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MARCH

1948

innual Bond
nd Investment


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Federal Reserve Bank of St. Louis

THOMAS B. McCABE, CHAIRMAN FEDERAL RESERVE BOARD— Sec Page 9

Results Count
In any business transaction, values are determined
by results. Because, Merchants National Bank execu­
tives are seasoned bankers who know your problems,
you are here assured of a pleasant, profitable relation­
ship.
We invite you to utilize our correspondent bank
service.

/% e 4 / c tá v e a t

THE
MERCHANTS NATIONAL
=
lBANKc=
O F F I C E R S

N« /

ter H

m

u

Of*oo¡

JAMES E. HAMILTON, Chairman Executive
Committee
S. E. COQUILLETTE, Chairman of the Board
JOHN T. HAMILTON II, President
H. N. BOYSON, V ice President
MARK J. MYERS, V ice President
GEORGE F. MILLER, V ice President and
Trust Officer
MARVIN R. SELDEN, V ice President
FRED W . SMITH, V ice President

R. W. MANATT, V ice President
L. W. BROULIK, V ice President
PETER BAILEY, C ashier
R. D. BROWN, A ssistant C ashier
O. A. KEARNEY, A ssistant C ashier
STANLEY J. MOHRBACHER, Asst. C ashier
EVERETT C. PRATT, A ssistant C ashier
C. F. PEREMSKY, Assistant C ashier
VICTOR W . BRYANT, Assistant C ashier
JAMES E. COQUILLETTE, Assistant C ashier

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published m onthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the Post Office at Des Moines, Iowa, under A c t o f March 3, 1879.


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Federal Reserve Bank of St. Louis

V

3

La Monte Safety Paper has long served a dual pur­
pose. It is a constant reminder to forgers of the folly of
attempting to alter any check written on this product.
And it is a dependable guide to bankers and business­
men who recognize the advantages of using a check
paper which is the acknowledged leader in its field.

G EO R G E LAMONTE & SO N , NUTLEY, N EW JERSEY

com»’0 *

coKSlSySl
TME.^AVY ÜNES <g)

I.A MONTE TRAOE-MARK

C T l°N

CORPSSii

THOUSWÌ°

A C h eck P a p er A ll Y our Own
Thousands o f ba n k s a n d m a n y o f th e la rger corp oration s
use La M o n te S a fety P ap ers with their ow n trade-m ark or
design m ade in the p a p e r itself. Such INDIVIDUALIZED ch e c k
p a p e r p ro v id es m axim um p ro tectio n a ga in st b oth a ltera ­
tion a n d c o u n te r fe itin g — m a k e s id en tific a tio n p o sitiv e .


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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n ke r. M a r c h , 1948

4

A

B a n k Is K n o w n . . .
. . . by the correspondents it keeps. Over

371 banks in all sections of this country
have been Central Hanover correspondents
for more than halt a century.

CENTRAL HANOVER
BANK AND TRUST COMPANY
NEW YORK
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 , 1948


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Federal Reserve Bank of St. Louis

Van Cortlandt House
B o u w

e r ie

m

f/ ? e B r o n x

A m ericans

were

still

/^ \ N E day while General Washington

With no towns nearby,

^ ^ w a s driving a sulky through the

the Van Cortlandt estab­

nearby, a fire was kin­

rain, a little girl spied the great man . . .

lishment, like a southern

dled on Vault Hill, the

“ His uniform was covered by a greatcoat

plantation,

family burial ground.

and his powdered hair was protected by

w h olly self-su fficien t,

had

to

be

The Van Cortlandt

a bandanna handkerchief bound around

producing all food for

fam ily

his head under his cocked hat.” Evident­

the family and numerous

house until its purchase

ly, the General was anxious to avoid

servants. T o

by New York City in

meeting the Van Cortlandt ladies that

clothing,

provide

sheep were

and

flax

One o f eight existing secretaries by
John Goddard, noted cabinet maker

evening with a water-soaked uniform

raised

and a face streaked with powder.

grown, while masons and woodworkers
were

Washington’ s destination

was
employed

for

con­

guished Van Cortlandt fam­

W hen war broke out,

ily. The house, built in 1748

sharply divided neighbor­

by Frederick Van Cortlandt,

hood allegiance led to many

is still standing today within

skirmishes

New York City’ s limits in a
park bearing its name. Orig­

City records buried with this chest
escaped detection by British

on

this

once

peaceful estate. Moreover,
both armies made repeated

inally, however, it was a country estate

forays there and for a time the house was

— or bouwerie, as the Dutch termed it—

General Howe’ s headquarters. Later, to

a long journey distant from the city.

mislead the British into believing the


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Federal Reserve Bank of St. Louis

the

1889. Through the gen­
erosity of the Society of

Colonial Dames of the State of New
York, an average of 50,000 people annu­
ally visit this 200-year-old bouwerie in

struction and upkeep.

was the home of the distin­

occu p ied

New York City’s Bronx County.
Jbe Home, through its agents and
brokers, is America’s leading insurance
protector of American Homes and the
Homes o f American Industry.

a

THE HOME ☆
N E W

FIRE

AUTOMOBILE

Y O R K
• MARINE INSURANCE

6

Zhe Study
andAnalysis of

Ranks’ Investment
Portfolios
A timely service extended to correspondents by the Chase is the study
and analysis of a bank’s portfolio of U. S. Government and other
securities.
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 of the many
helpful services that Chase offers to its correspondents.
Among other services to correspondent banks are:

Issuance of commercial and travelers’ letters of credit
Complete facilities for the safekeeping of securities
Collection of checks, drafts and other bank documents
Transmission 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 wide range of incidental services

THE C H A S E N A T I O N A L
OF THE CITY OF NEW YORK
Mem ber 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 , 1948


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Federal Reserve Bank of St. Louis

BANK

7
★

*

in Ohifiago
AS YO U R BANK
You are cordially invited to use The First National
Bank of Chicago as your correspondent. To serve you,
and to insure prompt attention in all correspondent
bank relationships, there is an experienced group of
officers which devotes its entire time to this work.
Edward E. Brown, Chairman
James B. F organ
Bentley G. M cCloud

Vice-Chairman
BANK

President

AND

BANKERS

DIVISION

John J. A nton
T homas J. N ugent
Harold W. Lewis
M elvin H. T hies
V erne L. Bartling
Charles F. N ewhall
Edward D ecker
V ictor C. von M eding

OFFICERS

Vice-President
Vice-President
Vice-President
Asst. Vice-President
Asst. Vice-President
Assistant Cashier
Assistant Cashier
Assistant Cashier

The First National Bank of Chicago


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Federal Reserve Bank of St. Louis

Building w ith C h icag o and the Nation Since 1863
M EM BER

FED ERA L

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

8

O F F F IC I X ( i
CO IC IC F S PO .V II F X T

O N E

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

W A L L

S T R E E T

C O M I» F F T F
B tA M i

N EW

S F IIV IC F S

V O ItK

15, N .

Y.

9

ihtar Edito*'

DES MOINES
Oldest Financial Journal West of the Mississippi

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub­
ject will be gladly published in this
column.

"Exemplifies the Western Character"
“ We are enclosing a photograph of an
oil painting recently purchased by the InterState National Bank of Kansas City, which
is now hanging in their newly remodeled
lobby. The picture itself is approximately
6 feet wide and 5 feet high and is painted

•

53rd Year

•

No. 728

IN THIS MARCH, 1948, ISSUE
EDITORIALS
Across the Desk from the Publisher......................... ............................... .

10

FEATURE ARTICLES
Dear Editor ........................................................................................................
9
Frontispage ......................................................................................................... 12
How a Bank Is Developing Honesty Among Youngsters..................
15
Why Banks Must Have a Sound Loan Policy....William G. F. Price 16
About Bankers You Know— Carl A . Birdsall........................................... 17
News and Views of the Banking World....................Clifford De Puy 18

BONDS AND INVESTMENTS
How Banks Are Investing Their Funds—
A N orthwestern Banker Survey............................................... 28,
Municipals Are Good Investment........ ........ ................................................
Equipment Trust Certificates for Bank Investment..
.......................................................................................... H. Holden Smith
Municipal Bond Price Comparison.................... ,v.........................................
Diversification Gives Protection...................................................................
Bankers Are Determined to Battle Inflation Now..Raymond Trigger
Why Your Bank Is A Protected Investor...................P. R. Easterday
What Is the Outlook for the Government Bond Market?...................
.............................. ............................... ...... ......................... John H. Grier
New Officers of Iowa Investment Bankers................................................

29
30
31
32
33
35
39
41
43

INSURANCE
What the Credit Manager Should Know About Insurance
Coverage.......................................... ............... ............. Ivan H. Anton 45

by the celebrated Western artist, Theodore
van Soelen of Santa Fe, New Meixco.
“ He made the first studies for it in 1919
while he was working on the Ferdandez Com­
pany Ranch at San Mateo, New Mexico. He
began the actual painting itself in Santa Fe,
New Mexico, in 1923 and later completed
the background at Cuyamongue, New Mex­
ico. The figures in the painting are taken

(Turn to page 82, please)

ON THE COVER
Thomas B. McCabe reads telegrams
of congratulations after his appoint­
ment as chairman of the Federal ReServe Board of Governors by Presi­
dent Truman. He succeeds Marriner
S. Eccles, chairman of the board since
1934, who now becomes vice chairman.
Mr. McCabe, president of the Scott
Paper Company, Chester, Pennsyl­
vania, since 1927, has always taken an
active interest in national affairs. He
was executive assistant to E. R. Stettinus, Jr., of the advisory committee
of the Council of National Defense,
and in 1939 became chairman of the
board of the Federal Reserve Bank
of Philadelphia.

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STATE BANKING NEWS
Minnesota N e w s............................................
Twin City News..........................
New Paintings in Marquette Bank............................................ .........
South Dakota News..........................................................................................
Sioux Falls News.... ..... ......................................................................... .
North Dakota News..........................................................................................
Nebraska News ..................................................................
Omaha News ...................
Lincoln Locals .........................................................................
Iowa News ...................:............................... .................................................. .
Group1 Meetings and Pictures.................................... ........ ....... ..... 74,
Sioux City News..............................................................................
Des Moines News...................................................................... ...............
The Coin Collectors Column............................................................................
Conventions .....

51

53
57
59
60
61
63

66
69

73
75
80
81
84
85

IN THE DIRECTORS' ROOM
Short Stories............................ ............ ............................................. 86
NORTHWESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUy
RALPH W. MOORHEAD
Publisher
Associate Publisher
BEN J. HALLER. JR.
HENRY H. HAYNES
MALCOLM K. FREELAND
Associate Editor
Editor
Associate Editor
HAZEL C. HADLEY
ELIZABETH COLE
SADIE E. WAY
Auditor
Advertising Assistant
Circulation Department
PAUL W. SHOOLL
JOSEPH W. FRANKS
Field Representative
Field Representative
NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806
MUrray Hill 2-0326
DE PUY PUBLICATIONS:
Northwestern Banker, Underwriters Review,
Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

10
stepping stones for better and more intelligent
administration in the future, then students and
bank customers alike, are assured of a better and
more satisfactory tomorrow when faculties and
bank officers will be of even greater help in solv­
ing their problems.

(Dbjdüi Ü. X

Wl. (jJiqqinA

Under Secretary of the Treasury

We disagree with you completely in your oppo­
sition to the so-called community tax bill which
would allow an equal division of the net income
between husband and wife for Federal income tax
purposes.
You say that the income taxes should be kept
high so that we can make additional payments on
the national debt.

A c ro s s th e D e sk
F ro m th e P u b lis h e r
(Doha £am&A (Bhyxini Qonani:
President of Harvard University

Your annual report to the Board of Overseers
of Harvard University was stimulating to us be­
cause you are thinking of the future, planning
for the future and not living on the “ glories of
the past.”
In your report you sa id : ‘ ‘ The antiquity of a
university is in itself of little value. Indeed, Presi­
dent Eliot once remarked that a good past was
positively dangerous if it made one complacent
about the future. On the contrary, one finds
faculties and administrators harassed by doubts
about the future of their undertakings, and citi­
zens worried about whether there is any future
for the civilized world.
“ A vastly enlarged and altered nation seems to
find an expanded academic community like our
own of value both in advancing learning and
‘ perpetuating it to posterity.’ So, I venture to
believe, it will be a century hence, the pessimistic
prophets of the moment to the contrary notwith­
standing. Therefore, I conclude we must pro­
ceed with our long range planning.”
If an educational institution or a bank or any
other organization “ rests on its laurels” and lives
on its “ antiquity,” it is not taking a progressive
view of the future. But if long years of service
to a community, by a college or a bank, are but
N o r t h w e s t e r n B a n k e r , M a r c h , 1948


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Federal Reserve Bank of St. Louis

Certainly reduce the national debt, but by what
methods ?
As a former president of the American Bank­
ers Association, Mr. W iggins, may we suggest that
before you oppose a reduction in income tax rates,
it would be much better to reduce government
expenses.
Some of your colleagues, Mr. Wiggins, have
said that a reduction of income taxes which would
give more money back to the taxpayers would
cause inflation.
W e simply ask the question as to whether the
government should spend the money or whether
the individual taxpayer should.
The N orthwestern B anker believes that it is
about time that the individual citizen has a chance
to spend some of his own money instead of tossing
it into the “ Washington W hirlpool” where it is
not always spent wisely or well.
In a recent statement you said: “ Under current
conditions, when employment, production and the
national income are at peak peacetime levels, it is
imperative that the yield of the tax system
should be maintained, in order to provide an
adequate payment of the national debt.”
Certainly, Mr. Wiggins, we want to make pay­
ments on the national debt, but let’s first start by
cutting down government expenses, and at the
same time, enact the husband and wife income tax
proposal.
After all, why should 12 states, including Ari­
zona, California, Idaho, Louisiana, Nevada, Wash­
ington, Nebraska, New Mexico, Oklahoma, Texas,
Michigan and Oregon, have this law on their in­
dividual state statute books and not make it uni­
versal?
W hy should these states have a tax advantage
which is denied to the other 36 states?

11
So we say, Mr. W iggins, reduce government
expenses first and at long last give the taxpayers
a little relief by passing the husband and wife
community tax split law and let the taxpayers
spend a little more of their own money.

5-Year Expenses and Profits
1942 Compared with 1947
1942 1947
Expenses and Profits
32.1 29.4
Salaries and wages........ .............
Interest on time deposits............. ..... . 14.4 12.7
26.6 22.5
Other current expenses.......

(Dswi Q. $ . Ifounq:

73.1 64.6
Total expenses ...........
Net current earnings before income
26.9 35.4
taxes
............ ..... ...............
.4 — 1.5
Net recoveries and profits (or losses)
7.9
.. 3.2
Taxes on net income
......

President Seventh Federal Reserve Bank

W e have been studying with a great deal of
interest your “ member banks operating ratio”
for the Seventh Federal Reserve District based
on 1947 figures.
In this report you s a y : ‘ ‘ The operating
ratios of the member banks in the Seventh
Federal Reserve District reflect the expansion
in loans and reduced profits on securities char­
acteristic of bank operations in 1947. While
total operating costs of banks were nearly
12 per cent higher than in 1946, the increase
was offset by larger earnings resulting from
the greater loan volume. Total net recov­
eries and other profits declined 5.5 points as
a percentage of total earnings, largely be­
cause of marked declines in securities profits
arid increases in farm losses. The resulting
ratio of net profits to total earnings for 1947
is the lowest since 1942. Net profits to total
capital accounts dropped to 10.5 per cent
from 12.5 per cent in 1946.”
In analyzing your report, the N orthwestern
B anker thought it might be interesting to make
a 5-year comparison of expenses and profits, and
the results of these calculations are as follow s:
5-Year Sources of Earnings
1942 Compared with 1947
Earnings
1942 1947
Interest on U. S. Government securities'! 29.3 42.7
Interest and dividends on other
securities .............................................._.J
5.5
Earnings on loans.....
52.7 36.8
Service charges on deposit accounts...... 7.3
7.2
Other current earnings............................ 10.7
7.8
Total earnings .......... ...........................100.0 100.0
In 1942 there were 923 member banks in the
Seventh Federal Reserve District and in 1947
there were 999, or an increase of 76 banks.
Interest on Government securities increased
13.4% in the 5-year period or from 29.3% to
42.7% as shown by the accompanying chart.
Earnings on loans in the same 5-year period
declined 15.9% or from 52.7% in 1942 to 36.8% in
1947.
Service charge earnings remained about the
same at 7.3% and 7.2% in the 5-year comparison.
Other current earnings declined from 10.7% in
1942 to 7.8% in 1947 or 2.9%.
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Federal Reserve Bank of St. Louis

Net profits .........

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

. 24.1

261)

Salaries and wages declined 2.7% in the 5year period or from 32.1% to 29.4%.
Interest on time deposits also declined 1.7%
and other current expenses were reduced 4.1%.
Comparing 1942 with 1947 the total expenses
declined 8.5% or from 73.1% to 64.6%.
Current earnings before income taxes increased
8.5% or from 26.9% to 35.4%.
Taxes on net income increased from 4.7% or
from 3.2% to 7.9% per cent in 1947.
Net profits showed a slight percentage gain of
1.9% as they were 24.1% in 1942 and 26% in 1947.
As for 1948 a N orthwestern B anker Survey
which appears in this issue indicates that banks
believe that while deposits may decline this year,
that, loans will increase, and le t’s hope that the
net profits will be satisfactory at the end of the
year.
Member banks in the Seventh Federal Reserve
District for a number of years have shown very
good “ net profits” and today are certainly in a
very liquid position with U. S. Government se­
curities of 54% and cash of 22.5% or a total of
76% in governments and cash.
What applies to the Seventh District is reflected
likewise in other districts of the country. Today
as never before banking is on a very sonnd basis
in the United States— le t’s keep it that way.

N o r t h w e s t e r n B a n ke r, M a r c h , 1948


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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

13

. r/ y /

M

a r r a

S /a .ïf if ttf w a
ever alert to the financial
needs of Iowa agriculture
and industry.

Iowa's Friendly Bank

C E N T R A L N A T I O N A L B ANK
fi. TRUST CO. Des Moines, Iowa
Member F.D.I.C.

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

Orders are being filled for A lien-W ales
adding machines as rapidly as possible.
That the demand still exceeds the supply
is a tribute to the reputation Alien-W ales
adding machine equipment has for SPEED,
A C C U R A C Y and D E P E N D A B IL IT Y .

ALLEN W W ALES
ALLEN-WALES ADDING MACHINE DIVISION
OF
THE NATIONAL CASH REGISTER COMPANY

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Federal Reserve Bank of St. Louis

4 44
N E W

MADISON
YO R K

AVENUE
22,

N.

Y.

15

AT THE George Washington Club first party, Hartwell Davis (left), personnel
technician of the Omaha National Bank, and A. J. “ Jack” Rhodes, assistant vice
president, help to serve the excited youngsters.

Il tur a
Hank Is
H on esty A ntony You o y ste r s
The Omaha National Bank Has Established the
George Washington Club to Prove "Honesty Is the Best Policy"
ONESTY is always the best pol­
icy, said George Washington in
his Second Farewell Address.
The old adage has been given fresh
meaning by the Omaha National Bank
of Omaha, which has a smoothly func­
tioning plan for rewarding youngsters
who find money and return it to the
owner.
The George Washington Club, spon­
sored by the bank, has acquired 90
members in the four months since the
plan was inaugurated, and there seems
to be no prospect of a let-up in the
steady stream of reports which come
to the bank each week, telling of the
honesty of some child.
It all began when A. J. Rhodes, as­
sistant vice president, read in the Sep­
tember issue of the Financial Public
Relations Association Bulletin an arti­
cle concerning a similar plan begun
by a Denver bank. After an exchange
of correspondence with Arthur Wil­
liams, originator of the Denver plan,
it was decided to set up a like program
in the Omaha bank. The tentative
basis for rewards included, as its main
points, an age limit of 14, and a mini­
mum of one dollar in currency to be
found.

H

First Case
The first case which was reported
to the bank was that of a little negro

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Federal Reserve Bank of St. Louis

girl who had found a pocketbook con­
taining 25c on the school playground.
The principal of her school wrote to
the bank, acknowledging frankly that
the case did not come within the rules
set forth, but saying that the principle
was important. One paragraph from
his letter deserves quotation:
“Sometimes, in the rush of every­
day living, we adults forget to laud
our children for the little things
they do. Yet these little things
are often the desirable traits
which go to make good citizens
. . . We hope, at our school, to
point such desirable qualities up.
Not with just the thought of tan­
gible reward in mind, but rather
the intangible qualities—the feel­
ing of respect, usefulness, and dig­
nity that can accompany one’s
being able to do his fellow man
some good service.”

The sum which the child found was
admittedly small, but the bank agreed
with that principal—incidentally, the
only negro principal in Omaha—and
sent the girl a crisp new one-dollar
bill as her reward. The first case
demonstrates the initial difficulty the
bank encountered: how to divide an
abstract quality such as honesty into
categories, and reward for it accord­
ingly. Using the case of the little

negro girl as a yardstick, the bank de­
vised a sliding scale, apportioning its
rewards to the amount of money
found. For the larger amounts, a bill­
fold containing five one-dollar bills is
the reward; for less, only the billfold;
for small amounts, $1.00; but in every
case, no matter what the sum involved,
the bank sends a congratulatory letter
to the youngster, and makes the child
a member of the George Washington
Club. The bank also reserves the
right to exercise its own judgment in
choosing members. Although it orig­
inally stipulated that the child must
find a minimum of $1.00, it has in
many cases rewarded deserving chil­
dren who have found less. The very
elasticity of its rules makes their
strength, and each case is decided
upon an individual basis.
The second case was that of a little
boy of six, who had picked up a bill­
fold containing $79, and returned it to
the owner. His mother brought him
to the bank, where he was rewarded
with a brand new billfold bearing his
name, and five one-dollar bills inside
it. The child was in the first grade,
and had not yet learned to write, but
printed in large, sprawling letters his
name and the first initial of his sur­
name. He had been something of a
(Turn to page 24, please)
N o r t h w e s t e r n B a n k e r, M a r c h , 1948

16

W If if H a n k s M u s t
A S o u n d Wahmu i Boiiet§

Ha

And Suggestions As to How Such a
Policy Can Be Established
By WILLIAM G. F. PRICE
Vice President, American National Bank and
Trust Company of Chicago
SOUND loaning policy requires
a periodic internal examination
of the quality of the loan port­
folio. Three suggestions might be in
order with respect to an internal ex­
amination of assets:
The first: Loans should be graded
on the basis of quality. Thus manage­
ment gets an over-all picture of the
risk it is taking. Furthermore, by
watching the results of the periodic
examinations, management has a
measure of progress or retrogression.
The second: Where weaknesses

A

satisfy ourselves on the following
points:
1. What about the inventory itself—
in pricing, quality, and styling? How
is it divided between raw materials,
work in process and finished goods?
2. What is the on order position?
How much is it, when is it coming in,

exist, corrective steps should he sug­
gested and, where agreed upon, fol­
lowed through. I believe that the basis

of an internal examination should be
as stringent as possible, without at the
same time being captious.
The third is a tough one. But it is
probably the crux of the situation:
Sound loaning policy certainly would
spell out that loans of a speculative
character should not be made.

A Speculative Loan
The trouble comes in trying to de­
fine a speculative loan.
In the field of commercial credits
the type of speculative loan most fre­
quently sought is one based on inven­
tory, whether or not the money is se­
cured by a pledge of the merchan­
dise. Not many inventories that go
across my desk seem out of line with
current sales. Quite a few are unrea­
sonable when measured against the
quick position of the borrower. Per­
sonally, I know of no description of
a speculative inventory loan which is
even reasonably precise. It is a mat­
ter of good judgment on the part of
both banker and borrower. There
must also be a firm conviction on our
part that we should not make specu­
lative loans today, even though it is
not possible to define them precisely.
We can usually form positive con­
clusions in instances where an inven­
tory plus forward commitment is ex­
cessive when it is measured against
either current sales at cost or against
working capital. When these facts
exist, it seems to me that we should
N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

W I L L I A M G. F. P R IC E
“ Three m ajor financial p rob lem s”

who is it on order from, at what price,
are the orders firm or subject to can­
cellation without penalty?
3. What is the backlog; with detailed
information elicited by questions sim­
ilar to those just indicated.
4. How do the products we are
asked to finance compare with com­
petitive products?
5. How do our borrower’s costs and
prices compare with his competitors?
6. Is the merchandise of a type with
which the borrower is thoroughly
familiar or is it strange to him?
7. What is the historical record of
the price of the raw materials in­
volved? What is the price today?
How does today’s price compare with
the history? Has it gone up more, or
less, or about the same as other prices?
How big is the difference?

1 have deliberately omitted what is
perhaps the most important considera­
tion of all. It deserves a place by it­
self. How well do we know how the
borrower’s mind works? Is he hon­
est, intelligent, ingenious, well sea­
soned and well informed? The same
line of reasoning would apply to
speculative loans where assets other
than inventory are involved.
For my own guidance, if for no
other reason, I wish there were some
means by which speculative loans
could be tagged at sight. The judg­
ment on whether a particular loan is
or is not speculative depends on as
complete knowledge as we can get
about the transaction and the people
under consideration. It is, of course,
also essential that we know the an­
swers to three of the basic questions
which relate to any loan transaction:
1. When will it be paid back?
2. For what purpose will the money
be used?
3. How will it be paid back?
We must remember, too, that the ag­
gregate loan totals are the result of
our own individual day-to-day judg­
ment.

Effect of Capital Loans
The fourth suggestion with respect
to a sound loaning policy relates to
capital loans. A capital loan, for the
purpose of this discussion, is a loan
the proceeds of which are to be in­
vested either in fixed assets or in a
permanent increase in working capital.
The other characteristic is that repay­
ment is contemplated from earnings
and not from the turnover of assets.
There are many phases of capital
loans which might be discussed. Our
only concern in this discussion is with
the effect such loans have on infla­
tionary pressures.
New capital assets are generally
bought with the aim of increasing
production or of cutting costs. Either
result should tend to decrease prices,
which is greatly to be desired at this
time. That, however, is only one part

17
of the story. When we make a loan
we create buying power with which
the borrower will buy something.
In the case of loans made to acquire
capital assets, the new money which
we have created enables the borrower
to bid for labor and materials which
otherwise might have gone into goods
for current consumption. Assuming
the safety of any specific application,
it would seem that the criterion of
sound lending policy might well be
the time at which the capital assets
to be acquired will come into produc­
tion. If they can be put to use rea­
sonably soon the loan might well be
combatting inflation. If, on the other
hand, the facilities will not be turn­
ing out products until well in the fu­
ture, then a negative decision might
well be reached. Such financing at
this time is more appropriately done
by savings already accumulated than
by the creation through the banks of
new and added purchasing power.

A

b o u t

i S n u k o i 's

Y o u

K n o u :

Supervisors
The final thought to be offered is
that sound lending policy today in­
volves a full recognition by us of the
important part which the supervisory
authorities are playing in this matter.
The services the examiners render us
with respect to the appraisal of our
assets has long been recognized and
appreciated.
Today they are, in addition, a highly
important part of the front which is
struggling to prevent any further in­
crease in prices. The supervisory au­
thorities, in addition to their custom­
ary duties, must satisfy themselves
now, as never before, as to the con­
structive character of the underlying
purpose of the loans. Sound lending
policy dictates that we have full un­
derstanding and give active coopera­
tion to these important allies.
One of the more important changes
which has taken place in our field is
the sharp increase in commercial loans
since the end of the war. In the last
six months this increase approximated
25 per cent and brought these out­
standings to the highest level on rec­
ord. The loan figures are still in pro­
portion to our enlarged Gross National
Product. The problem here is what
might happen if Gross National Prod­
uct fell off sharply. The rate of in­
crease in commercial loans lately has
been much more rapid than the in­
crease in either physical production
or in prices. Meanwhile, there has
been no increase in employment.
One effect of the substantial increase
in loans, felt within the banking sys­
tem, has been to run the loans-tocapital ratio up to 4 to 1. This is
(Turn to page 20, please)

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Federal Reserve Bank of St. Louis

CARL A. BIRDSALL
President, Continental Illinois National Bank & Trust Co., Chicago
“ Gives constant attention to fundamentals of banking’ ’

HEN Carl A. Birdsall became president of the Continental Illinois
W
National Bank and Trust Company of Chicago recently, liis elevation
was not merely an automatic promotion because of his long term of service.
Rather it was the culmination on his part of many years of efficient work and
when the time came he was ready to accept the great responsibility of being
chief executive of the sixth largest hank in the country, the largest between
New York and California.
Supervising the diversified, complex interests of a bank with $2,230,000,000
in deposits requires not only the masterful touch of a man who has a keen
understanding of these many operations within a financial institution, but also
one who has the ability to analyze deeply and judicially the many problems
that daily confront top executives. Cai’l Birdsall has proven himself to be
such a man by reason of his constant attention to the fundamentals of bank­
ing and through the continuous application of sound thinking to problems
of credit, commerce, investments and commercial banking. His well trained
memory is one of his greatest assets.
As he developed his talents in the many phases of bank operations, he
acquired a reputation as a good organizer. This ability gave his career the
final polish and at the annual meeting in January he was selected as the man
to succeed James R. Leavell, brilliant president of the Continental Illinois
since 1930, who some time ago expressed his wish to retire.
Carl A. Birdsall is the product of a small midwestern community.
(Turn to page 22. please)

He

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

18

X ew s and Views
OF THE BANKING WORLD
By C L IF F O R D

I

T IS impossible for us to see how
anyone who has “tasted freedom”
could ever advocate Communism or

a Communistic dominated govern­
ment, yet there are some even in the

United States who think Communism
and the Russian way of life is better
than ours.
If so, perhaps the following interest­
ing article should be read by them.
“Russia is exerting frenzied efforts
to portray Communism as superior to
other forms of government. Ponder
this statement by ‘Believe it or Not’
Ripley.

DE PUY, P u b lish er

J. Cameron Thomson, president of
the Northwest Bancorporation of Min­
neapolis, believes that the United
States will have continued prosperity
for the first six months of 1948, but
he is not sure what the situation may
be after that period.

The second six months, he believes,

He said that he told Roosevelt that
Henry A. Wallace had “crazy ideas”
and Henry Morgenthau, Jr. “had no
ideas at all.”

In November, 1933, when Russia
was recognized by the United States,
Garner said, “if we have acquiesced
in the Comintern and given it oppor­
tunity to work unhampered in this
country, Ave may be inviting trouble.
This outfit wants to pull down our
government.

“In time of a depression such as this,
when millions of people are out of
work, it looks like a poor time to in­
vite in organized and disciplined agi­
tators.”

“You will see why Communistic dic­
tators are frantically resorting to mis­
representation of conditions in their
own land and of conditions in nonCommunistic lands.”

“depends on crops and the trend of
world events.”

While attending a luncheon recent­
ly, a prominent Englishman who was
the speaker said most all invita­
tions in London have the initials
B. Y. O. G., which means “bring your

Earl O. Shreve, president of the
United States Chamber of Commerce,
believes that we must buy from other
countries if we expect them to buy
from us, and in a recent message said:

Edwin F. Buckley, president of the
Central National Bank and Trust Com­
pany, was elected to the board of di­
rectors of the Greater Des Moines com­
mittee.
Mr. Buckley replaces B. Frank
Kauffman, chairman of the Bankers
Trust Company, who resigned from
the board in December. Mr. Kauffman
has been elected an honorary life mem­
ber of the board.
Personal incomes reached a record
of 197 billion dollars in 1947. This
topped 1946, the previous record, by
20 billion dollars.
Farm owners had income totaling
17 billion dollars last year compared
with 15,200 million dollars in 1946.
N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

John N. Garner, former vice presi­
dent of the United States, is now tell­
ing about his relations with Franklin
D. Roosevelt.

A RUSSIAN CITIZEN
May not own land
May not strike
May not picket
May not employ labor
May not travel
May not own jewelry
May not be tried by jury
May not choose his own job
May not absent himself from work
May not ring a church bell
May not be a friend of a foreigner
Is forbidden freedom of speech, free­
dom of assembly, freedom of religion,
freedom of soul.

own grub.”

was re-elected president of the Federal
Advisory Council of the Federal Re­
serve System for his 9th consecutive
term at the 1948 organization meeting
of the board.

J. C A M E R O N T H O M S O N
“ P rosp erity first 6 m onths”

“The United States as the richest
market in the world offers extensive
opportunities for those who will ac­
tively endeavor to sell their products
here.
“We are an active creditor nation.
We must act as a creditor. We must
accept payment from our debtors.
They can make payment chiefly in
goods and services.
“And if we are to be paid for our
exports, we must accept the wares of
our creditors in increasing quantities.
We need stockpiles. We can increase
the living standards of our people by
taking many of the things which are
produced abroad.”
Edward Eagle Brown, chairman of
the First National Bank of Chicago,

Arthur W. Glennie has joined the
La Salle National Bank of Chicago as
assistant vice president. Mr. Glennie,
who has been associated with Chicago
banks for 25 years, has most recently
served as vice president and cashier
of The South Shore National Bank of
Chicago. He previously served for a
number of years in the office of State
Banks in Liquidation. Mr. Glennie
has attended Northwestern Evening
School of Commerce, and is a member
of the class of ’49 of the Central States
School of Banking at the University
of Wisconsin.
Frank M. Hickok, vice president in
charge of the corporate trust division
of the American National Bank and
Trust Company of Chicago, retired
from active duty on March 1st, accord­
ing to Lawrence F. Stern, the bank’s
president. Hereafter, the corporate
trust division will operate under the
supervision of Edmund L. Andrews,
vice president.

The domestic scheduled airlines of
the United States have multiplied
their passenger carrying from less
than 48,000 air travelers annually to
more than 13,000,000 in the span of
20 years, while fares have been re­
duced from 11c a mile in 1928 to

19

OVERNIGHT
•
•

COLLECTIO N .
a n d
TRANSIT
SER V ICE .

A IR M A IL- Coast to Coast
R A IL MAIL-Within 500 Miles
W
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ÊÊÊÊm


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Federal Reserve Bank of St. Louis

^ Our central location and mail facilities enable us
to provide quick service on your collection and
transit items.
'At Evening departures of air and rail mail give over­
night delivery to east and west coasts, and to points
on both borders.
The Om aha National Bank by virtue of these advan­
tages has developed unusual speed and efficiency
in handling items for correspondents.
Inquiries are invited.

The Omaha
National Bank
M em ber, Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

20
about 5c in 1947. The volume of
under 59,000 ton miles of express has
jumped to more than 68,000,000 ton
miles of express and freight.
Thomas W. Lamont, a former part­
ner of J. P. Morgan and Company,
who died recently, was a great lover
of journalism and told Henry Seidel
Canby, publisher of the Saturday Re­
view of Literature, that journalism
had been his first love. “ Not,” he said,
“that my life as a banker has not been
enjoyable and interesting to a high
degree, but I intended to become a

newspaperman, and the desire has
never quite died.”
As a matter of fact, Mr. Lamont
was responsible for establishment of
the Saturday Review of Literature.
Mr. Canby says of Mr. Lamont,
“Personally, lie was a man of infinite
kindness and equal charm. He had a
quality of steel which one saw only
occasionally but which in a glimpse
measured the man as a master of af­
fairs and a leader of men.”
Today in China $89,000 equals 1

American dollar and at a dinner party

the other evening a friend of ours
showed us a letter she had just re­
ceived from Shanghai which had come
air mail and had $39,000 in stamps on
it including 3-$3,000 stamps, 1-$10,000
stamp and l-$20,000 stamp.
Inflation in the United States has
not quite reached this height as yet.
James A. Farley, speaking before
Colgate University on the “ Human
Side of Politics” said that many of the
world’s ills could be traced to Mr.
Roosevelt’s third and fourth terms.
He said, “The third and fourth terms
brought a great mind, hut one worn
by the weight of years and cares of
state, to the all-important conference
at Teheran and Yalta.”

Instead of a strong mind at these
conferences, “we had a weakened
president dividing the world in a
series of concessions embodied in
secret agreements, which having aris­
en from the Pandora box of secret
diplomacy, are plaguing the world’s
children with blood, death and fears.”
Robert H. McCrary, Des Moines in­
vestment broker and golfer, has joined
the firm of Bateman and Eichler and
Company, investment bankers in Los
Angeles, California.
Mr. McCrary was a member of Mc­
Crary and Dearth Investment Brokers,
600 Des Moines building. He won the
Des Moines golf championship in 1923
and 1927; the Trans-Mississippi cham­
pionship in 1929-30.—The End.

o m m e rc é
SPECIALIZED

TRANSIT

SERVICE

fo r B A N K E R S
The entire Commerce organization is
geared to speed and efficiency. Twice
around the clock—24 hours a day—is the
Commerce transit operation. The pictures
tell a graphic story of this Commerce spe­
cialized service for bankers—
Union Station where all rail service
is combined in one terminal.
2—
Approximately 150 mail trains enter
and leave Kansas City every day.
3—
Commerce Box 248 at the main post
office where special messenger calls
every 30 minutes.
4—
Transit department in the bank build­
ing operates two shifts a day.

¿apr' ;

(Continued from page 17)
slightly higher than it was at the last
preceding peak in 1929.

Three Major Problems

1—

5—

Night transit department in Union
Station completing twice around the
clock service to Commerce cus­
tomers.

w

' ÙV-.

(ommercejrust (oimpaiiy9
C apital tf-uncU. C ^ceed <2/ M illion. ^balla'U.

KANSAS CI TYS LARGEST.BANK
M E M B E R FED ERAL D EPO SIT
Established 1865

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

BANKS MUST HAVE A SOUND
LOAN POLICY

IN SU R A N C E C O R P O R A T IO N

While these developments have been
taking place, three major financial
problems have been crystallizing for
business:
The first is that business needs a
great deal more money to handle its
largely expanded physical volume at
present price levels.
Secondly, this demand is not only
running into higher rates but into a
scarcity of equity capital as well. As
a result an unbalanced position be­
tween debt and equity is being built
up.
In addition to these two financial
problems, business has to cope with a
very high level of breakeven points.
This brings about the risk that an ap­
preciable drop in sales might seriously
impair profit margins.
All of these considerations lead to
the conclusion that a sound and clear­
ly expressed loaning policy is essen-

21

80 Years o f

Specialized Experience


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

★

★

★

★

★

★

^T^HIS B A N K has been closely identified with the live
stock industry in Chicago for m ore than three-quarters
of a century. We know the im portance of speedy transm is­
sion of proceeds of live stock sales and for years have had
these credits in the hands of M idwest bankers the next day.
This is only one of our many services used by bankers
throughout the Middle West.

? r/< >

LIVE STOCK
BANK Î

^ /i f f /i f m a i

cß

*9/1

ESTABLISHED 1868
M em ber Federal Deposit Insurance Corporation

U N IO N

STO C K YARDS

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

22

C eleb ra tes H is

be avoided. When evidence of this is
thought to exist an even more com­
plete knowledge than usual of all of
the facts is essential.
Capital loans also present unusual
problems. Under present conditions,
one important consideration is to de­
termine how rapidly the facilities to
be financed will be turning out goods.
If the time is in the distant future it
may be unwise to create new money.
Under these circumstances the added
purchasing power bids for labor and
materials that otherwise would be
available for production for current
use.
Lastly, sound lending policy de­
mands full cooperation with the super­
visory authorities in the important
part which they are playing in the
fight against inflation.—The End.

Y ea r

ABOUT BANKERS YOU
KNOW

ON HIS GOLDEN jubilee in the banking business, Walter Kasten, left, presi­
dent of the First Wisconsin National Bank, Milwaukee, was honored at a dinner
at the Milwaukee Club.
Mr. Kasten is pictured with Walter Geist, center, president of Allis-Chalmers
Manufacturing Company, and Harold Seaman, both directors of the First Wis­
consin.
In addition to other officers and directors of the bank, the dinner was attended
by bankers from many Wisconsin cities.

tial today. Such a policy could well
aim at putting some ceiling on the
amount of the loan portfolio. It also

might provide for a periodic, tough in­
ternal examination of loans,
Speculative loans should, of course,

(Continued from page 17)
was born in Alexandria, Nebraska,
June 28, 1892. His father was a doc­
tor and young Carl lived in various
small towns. He was drawn to Chi­
cago where he entered the University
of Chicago, paid his own college ex­
penses through his job as reporter for
Chicago papers, and was graduated
from the University with a Bachelor

Field Warehousing—
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L m cp, pÄ jajdtkaL GxpSLfiMnoL. inAiLhSL v a lic i
waM hoiiäJL A saripiA ,.

U)sl

ù w ììjl

ip u ) L

b w ß A tiyo d w tL ."

ê>t.

3ßml te r m in a l OTareijouöe C o ,
ST. PAUL, MINN.
— Other Offices —

— Iowa Office —
515 Iowa-Des Moines National Bank Building
DES MOINES
TELEPHONE 2-1208
T. C. CANNON. DISTRICT MANAGER

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

MINNEAPOLIS
NEW YORK

MILWAUKEE
BOSTON

PHILADELPHIA
DALLAS

MEMPHIS

CHARLOTTE

CHICAGO

BUFFALO

DETROIT

INDIANAPOLIS

PITTSBURGH

SYRACUSE

ATLANTA

ALBANY, GA.

JACKSONVILLE

SHREVEPORT

23

can profit by the seven basic services of this
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In a small bank, one National Multiple-Duty Accounting Machine can post the depositors’
accounts, post the loan and discount record, post whatever type of mortgage record used, post
the trust ledger, post the general ledger, make the daily statement of business, and write the
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For its removable form-bars simply lift off, and snap on—no screws, catches, or fittings to
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In a larger bank, separate National Multiple-Duty Accounting Machines may be
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National Multiple-Duty Accounting Machines permits them to handle any shifting
overloads promptly as they occur, and they are kept busy every hour of the
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National Multiple-Duty Accounting Machines speed production and
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tems expressly designed for bank work. Call your local National repre­
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Ohio. Sales and Service Offices in over 400 cities.


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Federal Reserve Bank of St. Louis

Q/f^atlonal
CASH REGISTERS • A D D IN G M A C H IN ES
A C C O U N TIN G M ACH IN ES

THE NATIONAL CASH REGI STER COMPANY
N o r t h w e s t e r n B a n k e r, M a r c h , 1948

24

Prepared by L A W R E N C E
...to help inform the businessman
who needs to borrow
beyond his open line of credit

of Science degree in 1917, just in time
for military service. He put in a
tour of overseas duty, came out of
the Army Air Corps as a captain. In
December, 1919, he was married to
Frances Deneen, the same year he
went to work for the Continental.
Four years later he was named assist­
ant cashier, became second vice presi­
dent in 1927 and vice president in
1930. He was elected to the board o f
directors in 1947.
Mr. Birdsall is a member of Phi
Kappa Psi fraternity, the Chicago
Club and is a trustee of the Equitable
Life Insurance Company of Iowa.

HOW A BANK DEVELOPS
HONESTY
(Continued from page 15)
problem at home, and his mother later
told bank officials that the public
recognition he had received proved to
be of great value in pointing him in
the right direction.

Honor at Schools

T his new FREE

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37 Drumm Street
Denver 2, Colorado
First National Bank Bldg.

W A REH O U SIN G

OFFICES:

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I N . LaSalle Street
St. Louis 2, Mo.
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72 W all Street
Kansas C ity 7, Mo.
933 M ulberry Street

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N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

Cases began to pour in, and it was
decided that rather than have the
children come to the bank, the re­
wards would be given through the
schools, whenever possible. Teachers
and principals have been most co­
operative in reporting these cases, and
the bank feels that the good done the
individual child in giving him a pat
on the back carries over to the others,
who some day “go and do likewise.”
From the beginning, the bank’s idea
was to establish a broad base for their
reward plan. In other words, although
each child would be rewarded accord­
ing to the individual case, all of the
children would belong to a club to be
organized after the plan had been in
effect for a month or two. By Christ­
mas, over forty children had been re­
warded, and letters were sent to each,
wishing them a merry Christmas, and
telling them that they were now mem­
bers of the George Washington Club.
All children who have been reported
to the bank, and whose finds come
within the age limit and eligibility
rules of the plan, whether or not they
receive a monetary reward, become
members.
The cases reported to the bank have
been as varied in interest as are the
children they represent. One child
was the bad boy of the neighborhood,
yet, when he found a wallet with $35
in it, he sought out the owner and
returned it to her. That $35 repre­
sented the total weekly income of a
family of four, and the owner called
the bank about the boy. She was able
to give him only a very small reward
for his honesty, but under the bank’s
rules, he was eligible for a leather
billfold, stamped with his name, and

25
$5.00. The newspaper took pictures
of him and several other youngsters
from the same school who belonged
to the club, and carried them in the
evening edition. The owner of the
billfold, the principal of the boy’s
school, and the bank, all felt that per­
haps here was a turning point in a
child’s life. Rewarding this youngster
for a good deed, publicly, may well
have been the thing that will direct
him in the right way.

Finds $1,400
Another child, a 14-year old girl, was
walking home one day when her
galoshes struck against a paper sack.

THIS IS a membership card in
the G-eorge Washington Club spon­
sored by the Omaha National Bank.

Out of curiosity she bent down to look
at it, and discovered that it contained
over $1,400 in cash and bonds. She
took it to her father’s office and he
contacted the police, who located the
owner. That paper sack held the life
savings of an elderly Omaha woman,
and the comfort she will enjoy in her
old age will be entirely owing to the
honesty of a little school girl.
Not all of the children have found
such large amounts of money. One
Boy Scout found a purse with $2.00
in it, and ran an ad in the paper
through which the owner was found.
Two days later he lost his own billfold,
a Christmas gift which he prized high­
ly. Despite the publicity given such
a natural human interest story, his
own wallet was never found. The
bank sent him a new one to replace
the one he had lost, and to renew, in
some measure, his faith in human na­
ture. When asked, later, whether or
not it had been a temptation to keep
the $2.00 in the billfold he found, this
child said simply, “Yes, but I didn’t.”

Ingratitude
Still another angle in this story of
rewarding children for honesty is the
one illustrated by the little girl who
found a purse with $20 in it in a large
downtown theatre. She immediately
took it to the manager. When the
owner arrived to claim it, she insisted
that several one-dollar bills were miss­
ing, and accused the little girl of tak­
ing them. The child, aged 10, the
daughter of a prominent business man

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

Wisconsin's Bank for Banks

1

This outstanding bunk— established
in 1853— serves as Milwaukee de -

£

;

pository for over 92 per cent of all
the banks in W isconsin!

jlt^vVp'I
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
lo write for further information.

FIRST WISCONSIN
NATIONAL BANK
o f M ifw a u kee
MEMBER

OE

THE

FEDERAL

DEPOSIT

I NSURANCE

CORPORATION

N o r t h w e s t e r n B a n k e r , M a r c h , 1948

BANK
STOCK
WANTED
Briefly outlined here are the wants
of a few of the many bankers re­
corded with us who are now in the
market for the purchase of bank
stock carrying active executive posi­
tions.
1. A Norwegian-Lutheran, now ac­
tive manager of a good Iowa bank,
salary $3,300.
Has $25,000 to in­
vest. Wants control of a small bank
in northern Iowa or southern Min­
nesota.
2. This man is highly recom­
mended by the supervising authori­
ties for the fine job he has done in
the bank he now manages for
others.
He is 42, German Protes­
tant. Can invest $30,000 to $50,000.
Prefers north-central Iowa.
3. Very successful Nebraska bank­
er, age 48, with $70,000 to invest,
wants control, town of 500 up. East­
ern Nebraska, South Dakota, Iowa,
Southern Minnesota, Wisconsin or
Illinois.
4. A college graduate with both
city and country bank experience.
Excellent credit man, age 48. Can
invest $200,000.
Wants control in
town of 5,000 to 25,000 in Iowa or
Illinois.
5. Here is another very fine suc­
cessful banker with $100,000 to in­
vest in Iowa or southern Minnesota.
He is a Norwegian and a Protestant.
Present salary $6,000.
6. This man, age 52, is GermanCatholic. Can invest $100,000. Fine
record. Prefers Iowa or adjoining
states.
7. A ge 39, German-Lutheran, now
running a good country bank for
others. Can invest $50,000 or $75,000, if two positions available. Pre­
fers North Dakota, South Dakota,
Iowa, Minnesota or Montana.
8. Here is an outstanding young
man, age 36, holding a very respon­
sible bank position. Wants connec­
tion in central or northern Iowa in
town of 800 to 2,500 where he can
invest $30,000 to $75,000.
9. This successful Iowa banker
wants bank in southwestern Iowa,
town of 1,000 up. W ill invest $50,000 to $100,000.
Confidential correspondence solic­
ited regarding bank opportunities
that would be of interest to an y of
the above men.

Bankers Service Co.

Henry H. Byers, President
P.O.Box 1435, Des Moines, Iowa
N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

FOUR MEMBERS of the George “Washington Club come from Benson West
school in Omaha. William Hudnall, 12 (seated), is the school’s newest member
and is showing his new wallet to Thomas Plummer, 12 (le ft); Donald Brown, 13,
and John Bird, 5. Young Hudnall found and returned $35 lost by an Omaha woman.

in the city, was deeply disturbed by
this unfair and unexpected accusation.
The case was reported to the bank in
a routine way, and after the girl had
received a reward from the bank, pre­
sented to her by the principal of her

school, her father wrote to the bank,
telling them that they had done a “ far
better thing” than they knew in re­
building this child’s belief in the good­
ness of people.
Some of the yougsters in the George

Isffe c iiv e e o -o rd in a tio n
of all departments assures rapid, efficient han­
dling of every type of banking transaction. You
are invited to use any or all of our facilities.

C

i t y

N

a t i o n a l

R

a n k

A N D T R U S T C O M P A N Y o f Chicago
208

SOUTH

LA S A L L E

STREET

( M E M B E R F E D E R A L D E P O S I T IN S U R A N C E CORP.)

27
Washington Club have become mem­
bers because they found as small a
sum as 6c on the school playground,
and took it to their teacher. The bank
feels that 6c, to a six-year old, means
more than a dollar bill. With 6c he
can buy something he understands:
a candy bar, an ice cream cone, a bal­
loon. A dollar bill is usually pretty
vague in his mind. When a child of
six or seven finds these small sums,
the bank makes them members of the
club, and writes them a letter con­
gratulating them on their honesty.
Today the George Washington Club
is a flourishing organization. It totals
90 members, with 46 girls and 44 boys.
Not all, of course, have received cash
awards, but all, without exception,
have been made members of the club.
Their membership card is their pass­
port to any group.activities. The first
club party was held on February 21st,
the eve of Washington’s birthday.
Seventy-eight members were present
and took part in a radio broadcast
from a local station. The children
were interviewed by the master of
ceremonies, and some of them sang
or played the piano or recited a poem.
The show was extemporaneous in na­
ture, but one small boy rose to the
occasion with a “piece” he had memo­
rized for the great day. In a small, but
very proud, voice, he announced:
“ I love George Washington,
I love my country too;
I love its grand old flag;
Its red, its white, its blue.”
And sat down abruptly.

. . when you route
your California items
through Bank of America

Officials Assist
A luncheon was served to the chil­
dren and their parents in the studio
and then they were all guests of the
bank at a matinee. Two members
were unable to be there because of ill­
ness, so the bank took the party to
them. One of the bank officials
brought them the same refreshments
the other children were having.
The Omaha National Bank has “cast
its bread upon the waters,” and is confi­
dent that it will “find it, before many
days.” The program has received
favorable comment from all sides.
Parents, teachers, children, civic lead­
ers—all are in agreement on the prop­
osition that this plan is an aid to
character building among the children
of Omaha. It is these qualities of in­
tegrity and uprightness which make
the good citizen, and the Omaha Na­
tional Bank believes that its George
Washington Club is a real influence in
the lives of Omaha’s youth. It be­
lieves also that some of the best good­
will advertising it has ever done has
been achieved through this purely al­
truistic venture: The George Washing­
ton Club.—The End.

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

With Bank of America as your California corre­
spondent, items for Stockton or Eureka are sent
by you direct to this bank's branches in those
cities. So, too, with items to any of more than
300 California communities where this bank has
branches. One account with either the Los An­
geles or San Francisco office of Bank of America
makes this California-wide d irect timesaving
service available.

Banluif America
NATIONAL Ja v Si n ag s ASSOCIATION

Californio’s Statewide Bonk

Bank of Am erica Travelers Cheques a re known
the w orld over. Se ll them to yo ur customer.

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

28

ANNUAL INVESTMENT SURVEY

I f off* Hanks A vv
investing Their Funds
Results of a Survey Made Among Banks of the
Middlewest on What Types of Securities Make Up
Their Investment Portfolios
4

NORTHWESTERN BANKER

SURVEY

in the bond port­
folios of banks in the middle
west bulk largely in the threeyear term bracket, according to a sur­
vey just completed by the N or th w est ­
ern B anker among 1,000 banks in this
area. The survey was made among
banks in Iowa, Minnesota, Nebraska,
North Dakota and South Dakota.
The charts on this and the opposite
page graphically depict answers the
bankers made to eight questions, and
to make the analysis of their answers
more informative, the replies are di­
vided into three deposit classifications
—deposits under $2,500,000, deposits of
$2,500,000 to $5,000,000, and deposits
over $5,000,000. It was felt that such

M

a t u r it ie s

With Respect to Your Holdings
of Tax Exempt and Revenue,
and Other Corporates, Which
Do You Consider the Wiser
Investment?
Short Term High
Grade

Some Longer Term
Medium Grade

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

1

Up to
$2,500,000
Deposits

I

1
1

I
=
=

More than
$5,000,000
Deposits
^ ---------------

=

*

1

l

a division would allow readers to bet­
ter apply the answers to their own
banks.
It is important that the reader note
the “Key to Charts” appearing on this
page. It shows the three different
styles of bars used in the charts, and

W hat

Per Cent of Your Total
Reserves Do You Feel You
Should Invest in Your Bond
Account?

N o r t h w e s t e r n B a n k e r. M a r c h , 1948


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

each bar applies to a deposit classifi­
cation.
Referring again to the question,
“ How are the bonds in your invest­
ment portfolio diversified as to ma­
turities?” it will be noted that com­
paratively few securities held are for
more than a 10-year term, except in
the one instance where small banks
say their “other corporates” holdings
are 17 per cent over 10 years.
To the question “With respect to
your holdings of tax exempt and revnue, and other corporates, which do
you consider the wiser investment?”
95 per cent of the banks preferred
short-term high grade securities, and
some of the comments as to why were
as follows:
“ I feel rates will stiffen before long,
and I don’t want to be too far out
when it comes.” “ I want to have funds
coming in to meet inflated deposits

Do You Buy Any Bonds Which
You Do Not Intend to Hold
to Maturity?
YES

NO

Investments

Of

Governments

Governments

No Change

I

69 %

66% 65 %

13%

11 %

Do You Expect Your Loans to
be Greater, or Less, in 1948?
Greater
69 %


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

Less

Other Corporates

—

3 - 10

— 29%

Over 10 —

8%

Tax Exempt and
Revenue

Equipment Trust
Certificates

3 years — 42%

3 years — 80%

3

3

-

10

—

Over 10 —

50%

8%

3 years — 61%

3 years — 40%
3 - 10

— 34%
5%

—

52%

Over 10 —

8%

-

10

—

Over 10 —

20 %
0

3 years — 79%
3

-

10

—

Over 10' —

21%
0

Other Corporates
3 years — 51%
3 - 10

—

32%

Over 10 — 17%
3 years — 51%
3

10

—

45%

Over 10 —

4%

-

24 %

18%

8%

63%

3 years

Over 10 —
26 %

Equipment Trust
Certificates

How Are the Bonds in Your Portfolio Diversified
as to Maturities?

M
©

Less

Tax Exempt and
Revenue

95. 5 %

Do You Expect Your Deposits
to be Greater, or Less, in 1948?
Greater

Your Total Bond Holdings, What Percentage Do You Have in

CO
1

which may be withdrawn in the next
few years.” “ Security and safety come
first, and income second.” “We always
want high grades, whether longs or
shorts, but especially in the longs.”
“The market price is too unstable to
hold the longer term issues. High
grades are preferred to medium grades
because of the obvious results in the
event a depression sets in.” “ I believe
in medium term high grades in spaced
maturities, allowing the governments
to take care of our reserve require­
ments.” “ I’ll take short term high
grade. Tax-exempts, particularly, are
not too marketable and therefore they
should be short for liquidity.”
A brief summary of the charts re­
veals that banks continue to have the
largest portion of their bond holdings
in governments; they rely upon their
correspondent bank and investment
services for advice on their bond port­
folio; short-term high grade bonds are
considered the wiser investment; de­
posits are expected to recede and loans
are expected to increase in 1948.—The
End.

29

No Change

3 years

—

54%

3

—

39%

Over 10 —

7%

-

10

3 years
3

-

10

Over 10

—

48%

3 years

—

60%

3 years

—

52%

—

46%

3

10

—

40%

3

—

40%

—

6%

Over 10

—

0

-

-

10

Over 10 —

8

%

Upon Whom Do You Rely for Advice on Your Bond Portfolio?
Correspondent
Bank

Bond House
Representative

Investment
Services

Investment
Counsellor

Own Advice

71 %

23 %
20 %

15%
10% 10 %

8%

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

30

Investments

M u n icip a ls A r e H ood in v e stm e n t
PEAKING before the Ninth Minne­
sota Bankers Conference at the
S
University of Minnesota, Harry L.
Severson, of the Municipal Service De­
partment of Dun & Bradstreet, stated
his belief that municipal bonds are
relatively good investments at current
market prices, but that state and local
governments face many serious prob­
lems. He warned bankers that com­
mitments should be restricted to high
grade bonds which are improving or
at least not deteriorating.

Mr. Severson pointed out that the
yield available today on long-term
bonds is higher than it has been for
a number of years. A bank, he added,
can often obtain a higher net return
on municipals than it can on govern­
ments. He cites three reasons for this
increase in yields:
1. Interest rates have risen and the
Federal Reserve System has tightened
the money market as an anti-inflation­
ary measure.
2. As the increased volume of tax-

JAMES C. SHAW

OWEN P. McDERMOTT

SiLaw, Medermott &C°*
INVESTMENT SECURITIES
MUNICIPAL
INDUSTRIAL
RAILROAD
PUBLIC UTILITY
914 Liberty Bldg.
DES

Phone 3-6119
MOINES

9,

IOWA

A. G. Becker & Co.

exempt bonds comes on the market, it
becomes necessary to offer better
yields relative to other securities to
attract new buyers.
3.
The tax exemption feature of mu­
nicipal bonds may appear less attrac­
tive to some investors than formerly,
largely because of the possibility of
reduced taxes exerting a bearish influ­
ence.
Even though the bond market has
been going downward for some weeks
and may not have hit bottom, Mr.
Severson said that it would probably
work out best for a bank to keep its
funds invested in maturities which fit
in with an over-all investment plan,
rather than keep its fund uninvested.
The importance of a carefully worked
out maturity plan was stressed.
In a period of rapid economic
changes, Mr. Severson said great care
should be exercised in selecting in­
vestments. The ability of the various
local governments to meet the larger
budgets, due to a higher price level,
deferred maintenance, as well as de­
mands for improved services, varies
widely. Investment decisions based
upon past impressions are subject to
an accumulation of errors.
Mr. Severson then pointed out a
number of problems of security analy­
sis which are of particular significance
at this time. The high cost of new
construction makes necessary a care­
ful consideration of the physical con­
ditions of the capital improvements
and plans for extensions. A superficial
review of the financial record may
give a wrong impression of the credit
quality of the bonds, because almost
all communities seemed to make prog­
ress during the war because they could
not spend money. The important
ouestion is whether advantage was
taken of this period of good business
to improve their position.—The End.

Members
N E W Y O R K STOCK E X C H A N G E
CHICAGO STOCK E X C H A N G E
N E W Y O R K CURB E X C H A N G E (A SSO C IA TE )
Chicago 3
120 SO. LA SALLE STR EET

New York 5
54 PINE STREET

Affiliated with

A. G. Becker & Co.
IN C O R P O R A T E D

Established 1893

Underwriters and Distributors
of Investment Securities

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

On Trade Program
James L. Sharp, manager, foreign
department, First National Bank in
St. Louis, served on a banking panel
of the Mid-Continent World Trade
Council Conference held last month in
Cedar Rapids, Iowa.

Dividend
The board of directors of The First
National Bank of Chicago, at their
regular meeting last month, declared
a dividend-of $2.00 per'share on the
capital stock of the bank, payable
April 1, 1948, to stockholders of record
March 24th; also a dividend of $2.00
per share payable on July 1, 1948, to
stockholders of record June 24, 1948.

investments

31

FquipBnent Trust
Far Hank in vestm en t
The Safety and Short Term Factors
Should Interest Conservative Investors
By H. HOLDEN SMITH
Halsey, Siuart & Co., Inc.
Des Moines, Iowa
OR many years some of the most
conservative banks and institutions
have found Equipment Trust Cer­
tificates particularly well suited to
their needs for top quality short term
investment. Because of somewhat
limited supply however, many others
have not had occasion to become fa­
miliar with the remarkable record of
these securities—extending back to
1868.
Present requirements for new equip­
ment, combined with easing of short­
ages of material for its manufacture,
are expected to increase the supply
of Equipment Trust financing. As a
result these securities will be available
to a larger number of banks and in­
stitutions, making it timely to review
some of the protective features which
have made them so highly regarded.

F

principal and dividends by the rail­
road, agreement to keep the equip­
ment repaired, insured, replaced if de­
stroyed, etc.
The Equipment Trust Certificates
are usually issued to mature annually
or semi-annually, in equal amounts,
due within ten or fifteen years. Thus,
the principal amount declines rapidly
while the equity for the remaining ma­
turities is increasing. Furthermore,
full payment of the debt is provided

for many years, as a result of their
wartime performance. Their financial
position likewise has greatly improved
with substantial reduction of debt and
fixed charges, and constant increase
in operating efficiency. The extreme
test of performance of equipment ob­
ligations, however, has come during
times of financial distress, with re­
duced earnings and even receivership
and bankruptcy. Their record dur­
ing such periods has been enviable

Philadelphia Plan
When railroads acquire new loco­
motives, freight or passenger cars, the
purchase is usually financed through
so-called “Philadelphia Plan” Equip­
ment Trust Certificates; or less fre­
quently through conditional sale or
equipment mortgage agreements. Only
the Philadelphia Equipment Trusts
are discussed here since the other
plans are seldom used for publicly of­
fered issues. Under the Philadelphia
Plan the railroad arranges for the pur­
chase of new equipment and makes a
down payment of usually 10 per cent
to 25 per cent of the total cost. Equip­
ment Trust Certificates are then is­
sued and sold for the balance of the
cost but the actual title to the equip­
ment is vested in a trustee for the
benefit of the certificate holders.
The equipment is then leased to the
railroad, by the trustee, for rental pay­
ments sufficient to pay in full the
serial maturities and dividends, or in­
terest, on the certificates. Only when
the final maturity of the certificates
has been paid does the railroad gain
title to the equipment. In addition,
numerous other protective features
are usually included in the agreement
and lease such as: the guarantee of

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

WHEN RAILROADS acquire new locomotives, freight or passenger cars, the
purchase is usually financed through the so-called ‘ ‘ Philadelphia Plan” equipment
trust certificates. Where safety of principal and short or medium maturity are
of major importance, equipment trust certificates occupy a premier position.

for long before the end of the useful
life of the equipment, which ranges
from 20 years to 35 years or longer,
depending on the type.

with very few cases of any delay in
payment and almost none of actual
ultimate loss.

High Standing

The courts have for many years
recognized the prior position of equip­
ment obligations as well as the indis­
pensability of the equipment from an
operating standpoint. As a result,
regular principal and interest pay­
ments have been continued on equip­
ment certificates even in difficult
situations where a railroad was forced
to defer payments on its senior mort­
gage bonds. Actually it is not unusual
for railroads to issue and find ready
demand for new equipment obligations
even during periods of receivership—•

The exceptionally high standing of
equipment obligations is based on the
strength of these protective features
plus the fact that the underlying se­
curity is indispensable. Obviously a
railroad cannot operate without loco­
motives and cars. Also the equipment
covered in most cases is new and,
therefore, the most efficient and valu­
able asset.
Recognition of the value and impor­
tance of the railroad systems to the
country is perhaps greater today than

Recognized by Courts

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

32

Investments

a further evidence of their strength of
security.
It is natural that any investment of
such recognized quality will not pro­
vide a yield as high as might be ob­
tained from one involving greater risk.
However, where safety of principal
and short or medium maturity are of
major importance, Equipment Trust
Certificates occupy a premier position.
The fact that an increasing supply
may be available soon should be of
interest to all conservative bank and
institutional investors.—The End.

M u n icip a l H and P r ic e C om parison
TATE and municipal bonds declined
nearly 10 points between Decem­
S
ber, 1946, and December, 1947, on an
average for 10- to 25-year bonds as
shown in the fourteenth annual price
and yield survey of state and munici­
pal bonds prepared by the Chemical
Bank & Trust Company.
The 15-year period 1933 to 1947 saw
municipal bond prices make their alltime lows and highs—from the deep

INVESTM ENT
SECURITIES
Public Utility
Industrial
Railroad
Municipal

A.C.A

LLY N

and

com pan y

Incorporated
100 W e s t M o n ro e S tre e t, Chicnsro
N ew Y o rk

M ilw a u k e e

O m ah a

W a t e r lo o

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

M in n e a p o lis
M olin e

MUNICIPAL BONDS
Iowa

Illinois

CORPORATION BONDS
Public Utility

Industrial

Railroad
Write for current list

q u a il
Davenport Bank Building

& co.
Davenport, Iowa

W aterloo Office — Commercial Building
M em ber Chicago Stock Exchange

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

discounts of 1933 to the high premiums
so common in the early months of
1946. The Chemical Bank & Trust
Company’s annual price comparison
embraces this 15-year bond market
cycle, and thus presents a most inter­
esting record of the market perform­
ance of over two hundred major state
and municipal issues, the majority of
which were outstanding in 1933, with
others added from time to time to sup­
plement issues retired at maturity,
called for payment or refunded.
Using all bonds included in the sur­
vey having maturities of 10 to 25 years
(approximately 100 different issues
with an average maturity of about 15
years) the record discloses an extreme
price swing from 90% in December,
1933, to 134% in December, 1945, and
a subsequent reaction to 119% in De­
cember, 1947. Expressed in terms of ’
basis prices, or yield, the movement
was from 5.29 to 1.47 per cent and
then back to 2.18 per cent at the close
of 1947, which is the most generous
yield offered on bonds of this char­
acter since December, 1941.
While the survey was not designed
primarily as a bond market index, its
careful compilation and comprehen­
sive scope furnishes the necessary
data from which it is possible to con­
struct a valuable set of municipal
bond price averages as of year-end
dates.—The End.

Visit Chicago Bank

“We came to visit a user of our
product,” said one of a group of ad­
ministrators and guests of the Ameri­
can Association of School Administra­
tors who recently made a tour of the
Continental Illinois National Bank and
Trust Company of Chicago.
The administrators—108 in number
—come from many western states.
They were visiting industrial plants in
the Chicago area. Twenty-seven of
their number spent a day at the Conti­
nental Illinois, where they reviewed
the services and the work of the bank,
and discussed selection of young peo­
ple and their education and training.
They visited the bank’s divisions to
see the men and women actively en­
gaged in carrying on the financial
transactions of the largest institution
of its kind in the middle west.
The group flew to Detroit to visit
automobile plants. Then their air tour
took them to New York and Atlantic
City. As they moved eastward across
the nation, the school administrators
were joined by other members of their
body. At Atlantic City they attended
the national convention of the associa­
tion.

Investments

33

EHeersifieation Hives
T HE broad diversification of invest­
ment afforded by common trust
funds allows “a more stabilized form
of trust investment than was possible
where each fund was invested by it­
self,” Carl W. Fenninger, vice presi­
dent of the Provident Trust Company,
Philadelphia, Pennsylvania, said in an
address to the Mid-Winter Trust Con­
ference of the American Bankers Asso­
ciation in New York.
Ten years of experience with com­
mon trust funds shows that they are
“practical and valuable tools in the
management of trust estates,” Mr. Fen­
ninger continued.
“ During the last ten years we have
not experienced the kind of depressed
security market which existed during
the 1930’s,” he asserted, “and we meas­
ure in our minds just a bit what the
position of the funds would be should
we have a repetition of such market
conditions. However, some commin­
gled funds existed before the present
common trust fund arrangements were
set up and records which are available
as to these funds during the early
1930’s indicated that they fared sub­
stantially better than many trust funds
invested on their own without the
diversification made possible by the
commingled fund.
“While, of course, it is impossible
to see what would occur under any
given set of circumstances, it does
seem that we are justified in believing
that trust funds having participations
in common trust funds will work out
better, from the standpoint of both
stability of value and income return,
than individual trusts invested in the
ordinary course of business.
“ In the beginning, we stressed their
usefulness to people of small and mod­
erate estates, and in that field I think
no one who has had part in their
operation will denv that they are the
outstanding contribution of m a n y
years.
“The objection to the use of the
common trust fund as a business-build­
ing medium was logical and reasonable
during the early days and it is prob­
ably still true that we should move
forward in our use of them for this
purpose with caution and reserve.
This is especially true perhaps until
such funds have operated over a long­
er period of time and have experienced
more ups and downs in security mar­
kets and interest rate changes. How­
ever, it is still true that if these funds
are to serve their fullest purpose, they
should be more fully known. This
can be done only by educating people
as to their value.

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

“ It would seem that there is a clear
field for expansion without undue con­
centration and that thought should be
given to the possibility of opening the
door, at least to some extent, to edu­
cational publicity.

“ It is, of course, well known to all
of us that the trust business as such
is not a very profitable business, that
there is a definite limit to the charges
which can be made for services and
this probably has been reached in

I N F O R ME D ACTION IS THE KEY TO S U C C E S S F U L INVESTING

Safety Bulwarked b yla w
R EP R ES EN T A T IV E

T h eir record of secu rity and soundness under the varied

O F F E R IN G S :

conditions of se ve ral d ecad es am p ly supports the en­
v ia b le position of A m e rican m unicipal bonds in tod ay's

Atlanta, Georgia
V a r io u s P u rp o s e s , 1 ^ % B o n d s
State of C a l i f o r n i a
2% V e t e r a n s ' B o n d s
H a r r is b u r g , P e n n s y l v a n i a
S e w e r Im p ro v e m e n t B o n d s
State of I ll in o is
& 1% % S e r v ic e R e c o g n itio n B o n d s

investm ent m arkets.
But if fu rth e r bolstering w e re re q u ire d , it w ould be
found in th e le g a l s a fe g u a rd s w hich su rro u n d these
ob lig atio n s of states, counties, com m unities and ta xin g
d istricts. Th rou gh the y e a rs , strong le g a l controls have
been develop ed until the m odern investor in m unicipal
bonds has his rig h ts more c le a rly d efin ed an d his posi­
tion more firm ly p rotected th an e ver b efo re in history.

Ly n n , M a s s a c h u s e t t s

N ot o n ly our own thorough in vestig atio n but the

\ \ % C it y H a ll B o n d s

op inion of reco g n ize d le g a l counsel enters into the
purchase by H a lse y, S tu a rt & C o . Inc. of m unicipals

S e a t t le , W a s h i n g t o n
2 % L ig h t & P o w e r R e fu n d in g B o n d s
W au sau, W isconsin
1J£% S c h o o l B u ild in g B o n d s

fo r re o ffe rin g to investors.
W rite w itho ut o b lig atio n fo r o u r latest m unicipal
o ffe rin g list.

H A L S E Y , S T U A R T &. CO . I n c .
1 2 3 S O U T H L A S A L L E S T R E E T , C H I C A G O 9 0 • 35 W A L L S T R E E T , N E W Y O R K 5 • A N D O T H E R P R I N C I P A L C I T I E S

STO CKS
General Market
Iowa Corporations

C O R P O R A T E BONDS
Utility, Industrial and
Railroad

M U N IC IP A L B O N D S
Iowa and General Market

WHEELOCK & CUMMINS
IN CO R PO R A TED

Members Chicago Stock Exchange
Underwriters & Distributors
DES MOINES

CH ICAGO

200 Equitable Building

135 South LaSalle Street

Phone 4-7158
Teletype: DM 184

Phone:

Andover 6700

Teletype:

CG 245

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

34

Investments

many places so that the reduction of
expenses is of vital importance in our
operation.
“The experience with the common
trust fund has demonstrated that it
does reduce expenses and that through
its use costs of handling small ac­
counts can be minimized. Indeed, it
looks as though it were the only
method through which small accounts
may be handled without loss.
“While common trust funds are still
in their infancy we know that never
in the trust business have we had a
major development of this kind with
as great value in the accumulation and
conservation of savings.
“The common trust fund presents a
medium for investment of trust funds

which is of great social benefit from
the public standpoint and of very
material effectiveness in the adminis­
tration of trust funds and should,
therefore, be fostered.”—The End.

W . A . R u tle d g e " P o e m s"
“ Poems from Just Between Our­
selves” is the title of a book of verse
published recently by the author, W.
A. Rutledge, secretary and founder of
the Farmers Mutual Hail Insurance
Company of Iowa. It is a collection
of interesting verse based, as the au­
thor says, “on the finest ideas gleaned
from a full and busy life.” The au­
thor, now in his 86th year, and still
at his office daily, has written the
verse at odd moments in the past two
years.

Pioneer Brokersoí
0. S.Government InsuredM
ortgages
DON McMURRAY

F.H. A. Title H’s Available
CHARLES YODER

JA c-

y ie d io iio L

C om p a n y,

.

P ro p o se d M e rg e r
A proposal which will result in the
business of The Continental Bank &
Trust Company, New York, being
joined with that of the Chemical Bank
& Trust Company has been made to
the former institution in a letter sent
to them by N. Baxter Jackson, chair­
man of the Chemical Bank & Trust
Company. Mr. Jackson stated that the
directors of the Continental Bank &
Trust Company have advised that the
terms set forth in this letter are ac­
ceptable to them and that a stockhold­
ers’ meeting will be called shortly for
approval.
Following the consolidation of the
business of The Continental Bank &
Trust Company with that of the Chem­
ical Bank & Trust Company, the main
office of The Continental Bank & Trust
Company at 30 Broad Street will be­
come the Broad Street Office of the
Chemical Bank & Trust Company,
which will give it a more convenient
location for serving many of its cus­
tomers in the financial district.
John McKee, president of The Con­
tinental Bank & Trust Company, has
been asked to become a senior officer
of the Chemical Bank & Trust Com­
pany. All other officers and employes
will also be invited to join the organi­
zation of the Chemical Bank & Trust
Company.
It is stated that the directors of the
Chemical Bank & Trust Company will
be increased from twenty-two to twen­
ty-five and that three of the directors
of The Continental Bank & Trust Com­
pany will be elected to these places.

Masonic Temple Building, Des Moines 9, Iowa

INVESTMENT
SECURITIES
Q U A L IF IE D
(yxc/unupe

FO R

BANKS

£/fcoc& (oxcJia,rt<p<e

and

Underwriters and Distributors o f

IN D IV ID U A L S

Corporate and M unicipal
★

Securities
L. H. RYAN: Io w a R ep resen ta tiv e
Union Bank <S Trust Company Bldg.

Thomas L . Crabbe & Co.
901 Merchants Building
Cedar Rapids, Iowa

S3S
,

Ottumwa, Iowa

/ t one

¿/A /

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

Over

20 years experience

Investments

35

Hankers A re Hetermined to
Hattie inflation
E a r ly 1948 S e t-B a c k D o es N ot M ean
T h e y W ill R e t re a t from P ru d e n t P o lic ie s
By RAYMOND TRIGGER
Investment Analyst
New York City
HEN some 2,000 banking ex­
ecutives from all parts of the
country met in New York to­
ward the middle of February, the
dramatic shake-out in commodities
was the principal subject of conversa­
tion. Almost all agreed that the “ad­
justment” was salutary. For one
thing, it was urged, the set-back was
relatively modest and far less than
that encountered in 1921. Other con­
ditions have changed since then, too,
and farmers today are protected by
various devices. The European Re­
covery Program, likewise, will cost
less if prices of commodities are low­
ered. Most important, of course, is
that the banking fraternity was by
no means caught unaware. It had al­
ready started a campaign emphasizing
caution in loan making.
The determined efforts of the coun­
try’s commercial bankers to battle in­
flation at this stage, rather than
attempt a belated and ineffectual effort
to escape the blame that might be
(wrongfully, no doubt) placed on it
when the inevitable crash comes, will
be carried on. The ABA is committed
to voluntary efforts by 15,000 member
banks to avoid excessive or inflation­
ary expansion of bank lending. The
early 1948 set-back in the commodity
markets will not be accepted as her­
alding a “deflation” that would justify
retreat from prudent policies by the
country’s commercial bankers.

W

Cannot Repeat Mistakes
From Mr. Dodge, ABA’s president,
came the warning and the counsel;
“We cannot repeat the mistakes of
former periods when banks con­
tributed substantially to the inflation
itself in the amount and nature of the
credit granted, and then when a de­
pression followed, made the situation
worse by calling loans and being un­
able or unwilling to extend credit.
“Just as we are now using our effort
to modify inflation on the upside, we
must be prepared to step in and mod­
ify deflation on the downside with
ample reserves of available credit.”
Banking, clearly enough, is not pre
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Federal Reserve Bank of St. Louis

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

pared to supinely accept the role of
villain, if and when a crash, depres­
sion or even a recession sets in. Ob­
viously, the investment portfolios of
the country’s commercial banks must
be fitted into the general picture. Un­
der going conditions, there can hardly
be any quarrel with the advice to
stress conservatism. The authorities
in Washington have almost endless
powers to control developments, but
have given all too little evidence of
courage and grasp. Consequently, the
investment portfolio manager is more
or less the victim of too much power
and too little willingness to face up to
the economic facts of life centered in
Washington.
Happily, this country is so rich and
has such vast potentialities that po­
litical muddling can do little more
than waste a fraction of the combined
efforts of those who work and save.

Treasury Retreats
The Treasury retreated a bit in late
February when it decided to trade
new one-year 1Vs per cent certificates
for close to five billions of old certifi­
cates and callable bonds. The rate
was no higher than that named earlier
in the year and marked the first pause
in the program tentatively embarked
upon last year of gradually upping
money rates. Obviously, the Treasury
cannot be expected to re-chart its
course every time wheat and corn rise
or fall a few cents a bushel and, pre­
sumably, its earlier brave determina­
tion to check inflation by pushing

money rates upward will not be en­
tirely abandoned. For the moment,
though, the will has weakened. Later
on in 1948 perhaps, a 114 per cent rate
on one-year paper will be announced
and maintained. The present compro­
mise is touted as saving the Treasury
money on interest payments, as in­
deed it does, but at a further distortion
of an already badly arranged total
national debt.
Caution has been urged on commer­
cial bankers by more than few heads
of the country’s leading large-city
banks. They have also had the bene­
fits of advice from experts outside
their own profession. In words that
are rather colorful for a school teach­
er, N. Y. U.’s professor of banking,
lately summed up his views in this
fashion:
“ To really keep the boom going, it
will be necessary for the following to
continue: 1. Bank credit to industry
to carry inventories and accounts re­
ceivable must continue to expand
despite the active opposition of the
Federal Reserve System and the bank
examiners. 2. Expansion of plant and
production facilities must be acceler­
ated despite higher capital costs. 3.
Individuals must spend more and save
less despite the coming intensification
of E bond and other savings drives.
4. Individuals must be willing (and
able) to go deeper into debt despite
the uncertain outlook. It seems too
much to expect all of these to eventu­
ate.
“ In conclusion, let me say the cur­
rent period of inflation has to be fol­
lowed by a recession. How serious it
will be, will depend on how soon it
comes. If we only could have gone
through with the readjustments which
started last April, it would have been
comparatively mild. If we can have
the readjustment soon, it should not
be too drastic or of very long duration.
Basically, the economy of the country
is sound; we only have to eliminate
the maladjustments. Until this shake­
out is completed—and it may be start­
ing now or it may not start for another
N o r th w estern B a n k e r, M a r c h , 79 48

36

Investments

six months to one year, no one can
be certain when—clearly credit policy
should be one of caution. Better lose
a little income than a lot of capital.”

CALL OR WRITE US
ABOUT ANY
GENERAL MARKET
SECURITIES
★

★

★

LYNN SWANEY & CO.
Roosevelt Hotel Building
206 First Avenue N. E.
CED A R RAPIDS. IO W A
Telephone 6647

Teletyp e C.R . 10

SERVICE
M a in ta in in g an in tim ate,
personalized correspondent
bank service.

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

PO LIC Y
T o cooperate with out-oftow n banks rather than
compete for business which
is rightfully theirs.

Strong Position
The Treasury, picking up more than
seven billions of excess cash in the
first 1948 quarter is in a strong posi­
tion. It can easily manipulate the
markets so as to force banks to sell
long-terms to the Federal Reserve, or
it can ease the general situation by re­
tiring debt held outside the Federal
Reserve Banks. The probability is
that it will adopt a middle course and
support the market for taxable Treas­
ury obligations. If so, the spreads be­
tween governments and corporates
should widen in direct proportion to
the quality of the corporates. This
would mean that banks can sell long
governments at fairly good prices in
order to meet demands for loans or to
restore reserves. But, by the same
token, there is no inducement for
banks to switch from governments in­
to corporates since the risk is greater
and yields still remain comparatively
uninviting. Short governments are
somewhat better yields than a year
ago, but even here the returns are
modest. As it happens, there is a
field into which banks may return,
after a long absence.
The municipal m a r k e t had a
thorough shake-down in late 1947 and
early 1948. It was painful and ex­
pensive for many underwriting houses
specializing in the field, but it was a
remarkably complete job. One of the
reasons is that municipal underwrit­
ing is a never-ended job. Dealers, if
they hope to stay in business, have
to be prepared to bid for new issues
every week. This entails cleaning out
old, stale inventories. The only way
to move sticky municipals is to slash

prices. It’s bitter medicine, but there
is no other, and it does work.
There will be large emissions of
prime tax exempt bonds by States and
municipalities in 1948. In many cases,
legislatures have approved bonus pay­
ments to veterans and the fiscal of­
ficers have no choice other than to go
to market and pay the going prices
for the money with which to carry out
the mandate of the voters. This means
that yields on exempts will be at­
tractive on almost any standard. No
longer can States and municipalities
sell bonds at high prices because of
the tax shelter included. Yields and
prices henceforth will be competitive
if banks (mildly interested) and insur­
ance companies (little interested) in
tax exemption are to be persuaded to
buy.

Municipal Yield Increases
As a matter of record, there has
been such a great increase in the
yield on municipal bonds since banks
were last active in that field that those
returning to it will find many oppor­
tunities to buy the best names in the
country at yields running to twice
what they were only two years ago.
Current yields from exempts match
those afforded by high grade corpo­
rates and, of course, are far greater
when a 38 per cent corporation tax is
taken into account. It may be that the
municipal bond market has over-done
its “ adjustment,” as some optimists
aver, but that is not important. Pru­
dent buyers of municipal bonds do
not enter upon commitments for the
purpose of gloating over paper profits,
although no one objects to a market

Public Utility
Industrial

B o n d s

S to c k s

H. M. Byllesby and Company
Incorporated

Rand Tow er, M inneapolis, M inn.
T elep h o n e Atlantic 4 2 7 1

Chicago

N o r t h w e s t e r n B a n k e r. M a r c h , 1948


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

•

N ew York

•

Philadelphia

•

Pittsburgh

investments
which rises subsequent to one’s pur­
chases.
More likely, pricewise, the munici­
pal market has about found its proper
level. Some moderate price conces­
sions will doubtless be made to assure
rapid placement of the larger prospec­
tive issues, followed by a mild recov­
ery during the quieter periods. At
the same time, there is little reason to
refrain from contemplated purchases
in the hope of anything like a sharp
break in prices.
The Federal Reserve System plays
a most important part in the general
bond market, and a particularly effec­
tive part in the governments bond
market, as everyone knows. Because
of this, and because of the clarity with
which he presented his ideas, certain
observations of Leroy M. Piser of The
First Boston Corporation are repro­
duced herewith:
“ I should like to suggest, however,
that those interested in the bond mar­
ket follow closely the course of com­
modity prices, bank loans and Federal
Reserve purchases of long-term bonds
for any clues as to current develop­
ments that they might give.
“ To summarize, I have tried to make
several points that I believe to be
worthy of consideration.
“ First, in studying the bond market,
it is necessary to take into considera­
tion not only the so-called natural
forces, but the policies of the Federal
Reserve and the Treasury as well.
“ Second, the natural forces are tend­
ing to lower bond prices.

“Third, this tendency is being offset
by Federal support.
“ Fourth, for all practical purposes
there is no limit to the amount of Fed­
eral support.
“Fifth, this support provides banks
with reserves and makes it possible
for them to expand their loan port­
folios.
“Sixth, various factors may help to
retard the expansion of loans.
“ Seventh, even if this does not hap­
pen, the consequences of a lowering of
support prices, or of a complete aban­
donment of support, might well be
more detrimental than a continuation
of present support prices.
“ Finally, even if your primary in­
terest is outside the Government mar­
ket, I believe that you will find that
developments in the Government mar­
ket will have a very important bear­
ing on your own problems and on the
action of the market in which you are
primarily interested.”—The End.

A ll-T im e H igh
Membership in the American Insti­
tute of Banking, educational section

37

of the American Bankers Association,
has reached an all-time high, it was
announced at the close of the threeday annual midwinter meeting of the
executive council of the institute.
Garnett A. Carter, president of the
institute and vice president of Fulton
National Bank, Atlanta, Georgia, who
presided over the sessions, stated that
on January 1st of this year member­
ship totaled 80,695, as compared with
72,566 on January 1st a year ago.
Enrollments in institute courses of
study, Mr. Carter said, number 35,342
for the first semester, as against 30,469 a year ago. In the year 1947, the
number of chapters increased from
215 to 239, and the number of study
groups from 102 to 139. Bank em­
ployes enrolled in correspondence
courses increased from 1,111 to 1,663.
The annual midwinter meeting is
held for the purpose of a midyear re­
view of institute affairs, consideration
of activities for the remaining insti­
tute year, and to make plans for the
annual convention, which will be held
this year in Buffalo, New York, June
7th to 11th.
The executive council of the insti-

MUNICIPAL BONDS
(Iowa and Illinois)
STATE
COUNTY
CITY

INVESTMENT
SECURITIES
1. G overnm ent bonds, all issues
2. M unicipal

and

co rp o ra te

SCHOOL

THE WHITE-PHILLIPS CO., INC.
First National Bldg.
Davenport, Iowa

First National Bank Bldg.
Chicago, Illinois

bonds

3. Listed and local stocks

T
U n d e r w r i t e r s — D i s t r ib u t o r s

Since 1922

D e a le r s

M U N I C I P A L
and
REVENUE BONDS

THE NATIONAL COMPANY
OF OMAHA
500 F irst N ational Bank Bldg.

For Banks and Trust Companies

BALLARD-HASSETT COMPANY
INVESTMENT SECURITIES

Members
C h icag o Sto ck Exchange


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Federal Reserve Bank of St. Louis

206 Central National Bank Building

Des Moines

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

38

Investments

tute is composed of twelve bankers,
one from each of twelve sections of

the country, plus the three elected
national officers.

MUNICIPAL BONDS
Specializing in Iowa
County, City, School and
Municipal Utility Revenue Issues
C a r l e t o t ^

D .B

e o

MOINES

C o .

BUILDING

1 )e s M o i n e s , I o w

a

TELEP H O N ES: 4-8156, 4-8157

John M. Beyer

Harold S. Miner, a vice president
of Manufacturers Trust Company, has
been placed in charge of the bank’s
office at Fifth Avenue and 43rd Street,
following the recent death of Elliott
Debevoise, a former vice president of
the Trust Company, it was announced
by Harvey D. Gibson, president.
Mr. Miner began with the bank as
an assistant secretary at the Fifth
Avenue Office in 1924 and since that
time has continued at that branch. He
was appointed a vice president in 1931.

H e a d A d v e r t is e r s

IN V E S T M E N T S E C U R IT IE S
DES

O fficia l C h a n g e

Cal L. RuefFel

Iowa and Illinois
MUNICIPAL BONDS

Earl S. MacNeill, trust officer of the
Continental Bank & Trust Company,
was elected president of the New York
Financial Advertisers, at the annual
meeting. He succeeds P. Raymond
Haulenbeek, executive vice president
of North River Savings Bank.
Daniel F. O’Meara, vice president of
Public National Bank & Trust Com­
pany, was elected first vice president,
and Louis W. Munro, of Doremus &
Company, was elected second vice
president.
Mrs. Isabelle B. Murray of the Hud­
son Advertising Company was elected
secretary of the group, and Robert J.
Stiehl of the American Bankers Asso­
ciation was re-elected treasurer.

P ro m o tio n s

BEVER-RUEFFEL & CO.
Investment Securities
Kahl Building

Davenport, Iowa

Till! PRINTED MESSAGE
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.
★

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“Better Printing Papers”
Minneapolis

St. Paul

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

Des Moines

Moline

Dubuque

Four important promotions in Bank
of America official ranks were an­
nounced by L. M. Giannini, president.
R. P. A. Everard is advanced to the
position of assistant to the president.
He began his career with the bank as
a bookkeeper, and has been vice presi­
dent and cashier of the institution
since 1941.
Mr. Everard is being succeeded as
vice president and cashier by P. C.
Read, who joined the bank’s inspection
department in a junior capacity and
has been chief inspector and auditor
since 1934.
H. A. Leif, heretofore assistant chief
inspector in charge of the bank’s in­
spection and auditing force in south­
ern California, is advanced to succeed
Mr. Read as chief inspector and audi­
tor. Mr. Leif started with the bank
as a bookkeeper at Humboldt branch
in San Francisco.
All will make their headquarters at
the San Francisco Head Office of the
institution.
C. H. Baumhefner, heretofore assist­
ant chief inspector in San Francisco,
advances to succeed Mr. Leif, with
headquarters in Los Angeles. Mr.
Baumhefner began his Bank of Amer­
ica career as a messenger.

Investments

39

11 h y
.1

Your
P rotected Murestor

O n ly 15 of th e 115 Billion in B onds
E lig ib le f o r B a n k s M a tu re B e y o n d 5 Y e a r s
By P. R. EASTERDAY
Chairman of the Board
The First National Bank of
Lincoln, Nebraska

P. R. E A S T E R D A Y

HIS short article will dwell on a
most important phase of commer­
cial bank-government bond rela­
tionship, which we do not think has
been fully emphasized, and is not gen­
erally appreciated.
The commercial banking system, in
its government bond holdings, has had
a special protection thrown around it
that is different from that of any other
class of investors, and this is a good
time to refresh our minds as to the
significance of this special protection.
A good many commercial bankers
have exhibited some concern about the
recent fluctuation in bond quotations,
and its possible effect on the banking
system.

T

Concern Unwarranted
In our judgment this concern is un­
warranted. The system as a whole
could not possibly get into an involved
situation by reason of its government
bond holdings, either from a liquidity
standpoint or the effect of possible in­
terest rate changes.
It is not possible for the system as
a whole to acquire enough of the socalled long bonds to have any material
adverse effect in any way.
A careful study of the facts should
be convincing.
The total amount of government se­
curities which are eligible for com­
mercial bank holdings is around 115
billion.
The special protection af­
forded commercial banks is by the
wise provision that only 15 billion of
the bonds eligible for banks mature
(callable dates) beyond five years from
today; and of this 15 billion, four bil­
lion are callable within seven years
and only five billion beyond ten years.
On this page, Chart I is a list of all
bonds eligible for commercial banks
with callable dates beyond five years.

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

Under no set of circumstances, there­
fore, could the commercial banking
system hold more than 15 billion of
obligations with callable dates after
five years from this date.

Recognizing the ability of the gov­
ernment to either pay or refund ma­
turing obligations, the commercial
banking system, therefore, could not
possibly, within the foreseeable future
at least, be adversely affected from a
liquidity standpoint by its large bond
holdings.
It is of course true that beginning
with May, 1952, certain longer term
bonds not now eligible for banks will
become eligible, but when that date
arrives, about four years from now,
the maturity of the present existing
15 billion longer term bonds will have
been shortened four years, and there
will be at that time only five billion
beyond a five year call date, as is
shown by Chart II on this page.
In four years, therefore, and before
additional eligibles are available, the
amount of existing bank eligibles call­
able after five years from such date
will be negligible. The use of callable
dates is justified due to the higher
coupons on these longer bonds and the
relatively short option periods. How-

Deposit Ratio
The commercial banks now hold
about 70 billion of government se­
curities (50 per cent of their total
deposits of around 140 billion), and
the significance of this is that, even
assuming that the system owned all
of these longer 15 billion bonds, it
would represent only about 20 per cent
of its present bond holdings, and only
about 10 per cent of the total deposits.
This would mean that commercial
bank holdings of governments would
consist of at least 55 billion of ma­
turities within five years from this
date, or an amount equal to about 40
per cent of total deposits. Add to this
the 24 per cent average cash revenue
held, and the result is that two-thirds
of all commercial bank deposits would
be off-set by cash plus governments
due or callable within five years.

Chart I
* 2s of 1953-55
* 2 Vas oí 1954-56
* 2%s oí 1955-60
2V is oí 1956-58
2 Vas oí 1956-59
* 23/4S of 1956-59
* 23/4S of 1958-63
* 23/4S of 1960-65
21/2s of 1967-72

$

725,000,000
681,000,000
2,611,000,000
1,449,000,000
3,823,000,000
982,000,000
919,000,000
1,485,000,000
2,716,000,000

callable

5 Vi
6 3A
7
8
8 V:
8 V.
10Vi
1 2 3A
19 V.2

2
2

yrs.
yrs.
yrs.
yrs.
yr s.
yrs.
yrs.
yrs.
yrs.

$15.391.000.000
Partially Tax Exempt.

2 3A s of 1958-63
2 3A s of 1960-65
2V2S of 1967-72

Chart II
$

919,000.000
1.485.000. 000
2.716.000. 000

callable

6 Vi yrs.
8 3A yr s.
15 V2 yrs.

$5,120,000,000
Partially Tax Exempt.

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

40

Investments

ever, the use of maturity dates would
have only slight effect on the main
point involved in this article.

Rate Change Doubtful
We think it doubtful if in the future
commercial banks will be able to ob­
tain higher interest rates on govern­
ment obligations than those now
existing based on present market quo­
tations, but should such an event occur
in the years ahead of us, certainly with
the preponderance of short maturities

U. S. Governments
Industrials

the system is in the most advantageous
position to obtain the benefit of any
such change in rates.
It should be mentioned that in the
past period commercial banks were
permitted to purchase a limited
amount of ineligible bonds, but the
total of such holdings in the system is
too insignificant to be taken into con­
sideration.
It must be obvious, therefore, that
the commercial banking system has

Municipals

Railroads

Canadians

Public Utilities

Equipment Trusts
Preferred Stocks

Bank Acceptances

Sa l o m o n B r o s . & H u t z l e r
M em bers N ew Y ork Stock Exchange

been given a definite protection that
should give bankers increased confi­
dence in the stability of the system.
With this assurance, therefore, of
the soundness of commercial banks as
a whole, in spite of their large gov­
ernment holdings, the individual bank­
er need only to concern himself with
a common-sense diversification of his
own maturities, properly considering
both liquidity and earning power.
We believe a careful study of the
figures presented in this article should
relieve any banker of any concern
which he may have had regarding the
commercial banking system as a
whole, in its relationship with govern­
ment bond ownership.—The End.

Lo an D ire c to r
William A. B. Iliff of Great Britain
has assumed his duties as loan director
of the International Bank for Recon­
struction and Development.
As loan director, Mr. Iliff is respon­
sible for the development and applica-

Sixty Wall Street
New York 5.N.Y.
T e le t y p e : N Y 1 -1 7 0 3 , 1 -1 7 0 4

Private wires to
B OSTON
75 Federal Street
Hubbard 2-1150

CHICAGO
231 So. La Salle Street
Central 9020
Teletype: CG 840

CLEVELAND
925 Euclid Avenue
Cherry 7800
Teletype: CV 298

N EW HAVEN
New Haven 7-2180

H ARTFORD
Hartford 5-2112

PHILADELPHIA
Market 7-4800

PRIESTER & CO.
Eighth Floor Davenport Bank Building
DAVENPORT, IOWA

L is te d and U nlisted S ecu rities
H. E. Jacobs

H. C. Priester
H. M. Sweet

QUALITY TAX EXEMPT BONDS
FOR BANK INVESTMENT

Inquiries Solicited

Allison-Williams Company
NORTHWESTERN BANK BUILDING
MINNEAPOLIS

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

ATLANTIC 3475

W I L L I A M A. B. I L I F F
N ow Loan D irector

tion of bank policies pertaining to
loans made or guaranteed by the bank.
This responsibility includes examining
and reporting on all loan applications
and negotiating loan agreements. It
also covers the maintaining of ade­
quate information concerning the eco­
nomic and financial condition of mem­
ber countries to enable the bank to
reach decisions on loan applications
and to follow developments in coun­
tries to which loans have been granted.
Mr. Iliff has recently returned from
the Middle East where he had acted
for several years as representative of
the United Kingdom Treasury. He had
formerly held appointments as finan­
cial counsellor at the British Embassy,
Tehran, Iran, and as financial advisor
to the Governor of Burma.

Investments

41

W hat Ms the Outlook
F or the Government Miond M arket?
T h e " O n e - W a y S t r e e t " in G o v e rn m e n t B onds No Lo n g e r
E x is ts , an d C o n s e r v a tiv e P o rtfo lio M a n a g e m e n t Is in O r d e r
By JOHN H. GRIER
Vice President, The First National Bank
of Chicago

IF I were to ask what specific ques­
tions you wanted to have answered,
I believe 99 per cent would reply
as follows:
1. Will long term Governments go
below par?
2. Will the certificate rate go higher
than 1V& per cent?
3. Shall I sell my long term Govern­
ments and buy shorter maturi­
ties?
To all of these inquiries I can only
give my individual opinion for what
it may be worth.
Regarding the query as to whether
Government securities will in the fore­
seeable future sell below par, we have
the assurances of those in responsible
positions that they will not. Person­
ally, I have little or no doubt as to
the ability of the Federal Reserve Sys­
tem to support the market at par or
at any price level at which they might
elect to hold it.
However, it is conceivable to me
that we might reach a state where it
would become debatable as to the wis­
dom of supporting the bond market.
Let us say that over a period of time
the upward spiral of commodity prices
continued unchecked and commercial
loans followed the trend, as they prob­
ably would, is it not possible that in
the best interests of the economy as
a whole, it might prove desirable to
withdraw support and permit interest
rates to seek their own level?
Please do not misunderstand me; I
am most emphatically making no such
dire prediction, and neither do I an­
ticipate any such unhappy state of
affairs, but the possibility of such a
condition is one which no one can
definitely rule out. It, therefore, be­
comes an eventuality which must be
considered in determining portfolio
policy. The unknown factor in such
a situation is the psychological reac­
tion of the holders of Savings Bonds,
which are outstanding in the amount
of some $51 billion, and which are de­
mand obligations of the Treasury. A
considerable proportion of these bonds
are Series “E” which are held largely

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

This prominent investment officer of one of the country's largest banks
gives his personal opinion on the following timely questions:
1. Will long term Governments go below par?
2. Will the certificate rate go higher than one and one-eighth (1Vs)?
3. Shall I sell my long term Governments and buy shorter maturities?
by those who are economically inex­
perienced and whose emotions are un­
predictable.
A debacle in the Government bond
market might have repercussions from
the holders of such bonds with con­
ceivable disastrous results to the
economy. In my own mind, I have
always questioned the desirability of
such heavy demand obligations of the
Treasury, and so expressed myself as
far back as 1942. The answer then
was that the bonds could not have
been successfully floated on any other
basis, which is probably correct. I
felt, personally, that we might have
had a special war tax of 10 per cent
of income, returnable in instalments
over a period of years following the
end of hostilities.
Such a method would have avoided
demand obligations and p o s s ib ly
helped to counteract any business re­
cession by providing purchasing pow­
er in postwar years. Under such a
plan we would not have been con­
fronted with present day fears of re­
action of Savings Bond holders in an
unpegged Government bond market.

Certificate Rate
The possibility of a further increase
in the certificate rate seems to me to
be dependent largely on the success
of the deflationary steps now being
taken. If they are effective, then, in
my opinion, certificates will go no
higher. If they are not, an additional
raise becomes a definite possibility,
although a further raise would compli­
cate the situation as it would unques­
tionably cause further weakness in
the intermediate and longer term is­
sues, and necessitate the Federal Re­
serve System’s taking further sub­
stantial amounts of long bonds to pro­
tect the 2 V2 per cent rate. I do not

look for any further increase in the
certificate rate in the next several
months, but it remains a future pos­
sibility.
Regarding the question of selling
long term Governments and buying
shorter maturities, my answer is that
if a bank’s portfolio is top-heavy in
the longer issues, then certainly con­
sideration should be given to lessen­
ing the degree of market hazard.
Banking has undergone quite a change
in the past several years, and many
institutions which formerly w e r e
somewhat in the category of invest­
ment trusts have now, with the sharp
upturn in loans, again returned to the
status of commercial banks. This con­
siderable increase in the loan portfolio
has naturally increased the proportion
of risk assets, and it seems to me that
under such conditions it would be
prudent to effect some reduction in
the degree of risk in the investment
portfolio.

Debt Reduction
During the next few months, if the
Treasury figures as reported in the
press and various services are correct,
we may anticipate a possible reduc­
tion of some six or seven billion dol­
lars in the national debt, and the
method pursued in this program will
undoubtedly have a pronounced effect
on the Government bond market. To
the extent which retired debt is owned
by the Federal Reserve System, re­
serves are decreased by 80 per cent of
such amount, obviously resulting in a
squeeze on the banking system. But
to the extent that retired debt is
owned by commercial banks or indi­
viduals, the net result is a moderate
easing of credit.
Therefore, the type of ownership of
the securities to be paid off will affect
N o r t h w e s t e r n B a n k e r, M a r c h , 1948

42

fnvesíroeíjfs

the Government bond market, and
should the current inflationary trend
continue, it would appear likely that
the debt retirement program would be
of a deflationary character. Counter­
acting this, we have continuing gold
imports which inflate the credit base,
but, if found desirable, this may be
offset at some later date by gold ster­
ilization or a raise in reserve require­
ments. Currently, the Federal Re­
serve Board has authority to raise
such reserve requirements in the two
Central Reserve Cities—New York and
Chicago—from 20 per cent to 26 per
cent. If bank loans continue to ex­
pand and if gold continues to flow in,
I look for the Board to exercise its
existing authority, but if they do so,
it probably would be effective 2 per
cent at a time in order to avoid too
much of a shock to the market, and
too much pressure on the banks at
one time.

Refunding Program
Still another matter of serious im­
portance is the Treasury’s refunding
program, as in addition to the weekly
maturities of bills and the almost
monthly maturities of certificates,
there are maturing or becoming op­
tional in the next five calendar years
$64,203,000,000, most of which issues
bear coupons sufficiently high to make
it almost a foregone conclusion that
the issues becoming optional will be

SPECIALIZING

refunded, as well as those definitely
maturing.
This matter of refunding is one
meriting careful consideration. I be­
lieve we are all agreed upon the de­
sirability of transferring as great a
proportion as possible of the national
debt from the banking system to
private ownership, but the means of so
doing and still maintaining the cur­
rent pattern of rates constitute a diffi­
cult problem. Certainly, the manage­
ment of a debt as huge as ours is a
challenge to the ability of the most
able financiers, and will have a pro­
found effect upon our future financial
well-being.
In conclusion, therefore, it is my
belief that the key to Government
bond prices and interest rates is pri­
marily to be found in the trend of
commodity prices and commercial
bank loans. Granted a leveling off of
both within a period of, say, the next
few months, I am inclined to question
any appreciable decline from the pres­
ent level of supported prices, and such
leveling off in commodities and loans
would probably mean that the current
certificate rate of 1% per cent would
go no higher, and from a technical
standpoint, it would appear that Gov­
ernments up to a five-year maturity
have possibly adjusted themselves to
such a rate.
There are, however, so many uncer­
tainties in the outlook, as I have en­

. . .

deavored to illustrate, and until the
full effect of any additional anti-infla­
tionary steps which may be taken are
felt, I am definitely inclined to counsel
caution maturity-wise. With economic
conditions in their present uncertain
state, and unpredictable as the future
is, it is apparent that the “ one-way
street” in the Government bond mar­
ket, which prevailed for so long, no
longer exists, and certainly portfolio
management now, possibly more so
than any time in the past few years,
should be based on sound conservative
banking practice and not on any fal­
lacious dependence upon a so-called
“pegged” market.—The End.

C e le b r a t e s 40th B irth d a y
The fortieth anniversary of the
founding of The Public National Bank
and Trust Company of New York was
celebrated last month at a luncheon
and dance in the grand ballroom of
the Waldorf-Astoria Hotel.
A large birthday cake containing
forty candles was cut by E. Chester
Gersten, president of the bank, who
thanked the more than one thousand
members of the staff for their contri­
bution to the bank’s noteworthy prog­
ress.

R e g io n a l C o n fe re n c e
Joseph M. Dodge, W. Randolph
Burgess, and Dr. Marcus Nadler are
among the twelve nationally known
authorities in the fields of finance,
building, economics, and education
who will address the Eastern Regional
Savings and Mortgage Conference of
the savings division of the American

in High-Grade
T iflu n k ip o L

(B o n d iu

Specializing in
H IG H G R A D E

SPARKS & CO.
528 Liberty Building

Telephone 3-5154
DES MOINES, IO W A

MUNICIPAL BONDS

MUNICIPAL
BONDS
Inquiries Invited

CORPORATION BONDS and STOCKS

JOHN DOUGLAS & COMPANY, INC.
O m a h a , N e b ra s k a

530 insurance Building

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

Becker &Cownie, Inc.
823-24 Insurance Exchange Bldg.
DES MOINES 9, IOWA

Phone: Webster 2281

Phone 3-5189

Investments

43

N ew O fficers o / h u ra in v e stm e n t H a n kers

and J. H. Ruhl, vice president Quail and Company, Davenport,
second vice president.
Among the 75 in attendance at this excellent meeting were
three men from the Securities department of the State of Iowa.
Pictured at right above, they are: Joe Glennon, the Honorable
Sterling Alexander, securities commissioner, and Sam Orebaugh,
counsel for the securities commission.

NEW OFFICERS of the Iowa Investment Bankers elected
at the annual business meeting recently in Cedar Rapids are
pictured at left above. Reading from left to right they are:
Sherman W. Fowler, assistant vice president Iowa-Des Moines
National Bank, re-elected secretary-treasurer; Harry, Graefe,
Graefe and Company, Des Moines, president; Thomas L. Crabbe,
Thomas L. Crabbe Company, Cedar Rapids, first vice president,

Bankers Association at the Hotel
Pennsylvania in New York on Mon­
day and Tuesday, March 15th and 16th.
Bankers of nine states will attend
the two-day meeting, coming from
Maine, New Hampshire, Vermont,
Massachusetts, Rhode Island, Connect­
icut, New York, New Jersey and Penn­
sylvania.
The conference will include address­
es covering bank operations, new con­
struction and construction loans, mort­
gage lending and servicing, mortgage
reserves, investments, and economics.

A letter has been addressed to the
presidents of all county bankers fed­
erations in Illinois, giving them full
information on the anti-inflation pro­
gram of the American Bankers Asso­
ciation.
The county federation presidents
are requested to call a meeting of their
federations as soon as possible to dis­
cuss all phases of the program. In

these meetings throughout the state
emphasis will be placed on the proper
use of credit and bankers will be urged
to discourage all types of loans of a
speculative nature that might add to
the forces of inflation by creating
competition for raw materials. Loans
that will aid the production and proc­
essing of necessary goods are to be
definitely encouraged.

IN V E S T M E N T

CO U N SEL

Individuals, Institutions, Trust Accounts and Estates

In flatio n F i$ h t
The fight against inflation is being
carried to the grass roots by the Illi­
nois Bankers Association, according to
Secretary Harry C. Hausman.

R IC H A R D

R.

R O L L IN S ,

In c .

Representing
S H E R ID A N - F A R W E L L

&

M O R R IS O N ,

In c .

INVESTMENT COUNSELLORS
EIGHT - SOUTH M ICH IG A N AVENUE
C h ic a g o

Diebold
I

N

C

O

R

P

O

R

A

T

E

3

D e s M o i n e s O ff ic e
405

B ankers T ru st

B u ild in g

D

N o w in clu d es
Y o r k V a u lts —M c C l in t o c k A la r m s
C a n ton 2, O h io
★
BANK

VAULT

BURGLAR
CHESTS

EQUIPMENT

ALARMS

AND

MUNICIPAL BONDS
CORPORATION BONDS and STOCKS

• SAFES,

We shall be glad to furnish statistical
reports on request

VAULT DOORS

M IC R O F IL M • R O T A R Y , V E R T IC A L
A N D V IS IB L E F IL IN G E Q U IP M E N T
★
N a t i o n - w i d e S e r v ic e
b y Facto ry T ra in ed E xp e rts

F a c t o r y B r a n c h e s in
C H IC A G O , DES M OINES
and ST. PAUL


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Federal Reserve Bank of St. Louis

KALMAN & COMPANY
Endicott Building
ST. PAUL
Garfield 3305

McKnight Building
MINNEAPOLIS
Atlantic 5313

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

44

Investments

Financial Statement
of

EMPLOYERS MUTUAL
CASUALTY COMPANY
Ile s Moines
as of December 31, 1947
ASSETS

DIRECTORS
J. W . G U N N
Chairman of the Board
and Treasurer,
Des Moines, Iowa
JO H N P. H Y N E S
President,
Des Moines, Iowa
DR. D. E. B A U G H M A N
Fort Dodge, Iowa
W . H. B R E N T O N
Pres., Brenton Bros.,
Des Moines, Iowa
H . L. H JE R M ST A D
Pres., Citizens Fund
Fire Insurance Co.,
Red W in g , Minn.

United States Government Bonds*....$ 7,910,705.41
Other State and Municipal Bonds*.. 1,797,462.88
No bonds awned by the company have
ever been in default either as to in­
terest or principal.

Real Estate— Home Office Building
Cash in Banks......................................
Real Estate Mortgages— F.H .A.... .
Stocks and Federal Savings
Certificates .....................
Premiums Receivable—-not past due
Current balances due from
policyholders.

F R A N K KOHRS
Pres., Kohrs Packing Co.,
Davenport, Iowa
CARL M U ELH AU PT
Secy., Central Service Co.,
Des Moines, Iowa
A M O S C. P E A R S A L L
General Manager
Pittsburgh-Des Moines
Steel Company,
Des Moines, Iowa
W . Z. PR O CTOR
Attorney at Law,
Des M oines, Iowa
R. W . W E IT Z
Contractor
Des Moines, Iowa
M. J. W IL K IN S O N
Vice-President and
Supt. of A gents,
Des Moines, Iowa
DR. R . W . W O O D
Physician and Surgeon
N ew ton, Iowa

A

64,070.00
1,506,526.02

agents and

Interest Accrued ................................

W . J. H Y N E S
Secretary,
Des Moines, Iowa
D R. L. E. K E L L E Y
Physician and Surgeon,
Des Moines, Iowa

160,355.10
1,679,915.86
109,366.40

38,422.77

Total Admitted Assets.............. $13,266,824.44
R E S E R V E S

Reserve for Claims.............................$ 5,660,256.68
Funds set aside to fully pay all incurred
and expected losses.

Reserve fo r Unearned Premiums......

4,407,781.00

Funds set aside to return to every policy­
holder the unearned premium in event
of cancellation.

Reserve fo r Taxes— State and
Federal .............
All Other Reserves.............. ...............

389,481.31
666,392.77

Included in this Reserve is a sufficient
amount to pay dividends on all parti­
cipating policies.

Total ........

2,142,912.68
$13,266,824.44

*Am ortized Values.

NATIONAL

INSTITUTION

H om e Office — Des Moines
B R A N C H

P h ila d e lp h ia , P a .
C h a r lo t te , N . C .
L a n s in g , M ic h .
M ilw a u k e e , W i s .
C h ic a g o , 111.

Automobile, Plate Glass
Workmen s Compensation

N o r t h w e s t e r n B a n ke r, M a r c h , 1948


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

O F F I C E S

J a ck son , M is s .
S t . L o u is , M o .
M in n e a p o lis , M in n .
K a n s a s C it y , M o .
O m aha, N eb.

#

W ic h ita ,

L e a v e s F irs t W isc o n sin
Richard J. Lawless, an assistant vice
president of the First Wisconsin Na­
tional Bank of Milwaukee, has been
elected executive vice president and
a director of the Wood County Na­
tional Bank, Wisconsin Rapids, Wis­
consin.
Mr. Lawless leaves the First Wis­
consin to assume his new duties at
the Wood County National Bank on
March 1st.
Mr. Lawless has been an official of
the First Wisconsin’s banks and bank­
ers division, serving correspondent
banks, since 1929. Through these con­
tacts he has become one of the best
known bankers in the state and the
middle west. He is popularly known
as “Dick,” not only to his First Wis­
consin associates, but to hundreds of
bankers throughout Wisconsin.

E le c te d P re s id e n t

Total Reserves .....
$11,123,911.76
Surplus for Con­
tingencies ................$ 300,000.00
Surplus Over All
Reserves .... ............. 1,842,912.68
Total Surplus toPolicyholders..

Mr. Hausman emphasized that the
Illinois Bankers Association is in full
accord with the program of the Amer­
ican Bankers Association for the vol­
untary self policing of credit by indi­
vidual banks. This program, if prop­
erly carried out, will show that the
proposed controls by government are
unnecessary, undesirable and detri­
mental to the proper financing of the
national economy.
Emphasis will be given, in the coun­
ty federation meetings, to the neces­
sity of bankers acquainting the people
in their communities with details of
the plan through their bank advertis­
ing and the cooperation of local news­
paper editors.

K an s.

D a lla s , T e x .
D e n v e r , C o lo .
S e a t t le , W a s h .

Public Liability Insurance,
Fidelity and Surety Bonds

B. C. Gardner, Montreal, Canada,
executive vice president, the Bank of
Montreal, has been elected president
and chief executive officer of the bank,
to succeed the late George W. Spinney,
C. M. G.
Mr. Gardner, a native of Bristol,
England, began his banking career in
Canada with the former Bank of Brit­
ish North America, which merged with
the Bank of Montreal in 1918. He held
important positions in branches in
various parts of Canada from British
Columbia to the Maritimes and was,
for a period, manager for the bank in
St. John’s, Newfoundland, prior to his
transfer to the head office in Montreal,
as superintendent of foreign branches.
In 1932 he came to New York as sec­
ond agent and later took charge of
this important office. In 1935 Mr.
Gardner returned to Montreal as an
assistant general manager and became
general manager in 1942 and executive
vice president last December.

45

INSURANCE

W hat the Credit M anager
Should
Knotv Abou
insurance Coverage
M a n y B u sin e sse s A re F in a n c ia lly S tro n g , but O n e or
M o re of the M a n y P ro p e rty H a z a rd s C an O c c u r to
R e d u ce T h e ir A s s e t s in a F e w H o u rs
By IVAN H. ANTON
Des Moines
SURVEY by the National As­
sociation of Credit Men indi­
cates that over one-half of the
country’s manufacturing, jobbing, and
wholesaling credit loss is caused by
inadequate insurance. The same sur­
vey further disclosed that only 24 per
cent of the manufacturers and 38 per
cent of the wholesalers make it a regu­
lar habit to inquire or suggest that
those with whom they are doing a
credit business protect themselves by
adequate insurance, as a means of
stabilizing their credit position.
In almost every other line of credit
extension, insurance is taken into con­
sideration. Building and loan associa­
tions require insurance on the prop­
erties on which they make loans. Auto
finance companies insist on fire, theft
and collision on cars on which they
advance funds. Bankers require prop­
er protection of the assets which are
the basis for their granting credit, and
even personal loan companies often
require term life insurance or limited
disability insurance on the individuals
to whom they loan money.
Does it not then appear in order for
a wholesale credit man to consider the
insurance of those to whom he grants
substantial lines of credit?
What are the requirements of an
adequate insurance program on the
part of a debtor?
An adequate insurance program,
from a credit standpoint, is one that

A

Did you know

considers every possibility of a loss
that may be catastrophic in its nature,
regardless of the frequency of its hap­
pening; or, in other words, the pos­
sible severity of the shock from an
occurrence should determine whether
the hazard should be covered. The
loss may never happen, but if its hap­
pening would seriously affect the
financial equilibrium of a business, it
should be insured.
Fire is, of course, the number one
leveler of physical property! Fire loss­
es for 1947 are estimated to exceed
$650,000,000—more than a 24 per cent
increase over 1946, and more than dou­
ble any year during the period 1933 to
1942!
It can safely be said that every stock
of merchandise and every building
should be properly insured. It has
been demonstrated that the most mod­
ern buildings provide at best doubtful
protection against conflagrations; fire
in even so-called fireproof buildings
are not uncommon, and serious losses
are frequently suffered.
An insurance survey just completed
by our office for a new account necessi­
tated that the insurance be increased
from $1,100,000 to $1,900,000 on one
property, and from $500,000 to $900,000 on another. In both cases, up to
the time the facts were brought to
the attention of the property owners,
they felt they were adequately insured.
Unless the owner has materially in-

t h e r e ’ s a g a p in y o u r C a s h L e t t e r

p r o te c tio n t h a t y o u co u ld “ d r iv e a tr u c k t h r o u g h ? ”
A s k u s h o w to b r id g e i t w it h o u t c o s tin g y o u a

Scarborough & Company

c e n t.
F IR S T

creased building and contents values
within the last twenty-four months,
chances are that he is materially un­
derinsured.
Some firms today are still carrying
outmoded windstorm insurance .in­
stead of extended coverage which in­
cludes, in addition to wind, the vitally
important inside and outside explosion
coverage.
A jewelry store in South Bend, Indi­
ana, was almost entirely destroyed by
an explosion which originated in an
adjoining restaurant. The loss totaled
$28,000 and was uninsured because the
firm still carried fire and windstorm
insurance instead of fire and extended
coverage. The firm only survived be­
cause of long term extensions of credit
by the houses from which it purchased
its merchandise; or, we might say, on
capital which wholesalers were forced
to lend to this retailer.
Business interruption insurance, or
U. & O. as it was formerly called,
would have taken care of the loss of
net profits and the continuing ex­
penses referred to in the loss just men­
tioned.
Just how important is business in­
terruption insurance?
Let us assume that suitable vacant
space for the credit customer was not
hard to find if he burned out. Let us
assume that he could rapidly rebuild,
and that new machinery, equipment,
and inventory was readily available.

Insurance Counselors
N A T IO N A L , B A N K


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

B U IL D IN G

»

C H IC A G O

3, IL L IN O IS

STATE

to Banks

4325

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

46

Insurance

Even if those conditions were true,
and they are not true today, business
interruption insurance might still be
more important to him than the insur­
ance on his physical property. Numer­
ous fires have resulted in a greater loss
under business interruption policies
than under the property damage poli­
cies. In the LaSalle Hotel fire the
property damage loss was $700,000—
the business interruption loss was $1,177,000.
It is even conceivable to me that if
a firm burned, lacking proper insur­
ance or even without insurance on
physical assets, but with adequate
business interruption insurance, they

might be in a better position to resume
operations than one that carried only
property damage coverage on their
buildings and contents.
Surely an investigation of the credit
customer’s insurance would prompt an
inquiry as to whether he carries pub­
lic liability—both general liability and
automobile. The important question,
however, is, “What limits of liability
does he carry?” Inadequate limits are
not much better than no insurance.
This question may arise “ How do
I know what liability exposures exist
in a customer’s business, and may he
not have overlooked insuring some of
them?” The only real way you can

FINANCIALSTATEMENT
DECEM BER 31, 1947
ASSETS
C A SH O N H A N D A N D IN B A N K S ........................... $ 5,300,962.92
BONDS:
U. S. Government............................................ 60,052,854.49
Other B onds.......................................................
5,992,469.48
C A SH A N D B O N D S .......................................................................................... $ 71,346,286.89
71,054,025.87
M O R T G A G E L O A N S O N R E A L E S T A T E ...........................................
H O M E O F F IC E B U I L D I N G ........................................................................
770,000.00
O T H E R R E A L E S T A T E .................................................................................
223,785.76
R E A L E S T A T E SA LE S C O N T R A C T S ...................................................
52,937.98
S T O C K S ....................................................................................................................
892,572.00
IN T E R E S T A N D R E N T S O N I N V E S T M E N T S A C C R U E D
B U T N O T Y E T D U E ...................................................................................
703,534.23
I N T E R E S T A N D R E N T S D U E O N IN V E S T M E N T
(None of which is past due more than 90 days).................................
112,890.30
O T H E R A S SE T S, P R IN C IP A L L Y N E T P R E M IU M S IN
C O U R S E O F C O L L E C T IO N ...................................................................
2,374,475.45
L O A N S TO P O L IC Y H O L D E R S ..................................................................
14,488,175.37
(1) T O T A L A S S E T S ........................................................................................ $162,018,683.85

LIABILITIES
P O L IC Y R E S E R V E S ..........................................................................................$143,702,741.56
M A S S H A Z A R D R E S E R V E F O R G R O U P I N S U R A N C E ............................................. 1,424,590.00
P R E M IU M S A N D IN T E R E S T P A ID I N A D V A N C E ...................
1,039,947.28
R E S E R V E FO R T A X E S ..................................................................................
1,074,226.88
E S C R O W F U N D S (Deposited by mortgagors for
payment of taxes and expenses).................................................................
292,898.79
R E S E R V E F O R A C C O U N T S N O T Y E T D U E ...................................
565,’625!70
P O L IC Y H O L D E R S ’ D I V I D E N D S ............................................................
2,127j288.53
T O T A L ..............................................................................................................$150,227,318.74
P O R T IO N OF C U R R E N T Y E A R ’S E A R N IN G S A V A IL A B L E
FO R F U T U R E D I V I D E N D D E C L A R A T IO N TO P A R T I C I ­
P A T IN G P O L IC Y H O L D E R S ...................................................................
572,553.00
C O N T IN G E N C Y R ESE R VE U N D E R PU R CH ASE A G R E E ­
M E N T I N C L U D IN G R E S E R V E FO R R E V A L U A T IO N OF
R E IN S U R E D P O L IC IE S ...........................................................................
7,544,625.80
R E S E R V E F O R R E V A L U A T IO N OF O T H E R P O L IC IE S _____________________ 500,000.00
O T H E R C O N T I N G E N C Y R E S E R V E .....................................................
1,174,186.31
S U R P L U S ................................................................................................................
2,000,000,00
T O T A L L I A B I L IT I E S ............................................................................ $162,018,683.85
(1) Includes assets in “ Old Company Account” established under Purchase
Agreement dated September 7, 1933, on file with the Superintendent of the In­
surance Department of the State of Missouri.

General A merican L ife I nsurance Company
WALTER V^HEAD^PB ESIOENT
S a i n t L ouis

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

have assurance that all of his liability
exposures are covered is if he has his
insurance written under a compre­
hensive liability form, both as to gen­
eral liability and as to automobile.
There recently appeared an article
to the effect that fidelity losses within
the United States are estimated to run
$500,000,000 a year. That fact may
have even greater significance if you
recall a previous comment to the effect
that fire losses at their all time high
are estimated to run $650,000,000 this
year.
That fidelity losses could begin to
approach the volume of fire losses was
at first hard for me to visualize but,
within the last few weeks in news­
paper articles and in insurance pub­
lications, I have run across reports of
losses which do indicate the size that
fidelity claims can assume.
The fact that a blanket bond may be
carried by the credit customer does
not necessarily mean, however, that
his fidelity coverage is adequate. It
would also be in order to inquire as
to the amount of the bond and whether
or not there is excess coverage on
key employees.
I can only briefly mention the other
important forms of coverage that
should appear in a debtor’s insurance
program. You should expect work­
men’s compensation insurance. In
Iowa a death claim on an employee
having dependents will exceed $6,000.
In Nebraska it can run as high as
$7,000, and in South Dakota $7,500,
and there is always the possibility
that an explosion or other catastrophe
may involve a number of employes.
If there is considerable money or
securities subject to loss in a business,
adequate burglary, hold-up, and for­
gery insurance should be carried.
Boiler insurance also deserves the
credit man’s attention as a boiler ex­
plosion may not only severely dam­
age and destroy property of the
insured but make him heavily liable
for damage to property of others.
One other form of coverage I want
to mention, due to the fact that such
uninsured loss may be of serious pro­
portions; I refer to accounts receivable
insurance.
Accounts receivable coverage in­
sures the loss caused by the inability
of the insured to collect his receivables
due to the destruction of his records
by fire, theft, explosion, or other haz­
ards. It is possible that the destruc­
tion of a firm’s records might so impair
its condition as to affect its balances.
The thought occurs to me that some
credit men may feel somewhat incom­
petent in tackling the problem of re­
viewing the insurance of their custom­
ers for, after all, insurance is a rather

Insurance
complex business, even requiring con­
stant study and alertness on the part
of an insurance man.
We, who are in the general insur­
ance business, have a full-time job
merely to keep up with the field. A
credit executive with many other du­
ties besides supervising insurance can­
not be expected to do so, but he can
look to us in the insurance business
to keep him informed and to assist and
educate him in properly underwriting
his accounts from an insurance stand­
point. This is a service that we must
perform if the credit man is to secure
the information he desires and if we,
as agents, are to continue to secure the
premium dollars business pays for pro­
tection.—The End.

N e e d s M o re C o p p e r
The United States is no longer selfsufficient in copper in periods of high
industrial activity, according to an
article in Business Comment, the bul­
letin of The Northern Trust Company.
Prior to 1940, domestic copper output
was sufficient not only for our own
needs, but exports of the red metal
regularly exceeded imports, the article
pointed out.
Imports soared during the war years,
however, reaching a peak of 847,000
tons in 1945. the article continued.

This wartime dependence on foreign
sources of supply has persisted for the
past two years, with imports exceeding
exports by 314,000 tons in 1946 and
by about 205,000 tons last year.
Refined copper shipments to domes­
tic consumers last year totaled 1,384,000 tons, an increase of 10 per cent
over 1946 and approximately double
the 1935-39 annual average, the bank
stated. This figure is only 16 per cent
below the 1943 wartime peak. Deliv­
eries of new refined copper, of course,
do not fully reflect aggregate supplies
for domestic consumption and export
shipments.

47

Available supplies in 1947 probably
totaled 1.8 million tons, consisting of
copper output from domestic ores of
860,000 tons, estimated imports of 400,000 tons, a net reduction in govern­
ment and private stocks of 120,000
tons, and use of old scrap amounting
to 440,000 tons, the bank reported. Ex­
ports of refined copper and copper
manufacturers were about 205,000 tons
last year, which leaves domestic con­
sumption at approximately 1.6 million
tons, compared with 1.5 million tons
in 1946.
Two significant developments in the
domestic copper industry last year

Another Year of Growth Shows
GA IN S IN A SSETS

G A IN S IN R ESERV ES

GAINS IN SURPLUS FUNDS
G A IN S IN P R E M IU M IN C O M E

GAINS IN INSURANCE IN FORCE

Financial Statement— January 1, 1948
ASSETS

Fllim VEAliS
ill P rogress
We are proud of our record

Cash and Bonds....................................................................................... $3,052,180.58
First Mortgage Loans on Real Estate............................................

3,287,919.37

Home Office Building and Other Real Estate.............................
Stocks ........................................................................................................

198,480.09
607,065.54

Loans to Policyholders and Other Secured Loans....................

241,111.12

Interest and Rents

Dueand Accrued.............................................

36,586.24

Net Premiums in Course of Collection...........................................

93,818.83

Total A s s e t s ..................................................................................... $7,517,161.77

in the Insurance field and of

LIABILITIES

our Banker Representatives.

Policy Reservts ....................................................................................... $5,544,294.35

We write a complete line of

Premiums Paid in Advance................................................................

156,401.04
508,170.15

Other Reserves and Liabilities..........................................................

238,683.60

Reserves for PolicyholdersDividends.............................................

Fire - Windstorm - Automo­
bile & Plate Glass Insurance

Total Liabilities

...........................................................................$6,447,549.14

'Surplus to Policyholders..................................................................

1,069,612.63

B a la n c e ............................................................................................. $7,517,161.77
'In clu d es Capital Stock of $204,398.67.

WESTERN 1 I I T I 1 I.
FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

<eMutual Insurance Is Am erican
Insurance99


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

POLICVHOLDER'S IMTIOIIRL LIFE
INSURANCE

COMPANY

S IO U X F A L L S , S O U T H D A K O T A

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

48

Insurance

were the firming of refined copper
prices at 21% cents per pound, the
highest average annual level since
1918, and a two-year suspension of
the four cents per pound tariff.

C a lifo rn ia Bank
Arthur T. Brett, vice president, Cali­
fornia Bank, has been appointed a
member of the budget committee of
Los Angeles’ Welfare Federation. The
Federation operates the city’s Com-

munity Chest and the Welfare Council.
For the seventh consecutive year,
Harry E. Hudson, vice president in
charge of California Bank’s Santa Mon­
ica office, was recently elected treas­
urer of the Santa Monica-Ocean Park
Chamber of Commerce. Mr. Hudson
was also re-elected to the Chamber’s
board of directors and appointed to
the executive committee.
Frank L. King, president of the Cali­
fornia Bank, and W. Wayne Glover,
vice president, attended a meeting of
the California Bankers Association
committee for the revision of the State
Banking Act in San Francisco.
Frank H. Schmidt, executive vice
president, California Trust Company,
attended the mid-winter Trust Con­
ference of the American Bankers Asso­
ciation in New York.

E le c t J a c k s o n P re sid e n t

Longer life for people
past 40
About one in every ten Americans
now living will at some time have an
ulcer. In most cases the ulcer will be of
the duodenal type, illustrated above;
the gastric ulcer is less common.
An ulcer usually results from exces­
sive flow of the stomach’s acid-contain­
ing digestive juices. It is now recog­
nized that nervous tension, worry, and
emotional strain, even more than food
and drink, stimulate the flow of these
juices. Therefore, effective treatment
of an ulcer often calls for teamwork by
physician, psychiatrist, and surgeon.
The physician, by determining that
the ulcer is of the duodenal type, can
reassure those who fear cancer, for the
duodenal ulcer is rarely, if ever, cancer­
ous. The psychiatrist, by learning the
source of mental stress, may remove the
basic cause of the ailment. And the sur­
geon, if need be, can now safely clear up
even the most critical and far-advanced
ulcer cases through application of re­
markable new techniques.
Ulcer, heart trouble, kidney diseases,
diabetes, anemia and many others are
being mastered through application of
“ miracle drugs” and new surgical tech­
niques. As a result, the 40-year old man
or woman today can, on the average,
count on at least 30 more years of pleas­
ure and accomplishment.
Full enjoyment of these years calls
for financial solvency, best attained
through a sound program of savings
and life insurance. Your N^N L agent,
paid not primarily for how much insur­
ance he sells you but for what you keep
in fo rce, has a strong interest in provid­
ing you with just the kind and amount
of life insurance you need and can afford.

In a series of executive promotions
announced by the St. Paul Fire &
Marine group following the annual
meetings, Charles F. Codere, president
of the three companies for the past 10
years, becomes chairman and senior
vice president of each company.
A. B. Jackson, who has been vice
president of the three companies, was
elected president of the St. Paul Fire
& Marine and of the Mercury Insur­
ance Company. M. D. Price was made
president of the Saint Paul-Mercury
Indemnity Company. He also has
been a vice president of the three com­
panies.
Three new offices were created in
each company: P. A. Codere was made
resident vice president, Canadian de­
partment; G. W. Coward, resident vice

MINNEAPOLIS 4
R.G.STAGC-PRESIDENT

^

CU ARNOLD-CHAIRMAN

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

The First National Bank in St. Louis
has announced the following promo­
tions in its official staff:
Ray J. Miller, from assistant vice
president and personnel director, to
vice president and personnel director.
He was elected an assistant cashier in
1938, an assistant vice president in
1945 and personnel director in 1946.
He has been with the bank for 35
years.

FARM LIABILITY INSURANCE
for Y ou r Farm er Clients
Allied Mutual pioneered this worry-free protection which
defends the farm owner in case cattle get into neighbor's
corn, loose horse injures motorist on highway, hired man
is hurt by tractor—or any one of a hundred other common
farm hazards, Up to $250 medical, surgical, hospital pay­
ments for hired men or hired girls regardless of respon­
sibility. Essential protection. Easy to interest farmer.
Investigate for your agency. Write

ALLIED MUTUAL
CASUALTY COMPANY
Harold S. Evans,

COM PANY
MINNESOTA

P ro m o tio n s

L ow Cost. N o n -A sse ssa b le

NorthwesternT V otionol Life
INSURANCE ^

president, Eastern department, and
Paul F. McKown, resident vice presi­
dent, Pacific department.
Other changes announced were: R.
M. Hubbs was made assistant to the
president of all three companies; R. B.
Shepard, Jr., was made assistant sec­
retary of the St. Paul Fire & Marine
and Mercury, and E. B. Barry was
elected resident secretary, Pacific de­
partment, of those two companies. W.
E. King becomes assistant secretary
of the Saint Paul-Mercury Indemnity
Company.
C.
F. Codere, the new chairman,
joined the St. Paul in 1908 and planted
the company in Canada. He came to
the home office in 1920, was made vice
president in 1925 and president in 1938.
Mr. Jackson was born in St. Paul
January 15, 1899, and joined the home
office staff immediately after his grad­
uation from Princeton in 1922. He
was elected assistant vice president of
the St. Paul Fire & Marine in 1937
and assistant to the president in 1938.
He was elected vice president of the
St. Paul and of the Mercury in 1943
and of the Saint Paul-Mercury In­
demnity Company in 1946.

Hubbell

Building

Presid en t
Des Moines 7, Iowa

Insurance
Leonard J. Schrewe, from assistant
cashier to assistant vice president. He
is a territorial officer and represents
the bank in Missouri, as assistant to
Frank C. Hunt, vice president. He
has been with the bank for 22 years.
Harry L. Smith, from assistant cash­
ier to assistant vice president. He is
a territorial officer and represents the
bank in Texas, as assistant to W. C.
Collins, vice president. He has been
with the bank for 24 years.

This sampling of the much-discussed
papers was donated to the society by
The First National Bank of Chicago,
which was chartered during Lincoln’s
administration; in fact, the first guns
of Gettysburg were fired on the very
day The First National opened its
doors. This exhibit offers the first
opportunity for Chicagoans to examine
the papers recently opened in Wash­
ington, D. C., after years of nationwide
interest and speculation.

B e co m e s C a s h ie r A ls o

Bank W o m e n 's C o n v e n tio n

Albert J. Egger, for the past 14
years a vice president of the Chase
National Bank, has been appointed

The national convention of the Asso­
ciation of Bank Women will be held

49

at the Hotel Fort Shelby, Detroit,
Michigan, September 24th to 26th, it is
announced by Miss Willa A. Riley,
president of the association. Their
convention, as usual, immediately pre­
cedes the convention of the American
Bankers Association.

Q u a r t e r ly D iv id e n d
The board of directors of the Chemi­
cal Bank & Trust Company has de­
clared the regular quarterly dividend
of 45 cents per share on the capital
stock of the bank, payable April 1st
to stockholders of record March 15th.

55th Annual Statement of

Ic O U fU A t

A M E R IC A 'S

SlxduMOSL

D W ELLIN G

IN SU RA N CE

COMPANY

Decem ber 31, 1947

ADMITTED

A L B E R T J. E G G E R
V ic e President and Cashier

vice president and cashier of the bank
by the board of directors.
Mr. Egger, senior personnel officer
of the bank, has been a member of
the staff for 38 years. He joined the
Equitable Trust Company as a junior
clerk in 1910, was appointed an assist­
ant secretary in 1924, and became
Equitable’s first personnel officer. He
was elected an assistant vice president
in 1930 and a vice president of Chase
in 1934. He is chairman of the bank’s
personnel committee and of the ad­
visory committee of the Chase Bank
Club.
William H. Moorhead, formerly cash­
ier, continues as a vice president of
the bank.

S p e c ia l E x h ib it
Outstanding letters and documents
from the long-secret Abraham Lincoln
Collection in the Library of Congress
have been photographically enlarged
for a special exhibit at the Chicago
Historical Society in Lincoln Park,
which continues until April 1st.

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

ASSETS

C a sh in B a n k s and O f f i c e --------------------------------------------------$ 3 0 6 ,1 4 5 .1 6
F e d e r a l S a v in g s and B u ild in g an d L o a n A s s o c ia tio n s
3 1 4 ,0 0 0 .0 0
U n ite d S ta te s G o v e r n m e n t B o n d s -----------------------------------1 ,45 5 ,6 3 4 .4 0
S ta te , C o u n ty an d M u n ic ip a l B o n d s -------------------------------------- 1 0 4 ,0 1 6 .2 9
C a n a d ia n B o n d s --------------------------------------------------------------------1 0 6 ,1 2 6 .2 3
C a n a d ia n N a tio n a l R a ilw a y B o n d s -----------------------------1 0 4 ,0 0 2 .2 7
(Guaranteed by Canadian Government)
P u b lic U t ilit y B o n d s --------------------------------------------------------------7 3 ,8 5 6 .8 8
M is c e lla n e o u s B o n d s --------------------------------------------------------------1 0 ,0 0 0 .0 0
S t o c k s ----------------------------------------------------------------------------------------1 2 7 ,2 4 7 .5 0
A c c r u e d In te r e s t and D i v i d e n d s ------------------------------------8 ,7 1 8 .4 6
A g e n t s ’ B a la n c e s ( N o t o v e r 90 d a y s d u e ) ----------------6 0 ,2 4 1 .2 9
O t h e r A s s e t s --------------------------------------------6 0 4 .5 4
TO TAL

A D M IT T E D

A S S E T S ----------------------- $ 2 ,6 7 0 ,5 9 3 .0 2

LIABILITIES
R e s e r v e fo r L o s s e s and A d ju s t in g E x p e n s e s ---------- $
(L osses incurred and in process of adjustment)
R e s e r v e fo r U n e a r n e d P r e m i u m s ------------------------------------R e s e r v e fo r T a x e s and E x p e n s e s ------------------------------------O t h e r L i a b i l i t i e s ---------------------------------------------------------------------

2 8 ,8 8 0 .6 8
1 ,30 5 ,6 4 4 .3 8
4 9 ,1 8 8 .2 4
1 ,1 0 2 .83

T o t a l L ia b ilitie s an d R e s e r v e s ------------------------------ $ 1 ,3 8 4 ,8 1 6 .1 3
G u a r a n ty F u n d -------------------------------------— $ 2 0 0 ,0 0 0 .0 0
S u r p l u s -------------------------------------------------------1 ,0 8 5 ,7 7 6 .8 9
SURPLUS TO
P O L I C Y H O L D E R S ----------------------1 ,2 8 5 ,7 7 6 .8 9
T O T A L ----------------------------------------------------------------------------$ 2 ,6 7 0 ,5 9 3 .0 2

Insurance in Force December 31, 1947 *

C
tfo u m t/ H u tu o l
_____$805,361,003.00/

Dwelling Insurance Company
B. REES JO N E S , President
H u b b e ll B u ild in g , D e s M o in e s

N o r t h w e s t e r n B a n ke r. M a r c h , 1948

50

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N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

J. M . d o w n e s ,

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Assistant Cashier
Assistant Cashier

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51

M

i n n e s o t a

N EW S
JO H N C A R LA N D ER
President
Farib au lt

In c r e a s e s S u rp lu s
The Home State Bank of Kandiyohi,
Minnesota, recently increased its bank
stock from $15,000 to $25,000 and also
increased its surplus to $20 000, plac­
ing its total structure at $45,000.

N e w Bank a t D e e r C re e k
A new bank incorporated as the Se­
curity State Bank of Deer Creek, Min­
nesota, was scheduled to open last
month in Deer Creek.
The board of directors consists of
the following stockholders: Fred W.
Noreen, Wadena; George W. Rebehn,
H. O. Carew and E. M. Thompson, all
of Deer Creek, and M. A. Langemo,
Claremont.
Deer Creek had been without bank­
ing facilities since the First National
Bank’s assets were purchased by the
Wadena bank about a year ago.

C le a rin g h o u s e H e a d
Willis D. Wyard, First & American
National Bank president, was elected
head of the Duluth Clearing House
Association last month at its annual
meeting in the Athletic Club.
He succeeds Wilbur F. McLean, first
vice president, Northern Minnesota
National Bank.
Other officers named were Herman
Matzke, president, City National Bank,
first vice president; Mr. McLean, sec­
ond vice president; Julian V. Hagberg,
president, Duluth National Bank, treas­
urer, and Sylvester T. Strain, cashier,
First and American National, man­
ager.
Members of the association are the
First & American National Bank,
Northern Minnesota National Bank,
City National Bank and the Duluth
National Bank.

R e sig n s a t L itch fie ld
Elmer Bratsch has resigned as cash­
ier of the Northwestern National Bank
at Litchfield, Minnesota, to become
cashier and a director of the Union
State Bank in Thief River Falls. He
took over his new duties the first of
this month.
C. G. Nybakken had been acting as
cashier temporarily at the Union State
Bank, awaiting Mr. Bratsch’s arrival.

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Federal Reserve Bank of St. Louis

RO BER T E . P yE
S e c re ta ry
M inneapolis

Mr. Nybakken now has gone to War­
ren where he had been named earlier
as executive vice president and cash­
ier of the Peoples State Bank. The
Union State Bank, at the annual meet­
ing, had its surplus account increased
from $70,000 to $80,000.

H o u sto n B a n k e r M a rrie s
Joseph J. Kelly, assistant cashier at
the Houston State Bank, Houston,
Minnesota, was married recently to
Clara Everson in Winona. Mrs. Kelly’s
home formerly was in La Crosse.

N e w Build ing
Plans for the construction of a mod­
ern new building to house the First
National Bank of Cloquet have been
announced by Lynn S. Olson, presi­
dent. The work will start this spring,
just as soon as weather permits.
Functional modernism keynotes the
design of the one-story building. Rear

Architect’s drawing of proposed
new bank building at Cloquet.

and side exterior walls will be of brick.
The front is to be done in stone and
will feature a large double-glass win­
dow and a large brick pylon. This
pylon enhances the architectural de­
sign by appearing to divide the front
of the building into two distinct parts.
Actually it serves an important func­
tional purpose by providing a high
surface on which to display the bank’s
name.
Interior of the bank has been de­
signed to afford the utmost in cus­
tomer convenience and ideal working
conditions for employes. In the main
banking room, the tellers’ units will
be located immediately opposite the
front entrance. They will serve cus­
tomers across counters of low, open
design. To the right will be the offi­
cers’ space, set apart from the lobby
by a low counter.

Facilities for the Cloquet Northern
Insurance Agency also will be pro­
vided in the new structure. This agen­
cy will occupy space immediately to
the right of the main entrance foyer.
It is situated so that customers may
have access to the insurance agency
after banking hours.
Established in 1900, the First Na­
tional Bank of Cloquet has assets in
excess of $6,500,000 and has completely
outgrown its present quarters. First
Bank Stock Corporation has had an
interest in the bank since 1936 and
has held the majority of the stock
since 1946.
Officers of the bank are Lynn S.
Olson, president; C. I. McNair, Jr., vice
president; W. N. Campbell, cashier;
and Arthur J. Anderson and C. K.
Sunnarborg, assistant cashiers. Direc­
tors are E. P. Dupont, A. H. Kennedy,
Allen Spafford and Messrs. McNair and
Olson.

W a rre n Bank E x p a n d in g
R. J. Schirber, re-elected as presi­
dent of the State Bank of Warren,
Minnesota, has announced that surplus
of the bank was increased by $10,000
at the annual meeting and now totals
$50.000.
During the summer an addition will
be built to the present building to
accommodate needed space for one of
the building tenants.

R e m o d e lin g a t D o d g e C e n te r
Remodeling of the Dodge Center
State Bank is now near completion.
A. C. Bell, executive vice president
and cashier, states there will be an
extension of 20 feet to the building,
also new vaults have been added and
the bank has been completely re­
modeled.
Several changes have been noted in
the bank’s official staff. Mr. Bell, who
formerly held the title of cashier, now
has the duties of executive vice presi­
dent. Lora E. Fette has been added to
the staff as assistant cashier.

Pro m otion
Mrs. Wanda J. Lee has been pro­
moted from teller to assistant cashier
at the Northern State Bank, Thief
River Falls, Minnesota. Another tell­
er, Gladyce O. Strande, resigned last
month prior to her marriage. The
changes were announced by George
W. Werstlein, cashier.
Audrey Harrington of Bemidji has
been added to the bank staff as a
bookkeeper.

N e w A s s is t a n t C a s h ie rs
Two changes in the official roster
of the Minnesota National Bank, East
Grand Forks, Minnesota, were made
N o r t h w e s t e r n B a n k e r, M a r c h , 1948

52

Minnesota News

last month after the resignation of
Howard R. Graveseth as assistant
cashier.
Mr. Graveseth’s duties have been
taken over by John A. Malmberg, who
has been associated with the bank
since 1940. He has been manager of
the Minnesota National Insurance
Agency in addition to being assistant
cashier.
Mr. Malmberg’s position as manager
of the agency has been taken over by
Marlin F. Manthey, who held a similar
position with the Farmers National
Bank at Waseca. Mr. Manthey also
was elected an assistant cashier of the
Minnesota National Bank. Both he

and Mr. Malmberg saw extensive over­
seas service with the Army.

A n d r e w O . N e tla n d
Andrew O. Netland, mayor of Northfield, Minnesota, and director of the
State Bank of Northfield since 1910,
died at his home there last month
after a short illness.
Born in Stavanger, Norway, Mr. Netland emigrated to the United States
as a young man. He was associated
with the First State Bank Of Audubon
before coming to Northfield.
He is a past president of the Northfield bank. His wife and six children
survive him.

S p e c ia l M e e tin g
A special meeting of the stockhold­
ers of the Northern National Bank of
Bemidji, Minnesota, was to be held
last month for the purpose of increas­
ing the common stock of the bank
from $50,000 to $100,000 by the issuance
of a $50,000 stock dividend.

E le c te d V ic e P re s id e n t
William A. McCurdy was elected
vice president of the State Bank of
Virginia, Minnesota, at the board of
directors meeting held recently. He
replaces Frank Jenia.
Other officers of the bank who were
re-elected are J. E. Takkinen, presi­
dent; R. H. Willenbring, cashier; Mar­
tin Virshek, assistant cashier.

F ills V a c a n c y
Charles E. Welch was elected to fill
the vacancy on the directorate of the
First National Bank of Two Harbors,
Minnesota, caused by the passing of
William G. Peterson, director and ex­
ecutive vice president. Directors re­
elected are: A. E. Haugan, Helen C.
Barton, Lloyd A. James and Edward
J. Nauha.
Officers named are: A. E. Haugan,
president; Edward J. Nauha, vice
president and cashier; Jordis Floathe,
Arnold LeClair and Geo. W. Peterson,
assistant cashiers.

G E T TH E JO B D O N E
R u g ged n ess and all-rou n d “ g o ” are coupled
w ith fuel econ om ies in M M V ision lin ed
T ra cto rs to assure reserve pow er and o u t­
stan d in g perform ance under all field and
w eather con d ition s. F rom th e fam ed M M
V isionlined “ fo u rsom e” — th e m od els R , U ,
Z and G T B — choose th e pow er-packed
tractor engineered for yo u r particular farm
needs! Special featu res include: few er parts
and greater a ccessibility; a n ti-friction sealed
tran sm ission s w ith precision-cut, h e a t-tre a ted ,
a lloy steel gears; high turbulence ty p e cylinder
h eads; force-feed lubrication sy ste m s. “ Q u ick O n — Q u ic k -O ff” tools for all M M Visionlined
T ra c to rs offer greater u tility and real eco n om y .
S afe, dependable M M V isionlined T ra cto rs
m ea n tim e saved and m ore profits on all you r
fa rm p o w e r-jo b s— all th e year rou n d ! N o m a t­
ter h ow to u g h th e jo b , there’s an M M T r a c to r
for better and easier farm in g . . . ready to give
y o u th a t profitable tea m w ork o f M M T r a c t o r s
and M M M o d e r n M a c h i n e s .

M M TRACTORS ARE V IS IO N LIN ED FOR EFFIC IEN C Y , C O M FO R T , A N D

Jo in s Rush C ity Bank
At the regular annual meeting of
the stockholders and directors of the
State Bank of Rush City, Minnesota,
M. B. Thorsen of Minneapolis was
elected a vice president and director.
Mr. Thorsen is a prominent business
man of Minneapolis and St. Paul.
John E. Ordner who has been asso­
ciated with the bank since 1930 was
advanced from assistant cashier to
cashier.

In 38th Y e a r
T. F. Bergquist was re-elected presi­
dent and George D. Erickson, New
Ulm attorney, a new member of the
board of directors of the Citizens State
Bank of Lafayette, Minnesota. Mr.
Erickson succeeds O. W. Strom who
passed away recently.
Mr. Bergquist is entering upon his
38th consecutive year as president of
the banking institution in that build­
ing. He was the first president when
it was organized in 1910 and continued
in that capacity until 1933 when the
Citizens State Bank was organized.

S e ll Bank In te re s ts

Minneapous -Moline Power I mplement Company
M I N N E A P O L I S 1. M I N N E S O T A

N orthw estern B a n k e r, M a r c h , 1948


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

The Northwest Bancorporation has
sold its interest in the First State Bank
of Malta, Montana, to R. C. Monroe,
president, and his associates.

53

r .
c h a n e y ,
vice
chairman of the board of North­
western National Bank of Minneapolis,
has been cited for the third time in
three months for civic activities in
Minneapolis.
His most recent recognition came in
the form of a scroll for distinguished
service, awarded by the Minneapolis
Council of Social Agencies. Mr. Chaney
is executive committee chairman of
the council.
Last October, he was honored by the
Minneapolis Y.M.C.A. at the conclu­
sion of his sixth year as president of
that organization. In addition, he also
was presented a scroll signed by
M a y o r H u b e r t H . H u m p h r e y of Min­
neapolis.
Mr. Chaney has been head also of
the Minneapolis Urban league, an in­
terracial group. He was the unani­
mous selection for the social agencies’
citation.

C

l a r e n c e

A u g u s t u s H . K e n n e d y was elected
chairman of the board of directors and
E llw o o d O. J e n k in s was named presi­
dent of First Service Corporation, op­
erations subsidiary of First Bank
Stock Corporation, at the directors’
annual meeting in St. Paul.
Other officers were re-elected. M r .
K e n n e d y , president of First Bank
Stock Corporation, had been president
of First Service Corporation since
1941.
He succeeds C. T . J a ffr a y as
board chairman. Mr. Jaffray continues
as a director.
All directors were re-elected at the
annual meeting of First Service Cor­
poration stockholders.

has be­
come the first woman to be named an
officer of Farmers and Mechanics Sav­
ings Bank of Minneapolis in its 73
years of operation. She was elected
assistant secretary at the annual meet­
ing of bank trustees. All other officers
were re-elected. Mrs. Sifferle has been
with the bank since 1922 and has had
charge of the bank’s insurance sav­
ings department since 1924.
M rs.

H e n r ie t t a


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Federal Reserve Bank of St. Louis

S.

S iffe r le

W a lla c e L . B o s s , a vice president of
First National Bank of St. Paul, has
been named campaign manager for
the Minnesota Cancer society’s April
fund drive. Mr. Boss is a former treas­
urer of the United States Chamber of
Commerce.

Combined net earnings of 74 bank
affiliates of First Bank Stock Corpora­
tion of Minneapolis last year totaled
$5,989,795. The corporation’s portion
of this amount, together with results
of operations of the parent corporation
and its other affiliates, First Bancredit
Corporation and First Service Cor­
poration, produced combined net op­
erating earnings of $5,727,251. This
was equivalent to $2.02 per share, com­
pared with $2.07 a share in 1946.
Directors declared a 40-cent divi­
dend, payable March 10th to stock­
holders of record February 20th. Divi­
dends of 80 cents per share were voted
in 1947.
Value of the corporation’s capital
stock was reported $24.61 per share on
December 31, 1947, compared with
$23.78 per share the previous year. In
addition, the corporation had a propor­
tionate interest in certain interior re­
serves and other assets aggregating
approximately $14,000,000.
First National Bank of Minneapolis
and six affiliates in Minneapolis, Edina
and Robbinsdale earned $1,850,179; the
First National Bank of St. Paul, the
First Trust Company and four affili­
ated St. Paul banks, $1,667,471; and
63 affiliated banks and branches out­
side the Twin Cities, $2,472,145.
Total deposits at the year end, after
elimination of inter-bank balances,
were $1,143,813,076. Loans and dis­
counts increased from $206,275,355 to
$262,181,255.
Election of S a m u e l M a ir s , chairman
of the board of directors of ArcherDaniels-Midland Company of Minne­
apolis, as a director of First Bank
Stock Corporation was announced by
A u g u s t u s H . K e n n e d y , president, fol­
lowing the annual meeting of stock­
holders. All First Bank Stock Cor­

poration officers and directors were re­
elected.
Summarizing the report to stock­
holders issued by himself and C. T .
J a ffr a y , chairman of the First Bank
Stock board, Mr. Kennedy pointed out
that while 1947 started amid forecasts
of a business recession, the record
shows that for the Ninth Federal Re­
serve district, as well as for the entire
nation, the year turned out to be one
of the most prosperous on record.
L lo y d M . W i c k r e of the Richfield
State Bank and Trust Company has
been elected president of the board of
directors of Richfield Community
council. Richfield is a suburb of Min­
neapolis.
M e lv ille A . R . K r o g n e s s , assistant
cashier of Northwestern National
Bank of Minneapolis, has been elected
president of the board of directors of
North East neighborhood house in
Minneapolis.

Twenty-three employes of North­
western National Bank of Minneapolis,
Northwest Bancorporation and North­
western Mortgage Company were in­
itiated last month into the TwentyYear club of the organizations at the
Nicollet hotel in Minneapolis.
They are L lo y d E . B e n g s t o n , A r t h u r
J. B u rk e , M . J. C row e, A r th u r R . E llis e n ,

V era

M.

E r ic k s o n ,

S t a n le y

A.

F r e e s , M ilt o n E . G e b e r t, J o h n S . G e sd a h l,

John

s c h m id t,

G m it r o ,

A lla n

H e s s e lr o t h ,
J oh n so n ,

C.

F r ie d a

F.

G o ld ­

Paul

L.

Jen sen ,

F red

E.

J a lm e r

Ray

E.

H a lg r e n ,
J oh n so n ,

M e r r ill

K la s s y , M ila n M . K o p e , V o n E . L u s c h e r, O ra L . M o r r is , E a r l A . P a tc h , C la r ­
e n c e L . S m it h , A r t h u r S n a r t e m o
V ern on

and

R . Soren sen .

When M r s . L o w e l l C . K n o w lt o n of
Minneapolis showed up at Farmers
and Mechanics Savings Bank of Min­
neapolis with her triplets to open
Stork club savings accounts for them,
the bank tripled the amount Mrs.
Knowlton deposited in each of the
babies’ accounts as a gift to the chil­
dren.
N o r t h w e s t e r n B a n ke r, M a r c h , 1948

54

Minnesota News

D o n a ld C . D a y to n , a director of the
Lincoln office of Northwestern Nation­
al Bank of Minneapolis, was named
the “outstanding young man of Min­
neapolis in 1947” by the Minneapolis
Junior Chamber of Commerce. Mr.
Dayton is executive vice president and
general manager of the Dayton Com­
pany, Minneapolis department store.
He also is national president of the
Elizabeth Kenny foundation, which
combats infantile paralysis, and presi­
dent of the Minneapolis Retailers As­
sociation and of the H. J. Nelson Com­
pany.

Improved financial position of farm­
ers, aided by industrial postwar de­
velopments, will help the seven-state

northwest area to adjust itself to low­
er farm prices if they come, J. C a m ­
e r o n T h o m s o n , president of North­
west Bancorporation, said in a recent
report.
Farm mortgage indebtedness in the
seven states served by Banco affiliates
has decreased 37 per cent since 1940,
compared with an increase of 71 per
cent from 1915 to 1920.
B e n S . W o o d w o r t h , assistant cash­
ier of First National Bank of Minne­
apolis, has been re-elected a director
of Minneapolis Athenaeum, one of the
oldest libraries in Minnesota.
H e r b e r t S . W o o d w a r d , vice presi­
dent of Columbia Heights National

Bank, has given $300 to the University
of Minnesota Greater University fund.
His gift is one of the first two gifts
made to the fund.
R o m e B . G r o s s , 49, assistant man­
ager of the North American office of
the Northwestern National Bank of
Minneapolis, died unexpectedly last
month. Services and burial took
place in Minneapolis.

Two hundred Minnesota bankers at­
tended the ninth annual Minnesota
Bankers conference at the University
of Minnesota. Cooperating in spon­
soring the conference were the Minne­
sota Bankers Association and the
Minnesota state banking department.
Among speakers were P a u l M c ­
C r a c k e n of the Minneapolis Federal
Reserve Bank; K . O. S a t ir e , Blue
Earth, Minnesota, banker, and H . L .
S e v e r s o n of Dun & Bradstreet.
Directors of Investors Selective
Fund, Inc., Minneapolis open-end in­
vestment company, declared a divi­
dend of seven cents a share for the
first quarter of the current fiscal year,
E . E . C r a b b , president, announced.
The firm is affiliated with Investors
Syndicate, principal underwriter and
investment manager of the fund.

1 FOREIGN exchange regulations, import restrictions, and
economic conditions are constantly changing throughout
the world. Keeping abreast of new developments in overseas
trade is an important part of the work of our Foreign Depart­
ment. This specialized knowledge— and our facilities for the
efficient consummation of dealings abroad — place us in a
favorable position to cooperate with your bank in rendering
service to your customers who buy or sell overseas.
Inquiries are invited by our Foreign Department regarding
any phase of this service.

A M E R IC A N N A T IO N A L B A N K
AND T R U S T C O M P A N Y
O F C H IC A G O
LA S A L L E STR EE T
Member Federal Deposit

N o r t h w e s t e r n B a n k e r, M a r c h , 1949


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Federal Reserve Bank of St. Louis

AT W A S H I N G T O N
Insurance Corporation

Three St. Paul bankers were among
candidates for the board of directors
of the St. Paul Association of Com­
merce. They are H . W i l l i a m B la k e ,
vice president and cashier of Empire
National Bank and Trust Company;
W a l l c e E . B o s s , vice president of First
National Bank of St. Paul, and C la r ­
e n c e A . M a le y , vice president and
trust officer of American National
bank.
The Minneapolis Mortgage Bankers
Association held its annual dinner
meeting at the Minneapolis Athletic
club. Members of the St. Paul Mort­
gage Bankers Association and presi­
dents of Minneapolis downtown banks
were invited. R . E . D a v id s o n , assist­
ant treasurer of Farmers and Me­
chanics Savings Bank of Minneapolis,
is president of the Minneapolis as­
sociation.
Officers of the four cooperative
credit banks in the Seventh farm
credit district were re-elected by di­
rectors of the farm credit administra­
tion of St. Paul. They are M . D . A v e r y ,
federal land bank; G e o r g e S u s e n s , pro­
duction credit corporation; F r e d H .
K la w o n , intermediate credit bank, and
H u t z e l M e tz g e r , bank for cooperatives.
R o b e r t J . B a r r y , St. Paul, was re­
named district general agent.

Minnesota News
Deposits in Minnesota state banks
now are at the highest point in Min­
nesota banking history, F . A . A m u n d ­
s o n , state commissioner of banks,
announced. Loans and discounts are
increasing and are at the highest peak
since November 7, 1927, the report
showed. Mr. Amundson’s r e p o r t
showed an increase of $10,976,000 in
loans and discounts for the fourth
quarter of 1947 to a total of $230,384,166
for 1947. Loans and discounts in­
creased $8,892,984 during the threemonth period to a total of $981,508,209.

Bank of St. Paul, have been named to
the board of directors of Zinsmaster
Baking Company of St. Paul. Mr.
Griggs is president of Griggs, Cooper
and Company, wholesale grocers, and
Washburn is president of American
Hoist and Derrick Company, both of
St. Paul.

Bank debits in Minneapolis totaled
$1,197,947,000 during January, 1948, an
increase of 25 per cent over the same
period a year ago, according to the
Federal Reserve Bank of Minneapolis.
S.
L . J e r p b a k , president of Richfield
State Bank and Trust Company, has St. Paul showed an increase of 21
been elected treasurer of Lake of the per cent over 1947, with January,
1948, debits totaling $522,084,000. State
Isles Lutheran church, Minneapolis.
debits were up 23 per cent and in the
M ilt o n W . G r ig g s and H a r o ld O.
entire ninth federal reserve district,
21 per cent.
W a s h b u r n , directors of First National

55

J o s e p h F . R in g l a n d , president o f
Northwestern National Bank of Min­
neapolis, has been elected to a threeyear term on the Minneapolis Cham­
ber of Commerce board of directors.
C la r e n c e R . C h a n e y , vice chairman of
the bank board, is one of eight retiring
directors, who are limited by custom
to one term.

M rs.
E l s ie
S t a p le to n ,
nationallyknown budget authority, spoke before
the February meeting of the Home
Institute Club of the Northwestern
National Bank. Mrs. Stapleton, who
was at the Northwestern Bank in
January, 1947, when the budget de­
partment was started, returned after
a year’s absence full of additional in­
formation garnered from hundreds of

The Minnesota Commercial Men's Association had a very successful year during
1947. The statement below indicates its strong financial position.

Liberal sickness

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

A hospital

policy covering hospital and surgical expenses is also provided.
Statement as of December 31, 1947
LIABILITIES

ASSETS

U. S. Government Eonds........................ $152,120.00
Claims Pending, Estimated...............
Accrued Expenses and Unpaid Bills,
Municipal Bonds...................................... 130,076.50
Reserve for Taxes..............................
Railroad Bonds ....................................... 13,875.00
Unearned Premiums .........................
Stocks ....................................................... 18,851.25
RESERVE FOR PROTECTION OF
Insurance Endowments (Paid-Up).............................. 28,510.38
Savings and Loan Assn. Deposits............................ 10,035.16MEMEERS ......................................
Real Estate (Office Building).................. 18,000.00
Cash in Banks and On Hand................ 57,997.62
2,194.98
Accrued Interest, Dividends..................
Market Value Bonds, Stocks over
Book Value .........................................
3,838.50
TOTAL............................................. $435,499.39

$ 28,745.50
1,297.60
4,059.00
40,965.00
360,441.29

TOTAL............................................. $435,499.39

\\ rite for Applications and Literature

MINNESOTA COMMERCIAL M E N ’ S ASSOCIATION


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

PAUL CLEMENT, Secretary
2550 PILLSBURY AVENUE

MINNEAPOLIS 4, MINNESOTA

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

56

Minnesota News

interviews, through personal appear­
ances, and the conducting of her own
radio programs. It was another full
house for this fifth meeting of the
Home Institute Club for its 1947-1948
lecture series. Mrs. Stapleton’s sub­
ject for the evening was “How to
Make Your Dollars Do More.”
Goodrich Lowry, assistant vice pres­
ident, Northwestern National Bank,
has been elected to the governing com­
mittee of the Minneapolis Club to
serve for a three-year term.

Joseph F. Ringland, president of the
Northwestern National Bank, has been
elected director to the board of Minne­
apolis Chamber of Commerce to serve
a three-year term.

A d v a n c e d a t M ora
Robert L. Nikodym was elected as­
sistant cashier of the Kanabec State
Bank at Mora, Minnesota, at the an­
nual directors meeting recently, it was
announced by Frank P. Powers, presi­
dent. Mr. Nikodym started as a book­
keeper in 1941, served until 1946 in

the Navy, re-entered the bank as a
teller and more recently has been de­
voting a great share of his time to
field representative work. Other of­
ficers all were re-elected.

H o ld 45th M e etin g
The stockholders of the State Bank
of Hanska, Minnesota, held their 45th
annual meeting at their banking house
recently.
The surplus was raised from $40,000 to $45,000 which gives the bank a
total of $85,000 capital and surplus.
A small dividend was declared and
paid.

P ro m o te O ffic e rs

NATIONAL SURETY
CORPORATION
V IN C E N T C U L L E N , P resid en t

F IN A N C I A L S T A T E M E N T
December 31st, 1947
A SSETS
Cash in B a n k s ............................................................. $ 3,886,897.43
Investments:
Bonds o f United States
G o v e r n m e n t........................ $16,754,304.21
All Other Bonds
. . . .
1,970,116.31
Preferred Stocks
. . . .
4,664,241.00
Common Stocks
. . . .
8,058,292.00
31,446,953.52
Capital stock o f National Surety Marine Insurance
Corporation, a wholly owned subsidiary
.
.
.
Premiums in Course o f Collection,
N ot over 90 Days D u e ...........................................

2,102,770.92

Accrued I n te r e s t.............................................................
Reinsurance and Other Accounts Receivable .
.
.
Home Office B u i l d i n g .................................................

73,722.79
90,764.50
500,000.00

1,663,891.87

T O T A L A D M IT T E D A S S E T S ..........................$39,765,OOLQ3

L I A B I L I T I E S , C A P IT A L A N D SU R P L U S
Reserve for losses and Loss Adjustment Expenses
.
Reserve for Unearned P r e m i u m s ...............................
Reserve for Commissions, Expenses and Taxes
.
.
Capital S t o c k .....................................$ 2,500,000.00
S u r p l u s ...........................................
19,173,322.24
Surplus to P o lic y h o ld e r s .....................................

$ 5,813,222.91
10,400,713.46
1,877,742.42

21,673,322.24

T O T A L .................................................................... $3 9 ,7 6 5 ,0 0 1 .0 3
Investments are carried on the basis prescribed by the New York Insurance Department
— bonds being carried at amortized values and stocks at values based on rates promul­
gated by the National Association o f Insurance Commissioners. If investments, includ­
ing those o f National Surety Marine Insurance Corporation, a wholly owned subsidiary,
were carried at the December 31st, 1947 market quotations, total assets and surplus
would be decreased by $156,056.42.
Bonds carried at $1,155,500.00 are deposited as required by law.

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

At the annual meeting of the North­
western State Bank of Hallock, Min­
nesota, Cashier Wikholm was elected
to the position of one of the vice presi­
dents, Art Larson was promoted to
cashier replacing Mr. Wikholm and
Mrs. Stella Moore was elected to the
position of assistant cashier. The
other officers are J. R. Chappell, presi­
dent; Dr. J. L. Deimore, Roseau, vice
president; G. S. Wass, vice president,
and Wm. L. Petersen, Lancaster; C. B.
Dahlquist, Roseau, and C. D. Tearse,
Winona, directors.

iv e t e t h Bank M eetin g
Dante Paciotti and J. R. Schuknecht
were advanced to vice presidents and
George Bodovintz was elected cashier
at the annual meeting of directors of
the Miners National Bank of Eleveth,
Minnesota.
Alfred Hoel was re-elected president
and Raymond Hoel as vice president.

H o ld O p e n H o u se
The Third Northwestern National
Bank of Minneapolis, fourth to be re­
decorated in a series of remodelings
performed within the offices of the
Northwestern National Bank, held its
open house last month in celebration
of its new quarters. George Christoferson, president, greeted old friends
of the community to the bank and
members of the staff were on hand to
show visitors the new building and
the function of each department. The
remodeling of the Third Northwestern
went a step farther than most redecorative jobs, the bank moved into
an entirely new location, a completely
rebuilt and remodeled structure just a
few doors from their old location.
Their new quarters gives the particu­
lar community they serve, East Side
Minneapolis, its most modern banking
facility.

Minnesota News

N ew t*n in tin qs in 3 tn r q u e tte H ank
ISITORS to the department of
banks and bankers at the Mar­
quette National Bank of Minneapolis
are singing the praises of the beauti­
ful Indian paintings recently installed
there. The group of pictures repre­
sent typical scenes of life among In-

V

groups, Mrs. Lochrie lectures fre­
quently on various art subjects.
Many murals from her gifted hand
have been installed in buildings and
offices throughout t h e northwest.
Three of her exhibits are out at the
present time. Mrs. Lochrie also has
painted portraits of many dignitaries,
including three of Montana’s gover­
nors.
She has painted Indians, landscapes
and portraits from Canada to Mexico,
and throughout all her work, the qual­
ities of naturalness and realism pre­
vail.

57

C h a n g e Bank N am e
The Scanlan-Habberstad Bank, one
of the old names in Minnesota bank­
ing circles, had its name changed at
the annual meeting of stockholders to
the Lanesboro State Bank. The stock­
holders also added two new members
to the board, Teman Thompson and
Adolph Doffing.
Mr. Doffing was named president by
the directors, 0. T. Simonson was
elected vice president and cashier and
Mabel Sorum is assistant cashier.

W ith A lb e rt L e a Bank
L. R. Wescott, prominent lumber
dealer in Albert Lea, Minnesota, was

Your BANK S
C H IE F E A G L E W I N G F A N
On Exhibition at M arquette National

dians and in the west. They were
painted by Mrs. Elizabeth Lochrie,
wife of A. J. Lochrie, president of the
Miners National Bank in Butte, Mon­
tana.
Mrs. Lochrie gathered all the back­
ground for these works of art from
personal acquaintances with members
of the Blackfeet tribe of Montana.
The paintings now hanging in the
Marquette National Bank are typical
of her work, for they have captured
the natural expressions of her sub­
jects, presenting a realism that makes
the observer want to reach out to
touch them and see if they are real.
“Laughing Girl” is a portrait of lit­
tle May Old Person, a modest, lovable
youngster who was very proud to
pose for Mrs. Lochrie. Another por­
trait, “The Eagle Wing Fan,” shows
Chief Eagle Child in all his finery as
a Medicine Man. He and the artist
have been friends for many years and
he is considered by all to be a real
gentleman, kind, friendly and proud
Mrs. Lochrie’s husband received his
early bank training at Murray and
Osecola, Iowa. She was born in Deer
Lodge, Montana; was graduated from
Pratt Institute Art School in Brooklyn,
New York, and entered in her first
National Art Exhibit in 1935. Since
that time she has entered the Art Ex­
hibit annually. A member of the Asso­
ciated American Artists, the Profes­
sional League and other si mi l ar

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Federal Reserve Bank of St. Louis

Bond Account
EARNINGS
Bankers find our Bond Department offi­
cers helpful in suggesting ways to improve
net returns from their investment accounts.
We would welcome an opportunity to dis­
cuss this important source of your bank’s
earnings. There might be substantial bene­
fits for your bank from such a discussion.
Your inquiry is cordially invited.
Ask for free copy of the booklet,
"E ff e c t o f Bond T a x Status O n B ank E arnings”
BOND D E P A R T M E N T

TH E N O R T H E R N
TRUST COMPANY
50 S O U T H LA S A L L E S T R E E T , C H IC A G O 90, I L L I N O I S
M em ber 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 , 194S

58

Minnesota News
to the presidency. G. Skogsmark, for­
mer cashier, was advanced to vice
president. Charles E. Palmer, former
assistant cashier, was named cashier
to succeed Mr. Skogsmark.

elected to the directorate of the Se­
curity State Bank there at the annual
stockholders meeting. Mr. Wescott
also is a city councilman in Albert Lea.
Resources of the bank were more than
$900,000, a 25 per cent increase in 1947.

C o rre c tio n
In a news item appearing in the
January Northwestern Banker, it was
reported that E. L. Olson was assum­
ing his duties as assistant cashier of
the Ellsworth State Bank at Ellsworth,
Iowa. This should have been Ells­
worth, Minnesota. Mr. Olson formerly
was associated with the Marquette
National Bank in Minneapolis.

K asso n E le ctio n
Four officers of the Kasson State
Bank, Kasson, Minnesota, were ad­
vanced at the annual meeting of the
stockholders and directors.
C. L. Palmer, former president, was
elected chairman of the board of di­
rectors, and C. G. Palmer, former ex­
ecutive vice president, was advanced

iL YA R D S

DL BA N K

CARL

L.

R e p o rts E x c e lle n t Y e a r
Following a year of most satisfac­
tory business in 1947, the Minnesota
Commercial Men’s Association has
started 1948 with every indication of
attaining new records.
During 1947 the association in­
creased its assets 1.92 per cent, a total
of $435,499. These assets listed in the
report of Paul Clement, secretary and
general manager, include the follow­
ing: Cash, $57,997 (13.30 per cent);
U. S. government bonds, $152,120
(34.88 per cent), and other high-grade
bonds, $143,951 (33.01 per cent), and
select stocks, $28,886 (6.62 per cent).
This includes $10 035 in Federal Sav­
ings and Loan shares. Real estate
owned and free of all encumbrances
was $18,000, which is the association’s
practical and attractive home office
building in Minneapolis. It is conserv­
atively valued. Interest accrued but
not yet due was $2.194.98 and all other
assets totaled $28,510.

F R E D R IC K S E N
President

M A R K A. W IL S O N
V ic e President

LET ’S HAVE A VISIT!

W IL L IA M
G. N E L S O N
V ic e President

The next time you're in Sioux City
— either on business or pleasure, let's
do a little visiting over our back
fence. We'd be glad to see you and
visit with you. . . . And if you'd like
to mention your correspondent needs
in Sioux City, we'll be glad to talk
about that, too. . . . But anyway,
won't you drop in for a visit?

W IL L IA M
C. S C H E N K
A sst. V . Pres, and Cashier
C L IF F O R D L. A D A M S
A sst. V ic e President
J O H N S. H A V E R
A sst. Cashier
J A M E S L. S M I T H
A sst. Cashier and Auditor
K IN L E Y W . S M IT H
A sst. Cashier
STANLEY W . EVANS
Field R epresentative

PAUL CLEM EN T
Association in favorable position

n

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u

b

u

a

VF
cj
V L kS
J tI o
VJV
lational Bank
j

4 SIOUX CITY

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 , 1948


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

The association’s total 1947 income
was $324,995. Losses paid, plus the
expense of doing business, amounted
to $312,542. The ratio of income to
disbursements was 103.9 per cent,
which indicates that the association
took in $104 for each $100 it paid out.
The excess income either was credited
to policyholders reserves or passed to
surplus for their additional protection.
Net premiums written during 1947
totaled $310,471 against underwriting
expenses of $114,652, or 36.9 per cent
of premiums written.
Earned premiums totaled $311,075,
while loss and adjustment expense
was $189,895, or 61.04 per cent of the
premiums earned. The association
showed a net underwriting loss of
$3,762, or 1.2 per cent.

59

Sont h Dakota

NEW S
A . E. DAHL
President
Rapid C ity

C A R L E . B A H M E IE R , J R .
S e c re ta ry
Huron

S elect N ew
Carl E. Bahmeier, Jr., Unanimously Elected to Office
C ARL E. BAHMEIER, JR., was
unanimously elected as executive
secretary-treasurer of the South Da­
kota Bankers Association at a meeting
of the executive council late last
month at association headquarters in
Huron. Mr. Bahmeier succeeds George
M. Starring, who resigned the first of
the year.
In announcing Mr. Bahmeier’s se­
lection after a careful study of all
applicants, A. E. Dahl, president of
the South Dakota Bankers Association,
stated the secretary is well experi­
enced in organizational work and the
fact that he has had no banking expe­
rience is considered an asset by the
association officers since he will be
able to learn his new duties with an
open mind.
Mr. Bahmeier is a graduate of the
University of Minnesota. He entered
the army as a private in 1941 and
received his discharge in 1945 as a
colonel. Since his retirement from
active duty he has been in radio and
public lecturing work.
Mrs. Lois Halvorsen, who performed
the duties of the dual office during the
war years and had been acting in the
same capacity during the past two
months, will continue with the state
office full time through March 31st,
but wishes to be relieved of all duties
by July 1st.

Chairman Odegard presided at the
opening session Wednesday morning,
introducing the various speakers.
Thursday morning’s session was pre­
sided over by H. T. Haynes, cashier,
Spink County Bank, Redfield, and
member of the SDBA agricultural
committee.
Fred L. Christensen, also a member
of the SDBA committee, and cashier
of the Bear Butte Valley Bank, Stur­
gis, conducted the afternoon session.
Talks and demonstrations by well
qualified bankers and university per­
sonnel covered practically every field
of endeavor connected with farming.

A d d T w o D ire c to rs
Stockholders of Farmers State Bank,
Flandreau, South Dakota, recently
voted to add two more directors to the
board. Named for these two positions
are Judge George A. Rice and Mrs.
Henry Russell, long identified with the
active work of the institution.
B. J. Tighe was re-elected as presi­
dent, and William Duncan was named
to succeed to the position of vice presi­
dent which was formerly held by
Arthur R. Johnson.
The usual dividend was declared
and a transfer of funds made to the
reserve fund to further strengthen the
capital structure of the bank.

A tte n d S h o rt C o u rse

H e a d s E m e ry Bank

About 60 bankers attended a twoday agricultural short course and
school in Brookings, South Dakota,
last month. Those attending were
unanimous in their enthusiasm for the
program prepared by the agricultural
committee of the South Dakota Bank­
ers Association and the South Dakota
State College staff.
Carl J. Odegard, chairman of the
SDBA agricultural committee and vice
president of the Northwest Security
National Bank, Huron, stated that at­
tendance was lower than expected, due
to snow and high winds the evening
before the meeting opened.

C. T. Coyne was elected president
of the Security State Bank at Emery,
South Dakota, by directors at their
annual meeting. He succeeds the late
J. J. Hofer who had been president
in the bank since 1920. John Schwans
was re-elected vice president; J. W.
Hofer was advanced to the position of
cashier and Doris M. Miner was named
assistant cashier. L. N. Arend was
voted to the board of directors by
stockholders.
The same group of officers were
elected to head the Security State
Bank at Alexandria, with the excep­
tion of Mr. Arend being named cashier


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Federal Reserve Bank of St. Louis

at the latter bank. Nellie F. Ingersoll
remains at the latter institution as as­
sistant cashier.

S u c c e e d s F a th e r a t M itch e ll
Herbert Hitchcock was elected chair­
man of the board of directors and J.
M. Patton president of the Mitchell
National Bank, Mitchell, South Dakota,
at its annual meeting.
Mr. Patton succeeds his father, the
late M. F. Patton, as president of the
bank. Other officers chosen include
J. N. Shelby, vice president; George
Fredericks, vice president: C. E. Fristad, cashier, and C. J. Schiltz, assist­
ant cashier. Mr. Fristad comes to the
Mitchell National from the Huron
branch of the National Bank of South
Dakota, where he was assistant man­
ager.
Members of the board of directors,
all but one of whom were re-elected,
include F. J. Herrick, Mr. Fredericks,
Mr. Hitchcock, Bradley Young, Mr.
Patton, and Mr. Shelby, who takes
the place of the late M. F. Patton.

O ffic e rs A d v a n c e d
A. G. Berger was elected president
of the Deuel County National Bank of
Clear Lake, South Dakota, at the an­
nual meeting of the board of directors
recently. Mr. Berger, who formerly
was cashier, succeeds S. E. Anderson
who now becomes chairman of the
board. Verner Berg and N. A. Dobie were
elected vice presidents and H. F.
Anderson was named cashier, replac­
ing the vacancy left by Mr. Berger’s
advancement.
Stockholders learned at their meet­
ing that the bank ended the year with
the highest deposit total in its history,
the figure being $3,336,495 and assets
of $3,501,611 were a half million great­
er than a year ago.

Runs fo r S ta te O ffice
Walter K. Johnson, vice president
and cashier of the Farmers State Bank
of Estelline, South Dakota, has an­
nounced himself as a candidate for the
Republican nomination for state sena­
tor, representing the Hamlin-Kingsbury senatorial district.
Mr. Johnson was born in Minne­
sota, has been a South Dakota resident
since 1931, and prior to his bank con­
nection in Estelline, was assistant
manager of the Gregory branch of the
Northwest Security National Bank of
Sioux Falls.

C a p ita l Is In c re a s e d
The capital of the Ipswich State
Bank was raised to $50.000 at the an­
nual stockholders’ meeting in Ipswich,
South Dakota, recently. This was an
N o r t h w e s t e r n B a n ke r, M a r c h , 1948

60

South Dakota News

increase of $23,000 from the previous
total of $27,000.
W. K. Herrick was elected to the
board of directors, filling the vacancy
left by the death of H. J. Bebermeyer.
At the directors’ meeting, all officers
were re-elected. H. S. Crissman is
president, J. F. Holdhusen is vice
president and J. S. Holdhusen is cash­
ier.

served as chairman of the group dur­
ing the 1945 session.
Mr. Gunderson also served as presi­
dent of the South Dakota Implement
Dealers in 1944 and was on the state
livestock sanitary board for six years.

S io u x F a lls N ew s
S . H A R K I S O N , president of the
I National Bank of South Dakota,
was elected chief rabban of the 1948
divan of El Riad Shrine. O. A . B r a y ,
assistant cashier of the Northwest Se­
curity National Bank, was named
treasurer of the local temple. Mr.
Harkison was also elected trustee for
a term ending in 1951.

jO M

E le c te d C a s h ie r
S. C. Young, assistant vice president
at the First National Bank at Aber­
deen, South Dakota, since 1946, was
elected cashier at a recent meeting of
the board of directors.

A p p o in te d b y G o v e rn o r
C. H. Gunderson, president of the
Security State Bank at Irene, South
Dakota, has been appointed a member
of the South Dakota state highway
commission to succeed Earl Guernsey,
Parker, who resigned recently because
of ill health, Governor George T.
Mickelson has announced.
Mr. Gunderson is a former state leg­
islator, having served in the House
in 1939, 1941, 1943 and 1945. During
all four terms he was a member of
the house committee on highways and

C. D u ffy , president of the Union
Savings Bank, in company with Mrs.
Duffy, is spending a several weeks’
vacation in California. The Duffys are
headquartering in Glendale.
W .

T o n y W e s t r a , assistant cashier and
agricultural and livestock represent­
ative of the Northwest Security Bank,
has received an achievement award in
agricultural projects from the Junior
Chamber of Commerce.

r
CALL IN A S P E C I A L I S T
In almost every field the specialist is
called in for consultation whenever a
tou gh q u estion poses itself. I f the
specialist has earned his rating he can
make a real contribution, but if he is
one o f those self-appointed characters
he just confuses the issue.
W e are bank check specialists, having
earned our rating ov er a p e r io d o f
thirty-two years, and in our field the
need fo r con su lta tion is b e co m in g
m ore apparent. Because w e make
nothing but bank checks, and because
we have been so close to the checking
system for so many years, we find our­
selves more and more in consultation
on com plex questions which, until
recently, w ould not have been raised
at all.
For years the production and distri-

bution o f bank checks presented no
problem to either banks or printers.
W e w ould run a m illion checks, bind
them up, pack them in cases and ship
them to the bank. The bank in turn
w ould unpack the checks, put them in
the s to ck r o o m , and pass them out
over the counter as customers needed
them. N othing to it!
But now checks are imprinted for the
individual and, instead o f one order for
a m illion checks, we have five thou­
sand orders and consequently com pli­
cations can set in unless bank and
check printer get together and work
ou t a stream lined proced u re. So,
whether you have a thousand orders
. . . or five thousand . . . or a hun­
dred thousand . . . let’s get together!
Call in a specialist.

Manufacturing Plants at:
NEW YORK. CLEVELAND, CHICAGO, KANSAS CITY, ST. PAUL
CHE CK P R IN T E R S

Hfnc. •

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

F r a n k C in k le , cashier and vice presi­
dent of the National Bank of South
Dakota, was elected treasurer of the
Associated Retailers.
D r . a n d M r s . W . R . L a ir d spent a
winter vacation in California, spend­
ing part of their time with their son,
Lt. Comdr. W. R. Laird, Jr., in Coro­
nado. Dr. Laird is a director of the
Northwest Security National Bank.
C. A . C h r is t o p h e r s o n , chairman of
the board of directors of the Union
Savings Bank, discussed world peace
and its present status in a talk spon­
sored by the International Relations
club of Augustana college.
T o m H a y t e r , vice president of the
First National Bank and Trust Com­
pany, and T o m S. H a r k is o n , president
of the National Bank of South Dakota,
were in a group of civic leaders con­
ferring with the state highway com­
mission at Pierre regarding the ap­
proach of highway 38 to the city of
Sioux Falls.
R o b e r t G riffith s, department man­
ager of the First National Bank and
Trust Company, received word that
his mother, Mrs. W. D. Griffiths, suf­
fered leg, rib and collarbone fractures
and lacerations when run down by a
truck in San Bernardino, California,
where she had been visiting.

Loud ringing of the burglar alarm
at the First National Bank and Trust
Company, of which W i l l i a m W . B a k e r
is president, brought police on the run
one night recently. They found every­
thing in order. So they shut off the
alarm. Then one morning it rang
again, and again police came on the
double. Again everything was in
order—except the alarm. The trouble
was traced to a short circuit.
Whether a “yes” meant to be a “no”
will still cost the Farmers and Mer­
chants Bank of Platte $2,380.47 was
basis for a suit filed in federal court
here against the United States.
The bank contended that in 1942 it
mistakenly answered a question “yes”
on an excess profits tax return, there­
by electing to include in net income
interest attributable to government
obligations.
The bank claimed that a Bureau of
Internal Revenue agent accepted its
explanation, changed the “yes” to
“no.” Later, the St. Paul office of the
agency made it “yes” again, and as­
sessed a deficiency against the bank.
The bank asked judgment for the
amount, charging that its claim for a
refund had not been acted upon.—The
End.

61

Xorlli Hakota

XEW S
F. A . F O L EY
President
Rolla

C. C. W ATTA M
S e c re ta ry
Fargo

P ro m o te d a t N o rih w o o d

Add Two Directors

Theo. H. Tufte was elected president
and cashier of the Northwood State
Bank, Northwood, North Dakota, at
the recent annual meeting by the
board of directors. He succeeds Nels
A. Nelson who was elected chairman
of the board.

Two new and additional directors,
A. H. Goehl and Roy A. Holand, were
elected by stockholders of the First
State Bank of LaMoure, North Dakota,
at their annual meeting.
The five old directors were renamed:
Faul Adams, Olive M. Adams, Herman
Goehl, M. J. Lere and C. H. Alin.
Naming of two new directors in­
creased the board from five to seven
directors.
Directors renamed officers as fol­
lows: President, Paul Adams; vice
president, Herman Goehl, and cashier,
C. H. Alin.

A resident of the Northwood vicinity
all of his life, Mr. Tufte has been

T H E O . H. T U F T E
President, N orthw ood State

Bank

employed in a bank at Northwood
since 1920. He was one of the organiz­
ers of the Northwood State Bank in
1931, and since has served as cashier
and director. Since 1931 deposits of
the bank have increased from $160,000
to $3,315,855 as of December 31, 1947.
All other officers were renamed.
They are A. A. Halverson, vice presi­
dent, and E. A. Loe and Judith Jor­
gensen, assistant cashiers.
All directors also were re-elected.
They are Nels A. Nelson, O. T. Stenmo,
Albert Hagen, Henry O. Wickney, Gillis Gulbrandson and Mr. Tufte and
Mr. Halverson.
In addition to his banking duties,
Mt. Tufte is serving as mayor.

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Federal Reserve Bank of St. Louis

and its surplus to $400,000, which with
undivided profits of $80,000 will give it
a capital structure of $880,000, one of
the largest of northwest banks outside
the metropolitan centers.
The board, in addition to re-electing
Fred R. Orth president, renamed the
other officers and added two new offi­
cers, B. P. McDermott and L. S. Bue,
as installment loan officers.

H©Sd Goodrich M e etin g
R. E. Martin, vice president of the
First State Bank of Goodrich, North
Dakota, was re-elected chairman of the
board at the annual meeting. The
other directors include G. Buechler,
who is president of the bank, and
Helen Martin. W. A. Muralt is cashier.

Exchange a t C o le h a rb o r
The First Security Bank of Under­
wood, North Dakota, has opened an
exchange at Coleharbor, with C. Mur­
phy in charge of the exchange. Mr.
Murphy also operates an insurance
and real estate agency in that com­
munity.

New

D ire c to rs

At the annual elections held by
New Director at Langdon
banks in Devils Lake, North Dakota,
G.
S. Goodman was elected a member two new directors were elected by
of the board of directors of the North­ stockholders.
At the First National Bank, Ruth
western Bank of Langdon, North Da­
kota, at the annual stockholders’ meet­ Collinson, wife of President R. C.
ing of the bank. He succeeds the Collinson, was elected to succeed the
late Mrs. H. E. Baird.
late Mark I. Forkner.
W. G. Elmslie was named to the
A. J. Backes and A. O. Aune were
re-elected as directors at the same board of the Ramsey County National
Bank, filling the vacancy left by the
meeting. At the directors’ meeting
which followed, Mr. Aune was re­ late T. A. Haslam.
All other directors and officers of
elected president, Mr. Backes was
elected vice president, Gus Hartman, both institutions were re-elected.
cashier, and Myles Johnson, assistant
cashier. Mr. Forkner was vice presi­ R e c e iv e s C iv ic H o n o r
dent at the time of his death three
F.
B. Heath, president of the Dakota
months ago.
National Bank at Bismarck, North
Dakota, was selected “Boss of the
Election at Grafton
Year” by the Bismarck Junior Cham­
A. C. Idsvoog was re-elected presi­ ber of Commerce. Selected as the
dent of the Grafton National Bank, “Outstanding Young Man of the Year”
Grafton, North Dakota. R. D. Harki- from the Junior Chamber was Lorin
son was promoted to vice president Duemeland, an official of the Patterson
and Hazel Johnson was elected first Land Company, and one of the state’s
assistant cashier. D. M. Upham is the leading young livestock experts.
cashier. Directors are Mr. Idsvoog,
Bank Stock C h a n g e s
Mr. Upham, Martin Monson, Carl
Hvidsten and J. I. Hegge of Hillsboro.
The articles of incorporation for
three banks were amended recently to
V o te S to ck In c re a s e
provide for an increase of common
Stockholders of the First National stock, according to an announcement
Bank in Grand Forks, North Dakota, from R. S. See, chief deputy examiner.
The Citizens State Bank of Neche
voted at their annual meeting to in­
crease the institution’s capital struc­ has increased its stock from $20,000
ture by the sale of additional stock and to $30,000, the Elk Valley State Bank
then re-elected the bank’s ten directors of Larimore boosted its total from
$35,000 to $50,000, and the State Bank
for the ensuing year.
The sale of additional stock will in­ of Streeter’s stock was raised from
crease the bank’s capital to $400,000 $15,000 to $25,000.
N o r t h w e s t e r n B a n k e r, M a r c h , 1948

62

For 92 Years
SOUND RANKING SERVICE

OFFICERS
HERBERT M. BUSHNELL
President

ELLSWORTH MOSER
Executive Vice President

VICTOR B. CALDW ELL.......................Vice President
RICHARD H. M ALLORY.....................Vice President
THOMAS F. M URPHY.........................Vice President
CASPER Y. OFFUTT.............................Vice President
EDW ARD W. LYM AN........................... Vice President
HARRY E. ROGERS.......... .......Asst. Vice President
AUSTIN L. VICKERY............. Asst. Vice President
HAROLD T. UEHLING.... .......................Trust Officer
ARTHUR D. ANDERSON......................

Cashier

JAMES L. SHIELDS.......................Assistant Cashier
NELS L. SHOLIN........................... Assistant Cashier
ELDRIBGE C. M cELHANEY....Asst. Trust Officer
HENRY B. PIERPONT.................Asst. Trust Officer
GEORGE E. W IN SLADE........... Asst. Trust Officer
LEO M. BROWN.......................................... Comptroller

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

63
Waco, doubled its capital, going from
$10,000 to $20,000.

Nebraska

N ew

K e a rn e y

P re sid e n t

John M. Spear, who has been serv­
ing in the dual capacity of vice presi­
dent and cashier of the Fort Kearney
National Bank, Kearney, Nebraska,
was elected president of the bank at
C A R L G . SW A N S O N
a recent meeting. At the same time,
S e c re ta ry
Omaha
Thomas Gass was advanced from
president to chairman of the board of
directors. It was stated in the Febru­
ary issue of the N orthwestern B anker
with a heart ailment. Mr. Gray has that Mr. Gass had been re-elected
been president of the Coleridge Na­ president. The list of directors re­
tional Bank since its founding in 1902 mains unaffected by these two promo­
and has been in continuous service to tions.
the bank and community during the
At the same meeting Tom C. Russell
past 46 years.
was advanced from assistant cashier
to cashier, and J. W. Poynter was
elevated from assistant vice president
R e sig n s a t G ra n t
H.
G. Brainard, who has been with to vice president.
the Farmers National Bank at Grant,
Nebraska, for 21 years, resigned his Farm S c a le M o d el
position as cashier recently and has
A scale model of an 80 acre Ne­
purchased a Motor Motel Court in braska farm showing the details of
Mesa, Arizona.
a complete soil conservation program
Charles Jackman, assistant cashier, was on display in the lobby of the
fills Mr. Brainard’s vacancy. E. E. York State Bank, York, Nebraska, last
Jackman continues as president of month. The exhibit was furnished by
the institution and F. W. Jackman O. J. McDougal, Jr., extension con­
was advanced to be executive vice servationist from the College of Agri­
president.
culture, and was on display for about
The annual report issued shows the a week in York.
Farmers National has capital assets
According to Glen Feather, Con­
of $135,000 and deposits of $3,500,000.
servationist for the local soil conserva­
A new safety deposit vault with 720
tion district, the model displays
modern boxes has just been added to
closely the pattern being developed by
the bank, giving it one of the finest
farmer cooperators of the York dis­
safe deposit vaults in that section of
trict and illustrates some useful prin­
Nebraska.
ciples in conservation planning.

N EW S
J . O . PECK
President
Columbus

N e b ra s k a G ro u p D a te s
Dates for the 1948 group meetings
of the Nebraska Bankers Association
have been announced and, according
to word from the office of Secretary
Carl Swanson, the group trip special
train will make the rounds again of
each meeting with the exception of
the program at Norfolk.
Dates and locations of the meetings
are as follows:
Group 4, Holdrege, April 19th.
Group 6, Alliance, April 20th.
Group 5, Ord, April 21st.
Group 2, Fremont, April 22nd.
Group 3, Norfolk, April 22nd.
Group 1, Lincoln, April 23rd.
Programs for the meetings have not
been announced yet, but will be pub­
lished in the April issue of the N orth­
w ester n

B ank er .

C o m b in e d C o u n ty R e p o rt
A condensed statement of the nine
Dawson County banks was sent out
on post-card forms to a large percent­
age of the population in the county.
The report was sent to 1,700 business
people by the Cozad State Bank, Cozad,
Nebraska, and shows that the com­
bined assets of the nine county banks
totals $18,703,296; combined capital is
$360,000, surplus is $284,000 and de­
posits are $17,878,716.
W. E. Young, vice president of the
Cozad State Bank, believes this is the
first time that such a statement of
Dawson County banks has been pre­
sented to the people in that territory.

N am e A s s is t a n t C a s h ie r
Miss Zora Mae Long was promoted
to the office of assistant cashier at
the Citizens State Bank of Decatur,
Nebraska, according to an announce­
ment from H. C. Larson, cashier. Mr.
Larson also states that the Citizens
State Bank is being completely re­
modeled and modernized and it is
hoped to have the new offices ready
for operation within a short time.

C o le rid g e B a n k e r III
George A. Gray, president of the
Coleridge National Bank, Coleridge,
Nebraska, has been confined to his
home during the past several months

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Federal Reserve Bank of St. Louis

E le c te d D ire c to r

D.
Roger Thuman was elected a di­ R e m o d e lin g D e ca tu r Bank
The Citizens State Bank at Decatur,
rector of the State Bank of Trenton,
Nebraska. His father, A. Thuman, Nebraska, has been undergoing exten­
continues as president and has been sive remodeling, with two additional
managing officer of the State Bank rooms being added to the bank space.
since its establishment over 30 years Both doors are being replaced, tile
ago. Other officers are E. E. Thuman, flooring is being laid, walls and ceil­
vice president; B. G. Shillington, cash­ ings are being painted with a sound­
ier. D. Roger Thuman also is assist­ proof ceiling installed and a new
heating system is also being installed.
ant cashier in the bank.
Fluorescent lighting is expected to
add greatly to the appearance of the
C a p ita l In c r e a s e s
banking interior.
The Farmers and Merchants Na­
tional Bank of West Point, Nebraska,
has increased its common capital stock H e a d s D e n v e r Bank
J. Howard Ferguson, formerly of
from $50,000 to $75,000 by a stock
dividend. Other c a p i t a l increases Guide Rock, Nebraska, and a graduate
among Nebraska banks are as follows: of Nebraska University, was recently
the Security State Bank, Holbrook, elected president of the United States
upped its capital $5,000 for a total of National Bank of Denver. Mr. Fergu­
$25,000; the Auburn State Bank, Au­ son had been connected with banking
burn, increased capital from $25,000 in New York for 20 years and has been
to $50,000; the Commercial Bank, Blue affiliated with the bank in Denver for
Hill, raised its capital the same three years where he had been execu­
amount, from $25,000 to $50,000, and tive vice president before his election
the Farmers and Merchants Bank, to the presidency.
N o r t h w e s t e r n B a n k e r, M a r c h , 1948

64

Nebraska News

N e w C o za d Bank Sign
The Cozad State Bank, Cozad, Ne­
braska, has given its banking edifice
a “new look” by erecting a large neon
sign on the southeast corner of the
bank. The sign extends along the
east and south sides at the top of the
building.

Elg in C h a n g e s
At the annual meeting of the Bank
of Elgin, Elgin, Nebraska, held re­
cently, Ralph S. Chandler was elected
to the board of directors to take the
place of Frank X. Fritz, who resigned
because of ill health.
Miss Estella L. Link was promoted
from cashier to vice president and
Mr. Chandler from assistant cashier
to cashier.
President Geo. A. Wright reported
an increase in deposits of over a quar­
ter million dollars during the past
year.
Frank Horst, 90, pioneer business­
man and former cashier of the First
National Bank, died at his home in
Madison last month after an illness
of several weeks.

O p e n H o u se a t H a s tin g s
An estimated 1,500 people attended
the open house of the Hastings Na­

tional Bank, Hastings, Nebraska, last
month to view the remodeled and ex­
panded building and banking facilities.
The Hastings National recently
rented the structure adjoining its
building and remodeled both, expand­
ing the original floor space almost
double.
Bank employes demonstrated the
various machines used in banking
procedure, including the Recordak
machine which photographs checks.

H. C. Van Horne, a pioneer Pawnee
City banker, as chairman of the board;
M. K. Van Horne as president; C. T.
Barton as vice president and Ronald
Loch as assistant cashier. H. C. Van
Horne is the father of E. N. Van
Horne.
Prior to his election as cashier, John
Van Horne had been serving as a teller
in the First National Bank at Albu­
querque, New Mexico, since his dis­
charge from service.

S p e a k s a t N o rfo lk

H e a d s S tro m sb u rg Bank

Richard W. Trefz, president of the
Beatrice State Bank, Beatrice, Nebras­
ka, and a popular speaker, addressed
the Norfolk Chamber of Commerce at
the regular February luncheon meet­
ing at Hotel Waldorf. He spoke on
the subject, “Looking Forward.”
Within the past year Mr. Trefz has
filled speaking engagements in Mon­
tana, Wyoming, Colorado, Wisconsin,
Indiana and Pennsylvania.

A. W. Kjelson was chosen president
of the First National Bank, which in
June will complete its 69th year of
continuous banking in Stromsburg,
Nebraska.
J. W. Anderson was chosen vice
president; C. G. Rudeen, cashier; and
H. J. Fusby, assistant cashier. Direc­
tors elected were Fred, J. W., and
Ruben Anderson, Rex Nelson, and
Mr. Kjelson.

E le c te d C a s h ie r

N e w S y r a c u s e P re sid e n t

John Van Horne was elected cashier
of the Farmers State Bank, Pawnee
City, Nebraska, at the annual meeting.
He is a son of E. N. Van Horne, presi­
dent of the Federal Farm Land Bank
of Omaha. Other officers elected were

The Une
you cannot see...
Across the middle o f this conti­
nent runs a line you cannot see.
It marks the boundary between
two great, friendly nations and a
new frontier o f opportunity for
American

business. The Royal

Bank o f Canada offers full c o ­

J. R. Mueller, Syracuse attorney,
was elected president of the First Na­
tional Bank of Syracuse, Nebraska, at
an organization meeting recently.
He succeeds E. A. Duff, Nebraska
City, who died recently. Mr. Duff
served as president of the bank for
many years.
Eugene A. Pratt was renamed cash­
ier and Perry Andrews, assistant
cashier.

A u ro ra E le ctio n
The board of directors of the Farm­
ers State Bank, Aurora, Nebraska, met
recently and elected George Wanek
president, replacing Frank Wanek
who has served as president for a
number of years.
Clayton Wanek
was elected cashier, replacing George
Wanek. Mel Hedlund was elected as­
sistant cashier.
Other officers are
Frank Wanek, vice president; Charles
Adams, second vice president, and
J. A. Wanek, director.

operation to correspondent banks
wishing to investigate Canada as

E le c te d S co u t O fficial

a market, source o f supply or area

C. E. Nelson, cashier of the Ameri­
can National Bank of Kimball, Ne­
braska, was among the district chair­
men elected to the Wyo-Braska Scout
Council executive board at the reor­
ganization dinner at Scottsbluff re­
cently.

for business expansion for clients.
Enquiries invited.
HEAD OFFICE — MONTREAL

N ew York A gency

—

68 William St., N e w York 5, N. Y.

BANKS
THE ROYAL BANK OF CANADA
ASSETS

EXCEED

$2,000,000,000

BANK E M P LO Y EES P LA C ED
43 Y e a rs S a tis fa c to ry S e rv ice

CHARLES E. WALTERS CO.
OMAHA,

N o r t h w e s t e r n B a n k e r. M a r c h , 1948


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

Bought and Sold

Confidentially and with becoming dignity

NEBRASKA

I

STOCK YARDS NATIONAL BANK


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

Omaha, Nebraska
M em b er

F e d e ra l

D e p o s it

In su ra n ce

C o rp o ra tio n

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

66

Nebraska News
He succeeds Axel T. Hansen of
Omaha, president for 11 years.
Fred W. Thomas, new president of
the First National Bank of Omaha,
is treasurer of the Society.
Directors of the Northern Natural
Gas Company, with headquarters in
Omaha, recently declared a dividend
of 40 cents a share on common stock.
The dividend is payable March 25 on
stock of record March 5th.

C

HARLES D. SAUNDERS has an­

nounced his resignation as a vice
president and director of the First Na­
tional Bank of Omaha.
Mr. Saunders is vice president of the
Omaha Public Power District Board of
Directors. As chairman of the power
board’s finance committee, Mr. Saun­
ders was responsible for the December,
1946, sale of $42,000,000 in OPPD bonds.
Wall Street observers hailed the sale
as the “deal of the year.”
Mr. Saunders has been an Omaha
civic leader. He was chairman of the
Downtown Ration Board from its or­
ganization until October, 1943 — a
period of 22 months. He also was the
1945-46 president of the Omaha Cham­
ber of Commerce and in 1946 headed
the Christmas Seal sale drive in
Omaha.

A former employe of the Federal
Land Bank of Omaha in the 30’s, Mel
Wettegreen is hoping to be able to
give up his job in Washington for a
permanent place in “Tin Pan Alley.”
Right now he’s working for the Bu­
reau of Ships in the capital.
Mr. Wettegreen and Bill Johnson, a
Washington orchestra leader, received
a couple thousand dollars in royalties
last year from sales of their tune,
“Dontcha Think I Oughta Know?”
Now he’s working on a song,
“ Sonya,” which he has named after
his seven-month-old daughter.
Kenneth G. Harvey, president of the
Douglas County Bank of Omaha in
suburban Benson, has been elected
president of the Nebraska Children’s
Home Society.

AT
YOUR
SERVICE

Miss Dorothy Solomon, daughter of
Mr. and Mrs. E. N. Solomon, was mar­
ried recently at Pearl Methodist
Church in Omaha to Vaughn Hazen.
The bride’s father in an officer of the
First National Bank of Omaha.
Mrs. Josephine Parker Brisbin, 82,

whose father was James Monroe Park­
er, cashier of the first bank established
in Florence, pioneer settlement north
of Omaha which now is included in
the city limits, died recently. She was
born at Florence, which was winter
quarters for the Mormons on their
trek across the country.
The Omaha National Bank’s 20-Year
Club now has 68 members. The most
recent, Miss Katherine Schlager, book­
keeper, was honored at a dinner at
the Blackstone Hotel in Omaha re­
cently. Norman Dudley is president.
Dale Clark, president of the Omaha
National, has been with the bank 28
years. He is entering his twentieth
year as president.
Otis T. Alvison, vice president, is
one of the veteran members of the
Club. He has been with the bank 48
years.
The Club was formed in 1943 for
employes with the bank 20 years or
more.

The First National Bank
St. Joseph, Missouri
G eorge E. P orter, P resident
E. E. Jones, Jr., V ice President
J. D. M cC askey, V ice P resident
Jno. J. W alsh, A ssistant V ice P resident
V. P. M eyer, A ssistant V ice President
W a lter Canter, Cashier
L. A. W alker, A ssistant Cashier
J. M. Ford II, A ssistant Cashier
Graham P orter, A ssistant Cashier

The Omaha National Bank has an­
nounced a new “Year ’Round Thrift
Club.” Under the plan, a customer
goes to the bank’s savings department
and gets a coupon-book in any amount
from 50 cents to $20 a coupon.
Then he or she makes deposits as
often as desired. The bank clips a
coupon from the book when the de­
posit is made. There is no weekly
deposit requirement and no deposit
slip to make out.
After such savings have mounted,
the book-holder can then transfer the
sum to a regular savings account or
can withdraw the entire amount.

Member Federal Deposit Insurance Corporation

Edward Lyman, vice president of
the United States National Bank, has
been elected a new member of the
N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

Nebraska New s
Board of Trustees of the Orthopedic
Association of Omaha, which manages
the Hattie B. Munroe Home for Con­
valescing Children. Mrs. Jasper Hall
and Miss Catherine Ann Coad are
among other new members.
The Live Stock National Bank of
Omaha has announced that Victor W.
Nielsen, discount teller, and Marvin
R. Werve have been elected assistant

V.

W.

N IE L S E N

of the Live Stock National Bank of
Omaha. The bride is the daughter of
Mr. and Mrs. Wray M. Scott of Omaha.
The couple was to be at home at
Morrill, Nebraska, about March 1st,
following an extended motor trip
through the south. They attended
the Mardi Gras in New Orleans.
Arthur L. Coad, president of the
Packers National Bank of Omaha, was
elected treasurer of the Nebraska
Medical Service (Blue Shield Plan) at
the recent annual meeting. E. K.
McDermott is secretary.

67

Ford E. Hovey, former longtime
Omaha banker, was re-elected presi­
dent of the Occidental Building and
Loan Association of Omaha recently.
All other officers also were re-elected
at the annual stockholders’ meeting.
Lyman G. Cross, 59, president of the
Central Securities Company of Omaha
since 1930, suffered a fatal heart attack
while on a vacation at a ranch near
Tucson, Arizona, recently. He was a
past president of the Nebraska Invest­
ment Bankers’ Association. His wife
survives.

M . R. W E R V E

cashiers of the bank. Mr. Werve will
continue as manager of the install­
ment loan department. Other officers
and directors were re-elected at the
annual meeting.
Charles 1). Saunders and Samuel L.
Cooper filed for election as directors

of the Omaha Public Power District.
Mr. Saunders is vice president of the
District and until recently was vice
president of the First National Bank
of Omaha. Mr. Cooper is president of
the Orchard & Wilhelm Company,
furniture retailers, wholesalers and
manufacturers.
Both are completing an appointive
term to which they were named by
former Governer Dwight Griswold in
1945. Mr. Saunders also serves on the
Power Committee, of which Mr. Coop­
er is chairman. Both are also mem­
bers of other committees.
They will be candidates in the pri­
mary election April 13th. Their fil­
ings were made with the Nebraska
Secretary of State.
Mr. Saunders and Mr. Cooper
formed the committe appointed by
the board of OPPD early in 1946 to
negotiate the purchase of the Ne­
braska Power Company.
Miss Elizabeth Jean Scott and
Charles Tiffany Karpf were married

recently at the First Presbyterian
Church in Omaha. The bridegroom
is the son of Mr. and Mrs. Henry C.
Karpf. Henry C. Karpf is president

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-

AWAIT

YOU

OM AHA


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Federal Reserve Bank of St. Louis

CITY

NATIONAL

Y o u , our corresp on d en t banker, are used
to d oin g business at you r ow n desk, in y ou r ow n o ffice , w ith
the service o f a secretary, and a telephon e at you r e lb ow .
T o make you feel at h om e w hen y o u ’ re
here in K ansas City on business, City N ational is glad to m ake
these very same facilities available to y ou — plus free park in g in
our garage, day and night, con tin u ou sly for 48 hours. N u m erou s
private con feren ce room s are alw ays at y ou r disposal— and w e
think y o u ’ ll en jo y the brand -new, co m fo rta b le furniture!
F o r y ou r added con ven ien ce, our beautiful
new b u ildin g is directly across the street fro m the
Federal R eserve and all financial agen cies o f the
govern m en t.

Come in and make yourself at home, won’ t you?

YOUR STATE BANKERS ASSO CIATIO N
O FFIC IA L SAFE, V A U L T AN D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

AT

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Resources Oser $140,000,000
N o r t h w e s t e r n B a n ke r, M a r c h , 7948

68

Nebraska News

Directors and officers of the North
Side Bank of Omaha were elected at
the annual meeting recently. W. B.
Roberts was elected a director at a
shareholders’ meeting and then was
chosen president of the bank. Other
directors are Fred W. Thomas, John
F. Davis, John Lauritzen and L. Dale
Matthews. Mr. Matthews recently was
elected vice president and cashier to
succeed Robert Hall, resigned. Don
W. Ryan is assistant vice president.
Richard Haeder of Wolsey, South
Dakota, has been named a new mem­
ber of the Farm Credit Association
Board, with headquarters at Omaha.
L. E. Laird of Worland, Wyoming, is
chairman of the board. Mr. Haeder
farms 480 acres and was president of
the first voluntary soil conservation
district in the United States. His farm
was featured in a recent Saturday
Evening Post article.

E. N. Solomon of the First National
Bank of Omaha was a speaker recent­
ly at a meeting of the Omaha Associa­
tion of Credit Men at the Rome Hotel.
Herbert Meile was chairman.

Omaha banks generally are joining
in the voluntary campaign of the
American Bankers’ Association to curb
inflation by avoiding excessive or in­
flationary increases in the use of bank
credit.
However, one Omaha banker was
fearful lest the campaign carry with
it the force of dictating where funds
should be loaned. He believes the
public should dictate what it wants
to buy.
The ABA carried its program to the
15,000 member banks at a series of
regional meetings.
Stephen Wirtz of the Omaha Na­
tional Bank served as a division major

G a r iU n e s ita l —

Continental Service . . .
is adapted to your
particular needs.

Q )N T I NENTAL^ |S|ATIONAL

BA/ K
L IN C O L N
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

in the Omaha Y.M.C.A. drive to raise
$598,000 for an expansion program.
Mr. and Mrs. Dale Clark have re­
turned from a short stay in Los
Angeles
and Phoenix, Arizona. In
California, they visited Mrs. Clark’s
brother and sister-in-law, Mr. and Mrs.
Fred Johnston. Mr. Clark is presi­
dent of the Omaha National Bank.

The Farm Credit Board of Omaha
has re-elected all Farm Credit Admin­
G. Kraschel,
istrationofficers. N.
former Governor of Iowa, was reap­
pointed FCA general agent at Omaha.
E. N.
Yran Horne was re-elected
president of the Federal Land Bank of
Omaha. M. E. Welsh, Jr., was re­
elected president of the Federal Inter­
mediate Credit Bank of Omaha and
given the additional duties of treas­
urer. E. J. Petrik was re-elected
president of the Production Credit Cor­
poration and T. F. Tobin was re­
elected president of the Bank for CoOperatives.
Those $20 gold pieces the Govern­
ment called in some time ago contain
an ounce of the precious metal. It
brings $36 an ounce, but banks pay
only face value.
There have been reports that the
coins bring nearer their actual gold
value when disposed of in other chan­
nels. Bankers estimate that there is
still a fair supply of gold coins in hid­
ing. They look for no “opening of the
sock” until times really get hard.
President Ray R. Ridge of the
Omaha Chamber of Commerce, who is
vice president of the Omaha National
Bank, recently issued a statement,
praising the Omaha Real Estate
Board’s part in the civic effort which
obtained for Omaha the $10,000,000
Veterans’ Hospital. Construction of
the hospital starts soon.
Mr. Ridge reviewed the five-year
effort which brought the Hospital to
Omaha.—The End.

Nebraska News
the surplus of the state’s 383 state
banks in 1947 was converted into ad­
ditions to the capital structures of the
banks. The conversions were dis­
closed by the statements reaching the
banking department in response to a
call for statements showing the con­
dition of business as of December 31st.
The gains aggregated $1,716,500, boost­
ing the total capital to $20,582,563.

69

With the exception of cash, and the
U. S. government account, all depart­
ments of the banks showed gains in
1947 over the previous year. The gov­
ernment account was down because of
withdrawals amounting to $3,913,328.
Cash on hand was shown as $3,092,284,
virtually all of the drop in that ac­
count coming during the last three
months of the year.

INCOLN Clearing House banks at
the close of business January 31st,
L
continued to show business on the in­
crease in the Nebraska capital city, in
1948, compared to 1947. January clear­
ings were better than 2% million dol­
lars above the same month in 1947
at a total of $31,721,358. Compared to
the last month of 1947, January, not­
withstanding a heavy holiday business
in December, was the larger by $1,401,051.
Lincoln has lost one of its most out­
standing and popular young bankers.
Milton F. Barlow, assistant secretary
of the First Trust Company, left on
March 1st for Kansas City, Missouri,
where he is now vice president and
trust officer of the Jackson County
National Bank and Trust Company.
Associated with the First Trust Com­
pany for more than eight years. Mr.
Barlow came to Lincoln from Man­
kato, Minnesota, to which city he had
gone from Omaha, where he had been
assistant cashier of the U. S. National
Bank, which was founded by his fa­
ther, Milton T. Barlow. The elder Barlow was president of the U. S. National
for many years.
President of the American Institute
of Banking in 1937-1938 Milton junior
was the youngest person ever elected
to that position. He will be joined by
Mrs. Barlow and their three children
as soon as living quarters are avail­
able.

When your correspondent in Lincoln is the
First National, the services offered are tailored
to meet your needs.
We gladly share our experience with you, if at
times you wish suggestions on certain banking
procedure. On this basis we invite your cor­
respondent business.

THE FIRST NATIONAL BANK OF LINCOLN

J. F. McLain, director of the Ne­
braska department of banking, has
announced that a sizable portion of

N A T IO N A L

BANK

B U IL D IN G

1948

Member Federal Deposit Insurance Corporation

Did you know that this company has specialized
in Bank Insurance since 1919— that it has the inside
view on Bank Insurance problems? Consult
us freely at any time.
F IR S T

LINCOLN, NEBRASKA

1871

*

C H IC A G O

Scarborough & Company
Insurance Counselors
3,

IL L IN O IS

STATE

to Banks

43 2 5

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Federal Reserve Bank of St. Louis

I

70

Nebraska News

The statements did not reveal what
was responsible for the declines. How­
ever, opinion was to the effect that the
money was used for the purchase of
feeder cattle. Rufus Howard, state
director of agriculture, “conservative­
ly” estimated that 200,000 cattle went
into the state’s feed yards during th e'
final quarter of 1947, at a cost approxi­
mating $30,000,000.
Purchases of U. S. savings bonds by
Nebraskans in January this year, ex­
ceeded December, 1947 buying by
million dollars. A large part of the
total purchases were made through
the banks, it was reported. The total
purchase of series E bonds totaled $7,736,770. Series F and G purchases
amounted to $5,506,947. Purchases of
E bonds in Lincoln were $146,336.25,
and for Lancaster county outside of
Lincoln, $785,406.25. Series F and G
bonds purchased in Lincoln aggre­
gated $97,014, and $1,180,416.50 in the
county.—The End.

Changes at Blair
John F. Davis of Omaha, former
resident of Blair, was named presi­
dent of the Washington County Bank
of Blair, Nebraska, at a recent direc­
tors’ meeting. He succeeds Charles
D. Saunders, also of Omaha.
Mr. Davis is also vice president of
the First National Bank of Omaha.
Added to the local bank’s board of
directors were Stanley J. Bednar of
Blair and John Lauritzen, assistant
vice president of the First National
Bank of Omaha, formerly of Blair.
George T. Hedelund remains as vice
president of the Blair institution, Mr.
Bednar as cashier and Earl Jenkins
as assistant cashier.

Elected Cashier
A. Ray Kuhlman was elected cash­
ier of the First National Bank of
Scribner, Nebraska, at the annual
stockholders meeting, succeeding Her­

bert Bose who has disposed of his
interests in the institution and with­
drawn as one of its officers. There
was no other change made in the
officers or directors of the bank.

Two New Directors
Stockholders of The Tilden Bank
held their annual meeting in Tilden,
Nebraska, recently, and named to the
board of directors, in addition to the
present members, two new directors.
Dean R. Hales, who has been as­
sociated with the bank for the past
twelve years and who was named
cashier recently, was elected to the
board as also was W. W. Putney of
Lincoln, Nebraska.
Mr. Putney was born in Tilden. He
is president of the Midwest Life In­
surance Company and a member of
the board of directors of the Continent­
al National Bank, the Lincoln Tele­
phone and Telegraph Company and
the Standard Reliance Insurance Com­
pany in Lincoln.

FIELD WAREHOUSE RECEIPTS
Heads Clearinghouse

by

WILLIAM H. BANKS WAREHOUSES, INC.
PROVIDE:
SAFETY for your BANK LOANS;
THIRD PARTY CONTROL of PLEDGED Merchandise;
Definite DESCRIPTION of the COMMODITY stored.
ALL ADEQUATELY BONDED.
Many of your customers have INVENTORIES, which, when
represented by Proper WAREHOUSE RECEIPTS, give your bank
PREFERRED COLLATERAL for your bank loans.

William C. Connett, executive vice
president of the First National Bank
in St. Louis, has been elected president
of the St. Louis Clearinghouse Asso­
ciation. Harold T. Jolley, president
of Boatmen’s National Bank, was
elected vice president. Mr. Connett
succeeds William J. Bramman, execu­
tive vice president of the Mississippi
Valley Trust Company. R. R. Tillay
was re-elected manager.

Write or telephone us today for complete details.

William H. Banks Warehouses, Inc.
G e n e r a l Offices:

209 S. LA SALLE STREET
CHICAGO, ILLINOIS
Telephones: State 0204-0205
Div is io n Offices:
O G DEN , UTAH
★
F A Y E TTEV IL LE , ARK.

DES MOINES, IO W A
★
W E S L A C O , TE XAS
A

Q Q Q

Whenever your customers need facts
about local or foreign business...markets
...trends...call on Continental. Finding
dependable answ ers is part o f our effec­
tive, overall correspondent service.

The CONTI N E NTAL -£
BANK

& TRUST

COMPANY

o f NEW YORK

3 0 Broad Street,New York 1!5,N.Y.

M EM B ER FEDERAL D E PO SIT INSURANCE C OR POR A TION

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

★

A N G O L A , INDIANA
ST. LOUIS. MO.

Receives Award
Cummins Business Machines Corpo­
ration of Chicago has been added to
the honor roll of business firms
throughout the United States selected
by the Brand Names Foundation to
receive the “Certificate of Public Serv­
ice” for the 50 years its brand name
“Cummins” has “held public confi­
dence through unfailing integrity, re­
liable quality and fair pricing.”
The coveted award was presented to
Paul Jones, president of Cummins
Business Machines Corporation, at a
dinner at the Chicago Club.
Only brand names which have been
in continuous use for 50 years or more
qualify for the award, which was cre­
ated by the Foundation to recognize
the proven value of brand names in
their service to consumers.
Cummins Business Machines Corpo­
ration was founded in 1887 by B. F.
Cummins. The company was origi­
nally known as the B. F. Cummins
Company and later as Cummins Per-

Nebraska New s
forator. At that time the chief product
manufactured was perforators. The
company now manufactures electric
perforators, endorsers, check signers
and other business machines. Cum­
mins Portable Tools, a subsidiary, man­
ufactures a line of portable electric
drills.

71

1946 figure and reached an all-time
high, according to Frank H. Schmidt,
executive vice president.
“Over $62,300,000 in new business
was obtained, compared with $36,484,000 in 1946,” Mr. Schmidt said, “indi­
cating an increasing interest by the
public in wills and corporate trust
services.”

50 years of service with the First
National Bank of Omaha, where he
was the ranking officer in years of
service. He was elected an officer of
the bank in January, 1921.
Mr. Jepsen is survived by his wife,
Lillian Christenson Jepsen; three sons,
Howard E., Herschel L., Paul H.; three
brothers, John, Fred and Richard; one
sister, Jeanette Jepsen, and nine grand­
children, all of Omaha.
Pallbearers at the services in Omaha
were officers of the First National
Bank.

Guaranty Trust Dividend
The board of directors of the Guar­
anty Trust Company of New York has
declared a quarterly dividend of $3
per share on the capital stock of the
company for the quarter ending March
31, 1948, payable on April 1st to stock­
holders of record at the close of busi­
ness March 10th.

Coast Bank Hits Peak
California Trust Company’s total
1947 volume of new wills and trust
business was 70 per cent above the

Paul Jones, righ t, president o f
Cummins Business M achines Cor­
poration, receiv es aw ard from Henry
E. Abt, president o f Brand Names
F oundation.

The presentation was one of the
highlights of a Brand Names meeting,
at which leading industrialists, busi­
ness, and advertising executives re­
viewed ways to foster public under­
standing of the services rendered by
America’s brand names.
The citation describing the long his­
tory of responsible service to the pub­
lic by the brand name “Cummins” was
made by Henry E. Abt, president of
Brand Names Foundation.

Citizens Honor Banker
On completion last month of his 30
years of association with the French­
man Valley Bank, Palisade, Nebraska,
Arlie J. Baxter, president, was hon­
ored at an informal party in his home
by many friends and business people
in the Palisade community.
The Baxter home was decorated
with beautiful flowers from the fam­
ily’s four children and banker friends.
Mr. Baxter began his employment
in the Frenchman Valley Bank Febru­
ary 1, 1918, as “custodian of the
broom,” as he likes to refer to the
duties of his first job. Two years later
he was elected assistant cashier,
moved up to the cashier’s post in 1929
and became president of the bank in
February, 1946.

Edw ard F. Jepsen
Edward F. Jepsen, 68, assistant cash­
ier of the First National Bank of
Omaha, passed away at his home in
Omaha late last month. Mr. Jepsen
was born in Omaha January 16, 1880,
and had resided in Omaha all his life.
In two years he would have completed

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Federal Reserve Bank of St. Louis

Special Attention given
to Accounts from Banks
★

Harris Trust and Savings Bank
Organized as N. W . Harris & Co. 1882 • Incorporated 1907
115 W est Monroe Street, Chicago 90
Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

72

H . H . E c h te r m e y e r ,
V i c e P resid en t o f
L ive S to ck N a tion a l B a n k

Meet Our Traveling

"AMBASSADOR OF BANKS rr
W ithin the family at Live Stock National,
one of our officers, Herbert H Echtermeyer,
Vice President, has the unofficial title of our
traveling "ambassador of banks.” That’ s be­
cause he’g our field representative to more
than 400 correspondent banks we now
serve.
His brief-case office brings you latest in­
formation on our livestock financing facili­
ties, 24-hour transit service and the many
other correspondent facilities available at
The Bank of Friendly 24-Hour Service.

W ith more than 25 years experience in
all phases of banking, Herb is another of
our officers who came up through the ranks
at Live Stock National. His travels put our
complete correspondent banking facilities
on an "across the desk” availability to more
than 400 banks in the Great Plains and
Rocky Mountain area. A call or a letter will
put our traveling "ambassador of banks”
and a better correspondent banking service
to work for you, too!

S T O C K ‘- B A N K
A

OF

H

A

N E B R A S K A

FRIENDLY

24 - H O U R

SERVICE

Federal Reserve and 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 , 1948


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Federal Reserve Bank of St. Louis

73
the dinner held in the Rotary club
rooms of Story Hotel.
Don Reed of Des Moines, executive
secretary of the Iowa Press Associa­
tion, was guest speaker.

Iowa

N EW S
W. W. BLASIER
President
Jesup

Osage Bank Promotions
A. T. Altick, president of the Osage
Farmers National Bank, Osage, Iowa,
has announced the promotion of two
members of the bank’s staff.
Ewald A. Heiden, former cashier,
has been named executive vice presi­
dent. He has served in the capacity of
cashier since he joined the staff of the
Osage Farmers Bank in 1937. Mr.
Heiden has had many years of con­
tinuous banking experience, having
served as bank receiver at Sheldon,
Spirit Lake, and Sioux City. Prior to
that time he was associated with the
First National Bank at Sheldon, as
well as the Sheldon Savings Bank.
Clifford P. Moss has been promoted
to the position formerly held by Mr.
Heiden. Mr. Moss served as Mitchell
county auditor before taking up his
duties as assistant cashier at the bank,
a position which he has held for the
past 10 years, except for 4 years’ leave
of absence to serve in the armed
forces.

Mitchell County

FRANK WARNER
Secretary
Des Moines

ciation, called the meeting to order,
then turned the meeting over to R. B.
Clift, president of the Alden State
Bank of Alden, who had charge of the
program.
Speakers were E. W. Jones, vice
president of the Iowa-Des Moines Na­
tional Bank, Des Moines, and H. S.
Lekwa, vice president and cashier of
the Ackley State Bank, Ackley.
Others called on for reports were
Elmer Ringen, executive vice presi­
dent of the Citizens State Bank, Iowa
Falls; F. A. Rummell, president of the
Williams Savings Bank, Williams; J.
L. Rummell, vice president of the
Iowa Falls State Bank, Iowa Falls,
and V. H. Reid, president of the Secu­
rity State Bank, Hubbard.
Also called on for remarks were
Robert D. Dixon, cashier of the Farm­
ers State Bank, Stratford and presi­
dent of the Hamilton County Bankers
Association, and Everett M. Griffith,
vice president of the Iowa-Des Moines
National Bank, Des Moines.

Story County

County Bank Elections
Reports on five Iowa County Bank­
ers Associations’ annual meetings and
elections are as follows:

Cerro Gordo County
H. L. Young, Des Moines; Douglas G.
Swale, executive vice president of the
First National Bank in Mason City,
and Jim Wagner, manager of Mason
City’s municipal airport, were speak­
ers on the program of the Cerro Gordo
County Bankers Association’s annual
meeting held at Hotel Hanford in
Mason City recently.
Roy B. Johnson, assistant vice presi­
dent, First National Bank, Mason City,
was elected president of the Associa­
tion; Lynn Sherman, cashier, Clear
Lake Bank and Trust Company, was
chosen vice president, and Howard
Stewart, assistant cashier, United
Home Bank and Trust Company, Ma­
son City, was named secretary-treas­
urer.

Hardin County
The Hardin County Bankers Asso­
ciation met in the school gym at Hub­
bard. Dinner was served to 30 bank­
ers by the Hubbard Band mothers.
Ben Jaspers, president of the asso­

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Federal Reserve Bank of St. Louis

Edwin Hauge, vice president, Story
County State Bank of Story City, was
elected president of the Story County
Bankers Association at the annual
meeting held recently in Nevada. Mr.
Hauge had been vice president of the
organization.
Chris Budlfson, assistant cashier,
College Savings Bank of Ames, who
had been secretary-treasurer, was
elected vice president, and Chas. W.
Yeager was elected secretary-treas­
urer.
Dan Peters, cashier, Maxwell State
Bank of Maxwell, is the retiring presi­
dent of the Story County Bankers
Association.
Around 80 bankers, bank directors
and office staffs were in attendance at

Iowa Group Meetings
1948

May
May
May
May
May
May
May
May

10 . Group 8
11 Group 10
12 Group 6
13 . Group 5
25 Group 2
26 Group 3
27 Group 7
28 Group 4

Clinton
Oskaloosa
Perry
Council Bluffs
Estherville
Charles City
Vinton
Waukon

The Mitchell County Bankers Asso­
ciation met in Osage, Iowa, recently
for their annual meeting.
G. F. Thorkelson of Austin, Minne­
sota, representing Doane’s Agricul­
tural Service, talked on “Farm Conditions and the Farm Outlook.” John
Halverson of Austin was a visitor.
This was the annual meeting and
new officers were elected. Clifford
Moss, asisstant cashier, Osage Farmers
National Bank, Osage, was named
president and G. H. Parkhurst of Mit­
chell, secretary-treasurer.

Pocahontas County
Guy G. Butler has been elected presi­
dent of the Pocahontas County Bank­
ers Association, succeeding H. O. Beneke of Palmer. A. M. Kuhl of Fonda
was elected vice president and Alfred
Miller of Pocahontas secretary-treas­
urer.

Open Pulaski Office
The State Savings Bank of Cantril,
Iowa, was authorized last month by
the state department of banking to
open an office in Pulaski, according to
word received from H. D. Koenecke,
cashier of the State Savings Bank.

Annual Party

Correspondent bankers of the First
National Bank of Mason City, Iowa,
were entertained at the annual stag
party given by the First National last
month. Officers and directors of the
banks were guests at a bowling meet
and dinner and went on an industrial
tour through the Northwestern States
Portland Cement Company plant in
Mason City. The 60 bankers met at
Hotel Hanford for dinner where W.
Earl Hall, managing editor of the
Globe-Gazette, was the speaker.

Elected Vice President
T. L. Vinyard has been promoted
from assistant vice president and man­
ager of the installment loan depart­
ment of the First Trust and Savings
Bank, Davenport, Iowa, to be a vice
president, it was announced by Harold
R. Bechtel, president, following a
meeting of the board of directors.
In his new position Mr. Vinyard will
devote his tirhe to general banking.
Frank A. Johnson is also a vice
president of the First Trust Bank and
will, .continue to hold his same duties
and responsibilities.
Carl E. Rylander, for the past AV<¿
years manager of the farm service de­
partment at the First Trust and Sav­
ings Bank, has resigned his position.
N o r t h w e s t e r n B a n ke r, M a r c h , 1948

74

Iowa News

Ferd E. Skola, president Farm ers Savings Bank,
K alona, Io w a ; J. Forrest Embree, v ice president Se­
cu rity State Bank, K eota , Io w a ; Harold J. Stowell,
cashier S ecu rity State Bank, K e o ta ; and Everett
Griffith, v ice president Iow a-D es M oines N a tion a l Bank.

T

h

e

i ì r o

u

p

M

e

e

t i n

William Poz, N ational C orporation, Des M oin es; S. T.
Egertson, Federal R eserve B ank represen tative, Estherville, Iow a ; L. L. Patton, president Cleghorn S tate Bank,
Cleghorn, Io w a ; and G. E. Wilson, president Cherokee
State B ank, Cherokee, Iow a.

g

s

Groups One and Eleven Hold
Annual Meetings in Sioux City and Burlington
attendance was registered
at both of the February Group
RECORD
Meetings of the Iowa Bankers
Association. At Sioux City, for the
Group One meeting, the total was 620,
reported to be a record. In addition to
those registered from Iowa, t h e r e
were many bankers from South Da­
kota and Nebraska who took advan­
tage of the Lincoln’s Birthday holiday
to meet with their good neighbors in
Iowa. Seemingly growing larger each
year, the Group One meeting is be­
ginning to tax the luncheon and ban­
quet facilities of any one Sioux City
hotel, and the affair has now reached

Fred D. Cummings, assistant
cashier D rovers N ation al Bank,
C h ica go; and Stan W. Evans,
L iv e S to ck N ation al Bank, Sioux
C ity, Iow a.

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

the proportions of a young Iowa Bank­
ers convention.
Although it has never drawn the
crowds registered at Sioux City meet­
ings, Group Eleven this year had an
attendance approaching 300, which is
considered large compared to past
gatherings. The program for t h e
Group Eleven meeting continues to
be the brain child of Ed Ebersole, of
Keokuk, and this year was in red,
white, and blue pass-book style, a
work of art and satire, and prepared
with the cooperation of Carl Mayle,
Todd Company, whose company sup­
plied the stock and did the printing.

The red carnations at Burlington were
again pinned on with the compliments
of the Hanna-Kramer Company.
W. W. Blasier, president of the Iowa
Bankers Association; Frank Warner,
secretary of the Association; and N.
P. Black, I o w a superintendent of
banking, were present and spoke at
both meetings. Principal guest speak­
er at Sioux City was R. F. Patterson,
dean of the school of business admin­
istration of the University of South
Dakota, and headliner at Burlington
was Arthur R. Upgren, professor of
economics at the University of Minne(Turn to page 76, please)

Thomas J. Thornton, Citizens State Bank, Donnellson, Io w a ; M. G. Addicks, v ice president and cashier,
C itizens’ State Bank, D onn ellson; Robert Lough, v ice
president D rovers N ational Bank, C h icago; and Charles
H. Beck, assistant cashier, Iow a State Bank, M orning
Sun, Iow a.

A T B U R L IN G T O N — Betty
Welch, o f the H anna-K ram er
Com pany, B u rlington , Iow a,
pins a red carnation on Dale
C. Smith, assistant cashier o f
the Central N ational Bank,
Des M oines.

Iowa News

W. E. Brockman, v ice president M idland N ational Bank, M in neap olis;
Richard C. Schall, m anager Held w arehousing division St. Paul Term inal
W arehouse Com pany, St. P a u l; and James H. Moore, v ice president
Omaha N ational Bank, Omaha.

E. O. Thomas, cashier Lee County Savings
Bank, Ft. M adison, Io w a ; M. F. McFarland, v ice
president L ee County Savings B a n k ; and E. A.
Ebersole, v ice president and cashier State Cen­
tral Savings Bank, K eok u k , Iow a.

Frank Fuchs, vice president F irst N ation al Bank, St.
L o u is; William H. Miller, v ice president C ity N ational
Bank, C h ica go; J. M. Hutchinson, execu tiv e v ice p resi­
dent D a ven p ort Bank and Trust Com pany, D avenport,
Io w a ; and Charles L, Bosier, v ice president B urlington
Savings Bank, B u rlin gton , Iow a.

T. R. Bichardson, assistant cashier Mediapolis Savings
Bank, M ediapolis, Io w a ; Fhilo J. Beattie, Grandview, Iowa;
and V. Z. Breneman, cashier Farm ers State Bank, .New

E. R. Manuel, assistant cashier George State Bank, George,
Iowa:; E. E. Manuel, president G eorge State Bank, G eorge;
and B. M. Wheelock, vice president S ecu rity N ational Bank,
Sioux C ity, Iow a.

Carl Bloom, assistant cashier F irst N ational Bank, Omaha,
N ebraska; and B. J. McCartney, U nited States Check B ook
Com pany, Sioux Falls, South D akota.


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Federal Reserve Bank of St. Louis

London, Iow a.

N o r t h w e s t e r n B a n ke r, M a r c h , 1948

76

Iowa News

sota, both of whom spoke on inflation,
and the dangers thereof.
Officers and representatives of many
large city banks attended both meet­
ings, including several from New
York, Chicago, St. Louis, Minneapolis,
Omaha, and Sioux Falls.

from $100,000 to $150,000 by sale of an
additional $50,000 of common stock.
The Hardin County Savings Bank of
Eldora sold $25,000 of preferred stock
to place its capital at $100,000.
Payment of a stock dividend doubled
the capital of the Cedar Falls Trust
and Savings Bank from $50,000 to
$100,000

Capital Increases
The Iowa department of banking
has authorized capital increases in
four additional state banks, according
to an announcement from S. H. Red­
man, assistant to State Superintendent
Newton P. Black.
The Security Savings Bank of Mar­
shalltown increased its capital stock

★

★

The Gilbertville Savings Bank of
Gilbertville also doubled its stock, the
stock dividend raising the total from
$15,000 to $30,000.

Renews Charter
The First State Bank at Britt, Iowa,
recently renewed its charter with the
state. The original charter was signed

★

Extra Care For Your Business
The First National Bank in Sioux City bends over
backward to give PLUS service to business that
comes from a distance. It therefore treats out-of-town
items with EXTRA care and consideration. This is
the type of service your correspondent bank business
receives at the First National.
We can serve you well in Sioux City.

A. G. SAM, President
J. T. Grant, Vice President

H. H. Strifert, Assistant Cashier

J. R. Graning, Cashier

K. J. Shannon, Assistant Cashier

E. A. Johnson, Assistant Cashier

J. Ford Wheeler, Auditor

V in a t NATIONAL
BANK
in SIOUX CITY

MEMBER FEDERAL RESERVE SYSTEM
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 , 1948


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Federal Reserve Bank of St. Louis

★

★

20 years ago when the bank opened
with capital of $25,000, surplus of $10,000 and undivided profits of $2,500. On
the renewal date this year, the First
State Bank’s capital was $50,000, sur­
plus was $75,000 and undivided profits
and reserves were $85,000 with depos­
its totaling $3,835,000.
At the recent annual election officers
and directors named were: Y. D.
Koons, president; James Kent and C.
W. Botsford, vice presidents; F. D.
Reibsamen, cashier; E. G. Bartik,
James L. Huygens and Blanche L. An­
derson, assistant cashiers, and George
Kotthoff, a director along with the
first four named officers. The bank
also maintains offices at Corwith and
Woden.

Bank Auditors Meet
The Iowa Association of Bank Audi­
tors and Comptrollers held its 23rd
quarterly meeting last month. The
dinner-meeting was held at the Roose­
velt Hotel in Cedar Rapids.
The highlight of the meeting was
the panel discussion on the subject
“ Iowa ‘Schedule’ Suggested for De­
stroying Old and Obselete Bank Rec­
ords and Files.” The “Committee on
‘Destruction List’ of Bank Forms” of
the Iowa Bankers Association pro­
vided the panel. E. H. Spetman, chair­
man of that committee, and vice presi­
dent and cashier of the Council Bluffs
Savings Bank, was leader. Two other
members of that committee aided him.
They were F. C. Atkins, vice chairman
of the committee, vice president and
cashier, Bankers Trust Company, Des
Moines; and R. L. Carson, member of
the committee, comptroller, Iowa-Des
Moines National Bank, Des Moines.
Other speakers who added much to
the interest of the program were L. W.
Stritesky, president of the Cedar
Rapids Clearing House Association,
assistant cashier of the First Trust
and Savings Bank, Cedar Rapids; W.
P. Ronan, vice president of the Iowa
Association of Bank Auditors and
Comptrollers, vice president of the
Decorah State Bank; W. W. Blasier,
president of the Iowa Bankers Asso­
ciation, president of the Farmers State
Bank, Jesup; Harold N. Bean, state
vice president of the National Asso­
ciation of Bank Auditors and Comp­
trollers, auditor of the Citizens Na­
tional Bank, Boone; and Louis Martin,
member of the board of the Iowa Asso­
ciation of Bank Auditors and CompYOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

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77

Y O U R DES M OIN ES
C O R R E SP O N D E N T
BUSINESS IS
A P P R E C IA T E D A T
TH E V A L L E Y B A N K

VALLEY BANK A N D TR U ST C O M P A N Y
DES MOINES

75th
MEMBER F ED ER A L DEPOSIT IN S U R A N C E C O R P O R A T IO N


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Federal Reserve Bank of St. Louis

A N N IV E R S A R Y
YEAR
N o r t h w e s t e r n B a n ke r. M a r c h , 1948

78

Iowa News

trailers, cashier of the First Trust and
Savings Bank, Davenport, who re­
ported plans for the next quarterly
meeting which is scheduled to come in
April, 1948, the exact date yet to be
chosen.

was Samuel E. Miller, prominent
Keokuk attorney, who was succeeded
through the years by E. H. Harrison,
James F. Cox, Arthur Hosmer, Judge
William Logan, and the latter’s grand­
son, W. A. Logan, who is now presi­
dent. E. A. Ebersole is vice president
and cashier of the State Central Sav­
ings Bank.
For a time the bank held a national
charter but when it expired in 1885,
the officers drew up a state charter,
then in 1890 the bank was given the
name it now operates under today.

Now in 90th Year
The State Central Savings Bank of
Keokuk, Iowa, is now in its 90th year
of operation. The bank dates back to
October 12, 1858, when Governor
Ralph C. Lowe issued a proclamation
establishing the Keokuk branch of the
State Bank of Iowa.
This was 12 years after Iowa became
a state and when Keokuk was but 11
years of civic age. The first president

Dubuque, Iowa, recently, after a short
illness. He was a director of the State
Bank of Worthington, since it was or­
ganized in 1937, and held that position
continuously until his death. He was
also the father of George N. Feltes and
Frances M. Feltes, vice president and
cashier, respectively, of that institu­
tion. He was survived by three sons
and three daughters.

Changes at Guaranty Bank

Reginald B. Figge last month an­
nounced his resignation as vice presi­
dent and member of the board of the
N. J. Faltes
Guaranty Bank and Trust Company at
N.
J. Feltes, of Worthington, Iowa, Cedar Rapids, Iowa. He will join John
died in St. Joseph’s Mercy Hospital at S. Vavra in the investment business in
Cedar Rapids.
Milo G. Blahnik has been named
cashier of the bank.
Mr. Blahnik, who started his career
as a messenger with the Guaranty
bank in 1934, also was named to the
board of directors, as was John W.
Beck. Mr. Blahnik has been an assist­
ant cashier.
The board of directors also an­
nounced the resignation of another
assistant cashier, E. J. Distelhorst, and
the appointment of Mrs. Gladyce Chiverton
as trust officer. She had been
experience combined with
assistant trust officer.

Experienced
Service
J'JT'ith years

of

,

personal knowledge

of

the

requirements

of

correspondent banks, we are in a position to
give the desired service for your business in
Sioux City.

O F F IC E R S
CHARLES R. GOSSETT, President
B. M. WHEELOCK, Vice Pres.

ROBERT W . LEWIS, Asst. Cashier

ALBERT C. ECKERT, Vice Pres.

FRANK H. ABEL, Asst. Cashier

DANIEL B. SEVERSON, Vice Pres.

CHARLES H. WALCOTT, Asst. Cash.

R. EARL BROWN, Cashier

ORVILLE BOE, Asst. Cashier

T R U S T O F F IC E R S
HOWARD L. JOHNSON, Trust Officer
D. W . JURGEMEYER, Assistant Trust Officer

x NATIONAL RA NK

Cashier Married
Muriel Goslin, cashier of the First
State Bank in Battle Creek, Iowa, was
married recently to Wendell A Bertelsen of Battle Creek. The wedding
ceremony took place in Clarion, the
bride’s home.
Mrs. Bartelsen has been cashier at
the bank for several years and her
husband has been engaged in farming
since his return from the marine
corps.

State Deposits Up
Iowa’s national banks and state
chartered banks had $2,389,626,000 in
deposits at the end of 1947, setting a
new record.
Deposits in the 96 national banks
were $782,442,000, the comptroller of
the currency announced in Washing­
ton, D. C. Deposits in the 558 state
banks were $1,607,184,000 at the end of
the year, N. P. Black, Iowa superin­
tendent of banking, announced.

Elect New Director

M e m b e r F e d e ra l D e p o s it In su ra n ce C o rp o ra tio n

N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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

Roy Allbaugh was elected to the
board of directors of the Security Sav­
ings Bank, Eagle Grove, Iowa, at its
annual meeting. He will succeed to
the place of the late Ward Barnes who
was director of the bank for a number
of years.

Iowa News
president; M. B. Guthrie, vice presi­
dent and cashier; M. E. Taylor, auditor;
James H. Schmidt, Ben E. Summerwill, Milo Novy and O. D. Bartholow,
assistant cashiers.
Only new officers are Walter F.
Schmidt, who was elected to a vice
presidency formerly held by Dean

Other officers and directors elected

at this meeting were: president, Ben
W. Olson; vice president and cashier,
O. G. Uhr; assistant cashier, T. G.
Thompson; directors, Dr. L. C. O’Toole,
A. E. Spangler, Mrs. J. H. Howell, Ben
W. Olson and O. G. Uhr. Mr. Allbaugh
is the only change in the directorship.

79

MacEwen, and Mr. Guthrie, who was
elected to a newly created post, vice
president and cashier.

To Grundy Center
John Pardun is a new assistant cash­
ier in the Farmers Savings Bank,
Grundy Center, Iowa.

Soil Groups Meet
Johnson county’s soil conservation
district commission was host to the
corresponding groups of three other
counties of the area at an all-day pro­
gram last month at the Wellman Sav­
ings Bank in Wellman, Iowa.
•ILU\ois

Becomes President

Á

H. Lloyd Haraldson, cashier of the
First National Bank of Rembrandt,
Iowa, was elected president to succeed
the late W. O. McGrew, who had been
president for the past 15 years.
Edgar Eastman was added to the
board of directors and Agnes Rystad
was promoted to cashier.
Mr. McGrew had been a member of
the board of directors since 1916.

Assistant Cashier
Miss Helena Jacobson was elected to
the position of assistant cashier for
Inwood State Bank, Inwood, Iowa, in
a recent meeting of the bank directors.
Miss Jacobson’s promotion was the
only change in the organization at the
first meeting of the board members, all
re-elected for 1948.

THE DROVERS “YELLOW BOY
ADVICE IS W E L L KNOWN
TO BANKERS WHOSE CUS
TOMERS SHIP LIVESTOCK TO

Iowa City Election

CHICAGO. IT IS THE SYMBOL

Ben S. Summerwill was re-elected
president of the Iowa State Bank and
Trust Company by the newly chosen
board of directors for 1948.
At a stockholders meeting, seven
men were named to the board of direc­
tors, after which the board selected the
officers for the bank.
On the board of directors are Mr.
Summerwill, W. W. Summerwill, W.
F. Schmidt, M. B. Guthrie, R. J. Baschnagel, Roy J. Koza and Omar Yoder.
Mr. Koza and Mr. Yoder are the new
members of the board, replacing Dean
Ewen W. MacEwen and George
Thompson, who died during the last
year. Mr. Schmidt was appointed to
the board during 1947 to replace Guy
A. Stevens.
Other bank officers elected by the
board include W. W. Summerwill, vice
president; Walter F. Schmidt, vice

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Federal Reserve Bank of St. Louis

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N o r t h w e s t e r n B a n ke r, M a r c h , 1948

80

Iowa News

Mr. Pardun was raised at Iowa Falls.
He was employed in the bank at Wil­
liams until he entered the navy where
he served three years during the war.
When he returned from the navy he
was given a position in the Security
First National Bank of Los Angeles in
the Hollywood branch.

Add Two Directors
Stockholders of the Landmands
National Bank of Kimballton, Iowa,
elected two new men to the board of
directors at the annual stockholders
meeting.
Hans P. Hansen and Morten Nelsen
were named to the board to succeed

Folmer Faaborg and Thomas Christen­
sen, both of whom declined re-election.
Other officers renamed to the board
were Dr. P. Soe, Anker Hald, Chris
Hansen, H. S Aamoth, and Alfred Nissen.

Lone Tree Election
Stockholders of the Farmers and
Merchants Savings Bank, Lone Tree,
Iowa, at their 47th annual meeting
elected L. O. Adams as a new director
of the bank.
Officers and directors who were re­
elected are Herman Wiese, president;
Ed. F. Hotz, vice president; J. E. Ash­
ton, cashier; W. P. Ashton, assistant

cashier; Elsie Smid, bookkeeper; Ed F.
Hotz, William Hotz, Herman Wiese, J.
W. Carey, J. E. Ashton, and W. P. Ash­
ton, directors.
At a directors’ meeting which fol­
lowed the meeting of the stockholders
F. A. Kirchner was named manager
of the Nichols branch of the bank. Mr.
Kirchner has assumed his new duties.

Director Retires
The annual meeting of shareholders
of the First National Bank of Marion,
Iowa, was held recently and officers
and directors for 1948 were named.
The officers are: R. N. Fitzgerald,
president; W. B. Sebern, vice presi­
dent; H. F. Lockwood, cashier; and
Emery J. Miller, assistant cashier.
These four with Dr. J. J. Booth, W.
H. Bleakly, and D. H. Smith, comprise
the board of directors. Mr. Smith, a
Marion attorney, was elected to the
board.
A. E. Blinks, who has been a direc­
tor of the bank for many years, retired
from the board due to ill health.

S io u x C ity \i>ars
assistant vice
, president and cashier of the
W
Live Stock National Bank, has been
C.

SCHENK,

named chairman of the Soomen com­
mittee of the Sioux City Chamber of
Commerce. This committee p l a n s
business trips made by Sioux City
businessmen into the surrounding ter­
ritory.
Mr. Schenk on March 1st completed
31 years service with the Live Stock
Bank, having started work with that
institution March 1, 1917.

J’Amdmn, Jhadsut.
The simple business transactions of the frontier con­
verged at the trading post . . . but as the West grew into
an empire, new and improved facilities came into being
to expedite the exchange of money, credits and com­
modities.
Through more than half a century the Inter-State has
played a part in this expansion . . . a half-century of
experience that qualifies us to serve our correspondents
efficiently and effectively in every financial field.

the Inter-S tate

National Bank

L I VES T OCK E X CHANGE BLDG.

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Member of The Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, M a r c h , 1948


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

Ralph R. Brubacher, president of
the Toy National Bank, left Sioux City
March 1st on a three weeks vacation.
Mr. Brubacher will travel through
Cuba and Guatemala.

C. Ij. Fredricksen, president of the
Live Stock National Bank, has been
elected president of the Sioux City
Clearing House Association.
W. G. Nelson, vice president of the
Live Stock National Bank, recently
was re-elected president of the Sioux
City Y.M.C.A.
Mark A. Wilson, vice president of
the Live Stock National Bank, has re­
turned to his duties after a three-week
vacation, spent in the Rio Grande val­
ley in Texas and making two trips
into Mexico.
Mr. Wilson reports he had a fine
time enjoying the sunshine and play­
ing golf.—The End.

Iowa New s

D e s M o in e s N e w s
rs. grace

k . g o o d w in ,

69,

M wife of
chairman of the board of Central Na­
William

J.

Goodwin,

tional Bank and Trust Company, died
at her home in Des Moines last month.
Mrs. Goodwin was the daughter of
an early Iowa pioneer, Albert Smith
Kingman, who moved here from New
York and engaged in nursery and
farming business. She is survived by
her husband; two sons, William, J.,
Jr., and Robert K.; two sisters, Mrs. I.
A. Bennett of Portland, Oregon, and
Mrs. H. G. Van Doran of Grimes; one
brother, Walter Kingman of Des
Moines, and four grandchildren.
Fred C. Robison was elected vice
president of the First Federal State
Bank last month, it was announced by
E. A. Tylor, president. Mr. Robison
has been a director a number of years.
He takes the place of Dr. Andros Carson, who has retired as vice president.
Herbert L. Horton, president, and
Clyde H. Doolittle, vice president and

81

Mr. Pearson joined the Newhouse
Company in 1921 as a salesman. He
was assistant manager for eight years
before becoming manager in 1945.
The company deals wholesale in
printing paper and has offices and
warehouses at Minneapolis and St.
Paul; Moline, Illinois; Dubuque and
Des Moines. Mr. Pearson is well ac­
quainted with many bankers in Iowa.
A. F. Newhouse is president and H.
M. McCarthy is executive vice presi­
dent. Both are of Minneapolis.

modernized their counters and in­
stalled the latest type fluorescent light­
ing throughout the building. Several
new pieces of equipment are being
added. It was voted at the bank’s
annual stockholders’ meeting to in­
crease the surplus account $10,000,
making the total capital and surplus
accounts $125,000.
Officers of the bank are N. W. Pike,
president; C. G. Whiting, vice presi­
dent; A. H. Bruning, cashier, and J.
G. Whiting, assistant cashier.

Increase Surplus

Promote Two Officers

The Mapleton Trust & Savings
Bank, Mapleton, Iowa, has recently

Charles F. McNamee and Carl J.
Heiles have been promoted from as-

0 o 18 l B o n 8
ACOUSTIM ETAL
★
★
★

NEW
IMPROVED
PERMANENT

trust officer of the Iowa-Des Moines
National Bank, attended the annual
Trust Conference of the American
Bankers Association in New York City
last month.
Mr. and Mrs. J. R. Astley went on a
two weeks’ trip last month to Phoenix,
Arizona, but spent one week of that
time trying to get out of the Middle
West, and trying to get back in. They
returned right in the midst of the
worst snowstorm in recent years. Mr.
Astley is a vice president of the Valley
Bank and Trust Company.

Becomes President
P. H. Borcherding was elected to
the presidency of the Hampton State
Bank at Hampton, Iowa, recently to
fill the vacancy caused by the death
in January of D. D. Inglis. Mr. Bor­
cherding had been vice president of
the bank.
At the same time it was announced
that Ralph R. Stuart was added to
the board of directors. Mr. Stuart is
a prominent Hampton attorney.

Promoted by Paper Firm
Charles H. Pearson, manager of the
Newhouse Paper Company in Des
Moines, was elected a director and
vice president of the company at a
recent meeting at the firm’s home
office in Minneapolis.
The position of vice president had
been vacant since the death in 1945 of
Ray S. Pierce, who was Des Moines
manager for the company.

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Federal Reserve Bank of St. Louis

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For authorized service in Iowa
TELEPHONE 3-4241

H. B. BUCKHAM & CO.
Specialists in A coustical E ngineering

410-20 SIXTEENTH STREET

DES MOINES, IO W A

]

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

82

Iowa News

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION
Oldest in Des Moines
210 6th Ave.

Dial 4-7119

ELMER E. MILLER
Pres, and Sec.

HUBERT E. JAMES
Asst. Sec.

FOR YO U R EN JO YM E N T . . .

Listen to the
“ WORLD OF MUSIC”
KRNT, 1350 KC

1 to 1 :30 p.m. Sundays

Bankers:
W e specialize in
writing

Automobile
and

Fire Insurance
★

sistant vice presidents to vice presi­
dents of Manufacturers Trust Com­
pany, Harvey D. Gibson, president of
that institution, announced this month.
Mr. McNamee will be located at the
bank’s Fifth Avenue and 43rd Street
office. He is a native New Yorker and
has been in the banking business since
1919. He was with the State Bank
when it became a part of the Manufac­
turers Trust Company in 1929 and was
appointed an assistant vice president
in June, 1941. Until recently he has
been officer-in-charge of the bank’s
University Place office.
Mr. Heiles, also a native New York­
er, became associated with Manufac­
turers Trust Company in 1924, was
made an assistant secretary in 1929
and in 1934 was promoted to assistant
vice president.

Gordon S. Rentschler
Gordon S. Rentschler, 62, chairman
of the board of the National City Bank
of New York, died in the Nacional
Hotel at Havana, last month of a
heart attack.
He had been chairman of the bank,
the country’s second largest, since
1940. Prior to then he had been presi­
dent since 1929, when he succeeded
Charles E. Mitchell.

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION

DEAR EDITOR
(Continued from page 9)

Mt. Pleasant, !owa
E. A . H A Y ES, President
O . T. W ILSO N , Secretary
Established 7929

from actual employes who were working on
the Fernandez Ranch in 1919. The roper
on horseback, George Fugate, and the man
doing the branding, J eff Davis, were both
old M atador cow boys who were raised on

the range, married cow boys’ daughters and
spent their entire lives on W estern ranches.
One item o f especial interest are the oldfashioned tapaderos shown on the stirrups.
These were colloquially known as ‘EagleBeak Taps’ and were com monly used b y the
ranchers and riders in the Southwest thirty
years ago.
“ The painting was exhibited at the N a ­
tional Academ y o f Design in New Y ork,
the Pennsylvania Academ y o f Fin e A rts in
Philadelphia, the D etroit A rt Museum and
the Chicago A rt Institute before it was
purchased b y David T. Beals and given a
place o f honor at the Inter-State National
Bank.
“ It exemplifies to a very high degree the
Western character and atmosphere that has
been associated with the Inter-State N ation ­
al Bank since it was founded in 1890, with
the prim ary purpose o f serving the live stock
interests o f the W est and Southwest.
“ I believe the story o f this picture m ight
be o f interest to your N orthwestern B a n k ­
er readers.”

Homer Hatten, Potts-Turnbull Co., Kansas City, Mo.
“ W e are out here at the Sovereign H otel,
L on g Beach, California, basking in the sun­
shine fo r the winter. W e expect to return
about the middle o f A pril. The weather is
delightful and really think it is goin g to
prove very beneficial to me.
“ As to sending me the N orthwestern
B anker direct here, I asked the bank to
forw ard me mine when I le ft so I presume
we had better leave it that way.
“ Thanks a lot fo r your thoughtfulness
just the same.
“ As you already know, I regard the
N orthwestern B anker as the best publica­
tion o f its kind. I t covers the Middlewest
so thoroughly. A lso I en joy C liff’ s editorials
so much that with my acquaintance over the
territory, I would be com pletely lost without
it. In fa ct, it is a sort o f second B ible
to me.”

H. N. Boysen, Vice Presi­
dent, Merchants National
Bank, Cedar Bapids, Iowa.

Through the use of modem

equipment, a

competent and trained staff, and an experienced
technique, the City National offers complete
facilities which assure our correspondent ac­
counts an unexcelled modern banking service.

FOURTH and GRAND
DES MOINES
N o r t h w e s t e r n B a n k e r, M a r c h , 1948


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Federal Reserve Bank of St. Louis

83
"Interesting Publication"
“ This will acknowledge receipt o f your
letter advising me that I am to receive copies
o f the N orthwestern B anker fo r the next
12 months through the courtesy o f the First
N ational Bank o f Selby.
“ I shall appreciate reading this interest­
ing publication each month and wish to
thank you fo r your courtesy in w riting me.
“ I w ill look forw ard to reading the article
which you enclosed on ‘ H ow a Bank D irector
Looks at Banks’ .”

George T. Mickelson, Gov­
ernor State of South Dakota,
Pierre, South Dakota.

"Layout Is Splendid"
“ M y congratulations to you on the story
in the N orthwestern B anker o f our cor­
respondent bank conference.
Y ou r layout
is splendid, and the story as you have w rit­
ten it is fu ll o f interest.”

Louis H. Northrop, Ass’t
Vice Pres., First National
Bank of Chicago, Chicago,
Illinois.

"To the Point
“ I have always enjoyed reading your edi­
torials in the N orthwestern B anker . They
are always current and to the point. I am
particularly interested this time in your let­
ters in the February N orthwestern B a n k ­
er to John K . M cK ee and M. S. Szymczak.
There is no doubt but what a more careful
watch must be kept over banking credit.
“ I t is a smart move to halt inflation, but
there is a good deal o f doubt in m y mind
how wise too much broadcasting o f it may
be, particularly in view o f the fa ct that
government spending and government lend­
ing continue on a high plane, and also i f
a sharp recession should occur, it leaves the
banks in a vulnerable position to be made
the scapegoat o f the depression.”

Robert I. Stout, President
First National Bank of Tekamah, Tekamah, Nebraska.

"Malicious Conspiracy"
“ I would like to have you discuss in the
N orthwestern B anker the wicked and
malicious conspiracy o f the Federal Reserve
B oard and the Treasury in depressing treas­
ury bond prices. And don’ t tell me that it
is to prevent inflation with all the inflation­
ary practices o f the government now going
on. I t w ill prevent inflation in the same
proportion as giving a patient with a bad
case o f pneumonia a couple o f aspirin tablets
to cure him. I f an examiner finds a poor
farm er with a $500 note in some bank, and
there aren’ t enough milk cows to prom ptly
pay it, the bank m ight take a loss, and they
must collect, but the Federal Reserve Board
can cause a $300,000 loss on bonds, and it’ s
all O .K .”

SALE

AND

PURCHASE

OF

BANKS

Bank Employes Placed—
With or Without Investment
Confidential— Responsible— Efficient
OSGOOD, NISSLY & GANFIELD
Io w a Falls, Iow a

E. W. Clark, President,
United Dome Bank and
Trust Company, Mason City,
Iowa.

"Would Appreciate Such Article!"
“ I think the N orthwestern B anker is
a fine magazine and have no fa u lt with it,
except I would appreciate occasional articles
dealing with problems o f the real small town
banks— not ‘ small tow n’ banks in towns o f
4,000 to 5,000 population, but rather the
little fellow in villages o f 500 to 2,000 deal­
in g with the rural problems in such com ­
munities.”

Millard M. Martin, Cashier,
Security State Bank, Allen,
Nebraska

"Interesting and Informative"
“ W e at the P u blic N ational Bank and
Trust Company o f New Y ork en joy reading
the N orthwestern B anker every month and
have always found it very interesting and
inform ative.”

Robert E. Jensen, Assistant
Vice President, The Public
National Bank and Trust Co.
of New York

"Amend the Law"
“ I would like to have you discuss in the
N orthwestern B anker the W a ge and H our
Law, which I think should be amended so
as to eliminate banks from this legislation.”

D. J. Christenson, Vice Presi­
dent and Cashier, Fenwick
Savings Bank, Fenwick, Iowa

"Par Clearance Banks"
“ W e would be interested in seeing the
N orthwestern B anker publish articles
which m ight eventually lead to nation wide
par clearance banks.
“ W e believe that the small number of
banks now charging- exchange should it«
longer expect N ational or State banks that
are on a par basis to subsidize their opera­
tions. There is no question but what all
banks can operate successfully without ex­
change on checks, i f they install reasonable
service charges and have the initiative to
develop the other departments o f their
banking institution.”

Leo D. Scherf, President,
Lakeside State Bank, Isle,
Minnesota

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Federal Reserve Bank of St. Louis

S fii& n e e b b y v n S P /ie c ia /S P e fr w c e

C e n t r a l N a t io n a l B a n k
IN C H IC A G O
ROOSEVELT ROAD AT HALSTED STREET
Member Federal Deposit Insurance Corporation

•

Member Federal Reserve System
N o r th v / e s te rn B a n k e r, M a r c h , 1948

84
W A N T E D — C a sh ier f o r ru ra l bank.
P o p u la tio n 3,200. A g e a rou n d 40. L a te
b a n k in g e x p e rie n ce n e ce ss a ry .
W rite
E .C ., c / o N o rth w e s te r n B a n k er, 527 7th
St., D es M oin es, Iow a .

MERCHANTS
MUTUAL

BONDING
COMPANY
Incorporated 1933

Home Office
SAVINGS & LOAN BUILDING

Des Moines, Iowa

W e are proud o f our two hundred
bank agents in Iowa.

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

Honor St. Louis Banker
William A. McDonnell, president of
the First National Bank in St. Louis,
was to be presented one of the St.
Louis Community Chest’s awards for
“outstanding citizenship” at a lunch­
eon to be held on March 16th. He
served as general chairman of the
1947 campaign.

Presents New Trophy

E. H. WARNER

James B. Forgan, vice chairman,
The First National Bank of Chicago,
earlier this month presented to Victor
Jankoski, president, Chicago Chapter
of American Institute of Banking, a
new trophy for the famous “Banker’s
Mile” track event, now a feature event
in the Chicago Relays.
This trophy replaces the Melvin A.

Secretary and Manager

W. W. WARNER
Assistant Secretary

Á

IO W A •LITHOGRAPHING •COA\PANY
EDWIN G. RAGSDALE -v SECRETARY

515 TWENTY EIGHTH STREET

»

A,

Coins that are worth more than face
value are rarely found in circulation

A progressive company with experi­
enced, conservative management.

-

Don’t try to corner the market in
Indian head cents. It is estimated
that there are over 200,000,000 yet in
the hands of the public. There is a
belief, and it is wide-spread, that these
coins are all worth more than face
value, regardless of date or condition.
How this mistaken impression could
gain such a wide-spread popularity is
not easy to understand.
Some people are saving them be­
cause they believe the government has
“called them in” and in time they will
become very valuable. The belief is
entirely without foundation. Our gov­
ernment has never paid a premium on
any coins and with the exception of
the gold issues it has never called any
i n'

This is Iowa’s oldest surety company.

FOUNDED BY CEOR.CE H. RAGSDALE -

The Coin Collectors Column

D E S •M O I N ES

Q U A L I T Y - E X P E R I E N C E •S E R V I C E

W AN TED:
A m a tu re ty p e o f m an
w ho can ta lk a B a n k e r’ s la n g u a g e . H e
m u st be a g g r e s s iv e , a m b itiou s, p o s s e s s a
d riv in g u rg e to ea rn a su b sta n tia l in com e,
have a w o r k in g k n o w le d g e o f F H A m o r t­
g a g e s , ow n a c a r in g o o d con d ition , and
be w illin g to d o som e tr a v e lin g .
W e need a co m b in a tio n sa lesm a n and
c o n ta ct m an t o w o rk w ith banks and
o th e r fin a n cia l in stitu tion s in th e sta te
o f Iow a . R esid en ce in th e e a s t-ce n tra l
n ortion o f th e sta te w ou ld be desira b le.
W rite A m o rtiz e d M o r tg a g e s , Inc., 125
E a s t W ells St., M ilw a u k ee 2, W is.

and the premium that is offered for
rare coins depends on how much coin
collectors are willing to pay.
The rarest of the Indian head cents
is the one dated 1877. If you were to
find one in circulation you could prob­
ably sell it for $5 or $10. A few other
dates in the 1870’s are scarce and can
be sold if they are not too badly worn.
Another valuable Indian head cent is
the 1909 issue with the S mint mark.
Even one in used condition is worth
many times its face value.
But the ordinary run of Indian head
cents, unless they are in new condi­
tion, are worth only one cent each.
If you have any quantity of them it
is better to cash them in and buy a
government bond.—By Stuart Mosher,
Editor of The Numismatist.
Traylor trophy which was placed in
competition by the late Melvin A.
Traylor in 1931 and which was won
permanently by Gil Dodds in 1947.
Under the terms of the event, the
trophy must be won three times for
permanent possession.
The Banker’s Mile was instituted at
the Chicago Chapter, American Insti­
tute of Banking Indoor Track and
Field Meet in 1922, and its popularity
soon attracted the leading “milers” of
the country. The first trophy was do­
nated by the Chicago and Cook County
Bankers Association, and was in com­
petition for seven years until Lloyd
Hahn won it for the third time and
permanent possession in 1928.
The last track meet sponsored by
Chicago Chapter, American Institute
of Banking, was hied in 1932. When
the Chicago Daily News revived indoor
track athletics in Chicago in 1937, the
directors of Chicago Chapter A.I.B.
authorized placing the Melvin A. Tray­
lor trophy in competition for the Bank­
er’s Mile as a feature event in their
famous Chicago Relays.
Competition for the first leg of the
new trophy promises to be keen when
the race is again scheduled in the
Chicago Relays at the Chicago Stadium
on March 20th.

In the Heart o f Down Town Sioux City

THE TOY NATIONAL BANK
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 , 1948


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

II

Alo Rough Stuff, Now!
In a phone call to the editor of a
local newspaper, a man explained that
his uncle had been a regular sub­
scriber for half a century. “He’s al­
ways been a model of propriety—
doesn’t smoke or drink; never uses
strong language and hasn’t ever been
to a theater or the cinema,” the
nephew explained. “ In fact, my uncle
has absolutely no vices or excesses.
And he’s going to celebrate his 80th
birthday tomorrow.”
“How?” asked the editor.

C O N V E N T IO N S
March 22-23, Central States C onfer­
ence, Chicago, LaSalle Hotel.
A pril 6, Banking C onference, W iscon ­
sin Bankers Association, U niver­
sity o f W isconsin, Madison.
A pril 19, Nebraska Bankers Associa­
tion G roup Meetings scheduled
for this week, no definite dates
available yet.
May 5-8, National Association of Bank
Auditors and Com ptrollers, MidContinent Regional Conference,
Dallas, Baker H otel.

INDEX OF
ADVERTISERS

June 2-4, Illin ois Bankers Association,
Annual
Convention,
Chicago,
Edgewater Beach H otel.
June 7-11, Am erican Institute of Bank­
ing, Annual Convention, Buffalo.

A l l e n W a l e s A d d i n g M a c h i n e C o r p ...........
A l l i e d M u t u a l C a s u a l t y C o m p a n y ..............
A l l i s o n - W i l l i a m s C o m p a n y .........................
A l l y n , A. C., C o m p a n y ......................................
A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o..

II

14
48
40
32
54

B
B a l l a r d - H a s s e t t C o m p a n y ...........................
B a n k o f A m e r i c a ...............................................
B a n k e r s S e r v i c e C o m p a n y , I n c ....................
B an kers T rust C om p an y— Des M o in e s ..
B a n k s , W i l l i a m H., W a r e h o u s e s , I n c . . . .
B e c k e r a n d C o w n ie , I n c .................................
B e c k e r , A. G. a n d C o m p a n y , I n c ..................
Beh, C a r l e t o n D., C o m p a n y ..........................
B e y e r - K u e f f e l a n d C o m p a n y .......................
B lair , W il l i a m , an d C o m p a n y .......................
B u c k h a m , H. B. a n d C o m p a n y , I n c ...........
B y l l e s b y an d C o m p a n y ....................................

June 21-23, W isconsin Bankers Asso­
ciation, Annual Convention, M il­
waukee, H otel Schroeder.
June 24-26, M ichigan Bankers A ssoci­
ation, Annual Convention, M ack­
inac Island, Grand H otel.
August 23-September 4, Central States
School o f Banking, University of
W isconsin, Madison.

37
27
26
87
70
42
30
38
38
34
81
36

Oct. 24-27, Annual Convention Iowa
Bankers A ssociation, Des Moines,
H otel Fort Des Moines.
N ovem ber 29-Decem ber 2, Financial
Public Relations Association, A n­
nual Convention, H o l l y w o o d ,
Florida, H ollyw ood Beach Hotel.

4
83
12
82
6
82

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Federal Reserve Bank of St. Louis

J

O
O m a h a N a tio n a l B a n k .......................................

19

O s g o o d , N is s ly an d G a n f l e l d ......................... 83
P

P o licy h o ld e r ’s N ational L ife Insurance
C o m p a n y ..........................................................
P r i e s t e r an d C o m p a n y ....................................
P u b l i c N a t i o n a l B a n k an d T r u s t C o ........

47
40
36

Q u a il a n d C o m p a n y ..........................................

32

II
R o l l i n s , R i c h a r d R., I n c ................................. 43
R o y a l B a n k o f C a n a d a .................................... 64

26
67
20
70
68
34

II

D a v e n p o r t , P. E. a n d C o m p a n y ........... 67,
D e L u x e C h e c k P r in t e r s , I n c ......................
D e s M o in e s B u ild in g , L o a n an d S a v i n g s
A s s o c i a t i o n ......................................................
D ie b o ld , I n c ...........................................................
D o u g l a s , J o h n an d C o m p a n y , I n c .............
D r o v e r s N a t i o n a l B a n k ..................................

N a t io n a l C a sh R e g i s t e r C o m p a n y ........... 23
N a t i o n a l C o m p a n y o f I o w a ........................... 34
N a t i o n a l C o m p a n y o f O m a h a .................... 37
N a t i o n a l S u r e t y C o r p o r a t i o n ...................... 56
N e w h o u s e P a p e r C o m p a n y ........................... 38
N o r t h e r n T r u s t C o m p a n y ............................... 57
N orth w estern N ational L ife Insurance
C o m p a n y .......................................................... 48

d

C
C e n t r a l H a n o v e r B a n k a n d T r u s t C o .. . .
C e n t r a l N a t i o n a l B a n k in C h i c a g o .........
C e n t r a i N a t i o n a l B a n k an d T r u s t Co.. . .
C e n t r a l S ta te s M u t u a l I n s u r a n c e
A s s o c i a t i o n ......................................................
C h a se N a t i o n a l B a n k ......................................
C i t y N a t i o n a l B a n k — C l i n t o n ......................
C it y N a t i o n a l B a n k an d T r u s t C o m ­
p a n y — C h i c a g o ...............................................
C i t y N a t i o n a l B a n k an d T r u s t C o m ­
p a n y — K a n s a s C i t y ......................................
C o m m e r c e T r u s t C o m p a n y ...........................
Continental B an k and Tru st C o m p a n y . .
Continental National B an k — L i n c o l n . . .
C r abbe, T h o m a s L., a n d C o m p a n y ..............

Septem ber 26-29, Am erican Bankers
Association, Annual Convention,
Detroit.

L

3
24
85
21
72
58

\

June 19-July 3, Graduate School of
Banking, Rutgers University, New
Brunswick, New Jersey.

MOINES

L

M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 84
M e r c h a n t s N a t i o n a l B a n k .............................
2
M i n n e s o t a C o m m e r c i a l M e n ’ s A s s n ............ 55
M i n n e a p o l i s M o lin e P o w e r I m p l e m e n t
C o m p a n y .......................................................... 52

A

June 15-16, Annual Convention, M in­
nesota Bankers Association, M in­
neapolis.

'

K

K a l m a n a n d C o m p a n y .................................... 43
K o c h B r o t h e r s ................................................... 82

M AR CH 1948

June 11-12, North Dakota and South
Dakota Joint Convention in the
Tw in Cities, H otel N icollet.

jHdveAlLdnc

I

I n t e r - S t a t e N a t i o n a l B a n k ........................... 80
I o w a - D e s M o in e s N a t io n a l B a n k .............. 88
I o w a L i t h o g r a p h i n g C o m p a n y .................. 84
I r v i n g T r u s t C o m p a n y ....................................
8

L a M o n t e , G e o r g e an d S o n .............................
L a w r e n c e W a r e h o u s e C o m p a n y ................
L e s s i n g A d v e r t i s i n g C o m p a n y ..................
L ive Stock N ational B an k— C h ica g o. . . .
L i v e S t o c k N a t i o n a l B a n k — O m a h a .........
L i v e S t o c k N a t i o n a l B a n k — S io u x C i t y . .

May 12-13, Indiana Bankers A ssoci­
ation, Annual Convention, In­
dianapolis, H otel Claypool.

Wf R.J. FLYNN.Pr«..

H a ls e y , S tu a r t an d C o m p a n y , I n c ............. 33
H a r r i s T r u s t an d S a v i n g s B a n k ................ 71
H o m e I n s u r a n c e C o m p a n y ...........................
5

76
60
82
43
42
79

S

St. P a u l T e r m i n a l W a r e h o u s e C o m p a n y . 22
S a l o m o n B r os, an d H u t z l e r ........................... 40
S c a r b o r o u g h an d C o m p a n y ........... .45, 69, 79
S e c u r i t y N a t i o n a l B a n k — S io u x C i t y . . . . 78
Sha w , M c D e r m o t t a n d C o m p a n y ................ 30
S p a r k s an d C o m p a n y ...................................... 42
S t o c k Y a r d s N a t io n a l B a n k — O m a h a . . . 65
S w a n e y , L y n n a n d C o m p a n y ...................... 36
T

T e n s i o n E n v e l o p e C o r p o r a t i o n .................. 83
T o w n Mutual D w e llin g Insurance C o m ­
p a n y ................................................................... 49
T o y N a t io n a l B a n k ........................................... 84

E
E m p loy ers M utual C asualty C o m p a n y ..

44

U
U n it ed S ta te s N a t i o n a l B a n k — O m a h a . . 62

F

First
First
First
First
F irst
First
F irst

N a t io n a l B a n k — C h i c a g o ..................
N a t i o n a l B a n k — L i n c o l n ....................
N a t io n a l B a n k —- M i n n e a p o l i s ...........
N a t i o n a l B a n k — O m a h a ....................
N a t i o n a l B a n k — St. J o s e p h ..............
N a t i o n a l B a n k — S i o u x C i t y ..............
W i s c o n s i n N a t i o n a l B a n k ..................

7
69
50
68
66
76
25

G

G e n e r a l A m e r i c a n L i f e I n s u r a n c e C o.. . . 46

V

V a l l e y B a n k an d T r u s t C o m p a n y .............

77

W

W a l t e r s , C h a r le s E., C o m p a n y ..................
W e s t e r n M u t u a l F i r e I n s u r a n c e C o .........
W h e e l o c k an d C u m m i n s ...............................
W h i t e - P h i l l i p s C o m p a n y , I n c ......................

64
47
33
37

N o r t h w e s t e r n B a n k e r, M a r c h , 1948

86

The Real Answer
Teacher: “What is capital punish­
ment?”
Pupil (whose father was a big busi­
nessman): “ It’s when the government
sets up business in competition with
you, and then takes all your profits
with taxes in order to make up its
losses.”
Bad Character
The reason no woman has ever mar­
ried the man in the moon is because
he only makes a quarter a week, gets
full once a month, and stays out all
night.
M y Buddy
Eye Doctor: “ Read the fourth line
on the chart.”
Patient: “ Read it? Why, I know the
guy personally. He used to play foot­
ball at Fordham.”
Be Ambidextrous
Fellows who drive with one hand
are usually headed for a church aisle.
Some will walk down it and others will
be carried in a box. Either way, it’s
better to use both hands.
All Set
New teacher: Class, I want you all
to be as quiet as you can be; so quiet
that you can hear a pin drop.
Piping voice (after deep silence en­
sued): Let’er drop!
Fast Comeback
Police sergeant (to rookie being ex­
amined): If you were in a police patrol
car and a gang of desperadoes doing
forty miles an hour passed you, what
would you do?
Rookie: Sixty!
Well Known
He (taking her hand in his and gaz­
ing proudly at the engagement ring he
had given her): Did your friends ad­
mire it?
She (coldly): They did more than
that—two of them recognized it!
N o r t h w e s t e r n B a n ke r, M a r c h , 1948


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

Voice of Experience
Junior: Dad, is a taxidermist any­
thing like a taxi-cab?
Father: No, son, a taxidermist skins
only the lower animals.
One Less
“What happens when you take one
cigarette out of a package?”
“The package becomes a cigarette
lighter.”
Following the Style
June: What is juvenile delinquency?
Jane: Kids acting like their parents.
New Life
Tavern owner (awakened at 5 a. m.
by pounding on the door): Go ’way.
You can’t have anything to drink at
this hour.
Man: Who wantsch anything to
drink? I left here at closhing time
without my crutches.
Bad Guess
A motorist in the south found a
bridge over a stream washed away
by a recent storm. A native sat whist­
ling near by.
“ How deep is this stream?” asked
the motorist.
“Dunno.”
“ Think I can drive through it?”
“ Sure thing.”
The emboldened motorist d r o v e
headon into the stream. His car
promptly sank out of sight and he
himself barely got out with his life.
“What do you mean telling me I
could drive through that stream?” he
cried furiously. “ Must be ten feet
deep.”
The native scratched his head.
“Can’t understand it,” he admitted.
“The water is only up to there on the
ducks!”
Scientific Design
A manufacturer sent an efficiency
expert through the factory to work out
improvements. After a thorough in­
spection, he reported: “ My only sug­
gestion is that you bank the curve
near the time clock.”

Buddies
There’s something about the brother­
hood of man. During a recent cold
spell a man who resides in the suburbs
had trouble with his car and at mid­
night had failed to arrive home. Fran­
tic, his wife sent wires to six closest
friends, asking as to poor hubby’s
whereabouts. Next morning she re­
ceived six wires: “John is spending
the night with me.”
Dumb Dora
A friend of ours caught in Manhat­
tan traffic saw a little woman dash in
front of a car. The driver stopped
just in time. “Then,” says our friend,
“the traffic cop turned to the woman
and said, ‘Lady, that’s abusing the
privilege of being stupid’ !”
Prove It!
Bank Teller: This check, I‘m sure,
is valid, but do you have anything by
which to identify yourself?
Lady (hesitantly): Well, I have a
mole just above my waistline.
Epitaph
Two travelers in Ireland, returning
home late one night, lost their way.
Said one, “We must be in a ceme­
tery. Here’s the gravestone.”
“Whose is it?” asked the other.
The more sober of the two, having
struck a match, said “ I don’t know
but he seems to have lived to a ripe
old age—175.”
“Can you read the name?” insisted
his companion.
Another match having been lit: “ I
don’t know him. Some fellow called
‘Miles from Dublin’.”
Not That Low
A man who had never done very
well financially entered a cheap res­
taurant to get a meal. In the waiter
who approached him he recognized
an old college friend whom he had
not seen for 10 years.
“What! You a waiter here,” he ex­
claimed in surprise.
“Yes,” growled his friend, “but
thank goodness I don’t have to eat
here.”

,~ì

•>

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