View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

vey — Pag
■¡Í3í4®©ffií 'S
Federal Reserve Bank of St. Louis


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

JAMES E. HAMILTON, Chairman Executive
S. E. COQUILLETTE, Chairman of the Board
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
WALLACE S. HAMILTON, Building Manager

Cedar Rapids


Member Federal Deposit Insurance Corporation

Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.
Federal Reserve Bank of St. Louis




No other check paper even b e g in s
to have the recognition v a lu e this
Product has won through its w id e -'

d ~ b* ' ^ 9 bonks a n d
"Pora,-ns over th e p a s,

p st / 5 y e ars.

i ' « » * ' 1



For Samples of La Monte Safety Paper see your
Lithographer or Printer—or write us direct.

m 10t o w n . u

Federal Reserve Bank of St. Louis


C Q M P *

u ANO iRU5,‘
First a
a n k £ n u qt0WN

^gmjeMSESfiiîgroe* of—



•Mtv f tGHTj^/1?-?..

A Check Paper All Your Own
W h y not follow the lead of America's out­
standing banks and corporations? Let us
reproduce your trade-mark in the paper
itself. Such i n d i v i d u a l i z e d check paper pro­
vides maximum protection against altera­
tion and c o u n te r fe itin g -s a v e s banks
sorting tim e-h elp s prevent errors.


Northwestern Banker, March, 1947


A timely service extended to correspondents by the Chase is the study
and analysis o f a bank’s portfolio o f U . S. Government and other
Specific recommendations are made based upon the bank’s overall
investment position and particular requirements.
The experienced staff and specialized facilities long maintained
by the Chase for reviewing investments have proved valuable to banks
throughout the country.
Advice and information on investments is only one o f the many
helpful services that Chase offers to its correspondents.
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


Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis





Member Federal Deposit Insurance Corporation


"" '


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
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 ☆





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


Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis





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
Federal Reserve Bank of St. Louis


Banking Facilities
fo r Correspondent Banks




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.
Many years o f worldwide experience enable us to provide correspondents
with procedures requiring a minimum o f detail work on their part on transactions
involving Foreign Remittances, Letters o f Credit, Export Collections, etc.
Here is an excellent way for you to gain additional revenue and other collateral
benefits, to maintain existing relationships with old customers and to develop
business with new clients.
Your inquiries as to how we can work with you on Foreign Banking trans*


actions are invited.

Manufacturers Trust Company
Principal Office and Foreign Department: 55 Broad Street, New York 15, N. Y.


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


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
Federal Reserve Bank of St. Louis

One Wall Street




New York 15, N. Y.




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.
Federal Reserve Bank of St. Louis

— Iowa Office —

— Other Offices —

515 Iowa-Des Moines National Bank Building



"The only company engaged in Field Warehousing with an office in Iow a "

Northwestern Banker, March, 1947


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
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
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

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis






H ea r E d ito r

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

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.”

Robert Lindquist, Vice Presi­
dent, LaSalle National Banlc,
Chicago, Illinois.

"One of the Outstanding
“ 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.”

Charles H. Griesa, Vice Pres­
ident, The Inter-State Na­
tional Banlc, Kansas City,
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.”

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.......


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


The Country Banker Can Be a Good Life Salesman........................
...................................... ,....................... ...................... George I. Beasing 51
What Do You Think?..........................................................

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.............................................................................. —


"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)
Federal Reserve Bank of St. Louis

Short Stories— Supposed to Be Funny.......................................... 90
Conventions .......................... .....................-...................... .............. —- 90
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
Associate Publisher


Associate Editor

Associate Editor

Advertising Assistant


Circulation Department

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

MUrray Hill 2-0326

northwestern Banker, March, 1947

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

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
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
“ 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.

“ 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:




1936 .............................. 36%
1945 .............................. 27
......................... 26
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
Federal Reserve Bank of St. Louis

Northwestern Banker, March, Ì947



"9 < u u a i fy 'U e tu iL f' R a n k "

T he C entral N ational
2 > ed
M E M B E R 9F E D E R A L

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


o i+ te d ,



Federal Reserve Bank of St. Louis


Northwestern Banker, March, 1947

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis

B u ll F igh ts and
Banana B oats
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
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
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
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.
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
“ 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.




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
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
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
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
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
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)
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.
“ 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.
Bananas on conveyor at Port of
Brownsville on their way across the dock
to waiting trucks, autos and trains.
Bananas being loaded in a big truck
at the end of the conveyor which brought
them from the boat.
Northwestern Banker, March, 1947


W h a t T h ey Saht
thet 'ou n tr y


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:


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,

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
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:
R. L. Smith, president, Stock Yards National Bank, South
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
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
C. W. Bailey, president, American Bankers Association,
Dunlap, vice president, Commerce Trust Company, Kansas City.
and president, First National Bank, Clarksville, Tennessee; and
H. N. Thomson, vice president, Farmers & Merchants Ray R. Ridge, senior vice president, Omaha National Bank.
Bank, Presho, South Dakota; George Henry, assistant cashier,
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
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.
Frank P. Powers, president, Kanabec State Bank, Mora,
—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
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis





Your (i. f.
ifnestion l/o.v


Eight Questions and Answers on Transfer of Title,
Application of Interest, and What to Do in Case of Default
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



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
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


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


Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis

Answers Your Questions

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


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?
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.


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

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
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
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)
Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1947



A r e K e ¡m irs



Subject to

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.


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.


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
Federal Reserve Bank of St. Louis

This and Other Timely Legal
Questions Are Answered
by the

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
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.


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.


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.


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
Federal Reserve Bank of St. Louis


Northwestern Banker, March, 1947

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


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?


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

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


S h a rin g our kn o w le d g e of
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.


The First N a tio n a l B an k
of Chicago


Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis




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


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.


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.


fro m


£ TA e


W / l ic u a o




Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation

Northwestern Banker, March, 1947


H ull F ig h is anti
(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
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.

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.


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.


You can complete your personalized
Federal Reserve Bank of St. Louis

bank service with

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

E N,AT,° N A L - S t >
o r AN¥w h e r e.
A nyw h er e







Northwestern Banker, March, 1947




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
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-


No. 1.

Key to Charts
Deposits of $2,500,000
to $5,000,000


More than

Up to
-------------- >-

In What Type of Securities Does Your Bank Have
Its Funds Invested?

Government and
G ov’t Guaranteed



General Market


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
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?

100% 100% 100%

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis

89 % 88 %
85 %
80 % —
74 %

41 %


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
Percentages for Municipal holdings
go up again, indicating that along with
many banks have

No. 4. Does Your Bank Plan
to Buy More or Less Securities
This Year?
Will Buy More
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.


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






Northwestern Banker, March, 1947



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
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
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

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
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


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.

Public Utility



A .C. A L L Y N andc o m p a n y
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
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
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.



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
“ 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
“ 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

In Moving


Blocks Of Securities


SENSE o f timing and an intimate knowledge


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.


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


W ire
Federal Reserve Bank of St. Louis



L y n c h , P ierce , F enner k B eane

Underwriters and Distributors of Investment Securities
Brokers in Securities and Commodities


N E W YORK 5, N . Y ,

Offices in 91 Cities


to A ll Principal Markets

Northwestern Banker, March, 1947


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 *




B o n d s and Stocks



H. M. Byllesby and Company
In co rp o ra te d

135 South LaSalle Street, Chicago 3
State 8711
New York


CG 273






“ 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

James A. Cummins
James A. Cummins, 54, Des Moines
investment banker, died last week in
Hot Springs, Arkansas, after a heart
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
Surviving besides Mrs. Cummins are
four sons and a sister.


A. G. Becker &Co.



C o rp o rate Bonds
M unicipal Bonds




Preferred and C o m m o n Stock s


C o m m ercial Paper

Roosevelt Hotel Building


E sta b lish ed l 8 ç j

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis



206 First Avenue N. E.

Telephone 6647

Teletype C.R. 10



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


Almost Six Billion of Such Issues Come Due, or Callable,
in the Second Half of 1947
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
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
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



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
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
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

Specializing in Iowa
County, City, School and
Municipal Utility Revenue Issues
C A R L E T o y

D . B


b h



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
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.

B e s M o i n e s , Io w ^ w

Specializing in


Inquiries Invited
Prospectus on request from Principal Underwriter


Becker k (Hvviiii*. Inc.

R. E. MACGREGOR, President
Minneapolis, Minnesota

823-24 Insurance Exchange

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
Federal Reserve Bank of St. Louis




<?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.


U. S. Governm ents

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

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
Since actual title to the
equipment is normally vested in a
trustee, there is no bar to such action.
Federal Reserve Bank of St. Louis


Public Utilities
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







Investm ent Securities

First N ational Bank B u ild in g





General Market
Iowa Corporations

Utility, Industrial and

Iowa and General Market

Statistical, Analytical, Advisory, Covering Listed
and Unlisted Stocks and Bonds


Underwriters & Distributors
200 Equitable Bldg., Ph. 4-7159

Des Moines, Iowa

A.T.T. DM 184

Northwestern Banker, March, Ì947



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


Sii aw, McDermott „ (Jo.
914 Liberty Bldg.

Phone 3-6119





Public Utility


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.


(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
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
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


Davenport, Iowa

Waterloo Office — Commercial Building
M e m b er Chicago Stock Exchange

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


Investm ents


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
“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
“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.
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 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
— Our Fiscal Policy Combines a
Low Level of Federal Spending
and Taxes Offer a Maximum
Incentive to Investment and
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
“ Eliminate racketeering a n d re­
stricted trade practices in the building
“ 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
“ Distribute the benefits of technolog­
ical improvements through price re­
“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

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
and fiscal policies may not measure
“ Extend company-sponsored insur­ up to the necessary standards.
Northwestern Banker, March, 1947


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

in High-Grade

MusuxUpxU feo+uHi
528 Liberty Building

Telephone 3-5154

F H As
Write for Information

*7Ue N ation al Gamyuauf, o/JWa
Masonic Temple Building, Des Moines 9, Iowa


P R I E S T E R & CO
Eighth Floor Davenport Bank Building

Listed and Unlisted Securities
H. E. Jacobs

H. C. Priester
H. M. Sweet

Northwestern Banker, March, 1947
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
“ 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.”


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


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.









1. Government bond*, all issues


Underwriters — Distributors

901 Merchants Building
Cedar Rapids, Iowa
20 years exp erien ce
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


T h o m as L . C ra b b e & C o .


3. Listed and local stocks



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


S e c u r itie s of


Io w a C o rp o ra tio n s a n d


G e n e r a l In v e stm e n ts.

500 First National Bank Bldg.
Chicago Stock Exchange

Southern Surety Bldg.
Des Moines 9, Iowa

Northwestern Banker, March, 1947


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


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.”

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
“ Easy. By good advice, cooperation,
kindness and stuffing an old sock in
his mouth.”
Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


The M o rtg a g e Finaneing Outlook
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.
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-


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.


General Bonds

M aintaining an intimate,
personalized correspondent
bank service.

Officials with years of serv­
ice in this field, assuring a
knowledge of requirements
and valuable assistance.

To cooperate with out-oftown banks rather than
compete for business which
is rightfully theirs.

Specialists iri Nebraska

Farnam Bldg.

(Iowa and Illinois)


First National Bldg.
Davenport, Iowa

First National Bank Bldg.
Chicago, Illinois
N orthw estern

B a n ker,

M arch,




(Continued from page 21)

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


...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.


W e are prepared to advise
loan officers contemplating
inventory financing as an
extension of their services.
Send for your copy of this
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





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
W a sh in g to n , D. C .

N orth w estern

B a n ker,
Federal Reserve Bank of St. Louis

M arch,


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-

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.



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.


Bankers as well as business executives are invited
to write for further information.

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,
Every time come, lookee
through keyhole. No dressed, no come
Federal Reserve Bank of St. Louis








Northwestern Banker, March, 1947


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

(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.

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


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

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
Federal Reserve Bank of St. Louis

C orp.

M em ber

Earl H. Sollenbarger

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

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.”

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.”

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.
Federal Reserve Bank of St. Louis

“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


“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.






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.


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.


Northwestern Banker, March, 1947
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.”

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
“ 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

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


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. 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

Federal Reserve Bank of St. Louis




Scarborough & Company
Insurance Counselors




Northwestern Banker, March, 1947

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.”

Vice President
Fremont National Bank
Fremont, Nebraska

“ What needs to go into an outside
agricultural program? Well, several
“ 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


1892 — 1947


REDUCE ELEMENT OF RISK in connection with your INVENTORY
Our staff of experts available and shall be pleased
to discuss all questions in conection with this type of
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.


it y


a t io n a l


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




( 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
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.”

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
“ 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


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
Below— Big Ben and the Houses of

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
Federal Reserve Bank of St. Louis

32 Lombard St., E.C. 3
Bush House, W.C. 2

4 Place de La Concorde

27 Avenue des Arts

Member Federal Deposit Insurance Corporation

Northwestern Banker, March, 1947


Financial Statement
A s o f D ecem b er 3 1 , 1 9 4 6
J. W . G u n n




Vice Pres.-Secretary
O r.

D. E. Baughm an

Fort Dodge, Iowa


B r e n ton

Pres., Brenton Bros.
Des Moines


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



K oh rs

Pres., Kohrs Packing
Company, Davenport, Iowa
C a rl


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


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

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


Des Moines, Iowa
Supt. of Agents
Des Moines


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


................ $ 8,831,121.15



SURPLUS over A LL Liabilities........




R. W . W o o d

Physician & Surgeon
Newton, Iowa


‘ Amortized Values.

E m p loyers M utim i
Casually Company



Autom obile, Plate Glass,

W orkm en’s Compensation

Public Liability Insurance

Fidelity and Surety Bonds

Northwestern Banker, March, 1947
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
“ 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 !”



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

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
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

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

Says Country Bankers Can Sell

will have to keep many after-hour ap­
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
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
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



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




Reports Many New Members


The association has in reserve for
the protection of members the sum of
Financial Statem ent— January 1, 1941

Continues Growth

Cash and Bonds...................................................................................$2,372,100.71
First Mortgage Loans on Real Estate.......................................... 2,680,892.51
Home Office Building and Other Real Estate...........................
Stocks ...................................................................................................
Loans to Policyholders and Other Secured Loans...................
Interest and Rents Dueand Accrued...........................................
Net Premiums in Course of Collection.........................................
Total Assets .............................................................................. $6,202,487.50
Policy Reserves .................................................................................$4,567,206.23
Reserves for Policyholders Dividends........................................
Premiums Paid in Advance.............................................................
Other Reserves and Liabilities.......................................................
Total Liabilities..........................................................................$5,192,932.43
’ Surplus to Policyholders.............................................................. 1,009,555.07

...................................................................................... $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.





Northwestern Banker, March. 1947
Federal Reserve Bank of St. Louis


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-

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
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
Greatest increases in volume of job
offers are reported by employment
agencies in Boston, New York, Pitts­


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

Turn Me Over!
First cannibal: “ Gosh, I forgot the
roast! The missionary is burning.”
Second same: “ Holy smoke!”


As of December 31, 1946

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 ................................................................................................................
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 ) ...............................................................
M is c e lla n e o u s ...........................................................................................................


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


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 ...................................................................................................... •••



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


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



A s s e ts

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


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



B a la n c e


.......................................................................................................................................................... $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 .

Mt. Pleasant, Iowa
E. A. HAYES, President
O. T. WILSON, Secretary
Established 1929
Federal Reserve Bank of St. Louis



Harold S. Evans, President
Hubbell Building

Des Moines 7, Iowa

Northwestern Banker, March, 1947



W h a it
T h in k ?


It is your responsibility and
your privilege to offer to your
clients protection at a savings.

offer you

the opportu­

Question: Do you think bank inter­
est rates on loans are too low in
proportion to the amount of risk
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
“ 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
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



ments and their contents and
a full line of automobile and
truck insurance.
W on't




A gen cy Contract plan today?


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



“ Mutual Insurance Is Am erican
Northwestern Banker, March, 1947
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.


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
“ 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
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

l .

Complete New York Stock
Exchange stock end bond


Complete New York Curb


The most complete Unlisted
Securities quotations any­
w here published — over
1500 each day.


Utility News Summary.


Railroad News Summary.

She: “ My worst sin is vanity. I
spend hours every day admiring my
He: “ That’s not vanity— that’s im­

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:

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

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

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.

Federal Reserve Bank of St. Louis





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
^ I



Scarborough & Company
Insurance Counselors



to Banks


Northwestern Banker, March, 1947


N e w n e x t - d o o r n e ig h b o r s :


Thanks to Northwest Airlines’ new inside

route to Alaska— direct from Minneapolis—


First National Bank of Minneapolis now


------ -

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.


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
Federal Reserve Bank of St. Louis






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
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
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


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
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
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
“ 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.

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


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
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

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

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

The statement below indicates its strong financial position.

Liberal sick­

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


hospital policy covering hospital and surgical expenses is also provided.
Statem ent of D e cem b er 31, 1946



............................. 100.00


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



Disability Claims Pending................. .....$ 18,436.00
Unearned Assessments ..................... ..... 41,568.75
Reserve for Taxes, Unpaid Bills........ .....
MEMBERS .......................................... .... 361,951.24

TOTAL ............................................ .... $427,340.53

Write for Applications and Literature


Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


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.


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
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

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.


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
E. Crouley, vice president of thethe Northwest Bancorporation, has
Northwestern National Bank of Min- been named first chairman of the Min-

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,
Federal Reserve Bank of St. Louis

in this important area. Your inquiries are invited.

The Royal Bank of Canada
Incorporated 1869

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


M innesota N e w s

nesota Community Research Council.
Julian B. Baird, president of the First
National Bank of St. Paul, was elected
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
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.
Other members of the Security State
Bank’s board of directors are Oscar
Dahl, M. K. Hartz, A. S. Lund and E.
O. Lund.
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

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

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
Federal Reserve Bank of St. Louis

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.

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.


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,

without cost to you.
You are invited to consult with us regarding any phase
o f our foreign facilities for banks.





Member Federal Deposit

Insurance Corporation

Widmark Named President
L. V. Widmark, Ivanhoe, Minnesota,
was named president of the Farmers
and Merchants National Bank there
Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1947


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



For more than 52 years, this bank,

V ice President

located in the Sioux City Stock Yards,

V ice President
Asst. V ice Pres, and Cashier
Asst. V ice President

interests of the great Sioux City market
You can see why our specialized ex­

Asst. Cashier

perience helps you.

Asst. Cashier and Auditor
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.

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


L ive St o c k

Na t i o n a l



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
Federal Reserve Bank of St. Louis

't / tÆ

't y &


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.”


SonI li Dakota


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.
Federal Reserve Bank of St. Louis


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


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
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
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
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
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


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.


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.


Decem ber 31st, 1946
Cash in B a n k s ................................................................................. $ 3,053,722.76
Bonds of United States Government . $14,874,610.43
State B o n d s ........................
Preferred S t o c k s ................
Common Stocks......................
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 .................................................................


T O TA L AD M ITT E D A S S E T S ....................................$38,587,665.92



Reserve for Losses and Loss Adjustment Expenses
. $ 5,011,135.82
Reserve for Unearned Premiums.................................................
Reserve for Commissions, Expenses and Taxes . . . .
Capital S t o c k .................................................$ 2,500,000.00
Voluntary Reserve for Fluctuations in
Security P r i c e s .........................................
S u r p l u s .........................................................13,211,213.00
Surplus to P o li c y h o ld e r s .................................................


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
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
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
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.


b o r i l i I In k o la

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
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
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

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
Federal Reserve Bank of St. Louis

St. Louis

Bismarck ............
Devils L a k e .........
Dickinson ...........
G rafton ................
Grand Forks .......
Jamestown .........
Lisbon ................
Mandon ..............
Valley City .........
Wahpeton ..........
Williston ..........

. . . . 4,580
....... 4,681
....... 5,467
....... 19,359
....... 6,048
....... 1,292
....... 3,474
. . . 15,670
. . . . 4,393
....... 4,229
....... 7,354


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
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
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,

Federal Reserve Bank of St. Louis



e b r a s k a

P residen t

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
Federal Reserve Bank of St. Louis

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
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.
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.
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


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
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
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.


B ank

Member Federal Deposit Insurance Corporation

Bank oi
p t i l
^ .? ,i

Northwestern Banker, March, 1947
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.

(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.


Complete Correspondent Facilities
Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1947


N ebraska N ew s

Raise Surplus Account

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

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
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.


On Florida Trip

Where do you send your Kansas City area,
Southern, Southwestern and Western items?

a netw ork

o f railw ay



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


excep tion ally fine service.

the Inter -S tate

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.

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

40 Years Satisfactory Service


Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


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
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
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
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.


Tilt First \;ilidiiiil bulk


St. Joseph, Missouri


Member Federal Deposit Insurance Corporation

Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1947


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

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

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!

Federal Reserve Bank of St. Louis

'K attteU


'pOMX'Ute S<l*t&


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.


18th & GRAND

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


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
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
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.
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.




Member Federal Deposit Insurance Corporation

Northwestern Banker. March „ 1947


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


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
Federal Reserve Bank of St. Louis

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



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. . .
The latest report concerning

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.







in the United States

shows the Commerce moved up
. . . from 41st to 38th position.


service . . .

private wires to all principal
cities . . . direct sending of items
that is unequaled in the United
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.”
Federal Reserve Bank of St. Louis

Established 1865

^ ^ rcIec%aplod
^ J

Northwestern Banker, March, 1947







® 24-Hour Transit Service
including air mail service.


§ Investment Service On
Government Bonds



P r e s id e n t



R. H . K R O E G E R

V i c e P r e s id e n t



V i c e P r e s id e n t


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




V i c e P r e s id e n t

• Participation in Loans.



V i c e P r e s id e n t

C a sh ie r




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


© Operational Assistance

of these officers are specialists


fields — assuring


in their


needs, and ability to offer adeguate assistance.

$ Intimate Personal Services






F R I E N D l Yy|


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 ,
Federal Reserve Bank of St. Louis



¡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

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
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
Federal Reserve Bank of St. Louis


Elect Tipton Officers

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

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,
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




Tuesday, May 13th............................... Atlantic


W ednesday, May 14th.........................Newton
Thursday, May 15th...............................Chariton
Friday, May 16th...............................Iowa City


Tuesday, May 20th........................Storm Lake
W ednesday, May 21st........................... Eldora
Thursday, May 22nd.......................Manchester


Friday, May 23rd ............................... Anamosa
Northwestern Banker, March, 1947


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
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

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
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.


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

* * * ★

/f f

& /O U Y

C /f l /


* *



Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


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.


Federal Reserve Bank of St. Louis






Northwestern Banker, March, 1947


Iow a


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
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
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
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.
Federal Reserve Bank of St. Louis


l \ } jêêT *





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.

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

"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.



President of C. of C.


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
Joe Ennis was named vice president.
Clair E. Russell, who has been execu­
tive secretary since 1931, was elected
for the seventeenth time.


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

Northwestern Banker, March, 1947
Federal Reserve Bank of St. Louis


Scarborough & Company


Insurance Counselors

STATE 4325


to Banks
Federal Reserve Bank of St. Louis


Our Complete
Facilities and
Sincere Interest
Assure the Finest
Correspondent Service

Valley Bank andTrust Company
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


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
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


If you haven't seen our new
home, we'll take pleasure in
showing you every department.

Member Federal Deposit Insurance Corporation


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
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
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
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-



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


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
Mr. Hemminger, formerly advertis­
ing manager of the Bankers Trust


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
Federal Reserve Bank of St. Louis


Northwestern Banker, March, 1947


Iow a


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.
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

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
An address was given by Marvin
Selden, vice president of the Mer­
chants National Bank of Cedar Rapids.


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^

W o à ltli J la ’u fe ii M j/U . o f C o in 'll/'tafXfx&U

Northwestern Banker, March, 1947
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


Incorporated 1933

Home Office

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
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,

fifty bank agents in Iowa.

To be the exclusive representative of
this company is an asset to your bank.
Write to

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

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
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


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

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,
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:
. . . 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
Of course, we don’t need a crystal




L & n A m , S c r iv a .

Member of The Federal Deposit Insurance Corporation

Federal Reserve Bank of St. Louis

The Best in Banking
For People .. . For Business . . . F or Banks
In the


o£ d o w n t o w n



Member F.D.I.C.

Northwestern Banker, March, 1947


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
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

—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
An increase of $28,087,718 over De­
cember 31, 1945.
Total Assets
An increase of $104,801,259 over De­
cember 31, 1945.
Total Capital Funds
An increase of $6,911,114 over De­
cember 31, 1945.
Total Deposits
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.

“ Better Printing Papers”
M inn eapolis

S t . Paul

Des M oines

M oline


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

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
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
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
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

MARCH, 1947
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
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

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

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

Employers Mutual Casualty Company. . .50
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

Greenway and Company................
Guaranty Trust Company...............................49

Hammermill Paper Company...................... 27
Harris Trust and Savings B ank.................. 26
Home Insurance Company............................ 5

Inter-State National Bank.............................70
Investors Syn dicate......................................... 34
Iowa-Des Moines National Bank and
Trust C om p an y.............................
Irving Trust Company.................................. 8


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
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.
Jamieson and Company...................................31
Journal of Commerce....................................... 55
Klipto Loose Leaf Company........................ 88
Koch B roth ers.................................................... 88
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
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
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
Omaha National B ank..................................... 23
Policyholders National Life Insurance
Company .......................................................... 52
Priester and Company..................................... 38
Public National Bank and Trust C o . . . . . 41
Quail and Company......................................... 36

Ravenscroft and Company.............................40
Royal Bank of Canada.................................59

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

Toy National B ank...............................


United States National Bank— O m a h a... 69

Valley Bank and Trust Company..............83
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


In the

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
“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
“ 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
Federal Reserve Bank of St. Louis

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

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
May 19-21, 56th Annual Convention,
Illinois State Association, Chicago,
Palmer House.

13-23, Iowa
(see page 77).



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
June 16-28, Agricultural Credit School,
Am es, Iowa State College.
June 20-21, Annual Convention, South
Dakota State Association, Sioux
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,
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
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
“ Him?” said the clerk. “ Oh, he just
brought over a package of bolts and

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
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!”




CONTACTS... a t help Iowa bankers meet
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

Member Federal Deposit
Insurance Corporation
Member Federal
Reserve System

Federal Reserve Bank of St. Louis




with Des Moines and lowa
. . . f or



Iowa's progress has always been linked with money
and financing. Sound and constructive banking is
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

Federal Reserve Bank of St. Louis

i H


Member Federal Deposit Insurance Corporation