ................................. 4 7 - 1 - 6 3 Newark, New Jersey................. 3 % 6-1-66 2.10 1-1-62 1.30 New York State........................... 4 New York City, N. Y ................. 2 V2 5-1-62 1.30 5-1-66 1.75 Cleveland, Ohio ......................... 4y 2 Philadelphia, Pennsylvania . . . l t 4 1-1-65 1.75 Providence, Rhode Island..........4 12-1-62 1.90 Houston, Texas ........................... 2 11-1-64 1.90 q u a il Davenport Bank Building & co. Davenport, Iowa Waterloo Office — Commercial Building M e m b er Chicago Stock Exchange Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis On Investm ents 37 In crea sed P roduction P ro m ote P ro sp erity Investment Bankers Tell What They Believe Is Necessary to Keep America Advancing Along the Road of Progress T O OBTAIN the views of financiers on the economic status of this coun try as we near what might be termed the end of the reconversion period follow ing the late war, The N orthwestern B anker asked these in vestment bankers the follow ing ques tion: “In your opinion, what major steps should be taken to insure continued prosperity in the United States?” Their replies read as follows: H. K. Farrar, Smith, Barney & Com pany, New York City: “Probably the most important step that could be taken to insure continued prosperity in this country would be a shift in national tax policy away from social objectives in the direction of econom ic objectives. “A nation is prosperous or unprosperous to the extent that it produces goods and services for its people. Pro duction in the modern mass produc tion econom y requires tools. The ad dition of tools requires savings. Sav ings must come out of income. To the extent that taxes penalize savings and interfere with the accretion of tools for production they are harmful in an economic sense no matter how de sirable in a social sense. “ The United States is and has been a great economic nation, not because of wealth of natural resources, not because of any inherent genius or superior intelligence of its people, but because of all the nations in the world it has gone farthest in building effi cient tools for production. The high level of corporation taxes and the con fiscatory taxes on high individual in comes have markedly reduced the flow of income into the kind of savings that add to the producing tools of the na tion. “W e have before us the prospect of the possibility of a decade or more of highly prosperous conditions in which the producing genius of the American people can be used as a fulcrum to raise the standard of living of the whole world. But if that is to take place the accent must be on produc tion, not on consumption, as the un fortunate social experiments of Russia and Great Britain too well attest. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prosperity results from the free func tioning of a national economy that en joys a state of health because all the parts are in balance. W e have come a long way toward restoring balance to our econom y in recent months, but a major distortion that remains is the heavy burden of taxation upon cor poration incomes and high individual THE UNITED STATES W ILL CONTINUE TO PROSPER WHEN — The Accent Is on Production and Not on Consumption. — Labor and Business Realize the Necessity of Reliance Upon Each Other. — We Continue to Work for Inter national Cooperation and Un derstanding. — Our Fiscal Policy Combines a Low Level of Federal Spending and Taxes Offer a Maximum Incentive to Investment and Business. incomes. To the extent that the social objective of equality of consumption may yield to the economic objective of production for profit, both economic and social objectives may be realized, because of the resultant contribution to the prosperity of the nation as well as the world.” ance and pension plans, and profitsharing mechanisms. “ Start now on a program of moder ate and periodic rent adjustments, that the transition to a free housing market will be accomplished without drastic dislocation. “ Eliminate racketeering a n d re stricted trade practices in the building industry. “ Encourage low cost and p refabri cated building. “ Cut cost of government by elimi nating inefficiency and discarding un essential functions. “Emphasize reduction of federal debt rather than tax cutting, although some decrease in taxes should be effected. “ Steadfastly continue to work for international cooperation and under standing. Continue the by-partisan support of our State Department in its firm attitude toward Russia. “ S t i m u l a t e international trade through further extension of recipro cal trade treaties, and through the extension of foreign credits, both gov ernmental and private, on sound, realistic bases. “Devote greater time in our educa tional systems to international rela tions. “ Distribute the benefits of technolog ical improvements through price re ductions. “Amend the regulations governing securities and the securities markets to make easier the flotation of new issues, thus promoting the develop ment of a broader capital market.” Aubrey G. Uanston, vice president, First Boston Corporation, New York City: Harold E. Wood, Harold E. Wood & Company, St. Paul, Minnesota: “ Granting that the current dollar “As one of the thousands of modest value of goods and services produced, business men who are not actively and the national income is a total participating in politics, but are vitally which should illustrate prosperity, I interested in the continued prosperity nevertheless hope that we are able to of this country, I am happy to give attain a fundamentally sounder econ you my opinion of what major steps omy in the future than that which should be taken to insure continued exists. Sound economy requires less prosperity in the United States. Here distortions in the over-all price struc ture, greater freedom from w orry over they are: “Amend present laws to effectuate shortages, undue labor demands, and free and equal treatment for labor and the fact that the debt management management. and fiscal policies may not measure “ Extend company-sponsored insur up to the necessary standards. Northwestern Banker, March, 1947 38 Investm ents “ The first requirement for a period of sustained prosperity is a fiscal pol icy which combines the lowest possible level of federal and other government expenditures to the end that debt may be retired in an amount appropriate to the concurrent business situation and that taxes (including their struc ture) may offer a maximum rather than a minimum incentive to capital investment and business executives. The prospects, for such a fiscal pro gram, are not too encouraging. “ The second requirement is that labor and business recognize the nec essary reliance of each upon the other. Capital and management cannot pro duce without a healthy, contented la bor force. Labor cannot achieve last ing gains, nor can it continue as a freely organized force, nor can the commonly-accepted degree of Ameri can individual freedoms continue—un less capital and business management are given the utmost encouragement. “W e have available all of the essen tial ingredients for a prolonged pros perity. Whether we succeed depends upon the exercise of unselfish disci pline, moderation, and common sense by the whole of the American people.” —The End. With Investors' Syndicate V. J. Green, football coach at Drake University in Des Moines for 14 years prior to his resignation last November 28th, has been named Central Iowa distributor of Investors’ Syndicate, in vestment firm of Minneapolis. Mr. Green will have his office in Des Moines, 424 Liberty Building. A teammate of Harold (Red) Grange, Mr. Green was graduated from Illinois in 1924. He came to Drake from Okla homa City University in 1933. Mr. Green’s district includes 22 coun ties in central Iowa. Assistant Vice President SPECIALIZING . . . in High-Grade MusuxUpxU feo+uHi SPARKS & CO. 528 Liberty Building Telephone 3-5154 DES MOINES. IO W A F H As SOON AVAILABLE Write for Information *7Ue N ation al Gamyuauf, o/JWa Masonic Temple Building, Des Moines 9, Iowa DON McMURRAY CHARLES YODER P R I E S T E R & CO Eighth Floor Davenport Bank Building DAVENPORT. IO W A Listed and Unlisted Securities H. E. Jacobs H. C. Priester H. M. Sweet Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Edward T. Hetzler has been elected an assistant vice president by the board of directors of Bankers Trust Company, it was announced by S. Sloan Colt, president of the bank. Mr. Hetzler, who is a member of the advertising and public relations de partment, began his career with Bank ers Trust Company in 1923. He was elected assistant treasurer in 1928. He was graduated from Yale Univer sity in 1923. Iowa Bond Purchases Investments in United States sav ings bonds by Iowa purchasers during 1946, as compared with redemptions, reflected even a brighter picture when the Federal Reserve Bank of Chicago released figures on the sales of series E, F and G bonds and the redemptions of series A through E redemptions for the year. Roger F. Warin, state director of the savings bond division of the treasury department, announced that a total of $207,900,217 was invested in E, F and G bonds during 1946, and total redemp tions, including bonds which have ma tured, were $105,411,675. Sales of bonds were 197.23 per cent o f redemp tions. “ These figures appear not to present a true picture of sales and redemptions, since we do not have cash-in statistics for series F and G bonds,” Warin said. “ However, the Federal Reserve Bank doesn’t believe there are enough re demptions of the F and G bonds to justify the expense of tabulating them. “ Another point to remember,” W arin said, “is that the sales figures are for 1946 only, while the redemptions cover all savings bonds sold since 1935.” Iowa county led the state in sales of E, F and G bonds as compared with A-E redemptions, with 392.26. Other leaders, all of them going over the 300 per cent mark, were Adair, W inne shiek, Plymouth and Washington, in the order named. W arin pointed out that at the end of the first six months of 1946, Iowa showed sales 175 per Investm ents cent of cash-ins, and at that time W in neshiek topped all other counties with 359.87 per cent. “ Most encouraging phase of these comparative figures,” W arin contin ued, “ is the statewide interest in buy ing and holding United States savings bonds. More than half of the counties in Iowa recorded sales of more than 200 per cent of redemptions, and not one county had a sales record of less than 100 per cent of cash-ins.” 39 toirn investm ent Hankers Saturday Closing The board of directors of the Chase National Bank has authorized yearround Saturday closing of its head office and branches in New York City, commencing on Saturday, April 5th, in accordance with the permissive pro visions of the amended New York State law signed by Governor Dewey. Income Larger Gross income of the Burroughs Adding Machine Company in 1946 was larger than in any prewar year and amounted to $46,521,239 as compared with $38,193,284 in 1945, according to a report issued by John S. Coleman, president of the company: Net earnings for the year were $1,992,149 or 4 per cent of the total in come from sales and equivalent to 39 cents per share of capital stock, Mr. Coleman said, as compared with $1,259,051 or 3 per cent of total income and 25 cents per share in 1945. Burroughs gross income during 1946 grew steadily throughout the year INVESTMENT SECURITIES PICTURED above are the new officers of the Iowa Investment Bankers Associ ation, elected at the 1947 annual meeting of the organization held in Des Moines. From left to right they are: Carl Stutz, president, secretary The White Phillips Company, Davenport; Harry Graefe, first vice president, president Graefe & Company, Des Moines; L. H. Ryan, second vice president, Iowa representative William Blair & Company, Ottumwa; and Sherman W. Fowler, secretary and treasurer, assistant vice president Iowa-Des Moines National Bank & Trust Company, Des Moines. Elected to the board of governors of the Iowa Investment Bankers Association for a three-year term were Thomas L. Crabbe, president Thomas L. Crabbe & Company, Cedar Rapids; Walter E. Vieth, Vieth, Duncan & Wood, Davenport; Harry Graefe, Des Moines; and Sherman Fowler, Des Moines. Including several investment bankers from Chicago, about 70 attended the annual meeting. from $10,139,984 in the first quarter to $13,443,008 in the fourth quarter— an increase of 32 per cent. Second quarter gross income amounted to $10,973,784 and third quarter, to $11,684,202. Dividends of $2,747,300 or 55 cents per share were paid in 1946. I N V E S T M S E C U R E N T I T I E S 1. Government bond*, all issues QUALIFIED FOR BANKS INDIVIDUALS Underwriters — Distributors Dealers 901 Merchants Building Cedar Rapids, Iowa 20 years exp erien ce https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to members of the Io w a B a n k e r s A s s o c ia tio n .A. from and T h o m as L . C ra b b e & C o . GREETINGS 3. Listed and local stocks ▼ ★ Over 2. Municipal and corporate bonds Johnnie Is Smart Johnnie was four. W illie was the baby. Mother wanted to give W illie the last banana. As a clinching argu ment she said, “ Think how many ba nanas you had before baby was born.” “Yes, but think how many he will have after I am dead.” M . W it t e n s t e in & C o . Dealers in r S e c u r itie s of THE NATIONAL COMPANY Io w a C o rp o ra tio n s a n d OF OMAHA G e n e r a l In v e stm e n ts. 500 First National Bank Bldg. Members Chicago Stock Exchange Southern Surety Bldg. Des Moines 9, Iowa Northwestern Banker, March, 1947 40 Investm ents W o rk ers N eed a MERICAN business and indus trial management is not doing effective w ork in educating its own personnel in the economic foun dations that underlie the American way of life, Merrill Lynch, Pierce, Fen ner & Beane, national investment firm, warns in its seventh annual report made public by W inthrop H. Smith, managing partner. “ Too few organizations have given their workers a tangible stake in the success of the business or made them feel individually important,” Charles A E. Merrill, directing partner, states in a signed foreword. “W ith the present experience of England and France be fore us, it is tragic that business in America has accomplished so little in this respect.” Mr. Merrill cautioned, “ If America is not to go the way of much of Europe, the mass of the people must realize their economic stake in our present system, must find in it the opportunity and emotional outlet that people abroad think they see in the socialist state. The perils we face "StinB usin from ignorance and misunderstanding can be more serious than those we faced in war.” Discussing the security markets of 1946, the Merrill Lynch Report said of the increased speculative activity early in the year, “ Too many people, ignoring our slogan ‘investigate then invest,’ were inspired by rising prices to ‘take a flyer’ in the market. In the early autumn many investors became apprehensive lest mounting l a b o r strife and higher prices tumble our house upon us. The inevitable reac tion forced security prices down. “ W e believe wholeheartedly,” the re port says, “ that the interest of the investor— the man holding securities for income— must always be our pri mary concern. Risk is, of course, in herent in investment. For this reason we believe that our tax laws, particu larly those applying to capital gains, should encourage rather than discour age investment. Capital needs incen tive to pioneer and w ork just as surely as do individual men. W e do not ap prove, however, nor will we join in any effort to encourage a return to unbridled speculation in securities.” The report praised the effort being made by James J. Caffrey, chairman of the Securities and Exchange Com mission, to simplify and define existing rules and regulations governing the issuing and trading in securities. “ One of the major objectives o f our firm is to take the mystery out of finance,” the Merrill Lynch Report said. “ W e hope we can help Mr. Caffrey in his similar endeavor.” Anniversaries W alter H. Pauge, purchasing agent, and J. L. Dunkley, credit department. Union Bank and Trust Company, of Los Angeles, are celebrating their twentieth anniversaries with that in stitution, while Lucile Snyder, senior note collection teller, is celebrating her tenth anniversary. Pauge and Dunkley both entered the employ of the bank in the spring of 1927. Miss Snyder, a native of Canada, be came associated with the bank in the spring of 1937 as utility stenographer and notary public, later being pro moted to her present position. Sure Cure “ How can you cure someone of snor ing?” “ Easy. By good advice, cooperation, kindness and stuffing an old sock in his mouth.” Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis investments The M o rtg a g e Finaneing Outlook By JOHN H. FAHEY Federal H o m e Loan Bank Adm inistration TH IN K present interest rates on home mortgages are likely to hold during 1947. There are proposals for reductions on some types of private rental housing loans. I doubt very seriously the advisability of cutting such rates. They could easily have the effect of alarming executives of lending institutions and restricting the amount of money which would be made available. Interest rates on long-term amor tized home mortgages, in my opinion, are now too low to be safe. Manage ment of unquestioned ability and integ rity is vital to the soundness and suc cess of our savings institutions. The vast majority of them are managed by men of character who know their business and who recognize their trus tee responsibility for the protection and conscientious management of oth er people’s money. These executives are fairly well compensated in most cases. There are far too many savings institutions of average size, however, which do not have enough income from their mortgages at present rates. They cannot command the services of the kind of men they need, provide necessary reserves to cover inevitable losses, and also pay a reasonable re turn to the millions of small savers who furnish the great bulk of the money which builds our homes. Men and wom en who save a few dollars at a time are the owners of nearly all our savings institutions, and they are not today receiving the consideration and encouragement they should have. In response to public sentiment, Congress fixed a mortgage rate of 4 per cent on homes for veterans, with a complete guarantee by the Veterans Administration against loss to the lend ing institution. The law reflected the intent of the people of the United States to favor the veteran as com pared with other borrowers and to do everything practicable to enable him to secure a worthwhile home. W e cannot disregard the fact, however, that in too many cases lending insti tutions have relied entirely on the V e t e r a n s Administration guarantee and have not adequately protected either the veteran or the public inter est. Overlending has unquestionably stimulated real estate speculation and an inflationary market. In my opinion it is unsafe and un wise to establish interest rates on long term amortized mortgages for home owners generally below 5 per cent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis As a result of the complete change of the home mortgage pattern in this country since 1933, influenced by the Home Owners’ Loan Corporation long er-term loan with a flat 5 per cent in- 41 terest rate, and the Federal Housing Administration insurance plan, the in terest cost on home mortgages to the average family has been nearly cut in half. Second and third mortgages with their extreme rates have been practically wiped out. The resulting annual savings to home owners totals hundreds of millions of dollars. As yet there has been no saving to the home purchaser in any other direction. SE R V IC E Municipal and General Bonds M aintaining an intimate, personalized correspondent bank service. E X P E R IE N C E Officials with years of serv ice in this field, assuring a knowledge of requirements and valuable assistance. P O L IC Y To cooperate with out-oftown banks rather than compete for business which is rightfully theirs. Specialists iri Nebraska Municipals GREENWAY & CO. Farnam Bldg. OMAHA, NEBRASKA MUNICIPAL BONDS (Iowa and Illinois) COUNTY CITY SCHOOL REVENUE THE WHITE-PHILLIPS CO ., INC. First National Bldg. Davenport, Iowa First National Bank Bldg. Chicago, Illinois N orthw estern B a n ker, M arch, 1947 42 \ yOUR G. I. LOAN QUESTION BOX (Continued from page 21) O F C O U R SE Y O U CAN LOAN M ORE M O N EY S A F E L Y ! Lawrence Field W areh ou se R eceipts provide a safe, sure way to expan d your loan opportunities .. .Third-party control of collateral means safety. Back of Lawrence Field Warehouse Receipts are the financial in tegrity, know-how and 33 years experi ence of Lawrence Warehouse Company. For 33 years we have been helping banks and lending agencies expand their loan opportunities. By providing a way to use idle dollars in inventories, we are contributing to the expansion and success of many enterprises. Banks and lending agencies are growing with them. SAFE ...Seldom do we encounter an inventory which, because of inherent peculiarities, cannot be handled. While every field warehouse is different, the principle of field warehousing remains the same. That’s why you can safely recommend field warehousing in con nection with any business seeking credit expansion."You can avoid saying " n o !” with Lawrence Field Warehousing. SURE NATIONWIDE W e are prepared to advise loan officers contemplating inventory financing as an extension of their services. Send for your copy of this booklet. P h o n e or wr ite o u r b r a n c h in y o u r terri to ry FIELD DIVISION WAREHOUSING OFFICES: SA N F R A N C IS C O I I , C A L IF . 37 Drum m S tre e t C H I C A G O 2, IL L . I N . L a S a lle S tree t N E W Y O R K 5, N .Y . 72 W a ll S tree t D enver 2, C o lo . First N a t. Bank B ld g . S t. Louis 2, M o. B o atm en's Bank B ld g . Kansas C ity 7, M o. 933 M u lb e rry Stre e t Los A n g e le s • Boston < P h ila d e lp h ia • B uffalo • C le v e la n d Richm ond • C h a rlo tte A tla n ta • C h a tta n o o g a New O rle a n s • Houston Ja c k s o n v ille • O rla n d o • C in c in n a ti D a lla s • S e a ttle • P o rtla n d , O rego n Fresno • W a sh in g to n , D. C . Stockton N orth w estern B a n ker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M arch, 1947 quired to give notice to the administra tor on any default which remains uncured for as long as six months, or on an extended loan, for as long as two months. A claim may be filed at. any time after the default has con tinued uncured for a period of three months, and at that time you may give notice of your intention to foreclose. Such notice should be in writing, and delivered by registered mail to the loan guarantee office. After giving no tice you are to wait 30 days before tak ing any action which would terminate the debtor’s rights in the security, ex cept upon express waiver by the ad ministrator. However, prompt action may be taken where the property has been abandoned or is otherwise sub jected to extraordinary waste or haz ard, and our mutual interests are in jeopardy. W hen immediate action is taken because the debtor has trans ferred or abandoned the property, or otherwise subjected it to extraordinary waste or hazard, or where the appoint ment of a receiver is justified, and no tice is not given in advance to the administrator, then notice of such ac tion must be given by registered mail to him within 10 days thereafter on Form 1874, or by a letter explaining the situation. Third. If the holder does not com mence action as prescribed above, the administrator, upon receiving informa tion of a default, may request the hold er to begin action. Failure of the holder to begin this action gives the administrator right to begin and pros ecute to completion any action or pro ceedings in his name, or in the name of the holder. The costs and expenses will be advanced and paid for by the administrator and charged, including a reasonable amount for legal services, against the guaranteed or insured in debtedness or the proceeds of the sale of the security, to the same extent that the holder would without the con sent of the administrator. The admin istrator may require the holder to transfer and assign the loan and se curity to the administrator upon re ceipt of full payment of the balance due to the date of such assignment. Failure of the holder to com ply with the request would result in loss of guaranty or insurance of such loan. Fourth. As to the effect of Sec. 36: 4320 of the regulations which provides that administrator upon receipt of no tice of sale may have the property appraised and require lender to credit a certain amount upon the indebted ness on account of sale, this is to pro- 43 tect the administrator. After payment of the guaranty by the administrator, unless the lender wishes to acquire the property at a price in excess of the balance due, it would not be necessary for him to bid more than the balance due at the foreclosure sale to protect his interests, but what of the admin istrator’s interest? He also has his guaranty at stake and hopes to recover all or part of it. Let us assume that the debt were reduced from $6,000 to $3,000 as the result of the payment of the guaranty, and that the market value of the property is now $5,000. If only $3,000 were bid by the lender a third party bidder could conceivably buy it for $3,001 thus paying the lender in full to be sure, but leaving only $1.00 available to the government as a re fund of its $3,000 outlay on the guar anty. The administrator can protect his interest, at least to the extent of the value of the property in this case, by requiring a $5,000 credit to the in debtedness on account of the sale. This induces participation in competi tive bidding by the lender and pre cludes the sale to a third party bidder for less than the fixed amount. If the property is sold for more than $5,000, the lender credits the account with the net proceeds of the sale and remits to the administrator all in excess of his net debt. Should the lender acquire the property at the sale he has two alternatives, (1) remit $2,000 to the administrator and keep the property, or (2) accept $3,000 from the admin istrator and convey the property to him. If the first alternative is chosen, the lender will own the property at its estimated market value, and the ad ministrator has lost $1,000 on his guar anty. The $2,000 refund to the admin istrator is the difference between the amount fixed for the accounting, $5,000, and the net indebtedness, $3,000. If the second alternative is used, the administrator acquires the property for $6,000, $3,000 of which was paid under the guaranty, and the other $3,000 pays off the balance of the in debtedness. The loan has been made whole, and the administrator will still lose $1,000 if the property is subse quently sold at its estimated market value of $5,000. This “upset price” or “ stop loss” as fixed by the administra tor, based upon appraised market value, fixes a basis for settlement.— The End. FOCAL POINT MM lor Co-ordinated Regional This outstanding bank — established in 1853 — serves as Milwaukee de pository for over 85 per cent of all the banks in Wisconsin! 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. i Bankers as well as business executives are invited to write for further information. FIRST WISCONSIN NATIONAL BANK o f M ilw a u kee Well Trained Woman resident in China, to her house boy: “You should knock before bringing m y linen into the bedroom .” House boy replies: “ That’s all right, Missy. Every time come, lookee through keyhole. No dressed, no come in.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ME MBER OF THE FEDERAL DEPOSIT I NSURANCE CORPORATION Northwestern Banker, March, 1947 44 New Tifgte W indow To promote the bank’s commercial loan services, a large factory, built to scale, is shown, complete in every de tail. Appropriate third-dimension copy panels set forth the services succinct ly. Another such diorama is devoted to copy only, and highlights the com pleteness of the bank’s services and facilities. Special lighting effects give added interest to all the windows. The three-dimensional structures are of large proportions, but are portable and can be moved about and installed in the windows of any of the bank’s 26 offices in the Greater New York area. W HAT THEY SAID AT THE CONFERENCE (Continued from page 18) quaint the farmers of the future at their impressionable time of life with the kind of services banks render to agriculture, and establish relationships that will last through the years.” Two types of window display employed by the P u b l i c National Bank, New York City. ‘ AGRICULTURAL O U TLO O K" DR. EARL L. BUTZ Head of Agricultural Economics Purdue University P EDESTRIANS passing the Broad way office of The Public National Bank and Trust Company of New York at Broadway and Twenty-fourth Street, are manifesting unusual interest in the striking new window displays the bank is using for promotion. All of the spacious windows on the Broadway frontage of the building are devoted entirely to the new and un usual displays, which are dramatic and picturesque diorama or third-di mensional structures. The illustrative subjects are not drawings or photographs, but are ac tual scale models of the various sub jects employed, giving the displays depth and pronounced realism. form banking . . . INCLUDING remittances to all parts of the world, foreign letters of credit, foreign collections, and foreign travel ar rangements . . . PLUS the knowledge and counsel of our Foreign Division . . . are offered here for your use in serving your customers. C e n t r a l .Na t i o n a l B a n k IN CHICAGO C. F. K U EH N LE, P r e s id e n t S e n i o r V i c e -P r e s i d e n t s J. Ross Humphreys Gus L. Nelson C O R R E SPO N D E N T BAN K D IV IS IO N Harold H. Stout V i c e -P r e s i d e n t s Alfred O. Clave M em ber F ederal Arthur A. Ellerd D e p o sit In su ra n ce Northwestern Banker, March, 7947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C orp. M em ber Earl H. Sollenbarger Federal R eserve S ystem . “ Prices of U. S. farm products, on the average, have probably passed their postwar peak and may be ex pected to w ork moderately lower dur ing the com ing year. “ The high point came last October, follow ing the relaxation of price con trols, when the U. S. farm-price index stood at 257 per cent of the 1935-39 average. The farm-price index has declined about 20 points since the Octo ber high. “Farm product prices will fluctuate around their present levels during the first part of 1947, but may be expected to decline some in the latter part of the year. This will be especially true if 1947 is another year of large crop pro duction. The expected decline in the latter part of 1947 will be neither as rapid nor as drastic as that which oc curred in 1920; it will be more in the nature of a cost-price realignment than a recession. “ The general level of prices in the United States, other than farm prices, may continue to rise slightly through the first few months of 1947 and will be followed by an adjustment which will carry prices back to about their 1945 levels (not prewar). This price re action will come when the volum e of civilian production begins to catch up with effective civilian demand, and when the flow of relief supplies to Europe begins to subside. If we can get through the period of price adjustment in late 1947 and early 1948 without surrendering our system 45 of free enterprise for a complicated system of government price supports, the period predicted above should be followed by a long spell of relative prosperity. The price level will re main relatively high (1945 level) for at least a decade—perhaps longer. This will be an era of relatively good busi ness and satisfactory rewards for effi cient management. Farming will be profitable on economic-sized unit farms which are not burdened with excessive fixed charges.” "PERSONAL LOANS" RICHARD W. TREFZ President Beatrice State Bank Beatrice, Nebraska “ Quacks a n d pseudo-leader-econo mists are working day and night trying to change the economic pattern that has made this nation the wonderland of the world. One of the first targets for attack will be the banking system. “ W e have one effective counter weapon: carrying our services to the greatest number of people; making our banks truly an effective force in the struggle for the survival of our capitalistic system by making it pos sible for every honest, deserving man and woman to become a capitalist ac cording to every one’s limitations. Are we going to rely on our strengthened capital structure or relatively high liquidity as a last weapon of defense? No! Our one and only defense is the moral obligation implied by the char ter granted by a sovereign people, to serve the greatest number to the best of our ability; honestly, fairly, and efficiently. Let our future be guarded, not by a dusty, musty roll of parch ment, but by the recognition of our continued contribution to the pulse beat of our nation’s economy. “ The personal loan efficiently and cordially extended to the millions of our people will be one of the surest means of entrenching the chartered banks in the hearts of our people; it will assure the continuity of the titanic task assigned to the thousands of small banks to remain a workshop of creative activity, one of the strongest links in the chain of the Republic.” "SM ALL BUSINESS" ROBERT M. HANES Past President American Bankers Association “ Several years ago the dreamers told us that we would not make loans to business, especially small business. Now that we have demonstrated that we are making these loans by the fig ure facts of the case, they are hinting that we might be granting too many loans—that we are inflating the econ omy. I deny that charge. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46 “W e have continuously stated that our program did not mean unsound lending procedures or the making of poor grade loans. It did and does mean that every loan presented to a bank will be scrutinized by the bank officer with the real determination to exhaust every means of making the loan sound and bankable before de clining it. “W e must merchandise credit just as any other business merchandises its wares. Loans must be made to fit par ticular needs. Every application for credit from small business, as well as large business, is different in some respect. Our job is to give the small business man the kind of credit he needs. IN C R EA SE YOUR “Banks can be both aggressive and sound. Today there is a growing de mand for bank credit on a more diver sified scale, and logically it is expected that modern banking will provide such service to deserving people. This em phasizes the need for banks to explore ways and means of making a greater variety of credit applications bankable. “ W e are now in a period of new competition, new products, new mar kets, new customers, new merchandis ing methods, new packaging and dis play ideas, and new lending require ments. It is an obligation of banking to invite small business men to discuss their financial needs and to give them the benefit of sound advice when a loan is not the solution to their problem. THE SCOPE CUSTOM ER OF SER V IC E As a correspondent of The Northern Trust Company you will be able to offer your cus tomers a greatly expanded service in many re spects. You can share in our credit information and benefit from our fact-finding facilities. In some instances we can participate in loans to your customers. I f you have no foreign depart ment we can often be of valuable assistance. Our Bond Department is always ready to be helpful in giving quotations and in the pur chase and sale of United States Government, State and Municipal bonds. In fact, whatever your needs may be, as a correspondent of this bank you are assured the cooperation of all our departments. We cordially invite your inquiry regarding the benefits of a connection here. THE N O R T H ER N TRUST COMPANY 50 SOUTH LA SALLE STRE ET, CHICAGO 90. ILLINOIS Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Small business should be assured that banks are ready and anxious to do their share in helping to solve their business and financial problems.” "CREDIT INFORM ATION" WARREN GARST Cashier Home State Bank Jefferson, Iowa “ In our credit information we need a comparative statement that will give us and our borrow ing customers as well a better idea as to the net progress they are making. W e have found that some farmers make a decent profit, pay a fair income tax, and think they are doing well. They proceed to spend all their surplus. One thing we need to watch is to see that farmers value their property, both real and personal, at similar values from year to year. “ W hy should country bank credit files be improved? What is the benefit to the bank? A good credit file gives you more than ‘dollar and cents’ infor mation. Your farm customer wants to borrow $500 today; but if you sit down with him and figure out his needs, as many bankers are now doing, you may find that he will need to borrow $1,200 to get through the season. A good credit file will be of real help on that point. The part of the file that gives you this information also tells you what sort of a farmer your friend is. Is he using fertilizer? His budget should show that item if he is not, and it should tell something about his crop ability and his farm program. Does he use adequate amounts of com mer cial feeds? The budget figures tell that story also. A credit file that shows the acreage of the various crops which he will raise this year tells you if he is planning high-profit crops or if he is drifting along on old-time hab its. “ In all files there should be a com parative statement. Some banks which do not have a comparative statement say that they do not want any extra work. From six years’ experience we find that it takes about ten minutes a year per customer and it gives us, and our customer, too, a better idea as to the progress he is making. “ In all credit files there should be a comment sheet. Many of us know de tails about our farm customers and let it go at that. There is no use kidding ourselves; this comment or history sheet is the hardest thing to get done. In one bank, the girl w ho posts the notes polices the history sheet. The bank examiner told me that when they examine the bank, they get all the information they need from the credit file and almost never have to ask the bank officer to go over the lines of credit.” 47 Today the functions of a city corre spondent are almost as broad as com mercial banking itself. In other words, the small country bank with the aid of its city correspondent can render to its customers practically every type of banking service which the large met ropolitan institution makes available to its customers. “ By v o l u n t a r y cooperation we achieve that efficiency for the system TAKES TO TELEVISION as a whole which is attained under the more highly centralized systems of other countries either by legislative act or executive order. Every bank— large, medium or small—has a tre mendous stake in preserving and en larging correspondent banking— this tie that binds banks together— this vol untary force which molds us into a banking system. It is the American substitute for nationwide branch bank- Winthrop H. Smith, (left), man aging partner of Merrill Lynch, Pierce, Fenner & Beane, Wall Street’s largest investment firm, signs contract with Frank Stanton, (right), president of the Columbia Broadcasting System, for the first television show sponsored by a finan cial house. The broadcast over WCBS-TV in New York City fea tured “ Money at W ork,” a new film produced under the auspices of the New York Stock Exchange for use in its educational program. Mr. Smith personally introduced the film, which detailed the operations of the Stock Exchange and ex plained its role in our economy. "W ORKING TOGETHER" w. a . Mc Do n n e l l Vice President Mercantile-Commerce Bank St. Louis “ In the early days of American bank ing the correspondent relationship originated with the need of small banks for safe depositories, domestic exchange and note redemption facili ties. Later, the city banks, principally those in New York City, began to ex tend seasonal credit to the smaller banks against a pledge of notes, gen erally for the purpose of financing the movement of agricultural crops. Still later, when the check largely displaced currency as a medium of exchange, the function of check clearance was added to the expanding list of services which made up correspondent banking. “ Correspondent banking—this w ork ing together of large and small banks — has withstood every change in its status and threat to its existence, and down through the years has been con tinually strengthened and expanded. Did you know that our Cash Letter Policy not only gives protection but enables you to cut operat ing expenses substantially? Ask us fo r details. You will not obligate yourself. F IR S T N A T IO N A L B A N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U IL D IN G • C H IC A G O Scarborough & Company Insurance Counselors 3, IL L IN O IS • STATE 4325 Northwestern Banker, March, 1947 48 ing. It is the American answer to nationalization of banking. It is a vital part of the American democratic system of free enterprise. Let us guard it jealously.” "OUTSIDE FARM PROGRAM" M. C. TOWNSEND Vice President Fremont National Bank Fremont, Nebraska “ What needs to go into an outside agricultural program? Well, several things: “ W e need sufficient information about farms in our respective commu nities— about their productive ability, about the farmers who farm the land, something about their farming opera tions and management systems. “W e need adequate financial state ments for farm borrowers. “W e need up-to-date credit files on our farm customers which will tell at a glance whether or not they are good or bad risks. “W e need more personal farm-tofarm visits to our customers. I read somewhere that it was not the shine on your trouser seat but the worn places on your Shoes that counted in farm contacts. I believe it is true, because there is no doubt but that observations made by a trained man "PUBLIC RELATIONS" 1892 — 1947 FIELD WAREHOUSE RECEIPTS By WILLIAM H. BANKS WAREHOUSES, INC. REDUCE ELEMENT OF RISK in connection with your INVENTORY LOANS. Our staff of experts available and shall be pleased to discuss all questions in conection with this type of loan. Please write, or telephone, our offices for information. OFFICES: 209 S. La Salle Street, Chicago, Illinois Telephones: STAte 0204-0205 E f f e c t iv e e o - o r d in a t io n of all departments assures rapid, efficient han dling of every type of banking transaction. You are invited to use any or all o f our facilities. C it y N a t io n a l B a n k A N II T R U S T C O M P A N Y o f C h ic a g o 208 SOUTH LA S A L L E STREET ( M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P .) Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis on a farm are far more accurate than the financial statement resting in the president’s desk. It is desirable to have both, but many times observa tions on farm management can be made, only accurately, right out on the ground. Then, too, farm visits break down the indifference that many farm ers have toward their bankers, and that indifference is understandable. If a representative of his local bank gets out and visits a customer on his own land and gets a little mud on his shoe and talks over mutual problems, a strong personal relationship is built up which will mean the difference be tween getting or not getting the busi ness—and in addition accurately judg ing the reliability of the customer.” C. W. GREEN Director Public Relations Council American Bankers Association “ Country bankers are in an excellent position to bring about a better under standing between banks and the public because they serve more than half of the people of the nation. The million retail merchants located along the small town Main Streets who handle 40 per cent of the national retail sales of the country are mighty important customers of the small bank. “ The last census shows that onethird of all manufacturing plants are located in Main Street communities, and to their banking needs can be added those of more than half of the factory workers. So it is apparent that the country bankers and their custom ers represent the backbone of the nation. “ Practically every one of America’s banks is located in the middle o f the community which it serves. It sits at the hub of the town, and like a wheel around its hub, the economic life of the town likewise revolves around the bank. Through deposits, drafts, dis counts, mortgages, loans, and currency exchange, the bank is connected to vir tually every enterprise on Main Street and down the side streets. “At least half of the families in town have a checking account or savings account in the bank. So likewise does the W om an’s Club, the Boy Scout troop, the Congregational Church, the post office, the Rotary Club, and so on down through the social and economic web of the community. Suddenly to pull out the bank from its hub position would virtually uproot the whole struc ture. No wonder John Doe takes it for granted that the H ometown Na tional Bank ‘belongs’ to Hometown. “And what an opportunity is thus offered to the bank to cement its right ful place in the community. There is 49 The Main London Office, shown at left, is located at 32 Lombard Street— a thor oughfare famous for its centuries-old as sociation with British and international finance. Below— Big Ben and the Houses of Parliament. Our Main London Office reaches tlie H a lf Century mark Established in March, 1897, as one of the earliest with intimate knowledge of European conditions and branches of any American bank in Europe, our Main enjoying long-established relationships with impor London Office has provided uninterrupted service tant European banking and business organizations. throughout a period witnessing the strains and dislo cations of two W orld Wars. Other branches, in Eng T o our correspondents in the L n ited States the services o f these branches are o f special land and on the Continent, are our London branch in * Bush House, and our branches in Paris and Brussels. value in connection with foreign trade financ These branches afford to American banks, com travel, and for first-hand information on condi panies, and travelers and residents abroad, the fa tions abroad. W e welcome inquiries regarding cilities of American banks with American methods, any phase o f our service. ing, service to their officers and customers who Guaranty Trust Company o f New Y ork 1 4 0 Broadway, New Y o rk 15 Fifth A v e . at 44th St. M adison A v e. at 60th St. 40 Rockefeller Plaza New York 18 New York 21 New York 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LONDON 32 Lombard St., E.C. 3 Bush House, W.C. 2 PARIS 4 Place de La Concorde BRUSSELS 27 Avenue des Arts Member Federal Deposit Insurance Corporation Northwestern Banker, March, 1947 50 Financial Statement of IO W A ’S LA HO EST CASUALTY INSURANCE AND BOA III NG CONI PAN Y A s o f D ecem b er 3 1 , 1 9 4 6 OFFICERS J. W . G u n n President-Treasurer John F. Hynes Vice Pres.-Secretary DIRECTORS O r. D. E. Baughm an Fort Dodge, Iowa W H. B r e n ton Pres., Brenton Bros. Des Moines H.. L. ASSETS United States Government B onds*. . . $ 6,395,064.81 Other State and Municipal B onds*. .. 1,539,028.82 No bonds owned by the Company have ever been in default either as to interest or principal. Real Estate— Home Office B u ild in g ... Cash in B anks......................................... Real Estate M ortgages— F H A .......... Stocks & Federal Savings Certificates Premiums Receivable— Not past due. . Current Balances and Policyholders. H je rm sta d Pres., Citizens Fund Fire Insurance Co. Red Wing, Minn. Interest Accrued ................................... 29,719.55 K oh rs Pres., Kohrs Packing Company, Davenport, Iowa C a rl Agents TOTAL ADM ITTED A S S E T S . . . $10,955,029.57 D r. L . E . K e lle y Physician & Surgeon Des Moines F ra n k due from 117,992.80 1,346,376.34 149,391.32 56,770.00 1,320,685.93 M u e lh a u p t Secy., Central Service Company, Des Moines, Iowa A m o s C. P e a rsa ll General Manager, Pittsburgh-Des Moines Steel Company, Des Moines, Iowa W . Z. P r o c te r Attorney at Law Des Moines, Iowa R E S E R V E S Reserve for Claim s.................................$ 4,492,995.42 Funds set aside to fully pay all in curred and expected losses. Reserve for Unearned Premiums. . . . Funds set aside to return to every policyholder the unearned premium in event o f cancellation. Reserve for Taxes— State and Federal All Other Reserves................................. R . W . W e it z TOTAL LIABILITIES Contractor Des Moines, Iowa Supt. of Agents Des Moines 302,243.49 584,956.18 Included in this Reserve is a suf ficient amount to pay earned divi dends on all participating policies. H. W . Read Secy., Iowa Valve Company Oskaloosa, Iowa M . J. W ilk in s o n 3,450,926.06 ................ $ 8,831,121.15 Contingencies.................. 300,000.00 SURPLUS over A LL Liabilities........ 1,823,908.42 Reserve for R. W . W o o d Physician & Surgeon Newton, Iowa $10,955,029.57 ‘ Amortized Values. E m p loyers M utim i Casually Company » es M O IN E S Autom obile, Plate Glass, W orkm en’s Compensation Public Liability Insurance Fidelity and Surety Bonds Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis probably no other single type of busi ness which enjoys such an array of natural opportunities to serve the pub lic or to enjoy better relations with the public, because there are no other enterprises whose services affect so much of John Doe’s daily life. “ Obviously, banking must do two very important things in the immedi ate future: (1) expand its services to be helpful to more people, and (2) tell more people of the services that banks have to offer.”— The End. Vice President Retires Guy C. Philips, vice president of Mississippi Valley Trust Company, St. Louis, and a banker for 44 years, re tired last month. Born in Arkansas, Mr. Philips be came associated with Mississippi Val ley in 1917, as the bank’s representa tive in that state. On February 11, 1920, he was elected a vice president of the trust company, where he has specialized in the handling of oil loans. Prior to com ing to St. Louis, Mr. Philips was active in Arkansas bank ing. From 1909 to 1914 he was cashier of the Citizen’s Bank o f Fayetteville, and from 1914 to 1917 served as an Arkansas state bank examiner. New Chase Officers Edward J. Donahue, W illiam S. Du Bois, Nicholas J. Murphy and Carl W. W eis have been made vice presi dents of The Chase National Bank. Clement A. Bramley, Jr., Francis X. Driscoll, W illiam Hannewald, Howard R. Mears, Jr., Frederic G. Norton, W il liam R. Reddington and Victor E. Rockhill were promoted to second vice presidents of the bank. Churchill Humbled This is a story they tell on W inston Churchilk It seems that when Church ill was Prime Minister, he took a taxi to one of his broadcasts and asked the taxi man to wait. “ I’m sorry,” said the cabby, “ I can’t wait for you. I’ve got to get back to the cab stand. Mr. Churchill is going to speak and there’s a radio there.” Churchill beamed. “ Do you think highly of Churchill?” he asked the cabby. “ Oh, yes, sir,” the cabby replied, “ I think he is the greatest man in the world today.” This pleased Churchill so much that he handed the driver a five-pound note. The cabby looked at the money, then back at the Prime Minister. He low ered his voice to a whisper. “ Listen,” he said, “ to hell with Churchill— I ’ll wait for you !” 51 IXSURAXCK The C ou n try H anker Can tie a Hood d i e Salesm an He Knows Everyone in His Community, and Is Familiar With Their Financial Affairs By GEORGE I. BEASING Guarantee M utual Life Ins. Co. O m aha N MOST of the midwestern “ country” towns of 2,500 or less people, the banker usually plays a leading role in the economic lives of the individ uals, not only of the town in which he lives but the surrounding country side. He is looked to for active help and leadership in business organiza tions such as the Chamber of Com merce. If there are service clubs, he takes part in their activities. He usu ally participates in the city govern ment, serving as alderman, mayor, member of the board of public works, or what have you. Then you have the “betterment” societies, churches, gar den clubs, schools, fairs, and so forth. If he is on the beam, he is active in these organizations. This is all aside from his regular duties as custodian of the financial assets of the community, so you can see that the country banker, like the country doctor, really plays a big part in the community life of the smaller towns. In fact, I have been told, and I believe it from my own observation, that you can judge the caliber of the local banker just by looking over the town. If it is active, progressive and up and coming, you will find the bank er on his toes, taking care of the com munity needs. W hen you see a town “run down at the heel,” with empty buildings, poor s t r e e t s , dilapidated fronts, and other signs of deterioration, you will find that the banker is in a rut, putting cold water on every en terprise, and in general is a “ sour puss.” Now, where does the country bank er fit into the life insurance picture? First of all, he must have an incentive to write life insurance. The answer to that, laying aside all high-minded ideals of service to mankind, is that he needs money. If he is content with his salary, which is usually small, or has plenty of outside income, he had better forget the life insurance busi ness. The second thing that he needs I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to do the job is the ability to work. If he is lazy, even a need for more money will not stir him up enough to get the job done. Life insurance is work if any sizeable amount is to be sold. In order to reap any benefits he GEORGE I. BEASING Says Country Bankers Can Sell will have to keep many after-hour ap pointments. If your country banker meets the above requirements, he is the logical man in the community to take care of its life insurance needs. He is the financial adviser to whom everyone goes for advice sooner or later. Many times it is not only for help in financial and business affairs but for legal ad vice on wills and land sales or what have you. Many farmer customers will ask for advice on when to sell grain or livestock or when to buy feeder cattle. He also knows the size of their families and their ability to pay. All of these things give the bank er a considerable advantage and build prestige with his customers. To become a good insurance adviser the banker must educate himself along insurance lines. He should learn what it will or will not do, tax saving plans for the wealthier customers, protec tion plans for the poor man with a family, and so forth. He should sub scribe to a good tax service. Articles in the various trade journals are a valuable source of information and inspiration. He can usually sell a good share of his insurance at his desk while talking to customers. However, in many cases he will have to make a call at the home. W hile the customer is in the bank talking to him he can mention life insurance and ask to come out to the home and talk the thing over. Most farmers’ wives know all about their husbands’ business and they also like to know about the life insurance angles. Many times it is a good plan to take the good wife along and make a visit out of the call. Farmers are nearly always glad to have company. During the past, many wives have been opposed to life insurance, and many of the conservative older gen eration did not believe in it, so there was a good deal of resistance to over come; however, this is fast being dis sipated. I think that National Service life insurance has been partly respon sible. There have been claims paid in every community and the news gets around; also, there have been some sizeable claims paid by private com panies, so that the younger generation has a better understanding of life in surance and will buy readily. I have noticed that the subject of life insur ance is taken up in regular school studies. Nearly every year I make a talk on life insurance before the local high school class studying American problems. Another advantage that the banker has over any other agent is in the taking of a note for the first premium. This is especialy true with the farmer customer, for his income is seasonable and as he does not always have the money on hand, the banker can ar range to carry him until his money is available; then when the renewals come up he will not hesitate to ask for a loan to carry the premium if nec essary. In fact, I nearly always sug gest that I will help him through on Northwestern Banker, March, 1947 52 Insurance the renewal each year, which, of course, is mutually profitable. In writing country business I have found that the non-medical privilege is a very great help. A farmer usually dislikes going to the doctor unless he is cleaned up, so I always have better luck writing him on the non-medical basis if he meets the requirements. If an examination is required, I have found that the farmer applicant usual ly comes to town all cleaned up on Saturday evening and that is the ideal time for an appointment if the doctor will cooperate. Summing it all up, I personally be lieve that a country banker is the best man to write life insurance in towns of 2,500 or less.— The End. Flood of New Business Paul Clement, secretary and general manager of the Minnesota Commercial Men’s Association of Minneapolis, re ports that his firm experienced excel lent business during 1946. He says, “W hile claims have picked up some with increased sickness and accidents during the past few months, we have had a remarkable flood of new business thus far in 1947. W e have received 1,092 new members which is the great est number we have ever written in an equal period of time.” In its annual report for the year-end, the Minnesota Commercial Men’s As sociation lists resources at $427,340. This is made up of $102,875 in cash, $105,745 in U. S. government bonds, and $126,269 in municipal bonds. Another Year of Growth Shows GAINS IN ASSETS G A IN S IN RESERVES GAINS IN SURPLUS FUNDS GAINS IN PREMIUM INCOME PA U L CLEM ENT Reports Many New Members GAINS IN INSURANCE IN FORCE The association has in reserve for the protection of members the sum of $361,951. Financial Statem ent— January 1, 1941 Continues Growth ASSETS Cash and Bonds...................................................................................$2,372,100.71 First Mortgage Loans on Real Estate.......................................... 2,680,892.51 202,035.15 Home Office Building and Other Real Estate........................... Stocks ................................................................................................... 708,340.54 Loans to Policyholders and Other Secured Loans................... 122,910.05 Interest and Rents Dueand Accrued........................................... 26,134.83 Net Premiums in Course of Collection......................................... 90,073.71 Total Assets .............................................................................. $6,202,487.50 LIABILITIES Policy Reserves .................................................................................$4,567,206.23 Reserves for Policyholders Dividends........................................ 134,150.97 Premiums Paid in Advance............................................................. 297,147.02 Other Reserves and Liabilities....................................................... 194,428.21 Total Liabilities..........................................................................$5,192,932.43 ’ Surplus to Policyholders.............................................................. 1,009,555.07 Balance ...................................................................................... $6,202,487.50 ‘ In c lu d e s C a p it a l S to c k o f $204,398.67. POLICVHOLDER’S MlTIOnflL INSURANCE COMPANY SIOUX FALLS, SOUTH DAKOTA Northwestern Banker, March. 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LIFE Employers Mutual Casualty of Des Moines had further substantial growth in 1946, with written premium volume exceeding $9 million, a 43 per cent gain over the 1945 figure of close to $6% million, which in itself was $114 mil lion in excess of the 1944 premiums. The assets increased $1,800,838 in the year to a total of $10,955,033. This was a gain of 19.6 per cent, compared to the 17 per cent increase in assets in 1945. Surplus and contingencies re serve increased to $2,123,908. The underwriting profit last year was $193,178, and investment gain $218,943, or a total of $412,121 combined gain from underwriting and invest ments. Dividends to policyholders and federal income taxes absorbed the ma jor portion of these gains. The assets included cash in banks $1,346,376, a gain of about $289,000; bonds $7,934,093, increase over $1 mil lion; stocks $56,770; premiums in col lection $1,320,686; real estate (home of fice building) $117,993; real estate mortgages $149,391. Reserves included: Claims $4,492,995, increase $709,212; unearned premiums $3,450,926, increase $943,306; taxes $302,243, gain $93,488; all other re- Insurance serves (for commissions, dividends, etc.) $584,956, increase $53,757. The reserves aggregated $8,831,121, com pared to $7,031,358 in 1945, or a gain of $1,799,763 in the year. Reserve for contingencies, which is not included in that total, is $300,000. Employers Mutual operates exclu sively on the agency plan, doing a mul tiple line business in 23 states. It was founded in 1911, has had a steady, con servative growth and for a number of years has occupied its own ultra modern home office building in Des Moines. J. W. Gunn is president, John F. Hynes, vice president and secretary; H. A. Watson, assistant secretarytreasurer; M. J. Wilkinson, superin tendent of agencies. Branch offices are maintained in Chicago, Omaha, Minneapolis, Wichita, Philadelphia, Denver, Lansing, Michi gan; Charlotte, North Carolina; Jackson, Mississippi; Dallas, Texas, and Kansas City, Missouri. Need More Help Employment demand for “white col lar” workers shows a nationwide in crease compared with a year ago; w om en applicants are scarce in many cities, but male job seekers are much more numerous than last year, according to a survey of private employment agen cies in 44 U. S. cities, made by North western National Life Insurance Com pany. Greatest increases in volume of job offers are reported by employment agencies in Boston, New York, Pitts Bankers: burgh, Detroit, Cleveland, Cincinnati, Columbus, Indianapolis, and Kansas City, but definite gains in demand are observed by agencies in many other cities, the report shows. W om en are wanted chiefly as typists, stenogra phers, bookkeeping machine operators, and for general office work, while the bulk of the calls for men are for ac counting, sales positions, and general office work. Men job applicants are much more numerous than a year ago in most cities reporting; some agencies report their flow of incoming male job seek ers is double or treble that of a year ago, with the greatest increases in New Special bank service and attractive p r o p o sitio n for banker agents. York, Jersey City, Indianapolis, Miami, Kansas City and Los Angeles. The only sections of the United States where the number of wom en appli cants has increased is in cities on the Pacific Coast and in the southwest. A Cincinnati employment agency report ing in the survey declares that the shortage of wom en help there is the worst in 25 years; agencies in Cleve land report very few women appli cants. Turn Me Over! First cannibal: “ Gosh, I forgot the roast! The missionary is burning.” Second same: “ Holy smoke!” 1946- ANOTHER GOOD YEAR FOR ALLIED MUTUAL and FOR OUR AGENTS STATEMENT OF ASSETS AN D LIABILITIES As of December 31, 1946 ASSETS B o n d s ( A m o r t iz e d V a lu e ) G o v e rn m e n t ................................................................................................................. $2,010,598.61 I o w a C o u n t y ................................................................................................................ 19,278.03 R a ilr o a d ( G o v e r n m e n t G u a r a n t e e d ) ............................................................... 121,318.29 M is c e lla n e o u s ........................................................................................................... 10,000.00 $2,161,194.93 F e d e ra l S a v in g s and L o a n C e r t ific a t e s ...................................................................................... 71,500.00 D e p o s it s (n o t o n in t e r e s t ) C e n tra l N a tio n a l B a n k and T r u s t C o m p a n y , D e s M o i n e s ................ $ I o w a -D e s M o in e s N a t io n a l B a n k & T r u s t C o ., D e s M o i n e s . . . . T h e G ru n d y N a t io n a l B a n k , G ru n d y C e n te r, I o w a ............................ E a rlh a m S a v in g s B a n k , E a rlh a m , I o w a .......................................... F a rm e r s S ta te B a n k , L u v e rn e , I o w a ........................................................ I o w a S ta te B a n k , D e s M o in e s , I o w a .......................................................... C a sh in O ff ic e ...................................................................................................... ••• 271,963.05 25,000.00 5,000.00 5,000.00 5,000.00 5,000.00 400.00 317.363.05 A g e n t s ’ B a la n c e s (U n d e r 90 D a y s O l d ) ................................................................................... R e in s u r a n c e R e c o v e r a b le on P a id L o s s e s . . . . ........................................................................ 213,627.01 954.57 In terest A ccru ed B o n d s ..............................................................................................................................$ F e d e r a l S a v in g s & L o a n ( D i v i d e n d s D e c l a r e d ) ................................... T o t a l A d m it t e d We specialize in writing automobile and fire insur ance. 9,388.33 843.75 10,232.08 $2,774,871.64 A s s e ts LIABILITIES R e s e r v e fo r L i a b i l it y and W o r k m e n ’ s C o m p e n s a tio n $ C la im s R e s e r v e f o r A l l O th e r C l a i m s .................................................................... E s t im a t e d E x p e n s e s o f I n v e s t ig a t in g an d A d ju s t in g C l a i m s .. R eserv e fo r R eserv e fo r R e s e r v e fo r F u n d s H e ld U n e a rn e d P r e m iu m s ............................................................... T a x e s and M is c e lla n e o u s I t e m s ................................... D iv i d e n d s ........................................................................................ U n d e r R e in s u r a n c e T r e a t i e s ............................................ 505,932.42 266,656.00 29.440.00 1,235,442.04 99.428.00 4,668.56 2,050.54 T o t a l L i a b i l it i e s ........................................................................................................................................$2,143,617.56 * S u r p lu s to P o l i c y h o l d e r s ........................... ★ 53 B a la n c e 631,254.08 .......................................................................................................................................................... $2,774.871.64 ♦ I n c lu d e s $250,000.00 G u a r a n ty F u n d . CENTRAL STATES MUTUAL INSURANCE ASSOCIATION Mt. Pleasant, Iowa E. A. HAYES, President O. T. WILSON, Secretary Established 1929 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A L L IE D M U T U A L CASUALTY COMPANY Harold S. Evans, President Hubbell Building Des Moines 7, Iowa Northwestern Banker, March, 1947 54 Insurance W h a it Do You T h in k ? PROTECT and SAVE It is your responsibility and your privilege to offer to your clients protection at a savings. We offer you the opportu Question: Do you think bank inter est rates on loans are too low in proportion to the amount of risk involved? Tj. V. Widmark, executive vice presi dent Farmers & Merchants National Bank, Ivanhoe, Minnesota: “ Interest rates on ‘risk loans’ are too low IF banks are to give proper credit to bor rowers when risks become greater, which they will when farm commodity prices drop.” A. C. Stenson, vice president and cashier Citizens Bank of Colome, Colome, South Dakota: “ No. But if banks had to depend on revenue from in terest on loans entirely, with the pres ent volume of loans and low interest rate it might be rather hard to make a profit. W ith the various service charges believe that we can get along.” A. L. Kout, president First Nashua State Bank, Nashua, Iowa: “ I think they are not. In these times of inflated values, nearly every loan we make is for more than we wish it were, but it takes so much money to buy anything or to do anything, if we wish to make loans we must make them that way. W e decline quite a number of applica tions, when we think they are too heavy. “ Then, when collection of much of our paper is made it may well be that there might be some loss or shrinkage, and by now earning a little more, and putting it into reserves for such pur pose, it seems to us they are not too low.” C. E. Nelson, cashier, American Na tional Bank, Kimball, Nebraska: “ I think that taking into consideration not only the risk involved, but also other conditions prevailing at the pres ent time, interest rates obtained on loans are quite adequate. “ It seems that the lVz per cent rate received by banks on Commodity nity to secure for your clients the very best complete insurance coverage for their every invest ment in dwellings, household goods, mercantile establish ments and their contents and a full line of automobile and truck insurance. W on't you investigate our A gen cy Contract plan today? FIRE INSURANCE COMPANY A MILLION Unless our crystal ball is playing us false, a million people this year will buy De Luxe Personalized Pocket Checks. Now we don’t know what this means percentagewise because we don’t know how many personal checking accounts there are in this country, but we submit that a million of anything is a whale of a lot. Translated into money saved by banks it means a cool half million dollars. Translated into the convenience of bank people it means two hundred million checks with "easy to read” printed names. Translated into public relations it means a host of friends. W h en a million people buy a thing it must be good. When the price of NINTH & GRAND DES MOINES 8, IOWA “ Mutual Insurance Is Am erican Insurance99 Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis such a product holds steady in the face of inflationary trends someone must be employing manufacturing economies. When bankers from coast to coast endorse it enthusiastically one could almost conclude that it had "arrived”. Has it arrived in your bank? If not, perhaps one of our little advertising folders inserted in your monthly state ments would give it the necessary impetus. W e will gladly supply you, without charge, with as many as you need. Maybe you have used several enclosures and are now ready for the "Free Fifty” presentation to your cus tomers. If so, write us for details or discuss it with our representative. 55 Insurance borrowers are repaying very nearly 100 per cent. It would appear there fore that present interest rates are not too low in proportion to the risk in volved. “ It may be that for other reasons the interest rates are too low but it is my considered judgment that moder ate rates of interest are better than high rates, both for banks and for their communities. Moderate interest rates encourage business, high rates discour age and stifle business. As in all busi ness the desirable thing is volume at a fair profit. The manufacturer does better for himself and the community when he produces a large volume at a small profit per unit rather than few units at a large profit per unit. The same rule holds in banking.” Credit Corporation wheat and potato loans is rather low when taking into consideration the work involved, even though the element of risk is re moved.” H. E. Hadley, president, Nevada Na tional Bank, Nevada, Iowa: “ Banks should never make doubtful or ques tionable loans on the theory that the interest rates are high enough so that the bank can afford to take extra risks for that reason. At the present time Here's Your Daily FINANCIAL NEWS l . Complete New York Stock Exchange stock end bond quotations. 2- Complete New York Curb quotations. 3* The most complete Unlisted Securities quotations any w here published — over 1500 each day. 4- Utility News Summary. 5- Railroad News Summary. She: “ My worst sin is vanity. I spend hours every day admiring my beauty.” He: “ That’s not vanity— that’s im agination.” T. A. Tollefson, cashier, First Na tional Bank, Dickinson, North Dakota: “ Interest rates on well secured term loans are adequate and in keeping with the risk involved and the present rate of interest being paid on savings depos its, except, however, in being restricted to the contract rate in this state of 7 per cent, the rate is too low on small personal loans where a greater risk is involved, as well as additional book keeping and time consumed in servic ing such loans. W ell improved farm and city real estate loans, based on deflated values, now command a rate of from 4 to 6 per cent at present.” T h e Journal of Commerce j|j I gives you each day— and ar1 ranged for fast and easy read- .■•" || ing — the following impor- |g g • tant financial news features: I Unkind Words George C. Kumpf, cashier, Bank of Leigh, Leigh, Nebraska: “ I think that the interest rates in this territory are about right at this time. Ninety per cent of our borrowers are farmers and they are in the best financial condition. They have plenty of security to offer for their loans and they are entitled to a good rate, because we know that the loan will be paid at maturity.” | | | 6 - Industrial News Summary. , ■ - 7 . Stock Market Trends In Chicago Office I I plus feature articles and com. 1 plete coverage of all financial || • ; news of the day. Because of increased demand for field warehousing in the Chicago area and contemplated expansion in the mid-west during 1947, Philip L. Butler, assistant vice president of American Express Field W arehousing Corpora tion, has been transferred from the eastern division to the mid-western division and will make his headquar ters in the Chicago office, 120 South La Salle Street, according to Clyde B. Owens, vice president of the organi zation. The next 78 issues w ill be sent for $5. If you are an investor— you need this news each day. Send your check now. Journal of Commerce NEW Y O R K 53 Park Row. New York 15, N. Y. D id you know that this company has specialized in Bank Insurance since 1919— that it has the inside view on Bank Insurance p'roblems? Consult us freely at any time. F IR S T N A T IO N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK B U IL D IN G • C H IC A G O Longer life for people past 40 Most people have had, or will some time have, anemia. In younger individuals this condition is usually easy to correct: young bone marrow has great capacity to make new blood. For those over 40, it calls for more concern. Anemia is a defiency in quantity or quality of red blood cells. It can result from malnutrition, including lack of minerals, chiefly iron; from infection, glandular dysfunction, loss of blood; from lack of balance between produc tion and destruction of red blood cells. So-called “ pernicious anemia,” which only 20 years ago was invariably fatal, is still formidable because if not diag nosed early it may affect the nervous system. But thanks to modern liver therapy, death or paralysis from perni cious anemia is now virtually unknown. Anemia is best detected by hemo globin determination. If examination reveals low hemoglobin, your physician, after proper diagnosis, now has at his disposal effective remedies for correct ing this condition. Anemia’s conquest gives further promise to the man or woman of 40 for another 30 years or more of enjoyable, purposeful living. Getting the most out of those years requires financial independence, best provided through savings and life in surance. Your NW NL agent, paid not primarily for how much insurance he sells you but for what you keep in force, has every reason to provide you with just the right kind and amount, meas ured by what you need and can afford. - N o r t h w e s t e r n J V ation a i L i f e INSURANCE ¿ g f l h CO M PAN Y ^ I ■III'IKIT MINNlAfOLit mMNIIOT* Scarborough & Company Insurance Counselors 3, IL L IN O IS • STATE to Banks 4325 Northwestern Banker, March, 1947 56 N e w n e x t - d o o r n e ig h b o r s : ALASKA and MINNEAPOLIS! Thanks to Northwest Airlines’ new inside F IR S T NATIONAL BANK ,s route to Alaska— direct from Minneapolis— F First National Bank of Minneapolis now delivers fastest ------ - service on checks and collection items between U.S. banks and Alaska points . . . service that’s days faster than before. Forward all Alaska checks and collection items straight to us. Correspondents receive imm ediate credit. FIRST NATIONAL BANK OF MINNEAPOLIS H enry E. A t w o o d , President Department of Banks and Bankers M . O . G r a n g a a r d , Vice President J. J. M a l o n e y , Assistant Vice President K . T . M a r t i n , Assistant Vice President J. M . D o w n e s , Assistant Cashier G . S. H e n r y , Assistant Cashier C . E . C o r c h r a n , Assistant Cashier Member Federal Deposit Insurance Corporation * Norihwesfern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t » 57 Minnesota NEWS During the war, he served two of his three years with the Navy over seas in the South Pacific, in the Mari anas, Marshalls and the Philippines. He was honorably discharged a lieu tenant, senior grade. Buys Bank Building A. W. SANDS President St. Paul Elected Balaton Cashier V. G. Schaffer, form erly assistant cashier, has been elected cashier of the Farmers and Merchants State Bank of Balaton, Minnesota. His elec tion was announced follow ing the an nual meeting of the board of directors. Mr. Schaffer served more than two years in the U. S. Navy before return ing to the bank. 40 Years of Progress Forty years of business progress of the Farmers State Bank of Lake Ben ton, Minnesota, reflect the substantial growth of that flourishing community. W hen President C. M. Soderlind re leased the complete report for 1946 figures, it showed deposits of $981,641 and capital structure of $72,812. Total resources are $1,054,454. In the year end report of 40 years ago, deposits were only $14,008 with $10,017 in capital stock and undivided profits. Other officers of the bank besides President Soderlind are M. I. Kirkeeng, vice president; W. A. Soderlind, cashier; Virginia Soderlind and Phyllis Dahl, assistant cashiers. Chris Olsen, C. M. and W. A. Soderlind and Mr. Kirkeeng comprise the bank’s direc torate. ROBERT E. PTE Secretary Minneapolis director of research, Farm Credit Ad ministration, St. Paul; Swayne P. Goodenough, vice president, Lincoln Rochester Trust Company, Rochester, New York, and president, Financial Advertisers Association; and F. B. Mattingly, manager, credit and collec tions department, International Har vester Company, Chicago. New Association Secretary Robert E. Pye, prominent Medford, Minnesota, banker, was elected secre tary of the Minnesota Bankers Asso ciation when a special meeting was https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hold Area Meeting Officers from Plainview, Wabasha, Lake City, Rochester, Hammond, Do ver, St. Charles and Eyota banks were the guests of Clarence Talen and the Elgin State Bank at a dinner in Elgin, Minnesota, last month. A round table discussion of the banks’ position in the conduct of auc tion sales was held. Albert and Joe Maas, auctioneers, who were also guests of the host bank, explained their methods of conducting sales and advertising and renewed their pledge of complete cooperation with local banks in clerkship of all sales con ducted by the Maas Brothers auction eering company. New Alexandria Cashier Bankers Express Optimism Minnesota b a n k e r s recently indi cated 1947 may be a more booming business year than record breaking 1946. A large part of the 200 persons at tending the eighth annual Minnesota bankers conference in Coffman Memo rial union at the University of Minne sota were optimistic about this year’s trade. “ There never has been so much money in the northwest before,” J. M. Downes of the First National Bank of Minneapolis, averred. “ It will be a long time before there is any decline sufficient to bring conditions down to the level we call normal.” The faculty included B. H. Beckhart, director of research, Chase National Bank, New York City; N. K. Carnes, general manager, Central Cooperative Association, St. Paul; W. L. Calvert, The Olmsted County Bank and Trust Company of Rochester, Minnesota, has purchased the building it has occupied for nearly 11 years. Since August, 1936, the Olmsted bank has been housed in the building constructed in 1918 by the First State Bank, which was liquidated in 1930 when the Kahler Corporation pur chased the structure to provide liquid assets for the benefit of depositors of the First State Bank. R O B E R T E. PYE New Minnesota Secretary held at the association’s headquarters in Minneapolis. Mr. Pye succeeds the late William Duncan, Jr., and is the eleventh sec retary of the association, which was organized in 1889. Mr. Pye has had 14 years of Minnesota country banking experience, and three years of military service with the U. S. Navy. He started his banking career with the State Bank of Morristown, becom ing cashier of the First State Bank of Stanton one year later. After six years in Stanton, he became cashier at the First State Bank at Medford and since has been vice president of both the Morristown and Medford banks. V. L. Thompson, form erly cashier of the First State Bank at Benson, Minnesota, assumed his duties as cash ier of the Farmers National Bank in Alexandria last month. He succeeds G. M. Grabow, who left to assume his duties as vice president of a bank at Havre, Montana. In announcing the arrival of Mr. Thompson, A. C. Schneiderhan, presi dent of the bank, also revealed that Harold Ormseth, form erly teller of the bank, has joined the examining staff of the First Service Corporation of Minnesota. Fire in Shakopee Bank Damage expected to exceed $3,000 resulted from a fire of undetermined origin in the basement of the First National Bank building at Shakopee, Minnesota, last month. Rafters and subflooring beneath the bank directors’ room were charred and extensively damaged, electrical and telephone wiring was rendered useless, and a large stock of bank sup plies was burned and damaged by water and smoke. Northwestern Banker, March, 1947 58 M innesota H ew » Elected to Medford Bank Miss Ann Draper, in charge of the insurance department of the State Bank of Morristown, Minnesota, for the past five years, has been elected assistant cashier of the First State Bank of Medford. Miss Draper will also have charge of insurance at the Medford bank. Itasca Bankers Elect W illiam G. King of the First Nation al Bank of Grand Rapids, Minnesota, was elected president of the Itasca County Bankers Association at the an nual dinner and meeting last month in the Club Alamo in Grand Rapids. Mr. King succeeds H. J. Dockstader of Bovey. Other officers elected are: Robert Cameron of the First National Bank of Deer River, vice president; Milton Fider, Grand Rapids State Bank, treas urer; Marc Adams, First National of Deer River, secretary. Edwin Brickson Retiring Edwin Brickson, for 41 years an official of the Adrian State Bank, Adrian, Minnesota, of which he is now president, has announced his inten tion to retire from active participation in management of the affairs of the bank. Mr. Brickson, who began his bank ing career at Ft. Dodge, Iowa, 54 years ago, helped organize the First Na tional Bank in W ilm ont in 1900. In 1906 he moved to Adrian as cashier of the Adrian State Bank, in which position he served until 1919, when he was elected president. Ben E. Holtdorf, Sioux City, Iowa, has been elected cashier. Otherwise the bank personnel remains the same, according to H. G. Knips, vice presi dent, with Mr. Brickson as president, Mr. Knips as vice president, W. E. Martson and Hilda Carlson, assistant cashiers. Named Northfield President Arthur M. Peterson, cashier, has been elected president of the State Bank of Northfield, Minnesota, to suc ceed Louis Peavey, who resigned re cently to accept the presidency of the Fergus Falls National Bank and Trust Company. Arthur Persons, form erly assistant cashier, has been named cashier. The Minnesota Commercial Men's Association had a very successful year during 1946. 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. A hospital policy covering hospital and surgical expenses is also provided. Statem ent of D e cem b er 31, 1946 RESOURCES $102,875.01 105.745.00 126.269.00 17,600.00 15,013.75 21,022.75 9,887.07 18,600.00 1,863.81 1.98 8,464.14 ............................. 100.00 $427,340.53 Cash ......................................... U. S. Government Bonds....... Municipal Bonds .................... Railroad Bonds ...................... Stocks ....................................... Endowments, Cash Value.... Savings and Loan Deposits.. Real Estate ............................... Interest Receivable ................ Market Value Over Book Value of Stocks and Bonds TOTAL LIABILITIES % 24.07 24.74 29.55 4.13 3.51 4.92 2.31 4.35 0.44 Disability Claims Pending................. .....$ 18,436.00 Unearned Assessments ..................... ..... 41,568.75 Reserve for Taxes, Unpaid Bills........ ..... 5,384.54 RESERVE FOR PROTECTION OF MEMBERS .......................................... .... 361,951.24 TOTAL ............................................ .... $427,340.53 Write for Applications and Literature MINNESOTA COMMERCIAL MEN’S ASSOCIATION PAUL CLEMENT, Secretary 2550 PILLSBURY AVENUE Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MINNEAPOLIS 4, MINNESOTA M innesota N e w s M. McCLURE, president and treas• urer of the Minneapolis Iron Store, has been elected a director of the First Hennepin State Bank of Minneapolis. J Glenn H. Greaves has been elected president of the St. Anthony Park State Bank, succeeding the late An drew Boss. Mr. Greaves, who was cashier of the bank, has been succeeded by John D. Hunt, who was assistant cashier. E. O. Jenkins, form erly president of the First National Bank of Great Falls, Montana, was elected a vice president at the annual meeting of the First Bank Stock Corporation. The corpo ration stockholders voted a dividend of 40 cents a share, continuing the 1946 rate of payment. •Northwest Bancorporation directors at their annual meeting elected Arthur Evans and Carl Voight vice presidents. Mr. Evans has been manager of the bond department and Mr. Voight was an assistant vice president. William B. Bell was named assistant com ptrol ler and H. Raymond Horn was named chief examiner. Fred Paul of the First Trust Com pany of St. Paul has been named by the Twin City Bank Auditors & Comp trollers to succeed Dellos Palmer as president. Mr. Palmer, who was cash ier of the Chicago-Lake State Bank of Minneapolis, has gone to the First National Bank of Chippewa Falls, W is consin. By EL W . KIECKH EFER S p e d a i Correspondent Northw estern Banker cashier, was elected a director and William L. Moran was elected assist ant cashier. Leonard R. Oberg has been elected vice president and cashier of the First Bloomington-Lake National Bank of Minneapolis. He has been cashier of the bank since 1933. 59 neapolis, told the Minnesota Soil Con servation Association recently that bankers are behind the soil conserva tion program and may be counted upon to lend their help to preserve this national asset. Elmer T. Anderson, president of Anderson Chevrolet Company of Min neapolis, and A. Bernhard Lindahl, president of Lindahl Motor Company of Minneapolis, have been elected di rectors of the Fourth Northwestern National Bank of Minneapolis. J. Cameron Thomson, president of D. E. Crouley, vice president of thethe Northwest Bancorporation, has Northwestern National Bank of Min- been named first chairman of the Min- r SOUTH AMERICA A | ,<HL Royal Bank of Canada provides complete and experienced banking service throughout Central and South America where we have been established for over 32 years. Our officers speak the language, know the people and their ways o f doing business. They can open doors for your customers. Our branches in 19 o f the important cities in Central and South America offer valuable points of contact Two new directors were named at the annual meeting of the Marquette National Bank of Minneapolis. They are Matthew J. Levitt, Minneapolis at torney, and Randolph E. Haugan, gen eral manager of Augsburg Publishing House of Minneapolis. F. H. Kriz, president of the First National Bank of Hopkins, has been elected chairman of the board. W. A. Zastrow, who was vice president, has been elected president. S. H. Severson, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in this important area. Your inquiries are invited. The Royal Bank of Canada Incorporated 1869 HEAD O F F I C E - M O N T R E A L N ew York Agency — 68 William Street Norman G . Hart— Agents— Edward C . Holahan Branches throughout Canada and Newfoundland, in the West Indies, Central and South America— O ffices in L o n d o n and Paris Total assets exceed $2,000,000,000 Northwestern Banker, March. 1947 60 M innesota N e w s nesota Community Research Council. Julian B. Baird, president of the First National Bank of St. Paul, was elected treasurer. Farmers & Mechanics Savings Bank of Minneapolis has promoted Herman J. Arnott from secretary to vice presi dent and secretary and William A. Kramer from assistant treasurer to treasurer. James T. Williams, Jr., sales man ager of the Creamette Company, has been chosen a director of the First Hennepin State Bank of Minneapolis. — The End. Fill Director Vacancy Moves Up to Presidency James C. Nelson has been elected a member of the board of directors of the Security State Bank, Albert Lea, Minnesota, to succeed the late A. O. Torgerson. Other members of the Security State Bank’s board of directors are Oscar Dahl, M. K. Hartz, A. S. Lund and E. O. Lund. E. O. Lund, Bricelyn banker, was re-elected president, and his brother, A. S. Lund, executive vice president at the annual meeting. Other officers are E. H. Weber, cashier; Janice Han son, teller; and Shirley Paulson, book keeper. Lee H. Everett was elected presi dent of the Minnesota National Bank, East Grand Forks, Minnesota, at the annual meeting, succeeding A. G. Bjerken of Grand Forks, who contin ued as president of the Red River Na tional Bank of Grand Forks. Both banks are members of the First Bank Stock Corporation. Clara S. Bakke, form er assistant cashier, was moved up to the post of cashier, succeeding Mr. Everett. H ow ard Gravseth and John Malmberg were re-elected assistant cashiers and Miss Jean Robertson continues as auditor. Henry G. Giese was re-elected vice president and directors are Mr. E v erett, Mr. Bjerken, Mr. Giese, J. B. Bingham, Albert O. Rudh and Adolph Lund. Joins Faribault Bank The appointment of Philip R. Day of North St. Paul as manager of the instalment loan and insurance depart ment of the State Bank of Faribault, was announced recently by John Carlander, the bank’s president. Mr. Day was form erly employed by the Empire National Bank and Trust Company of St. Paul, where he served If you pride yourself on having all the up to date answers on modern farming you should be familiar with the many advantages of M M Quick-On— Quick-Off cultivator and planting attachments. Built to fit M M Universal tractors, M M cultivators are made in two, four and six* row sizes. To convert from two to four row the outside frames and gangs are simply bolted on. Adjustment up to 44 inches for wide row spacing is made by merely loosen ing the clamp and sliding the gangs along the square frame bars. The Quick-On— Quick-Off cultivators have high clearance and are available with hand or power lift and a choice of sweeps, shovels or spring tooth attachments, for both front and rear gangs. With the cultivator mounted near the front wheels, and Visionlined Design of M M tractors the operator has full operating visibility and is seated comfortably low to the rear of drive wheels for added SAFETY. For precision planting the cultivator may be changed over to a drill planter by the removal of the cultivator shanks and mounting the planting attachment on the cultivator frame. When the job is finished, the tractor can at once be used for other jobs, since Quick-On— Quick-Off tools are easily removed. M M offers a complete line of these tools for more profitable farming in any territory. Many parts of M M Quick-On— Quick-Off Units are interchangeable, saving you money because you buy less equip ment to handle all the jobs. M M Dealers everywhere are now embarked on a new program of specialized sales and Service of M M Modern Machinery. ♦Special four and six row cultivators for “ Z ” and “ R ” Tractors available for narrow row crops such as beets and beans. ___________________ Minneapolis -M oline P ower I mplement C ompany M I N N E A P O L IS 1, M I N N E S O T A , U. S. A. Horthwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P H IL IP R. DAY W ith State Bank of Faribault for 20 years in various departments, including the savings, safe deposit and instalment loan departments. A year after his graduation from St. Paul’s Johnson High School in 1925, Mr. Day began his banking career with the National Exchange Bank, which shortly thereafter became the Empire National Bank and Trust Company. Since 1936, Mr. Day has been an ac tive member of the St. Paul chapter of the American Institute of Banking, holding all chapter offices before serv ing as its president in 1940 and 1941. M innesota N e w s at the annual meeting of the stock holders. Mr. W idmark succeeds H. J. Tillemans, Minneota, who now holds the position of chairman of the board of directors. J. M. Kaczrowski was promoted to vice president and cashier, and Stan ley Dastych was again named as as sistant cashier. New Assistant Cashiers Officers and directors of the First National Bank of Rochester, Minne sota, were re-elected at the annual meeting of stockholders when Carl Frank and Roy Reifsnider were elected assistant cashiers. LEONARD LINDBERG, mayor of Richfield, Minnesota, was the first customer of the Richfield State Bank when it opened for business last month. He is shown presenting a check to President Selmer L. Jerpbak, left, and Vice President and Cashier William G. Kirchner. The insurance department is super vised by Lloyd M. Wickre. 61 Officers re-elected are M. M. Hayden, president; L. J. Fiegel and R. A. Bezoier, vice presidents; E. A. Cegal, cashier, and K. W. Hagaman, assistant cashier. Directors, in addition to the president and vice presidents, are C. M. Judd and R oy Watson. Warren Bank Elects R. J. Schirber was advanced to the presidency of the State Bank of W ar ren, Minnesota, at the annual stock holders’ meeting. He succeeds G. J. Johnson of St. Paul, who resigned to accept a direc torate in the institution. J. W. Sands, who has served as cash- C o m p le te F o r e ig n B a n k in g S e rv ic e fo r Y o u r C u sto m e rs T o meet the foreign banking requirements o f your cus Pour Men Promoted The follow ing directors were re elected at the annual stockholders meeting of the Security National Bank and Trust Company of Faribault, Min nesota: Lynn Peavey, George E. Kaul, B. W. Cowperthwait, D. D. Coughlin and Roger Peavey. Four members of the bank staff were promoted by the board. Charles MacKenzie, Jr., was elevated from cashier to vice president; John Petteys from assistant cashier to cashier; Alton Deney and Carl Beireis, tellers to as sistant cashiers. Other assistant cash iers are Herbert W. Krenz and Howard Barrett. Roger Peavey is president. tomers you need not maintain accounts in foreign countries if you use the comprehensive services which our Foreign Department offers you. W e are prepared to: • supply you with the facilities for establishing Letters o f Credit for importations from abroad, and for the handling o f export collections; • transmit funds to any foreign country by mail, airmail, or cable; • furnish data regarding exchange regulations, and credit information on foreign buyers and sellers; • equip you with all the necessary forms bearing the name of but one bank — your own — and Houston Bank Elects At a meeting of the directors of the Houston State Bank of Houston, Min nesota, recently, W allace McMillan was advanced from the position of vice president to president of the bank, succeeding J. C. Kelly. Other officers elected were J. C. Kelly, chairman of the board of directors; J. E. Redding, vice president; P. F. Johnson, vice president and cashier; J. J. Kelly, as sistant cashier, and Ethel Mae Green, bookkeeper. without cost to you. You are invited to consult with us regarding any phase o f our foreign facilities for banks. A M E R IC A N N A T IO N A L B A N K AND TRUST COM PANY OF CH ICAG O LA S A L L E S TREET Member Federal Deposit AT W A S H I N G T O N Insurance Corporation Widmark Named President L. V. Widmark, Ivanhoe, Minnesota, was named president of the Farmers and Merchants National Bank there https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1947 62 M in neso ta N e w s ier of the bank, was elevated to vice president, while Delos Austinson was elevated from assistant cashier to cashier. Mrs. Olga Peterson was re elected as an assistant cashier. W. O. Braggans resigned as a vice president of the bank and was elected to serve as a director. Other directors re-elected include Mrs. 0. H. Taralseth and Clay ton Olson. nual meeting of the board of directors. Mr. Bahls replaces Theodore Cook, v jio retired after serving as head of the bank since September 7, 1938. Other officers of the bank elected are: L. P. Kingston, vice president; R. E. Orchard, cashier; Francis Woxland, assistant cashier, and Rita Matsch, assistant cashier. Other officers named included Mi chael Baich, vice president; Ed Wheelecor, cashier; and the following as assistant cashiers: 0. L. Baldrica, Alex C. Johnson, and Mary A. Sartori. At the meeting of stockholders, the board of directors named included: Mr. Train, Mr. Baich, Alfred Maturi, Dominic Maturi, Harry K. Goldenberg, Mr. W heelecor and Mr. Osbolt. Chisholm Election Heads Hastings Bank Ben J. Bahls, prominent business man in Hastings and Cottage Grove, Minnesota, was elected president of the Hastings National Bank at the an George L. Train, longtime president of the First National Bank of Chis holm, Minnesota, was elected to the post of board chairman and Jake Osbolt to the post of president. Alexandria Bank Meeting At the annual meeting of the A lex andria State Bank in Alexandria, Min nesota, Geo. E. Buscher was elected to the office of president. M. A. Lukken, form er president, was elected chairman of the board. Other changes include the election of Edith E. Johnson and J. T. Syvrud to the office of vice presidents and Paul W. Bergien to cashier. Edith Johnson form erly was cashier and Mr. Bergien was assistant. Mr. Syvrud has been a member of the board. W. H. Berry is the assistant cashier. Zastrow Named President SPECIALISTS! CARL L. FR ED RICKSEN President For more than 52 years, this bank, M ARK A. W IL S O N V ice President located in the Sioux City Stock Yards, W IL L IA M G. NELSON V ice President W IL L IA M C. SCHENK Asst. V ice Pres, and Cashier CLIFFO R D L. ADAM S Asst. V ice President interests of the great Sioux City market area. You can see why our specialized ex JOHN S. H A V E R Asst. Cashier perience helps you. JAMES L. SM ITH Asst. Cashier and Auditor K IN L E Y W . SM ITH Asst. Cashier has served the live stock and farming If your bank is agricultural as are most banks in this territory, our location and experience enable us to handle your Sioux City items, 100 per cent. Walter A. Zastrow was elected presi dent of the First National Bank of Hopkins, Minnesota, at the annual meeting of the board of directors. Mr. Zastrow succeeds Frank H. Kriz. president and director since 1940, who was named chairman of the board. Other officers were Otto Cermak, vice president; Svante H. Severson, cashier; Mrs. Dorothy Bergman, as sistant cashier, and W illiam Moran, assistant cashier. Retired Bert H. Lang, vice president in charge of the soil products depart ment of the First National Bank in St. Louis for more than 25 years, has retired from active duties, but will con tinue to serve in an advisory capacity. Regional Conference T H E L ive St o c k Na t i o n a l OF SIO U X B an k C I T Y . 'IO W A Ml E M B E R - F, D .I.C . 7 /¿ e Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 't / tÆ 't y & A j/ s J. A. Hauck, cashier of the State Sav ings Bank of Ionia, Ionia, Michigan, and president of the W estern Michigan Conference of the National Association of Bank Auditors and Comptrollers, has announced that the W estern Michigan Group will be host to the Tenth Mid-Continent Regional Confer ence of the National Association in the city of Grand Rapids, Michigan, on April 7th, 8th and 9th. Hauck an nounced the appointment of J. H. Reinking, cashier of the Peoples State Bank of St. Joseph, St. Joseph, Michi gan, as general chairman. just Thinking of Mother “ Oh, Lord,” prayed Patsy, “ I’m not asking for a thing for myself, but please send mother a son-in-law.” 63 SonI li Dakota NEW S L. C. FOREMAN President Eikton President of Huron Bank W illiam M. Griffith, form er vice pres ident, is the newly elected president of the Farmers and Merchants Bank of Huron, South Dakota, and Charles E. Barkl, form er president, is the new chairman of the board of directors. The new official capacities were de cided at a recent election meeting of the board. L. L. Steele, form er assistant cash ier, will be the new vice president. Heads Civic Group L. H. Ickler, president of the Aber deen National Bank, Aberdeen, South Dakota, has accepted reappointment as chairman of the municipal affairs committee of the Aberdeen Civic Asso ciation. Also reappointed to the com mittee were Arm our F. Grover and Sterling J. Jermstad. This committee in 1946 made a study and presented recommendations to the city commis sion for installation of parking meters and parallel parking. The group’s objectives for 1947 include furtherance of plans for an overhead or under pass for Milwaukee tracks on Main Street, adjustments in traffic control and improved cleanliness of streets and alleys. Addresses College Students W. M. W illy, president of the Secu rity Bank and Trust Company, Madi son, South Dakota, spoke to students at Eastern Teachers College at a spe cial assembly recently. If young people were to follow what the older folks suggest, civilization would remain static; youth must make its own business ventures, but it can learn by its errors and not make the same mistake twice, said the speaker. In discussing factors which made for business success, Mr. W illy empha sized that ability to make friends readily is one of the most important things in any business success. William A. Schaetzel W illiam A. Schaetzel, 73, Elk Point, South Dakota, resident for 30 years while in the banking business, died there recently. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GEORGE M. STARRING Secretary Huron Mr. Schaetzel was born at Freeport, Illinois, but at the age of two accom panied his parents to Sioux Falls. He received his education there, being graduated from the old Sioux Falls high school, and lived there until m ov ing to Elk Point in 1917. In Sioux Falls he was employed by the Sioux Falls Savings Bank. Surviving are the widow; a daugh ter, Mrs. J. Schils, Sheboygan, W iscon sin; one sister, Mrs. E. D. Skillman, Sioux Falls, and two grandchildren. Assistant Cashier Resigns Viola Fordyce, assistant cashier of the Community State Bank of Hayti, South Dakota, resigned last month. She has been employed in that bank for five years. Miss Charlotte Shanard Funeral services were held last month for Charlotte Shanard, who was killed instantly in an automobile crash in Georgia. Miss Shanard, secretary to Robert Driscoll, president of the First National Bank of the Black Hills of Rapid City, South Dakota, was re turning from a vacation in Florida with Mr. and Mrs. Claude C. Anderson, both of whom were seriously injured. Mr. Anderson is vice president of the First National Bank. Miss Shanard was well known in the towns of Faith, Sturgis and Deadwood where she had taught school prior to her position at the bank. S io u x F a lls N e w s OUTH DAKOTA bank deposits are still mounting skyward. A com parative abstract on the condition of state banks in the last quarter of 1946, released by Banking Superintendent Verne Abeel, showed a gahi of $4,627,344 in that period. The December 31st figures showed the 134 state banks and trust compa nies had total deposits of $216,504,060. The mounting trend of bank deposits has been continuous in South Dakota since early 1944. The aggregate has more than doubled since that time. The rate of increase in the last quar S ter of 1944 was less rapid than in pre vious periods since the banks began to bulge three years ago. While no official reason is attached to the lower rate of increase, there is speculation in many quarters as to what is really happening. One possible reason for the declining rate of increase is that farmers still are holding a large part of their 1946 crop and considerable livestock. They probably are putting more money into purchase of available goods, supplies of which were re stricted in the war period, instead of into bank accounts. In the last quarter of the year, too, their income tax payments were heavy, and it may be that considerable money being received within the state is be ing kept in old socks and other places in the home. Aggregate deposits in the 134 state banks were $107,688,245 on April 13, 1944. Between June 30, 1945, and De cember 31st the same year they jumped by $2,452,025, the largest increase in any period during war and postwar prosperity. C. A. Christopherson, chairman of the board of directors of the Union Savings Bank, Sioux Falls, was re elected treasurer of the Minnehaha county chapter of the American Red Cross. Ralph M. AVatson, president of the Northwest Security National Bank, Sioux Falls, was re-elected president of Le Elbon Club, a Shrine organiza tion. Retiring as a director of the club at the beginning of its new year was Tom S. Harkison, president of the Na tional Bank of South Dakota. All officers and directors of the Sioux Valley Bank in Sioux Falls were re elected at a postponed annual meeting, President Erling F. Haugo announced. Major Clare E. Guinter, a former teller at the First National Bank & Trust Company, Sioux Falls, is now an instructor at the Air Tactical School, Tyndall Field, Florida. T. N. Hayter, vice president of the First National Bank & Trust Company, Sioux Falls, accompanied by Mrs. Hay ter, recently went to Miami Beach, Florida, to spend a few weeks’ vaca tion. John McQuillen, vice president of the Northwest Security National Bank, is registration chairman for the state convention of the American Legion, to be held in Sioux Falls June 8th-llth. Tom S. Harkison, president of the Northwestern Banker, March, 1947 64 South Dakota News Driscoll, Rapid City, South Dakota, president of the First National Bank of the Black Hills; O. L. Johnson, presi dent of the Farmers & Merchants State Bank, Tracy, Minnesota; Clar ence Witt, president of the South Oma ha Savings Bank; Ralph M. Watson, president of the Northwest Security National Bank, Sioux Falls, and DeWitt Malvin, vice president and man ager of the Belle Fourche office of the First National Bank of the Black Hills. Heading the legislative round table were Douglas G. Swale, vice president of the First National Bank, Mason City, Iowa; John Shrader, president of National Bank of South Dakota, is assisting the general convention direc tor as member of an advisory board. Panel discussions emphasizing agri cultural subjects, home financing, in stallment loans and legislation con cluded a four-state conference of Northwest Bancorporation executives in Sioux Falls. Session leaders were John de Jong, Des Moines, vice president of the Iowa-Des Moines National Bank & Trust Company; John McCumber, vice president and cashier of the Stockyards National Bank, Omaha; R. E. NATIONAL SURETY CORPORATION V IN C E N T W. C. Duffy, in company with Mrs. Duffy, spent a three-weeks’ vacation in Florida and other parts of the south. On the return trip Mr. Duffy, who is president of the Union Savings Bank in Sioux Falls, attended the country bankers’ convention in Omaha. C U L L E N , President Tom S. Harkison, president of the National Bank of South Dakota, Sioux Falls, was in Omaha the latter part of February for a mid-continent country bankers’ conference sponsored by the American Bankers Association. • F IN A N C IA L S T A T E M E N T Decem ber 31st, 1946 ASSETS Cash in B a n k s ................................................................................. $ 3,053,722.76 Investments: Bonds of United States Government . $14,874,610.43 State B o n d s ........................ 149,336.39 Preferred S t o c k s ................ 6,446,535.00 Common Stocks...................... 10,142,784.00 31,613,265.82 Capital stock of National Surety Marine Insurance Corpora tion, a wholly owned s u b s i d i a r y ......................................... Premiums in Course of Collection, Notover 90 Days Due . Accrued I n t e r e s t ......................................................................... Reinsurance and Other Accounts Receivable . . . . Home Office B u i l d i n g ................................................................. 1,728,462.27 1,583,075.01 59,227.08 49,912.98 500,000.00 T O TA L AD M ITT E D A S S E T S ....................................$38,587,665.92 LIABILITIES, CAPITAL A N D SURPLUS Reserve for Losses and Loss Adjustment Expenses . . . $ 5,011,135.82 Reserve for Unearned Premiums................................................. 9,554,121.94 Reserve for Commissions, Expenses and Taxes . . . . 1,931,692.32 Capital S t o c k .................................................$ 2,500,000.00 Voluntary Reserve for Fluctuations in Security P r i c e s ......................................... 1,379,502.84 S u r p l u s .........................................................13,211,213.00 Surplus to P o li c y h o ld e r s ................................................. 22,090,715.84 T O T A L ............................................................................$38,587,665.92 Investments are carried on the basis prescribed by the New York Insurance Departm entbonds being carried at amortized or investment values and stocks at values based on rates promulgated by the National Association of Insurance Commissioners. If investments were carried at the December 31st, 1946 market quotations, total assets, voluntary reserve for fluctuations in security prices and surplus to policyholders would be increased by $730,035.82. Bonds carried at $1,155 ,5 0 0 .0 0 are deposited as required by law. Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the First National Bank, Marshall, Minnesota; Austin L. Vickery, assist ant vice president of the United States National Bank, Omaha, and C. H. Lock hart, vice president of the First Citi zens National Bank, Watertown, South Dakota. J. Cameron Thomson, Minneapolis, Banco president, presided at sessions which drew approximately 60 bankers from 32 banks in South Dakota, Iowa, Nebraska and southwestern Minne sota. He gave the opening address at the banking executives’ two-day con ference, reviewing 1946 operations of the Northwest Bancorporation and dis cussing economic factors of the future. Carl E. Voight, Minneapolis, assist ant Banco vice president, gave a report on installment and G. I. loans. Frank Cinkle, vice president of the National Bank of South Dakota, Sioux Falls, accompanied by Mrs. Cinkle, left February 22nd for Los Angeles to spend a month’s vacation. New Trust Folders The advertising department of the First National Bank of Chicago has re cently issued three unusual and very attractive four page folders for its trust department. On each the cover page is given over entirely to a photo graph and only the third page con tains any advertising copy aside from the bank’s address on page 2 and the “ 1st” trade mark on page 4. One folder is entitled “ Enduring” and its cover page features the Lincoln Memorial in Washington, D. C. Another one is entitled “Vigilance” and on its cover appears an unusual photograph of a lighthouse. The third is entitled “ Strength” and is a picture of a portion of the Boulder Dam. Two other recent productions of the First National advertising department are six-page folders each on the credit, economic and exchange conditions of the Netherlands and of Belgium. These are part of a series of such folders to be gotten out on various foreign countries. 65 b o r i l i I In k o la N EW S C. w . BURGES P resid e n t E d g e le y C. C. W A T T A M S e c r e ta r y F argo from the total for January of a year ago. Fargo debits totaled $72,051,000, ex ceeding Sioux Falls, South Dakota, by about one and one-half millions and equalling 80 per cent of the total for Duluth, Minnesota. For January, 1946, the Fargo totals were $51,148,000. January debits for other towns and percentages of gain over the previous January follow: % H eads Minot Bank A1 R. Weinhandl, for many years a resident of Mandan, North Dakota, has been named president of the First National Bank of Minot, which now rates as the second largest bank in the state. Mr. Weinhandl is the fourth man to hold the executive post in the Minot bank since its foundation. He suc ceeds Dr. A. D. McCannel, who was made chairman of the board of direc tors. Mr. Weindahl was cashier of the First National Bank of Mandan when he resigned to accept a position with the Bancorporation at Minneapolis, going from Minneapolis to Minot in July of 1945. Schirber Re-elected P. J. Schirber was re-elected presi dent of the James River National Bank of Jamestown, North Dakota, at the annual meeting of the stockholders held at the bank. A. J. Rulon is vice president, E. W. Hauser, cashier, and members of the board of directors are: Clifton John son, Mr. Hauser, Mr. Schirber, A. J. Linn, Mr. Rulon and H. R. Struble. Munich Bank Elects ident of the bank will be named at a later date. K. D. Bennett is president. Capital stock of the Park River Bank has been increased from $25,000 to $50,000. Charles W . Ross Charles W. Ross, formerly president of the Red River National Bank and Trust Co. in Grand Forks, North Da kota, died while at his post as presi dent of the Merchants National Bank of Aurora, Illinois. Mr. Ross, who was 65, became presi dent of the A u r o r a bank in 1934, shortly after leaving Grand Forks. He went to Grand Forks from Chi cago in 1911 as cashier of the Northern State Bank, leaving that position in 1916 to work with the F. S. Sargent Co. in the city. In 1927 he returned to the bank as president, serving in that capacity until the bank was taken over by the First Bank Stock Cor poration in 1929, under the name of Red River National Bank and Trust Co. He then became president of the new company. In 1929 Mr. Ross was elected presi dent of the Grand Forks Commercial Club. In 1931 he left Grand Forks to accept the presidency of two banks in the Chicago area. A successful year of operation, an all-time high total for the bank’s state ment footings, and a high figure for the capital, surplus and undivided profits total were reported at the an nual meeting of the stockholders of the First State Bank of Munich, North Dakota. All directors of the bank were re-elected at the stockholders’ meet ing and the officers were re-elected at the directors’ meeting which followed. L. E. Callahan, Y. A. Nelson and John J. Hillman were re-elected direc tors. Mr. Callahan continues as presi dent, John J. Hillman as cashier and Michael Hoffman, assistant cashier. The First National Bank in St. Louis announced the following elections and promotions: Stuart H. Smith, a terri torial officer, from assistant vice-presi dent to vice-president; George F. Engel, from assistant vice-president to vice-president; John I. Hayward, from assistant auditor to assistant vice-president; Edw. C. Anderson, E. S. Jones, John J. O’Meara, Leonard J. Schrewe, Harry L. Smith and Clar ence W. Wright to assistant cashiers. Messrs. O’Meara, Schrewe and H. L. Smith are territorial officers. Name New Director North Dakota Gains Gordon S. Larson, cashier of the First State Bank of Park River, North Dakota, was elected a director of the institution, replacing C. W. Blaine of Cavalier, who resigned. The vice pres January was another topnotch busi ness month in Fargo, according to the monthly summary of the federal re serve bank in Minneapolis, which lists bank debits for Fargo up 41 per cent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St. Louis Bismarck ............ Devils L a k e ......... Dickinson ........... G rafton ................ Grand Forks ....... Jamestown ......... Lisbon ................ Mandon .............. Minot Valley City ......... Wahpeton .......... Williston .......... Debits .......$26,698 . . . . 4,580 ....... 4,681 ....... 5,467 ....... 19,359 ....... 6,048 ....... 1,292 ....... 3,474 . . . 15,670 . . . . 4,393 ....... 4,229 ....... 7,354 Gain 19 40 16 19 28 37 15 22 30 31 49 19 Cando Bank Election Election of H. B. Baeverstad and Reuben Parker to the board of direc tors of the First State Bank of Cando, North Dakota, was announced by Gor don McRae, president, following the annual meeting of stockholders and directors held recently. They will suc ceed F. A. Foley of Rolla and A. O. Aune of Langdon. Mr. Baeverstad also was elected vice president of the bank. Both he and Mr. Parker are well known throughout Towner county. In addition to their business and farming interests, Mr. Baeverstad is a member of the state legislature and Mr. Parker a county commissioner. Mr, McRae also was re-elected presi dent of the bank and a member of the board of directors. Other officers who were renamed are C. N. Davis, cashier, and Carroll C. Denton and Gladys Metz, assistant cashiers. Announces Promotions Manufacturers Trust Company, New York, announces that John L. O’Halloran of the bank’s Foreign Depart ment has been elevated to the rank of vice-president. At the same time it was also an nounced that the following have been promoted from assistant secretary to assistant vice-president: John C. Boehm, advertising department; Leon ard D. Draper, Jr., investment analysis division; Joseph C. McNally, business development department; William E. Nieman, out-of-town business develop ment department, and Albert S. Thom as who is in charge of the bank’s office at 711 Lexington Avenue. N orth w estern B a n ker, M arch, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 N e b r a s k a N E W S GLEN T. GIBSON P residen t Gibbon Big Gain in Two Months George Barlow has been advanced from vice president to executive vice president with the American National Bank in Sidney, Nebraska. Capital structure has been increased to $230,000 as against $190,000 total at time of the December 31, 1946, bank call. Capital stock is $130,000 and sur plus is $130,000. Deposits have gained more than a half million since the start of the year and on March 4th they were $7,209,859 compared to $6,686,001 at the year-end call. A 10 per cent stock dividend in the amount of $10,000 and the issuance of 400 shares of common stock with par value of $50 per share were responsible for the main capital increase. Increase Capital Stock At the January meeting of the Bank of Mullen, Nebraska, the stockholders approved a stock dividend of 100 per cent from surplus, increasing the cap ital stock to $50,000 and $20,000 sur plus. The Bank of Mullen opened in January, 1936, with capital of $25,000 and has shown steady gains. Deposits in the last call statement were $1,392,407. All officers were re-elected at the meeting and they are: C. J. Abbott, president; Don E. Hanna, vice presi dent; LeRoy Abbott, vice president, and W. H. Bramer, cashier. On Stock Yards Board Henry C. Karpf, president of the Live Stock National Bank of Omaha, was elected a member of the board of directors of the Union Stock Yards Company of Omaha, at the annual meeting last month. Mr. Karpf is well qualified as a member of this board. In addition to his banking interests, he is one of the leading cattle and sheep raisers in western Nebraska. Columbus Group Elects H. F. Garhan, cashier, Farmers State Bank, Rising Sun, Nebraska, was elected president of the Columbus Re gional Clearinghouse Association when the group held the annual dinner meet ing in Columbus recently. He served https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CARL G. SW A N SO N S ecretary O m ah a as vice president last year. L. F. No vak, cashier, Bank of Brainard, was elected to the executive board, repre senting Butler county. Over 50 mem bers representing some 20 banks in the territory were present. A general discussion was held on loans to vet erans, led by Howard Burdick, cashier of the Central National Bank of Colum bus. Assisting were Chet Grau of the Veterans Administration and V. E. Dolpher, president of First National Bank, David City. Blair Bank Holds Election At the annual stockholders meeting of the Washington County Bank in Blair, Nebraska, directors elected for the ensuing year were Charles D. Saunders, John F. Davis, George T. Hedelund, W. D. Hosford, Jr., Earl L. Jenkins and W. B. Roberts. The directors met and elected offi cers as follows: Charles D. Saunders, president; George T. Hedelund, vice president; Stanley J. Bednar, cashier, and Earl L. Jenkins, assistant cashier. Capital stock was doubled and now totals $70,000 with a surplus of $45,000. Kearney a month earlier to make his home with the brother. A native of Buffalo county, Mr. Crawford joined the First National Bank staff following World War I. He had been an assistant cashier since 1937. He is survived by his wife. A son preceded him in death. Service Charges Out The Nebraska Supreme Court early this month upheld a 1945 state law re quiring banks to cash checks at par. Reversing a district court ruling that the law was unconstitutional, the Su preme Court held “no part of provi sion of the federal constitution was ever intended to take from the states the right to properly exercise their police powers.” Emil Placek, president, First Nation al Bank, Wahoo, Nebraska, who brought the original case and had ar gued an exchange charge on out-oftown checks was essential to survival of country banks, said he may appeal to the United States Supreme Court. Mid-west Clearinghouse J. L. Carter, cashier, Overton Na tional Bank of Overton, Nebraska, was elected president of the Mid-west Nebraska Regional Clearinghouse As sociation at a regional annual meeting held last month. Mr. Carter succeeds Horton Munger, vice president, First National Bank of North Platte. E. A. Adams, vice president, Bank of Brule, was re-elected vice president and Robert Crawford, assistant cash ier of the North Platte First National Bank, was elected secretary-treasurer, succeeding George Taylor, assistant Completes 40th Year cashier of the McDonald State Bank. B. V. Hanson, vice president of the Forty members were present at the First National Bank of Holdrege, Ne meeting, representing 10 towns in the braska, celebrated his 40th year with the institution and his sixty-third region: Sutherland, Wallace, Gothen burg, Brady, Ogallala, Stapleton, Overbirthday on February 14th. ton, Brule and North Platte. Chair Officers, directors and fellow em man E. J. Loutzenheiser, of Gothen ployes of the bank joined in rendering burg, and M. D. Keller, of Ogallala, him a birthday party in honor of the composed the nominating committee. occasion. Mr. Hanson went to work as a book keeper for the bank in April, 1907. Two years later he was made a teller. He became assistant cashier and director of the bank in January, 1918, and was elected vice president of the bank in 1942. Frank E. Craw ford Frank E. Crawford, 63, associated with the First National Bank of York, Nebraska, for more than 25 years, died at Kearney at the home of his brother, last month. Mr. Crawford had been in failing health for some time and moved to Elect Bancroft President The stockholders of the First Na tional Bank of Bancroft, Nebraska, held their annual meeting recently. Claus Peters was elected president, re placing John Hermelbracht, Sr., and Conrad Beineke was elected vice presi dent. Albert Carlberg and Jack Munderloh were elected directors to fill vacancies caused by the deaths of G. H. Harms and John Hermelbracht. Other officers of the bank were re elected, and they are A. G. Zuhlke, cashier, and G. H. Harms and W. G. Munderloh, assistant cashiers. Northwestern Banker, March, 1947 68 Nebraska News H alf Million Increase Broken Bow, Nebraska, bank depos its have increased more than half a million dollars during the year 1946. According to bank statements pub lished, total deposits in the three banks are $6,923,243 as compared with $6,367,200 a year ago. Joins Crete Bank Les Parker joined the staff of The City National Bank of Crete, Nebras ka, as assistant cashier following the annual meeting of shareholders of the bank. Mr. Parker went to Crete in Novem ber after serving for 15 years as cash ier of the Citizens State Bank in Dor chester. He is a native of Saline county. The resume of the past year’s busi ness was presented at the meeting by the officers and the usual cash dividend was voted. Directors elected were John Rothmuller, B. F. Aron, Robert K. Kuncl, John J. Smejkal, F. J. Stejskal, Herbert G. Smith, and John E. Mekota. Officers elected were John Rothmuller, president, and B. F. Aron, vice president and cashier. Beatrice National Bank Keith Roberts was elected to the staff of assistant cashiers at the an nual meeting of the Beatrice National bank, Beatrice, Nebraska. Other officers and directors were continued in their former capacities, and they are: Wallace Robertson, chairman of the board; D. W. Cook, president; E. C. Austin, executive vice president; H. T. Weston, vice president; W. W. Cook, cashier; J. H. Doll, R. D. Mudge, W. W. Decker and R. H. Grupe, assistant cashiers. Directors are D. W. Cook, H. T. Weston, W. H. Kilpatrick, Jr., E. C. Austin, D. S. Dalbey, J. M. Kilpatrick, JU ncoln --- *7Ite G o.*iti*ie*ttal---- X O U are certain to notice the prompt and cour teous service that you receive from the "Continental," the friendly bank, located at Nebraskas' capital city. Our many departments, staffed by well-qualified officers, stand ready to assist our correspondents at all times. It will be a pleasure for us to serve you. (ONTINENTAL RATION AL B ank LINCOLN Member Federal Deposit Insurance Corporation Bank oi p t i l ^ .? ,i Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em ber F ederal D eposit In su ra n ce C o rp ora tion H. S. Wilson, J. H. Scheve, Wallace Robertson, W. W. Cook, George P. Cook and W. B. Morton. Beatrice First National All officers of the First National Bank, Beatrice, Nebraska, were re elected at the firm’s 71st annual meet ing held last month. Officers include W. C. Black, presi dent; E. T. Howey, vice president; Harold R. Dietemeyer, cashier; L. D. Bonham, H. Fay Sandritter and Ver non R. Mulig, assistant cashiers. Three new members were voted to the board of directors, including Sam uel M. Rinaker, Chicago; Clyde B. Dempster and Wyman Kenagy. Former board members re-elected include Mr. Black, Mr. Howey, Mr. Dietemeyer, Mr. Bonham, Melvin Bekins, Omaha, and M. S. Hevelone. BANKERS YOU KNOW (Continued from page 21) and in the trust field. In 1937 Mr. Strain was elected presiden t of the Continental N ational Bank. He was m arried to Fern A. W itm er Ju n e 18, 1914, and they have twin daughters, Jo Anne and Jeanette. Civic groups h a v e found Mr. S train ’s talents a valuable asset in Lincoln’s progress. They put his analytical m ind to w ork when he was m ade chairm an of the City Planning Com m ittee and later chairm an of the Com m unity Chest. In addition he has served as president of the C ham ber of Com m erce, the Lincoln A lum ni A ssociation and the U niversity of N eb raska Foundation. Mr. Strain is a R epub lican and in his leisure hours finds pleasu re in his hobby of cooking. He is a m em ber of the M asons, E lks, Scottish R ite, Lincoln Country Club, Sigm a P h i E psilon F ratern ity (P ast G rand H is to ria n ), Presbyterian Church, R e serve City B an kers A ssociation, R ob ert M orris A ssociates and the A m eri can Legion. 69 Complete Correspondent Facilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1947 70 N ebraska N ew s Raise Surplus Account MUNICIPAL BONDS CORPORATION BONDS and STOCKS JOHN DOUGLAS & CO., INC. Omaha, Nebraska 530 Insurance Building Phone: Webster 2281 C. E. Pearson, vice president, Genoa National Bank, Genoa, Nebraska, an nounces that the surplus of the bank has been increased from $30,000 to $50,000 making surplus and undivided profits total $55,209 and the capital $50,000. Deposits are listed in the year end release as $2,048,373. John Elm is president of the Genoa National, E. L. Burke, Jr., executive vice presi dent, W. M. Winell, cashier, and Eva K. Ford, assistant cashier. Only Savings Bank Clarence F. Witt, president, South Omaha Savings Bank, announces that at a recent meeting the bank increased its capital structure by $50,000 to meet with the demands of increased busi ness. It is interesting to note that the South Omaha Savings Bank is the only savings bank in the state of Nebraska. A t Chase National O u r night and day transit service, coupled Francis Ross, vice president of the Chase National Bank, has been placed in charge of correspondent bank ac tivities covering the Dakotas, Minne sota, Iowa, Nebraska, Kansas and Missouri. E. A. Locke is taking over Chicago, southern Wisconsin and northern Illi nois activities. Roland Irvine, vice president of the Chase, continues to head all country bank activities. with On Florida Trip Where do you send your Kansas City area, Southern, Southwestern and Western items? a netw ork o f railw ay and air m ail service radiating in all directions, thus fo r m ing a natural traffic gatew ay, en ables us to h an d le yo u r transit item s with a consider ab le saving in tim e. W e in vite you to take advantage o f our excep tion ally fine service. the Inter -S tate c National Bank /Ô , Member Federal Deposit Insurance Corporation James S. Neely, vice president, City National Bank and Trust Company, made his annual trip to Florida to visit the spring training camps of the vari ous baseball clubs. This yearly visit is an old custom of Mr. Neely’s and is an index of his unusual interest in his hobby of following the doings of professional baseball. Coffman Retires Ernest G. Coffman, vice president and widely known representative of the First National Bank in St. Louis in several southern states for twentyfour years, retired on March 1st in order to devote his time to personal business interests. BANKS C o n fid e n t ia lly a n d Bought and Sold w ith b e c o m in g d ig n it y BANK EMPLOYEES PLACED. 40 Years Satisfactory Service THE CHARLES E. WALTERS CO. OMAHA, Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N EBRASKA 71 Mrs. Denman Kountze was elected president of the Omaha Visiting Nurse Association for 1947. Other new of ficers include Mrs. Casper Y. Offutt, first vice president and Mrs. Ellsworth Moser, second vice president. Elected a board member was Mrs. W. B. Mil lard, Jr. MAHA bank clearings for the week ending January 22 led the O nation in percentage gain over the same 1946 week. Dun & Bradstreet reported that Omaha banks cleared a total of $123,762,000 for that week. That is a gain of 43 per cent over the like week in ' 1946. Omaha bankers said their business volume has been “extremely heavy” and said that the high bank clearing figure shows that Omaha business is strong. Store sales, they said, have been high. A bidding group headed by Halsey, Stuart & Company, Inc., of Chicago and New York was awarded the Omaha Public Power District’s 42 million-dollar electric revenue bond issue. Halsey Stuart’s bid for the issue, $42,020,995.80, was the high bid. Over all interest rate cost to the district for the life of the entire issue will be 1.98 per cent. Only two groups bid. The other proposal was submitted by the First Boston Corporation, with Smith, Bar ney & Company and Harriman, Rip ley & Company, all of New York City, and associates. Two appointments of officials at the First National Bank of Chicago hold Omaha interest. Guy C. Kiddoo, a vice president of the bank, was promoted to head a division in the commercial depart ment. He is the son of H. G. Kiddoo and a former Omaha banker. B. G. McCloud, Jr., a grandson of Mrs. R. H. Olmsted, was elected an assistant vice president. Mr. McCloud is a son of the president of the Chicago bank. J. Francis McDermott, vice presi dent of the First National Bank of Omaha, and a former chairman of the war bond division, spoke at a dinner meeting of the Better Omaha Club at the South Side Turner Hall. The industrial committee of the 1947 Douglas County Red Cross campaign is headed by A. J. Rhodes, it was an nounced by E. C. Schmidt, general drive chairman. Mr. Rhodes is asso ciated with the Omaha National Bank. A. D. Marvel, Hastings, was elected president of the Nebraska Association of Small Loan Companies. Other of ficers are Edgar Reynold, Grand Is land, first vice president; J. H. Mack, Scottsbluff, second vice president; Jay Cherniack, Omaha, treasurer; R. W. Gohde, Lincoln, secretary. A. L. Coad was elected president of the Omaha Clearing House Associa tion at the annual meeting. Dale Clark was elected vice presi dent, Carl G. Swanson was renamed secretary-treasurer. He also is man ager. Mr. Coad is president of the Packers National Bank. Mr. Clark is president of Omaha National Bank. Fred W. Thomas has been appointed chairman of the regional advisory committee of the Reconstruction Fi nance Corporation. He is a vice presi dent of the First National Bank of Omaha. Mr. Thomas has been a member of the RFC committee many years and is now ranking active member in service. Carl Falk, of Omaha, president of Buffet & Co., investments, was elected a director of the Associated Hospital Service of Nebraska. OFFERING COMPLETE SERVICE FOR BANKS IN THIS TRADE TERRITORY Tilt First \;ilidiiiil bulk YOUR STATE BANKERS /^SOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS St. Joseph, Missouri F. E. DAVENPORT & CO. Member Federal Deposit Insurance Corporation OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1947 72 Nebraska News Other officers of the prepaid hospital insurance plan, known as Blue Cross, were re-elected. They include Francis J. Bath, president; Arthur L. Coad, vice president; J. H. Pfeiffer, secretary, and Joseph O. Burger, treasurer. John T. Ashford has been raised from manager of the real estate sales staff of Western Securities Company to vice president. He joined the firm in 1945. Mr. Ashford formerly was vice president of the State Bank at Winnebago, Nebraska. Before joining Western Securities, he had been manager of the Farm Credit Administration’s Omaha crop loan office and organizer of the Chi cago area of the Federal Crop Insur ance Corporation. A $1,217,005 special dividend was an nounced by the Omaha Federal Land Bank. It was paid to 201 national farm loan associations in Nebraska, Iowa, South Dakota and Wyoming. It represents 10 per cent of their investment in land bank capital stock on December 31, 1946. The entire amount was to be LINCOLN, NEBRASKA OFFICERS BYRON DUNN................................................................. President ALBERT A. HELD................................ Executive Vice President ERNEST C. FOLSOM.............................................Vice President JULIUS WEIL........................................................... Vice President CARL D. GANZ......................... Vice President & Trust Officer GLENN YAUSSI............. Vice President & Asst. Trust Officer MARSHALL HEWITT.................................. Asst. Vice President PAUL BOGOTT................................................................ Cashier WILLIAM STRATEMAN............................ Asst. Vice President R. E. MILLER........................................................... Asst. Cashier TED THOMPSON................................................... Asst. Cashier We Welcome Correspondent Accounts M em ber Federal Deposit Insurance Corporation One Team Outscores Another IN BASKETBALL: It takes skill, accuracy and teamwork. IN BANKING: It takes skill, accuracy and teamwork. If you're looking for a Kansas City bank connection that has more than safe-keeping for your securities . . . more than just fast transit service . . . if you want a bank that offers you the BEST in banking service, then— the bank for you is the CITY NATIONAL! Yes, at City National they’re all pulling together— a winning team— in there every minute to make that final score come out in your favor! In Kansas City , . . It's City National! CITY NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 'K attteU & TRUST 'pOMX'Ute S<l*t& COMPANY Member Federal Deposit Insurance Corporation • Resources Over $120,000,000.00 Horthwestern Banker, March, 1947 The Omaha Community Chest Board passed a resolution in recognition of services to the Chest by the late Alvin E. Johnson, prominent Omaha banker. A former campaign chairman, Mr. Johnson served on the board from 1940 to 1946. Mrs. J. T. Stewart, III, was re elected president of the Orthopedic Association of Omaha. Mr. Stewart is vice president and cashier of the First National Bank of Omaha. NATIONAL BANK of COMMERCE 18th & GRAND KANSAS CITY, MO added to reserves of the cooperative loan associations. Nebraska farm loan associations re ceived $361,801; Iowa associations, $627,818; South Dakota, $179,518, and Wyoming, $47,868. To Insurance Board W. C. Connett, first vice president of the First National Bank in St. Louis, has been elected to the board of direc tors of the Maryland Casualty Com pany, of Baltimore. New Calculator Line As its first major product change since the war, Burroughs Adding Ma chine Company has completely re styled its entire line of calculators. By producing the machines in a soft brown color and a non-reflecting fin ish, Burroughs has been able to give these postwar calculators a smart, modern appearance and to eliminate all reflection and glare. The new color treatment has been extended even to the machine keytops where the old black and white colors have been re placed with harmonizing tones of brown and ivory. The Burroughs electric duplex cal culator offers a number of operating advantages. It registers the result of individual calculations in its front dials and automatically accumulates a grand total in the rear dials. Any amount registered in the front dials can be instantly subtracted from the grand total by means of the “ subtract” bar without the use of complements. City National, Chicago At the annual meeting of the stock holders of the City National Bank and Trust Company of Chicago, all present directors were re-elected. At the meeting of the directors which followed the stockholders’ meet ing, J. A. Dattilo, formerly assistant cashier, and Philip R. Clarke, Jr., were elected assistant vice presidents; C. W. Bufe, assistant cashier, and John Landry, assistant trust officer. All other officers were re-elected. Nebraska News Through the medium of an opinion prepared for James J. Fitzgerald, county attorney of Douglas county, Walter Johnson, state’s attorney gen eral, has advised Nebraska bankers that reserve funds of national banks would “ordinarily” be included in tax able funds. The practices of bankers and banks regarding reserve funds varies consid erably, the state’s attorney declared. Some set aside so-called reserve funds to meet certain fixed charges such as taxes and interest. Funds set aside for such purposes, he added, might properly be disregarded. Frequently, however, Mr. Johnson 73 said, defending the taxing phase, re serve funds are set aside to meet con tingent losses or expenses which can not be foreseen. Admitting such prac tice is sound business, he said setting aside of such funds does not justify the contention that they should not be considered as adding value to the shares of stock. Fred Peters, former state banking director, has purchased stock in the Citizens National Bank at Ashland, and is now executive vice president. He assumed his duties last month. Lincoln bank clearings of $28,987,386 ITH heavy gains in both deposits and assets during the last half of W 1946, compared to the first six months, Nebraska’s 282 state banks were in an enviable financial position at the close of the year. J. F. McLain, state banking director, has disclosed that as of the last day of the year, Nebraska’s state banks showed an increase of $31,852,786 in resources during the last half of the past year. Simultaneously, deposits went up $30,706,627. Liabilities and capital accounts on June 30, 1946, totaled $352,474,541, and jumped to $384,327,330, by the last day of the year. Responding to the with drawal of $7,500,000 of U. S. govern ment money, cash reserves fell off .6 per cent during the last half from the mid-year peak of 27.4 per cent. The banking director’s study of the year-end reports reveals that while checking accounts were upped $37,858,377.54 over the final half year, sav ings and time accounts declined $874,815.63. Loans and discounts were high er by about $9,000,000. One of the services of practical value that we offer you is an analysis of your government bond holdings. Funeral services for Mrs. Letitia Usher Guenzel, 81, were held early in February. A resident of Lincoln 56 years, she was the wife of one of the co-founders of the one time Rudge & Guenzel department store, known throughout the middle west. Besides her husband, she leaves two sons, Stan ley, and Ernest UM vice president of the First National Bank, and two sis ters. Frank Pilger, 69 years old, wellknown Nebraska educator, real estate broker and long-time banker, died in Lincoln last month. As a banker he was associated for eight years with the Lincoln Joint Stock Land Bank. He was also in the banking business at Pierce, Nebraska, where he had moved from Bloomington, where he was born. At one time he was presi dent of the Pierce State Bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Changing conditions, national and local, may indicate that changes are needed in your bond portfolio. Should you require such a serv ice, we would be happy to dis cuss your problems with you. THE FIRST NATIONAL BANK OF LINCOLN 11171 LINCOLN, NEBRASKA 1947 Member Federal Deposit Insurance Corporation Northwestern Banker. March „ 1947 74 N ebraska N ew s were a gain of $2,190,000 over the ag gregate for December, 1946, which, because of Christmas shopping was a record at $26,797,120. Compared with January, 1946, last month had an ad vantage of $7,628,118. After an illness of several years, Mrs. Maude H. Holm, widow of the late Paul H. Holm, former prominent Lincoln banker, died in Lincoln re cently at her home. During her life she was active in women’s organiza tions, civic activities, and the matinee Musicale. Mr. Holm was at one time a director of the former City National Bank, the First National Bank, and was one of the organizers of the First Trust Company. The Nebraska unicameral legislature has confirmed the interim appointment by Governor Val Peterson of J. F. Mc Lain as state banking director. Mr. McLain had been an employe of the banking department for many years. C. R. Haines, who started working there in 1930, has been advanced to deputy director, the post formerly held by Mr. McLain. He will be in charge of the division of commercial banking. Lincoln bankers have a busy time ahead of them, what with their bank ing responsibilties, and the many civic activities that are steadily being shifted to their shoulders. Walker S. Battey, vice president of the Continental National Bank, has been elected to succeed himself as president of the Lincoln Y.M.C.A. At the same meeting E. A. Becker, execu tive vice president of the same bank; George Knight, president of the Citi zens State Bank, and Paul Bogott of the National Bank of Commerce were elected members of the board. Within a week bankers again were called upon for civic workers. C. Wheaton Battey, also a vice president of the Continental National Bank, and treasurer of the Chamber of Com merce, was elected chairman of the chamber’s budget committee. The chamber then set up a new business committee and named these bankers as part of the personnel: Bernard G. Clark, president of the Havelock National Bank; Byron Dunn, president of the National Bank of Commerce; Howard Hadley, vice pres ident of the Continental National; George Knight, president of the Citi zens State Bank, and W. W. Putney, Continental National director. Alvin C. Glandt, vice president and cashier of the First National Bank, was appointed head of the employes’ sec tion in the 1947 Red Cross fund cam paign. Mr. Glandt has had broad ex perience in Red Cross and Community Chest campaigns. Along with his 15 colonels, he enlisted about 700 work ers to solicit 26,000 employes of 2,894 firms and offices.—The End. Ju st as though YOUR hank advertised in these m agazines! | When you handle American Express Travelers Cheques 1 you have the biggest advertising campaign in the trav| elers cheque business working for you. Such tremendously popular magazines as, The Saturday Evening Post, Collier’s, Time, American, National Geographic and Holiday, carry 152,248,552 American Express Travelers Cheques sales mes sages to travelers and potential travelers throughout the year. Many of these readers live in your community—are your own depositors. With the vacation season so close, you can take advantage of this advertising by identifying your bank with this tre m en d o u s volume of sales-making advertising by tieing in your bank locally with newspaper advertising. Write W. H. Stetser, Vice President, American Express Company, 65 Broadway, for folder illustrating American Express Traveler Cheque advertising newspaper mats that are avail able to your bank. Or, for any literature, counter cards, or blotters that are available to help you capitalize this huge, business provok ing American Express Travelers Cheques campaign. A m e r ic a n E x p r e s s T r a v e le r s C h eq u es Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Retires Fred W. Loco, of Winnetka, assist ant vice president of The First Na tional Bank of Chicago, having com pleted 47 years of banking service, retired on pension February 28. He joined the Union Trust Company in 1900, and became an officer in 1916. A ssistant Secretary William A. Brady has been elected assistant secretary of the Mississippi Valley Trust Company, St. Louis. Mr. Brady has had wide experience in the foreign department of the bank, and will continue to be associated with this department. Beginning as an office boy in 1928, he also held the positions of transit clerk and collection teller before be coming foreign assistant. He is at present enrolled in the School of Bank ing at the University of Wisconsin, and is a member of the Export Man agers’ Club of St. Louis. Nebraska News 75 S. SLO A N C O LT H O N O RED A t the recent animal banquet of the New York chapter of the Ameri can Institute of Banking at the Hotel Astor, New York, honorary membership in the chapter was con ferred upon S. Sloan Colt, president of Bankers Trust Company, " i n rec ognition of his enviable record of outstanding and constructive serv ice to the banking profession, to his community and to his country. ” In accepting the honor from Thaddeus C. Cox, (le ft), president of the chapter, Mr. Colt compli mented the officers and members for overcoming the many difficulties during the war years and keeping abreast of the times. " T h e Insti tute, ’ ’ he said, ‘ ‘ is certain to take an increasingly important part in the development and progress of the banking profession. ’ ’ The COMMERCE of Kansas Ci ty. . . NOW 38th LARGEST BANK IN O.SA. The latest report concerning the Merger Crocker First National Bank of San Francisco and Farmers and Merchants Savings Bank of Oakland, two of the oldest banks in the San Francisco Bay area, were consolidated on March 3. The banking business of Farmers and Merchants Savings Bank of Oakland will be continued under the name Crocker First National Bank. Wm. W. Crocker, president of Crock er First National Bank, announced that George W. Hall, vice president, would assume charge of Oakland op erations. Mr. Hall, a native and resi dent of Oakland, has been with the bank for 32 years. C. William Brown, assistant cashier, has been named manager of the Oakland real estate loan department. Mr. Brown has been associated with Crocker First National Bank for 33 years. Mr. Crocker also announced that officers of Farmers and Merchants Sav ings Bank who will remain with Crock er First National Bank, Oakland, in clude F. C. Martens, J. Harold Brown, John Campe, V. F. Obermuller and F. C. Wheeler. rank banks of the 100 largest in the United States shows the Commerce moved up . . . from 41st to 38th position. 24-hour transit service . . . private wires to all principal cities . . . direct sending of items that is unequaled in the United States. Your business is invited. (o m m e rc e friis t (o rn p a n y C a p ita l fyuncU. £<x,cee<L <2/ M illio n ubollasU N o Statistics Student: “Do married people really live longer than single ones?” Professor: “ I’m not sure, but it seems longer.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis KANSAS CITY’S LARGEST BANK Established 1865 ^ ^ rcIec%aplod re ^ J Northwestern Banker, March, 1947 76 SERVING EVERY NEED FOR CORRESPONDENT BANKS ® 24-Hour Transit Service including air mail service. OFFICERS HENRY § Investment Service On Government Bonds C. KARPF P r e s id e n t W ADE R. M A R T IN R. H . K R O E G E R V i c e P r e s id e n t PAUL H ANSEN V i c e P r e s id e n t W. V i c e P r e s id e n t • Safe-keeping of Securities. H. H. E C H T E R M E Y E R DEAN C. G. V i c e P r e s id e n t • Participation in Loans. L. VOGEL V i c e P r e s id e n t PEARSON C a sh ie r V. P U L L IA M A L B E R T R. S T E L L IN G A sst. C a sh ie r A s s t . C a sh ie r • Credit Information. E L M E R E. O L S O N A s s f . C a sh ie r All © Operational Assistance of these officers are specialists various fields — assuring knowledge in their of your needs, and ability to offer adeguate assistance. $ Intimate Personal Services T H E LIVE B A N K Of ST O C K F R I E N D l Yy| N A T IO N A L OMAHA, NEBRASKA Member Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n k e r, M a r c h , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1947 S E R V I C E ¡B A N K Iowa News as Mr. Sorensen declined to serve any longer because of his advanced age. Officers are John S. Whyte, presi dent; G. T. Taylor, cashier, and Robert S. Whyte, vice president. Iow a N EW S W . H. BRENTON P resid e n t Des M oines O bserves 60th Year The directors and employes of the State Bank of Fayette, Iowa, were hosts to Mr. and Mrs. C. R. Carpenter in the home of Mr. and Mrs. F. B. Claxton, the occasion being the 60th anni versary of Mr. Carpenter’s service with the State Bank of Fayette. Mr. Carpenter came to Fayette on February 1, 1887, as cashier of the then privately owned Bank of Fayette, and has served continuously since that date. The present State Bank of Fay ette was organized in 1901 as successor to the private bank, and Mr. Carpenter has served as its president since 1915. Mr. Claxton is vice president and Mr. Swartz is cashier. Due to the severity of the weather some members of the board were un able to attend, but those present in addition to Mr. and Mrs. Carpenter and Mr. and Mrs. Claxton were Dr. and Mrs. John E. Dorman, Mary B. Jones, Mr. and Mrs. Russell Swartz, Miss Jean Hunt, Mrs. Katherine Gross and Mrs. Minnie E. Dubbert. Cedar Rapids Promotions Merchants National Bank of Cedar Rapids, Iowa, has announced several promotions among its personnel. Everett Pratt, who has been with the bank for 20 years, has been named auditor and Clyde Peremsky has been placed at the head of the savings divi sion of the bank. Mr. Peremsky suc ceeds Russell W. Manat, who is now in the trust and new business depart ments. Another promotion is that of Victor Bryant, who now heads the teller sec tion of the institution. All of these men have been asso ciated with the bank for a number of years. Endorse H arry Schaller At a meeting of the Buena Vista County Bankers Association last month in Storm Lake, Iowa, the following resolution was unanimously adopted: “Resolved, That our Association en dorse the candidacy of Harry W. Schal ler, president of The Citizens First National Bank of Storm Lake, Iowa, for the presidency of the Iowa Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis it Elect Tipton Officers FRANK W ARNER S ecretary Des M oines ers Association. We recommend him to the favorable consideration of all Iowa bankers as a man of high char acter, an able banker, and a returned veteran with three and one half-years of service in World War II.” H. H. Wetzeler, cashier, First Trust and Savings Bank of Alta, was elected president of the group for the ensuing year and A. J. Scott, cashier, First State Bank of Sioux Rapids, vice presi dent, and E. G. Koehler, assistant cash ier, First Trust and Savings Bank of Alta, secretary and treasurer. The following banks were repre sented: First State Bank of Sioux Rap ids; First State, Linn Grove; Citizens State, Marathon; First Trust and Sav ings, Alta; Albert City Savings, Albert City; First National, Newell; Commer cial Trust and Savings, Security Trust and Savings and Citizens First Na tional, all of Storm Lake. On Goldfield Board At the regular annual stockholders’ meeting of the Goldfield State Bank in Goldfield, Iowa, Orten Lerdal was elected to the board of directors to fill the vacancy caused by the death of his father, Ole Lerdal. Ole Lerdal was one of the organizers of the bank in 1926 and served as a member of the board and as vice president until his death. Frank W. Stevenson, local farmer, was also elected to the board to take the place of Ole Sorensen Officers elected at the recent annual meeting of the board of directors of the Tipton State Bank of Tipton, Iowa, included J. W. Edge, president; Dale H. Smith, executive vice president; Geo. R. Geller, vice president; LaVerne D. Suchomel, cashier; James Moore, June Werling and Welcome Reed, as sistant cashiers. The present board of directors were all re-elected by the stockholders and include: A. H. Al bert, D. C. Armstrong, R. J. Benda, Earl M. J. Escher, Ralph Gaul, Geo. Geller, J. W. Edge, W. J. Donohue and A. J. Suchomel. During the past year the capital structure was increased to $100,000, with surplus and undivided profits at $155,000. An increase in deposits for the year amounted to approximately $300,000. Buys Red O ak Business G. M. Barnett, Jr., who for the past year has been serving as assistant cashier and director of the Guthrie County State Bank in Guthrie Center, Iowa, recently purchased the Frozen Food Center locker plant at Red Oak, Iowa. Mr. Barnett is a graduate of the Guthrie Center high school and of Ore gon State College. He served over four years with the Fifth Air Force as a communications officer in the Pa cific theater of war. He was separated from service with the rank of major in February, 1946, retaining the status of reserve officer. On Indianola Board John Gruebel, prominent Milo, Iowa, farmer, recently was elected to the I f f 4 7 l a t r a f ï r o u p M e e t i n tf s GROUPS DATES TO W N S 5 Tuesday, May 13th............................... Atlantic 6 10 7 W ednesday, May 14th.........................Newton Thursday, May 15th...............................Chariton Friday, May 16th...............................Iowa City 2 3 4 Tuesday, May 20th........................Storm Lake W ednesday, May 21st........................... Eldora Thursday, May 22nd.......................Manchester 8 Friday, May 23rd ............................... Anamosa Northwestern Banker, March, 1947 78 Iow a N ew s board of directors of the Peoples Trust and Savings Bank of Indianola, Iowa, replacing the late Mr. Felton. Mr. Gruebel is prominent in Belmont town ship, active in the farm bureau of the county and chairman of the Triple A there for 1947. He has been identified with this program for several years. Fayette County Meeting At a meeting of the Fayette County Bankers Association at West Union, Iowa, last month there were 40 pres ent. Officers elected for the coming year were: President, Miss Evelyn Eck, assistant cashier, First National Bank, Oelwein, Iowa; vice president, Russell A. Swartz, cashier, State Bank of Fayette; secretary-treasurer, Carl B. Schori, assistant cashier, First Na tional Bank, West Union, Iowa. Resigns Cashier Position With Andrew Bank Dewey F. Kuiken, formerly with the Delmar office of Jackson State Savings Bank of Maquoketa, Iowa, recently accepted the assistant cashiership with the Andrew Savings Bank of Andrew, Iowa, F. H. Daudel, K. L. Bowman, Wm. T. Burke, H. H. Gibson, J. H. Mohlenhoff, J M. Gleason and J. L. Ripple were elected directors. Eber V. Flint was re-elected cashier; Dewey F. Kuiken and Elmer R. Flint, assist ants, and Norma L. Roeder, book That “ EXTRA” Service Because we feel that business transacted at Dorothy Lindebak resigned as cash ier of the Farmers State Bank of Luverne, Iowa, recently. Miss Linde bak has been employed by the Farm ers State Bank since its organization in 1940. She was elected cashier of the bank in 1944 and is leaving the bank to be married. Jon A. Nelson of Los Angeles, Cali fornia, son of J. A. Nelson, president of the bank, has been elected cashier. Mr. Nelson came to the bank last Sep tember after spending two years in the Navy. Prior to entering the Navy he was employed in the material control and inventory accounting departments of Lockheed Aircraft Corporation of Burbank, California, and the Lockheed Overseas Corporation in northern Ire land from 1940 until his induction in 1944. In 55th Year a distance deserves added speed and accu The Oakland Savings Bank of Oak land, Iowa, is now starting on its 55th year, having been organized in 1892. Total assets now are substantially over $3,000,000. Officers and directors are as follows: W. L. Spencer, president; J. J. Evans, vice president and cashier; D. J. Spencer, assistant cashier; Harold Spencer, assistant cashier, and W. L. White and E. E. Spalti, directors. President Spencer reports business has been very active and earnings quite satisfactory. racy, this bank treats out of town items with extra care and attention. This is a fundamental principle of our cor respondent service. keeper. Deposits have reached the mil lion and a half mark and all in all a very good year has just been closed. W e invite your inquiry on your Sioux City correspondent needs. A. G. Sam, President Fritz Fritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier J. T. Grant, Vice President H. H. Strifert, Assistant Cashier J. R. Graning, Assistant Cashier R. E. Gleeson, Assistant Cashier J. Ford Wheeler, Auditor Loan Meeting in Creston G. I. loan appraisers and bankers from 10 counties in southwest Iowa met last month at the Iowana Hotel for a dinner and a discussion of G. I. loan operations in this area. Arnold Cook, president of the Cres ton Chamber of Commerce and a loan appraiser, and Ralph Meadows, cashier of the Iowa State Savings Bank of Creston and president of the Union County Bankers Association, were in charge of arranging the meeting. MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION On Women's Committee Mrs. Esta Conn, assistant cashier of the Security Savings Bank in Marshall town, Iowa, has been appointed to a sub-committee of the legislative com mittee of the Association of Bank Women. * * * ★ /f f & /O U Y C /f l / * * * YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 D O IN ’ W H A T C O M ES N A TU R ’LLY When a farmer needs additional money to buy land, to erect new buildings, to buy seed, equipment, breeding stock— funds for any number of sound in vestments that will help him increase the productivity of his farm— it’s only natural for him to come to you, his banker. Y o u r fa rm custom er is used to w o rk in g w ith sp e cia lists b e ca u se he fre q u e n tly n e e d s e x p e r t h elp in solving m an y o f his p ro b le m s. His v e te rin a ria n , county a g e n t, a n d s e e d - a n d - f e e d d e a le r a r e r e p r e s e n t a t iv e o f those he d e p e n d s on. A n d , n a tu r a lly , he d e p e n d s on you fo r fin a n c ia l h e lp . W ith y o u r h e lp , y o u r a d v ic e , he is a b le to do a m ore p ro d u ctive jo b o f fa rm in g . And it’s just as natural for you, in turn, to come to Marquette for help in handling overline loans to farmers . . . as well as loans for other local enterprises. Marquette is ready, too, to cooperate with corre spondent banks in providing credit information, trust service, a depository for the safe-guarding of securi ties, foreign remittance-and-collection service, and to act as agent in the purchase and sale of government securities. Marquette has increased the facilities of its Department of Banks and Banking . . . in order to serve you and your customers better. TH E S T R O N G https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F R I E N D OF THE I N D E P E N D E N T B A N K E R Northwestern Banker, March, 1947 80 Iow a News ton'll Groups i and I t M e e t in Sioux t it if und Hurl in ifton Nearly 900 Bankers and Their W ives W ere in Attendance at Both Meetings OWA bankers from opposite corners of the state held two group meetings last month, Sioux City being host to members of Group One, and Burling ton entertaining bankers of Group Eleven. A. E. Muir, president, Onawa State Bank, was named chairman of Group One, with Henry J. Harms, president of the LeMars Savings Bank, serving with him as secretary. Group Eleven elected Dale Kelley, cashier of the Henry County Savings Bank, Mt. Pleasant, as its chairman, and Frank C. Crone, president of the National Bank of Washington, was named! secretary. With odd numbered Iowa groups electing officers in odd years, the above officials will serve for a two-year term. Registration for Group One at Sioux City came close to the 600 mark, with about 200 of that number being ladies. This is not a record for a Group One meeting, but is well toward the top. Group Eleven tallied about 250 regis trants, including women. Attending both meetings, and taking part in the programs were Frank Warner, secretary of the Iowa Bank- ers Association; N. P. Black, Iowa su perintendent of banking; E. L. Jen kins, in charge of the Iowa banks insurance program; and Walter T. Rob inson, loan guarantee officer of the Veterans Administration. Harold Brenton, president of the Iowa Bankers Association, was unable to attend either meeting. Secretary Warner discussed the sev eral association sponsored bills which have been introduced into the Iowa legislature, among them a bill permit ting Iowa"banks to destroy old records after keeping for 11 years, and a meas ure permitting banks to operate on a five-day week. As this is written the record destruction bill has been signed by the governor, but the five-day week measure met strong opposition in the Iowa Senate, and had not received enough support to pass that branch of the legislature. Superintendent Black reported Iowa banks in the best condition in their history, with reserves at the year-end setting a record of $1,541,000,000. Last year loans in Iowa banks increased 28 per cent, Mr. Black said, even though farm loans were not among those showing an increase. Bankers at both meetings kept Wal ter Robinson busy answering their questions on details of G. I. loans. On the first of last month the Iowa office under the supervision of Mr. Robin son, had processed nearly 15,000 G. I. loans of all types—business, farm, and home. Different arrangements for program and entertainment are followed by Groups One and Eleven. Group One prefers to start their festivities with a luncheon, followed by a social hour, and then a banquet in the evening, closing the meeting. Group Eleven starts off with a social hour, buffet supper, and dancing the evening before the meeting day; the following morning is devoted to regis tration and visiting, with the program following the luncheon, and the meet ing adjourned about 4 p. m. Ed Ebersole, vice president and cashier of the State Central Savings Bank, Keokuk, usually designs the for mat for the Group Eleven program, and this year he called it “ Southeast Iowa’s Greatest Attraction—Produced AI the hum lironp Meetings------ ► PICTURED on the opposite page are a number of those attending the annual meetings of Groups One and Eleven of the Iowa Bankers Association. Reading from left to right they are: 1. Wesley Swiler, cashier Burlington Savings Bank; and N. P. Black, Iowa commissioner of banking. 2. Charles F. MacLellan, Manufacturers Trust Company, New York; and Richard W . Yerg, assistant cashier Chase National Bank, New York. 3. Fred. Cummings, assistant cashier Drovers National Bank, Chicago; Mrs. Carl Fredricksen, whose husband is president of the Live Stock National Bank, Sioux City; and Mark Wilson, vice president of the Live Stock National Bank. 4. A1 Junge, assistant cashier Northwestern National Bank, Minneapolis; G. C. Winter, president First National Bank, Armour, South Dakota; and J. W . Bryant, vice president Com mercial Trust & Savings Bank, Mitchell, South Dakota. 5. Henry Visser, cashier First National Bank, Hawarden, and immediate past chairman of Group One; C. R. Gossett, presi dent Security National Bank, Sioux City; H. N. Boyson, vice president Merchants National Bank, Cedar Rapids; and A . E. Muir, president Onawa State Bank, and now chairman of Group One. 6. E. A . Ebersole, vice president and cashier State Central Savings Bank, Keokuk; and Everett Griffith, vice president Iowa-Des Moines National Bank & Trust Company. 7. Carl Bloom, First National Bank, Omaha; Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and Tom C. Cannon, midwest manager St. Paul Terminal Warehouse Com pany, Des Moines. 8. Dale Kelley, cashier Henry County Savings Bank, Mt. Pleasant, and new chairman of Group Eleven, prepares to chop down the cherry tree, with Mrs. Leo Welch and Mrs. Hoyte Tague, of the Hanna-Kramer Company, Burlington, as his charming audience. 9. Group One bankers consult Walter Robinson (seated le ft), G. I. guarantee loan officer for Iowa, on some of the G. I. loan problems. 10. Horace Smith, Scarborough & Company, Des Moines; Carl Mayle, The Todd Company, Des Moines; and Phil Lyster, De Luxe Check Book Company, Cedar Rapids. 11. R. E. Hunt, assistant cashier Northern Trust Company, Chicago; Robert Root, Des Moines, who hasn’t missed a Group Eleven meeting for twenty years; M. C. Hook, Jr., assistant vice president Mississippi Valley Trust Company, St. Louis; and J. C. Blackford, manager personal loan department Union Bank & Trust Company, Ottumwa. 12. M. J, Grogan, executive vice president and cashier N a tional Bank & Trust Company, Chariton; L. Nevin Lee, vice president Bankers Trust Company, Des Moines; C. R. Colton, vice president and cashier Fidelity Savings Bank, Ottumwa; and O. F. Spear, assistant cashier Fidelity Savings, Ottumwa. 13. T. R. Richardson, assistant cashier Mediapolis Savings Bank; F. H. Riepe, cashier Danville State Bank, A. A . Jackson, cashier Farmers Savings Bank, Kalona; and E. W . Jones, vice president Iowa-Des Moines National Bank & Trust Company. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i l \ } jêêT * i : ¡| li i 82 Iowa News by Chairman Frescoln and Secretary Kelley, with Permission of George Washington.” The program was com posed of two acts, act one taking place the evening before the meeting, and act two being the meeting itself. /Pear E d ito r: "Effectiveness and Clarity" to Stalin for a couple of days and tell him what we think of his political set-up. He also should start a move for a constitu tional amendment to return every foreigner from every undesirable foreign country and let no more in America. Sterilize or segre gate every undesirable citizen now in the U.S.A. Look after our own business and quit worrying about a lot of foreign no goods under various names and royal blueblood degenerated human trash that has descended to rule over the various hodge podge human apes.” “ As an economist or a statesman I should probably make a good modiste, so my endorsement of your three letters on pages 10 and 11 in “ Across the Desk from the Publisher” in your February issue of the N orthwestern B anker has little value from the point of view of their soundness; but as a writer I cannot refrain from com mending you on their effectiveness. They are splendidly written and with a clarity that one does not often find in bankingmagazine editorials.” Emil C. Junger, President Soldier Valley Savings Bank, Soldier, Iowa. II W. Graham, Gray Ro ge r s , Advertising, 12 South Twelfth St., Philadel phia, Pa. Editor’s Note: Thanhs very much, Mr. Graham. Editor’s Note: Our world problems are indeed complex and let’s hope the U.S.A. has statesmen able to solve them. "Look Forward" “ I always look forward to reading the N orthwestern B anker , and will hope to see you at some o f the meetings in the near future.” G. L. Hill, Cashier Sac City State Bank, Sac City, Iowa. (Continued from page 11) enterprises, has been abundantly proved by the development of growth and strength. “ The period of resurgence affords a lot of satisfaction in retrospect, but I hope I do not live long enough to go through another like it.” Guy W. Cooke, 728 Colfax Street, Evanston, Illinois. Editor's Note: Thanks very much Guy, because as former advertising manager of the First National Bank of Chicago and a past president of the Financial Advertisers Association, we prize your comments and suggestions at any time. Garton Leaves Bank George Garton, who has been em ployed by the Citizens State Bank of Humeston, Iowa, for the last twentyfive years, resigned his position and will retire from the banking business. He and several of the other stockhold ers sold their stock to L. J. Lyon and C. F. Long of Union, Iowa, and H. E. Long of Eldora, Iowa. At a special meeting of the board of directors, K. J. Lyon was elected as cashier to re place Mr. Garton. H. E. Long of El dora was elected executive vice presi dent to replace D. S. Moore. Mr. Lyon has had ten years’ experience as a banker. "A Real Tonic" “ It is indeed refreshing and a real tonic for any American citizen to read your three editorials in the February issue of the N orthwestern B anker . President Tru man has had some business experience and thus should be a better all-around execu tive than was F.D.R., but Mr. Truman is under promise to carry out New Deal poli cies and most of them are vicious and humbuggish. I f George C. Marshall reads your article on the Russian communist and his skunk relatives who live in the TJ.S.A. he should have enough backbone to stand up Leaves Moville Bank Harry Junck has resigned as assist ant cashier of the First Trust and Sav ings Bank of Moville, Iowa, and George Coker has been elected to take his place. Mr. Coker will have charge of the Lawton branch of the bank. Leslie Quintard, Jr., has been transferred from the Lawton bank and is em ployed in the Moville bank. Frank Zellmer has been appointed to fill the vacancy on the board of directors of the bank. The vacancy occurred as a result of the death of Mr. Zellmer’s father a short time ago. TH E O JV TM M TA L C BANK & TRUST COMPANY President of C. of C. O F M E IE Y O R K Harry E. Ross, president of the City National Bank of Shenandoah, Iowa, was elected head of the Chamber of Commerce at a directors’ meeting last month. Joe Ennis was named vice president. Clair E. Russell, who has been execu tive secretary since 1931, was elected for the seventeenth time. MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION D id you know there’s a gap in your Cash Letter protection that you could “ drive a truck through?” A sk us how to bridge it without costing you a cent. FIRST NATIONAL BANK BUILDING Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Scarborough & Company CHICAGO 3, ILLINOIS Insurance Counselors • STATE 4325 I to Banks https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83 te DES MOINES.... Our Complete Facilities and Sincere Interest Assure the Finest Correspondent Service Valley Bank andTrust Company W ALNUT AT FOURTH, DES MOINES Frederick M. Morrison, President Winfield W . Scott, Senior Vice President J. R. Astley, Vice President Edward P. Kautzky, Vice President Roy E. Huber, Vice President F. M. Thompson, Cashier Ray L. Thompson, Asst. Vice President Carl W . Altman, Asst. Cashier George W . Gill, Asst. Cashier M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n Northwestern Banker, March, 1947 84 Iow a N ew s Heads Luana Savings Bank Story County Officers The Story County Bankers Associa Earl F. Miller was chosen president tion held its annual dinner meeting of the Luana Savings Bank at the an last month in Nevada, Iowa, and Dan nual meeting of directors and stock E. Peters, cashier of the Maxwell State holders recently, replacing J. T. Bank at Maxwell, was elected presi Humphrey. dent. Mr. Peters succeeds Henry Mar tin, cashier of the Union Story Trust Other officers named were George and Savings Bank of Ames, who Heins, vice president; Cornell Riveserved as president last year. Edwin land, cashier, and Ilaverne Seeland, Hauge of the Story County State Bank assistant cashier. Other directors at Story City was elected vice presi named were Alvin Johanningmeier, dent, succeeding Mr. Peters, and C. H. John A. Lenth and Lorenz Doerring, Budolfson, assistant cashier of the replacing Mr. Humphrey. College Savings Bank in Ames, was A 6 per cent dividend was declared elected association secretary, succeed for the year. ing Mr. Hauge. in Carroll County Bank Eldon Hess began his duties as as sistant cashier at the Carroll County State Bank in Carroll, Iowa, last month. Since April 1, 1946, he had been manager of the Arcadia branch of that bank. Leo C. Schweers of Arcadia now is manager of the branch. Fred D. Cummings Promoted At a director’s meeting of the Dro vers National Bank, Chicago, held re cently, Fred D. Cummings was pro moted to assistant cashier. Fred, as he is usually known by his Service Beyond the Routine https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W e enjoy going out of our way to be helpful to correspondents. This often means giving extra ordinary service. No matter how small your bank, we feel that you are entitled to every assistance. • • If you haven't seen our new home, we'll take pleasure in showing you every department. (caffijCU M TT X N ATIONAL RANK Member Federal Deposit Insurance Corporation FRED Named D. C U M M IN G S Assistant Cashier many banker friends in the middle west, has been connected with the Drovers National Bank since 1930. He volunteered for submarine duty in January, 1942, and saw much active service. He returned to the Drovers National Bank in 1945 where he re sumed his duties as representative in the middle west. Other promotions include Rudolph J. Wind to assistant cashier, Harold F. Edwards as auditor, and Lester C. Wetzel was appointed assistant cash ier of the Drovers Trust and Savings Bank. The directors of the Drovers Na tional Bank voted to transfer $250,000 from undivided profits to the surplus account. This makes a total capital of $1,000,000, and surplus account of $1,250,000. Federal Reserve Director Clarence W. Avery of Detroit, Mich igan, has been named chairman of the board of directors and federal reserve Northwestern Banker, March, 1947 Iowa News agent of the Federal Reserve Bank of Chicago. Mr. Avery, president of the Murray Corportion of America, Detroit, also was named a director to replace W. W. Waymack, former editor of the Des Moines Register and Tribune, who re signed to become a member of the Atomic Energy Commission. H eads Bank Board To fill the vacancy on the official staff of the Inter-State National Bank of Kansas City, caused by the death of George S. Hovey, chairman, W. C. Shank, who for many years has been a member of the board of directors, has been elected to fill the office of chairman of the board. Scott W. Ho vey, son of George S. Hovey, was elected to fill the vacancy on the board of directors in his father’s place. Mr. Hovey is an attorney for Armour and Company in Chicago, Illinois. Joins A m erican National partment of Public Works and Build ings. Mr. Hemminger graduated from the University of Illinois School of Jour nalism in 1930 and from the Graduate School of Banking at Rutgers Univer sity in 1946. F.A .A . Resolutions At its mid-year meeting held in Philadelphia last month, the board of directors of the Financial Advertisers Association passed a number of reso lutions submitted to it by the associa tion’s resolutions committee. Members of this committee are H. C. Nicholls, cashier, First National Bank, Madison, Wisconsin, chairman; Merrill Ander- CH'CAcö? ’•IL'ii\OIs 85 son, president, Merrill Anderson Com pany, New York; Hugh J. Bernard, vice president, Second National Bank, Houston, Texas; L. L. Matthews, pres ident, American Trust Company, South Bend, Indiana; and Ray K. Meixsell, public relations director, Troy Savings Bank, Troy, New York. The resolutions in substance were as follows: (1) In recognition of the importance to bank public relations of day-to-day contact between bank personnel and the public, that 25 or more bank per sonnel directors from different areas be invited to the next annual conven tion of the association. (2) That since the banks of the Á Lawrence F. Stern, president of the American National Bank and Trust Company of Chicago, announces the appointment of C. A. Hemminger in charge of advertising and public rela tions. Mr. Hemminger, formerly advertis ing manager of the Bankers Trust THE DROVERS “ YELLOW BOY' ADVICE IS W ELL KNOW N TO BANKERS WHOSE CUS TOMERS SHIP LIVESTOCK TO CHICAGO. IT IS THE SYMBOL OF FAST, FRIENDLY SERVICE IN COLLECTING LIVESTOCK PROCEEDS. W ith c. A. H E M M IN G E R A m erican N ational, C hicago Company, New York City, assumed his new position on March 1st. Before joining the Bankers Trust Company he was associated for three and onehalf years with the New York State Bankers Association in New York City as director of public relations. Prior to that he was director of pub lic information for the Taxpayers’ Fed eration of Illinois and director of pub licity for the state of New York De https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DRGYERG NATIONAL BANN DROVERS TRUST 0 SAVINGS BANK Northwestern Banker, March, 1947 86 Iow a News country as of January 25, 1947, have made about 642,000 G.I. loans totaling $3,404,284,000, banks be urged to con tinue to make and encourage all sound G.I. loans and to educate veterans and the public generally in the factors that make credit a constructive force and keep it from becoming a burden and disservice to the borrower. (3) That the cooperation of the offi cers of many state banking associations with the Financial Advertisers Asso ciation be recognized and warmly en dorsed, and that association members be urged to continue to work with their, state associations in building public appreciation of the services and achievements of banks. (4) Since the present economic trends highlight the need for indi vidual thrift, that the vigorous pro motion and encouragement of system atic savings and continued public edu cation on the importance of thrift be recommended to all banks. (5) That in recognition of the part played in the development of financial advertising by Fred W. Ellsworth, one of the charter members of the associa tion and its fifth president, who re cently retired from banking, he be elected an honorary life member of the association. Buys Lenox Interests B. P. St. John and his associates have bought Will Maddens’ interest in the First National Bank in Lenox, Iowa. Mr. Madden is retiring as presi dent and will withdraw from active duty at the bank. Mr. St. John has been elected president and Miss Retta Goodale, cashier since the bank was reorganized in 1934, will be retained in that post. Mr. St. John has been cashier of the Okey-Vernon National Bank in Corn ing, Iowa, for a number of years. J. E. Schaffer, cashier of the Central Bank and Trust Company of Elkader, Iowa, was named president of the Clayton County Bankers Association recently. He succeeds A. J. Kregel of Garnavillo. Vice president is G. E. Dunfrund, cashier of the Union Bank and Trust Company of Strawberry Point. Norris Kuenzel of the Garnavillo Savings Bank was re-elected secretary-treas urer. An address was given by Marvin Selden, vice president of the Mer chants National Bank of Cedar Rapids. M John Scott, Jr., of the Morningside State Bank is spending a couple of months in Oklahoma and points fur ther south, on a little vacation trip. stren gth o f 6 0 lbs. p e r sq u a r e inch. 'll* C. L. DOWNEY C o^vp^ HANNIBAL, MISSOURI W o à ltli J la ’u fe ii M j/U . o f C o in 'll/'tafXfx&U Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R A L P H R. B R U B A C H E R R em od elin g T o y N ational Bank cated. One suite of offices will be occupied by the personal loan depart ment, with K. D. Shinkle, assistant C. EIDSMOE, president of the ♦ Woodbury County Savings Bank in Sioux City, was elected president of the Iowa Mortgage Bankers Asso ciation at the annual meeting of the group in Des Moines last month. Clyde Roe of Sioux City was named a re gional vice president, and Robert Turner of Council Bluffs was named to the board of governors. Other re gional vice presidents include Douglas Swale of Mason City and Walter Hall of Council Bluffs. The association went on record as opposed to a pro posed measure in the state legislature which would assess a 1% per cent tax on filing of any real estate mortgage. F r e e S a m p le s W r it e t o d a y , to D e p t. G plans for offices on the second floor of the building in which the bank is lo- Clayton County Officers S io u x C ity N e w s N orm al a n d -eversed fig u re s, p lu s d if feren t co lo r fo r e a c h den om in ation , in stan tly d isclo se s v a lu e o f p a c k a g e , in a n y p osition . S p e c ia l c le a n , sa n ita ry , v e g e t a b le a d h e s iv e stick s in stan tly . Announced by President Ralph Brubacher of the Toy National Bank are MERCHANTS MU T U A L BONDI NG 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. W e are p roud o f ou r hundred and FO R S A L E — Safety Deposit Boxes, heavy duty— best made-— a nest of 100 in various sizes. Dimensions: 22 inches deep, 5 0 % inches high, 4 5 % inches wide. Also base fo r same which is not included in above measurements. Two- keys and Master for all boxes. Condition the best. W ill sacrifice. Purchased from liquidated bank. Reason for selling, un able to use on account o f space. Inspec tion and correspondence invited. W ill trade for smaller nests, on equitable basis. Farmers Savings Bank, Massena, Iowa. fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. • Write to E. H. WARNER Secretary and Manager Io w a N e w s cashier, in charge. John G. Gordon will be assistant manager. The second suite of offices in the new upstairs location will be used for the bank's FHA and G. I. loans service, with V. H . Bunkers, treasurer of the Farmers Loan & Trust Company in charge. Both suites will be furnished in modern design and completely air conditioned. Elected President Wesley T. Heckt was elected presi dent of the Grundy National Bank of Grundy Center, Iowa, at its annual meeting. He succeeds the late Ferdi nand Henze. A 7 per cent dividend was paid to stockholders. Dale Bee, who was elected a direc tor to fill the vacancy caused by the death of Mr. Henze, is cashier, and William Groote is vice president. Leon W itter Re-elected Leon A. Witter was re-elected presi dent of the Farmers Trust and Sav ings Bank of Spencer, Iowa, at a meet ing of the 1947 board of directors of that institution. Other officers named are: J. W. Edge of Tipton, first vice president; R. M. Tuttle, second vice president; Karl Tuttle, cashier; Robert Lexvold, first assistant cashier, and Albert Prechel and J. E. Shelledy, Jr., assist ant cashiers. Leon Walker was named assistant cashier and manager of the Rossie office, and Frank Wood as assistant cashier and manager of the Gillett Grove office. ball to figure out that 1946 ivas a pretty good year for this community . . . and this bank. Our statement of con dition shows that. Deposits are up. Cash and Government Bonds total over two and a quarter million dollars. And it takes no crystal ball to tell that this bank is proud to have a part in local progress the past year; that toe appreciate your business and have enjoyed every opportunity we have had to be of service; and that during 1947 (which is our 55th year) we pledge better service, if possible, than ever before. No crystal ball is needed to reveal the fact that 1947 promises to be a year of great possibilities. Indications are that production will speed up— this will aid in stabilizing prices . . . business in general should be good. You, no doubt, will have more money to handle. This means you’ll have in creased need for dependable banking service. And you don’t have to have a crys tal ball tell you that you’ll find that service at the Oakland Savings Bank. Our best recommendation, of course, is satisfied customers. Some have banked here for 25 to 40 years. Then 87 there are the young men and women who are old friends but new custom ers. They’re all satisfied with Oakland Savings Bank Service. And so . . . include the Oakland Sav ings Bank in your plans for 1947. Come in, sit down, let’s talk things over. It takes no crystal ball to predict you’ll find us ready with ALL banking facil ities to meet ALL your needs . . . plus dependable personal service to assure your satisfaction. P. S. Know anybody who wants to buy a slightly used, old model, crystal ball? New Purchase Plan An entirely new time purchase plan for buyers of agricultural implements is now available through neighborhood banks and implement dealers, accord ing to R. F. Given, vice president and general manager of the American Bank Credit Plan, 103 Park Avenue, New York City. “ The American Bank Credit Plan will be a boon to the entire industry.” said Mr. Given. “ The competitive na ture of this industry has driven rates down so low that dealer reserves have been eliminated entirely in most cases. This disregard for the dealer’s accus- W e believe our location, experience and facilities make this a desirable connection to work in full cooperation as your correspondent in Eastern Iowa and Western Illinois. And, most important is our personal interest in every account it is our privilege to serve. Bank Letter ELOW is a letter W. L. Spencer, BBank, president of the Oakland Savings Oakland, Iowa, sent to people of that community early this year. It is a good illustration of customer and prospect contact through the use of direct mail. The letter reads: W E’VE BEEN GAZING INTO OUR CRYSTAL BALL . . . . . . It’s an old model, of course ( been difficult to get a new one, you know), but it’s one of the better pre-war models. Of course, we don’t need a crystal FI FTH AVENUE SOUTH-226 NATIONAL BANK L & n A m , S c r iv a . Member of The Federal Deposit Insurance Corporation THE T O Y N A T I O N A L BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Best in Banking For People .. . For Business . . . F or Banks In the heart o£ d o w n t o w n Sioux City Member F.D.I.C. Northwestern Banker, March, 1947 88 Iowa Mew* tomed rights and well merited reserves consistent with his liability on the paper has so discouraged dealers that time sales of agricultural implements have not been developed on a basis comparable with the automobile in dustry. Unquestionably, the dealer needs a plan that is salable and com petitive but still protects his reserves Northwestern Banker, March, Ì947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bonds have increased $35,685,923 since December 31, 1945. Loans have increased $64,939,318— 28 per cent over December 31, 1945. Other Real Estate has been almost entirely eliminated, a reduction of $156,260 since December 31, 1945, leav ing only $46,806 invested in Other Real Estate. —and one that assures him of floor plan financing with dependable and continuous insurance coverages. The agricultural implement buyer wants a plan that will give him dignified lowcost bank credit and the same ‘Safe Credit’ features that have protected automobile buyers for many years. The American Bank Credit Plan meets these requirements.” Mr. Given states that the extension of the American Bank Credit Plan to all communities throughout the coun try is being handled as rapidly as possible, and agricultural neighbor hoods requesting preferred attention will be given special consideration. Named Secretary Frank K. Houston, chairman of the board of The Chemical Safe Deposit Company, announces that Miss Fran ces M. Boos has been appointed secre tary succeeding J. Lowry Dale who will remain as vice president. Miss Boos will continue in her capacity as assistant treasurer. Iow a Y early Report The following is a consolidated re port of 552 Iowa chartered banks at the close of business December 31, 1946, issued by Newton P. Black, superintendent of banking in Iowa: American Express P. W. Bradford, general manager of American Express, London, and Harry Hill, general manager, Paris, have been elected vice presidents of The American Express Company, Inc., Ralph T. Reed, president, announced. Mr. Reed also announced appoint ment of J. J. Bulger and Demetri Guirdjis as assistant vice presidents. In addition, H. D. Davis, N. F. Page and Howard L. Clark were named assistant vice presidents of the Ameri can Express Company. Cash and U. S. Government Bonds $1,181,213,018 An increase of $28,087,718 over De cember 31, 1945. Total Assets $1,541,568,103 An increase of $104,801,259 over De cember 31, 1945. Total Capital Funds $78,769,950 An increase of $6,911,114 over De cember 31, 1945. Total Deposits $1,461,941,205 An increase of $97,573,635 over De cember 31, 1945. This increase was made with a decrease in United States Deposits amounting to $108,753,623, which means the deposits direct from Iowa have increased $206,327,258 over December 31, 1945. Eye to Eye “ Harold is awfully obstinate.” “ In what way?” “ It’s the hardest thing in the world to make him admit I’m right when he knows I’m wrong.” Investments in U. S. Government t h e p r in t e d m e s s a g e The Printed Message today is more powerful than ever before as a means of creating interest and insuring ac tion. Paper is the primary basis of such messages, and for better printing papers, consult this firm. ★ NEWHOUSE PAPER COMPANY “ Better Printing Papers” M inn eapolis S t . Paul Des M oines M oline Dubuque Iowa News School to Increase Three hundred sixty-five students and faculty can be accommodated by the increased facilities provided for the School of Banking at the Univer sity of Wisconsin, sponsored by the Central States Conference, F. H. Elwell, Dean of the School of Commerce of the University of Wisconsin, an nounced. This represents an increase of 95 per cent over the student body and faculty of the school last year. The quota for the freshman class for the 1947 session, which will be held June 2nd to 14th at Madison, Wiscon sin, has been filled for the past month, and there are a number of applicants who have been notified that their names have been placed on the wait ing list, according to Harry C. Hausman, chairman of the board of trustees of the school and secretary of the Illi nois Bankers Association. In the event there should be any cancellations, prior to the opening of the school June 2nd, men on the reserve list will be ad mitted. Those on the reserve list not admitted this year will be given first consideration for enrollment next year. It is suggested by Wall G. Coapman, registrar of the school and secretary of the Wisconsin Bankers Association, that bankers desiring to enter the school as freshman for the 1948 session should begin now to make their plans and forward their applications to him at 312 East Wisconsin Avenue, Mil waukee 2, Wisconsin, if they want to make sure of their enrollment next year. Government Relations Appointment of Walter E. Bruns as vice president in charge of govern mental relations for the Bank of Amer ica has been announced by L. M. Giannini, -president. Bruns will make his headquarters at the San Francisco head office of the bank. President Giannini states that the extensive complexities of today’s rela tions between financial institutions and government now cover such a wide range of activity that it has be come desirable to coordinate such matters in the Bank of America under one administrative officer. One a Day During the first six months of the current association year, ended Feb ruary 28th, there were 229 new mem ber banks enrolled in the American Bankers Association, according to a semi-annual report by Max Stieg, chairman of the A.B.A. organization committee, and cashier, Dairyman’s State Bank, Clintonville, Wisconsin. This record of better than one new member bank each day is substantially https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis above that of the similar six months a year ago, and brings A.B.A. member ship to more than 96 per cent of all the banks in the nation, representing more than 99 per cent of total banking resources. During the six months beginning September 1, 1946, and ended Febru ary 28th, there were 189 banks and 40 branches which became members of the association, compared with 125 banks in the six-month period a year ago. Chairman Stieg said that A.B.A. membership increases are encourag ing, and he praised particularly the work which has been done in Georgia where the A.B.A. membership percent age advanced from 86 to more than INDEX OF ADVERTISERS MARCH, 1947 A Allied Mutual Casualty Company..............53 Allison-W illiam s Company .........................40 Allyn, A. C. and Company...............................30 American Express Company........................ 74 American National Bank and Trust Co. .61 II Ballard-Hassett C om p an y.............................40 Bank of America................................................45 Bankers Trust Company— Des M o in es... 91 Bankers Trust Company— New Y o r k . . . . 10 Banks, Wm. H., Warehouse, Inc..................48 Becker & Cownie, Inc.......................................34 Becker, A. G. and Company, Inc..................32 Beh, Carleton D., Company...........................34 Blair, William and Company...................... 30 Byllesby and Company..................................... 32 C Central Hanover Bank and Trust C o .... 6 Central National Bank in Chicago...........44 Central National Bank and Trust Co....1 4 Central States Mutual Insurance A s s n ...53 Chase National B ank...................................... 4 City National Bank— Clinton........................ 87 City National Bank and Trust Company — Chicago ........................................................ 48 City National Bank and Trust Company— Kansas City .................................................... 72 Commerce Trust Company.............................75 Continental Bank and Trust Company.. 82 Continental National Bank— Lincoln. . . . 68 Crabbe, Thomas L. and Company..............39 II Davenport, F. E. and Company............71-78 DeLuxe Check Printers, Inc........ ..................54 Des Moines Building, Loan and Savings A sso cia tio n ...................................................... 88 Douglas, John and Company, Inc............... 70 Downey, C. L. Company................................. 86 Drovers National Bank................................... 85 E Employers Mutual Casualty Company. . .50 F First National Bank— Chicago.................... 24 First National Bank— Lincoln.................... 73 First National Bank of Minneapolis. . . . 56 First National Bank-—Omaha...................... 68 First National Bank— St. Joseph................ 71 First National Bank— Sioux C ity..............78 First Trust Company of Lincoln................75 First Wisconsin National B ank.................. 43 G Greenway and Company................ 41 Guaranty Trust Company...............................49 II Hammermill Paper Company...................... 27 Harris Trust and Savings B ank.................. 26 Home Insurance Company............................ 5 I Inter-State National Bank.............................70 Investors Syn dicate......................................... 34 Iowa-Des Moines National Bank and Trust C om p an y............................. 92 Irving Trust Company.................................. 8 89 96 per cent through securing A.B.A. memberships from 38 banks. In mak ing this record A.B.A. State Vice Presi dent Sherman Drawdy carried on a vigorous campaign which included a 1,000-mile auto trip and the cooperation of leading bankers in his state. Mr. Drawdy is president of the Georgia Railroad Bank and Trust Company, Augusta, Georgia, and immediate past president of the Georgia Bankers Asso ciation. Just B ein g Practical Our grandmothers believed that there was destiny that shaped our ends, but the modern girls place more faith in girdles. J Jamieson and Company...................................31 Journal of Commerce....................................... 55 H Klipto Loose Leaf Company........................ 88 Koch B roth ers.................................................... 88 L LaMonte, George and Son.............................. 3 Lawrence Warehouse Company.................. 42 Lessing Advertising Company.................... 88 Live Stock National Bank— Chicago.........25 Live Stock National Bank— Omaha.........76 Live Stock National Bank— Sioux C ity .. 62 M Manufacturers Trust Company................. 7 Marquette National Bank............................... 79 Merchants Mutual Bonding C om p an y... 86 Merchants National B ank.............................. 2 Merrill Lynch, Pierce, Fenner & Beane. .31 Minneapolis Moline Power Implement Company .......................................................... 60 Minnesota Commercial Men’s Assn........... 58 Mississippi Valley Trust Company............47 N National Bank of Commerce........................ 72 National Company of Iow a.............................38 National Company of Omaha.........................39 National Surety Corporation........................ 64 Newhouse Paper Company.............................88 Northern Trust Company...............................46 Northwestern National Life Insurance Company .......................................................... 55 o Omaha National B ank..................................... 23 P Policyholders National Life Insurance Company .......................................................... 52 Priester and Company..................................... 38 Public National Bank and Trust C o . . . . . 41 Q Quail and Company......................................... 36 It Ravenscroft and Company.............................40 Royal Bank of Canada.................................59 S St. Paul Terminal Warehouse Company. 9 Solomon Bros. & Hutzler.................................35 Scarborough and Company.............47, 55, 82 Security National Bank— Sioux C i t y .... 84 Shaw, McDermott and Company.................. 36 Sparks and Company....................................... 38 Stock Yards National Bank— O m a h a .... 66 Swaney, Lynn and Company........................ 32 T Toy National B ank............................... 87 U United States National Bank— O m a h a... 69 V Valley Bank and Trust Company..............83 w Walters, Charles E ...........................................70 Western Mutual Fire Insurance Co......... 54 Wheelock and Cummins, Inc........................35 White-Phillips Company, Inc......................41 Wittenstein, M. and Company...................... 39 Wood, Harold E ................................................. 35 Northwestern Banker, March, 1947 90 In the DIRECTOR’S ROOM Scared to Death A New Yorker went to the moun tains for the first time. He left the hotel one morning to view the country side. In a few minutes he returned, his clothes torn, his face and arms scratched and bleeding. ‘‘What happened to you?” the hotel clerk inquired. “A little blacksnake chased me!” the man replied breathlessly. “But that little snake isn’t poison ous.” “Listen,” the man replied, “if he can make you jump off a 60-foot cliff, he doesn’t have to be!” Out for Lunch Bill was limping badly. “What’s up?” asked the foreman. “Hurt yourself?” “No, got a nail in my boot.” “Why don’t you take it out?” “What! During my lunch hour?” Smart Diagnosis “Your wife used to be terribly nerv ous. Now she’s cool as a cucumber. What cured her?” “The doctor did. He told her that her kind of nervousness was the re sult of advancing age.” More Bull The publisher of the N orthwestern B anker and a friend arrived in Mexico. Neither spoke a word of Spanish, but being hungry they headed for a res taurant. They wanted roast beef, but the waiter could not “compre.” “What are we to do?” asked the friend. “ I don’t know,” said the publisher. “ I’ll draw a picture of a cow.” He made an impressionistic sketch and marked “2” beneath it. The wait er looked, smiled a smile of comprehen sion and went away. Five minutes later he returned with two tickets to a bull fight. Good Sight Lawyer: “You say you were about 35 feet away from the scene. Just how far can you see clearly?” Old Farmer: “Wal, when I wake up I see the sun and they tell me that’s about 93 million miles away.” Northwestern Banker, March, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sourpuss Junk Man: “Any old beer bottles you’d like to sell, lady?” Old Maid: “Do I look as though I drank beer?” Junk Man: “Any vinegar bottles you’d like to sell?” To Follow Football Here is how to keep in touch with the referee and let you know what is happening, as you look down from row 875. 1. Military salute. He is whistling C O N V E N T IO N S April 13-15, A .B .A . Spring Council Meeting, French Lick, Indiana, French Lick Springs Hotel. April 14-19, Annual Group Meetings, South Dakota Bankers Associa tion. May 19-21, 56th Annual Convention, Illinois State Association, Chicago, Palmer House. May 13-23, Iowa (see page 77). Group Meetings, June 2-6, A .I.B . Annual Convention, Detroit, Hotels, Statler and BookCadillac. June 2-14, Central States School of Banking, University of Wiscon sin, Madison. June 11-12, Annual Convention, M in nesota Bankers Assn., St. Paul, Hotel St. Paul. June 16-17, Annual Convention, North Dakota State Association, Bis marck. June 16-28, Agricultural Credit School, Am es, Iowa State College. June 20-21, Annual Convention, South Dakota State Association, Sioux Falls. June 23-25, Annual Convention, W is consin State Association, Milwau kee, Hotel Schroeder. July 7-19, Agricultural Credit School, Am es, Iowa State College. September 29-October 1, A .B .A ., 73rd Annual Convention, Atlantic City, New Jersey. October 6-8, 61st Annual Convention, Iowa State Association, Des Moines, Hotel Fort Des Moines. October 6-9, Annual Convention, Fi nancial Advertisers Assn., New Y ork City, Hotel W aldorf. the Star Spangled Banner to himself. 2. Hands on hips. Is getting dis gusted with game. 3. Grasping one wrist. Wants to teach the crowd life saving. 4. Folded arms. Is strong, silent man. 5. Waving hands. Likes variety. 6. Hand over mouth. Stifling yawn. 7. Both arms over head. Thinks he is hearing broadcast. High-Powered Nonsense A tough employer noted for his en ergy saw a boy leaning idly against a packing case, whistling. “ How much are you getting a week?” he demanded. “Twelve dollars.” “ Here’s a week’s pay. Now clear out. You’re through.” As the boy pocketed the money, shrugged and strolled away, the busy man turned to the stockroom clerk. “How long has that kid been with us?” “ Him?” said the clerk. “ Oh, he just brought over a package of bolts and nuts.” Sounds Familiar Guide: “This castle has stood for three hundred years. Not a stone has been touched, nothing altered, nothing repaired or replaced.” Visiting Yank: “ Must have the same landlord we have.” New Twist Mrs. Bride: “ I’m getting ice from a new man, dear.” Husband: “What’s the matter with the old one?” Mrs. Bride: “ The new man says he’ll give us colder ice for the same money.” That Moron Again “ Have you heard the one about the goat-herder’s daughter who couldn’t get married?” “No, and why couldn’t she?” “ Oh, she couldn’t get anyone to stay with the kids!” 4 r r BROADENED CONTACTS... ...th a t help Iowa bankers meet BROADENED RESPONSIBILITIES A s the post-war industrial pattern of America begins to take shape— it becomes clear Iowa’s place in the pattern is destined for constantly increasing importance. In the past year, Iowa has been chosen as the location for 182 new industrial plants. Naturally, some of these plants are situated in cities that already have a nucleus of industrial activity. But many others are going into smaller cities and towns— centers where banking activity has previously been confined largely to agricul tural business. In every part of the state, Iowa bankers are proving entirely capable of meeting the broadened responsibilities brought about by Iowa’s broad ened industrial activity. In addition to extensive experience in all phases of agricultural financing, the Bankers Trust has been actively serving industrial accounts for many years. As a result, we are frequently able to help correspondent banks in meeting the broadened service requirements of increased industrial business. Member Federal Deposit Insurance Corporation Member Federal Reserve System BANKERS TRUST COMPANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6TH AND LOCUST DES MOINES BUILDING with Des Moines and lowa . . . f or 71 YEARS Iowa's progress has always been linked with money and financing. Sound and constructive banking is essential. For 71 years this Bank has cooperated with Iowa Banks and Bankers as their Des Moines correspondent. As opportunities have been presented, we have been pleased to join with Iowa Banks to meet the credit requirements of their customers. % Such cooperation has been offered as a helpful, constructive service to our correspondent banks. In no way do we wish to compete for the business be longing to them. Our objective will continue to be: Bank ing that is building Des Moines and Iowa. A STRON G, DEPENDABLE CO RRESPO N D EN T CO N N ECTIO N n i WÊMmmÊÊÈËÊÊïM I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i H 1 Member Federal Deposit Insurance Corporation r