Full text of The Northwestern Banker : March 1949, 54th Year, No. 740

View original document

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

IARCH
1949

Annual Bond
and Investment
Survey — Page

;; •~

NATIONAL FARM INSTITUTE SPEAKERS— Page

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

Your Local Banker Keeps Vigil
Over the American Economic System
The local banker stands at the foundation of our free enterprise
system of individual opportunity. He promotes the interests of his
customers by providing them with the facilities of his bank, enriched
by his own experienced business judgment. This system of encour
aging individuals to utilize their skills and ambitions for business
growth has made America the strongest nation on earth.
More than half of Iowa's banks (58%) are correspondents of The
Merchants National. These bankers are able to combine their own
vast knowledge of local conditions with resources and facilities for
nation-wide service for their customers. The "network" of Merchants
National correspondent banks has constantly grown through the
years because unexcelled facilities are combined with dependable,
friendly counsel.

THE
MERCHANTS NATIONAL
=
]BANK[=
O F F I C E R S
JAMES E. HAMILTON, Chairm an Executive
Committee
S. E. COQUILLETTE, Chairm an of the Board
JOHN T. HAMILTON II, President
MARK J. MYERS, V ice President
FRED W . SMITH, V ice President
GEORGE F. MILLER, V ice President and
Trust Officer
MARVIN R. SELDEN, V ice President

L- ft
Bòa

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, A sst. C ashier
EVERETT C. PRATT, A ssistant C ashier
C. F. PEREMSKY, A ssistant C ashier
VICTOR W . BRYANT, A ssistant C ashier
JAMES E. COQUILLETTE, Assistant C ashier

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

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

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

Orchard House
d

-4

' | * HE FIRST golden egg of the ugly
A duckling,” wrote Louisa May Alcott
after the publication of “ Little Women”
which brought fame and prosperity after
lean years of believing herself a failure. Yet
the publisher was disappointed in the manu
script and inclined to reject it. Fortunately,
he sought the opinions of some young friends
and their enthusiastic reaction convinced
him of its appeal.
As every reader knows, “ Little Women”
is based on the early home life of the four
Alcott sisters and through the tomboy Jo,
Louisa herself is revealed. Though the au
thor spared no unflattering details, Jo with
all her faults emerges as the strongest and
most endearing character.
Louisa, the second of the four daughters,

View o f parlor. Note “ sausage pillow” mentioned in “ Little

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

was born in 1832 in Germantown,
Pennsylvania, where her father
conducted a school. A man of cul
ture and advanced educational
ideas, Bronson Alcott was never
theless an unpractical dreamer
who had difficulty making an ade
quate living.
After many moves, in 1857 the Alcotts
bought Orchard House in Concord, Massa
chusetts, which remained their home for
twenty-five years. Built about 1650 and one
of the oldest in Concord, the house was
so dilapidated that its former owner had
thought it fit only for firewood. But he did
not know the resourceful Alcotts who ener
getically set to work and made the old
wreck habitable. Some of the decorations
made by May (Amy in “ Little
Women” ) still remain.
Linder the spur of necessity the
ambitious Louisa began writing
at an early age, but her stories
netted very little and failed to
meet her own critical standards.
With “ Little Women,” which was
written at Orchard House and
published when she was 36, she
not only became successful in the
eyes of the public but had the
satisfaction of feeling that she
had hit her stride. Characteris
tically, she rejoiced most in being
Women ”
able at last to install a furnace

The library in Orchard House

in Orchard House and provide her family
with many other necessities and comforts.
Her dominant love and protective instinct
were constantly directed toward her family.
This single-minded devotion was probably
why she never married.
Orchard House is now maintained by the
Louisa M. Alcott Memorial Association.
Through the help of relatives and friends it
has the same appearance and much of the
same furniture as in the days when the
Alcott family made it their home.

7he Home, through its agents and
brokers, is America’s leading insurance
protector of American Homes and the
Homes of American Industry.

* THE HOME •£*
Home O ffice: 5 9 M aiden Lane, N ew York 8 ,N .Y .
FIRE

•

AUTOM OBILE

•

MARINE

The Home Indemnity Company, an affiliate,
writes Casualty Insurance, Fidelity & Surety Bonds

A Bank Is Known ...
by the correspondents it keeps.

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

CENTRAL HANOVER
BANK AND TRUST COMPANY
NEW YORK

Member Federal D eposit Insurance Corporation

N orthw estern

Ban ke r, M a r c h ,

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

7949

OUR CUSTOMERS

Banks score on two points
when they specify “ La Monte” :
1. They supply their customers with the check
paper that is nationally recognized as the
standard for quality and safety.
2. They put into circulation a product which
accurately reflects the character and stand
ing of their institutions.

YA ! ! KV1
M h IUk }*

mììPl-

I __

SA FETY P A P E R FOR C H EC K S
GEORGE LAMONTE & SON, NUTIEY, NEW JERSEY

n v

nit

p»'
tm w av < im »
: =:

a» e a

■

» » ctJLÍ

BPOBili55—•
0/1Û0

•

thosSîSB-^

m monk r é « * - « * * *

„ o NA'-

A Check Paper A ll Your Own
Thousands of banks and many oi the larger corporations
use La Monte Safety Papers with their own trade-mark or
design made in the paper itself. Such INDIVIDUALIZED check
paper provides maximum protection against both altera
tion and counterfeiting — makes identification positive.
, ■ ■ ■

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

' «

N orthw estern

B an ke r, M a r c h ,

1949

Y
s

# H e r e ’s a complete plan designed \
to increase rentals immediately.
It’s an integrated plan that has
been proved effective by impor
tant banks throughout the coun
try. It’s an inexpensive plan —
Mosler supplies its ingredients at
cost! It’s a dignified plan that will
add to the prestige of your insti
tution while it increases rentals.
A ll components are supplied to you
by Mosler. Y O U R N A M E , and your
personal sales-story are amply pro
vided for and profitably exploited.

. . .

a choice of six different handy-size

folders which can be used for statement
inserts, counter distribution, or pass-book
enclosures. Your bank’s special sales-story
has a whole page to itself. Plus four actionpromoting newspaper advertisement mats
designed to make prospects think of Y O U
when they consider a safe deposit rental.
If you’d like to look at the ads and
folders, just drop us a line and we’ll send
you a sample kit immediately. There’s no
obligation, of course.

M o sle r S a fe &.
Main office: 3 2 0 Fifth A venue, New York 1, N. Y.
Factories: Hamilton,

Largest Builders of Safes and Vaults in the World

Branch Offices
in yo u r territory
>

N orthw estern

Ban ke r, M a r c h ,

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

1949

Builders of the U. S. Gold Storage Vault Doors at Fort Knox, Ky.
C h ic a g o

MINNEAPOLIS

KANSAS CITY

214 W. Jackson Blvd.
CEntral 6-3748

4606 Arden Avenue
WAInut 6742

430 Dwight Bldg.
1004 Baltimore St.
Victor 5522

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

r±

Does good eating
make people think
of your bank?

ot m a n y people r e a l iz e ,

as you do, what a lot of banking goes

into the eggs they eat for breakfast. Or how much their year-

round supply of butter, poultry, fresh fruit and other perishables de
pends upon the speedy handling of food drafts by the country’ s banks.
But food drafts make many banks think immediately of the Trying
Trust Company. For Irving makes a specialty of handling food
drafts. Our far-reaching contacts in the perishable food industry . . .
our "know -how ” and resourcefulness in speeding payments and ex
pediting deliveries . . . stem from many, many years of experience.
M a y we help speed the payment of your food and commodity drafts?

rI Tl « I 7« rr

ONE W A L L STREET
Capital Funds over $ 1 1 6 ,0 0 0 ,0 0 0

W illiam N. E nstrom,

N E W Y O R K 15, N . Y .
Total Resources over $ 1 ,1 0 0 ,0 0 0 ,0 0 0

R ichard H. W est, President

C ha irm a n o f the B oa rd

Domestic Banking Division
P hilip F. G ray , Vice President

Serving the V est
W illiam F eick , Vice President

H. M iller L awder , Assistant Vice President

M EM B ER F E D E R A 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 orthw estern

Ban ke r,

March,

1949

A GOOD INVESTMENT
because...it handles

In a matter of seconds, this National Multiple-Duty Account
ing Machine changes from any one of these jobs to any other:
•
•
•
•
•
•
•
•

National provides a complete line of
accounting machines to meet every
need of every department of every
bank, large or small. They’re all de
scribed in this handsomely illustrated
64-page free booklet, which your local
National representative will be glad
to give you.

individual ledgers
general ledger
daily financial statements
trust records
regular mortgages
F.H.A. mortgages
loans and discounts
payroll

Its removable form bars are changed quickly . . . easily. It
will handle any posting work, in any bank, better and faster.
It can be operated by anyone who can type and operate
an adding machine.
National Accounting Machines offer an efficient, mechanized
answer to every problem of bank accounting. Out of the
country’s 100 largest banks, 94 use Nationals . . . as do
thousands of smaller ones.

Q /fjatU m al
ACCOUNTING MACHINES
CASH REGISTERS • ADDING MACHINES

THE NATIONAL
Northw estern

CASH REGISTER

Banke r, M a r c h ,

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

1949

C O M P A N Y , D A Y T O N 9, O H I O

A broa as at Home,
The Chase can Serve You!
W herever foreign trade requires m odern banking services, you’ll find the Chase
prepared to help — not only through our w orld netw ork o f branches and
correspondent banks but also with our intimate k n ow led ge o f the problem s involved.

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

At hom e, the Chase for many years has been a leading supplier o f
bank credits for textiles, foodstuffs, machinery, transportation equipment,
oil and many other products and com m odities.
In financing foreign trade, we supply helpful data on exchange
and trade regulations and market and credit conditions. O ur Foreign Departm ent
can act for you in carrying out each step o f your transaction, from
initial fact-finding to the final collection or remittance o f funds.

Banks can broaden

THE CHASE NATIONAL BANK

their service to customers
b y using Chase facilities

O F THE CI TY O F

NEW

YORK

HEAD OFFICE: Pine Street corner of Nassau
M em ber Jederal Deposit Jnsurance Corporation
N orthw estern

Banke r,

March,

1949

Why bankers use the

in (Chicago
Correspondent banks appreciate thoughtful
and helpful information, as this banker did
when he wrote:
“ . . . You

fellow s have your ears a

little closer to the ground than we do
out here and w e appreciate your passing
these suggestions on to us.”
Your Bank is cordially invited to use The
First National Bank o f Chicago

as your

correspondent.

The First National Bank of Chicago
Building with Chicago and the Nation Since 1863
MEMBER

FEDERAL

D EPO SIT

IN S U RA N C E

COR PO R ATIO N

•c
*

«
N orthw estern

Ban ke r, M a r c h ,

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

7949

Independent Bankers
To Convene
Members of the Independent Bank
ers Association have planned a Spring
Tonic Trip to Biloxi, Mississippi,
which, including the time aboard trains
going and returning and the time
spent in the deep south, will consume
about ten days. The time spent in
Biloxi will be on March 20th, 21st and
22nd. Following this there will be
three more days, or the balance of
that week, when the bankers and their
wives will visit in and near New
Orleans. There is no special program
planned for any of the time the visi
tors are in the south. While many
sight-seeing trips are available, it is
a time for relaxation and fun.
Charles C. Rieger, vice president of
the Marquette National Bank, Minne
apolis, is chairman of the transporta
tion committee for the trip beginning
in the Twin Cities. It is planned to
pick up passengers all the way to St.
Louis as the train progresses south
across the middlewest.

Detroit Meeting
Twelve projects of immediate value
and importance will be on the table
for discussion when the Financial
Public Relations Association’s exten
sion committee holds its annual meet
ing March 13-14, 1949, at the Statler
Hotel in Detroit, Michigan. Chairman
of the committee, Howard C. DeMelt,
vice president, Syracuse, New York,
Trust Company, assisted by Vice
Chairman Charles J. Miller, executive
vice president, First National Bank,
Meadville, Pennsylvania, will have a
board of fourteen experts to discuss
subjects ranging from the education of
children to the increased costs of ad
vertising. Each subject will be pre
sented in a short speech by one or
two of the committee members and
will then be thrown open for discus
sion at large.

ON THE COVER
Taking for its theme “American
Agriculture in World Affairs”, the Na
tional Farm Institute held its eleventh
annual meeting in Des Moines last
month. The Institute was sponsored
by the Agricultural Department of the
Des Moines Chamber of Commerce.
Pictured on the cover are Wilfred
J. Hinton (left), of the Institute of
Banking, London, England, and Lee
Allbaugh, economist of The Rocke
feller Foundation, New York City. Mr.
Hinton spoke on the subject, “Eu
rope’s Contribution to World Recov
ery,” and Mr. Allbaugh took part in a
panel discussion of “ The Dollar Short
age and What Is Back of It.”

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

DES M O IN E S
Oldest Financial Journal West of the Mississippi

•

54th Year

•

No. 740

IN THIS MARCH, 1949, ISSUE
EDITORIALS
Across the Desk from the Publisher............................................ 12, 13

FEATURE ARTICLES
On the Cover.................................... ........................................... ......
Frontispage ............... ......................................................... -.........----6 Agricultural Problems Facing Bankers-Today..............................
............ ............................................................Harry M. Swanzey
News and Views of the Banking World......... ...Ralph W. Moorhead
“ How We Plan to Increase Our Bank Earnings in 1949”...............
........ ....................................... A Northwestern Banker Survey
Bankers You Know—Frank L. King............... ................................
Can Former Bank Employes Be Told Where They Can Work?—
Legáis ...........................................................................................

11
15
17
18
19
20

BONDS AND INVESTMENTS
How Bankers Are Investing Their Funds — A Northwestern
Banker Survey ........... ...............................................,...................... 30,
Cash Payments to the Public............................................................
Why Bankers Like Tax Anticipation Warrants..............J. H. Riley
The Municipal Market Has the New Look............H. Holden Smith
Investment News ...............................................................................
Investment for Liquidity, or Investment for Income?...... ............
........................ ................................................ Charles R. Bennett
High Grade Bond Market Has Calmed Down in Past Months..........
................... ............. ...................... .......-.......... Raymond Trigger

31
31
33
37
39
41
43

INSURANCE
How to Make Big Customers Out of Little Ones..........R. C. Larson 47

STATE BANKING NEWS
Minnesota News ................................................................................
Twin City News................ ................... ....................................
South Dakota News....... ............................. .......... ...........................
Sioux Falls News........................ ...............................................
North Dakota News...........................................................................
Nebraska News ................................................................ ................
Nebraska Group Meetings Schedule..........................................
Omaha News .............. ................................................................
Iowa News ..................... ....................^............................................
Iowa Group Meetings Schedule..................................................
Groups One and Eleven Meet in Sioux City and Burlington....
Iowa Group Meeting Pictures....... ......... ..............................77,
Iowa Bank Remodels............................................................. ....
Conventions .......................................................................................

55
57
63
63
65
67
67
69
75
75
76
79
80
88

IN THE DIRECTORS' ROOM
A Few Short Stories to Make You Laugh......... .............................. 90
N O RTH W ESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUY
Publisher
HENRY H. HAYNES
Editor
ELIZABETH COLE
Advertising Assistant
PAUL W. SHOOLL
Field Representative

RALPH W. MOORHEAD
Associate Publisher
BEN J. HALLER, JR.
Associate Editor
HAZEL C. STEPHENSON
Auditor

MALCOLM K. FREELAND
Associate Editor
SADIE E. WAY
Circulation Department
JOSEPH W. FRANKS
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 orthw estern

Ban ke r, M a r c h ,

1949

12
financed a critically-needed operation on their
young son.

“ As Irving Trust Company enters its 98th year,
we continue to broaden our usefulness to business,
the commonuity at large, and you.”
That’s what we call good copy, good advertis
ing and plenty of “ Human Interest.”

(bfWUL. WbdvivR

c&xnpJuitc:

President Lanphar & Co., Detroit Mortgage Bankers

A c r o s s tlie D e s k
F r o m th e P u b l i s h e r
(Ù & W r

lûiUimrL

VL.

¿nAthorrc:

President, Irving Trust Company, Neiu York

Congratulations on putting “ human interest77
into your bank statement at the end of the year.
The N orthwestern B anker believes there is
more human interest in a “ bank book” than any
book in the world, and human interest is cer
tainly reflected in the sum total of all the trans
actions represented by a bank statement.
We enjoyed reading “ Circus elephants and
Indian mahouts might never make you think of
a bank. Yet they furnish one of many interest
ing behind-the-scene stories in this year-eiid
statement. Thousands of Letters of Credit are
issued by our Foreign Division each year to cover
imports you use every day. One, however, in
structed us to pay a dealer in Ceylon for two
female elephants—if they arrived here 'sound of
sight and limb.’ The accompanying mahout,
furthermore, was to receive his three months’
salary.
“ There’s a college education in this statement,
too. I t ’s only a small Thrift Account now, to be
sure, but a young father intends it to grow to see
his son through college, class of ’63. And a per
sonal loan recently received by the 'Thompson5
family was far more important to them than one
of the multi-million dollar commercial loans. It
N orthw estern

Ban ke r, M a r c h ,

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

1949

According to some authorities, you have han
dled more mortgages through your organization
than any single individual in the United States
and therefore you should speak with authority
on this subject.
In your remarks you said, “ Our policy is this.
We will make every good loan that should be
made in our trade territory, if the borrower is a
good borrower and if he can show reasonable
ability to repay it. Before we do that we have a
preliminary inspection report wherein one of the
officers inspects the property. If it passes muster,
then we take a formal application, get a credit
report, photographs, an appraisal by a qualified
fee appraiser, a real one, not a horseback or Paul
Revere, but a real appraisal, title insurance and
survey. And why do we do that? Because we
want every mortgage in our bank in such shape
that it can be sold without any 'beefs.’
“ Now if country banks will make their mort
gages so they can be sold, they will never get
frozen up or get to where they can’t make loans.
Our loans are made on 5, 8 or 10-year monthly
payment basis, fully amortized, mostly 6 per cent
(some 5 per cent and 5y 2 per cent, but mostly 6
per cent).
“ In 1949 there is going to be a billion dollars
worth of Defense Bonds that are going to mature.
You ought to get that money because the more
savings you have, the more mortgages you can
make, and the more mortgages the more good you
can be to your community and, consequently, the
more profit. Don’t ever get out of the mortgage
market. ’ ’

In discussing our “ tremendous mortgage debt,”
John Lintner, writing in the Harvard Business
Review, presents some of the less favorable views
of our present mortgage situation, but also be
lieves that even if we should have a depression,
that “ losses on current portfolios will be lower”
because of the lessons which lenders have learned
from previous experience.
Mr. Lintner discusses the question this w ay:
“ (1) The large proportion of existing mort
gage portfolios put on the books within the last
three years gives cause for concern. . . . The

volume of new mortgage loans made during the
three years from mid-1945 through mid-1948
amounted to 50 per cent more than the total
amount of such loans outstanding on Y-J Day,
whereas the new loans made in the three years
1927-1929 amounted to only 10 per cent more
than the loans outstanding at the end of 1926. . . .
“ (2) It is significant that in recent years an
increasing proportion of uninsured mortgage
loans are being made at from 75 per cent to 80
per cent of the current appraised value. In con
trast, during the 1920’s lender other than build
ing and loan associations were limited by law to
no more than 60 per cent to 66% per cent of ap
praised value. . . .
“ On the other hand, there have been many
changes in mortgage lending practices and pol
icies since the 1920’s which should serve to re
duce substantially the relative rates of losses
taken on current mortgage portfolios even if an
other depression should prove to be as severe
as the last.
“ Much of the existing residential mortgage
debt is guaranteed by the Federal Government,
through the Federal Housing Administration and
the Veterans Administration. . . . Nevertheless,
it is significant that both these forms of federal
support cover less than one-third of the residential
debt outstanding and only a minor fraction of
commercial mortgages. . . .
“ Finally, there is reason to believe that the
losses on current portfolios will be lower even in
the event of a severe depression because of the
lessons which lenders themselves have learned
from their previous costly experience. . . .
“ If, on the other hand, as seems probable
to the author, any general business depression
within the foreseeable future is most unlikely to
be as severe as that of the 1930’s. mortgage
losses are likely to be even more manageable, and
the yield correspondingly greater.”

VVe agree, Mr. Tjanphar, that bankers should
“ stay in the mortgage business,” but to do so
they should at all times make conservative loans
based on sound appraisals.

(D & jd u l .

S u m

it .

di. SticktcA:

Chairman, Research and Policy Committee of C.E.D.

should or should not support the government bond
market.
Your report put it this way, “ The Federal Re
serve is now supporting the prices of the longerterm government bonds at levels slightly above
par. The Committee recognized the serious con
siderations underlying this support policy. How
ever, the current support of government bond
prices has inflationary effects. The ability of the
Federal Reserve to offset these effects is not un
limited, and under some conditions could be
quickly exhausted. Accordingly, in its decisions
on the purchase and sale of government bonds,
the Federal Reserve should act on the basis of
its judgment from time to time as to the effect
of such action on the economy as a whole. It
should accept continuing responsibility for the
maintenance of an orderly government bond
market.

“ It should also give due consideration to re
quirements arising out of unsettled international
relations. However, the Federal Reserve should
feel free to reduce the support level unless it
finds a superior alternative way of bringing about
a monetary restriction if and when that is required
by the objective of economic stability.”
In the opinion of the N orthwestern B anker ,
the most important sentence in the above state
ment is “ It should accept continuing responsibil
ity for the maintenance of an orderly government
bond market.”
With a national debt of over 250 billion dollars,
a grave responsibility rests upon the government
and in turn on the Federal Reserve system if we
are to prevent a serious drop in government
bonds. We realize there are some who believe
that they should be pegged at a certain leA^el and
it would be better for the economy as a whole, but
we are quite sure that if the government bond
market should have a long and protracted down
swing, that the national economy would be af
fected much more adversely than would be the
case by having a supported government bond
market by the Federal Reserve system.
However, your statement leaves it to the Fed
eral Reserve board to make their decision whether
they should or should not support the market
and we believe that your Committee was wise in
that respect, but it is our feeling that the govern
ment bond market should not be allowed to get
“ too far out of line” either up or down.

Your committee made a real contribution to
the economic welfare of the United States, when
you prepared your statement on “ Monetary and
Fiscal Policy for Greater Economic Stability.”
One of the important statements you made had
to do with the Federal Reserve and whether it

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

N orthw estern

Ban ke r,

March,

1949

Posting Over 250,000 Checks Monthly
It is in the General Bookkeeping De

An average of 250,000 checks (ap

partment that the checks of cus

proximately 10,000 for every work

tomers are posted in the individual

ing day) are posted every month.

ledgers. As in all Departments— the
General Bookkeeping Department is

While the personnel in this Depart
ment doesn’t have a great deal of
direct contact with the public— they

equipped with modern equipment

realize the importance of their work

and a well trained personnel.

in keeping customers satisfied.

CENTRAL NATIONAL BANK
and Trust Company • Des Moines, Iowa
M EM BER

N orth w estern

Ban ker, M a r c h ,

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

FED ERA L

1949

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 orthw estern

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

Ba n ke r, M a r c h ,

1949

I
• • • • The integrity inherent in the name
Allen-W ales on an adding machine is your
guarantee of A C C U R A C Y , S P E E D and
D E P E N D A B IL IT Y — three factors essential
to satisfactory adding machine performance.
■Y ::

Y '

: .

--;L

''*)

ALLEN W WALES
ALLEN-WALES ADDING MACHINE DIVISION
OF
THE
NATIONAL CASH REGISTERCOMPANY

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

444
N E W

MADISON
YO R K

AVENUE
22,

Y.
lilffr

f» A gricu ltu ral P roblem s

Facing B an kers Toila g
Proper Planning for the Future Requires
Review and Possible Revision of Farm Loan Policies
By HARRY M. SWANZEY
Cashier, First National Bank
Joliet, Illinois
VER the past several years the ment bond prices, I wonder if that
measure will be effective. Banks will
agricultural problems to face
the banker have been few in continue to make loans if they believe
number and of little magnitude. As them to be sound and will, therefore,
surance of the four fundamentals of have to sell governments. The result
lending — character, capacity, credit is obvious.
Let us look at these problems and
and collateral—has just about elimi
nated any possible trouble. We have how they affect agricultural lending
had continuous good times, with a and the different types of loans, with
steady increase in commodity prices some discussion on how to avoid
and with very few breaks except those them.
of a seasonable nature. Net returns
Character
on farms have been good, even with
I think first and utmost to be con
high costs.
sidered is the man. An honest man
I
am afraid that there is a tendency capable operator is the most impor
by too many of us to look at present tant factor. Without this, your prob
conditions only, and through rose- lems would be many and tangible
colored glasses. We have not pro collateral of little value. Every pre
jected far enough into the future, caution should be taken to know to
which we must do if we are to keep whom you are extending the credit. A
our agricultural lending structure on financial statement, accurately taken,
a sound basis. If we do not do this, will give you a pretty good picture of
problems that are sure to develop will the applicant’s position.
Inquiries
be many.
should be made and, on new appli
Six Major Problems
cants, every available source of infor
mation should be used in checking on
Our problems now, in my opinion,
character and ability.
are:
^
Continued high commodity prices.
Purpose of Loan
I . There is bound to be a break.
Next in importance is the purpose
Overexpansion. A large number of the loan, and purposes are sundry
, of our farmers are young and and many. It is important that first
have not been through a severe break, consideration be given to such pur
such as 1920 and 1921.
poses as will do the farmer the most
Optimism. The farmer is a nat- good. The most common is known as
. ural optimist and wants to take the “general purpose” loan. Operat
ing expenses must be considered first
advantage of the last bulge.
and, if there is room for additional
a
Over-production. W i t h h i g h
prices, there is a tendency to credit, capital purposes and unneces
push the soil to the limit with too sary expenditures can be considered.
little attention paid to soil conserva In loans of this nature, careful study
tion and land use.
— Over-confidence on our part. We
D . may be inclined to say, “Yes,’’
S ix P r o b le m s
without proper analysis, to our cus
1.
Continued
high commodity
tomers with whom we have had a
prices.
continued and good experience. I be
lieve this may be particularly true in
2. Overexpansion.
unsecured lines.
3. Optimism
General trends and inflation. The
4. Overproduction.
a F e d e r a l government has at
5. Overconfidence.
tempted to curb inflation by increas
6. General trends and inflation.
ing reserves, but with the Federal
Reserve Banks supporting govern

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

H AR R Y M. S W A N Z E Y

must be given to the production ca
pacity of the farm, management abil
ity of the farmer and cost of opera
tion. Right here, it seems to me, is
the place to determine whether or not
there is overexpansion, such as the
purchase of too much high-priced
equipment and consumer goods, or
improvement to the buildings. There
must be assurance of sufficient income
to meet operating costs and repay
ment of the loan before other pur
poses are considered. If there is not
sufficient current income to meet op
erating and living costs, they will
have to be provided for in the loan.

Dairy Loans
Most dairy loans are capital in na
ture, in that quite often they are for
the replacement of cows. Here, too.
caution against over-expansion should
be exercised. Cows are high in price,
and the present level of milk prices
may decline. Income on dairy farms
is constant, coming monthly from the
milk check, and it should not be neces
sary to lend for operating expenses ex
cept possibly when seasonably heavy-

Crop Production Loans
It would seem that over-production
would be the greatest problem to face
us in crop production loans. It is
quite possible that the problem is here
right now. We have a much lower
price level on grains than last year,
but an abundant crop as against a
short crop, so that there may not be
too much difference in net returns.
However, has the land been pushed
too hard, and not enough attention
paid to crop rotation and soil conser
vation? Always in crop production
loans, first consideration must be
given to operating expenses. Income
(Turn to page 50, please)
N orthw estern

Ban ker, M a r c h ,

1949

Neim and Views
OF THE BANKING WORLD

By RALPH W. M O O R H EA P, A sso cia te Publisher

HE Old Timers Club is the name
of a group in the MinneapolisMoline Power Implement Com
pany of Minneapolis which has 810
members. They are officers and em
ployes who have been with the com
pany more than 20 years.
They held a big dinner recently at
the Hotel Radisson in Minneapolis, at
tended by 1,130 employes and officers.
In the Old Timers Club, 22 have been
with the company 50 years or more
and 174 have been there 35 years or
more. Their president, W. C. MacFarlane, is a member of the club.

One of the largest schools in the
country, in the point of enrollment, is
the American Institute of Banking,
according to the report given at the
mid-winter meeting of the A.I.B. ex
ecutive council at Houston. Thirtyfive thousand students are now en
rolled in the Institute and it has 84,000
members. “An experienced and edu
cated staff is just as valuable an asset
as the bonds and loans held by banks,”
said Pierre N. Hauser, vice president,
the First Wisconsin National Bank,
Milwaukee, who is A.I.B. president
this year.
The Institute is shooting for 100,000
members by the time the 50th conven
tion is held in Minneapolis in June
1950.

Eleven cents of every dollar paid

out by an individual or corporation in
taxes are spent for European Aid.
The authority for this is A. M.
Strong, vice president, American Na
tional Bank of Chicago, who also says,
“While we in Chicago and the midwest
contribute a substantial share of the
Aid funds, we are not sharing in the
benefits of the program in the same
proportion as other sections of the
country.” He feels that nations which
receive American Aid should be re
quested to distribute their business
equally throughout the United States.
Gordon Malen, assistant advertising
manager, the First National Bank of
Minneapolis, is now president of the
Twin Cities Financial Public Relations
Association.
Gordon was formerly a newspaper
man in the Twin Cities and during
the war he served in the FBI.

A great many people may not know
that the Central Hanover Bank and
Trust Company of New York has for
20 years maintained a Department of
Philanthropic Information.
During this time, the bank has de
veloped one of the most comprehen
sive libraries in the world to assist
benefactors in wise public giving.
Charles N. Wonacott, for 17 years

treasurer of the Board of National Mis
sions of the Presbyterian Church, has
become associated with the Central

CH AR LES N. W O N A C O T T
Consultant

Hanover as consultant in the field of
philanthropy. He is a middlewesterner, born in Missouri, and was in
business on the west coast for a num
ber of years.
Louis W . Fischer, vice president,
American National Bank and Trust
Company of Chicago, has been elected
director and treasurer of the Evan
gelical Hospital of Chicago.
Mr.
Fischer was elected to succeed the
late Albert Bromann.

According to latest reports, live
stock losses in Nebraska and the Da
kotas in the blizzard area were not
as heavy as first anticipated.
Moreover, with the tremendous
amount of moisture the soil will re
ceive from heavy snows, grain men
and ranchers in both states look for
ward to good small grain crops and
plenty of pastures this year.

DRY FEET—Pedestrians in downtown Omaha have enjoyed the “ radiant heat”
sidewalks around the Omaha National Bank, Omaha. During its remodeling last
summer, the bank installed hot water pipes beneath the surface of the sidewalk.
Now, when it snows, the pipes make the snow melt and the sidewalk stays dry.
It is even warm to the touch. There is no more need for shoveling and scraping,
and the danger of falls is practically eliminated.
N orthw estern

Ba nke r, M a r c h ,

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

1949

Since 76 per cent of our total federal
budget covers national defense, for
eign aid, veterans, and interest on the
national debt, many taxpayers ask
“Where can you cut expenses?”
A recent Cleveland Trust Company
business bulletin answers this point in
this way. “This apparently implies
that it is hardly worth while bother
ing about the remaining 24 per cent
(which amounts to $9,935,000,000). Ac
tually there is plenty of room for sub
stantial savings through more efficient
operation of functions included in
(Turn to page 36, please)

"H o w W e Plan to
in crea se Our Hank
Earninijs in 1 0 4 0 "
A NORTHWESTERN BANKER
Survey
TO PROMOTE YOUR BANK, make calls on all new
arrivals in your community, acquaint them with your
town, and try to make them glad they moved there.
A bank should be on its toes constantly to improve its
public relations.

HE following comments f r o m
bankers on the subject “How We
Plan to Increase Our Bank Earn
ings in 1949,” conclude the series on
this subject which began in the Janu
ary issue or the N orthwestern B anker.
In the three installments on this im
portant topic, including this issue, the
N orthwestern B anker has published
the ideas of 50 bankers from various
parts of Iowa, Minnesota, Nebraska,
North Dakota and South Dakota.

R. M. Messerschmidt, president, First
National Bank, West Des Moines, Iowa:
“ I believe that bank earnings, gener
ally speaking, have been quite satisfac
tory and I do believe that the time is
right here on us to think more about
keeping the assets of our banks in
good shape, rather than increasing the
earnings. These are the days where
the seed is sown which may cause
trouble later on.
“When prices are constantly increas
ing and every one is making money,
loans usually work along very nicely,
providing any care is used at all. But
when prices decline, the situation be
comes different. Debts contracted with
corn at 50 cents per bushel and paid
with corn at $1.50 per bushel are one
thing and debts contracted with corn
at $1.50 per bushel and paid with corn
at 50 cents per bushel are vastly differ
ent. I am not nearly so much concerned
with more earnings as I am in keeping
the note pouch in good shape.”
Vernon Rice, Cashier, The Commer
cial National Bank, Grand Island,
Nebraska: “ In this connection we
have in mind the increasing of loans
and also an increase in the interest
rates. We believe, however, that strict
attention should be given to the type

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

“We do not propose to be aggressive
in the loan field as our demand is like
ly to continue strong if prices decline
further. Our commercial loans show
some material increase, but our real
estate and residential loans have re
mained fairly constant over a period
G.
L. Hill, cashier, Sac City State of about a year.
“We have previously installed a new
Bank, Sac City, Iowa: “ In view of
the continued increase in this bank’s service charge schedule which has
earnings during the last few years, materially increased our income from
up to and including 1948, whereas that source and we have found two or
many of the larger banks have shown three mediums of miscellaneous in
a decline in net earnings, we feel that come which we will attempt to de
possibly we have reached a peak in velop in coming years, but they will
our earnings and that our trend may not be of a major nature at this time.
“ In view of this picture of possibly
now be slightly downward as our op
eration follows the trend of the larger reduced income from loans during the
coming years, we may find that much
institutions.
“ It hardly seems conceivable at this effort will be made to streamline and
point that we would expand our loan mechanize our internal operations to
volume a great deal beyond our pres develop a more efficient operation and
ent totals of approximately $1,300,000 thereby effect a greater corresponding
in loans, which include about $300,000 net result. Steps in that direction
in Commodity Credit loans, with total have already been taken through the
resources in the neighborhood of $3,- installation of such equipment as new
400,000. With the large volume of posting machines, central proof ma
Commodity Credit loans which are chine, Recordak and electric endorser.
“ Frankly, we will be well satisfied if
being made by our farmers, we have
had a sizable amount of higher inter we come reasonably close to our net
est loans paid which will materially earnings of the last couple of years
affect our earnings during the coming at the close of 1949.”
(Turn to page 86, please)
months.
of loans taken and those loans which
are already held. If care is given in
this connection the earnings will nat
urally take care of themselves through
a minimum of losses. We do not want
to be too ambitious for new loans.”

“ In 1 9 4 9 we are planning an organized personal visit to each
of our present customers, and prospective customers, in our area.
I believe in this way we can increase our insurance commissions,
productive loans, and other sources of income. And at the same
time we will be creating a more friendly business relationship.
Such a plan should he well worth the time and effort.”
F. E. HANSEN, Cashier,
State Bank o f Kenneth,
Kenneth, Minnesota.
N orthw estern

Ba n ke r, M a r c h ,

1949

Bankers You Know

Frank /> . K in g
President
California Bank
California Trust Company
Los Angeles
“Believes in calling on the customer first”

M ID W E S T E R N b a n k e r who
went west and made good in a
big way is Frank L. King, president
of the California Bank and California
Trust Company of Los Angeles. If
any one word could be singled out to
describe the philosophy he has fol
lowed in his 32 years of banking ex
perience that word probably would
be “ service.” Fellow-workers of Mr.
King can attest to the fact that this
one-word description covers a vast
field of activity in the more than
three decades that have passed since
he started working for his home-town
hank at the age of 19.
Born in Sparta, Illinois, on August
5, 1897, Mr. King completed grade
and high school education there, at
tended Northwestern School of Com
merce in Chicago, then hustled back
to Sparta to begin working for the
First National Bank in 1916 as assist
ant cashier. He has been hustling
ever since, leaving no stone unturned
in his search for efficiency, economy
where possible, new ideas in banking
and new business.
After leaving the bank in Sparta,
he spent a year in the Army in 1919,
and in 1920 became a national bank
examiner. In 1925 he joined the
N o r t h w e s t e r n Ba n ke r, M a r c h ,

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

1949

Mutual National Bank of Chicago as
assistant cashier and was transferred
to the old Continental National Bank
and Trust Company of Chicago in
1928 as assistant comptroller. When
the latter institution merged with the
Illinois Merchants Trust Company he
became comptroller of both banks,
the name being changed to the Con
tinental Illinois National Bank and
Trust Company.
Mr. King moved ahead rapidly in
the Continental Illinois organization
when his splendid work was contin
ually noticed by the bank’s senior
executives. In 1929 he was elected
comptroller of the Continental Illi
nois Company, the security affiliate
of the bank, and later secretary and
treasurer.
In this connection he
gained invaluable knowledge in the
underwriting of securities and the
problems of investment companies.
In 1930 he was elected comptroller of
the Continental Illinois National
Bank and Trust Company. When
Congress decreed the divorcement of
security affiliates from commercial
banks, Mr. King remained as com p
troller of the bank and in 1931 also
assumed the same duties with the
Continental Illinois Safe Deposit Co.

In 1943 the late Arch W. Anderson,
at that time president of California
Bank but previously associated with
Mr. King at the Continental Illinois,
persuaded Mr. King to move to Cali
fornia as executive vice president and
director of California Bank. With
typical “ King” foresightedness and
thoroughness, he investigated south
ern California’s prospects and the
local bank’s prospects first, then de
cided there was a great future in store
for both and made the change.
At the annual meeting in 1945, Mr.
King was elected president when Mr.
Anderson became chairman of the
board. Since Mr. Anderson’s death a
year later, Mr. King has been chief
executive officer of the hank, remain
ing as president.
Throughout all his years of close
attention to details of business, Mr.
King’s foremost concern has been for
the customers the bank serves. He
believes in calling on the customers
before they come into the bank and
he insists that this policy be carried
out by junior and senior officers of
California Bank. Calls on corre
spondent banks, business houses and
industry are constant, not only for

(Turn to page 52, please)

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

f e

(l}& a A tL . (fa f£ > .............................

a latch string, hanging on the outside of a door, signified a friendly
home— a home that would greet you with a warm-hearted weleome and
true hospitality.

J djcLcu^

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

although the latch strings have been gone for many, many years,
we extend to you that same warm-hearted welcome, that same sincere
hospitality at our bank.
in a sense, our latch string is always out.
W e d like to see you more often. W e'd like to feel that The Omaha
National Bank is your “ headquarters’ when you are in Omaha.

A»*-- f

Tri

The Omaha
National Bank
FAKNAM

SEVENTEENTH

N orthw estern

Ban ke r,

M arch,

1949

LEGAL

Can F orm er Hank E m p loyes
He Told W h ere T h ey Can W o rk ?
Q.

Puckley went to work for an
Oklahoma bank as cashier. As an in
cident to getting the job he entered
into a written agreement with his
employer which provided that on the
termination of his employment he
would not, within two years, work
for any other bank in the county.
His employment terminated and he
forthwith went to work for another
bank not only in that county but in
the same city. His first employer
sued to enjoin him from doing so.
Should such employer prevail?

No.
Oklahoma, North Dakota,
South Dakota, Alabama and California
have statutes providing that every
contract by which any one is re
strained from exercising a lawful pro
fession, trade or business of any kind
is, to the extent that it does so, void.
The Oklahoma Supreme Court, in a
recent case of first impression in that
state, has held that under such statute
an employer situated similarly to the
first employing bank mentioned in
the question cannot prevail in an in
junction along the lines of the one
outlined.

This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT
of the
NORTHWESTERN BANKER

Q . A French citizen came to this
country in 1940, having on deposit
here some $500,000 in listed stocks.
In 1941 he created a trust for his
minor child.
To do this he sold
$250,000 worth of securities, bought
U. S. government bonds with the
funds, transferred them to the trus
tee, and, within a few days thereafter,
had the trustee sell the bonds and in
vest the trust funds in better income
paying stocks listed on the Big Board.
He was never in business in this
country, and, as to such aliens, the
statutes provided that federal gift
taxes should not be applicable to gifts
of U. S. government bonds. Was a
federal gift tax payable on the $250,000 contribution to the trust?

Colton, a Minnesota banker, was
named executor of the will of a de
ceased friend which provided that his
“household goods and effects” should
go to a certain beneficiary. The prob
lem arose of whether this covered
simply the furniture of the house or
whether it included other household
items as well. There was nothing in
the will defining what the testator
meant by his use of the words or
which could be made a basis of de
termining any specific intent regard
ing them. Should the beneficiary re
ceive only the furniture?

Yes. While a taxpayer may act so
as to decrease his gift taxes to the
extent that the law allows him, action
under the statute here involved had
to represent a true investment in tax
exempt securities and not simply a
temporary transfer w h i c h w a s
promptly terminated as soon as the
desired object of tax avoidance was
thought to be accomplished. The in
vestment in government securities
represented only temporary expedi
ents which were adopted with no real
thought of investment but merely of
tax exemption. It follows that a fed
eral gift tax on the conveyance to the
trust was due and payable.

No. The bequest of “household
goods and effects” included not only
household furniture but everything
else in the house that was usually
held and used by the occupant to lend
to the comfort and accommodation of
the household. The Minnesota Su
preme Court has so held in a recent
proceeding, citing decisions from Illi
nois and elsewhere as precedents for
its ruling.

O - Brown, an Iowa banker, owned a
160-acre farm in that state. A railroad
company sought to run a line of tracks
through the center of it and, as an
incident thereto, asserted in condem
nation proceedings that it was liable
to reimburse Brown only for the reas
onable value of the number of acres
covered by its right of way. Should it
be sustained in such an assertion?

N orthw estern

Ban ke r, M a r c h ,

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

1949

No. The fair value of the number
of acres taken by the railroad for its
right of way in the circumstances out
lined is not the measure of the dam
ages to which the owner is entitled.
The inconvenience and the damage
to the land as a whole, that is, to the
entire tract’s market value is the
criterion. The Iowa Supreme Court
so pointed out in a recent decision.

Clayton, a Nebraska banker, let
Borden use his automobile. Later he
asked him to return it and, when it
was not forthcoming, brought a replevin action against Borden for its
recovery. Borden, a shiftless soul,
had, before Clayton asked him to re
turn the car, let it get out of his pos
session and control in that he had
passed to another the privilege of
using it. Could Clayton, in such cir
cumstances, recover from Borden a
judgment for either the car or dam
ages in the replevin proceedings?

No. In an action of replevin, the
inquiry is concerned with the prop
erty in possession of, and wrongfully
withheld from the plaintiff, by the de
fendant at the commencement of the
suit. There can be no recovery of
property or of damages by the plain
tiff in this type of suit for property of
which the defendant had not posses
sion or control when the case was
begun.

-f

. Willis, a Texas banker, leased a
building owned by him in that state to
Moore for five years. The lease con
tained a provision that it might be
“renewed” for an additional five year
term on thirty days’ notice. The notice
was appropriately given and Moore
continued to occupy the premises. He
did not demand and execute a new
lease but treated the old lease as ex
tended. In such circumstances did his
leasehold interest in the property
terminate at the end of the first five
years?

No.
In Texas no distinction is
drawn between the terms “ extension”
and “renewal” used in a lease. In the
absence of an express provision that a
(Turn to page 88, please)

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

Your
Government Bonds

AS an aid in handling portfolios o f United States GovernZ

ment securities, we send our correspondent banks a

weekly quotation sheet, buy and sell government securities
as agent without fee and if requested hold the securities in
safe keeping without charge.
This is one of many facilities we have developed from
an experience of more than three-quarters o f a century as
Chicago correspondent for hundreds o f Middle West banks.
W e shall be pleased to explain these facilities in full detail.

t f /t e

LIVE STOCK
BA N K

r jiu / m n « /

E S T A B L IS H E D

U N IO N

1868

STO C K YARDS

M em ber Federal Deposit Insurance Corporation
N arthw esfern

Ba n ke r, M a r c h ,

1949

Window Displays
Irving Trust Company, New York,
at its 48th Street and Rockefeller Plaza
Branch Office, is introducing a novel
window display featuring a series of
three-dimensional, illuminated exhib
its or “dioramas” dramatizing its bank
ing services. A decided departure from the usual
type of bank advertising, the exhibits
were conceived and executed under
the direction of Edward H. Burdick,
designer of the Freedom Train, and
other outstanding visual education ex
hibits.
The complete display consists of one
large “theme” diorama and eight small

“service” exhibits set off in individual
shadow box frames of gray pickled
oak, with transparent lucite faces
upon which brief advertising copy is
engraved. The exhibits themselves
are scaled, lifelike reproductions of
various scenes, people and situations,
modeled and painted in full color and
perspective.

law firm of Milbank, Tweed, Hope &
Hadley. A graduate of Williams Col
lege, 1923, and Harvard Law School,
1926, he resides in Rye, New York,
where he was a member of the city
council, 1940-43, and mayor, 1944-47.
He was president of the R3?e Commu
nity Chest in 1940 and has continued
as a director.

Vice President

New Sidewalk Service

Grenville S. bewail has been ap
pointed a vice president of the Chase
National Bank and will serve as asso
ciate legal counsel, it was announced
by Winthrop W. Aldrich, chairman.
Mr. Sewall has been a partner in the

Something new in service to its
customers has recently been installed
by the Rock Island, Illinois, Bank &
Trust Company. The installation is
a combination of sidewalk commercial

(

MANY MIDWESTERN BANKERS,
W H O S E C U S T O M E R S SH IP
L IV E S T O C K T O

C H IC A G O ,

R E C O G N IZ E THE G EN U IN E
UTILITY OF DROVERS FRIENDLY
SERVICE HERE IN THE ‘YARDS’
AT THE CENTER OF THINGS.

Sidewalk tellers windows and
night depository. A part of the
depository installation shows behind
the lady customer.

teller windows and floodlighted night
depository.
The Rock Island Bank & Trust Com
pany is located on a corner; in fact,
the building has a street on two sides
and occupies the “flatiron” of the en
tire area. Part way down one side of
the building, opening into the rear
quarters of the bank, they have placed
duplicate tellers’ windows on the side
walk, between which is placed the
night depository, the latter under
floodlight during the hours of dark
ness.

Stock Dividend
Members, Federal Deposit Insurance Corporation

N orthw estern

Banke r, M a r c h ,

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

1949

A 20 per cent stock dividend was
recommended to stockholders by the
board of directors of Bank of America.
Upon approval of stockholders and
the Comptroller of the Currency, this
action will result in the transfer to
capital from undivided profits, which
on December 31, 1948. amounted to
$62,872,254, of $21,329,275. This is less
than the amount which was added to
capital funds from 1948 earnings. The
result will be to increase capital from
$106.646,375 to $127.975.650.

------------Electricity makes the difference!
SAVES TIM E : The fast, easy electric action of the
distinctive finger fitted keyboard on the new Reming
ton Electric DeLuxe has been designed to allow flying
fingers to flow smoothly over its keys—turning out
more work, better work in less time.
SAVES WORK: Since operation is completely elec
tric on this new Remington, gone forever are the
laborious hand carriage return—the pounding of
typewriter keys— time consuming hand spacing.
[Through the electrification of the carriage return

T^mùujtôn TZgtuj

alone, the typist eliminates countless fatiguing hand
operations every day.
SAVES MONEY: Scientific studies reveal that an

increase of 10% or more in typing productivity re
sults from each typing station in your office equipped
with this superb new typewriter.
Why not send for the free full color illustrated
brochure “ New Profits Through Electricity.” It will
show you how to start saving today—by decreasing
office costs and increasing typing production—the
electric way.

DEPT. D-3, 315 FOURTH AVE.
NEW YORK 10, N. Y.
Send me a FREE copy.

THE

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

FIRST

NAME.............................................................
NAME

TYPEWRITERS

COMPANY......................................................
ADDRESS.........................................................
CITY.................... ...............................................ZO N E.......... STATE....................................
Rem ington Rand Inc.

N orthw esfern

Ban ke r, M a r c h ,

1949

Drovers National Prom otes Five
Four officers were promoted and a
new member added to the bank’s offi
cial family when directors of the Drov
ers National Bank, Chicago, met early
last month.
Frank M. Covert and Robert Lough

were promoted from assistant vice
president to vice presidents; Leo R.
Gruber, cashier, was elected vice presi
dent and cashier, and Fred D. Cum
mings was moved up from assistant
cashier to assistant vice president, it

was announced by George A. Malcolm,
president. The new official is Wesson
S. Hertrais, who was elected assistant
cashier.
Frank Covert, in charge of Drovers’
Correspondent Bank division for many
years, is well known by bankers
throughout the midwest. He con
tinues to head the division.

R O B E R T LO U G H
Vice President

FRANK M. CO VERT
Vice President

LEO R. GRUBER
Vice President and Cashier

MAKE INVENTORY LOANS SECURED BY OUR

WAREHOUSE RECEIPTS

Your Bank can make safe, sound loans against a customer's
inventory, when secured by our Warehouse Receipts.
The inventory may remain stored on the customers' premises.
For added safety and protection in making loans, and to
permit larger lines of credit, suggest that your customers
make use of St. Paul Terminal's Field Warehouse services.
We Invite You To Consult With Our Experienced Representatives

St. Paul Terminal Warehouse Co.
DES MOINES OFFICE

N orthw estern

511 Iowa-Des Moines
National Bank Bldg.

OMAHA OFFICE
1105 First National
Bank Building

T. C. CANNON
District Manager

Telephone
Atlantic 9611

Ban ke r, M a r c h ,

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

1949

425 East 8th Street, St. Paul, Minnesota
OFFICES ALSO LOCATED IN
MINNEAPOLIS

MILWAUKEE

CHICAGO

DETROIT

27
Robert Lough, promoted to vice pres
ident, continues in charge of the im
portant bank investment division, a
post he has held for many years.
Leo R. Gruber, a member of the
Drovers staff since 1926, served as
auditor and comptroller before being
elected cashier in 1945. He is now
vice president and cashier.
Fred D. Cummings, one of the
younger members of the bank’s official

FRED D. CU M M IN G S
Assistant Vice President

family, will continue in the corres
pondent bank division. Since; joining
the staff in 1930, Mr. Cummings has
gained wide acquaintance among midwestern bankers.

S prompt, efficient collection of
W isconsin checks and drafts

important to you?

Do you ever need first-hand

facts about sources of supply in W isconsin? . . .
credit inform ation? . . . market data? . . . who’s
who ?
W hatever your requirements — routine bank
ing service, special information, or off-the-beatenpatli assistance — the chances are that the facil
ities, long experiences and statewide contacts of
the first W isconsin National Bank of Milwaukee
can supply the answer.
This bank is the largest in the state . . . 27th in
size among all hanks in America . . . and over
90 per cent of the hundreds of banks throughout
W isconsin are First W isconsin correspondents.

W E S S O N S. H E R T R A IS
Assistant Cashier

Wesson S. Hertrais, the newest mem
ber of Drovers’ official family, will

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

•Member o f■
the Federal Deposit
Insurance Corporation

FIRST WISCONSIN
NATIONAL BANK
OF MILWAUKEE
N orthw estern

Ban ker, M a r c h ,

1949

28
head the new business division. His
background of experience and training
includes a master’s degree in business
administration from Harvard, a term
as an official of a bank in New Hamp
shire, and wartime service with the
Navy.
Active management of the Drovers
National Bank of Chicago and Drovers
Trust and Savings Bank continues un
der the supervision of George A. Mal
colm, president, and two senior vice
presidents, Frederick N. Mercer and
Dale E. Chamberlin.
Drovers National Bank was estab
lished in 1882 to serve every branch
of the livestock industry. From the
first it featured highly specialized serv

ice to correspondent banks, packers
and livestock commission firms. To
day, due to the vast increase of its
industrial area, the Drovers serves a
wide field and meets all the Chicago
requirements for hundreds of midwestern banks. The Drovers Trust
and Savings Bank was organized in
1902. The December 31, 1948, state
ments of condition showed combined
resources of over $100,000,000.

president, Continental Illinois Nation
al Bank & Trust Company, was elected
vice president. Charles H. Albers was
re-elected manager.
Paul S. Russell, president, Harris
Trust & Savings Bank, was elected

Heads Clearing House
David H. Reimers, president, Live
Stock National Bank, was elected pres
ident of the Chicago Clearing House
Association at the recent annual meet
ing. Herman Waldeck, executive vice

D A V ID H. R EIM ER S
President, Chicago Clearinghouse

1 • What bank is known
as the Pioneer 24-Hour
Transit Bank?

What bank sends
more items direct for
c o lle c tio n than any
other commercial bank
in the U. S.?

3 . What bank has a
Private W ire System to
all principal financial
centers?

- 1 . What bank supplies
accurate Credit Reports
from files carefully
maintained during 83
years o f operation ?

O . What bank has over
1350 correspondents in
42 states ?

G . W h at bank has
the oldest and best
equipped Foreign De
partm ent in Kansas
City?

7 . W h a t b a n k is
known as the Banker’s
Bank ?

8 . What bank has a
reputation for saving
from one to three days
on a great many transit
items?

9 . What bank is fa
mous as the "Transit
Cross R oads o f the
Nation” ?

I O . What bank has a
Special Department to
help with matters not
included in the regular
routine o f banking?

1 1 . W h at bank has
won an outstanding rep
utation for quick presen
tation o f both country
and city collections?

1 2 . W h a t b a n k is
noted for p r o v id in g
correspon den ts with
every banking service
known to the industry?

Y ou 're

right!

the a n s w e r

to all

the

q u e s t i o n s ...........

(ommerceprust (ompany9
C a p ita i 3 u n á s C x c e J

22 M / L

ïb J L

KANSAS CITY'S LARGEST
BANK
MEMBER FEDERAL DEPOSIT
Established 1865

N orthw estern

Ban ke r, M a r c h ,

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

1949

INSURANCE CORPORATION

chairman of the clearing house com
mittee and Solomon A. Smith, presi
dent, Northern Trust Company, was
elected vice chairman.
Other committee members elected
are E. E. Brown, board chairman of
the First National Bank: W. J. Cum
mings, board chairman, Continental
Illinois National Bank, and Philip R.
Clarke, president, City National Rank
& Trust Company.

Retire
Eight persons were retired recently
from the bank staff of the Northwest
ern National Banks of Minneapolis.
They were honored at a Twenty Year
Club party where they received a fond
farewell from the Twenty Year Club
members and, as a token of esteem,
a solid gold ring.
The honored persons were: Fred
H. Sandberg, assistant cashier and
manager of the Foreign Exchange De
partment. who has been with the bank
43 years; James W. Groves, assistant
vice president, with 41 years of serv
ice; F. H. Hedtke, teller, 40 years; Melburn L. Dean, installment loan officer,
30 years; W. L. Simpson, manager, safe
deposit department, 23 years; Jalmer
Jensen, guard, 21 years; Lloyd Hostet
ler, auditor and tax accountant, 20
years, and Harlan D. Barry, install
ment loan officer, 20 years.
Their years of service totaled 238.
Members of this club total 10,196 years
of service at the Northwestern Banks
of Minneapolis.

Special Meeting
A special meeting of the sharehold
ers of the Bank of America was held
this month in San Francisco, to
vote upon a proposal to increase the
capital stock of the bank by payment
of a common stock dividend to the
shareholders on the basis of one share
additional for each five shares owned.
The proposal was made by the board
of directors at its regular meeting of
February 8th. Approval by the share
holders will result in increasing the
common capital structure of t h e
bank from $106,646,375 to $127,975,650
through the transfer of $21,329,275
from undivided profits. Total over-all
capital funds at December 31, 1948.
stood at $284,184,798.

Heads Council

Edward E. Brown, chairman of The
First National Bank of Chicago, was
re-elected president of the Federal
Advisory Council of the Federal Re
serve System for 1949 at a meeting
held last month.
Other officers elected are:
First vice president, Charles E. Spen
cer. Jr., chairman of the board, The
First National Bank of Boston; sec
ond vice president, Robert V. Fleming,
president and chairman, Riggs Nation
al Bank of Washington, D. C.
Directors elected are:
W. Randolph Burgess, chairman of
the executive committee, The National
City Bank of New York.
Frederic A. Potts, president, The
Philadelphia National Bank, Philadel
phia.

Sidney B. Congdon, president, The
National City Bank, Cleveland, Ohio.
The above six constitute the execu
tive committee of the council.
Herbert V. Prochnow, vice president
of The First National Bank of Chicago,
was elected secretary.

Plans are in the making for the
twelfth annual reunion of The Gradu
ate School of Banking alumni, which
is to be held in New York on Satur
day, March 19th, at the Hotel Biltmore, it was announced by John W.
Arthur, Jr., of the Bank of New York
and Fifth Avenue Bank, who has been
appointed chairman of the committee
on general arrangements. The class
of 1947, of which G. Russell Clark is
president, is in charge. Mr. Clark is
manager of the New York Clearing
House.
The reunion program will follow
the annual spring luncheon confer
ence of the faculty of the school. The
committee has plans for a series of
conferences beginning at 3:00 o’clock,
covering Commercial Banking, Invest
ments, Trusts and Savings Bank Man
agement.

Dividend
The board of directors of The First
National Bank of Chicago, at their
regular February meeting, declared a
dividend of $2.00 per share on the capi
tal stock of the bank, payable April
1, 1949, to stockholders of record
March 24th; also a dividend of $2.00
per share, payable on July 1, 1949, to
stockholders of record June 23, 1949.

to provide their Chicago
accounts with com plete banking service, in a
prom pt, efficient manner. Our facilities are at
your disposal.

C it y National B an k
A N D T R U S T C O M P A N Y o f C h ic a g o
SOUTH

( MEMBER

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

FEDERAL

LA S A LL E
DEPOSIT

(ùh. Û. lx). ßhadßtfuL

Alumni Meeting

)

208

Presenting

STREET

INSURANCE

CORD. )

R etirin g P r e s id e n t
FIRST NATIONAL BANK
LACON, ILLINOIS
After serving approximately twenty
years as President of the First National
Bank of Lacon, Illinois, Dr. Bradford
announced his retirement on November
1, 1948. He explained that the bank
had lost two directors by death since
the first of the year and with one ex
ception he, at 76 years of age, was the
youngest remaining director. Dr. Brad
ford felt the necessity of getting the
management of the bank into younger
hands.
With that thought in mind he contacted
the Bankers Service Co. After some cor
respondence, and upon the recommenda
tion of one of his correspondent banks,
he invited the president of Bankers
Service to call for a personal confer
ence. At this meeting he and his asso
ciates authorized us to provide a pur
chaser
for
the
controlling
stock.
Negotiations were conducted in a very
quiet and confidential manner without
any of the citizenry becoming aware
of, or even suspecting what was taking
place. The announcement November 1
that he and others had sold the con
trolling stock to Gerry D. Scott of
Wyoming, Illinois, and Wilford A,
Nelson of Allison, Iowa, came as a
complete surprise to the community.
Mr. Scott is now president and Mr.
Nelson is executive vice president.
The year-end statement of the bank
shows $50,000 capital, $125,000 surplus,
$71,766 in undivided profits and reserve
and $2,936,865 in deposits. It is one of
the oldest national banks in Illinois.
If, because of advanced age, ill health
or other reasons, you are thinking of
selling your bank, we invite you to
confer with us in confidence with the
assurance that no one will be told of
your plans until you have authorized
us in writing to do so.

Bankers Service Co.
HENRY H. BYERS, President
HARRY B. GIPSON, Vice President

Ban ke r,

M arch,

1949

A N M A L IN V E STM E N T STK VE Y

Hoir Hanks A r c
in vestin g Their Funds
Results of a Survey Made Among Banks of the
Middlewest on What Types of Securities Make Up
Their Investment Portfolios
A NORTHWESTERN BANKER
SURVEY
bond holdings in
banks of the middlewest con
sist largely of maturities of two
years or less, while tax exempt and
revenue issues in these same port
folios show the largest percentage in
the two-to-five year bracket, according
to a survey just completed among
banks in Iowa, Minnesota, Nebraska,
North Dakota and South Dakota. This
survey is made annually by T he
N orthwestern B anker, and the results
published in the March issue of each
year.
On this and the opposite page are
charted the answers bankers made to
five questions relating to their bond
portfolios. To permit pin-point analy
sis, banks were divided into three de
posit groups or classifications—those
with deposits under $2,500,000, depos
its of $2,500,000 to $5,000,000, and de
posits of more than $5,000,000. Refer
ence to the “Key to Charts” appearing
on this page shows the three different
styles of bars used in the charts, with
each bar applying to a deposit classifi
cation.
overnm ent

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

Up to
$2,500,000
Deposits

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

In Chart One is portrayed the
sources from which bankers receive
their investment information. Re
lated to this analysis are Charts Two
and Three, which show some of the
reasons bankers gave for their selec
tions. From bankers who selected
other sources of information than

charted here, a few comments were
as follows:
Investment services—“We get bet
ter service.” . . . “This gives us a
chance to study our own investment
problem.” . . . “They help us to keep
abreast of the trends.” . . . “We have
confidence in the experience of suc
cessful men.” . . . “ Coming to my desk,
it permits me to study at my own
convenience.”
Investment counsellor—“They have
no bonds to sell.” . . . “Am well ac
quainted with members of the firm,
and they are financially responsible.”
. . . “Get very good service and compe
tent advice.” . . . “An investment coun
sellor has nothing to sell, and makes
it his business to study trends.” . . .
“They are considered to be impartial.”
Use own judgment—A number of
bankers replied they used their own
judgment in making their investment
purchases, getting their information
from various sources, and not a few
said they relied on investment arti
cles appearing in T he N orthwestern
B anker to guide them. “We read arti
cles in your publication, T he N orth
western

1— Upon Whom Do You Rely the Most for Advice on Your
Bond Portfolio?
Correspondent
Bank

Bond House
Representative

Investment
Services

Investment
Counsellor

Own Advice

85%

11%

15%

9%
6%
H 3%
.1111

3% EE
N orthw estern

Banke r, M a r c h ,

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

20%

1949

B anker . . . T he N orthwestern

has some mighty good ar
ticles.”
A large majority of the bankers re
plying to the questionnaire appear to
be well satisfied with the investment
information su p p lie d by whatever
source they are using, according to
Chart Four, where 85 per cent of
them report the service received is
satisfactory. Some comments of the
few who could use additional help
are: “Would like to have a rating
on all the smaller municipals in Iowa
and surrounding states.” . . . “Cor
respondent banks should make a closer
study of municipal bonds, and be able
to advise us.” . . . '“Would like to
have price on Governments pegged
at par.” . . . “More insight, more fore
sight, and more brains.” . . . “Advice
as to when the market will drop.” . . .
B anker

31
“ More information on good corporates
and general revenue bonds that would
increase the earnings of banks.” . . .
“More information from the FDIC
and the state banking department—
they give you advice when you get in
trouble, but not before.”
Chart Five, relating to maturities
diversification, shows much the same
bracket trend for the three deposit
classifications, with the exception of
the small banks, which seem to have
most of their tax exempt and revenue
issues in shorter term than banks of
larger deposits.—The End.

4— Would You Like More
Investment Assistance Than
You Are Now Receiving?
(Composite of all banks)

Service
Satisfactory

Could Use
Additional Help

85%

5— How Are the Bonds in
Your Portfolio Diversified
as to Maturities?
Governments
2 yrs. or less 42%
2-5 years
32%
5-10 years 16%
Over 10 yrs. 10%

Tax Exempt and
Revenue
2 yrs. or less 40*%
2-5 years
25%
5-10 years 22%
Over 10 yrs. 13%

= 2 yrs. or less
z=E 2-5 years
5-10 years
== Over 10 yrs.

47%
31%
14%
8%

2 yrs. or less 26%
2-5 years 33%
5-10 years 28%
Over 10 yrs. 13%

2 yrs. or less
2-5 years
5-10 years
Over 10 yrs.

48%
31%
14%
7%

2 yrs. or less
2-5 years
5-10 years
Over 10 yrs.

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

32%
36%
24%
8%

2— Why Bankers Prefer Their Correspondent Connection as
Their Chief Source of Investment Information
1—
2—
3—
4—
5—

Suggestions and inform ation have proved to be reliable
They are well qualified to give investment inform ation
Correspondent is interested in the welfare o f tlie smaller bank
Many times it is m ore convenient to deal directly with correspondent
Problem s o f the country and city banks are m uch the same

3— Why Bankers Prefer an Investment House as Their Source
of Investment Information
They have close connection with various markets and exchanges
An investment bouse can provide all necessary statistical inform ation
They have many years o f experience in analyzing bank invest
ment portfolios
4— Because o f personal acquaintance and friendship

1—
2—
3—

Cash Paym ents to the Public
HE recent report of the Council of

T Economic Advisers to the President
indicates that Federal, state and local

government cash payments to the pub
lic in the calendar year 1949 may reach
the staggering sum of $61 billion, ac
cording to an article in the February
issue of Business Comment, bulletin of
The Northern Trust Company.
This sum, which almost equals total
national income in 1936, is made up
of over $44 billion of Federal spending
and almost $17 billion of state and lo
cal spending. The total is more than
$9 billion higher than in 1948, the
article points out.
“Whereas the Federal government
had an excess of receipts over pay
ments of better than $8 billion in
1948,” the article states, “the outlook
is for a small Federal cash deficit in
this calendar year. State and local
governments had a deficit of almost $1
billion in 1948, and the deficit is ex
pected to be larger in 1949.”
Stating that these developments in
government finance have a pr®found
influence on the national economy, the
bulletin goes on to point out that, on
a fiscal year basis (years ending June
30th), the cash budget shows a con
tinuing but sharply diminishing sur
plus for the fiscal years 1948, 1949 and
1950. The realized or estimated cash
surpluses are $8.9 billion, $2.8 billion
and $1.5 billion, respectively, but the
bank adds that “all the estimates as
sume that present high levels of em
ployment and incomes will continue at
least to mid-1950. Should incomes de
cline and unemployment increase, re
ceipts will be less and payments larger
than those on which the above figures
are based.”
The $9 billion expansion in the flow
of government payments and the
sharp change from a large surplus in

1948 to a deficit in calendar 1949 may,
according to the bank, “have a deter
mining effect on the trend of busi
ness activity, on bank deposits, and
on Treasury financing methods.” The
larger government expenditures will
have a diffused impact on business.
Some expanded programs, such as air
craft procurement, stockpiling of stra
tegic materials, public housing and
public works, will effect primarily the
heavy industries.
“On the other hand,” the bulletin
states, “Federal aid to education, larg
er social security benefits, support op
erations in farm commodities, and the
dividend on national service life insur
ance will increase the incomes of indi
vidual recipients. The effect on indi
vidual spending or saving patterns will
be diverse.”
The supporting effect on various
markets of larger government spend
ing and payments may be offset by
the discouragement to private enter
prise inherent in the prospect that
present tax rates may be indefinitely
continued if not increased, the bank
points out.
“The adverse effect of high tax rates
has been obscured by the war-created
boom and the large volume of liquid
assets left by the war that could be
drawn upon to finance business capital
as well as consumer expenditures.
When government absorbs 25 per cent
of the net national product as it did
in 1948, the country would seem to be
perilously close to making a funda
mental decision—a decision,” the bank
reports, “whether to rely increasingly
on government as the guiding and
determining factor in the economic
life of the country, or whether to rely
on the choices and decisions of mil
lions of business men and individuals
trying to better themselves and their
families.”
N orthw estern

Ba nke r,

M arch,

1949

Investments

Holds Conference
Manufacturers Trust Company, New
York, acted as host last month to
from two to three hundred hankers
representing its correspondents in the
Second Federal Reserve District at a
one-day conference on current hank
ing problems.
During the morning and afternoon
sessions various officers of Manufac
turers Trust Company spoke on “Cur
rent Banking Problems,” “ Legal Prob
lems Which Develop in Everyday
Banking.” as well as “ Specialized Loan
Services.”
Henry C. Von Elm, chairman of the

board of Manufacturers Trust Com
pany, welcomed the guests and Louis
P. Christenson, vice president and sen
ior loaning officer, presided.

the past four years he has been the
executive secretary of the research
committee of The National Association
of Bank Auditors and Comptrollers.
He has also traveled throughout the

With Central National
J. Ross Humphreys, president of the
Central National Bank in Chicago, an
nounces the election of Alvin J. Vogel
as vice president and coordinator of
administration in the bank’s operating
department.
Mr. Vogel began his career in Chi
cago 23 years ago with the Lake Shore
National Bank and from the first has
specialized in bank operation. During

A L V IN J. V O G E L
Elected Vice President

The vast network of American railroads is essential to the nation’s econ
omy, linking village and city, unifying the country with 225,000 miles
of steel rail built by private initiative.
In the last decade, substantial improvement—not fully recognized—has
taken place in the railroads’ operating and financial structures. Through
a marked reduction of debt and interest charges coupled with a revital
ization and expansion of revenue producing facilities, the rails have
built a firm basis for confidence in their future.
Institutions, banks and individuals desiring interest yields up to 3 }A %
and more, should consider selected railroad bonds. Send without obli
gation for our latest offering list and our up-to-date analysis folder,
“ The Investment Merits o f Selected Railroad Bonds."

Reading C o m pany
Ref. Mtge. 3l/s% Bonds,
Series D, Due 1995

Ref. & Imp. Mtge. 3Z»% Bonds,
Series H, Due 1973

Chicago, Burlington & Q uincy
Railroad Co.
First & Ref. Mtge. Bonds,
2Zs%, Due 1970

Southern Pacific Railroad
C om pany

First & Ref. Mtge. 3}/t% Bonds,
Series H, Due 2003

Gen’l. & Ref. Mtge. 37/s% Bonds,
Series E, Due 1985

The New York, Chicago
& St. Louis R. R. Co.

Union Pacific Railroad
C om pany

Ref. Mtge. 3% Bonds,
Series F, Due 1986

Ref. Mtge. Bonds, Series C,
2Vi%, Due 1991

HIGH GRADE

First Mtge. Bonds, 234%,
Series F, Due 1996

Inquiries Invited

The Texas and Pacific
R a ilw a y C om pany

Louisville and Nashville
Railroad Com pany

Specializing in

MUNICIPAL
BONDS

REPRESENTATIVE R A ILR O A D BONDS
The Chesapeake and Ohio
R a ilw a y C om pany

country studying bank operations and
addressing groups and conferences on
banking problems. He is a faculty
member of the American Institute of
Banking and a lecturer at the Central
States School of Banking at the Uni
versity of Wisconsin.
The bank’s new program will be
completed in June when it will occupy
two buildings on the site of one which
burned two years ago.

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

H A L S E Y , S T U A R T &, CO.
U 3

SOUTH

LASALLE

N orthw estern

STREET, C H I CA G O

Ban ker, M a r c h ,

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

90 -

1949

35 W A L L

S TRE ET, N E W Y O R K

5 • AND

OTHER

In c .
PR I N C I P A L

CITIES

Phone 3-5189

W h y Bankers Like

Tax Anticipation Warrants
By J. H. RILEY
Vice President
A. C. Allyn and Company, Inc.
Chicago
RECENT news item appearing all times. Police and fire departments the operations of Cook county than
in a Chicago newspaper an must be kept at their maximum of with the other five large taxing bodies
nounced that a group of banks efficiency and the taxing body whose in the county, this outline will cover
responsibility it is to provide the serv the county’s warrant procedure, which
in eastern and mid-western cities had
purchased $60,800,000 Chicago Board ices mentioned cannot postpone it un is similar to the others.
In January of each year, the Board
of Education Tax Anticipation War til the tax bills are sent out and pay
rants, payable from the 1949 tax levies. ment received. It must have funds of County Commissioners has sub
The item was given space on page available to meet its operating ex mitted to it a tentative budget for
that year which has been prepared by
eight or nine, was inconspicuous and pense at all times.
While the legislature gave munici its fiscal officer and in which there is
unquestionably was not read by 1
per cent of the people who purchased palities the right to issue Tax Antici listed the various items of expense
newspapers that day. The item, how pation Warrants, it restricted the and the probable income, as well as
ever, was “big news” to investment amount of warrants which can be is the source of income to meet the ex
bankers who believe in and who have
purchased and sold Tax Anticipation
Warrants of the six major taxing
bodies (Cook County, The Forest Pre
serve District of Cook County, The
City of Chicago, The Board of Educa
H em em ber:
tion of the City of Chicago. The Chi
cago Park District and the Sanitary
“ the sale of Tax Anticipation Warrants bv a
District of Chicago) in Cook county,
taxing body does NOT represent temporary
Illinois.
financing by that body, nor does it represent
The purchase of such a substantial
poor financial administration.
It is an
amount of Chicago Board of Educa
accepted and recognized method of provid
tion Warrants by some of the largest
ing cash to enable the taxing unit to meet
banks in New York, Chicago, Phila
its current expense, discount its bills and
delphia and other eastern and middle
preserve its credit.”
western cities was an excellent in
dorsement of that class or type of
short-term investment and an expres
sion of confidence in the willingness
and ability of taxpayers in Cook coun
ty, Illinois, to pay their taxes prompt sued to 75 per cent of the amount of pected expense. Cook county has
ly. I should like to state at the onset the tax levy and further provided that many sources of income other than
property taxation which contributes
that the sale of Tax Anticipation War all warrants be numbered and retired
rants by a taxing body does not repre in numerical order out of the first about 50 per cent of the total. Fees
sent temporary deficit financing by taxes collected. Before going into the for services rendered by the county
that body, nor does it represent poor procedure which precedes as wrell as recorder, the sheriff, the clerk of the
financial administration. It is an ac follows the issuance of Tax Anticipa probate court, and the licenses issued
cepted and recognized method of pro tion Warrants, perhaps I should at by the county make up the balance of
viding cash to enable the taxing unit tempt a definition of Tax Anticipation income received.
After a public hearing on the budg
to meet its current expense, discount Warrant and that would be “an evi
dence of the holder’s interest in a et, which is attended by interested
its bills and preserve its credit.
In view of the fact that in the state certain year’s tax levy made for a taxpayers and civic groups, the pro
of Illinois one year’s taxes will not stated purpose, which, when collected, posed budget as amended is adopted
and then the exact amount of the
become due and payable until 1950 has been assigned for its payment.”
Tax Anticipation Warrants are real funds to be raised by taxes will be
and then in two installments (May
1st and September 1st) and that ly an interest in tax accounts receiv known.
A tax levy resolution is then passed
year’s expense will become due and able. They comprise a well diversified
payable the same year, our legislature list of accounts, many of which have and a copy promptly filed with the
authorized the issuance of Tax Antici the highest credit ratings in the com county clerk who must have this in
pation Warrants, which provide a mercial and industrial field. Rail formation in order to compute the
means whereby taxing bodies may ob roads, banks, insurance companies and total tax rate. After the tax levy
tain the funds required to carry on well-known individuals, all help to resolution has been passed, the board
their necessary functions until taxes make up the list of those who owe of commissioners may sell warrants
which have been levied are collected. and who usually pay their taxes be in an amount up to 75 per cent of
the taxes levied. Cook county seldom
Schools, hospitals, orphanages a n d fore the delinquent (penalty) dates.
issues warrants up to 75 per cent of
Because we are more familiar with
homes for the aged must be open at

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

N orthw estern

Ba nke r,

March,

7949

Investments

its corporate or highway fund levy.
Usually warrants equal to 60 or 65
per cent of the levy will be the maxi
mum authorized.
In March or April of the year fol
lowing the issuance of the warrants,
the county treasurer will send out tax
bills for all taxing bodies which levy
taxes on property in Cook county. In
cluded in the tax bill will be the tax
payers’ share of the corporate and high
way fund levies made the previous
year. Warrants are usually outstand
ing between 15 and 18 months. As a
rule, they are issued about February
1st of one year and retired between
May 15th and August 15th of the year
following. They have no fixed matu
rity, therefore, no coupons are at

tached. Calls are made in amounts of
$1,000,000 or more as taxes are re
ceived.

One Exception
It was stated earlier that all Tax
Anticipation Warrants must be re
tired in numerical order. There is
one minor exception, which is that a
taxpayer may use a Tax Anticipation
Warrant to pay his share of the tax
levy for which the warrant was issued
without regard to the number of the
warrant. While it is possible to pay
a part of a tax bill with a tax war
rant, it is done very seldom, for the
reason that the vast majority of tax
payers pay tax bills considerably less
than the face value of a tax warrant,
which is from $1,000 to $5,000. The

Municipal Bond
Income
Increases Bank Earnings
T h e yield on municipal bonds
obtained by a bank is income
to keep and is not reduced by
taxes at the end o f the year.
Today high grade municipal
bonds can be purchased within
the 10-year maturity range to
yield as much as 1.50% . A
bank in the “ 53% bracket’ ’
must obtain 3.19% before taxes
to equal this and one in the
“ 38% bracket” must obtain 2.42%. Since 1882
state and municipal financing has been an important
part o f our business. Your inquiries are invited.
INVESTMENT

Organized as N . W . Harris & Co. 1882. Incorporated 1907
TRUST

yield
Warrants are priced to give a fixed
yield to the first probable call date,
which is May 15th. If not called on
that date, the warrant holder would,
of course, receive the interest rate
designated in the warrant until it is
paid. As warrants must be paid in
numerical order, it is obvious that the
lower the number the more certain it
will he paid on or about the first
probable call date, therefore invest
ment houses when determining offer
ing prices naturally put higher prices
on the warrants which will be paid
first.

How They Are Sold
Warrants are not sold by number
but by the percentage of the tax levy
which the warrants represent. To
illustrate:
If the corporate fund tax levy to
taled $15,000,000 and the total war
rants issued w a s $9,000,000, that
amount would represent 60 per cent
of the tax levy.
Assuming the par value of the war
rants to be $100,000, warrants num
bered 1 to 15 inclusive would repre
sent 1 to 10 per cent of the tax levy.

SO U N D

SECURITIES
1* OR 19 years this firm has
aided investors in the selection
of sound securities. Whether
our customers’ accounts are
large or small, each enjoys the
full benefit of our latest infor
mation and statistical data.
Write for our latest investment
suggestions.

DEPARTMENT

Harris Trust and Savings Bank
H A R R IS

average tax bill in Cook county is
about $180 and, as the levy made for
county corporate purpose is about 6
per cent of a tax bill, the county cor
porate share would be $10.80. The
county treasurer cannot take in a
$1,000 or $5,000 warrant on a $180 tax
bill and give the taxpayer the differ
ence in cash, as this would be paying
the warrant, or a part of it, out of
its numerical order, which our stat
ute forbids.

B U IL D IN G , C H IC A G O , 90

T/C/ HENDERSON&CO.
/ fw a ù n e/ ilC À m ti/ cer
ESTABLISHED

M em bers

M em ber F ed era l Deposit Insurance Corporation

Representatives
N EW Y O R K
2 W all Street

N orthw estern

Banke r, M a r c h ,

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

ST. LOUIS
LaSalle Building

1949

SAN FRANCISCO
Russ Building

19 3 0

Empire Building, Des Moines, Iowa
C h ic a g o

S to c k

E xchan ge

T. C. Henderson, P r e s .
E. A. Petersen, V ic e P r e s .
T. J. Landstorfer, V ic e P r e s .
K. C. Shreve, V ic e P r e s .
G. D. K aufm an, V ic e P r e s .
O. D. Penn, S e c r e t a r y
Helen W alker, T r e a s u r e r

Investments
Warrants numbered 16 to 30 inclusive
would represent 10.01 to 20.00 per cent
of the tax levy and warrants num
bered 76 to 90 inclusive would repre
sent 50.01 to 60 per cent of the levy.
When ready for sale our circular
would offer warrants between 1 and
10.00 per cent of the tax levy to yield,
for instance, 1.30 per cent to May 15th
of the year following; warrants be
tween 10.01 and 20.00 per cent to yield
1.35 per cent to May 15th of the year
following, and the final block of war
rants between 50.01 and 60.00 per cent
to yield 1.65 per cent to May 15th of
the year following. As a rule, coupon
rates on the low numbered warrants
will be less than the coupon rates on
the higher numbered warrants.
W7hen delivered the warrants are
accompanied by a legal opinion of rec
ognized bond attorneys who state that
the warrants are valid and legal and
the treasurer is under legal obligation
to pay the warrants in the numerical
order of their issuance as a first dis
bursement of the proceeds of the taxes
when collected and such tax proceeds
may not be used for any other pur
pose until the warrants issued in
anticipation of such taxes are paid.
As the largest amount of taxes
levied are those on real estate and as
real estate taxes may be paid in two
equal installments (May 1st and Sep
tember 1st), it is very unlikely that
the county treasurer will receive by
May 15th sufficient tax payments to
call all the Tax Anticipation Warrants
issued; however, because it is possible
for the county treasurer to receive
such payments by that date, the “bas
ic price” of the warrants sold is com
puted to that date.

Interest received by the holder on
Tax Anticipation Warrants when they
are paid is treated as municipal bond
interest would be treated, as it is ex
empt from the Federal income tax.
Our experience with Cook County
and Forest Preserve District of Cook
County Warrants has been very satis

N ow

A v a ila b le

factory, as the warrants have been re
tired on or near the expected call
dates. Each year an increasing num
ber of banks have become purchasers
and we have found that once warrants
have been purchased by a bank we
can expect to receive repeat orders in
the years to follow.—The End.

R eq u est

fortnightly Tlaw A, commentary
A FREE Investors Service Designed to
Give Busy Bankers and Business Men
Timely and Helpful Information on the
Business Outlook and Market Trends.
SEND FO R THIS SER V IC E T O D A Y

H O L L E Y , D A YTO N & GERNON
Members Chicago Stock Exchange and Chicago Board of Trade

105 SOUTH LA SALLE STREET, CHICAGO 3, ILLINOIS
Phone: C e n tra l 6-0780
M AD ISO N, W IS.

•

FOND DU L A C , W IS.

LA C R O S S E , W IS.
•

•

EAU C L A IR E , W IS.

M IN N EA PO LIS. MINN.

•

W A U SA U . W IS.

Retirement
The order of retirement of Cook
county corporate warrants in the past
few years has been as follows:
The 1944 taxes were due May 1 and
September 1, 1945. The first warrants
were paid May 1, 1945, and the final
payment of warrants was made on
September 4, 1945. The 1945 taxes
were due May 1 and September 1 of
1946; the first payment of 1945 war
rants was made on April 29, 1946, and
the last payment August 24, 1946; the
first 1946 warrants were paid May 15,
1947, and the last on July 21, 1947;
June 1, 1948, was the first payment
date for 1947 warrants and September
13, 1948, the final payment date.
To complete the history of the 1947
corporate fund tax warrants, which
totaled $9,500,000, the dates of call and
amounts called were as follows:
$3,000,000 ............ June 1, 1948
1.000.
000
June 18, 1948
3.000. 000 ........... June 16, 1948
1,500,000
.
August 9, 1948
1.000.
000
September13,1948

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

JAMES C. SHAW

OWEN P. McDERMOTT

S i i aw, McDermott &
INVESTMENT SECURITIES

MUNICIPAL
INDUSTRIAL
RAILROAD
PUBLIC UTILITY
914 Liberty Bldg.
DES

Phone 3-6119
MOI NES

I O W A

N orthw estern

Ban ker, M a r c h ,

1949

Investments

NEWS AND VIEWS
(Continued from page 18)
n

((¿//¿am d /j/d r 9/^

^A/ettt CZ/ov/c Sdoc/ <Sccc/ta*i<fe

^S/icct^o SftocJc <SxcJuw<j^

Underwriters and Distributors o f
Corporate and M unicipal
Securities
L. H. RYAN: I o w a R e p r e s e n ta tiv e
Union Bank & Trust Company Bldg.

Ottumwa, Iowa

/S S ¿fou /Á ífx zffa ,¿¿€ ¿/¿v -e e t
Telephone Franklin 2-4/ 5/

Teletype CG 546

MUNICIPAL BONDS
Iowa

Illinois

CORPORATION BONDS
Public Utility

Industrial
Railroad

ft rite f o r cu rren t list

q u a il

& co.

Davenport Bank Building

Davenport, Iowa

Waterloo Office — Commercial Building
Member Chicago Stock Exchange

both the 76 per cent and the 24 per
cent. This is clearly evident from in
formation already released by the
Commission on the Organization of
the Executive Branch of the Govern
ment. The Commission has pointed
out that the nation is paying heavily
because the Federal government, now
the biggest business in the world, is
not running smoothly; and it supports
this conclusion with detailed facts and
figures.”
In the story of the election of E l l s worth Moser as the new president of
the United States National Bank of
Omaha, in the February Northwestern
Banker, reference was in c o r r e c t ly
made to “ Mr. Ellsworth,” the new
president.
This error, of course, did not trick
our Northwestern B anker readers,
among whom President Moser is so
well and widely known.
The Northwestern Banker, how
ever, did not intend to attribute a split
personality to the new U. S. National
president, even though he is tall
enough to make two average bankers.
Our proofreader is already on his
way to exile in Siberia.
J o h n J . A n t o n , vice president, First
National Bank of Chicago, is evidently
in agreement with an editorial in the
February issue of the Northwestern
Banker. He writes, “ I usually take
time out to take a gander at your
‘Across the Desk from the Publisher.’
Publisher DePuy’s letter to ‘Dear
Eleanor' in your February North
western Banker I thought was par
ticularly good and it just happens to
strike my fancy to the point that I
send my compliments on it.”
\\ i l l i a m
A.
M c D o n n e ll,
president.
First National Bank in St. Louis, ad
dressed a meeting of the Little Rock,
Arkansas, Chamber of Commerce re
cently on: “The Business Outlook for
1949.”

California Bank

M U N IC IP A L B O N D S
C O R P O R A T IO N

BONDS

and

STO CKS

JOHN DOUGLAS & COMPANY, INC.
Omaha, Nebraska
530 Insurance Building

N orthw estern

Banke r, M a r c h ,

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

1949

Phone: Webster 2281

Alex H. Smith, vice president, Cali
fornia Bank, Los Angeles, has been
assigned to the bank’s Van Nuys
branch and will supervise San Fer
nando Valley branches, Frank L. King,
president, announces. Mr. Smith will
be assisted by Jack F. Johnson, assist
ant vice president, a member of the
Van Nuys staff for the past two years.
American Bankers Association Mid
winter Trust Conference, held in New
York last month, was attended by
Frank L. King, president, and Frank
H. Schmidt, executive vice president,
California Trust Company.

The Municipal Market
Has the New i^oak
Municipals Have Taken on Glamour— There Have
Been Changes in the Purpose for Which They Are Issued
By H. HOLDEN SMITH
Halsey, Stuart & Company, Inc.
Des Moines, Iowa
IME was when the municipal mar struction costs of the postwar years. age will produce other types of financ
ket was a quiet, somewhat myste But there is still some excess left to ing which can be done only through
rious activity that a comparative indicate an expanding use of munici municipals.
ly few people carried on in the midstpal credit.
Increased Yield
of a securities business that gave its
Another item in the municipal mar
Good reason for expecting munici
headlines and its chief attention to
pal bonds to maintain a more promi ket’s new look and, of course, the
stock flotations and corporation bond
nent position in the investment mar most appealing from the buyer’s stand
issues. Many a bond salesman, and
ket can be found in the growing point, is the increase in yield. At the
his customers, too, grew up in the
importance of government in our peak of municipal prices in 1946, there
business without bothering to learn
daily lives. Mr. Average Citizen de was a 1.00 per cent difference in yield
what made one municipal bond worth
mands more service from the city between their prices (Dow-Jones aver
more than another or what a legal
hall. More and better water, better age) and the best grade of corporation
opinion was for. All this, in spite of
transportation, more recreation facili bonds (Moody’s Aaa Utilities). Ex
the fact that “municipals” were prob
ties, bigger stadiums, better highways pressed another way, the municipal
ably the oldest type of bonds in the
yield was 56 per cent of the corporate
market and certainly the most secure to drive on, a place to park his car,
yield. At the recent low for municipal
more
and
better
education
for
his
chil
as a class. But they just didn’t have
prices about a year ago the percentage
the glamor! And, of course, they came dren, increased hospital facilities, a
was 89 per cent. It is now about 80
place
to
live.
All
these
demands
mean
into the market in comparatively
per cent. This change in price level
more
bonds.
So
we
find
taxing
bodies
small volume, a little less than a bil
brought some tax-exempt bonds of
lending
their
credit
for
a
great
variety
lion a year, on the average, between
good quality to the same yield basis
of
purposes,
some
old,
some
new.
On
1931 and 1940. Their special feature,
as taxable bonds. The net of it all
exemption from federal income taxa the increase are the newer ones, such
was that, for example, a buyer with
as
sewer
revenue
bonds,
parking
rev
tion, was appreciated by only a select
a
preference for a utility bond was
enue
bonds,
airport
bonds,
bridge
few.
able
to find it as the obligation of a
revenue
bonds,
and
dormitory
revenue
Now the municipal market has the
municipality, with ample security,
new look, and glamor, too. It makes bonds. Recently there have been
the headlines. It has many followers. housing revenue bonds. No doubt, good earnings, and steady growth, at
Few salesmen and buyers now neglect still other requirements of the atomic the same price that he would have to
to study the municipal offering lists.
Tax exemption is widely appreciated,
now. Municipal bonds may not con NECESSARY YIELDS FROM TAXABLE BONDS TO
tinue to occupy the center of the stage
EQUAL YIELD FROM 10-YEAR AND 20-YEAR
indefinitely but their present position
has a look of permanence. The re
TAX-EXEMPT MUNICIPAL BONDS
strictions of the war years made it
inevitable that the volume of new
(Assumed municipal yields, 10-year 1.70%, 20-year 2.20% )
financing would increase greatly after
the war’s end, but other factors in our
20-year
10-year
Bank
changing economy point to increased
Municipal (1.70%) Municipal (2.20%I
Income Bracket
use of municipal bonds as a means of
financing the needs—and wants—of
2 .2 1 %
$ 5-20,000
2 .8 6 %
the people. Recent years have seen
2.27%
2.93%
20-25,000
interesting changes in the purpose for
3.62%
which municipal bonds are issued.
2550,000
4.68%

More Now Marketed
In the three years since the war’s
end more than six billions of new mu
nicipal bonds have been marketed.
This is about twice the annual aver
age of new tax-exempt issues in the
30’s. A part of this came from the
marketing of issues that were held up
by the war. About 1% billions rep
resented soldiers’ bonus bonds. Some
of the increase reflects the higher con

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

Over 50,000

2.74%

3.55%

2.43%
2.90%
3.35%
3.74%

3.14%
3.75%
4.34%
4.84%

Individual
Income Bracket
$ 8 -1 0 ,0 0 0

14-16,000
2 0 -2 2 ,0 0 0

26- 32,000

N orthw estern

Ba n ke r, M a r c h ,

1949

Investments

INVESTMENT
SECURITIES
Public Utility
Industrial
Railroad
Municipal

A .C .A L L Y N and C O M P A N Y
Incorporated
IOO W e s t
N ew

Y ork

M on roe

S tr e e t,

O m aha

W a te r lo o

C h ic a g o
M in n e a p o lis

B oston

M ilw a u k e e

K ansas

M o lin e

C it y

M U N IC IP A L B O N D S
Specializing in Iowa
County, City, School and
Municipal Utility Revenue Issues

C arleton D. B eh C o .
INVESTMENT SECURITIES
DES MOINES BUILDING

DES MOINES, IO W A
TELEPHONES:

John M. Beyer

4-8156. 4-8157

Calvin L. Rueffel

Iowa and Illinois
MUNICIPAL BONDS
BETER-RUEFFEL & CO.
Investment Securities
Kahl Building
N orthw estern

Ban ke r, M a r c h ,

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

Davenport. Iowa
1949

pay for a corporation bond. All this,
and exemption from Federal income
taxation, too!
Still another new appeal in munici
pals is the increase in their market
ability. The expanding volume, plus
the added variety, have attracted a
larger following in investment circles
and they in turn bring new buyers to
the market. This means new outlets
and a broader understanding of munic
ipal financing. A holder with tax-ex
empt bonds to sell finds more bidders
for them today than ever before.
While exemption from Federal in
come taxation is not a new feature
in municipal obligations, it has taken
on a lot of new appeal, especially to
banks. The current talk about in
creasing Federal taxes may not mate
rialize into action on individuals, but
corporations will be lucky if they es
cape some kind of a boost. At pres
ent a 2.20 per cent yield on a municipal
bond is equivalent to 3.55 per cent in
a bank in the 38 per cent bracket, and
to 4.68 per cent in a bank in the 53
per cent bracket. This is stiff com
petition for most any kind of paper.
Other comparisons are shown in the
accompanying chart.
Viewed from another angle, a bank
er considering a ten-year taxable bond
at a 2.30 per cent basis, would have
a better net return from a municipal
bond at 1.80 per cent if his bank’s
net income is over $5,000 per year. An
individual considering a 20-year tax
able bond at a 3.00 per cent basis
would have just as good a net return
from a municipal bond at 2.20 per cent
if his net income exceeds $6,000 per
year! And no one is talking about re
ducing taxes.
Don’t overlook the new look in mu
nicipals.—The End.

Annual Conference
The thirteenth annual conference of
the Central States Group of the In
vestment B a n k e r s Association of
America is scheduled for Wednesday
and Thursday, March 16th and 17th,
at the Drake Hotel, Chicago, it was
announced by Andrew M. Baird, A. G.
Becker & Company, Incoroprated,
chairman of the group.
More than two hundred investment
bankers, mainly from Illinois, Indi
ana, Iowa, Nebraska and Wisconsin,
but from every other section of the
country as well, are expected to at
tend. The conference arrangements
are being handled by George S. Channer, Jr., Channer Securities company,
chairman of the group’s meetings and
entertainment committee.
There will be a luncheon, addresses
and afternoon discussion meetings on
both Wednesday and Thursday; a
formal dinner Wednesday in honor of

Investments
Hal H. Dewar, Dewar, Robertson &
Pancoast, San Antonio, president of
of the I.B.A., and an informal dinner
and entertainment on Thursday.

A. G. Becker & Co.
Members

To Contact Bankers
L.
W. Scott, who has been associated
with the home office of J. M. Dain &
Company of Minneapolis for the past
several months, is planning to travel
southern Minnesota for the company.
J. M. Dain & Company specializes

NEW

YORK

C H IC A G O
NEW

YORK

STOCK

EXCHANGE

STOCK

CURB

EXCHANGE

(A S S O C IA T E )

C h ic a g o 3
120

SO.

N ew

SALLE

STREET
San

465

Y ork 5
STREET

F r a n c is c o 4

C A L IF O R N IA
AND

P IN E

OTHER

STREET

C IT IE S

Corporate Affiliate

A. G. Becker & Co.
INCORPORATED

Established 1893
Underwriters and Distributors

UNDERWRITERS

—

DISTRIBUTORS

—

DEALERS

MUNICIPAL BONDS
l . w . SC O T T
To Travel Southern Minnesota

in corporate and municipal securities
of the central northwest part of the
United States, being particularly ac
tive in Minnesota, North Dakota,
South Dakota and Montana.
Mr. Scott is a native of Janesville,
Minnesota, and graduated from Carleton College at Northfield with a degree
in economics. Before coming with J.
M. Dain & Company, be was associated
with Commercial Credit Corporation
in Mankato, Minnesota, and also with
the Standard Oil Company in the same
city. Mr. Scott’s father, Dr. Louis W.
Scott, is president of the Janesville
State Bank at Janesville, Minnesota.

CORPORATION BONDS and STOCKS

KA LM A N

A V I N K L E , with Paine,
Webber, Jackson and Curtis for
20 years, has resigned from that in
vestment firm to accept appointment
as vice president in the municipal de
partment of Wheelock and Cummins.
Mr. Van Winkle will continue to live
in Chicago. He is well known among
bankers and investment men through
out the middlewest.
Succeeding him with Paine, Webber,
Jackson and Curtis as manager of the
municipal bond buying department is
P a u l T . S t e p h e n s , who formerly was

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

McKnight Building
MINNEAPOLIS
Atlantic 5313

Endicott Building
ST. PAUL
Garfield 3305

M U N IC IP A L B O N D S
(Iowa and Illinois)

I n vest m en t N e tv s
AU L K. VAN

& COM PAN Y

STATE
COUNTY
CITY
SCHOOL

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

First National Bank Bldg.
Chicago, Illinois
N orthw estern

Ban ker, M a r c h ,

1949

Investments

manager of the municipal trading de
partment.
D . E . M c F a r l a n d , vice president of
Kalman and Company, Minneapolis, is
vacationing with Mrs. McFarland in
Nassau.
C a r le to n

D. B eh ,

president of Carle-

ton D. Beh Company, Des Moines, is
enjoying a vacation in Phoenix, Ari
zona, with Mrs. Beh. They are return
ing to Des Moines about April 1st.
A visitor in Guatemala is H a r o l d E .
president of Harold E. Wood
Company, St. Paul. He is expected
back in St. Paul about April 15th.
W ood,

Even though the majority of Ameri
cans favor the free enterprise system,
few of them are fighting for it, H a l H .
D e w a r , San Antonio, said on a short
visit to Minneapolis and St. Paul re
cently.
Mr. Dewar is president of the In
vestment B an k ers Association of
America and was scheduled to talk to
Twin City investment bankers at the
Town and Country Club but the meet
ing was canceled when he missed his
plane.
“Profits and a free economy go hand
in hand,” Mr. Dewar said. “Working
together, these two factors gave this
country the highest standard of living
in history.”
Mr. Dewar believes that venture
capital is the lifeblood of free enter
prise and must be kept flowing by
spreading direct ownership of the
country into more hands. It is the
work of investment bankers to work
harder and more effectively in reach
ing a greater number of investors, he
said. Mr. Dewar was on his way to
the west coast.
The O m a h a I m p r o v e m e n t C o m m i s
has approved issuance of an addi
tional $729,000 in bonds. This, with
$1,225,000 in bonds already authorized
for the South Omaha sewer project,
made possible the issuance of $1,954,000 in citywide improvement plan
bonds at one time.
The commission authorized an ex
tra $100,000 in street improvement
bonds.
s io n

S P E C IA L IZ IN G . . .
in H ig h -G ra d e

TitunidpoL

SPARKS & CO .
528 Liberty Building

Telephone 3-5154
DES MOINES, IOW A

PRIESTER & CO.
Eighth Floor Davenport Bank Building
DAVENPORT, IO W A

Listed and Unlisted Securities

C a r l C . M a g d s i c k , immediate past
president of the Commercial Trust
and Savings Bank, Charles City, Iowa,
has announced his entrance into the
investment banking business.
He has become Iowa representative
of Carter H. Harrison & Company,
Chicago, succeeding W . E . D o d g e , who
has retired.
During the past year, Mr. Magdsick
sold a substantial part of his holdings
in the Commercial Bank, resigned
from the presidency but remains on
its board of directors. In his new po
sition, he will continue to live in
Charles City. Mr. Magdsick has been
associated with the bank 39 years, the
past 29 years as president.
Mr. Dodge has been associated with
the Harrisons for 30 years, the last 11
as Iowa representative of Carter H.
Harrison & Company.

An extension course on

H. E. Jacobs

H. C. Priester
H. M. Sweet

N orthw estern

Ban ke r, M a r c h ,

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

1949

fu n d a m e n

sponsored
by the Minnesota group of the Invest
ment Bankers Association, will be
continued by the University of Min
nesota through May 30th.
ta ls o f in v e s t m e n t b a n k i n g ,

investment for Liquidity* or
investment for income?
Too General a Viewpoint Should Be Avoided—
A Bank's Investment Account Should Serve as an Elastic Medium
By CHARLES R. BENNETT
Vice President and Sales Manager
J. M. Dain & Company
Minneapolis
HEN visiting with bankers re
specting their bond investment
accounts, it has often occurred
to the writer that sufficient emphasis
has not always been placed upon the
distinction between investment for
liquidity and investment for income.
This suggests that too often invest
ments are purchased with too general
a viewpoint rather than with a defi
nite conviction as to how they add
to the portfolio the specific value
needed at the moment. Hence, the
efficiency of the account it impaired
and disappointment may later result.
A bank’s investment account is
maintained as a service adjunct to the
the banking function. It is expected
to serve as an elastic medium, ex
panding and contracting, under vary
ing market conditions, according to
the changing cash position of the
bank and the volume of loans.
CH AR LES R. B E N N E T T
“ Each Investment Has a Purpose”
Since the investment account is
called upon to augment cash position hardly expect to find, therefore, the
at one time and to bolster earning maximum degree of liquidity in an
power at another, often without choice investment carrying the highest rate
as to market conditions, it is appar of return. Rather than to compromise
ent that the account must possess a either, we think it more desirable to
high degree of liquidity and at the seek liquidity and income separately
same time produce an acceptable rate by actually maintaining two distinct
of return without sacrifice of safety, investment accounts, one investment
i.e., assurance of prompt payment of for liquidity and the other investment
principal and interest when due.
for income. '

For Liquidity

Income Bonds

Liquidity, as a practical banking re
quirement, goes beyond the popularly
accepted definition of mere active mar
ketability with close spreads between
bid and asked prices. We think price
stability or the ability to obtain close
to purchase price on resale must be
tied in with a proper conception of
liquidity in a banking sense. Stability
of price can only be assured through
short maturity for, of course, the long
er the maturity the greater the varia
tion in price with any change in in
terest rates. Liquidity, therefore, we
would deem a combination of active
marketability and short maturity. Li
quidity of the type required and in
come are both features of value; hence,
each commands its price. We can

A bank’s first investment purchases,
after setting aside sufficient cash re
serves, may properly consist of highly
liquid government 90-day bills, cer
tificates of indebtedness, and then
one, two and three year maturities of
government notes and bonds. When
sufficient investment for liquidity has
been completed through such pur
chases, determined by the character of
the economy of the area, diversifica
tion of industry, stability of deposits,
etc., there is no need for paying a
premium for further liquidity and
more attention may be given to ac
quiring higher yielding income bonds.
In investing for income, maturities
may be lenghtened somewhat if the
economy of the area and the stability

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

of deposits warrant. If we lengthen
maturities, what happens if money
rates advance and bond prices turn
down? Perhaps then we should stay
with very short maturities. But what
then if support prices are maintained
and money rates remain stable within
a narrow range, aren’t we then sacri
ficing the income that we think im
portant? The point is, are we going
to have to depend upon guessing the
trend of money rates and bond prices
in order to achieve success in our in
vestment bond account, or is there a
more certain way of conducting such
an account? We like the conception of
the investment bond account that con
templates purchase for income and
holding through to maturity and re
lies upon a diversified and evenly
staggered maturity schedule to pro
vide a hedge against the effect on
prices of changing money rates.

An Illustration
As an illustration, let us say that
in our bank we have made provision
for adequate liquidity. In addition,
we have an amount totaling $1,000,000.
in cash or invested securities, which
we could properly include in an in
vestment for income account. Let us
first examine the invested portion o"
this total to see if we might improve
the net income return or obtain the
same return with shorter maturities.
If, then, we complete investment of
the $1,000,000 in such a way as to
produce a portfolio maturing $100,000a year, say, from one to ten years
(some may prefer one to five years,
others up to one to 15 years), we will
have set up a bond investment pro
gram that admits of many distinct
advantages:
If we reinvest each year the pro
ceeds from $100,000 maturing bonds in
new 10-year bonds, we will obtain the
maximum yield available to us through
the longer maturities.
Gradually the rate of return on this
entire portfolio will improve to the
average rate prevailing for ten-year
maturities.
While the rate of return will imN orthw estern

Ban ker, M a r c h ,

1949

Investments

prove to the equivalent of the average
yield on 10-year maturities, the aver
age maturity of our portfolio will re
main around only five and one-half
years.
Funds will be kept continuously in
vested; there will be no loss of in

come waiting for more favorable mar
kets.
The peace of mind and increased
efficiency resulting from the release
from worry as to the course of the
market is not the least of the advan
tages to be gained.

WHEELOCK & CUMMINS
Incorporated

Members Chicago Stock Exchange
Underwriters and Distributors of Investment Securities
200 Equitable Building
Phone 4-7158
Teletype DM 184

135 South LaSalle Street
Phone Andover 6700
Teletype CG 245

DES MOINES, IO W A

CHICAGO. ILLINOIS

S in c e 1922
M U N I C I P A L
and
R E VE NUE
BONDS
For Banks and Trust Companies

As in any human endeavor, there
is a direct relation between the adher
ence to a sound plan and the measure
of accomplishment in the conduct of
the bank’s investment portfolio. Hav
ing adopted the above program, it
would appear obviously important to
utilize the investment for liquidity and
the investment for income accounts
for precisely the purposes for which
they are established. When deposits
increase temporarily or demand ex
pands in the usual course of business,
increase or decrease investments in
the liquidity account. When a bulge
in money rates occurs and is reflected
in lower bond quotations, don’t be
unduly disturbed and seek to dispose
of your income bonds. Through the
roll over of maturities, the income
account has automatic provision for
increasing investment income, should
the trend of money rates advance.
Stay with the program throughout the
cycle. So long as the liquidity account
is maintained in adequate proportion
and the bonds in the income account
are held to maturity, mere changes in
price quotations are of minimum sig
nificance and a satisfactory average
rate of return is attained. There is
nothing spectacular about this plan,
but it is simple, it is safe, and it is
effective.—The End.

BALLARD-HASSETT COMPANY
INVESTMENT SECURITIES
406 Central National Bank Building

THOMAS ! m m
&

mm\

ite ee ires A w a r d
Des Moines

This institution, one of Nebras
ka's oldest

investment firms,

extends greetings to Nebraska
Bankers.

Investment Securities
Merchants Bank Bldg.
CEDAR RAPIDS, IOWA
★

★

SE C U R IT IE S OF
I O W A C O R P O R A T IO N S
BOUGHT
SOLD
QUOTED

Prompt Reply to Inquiries
N o r t h w e s t e r n Ba nke r, M a r c h , 1949

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

Smith, Polian & Co.
424 Omaha National Bank Building
Formerly
Smith, Landeryou & Co.

Underwriters, Participating Distributors
and Dealers in Railroad, Public Utility
and Industrial Bonds and Stocks
Harry F. Smith, President
Harold O. Polian, Vice Pres.-Treas.
F. Arthur Flodeen, Statistician
J. M. Kadlecek, Sales Manager
Bell System Teletype 180-181
Telephone JAckson 5065

Dr. Harold Stonier, execu tive man
ager o f the A m erican Bankers A sso
ciation, receiv in g the annual aw ard
o f an h onorary m em bership in New
Y ork Chapter, A m erican In stitu te
o f B anking, at the 45th Annual B an
quet o f the Chapter w hich was held
last
month.
Chapter
President
George O. Nodyne (a t r ig h t), w ho is
also v ice president o f the East
K iver Savings Bank, is m aking the
presentation.

►

High Grade Itond Market
Has tJalmed
Potenin Past Mo
Commercial Banks Showing Signs of Reaching Out for
Longer Maturities at Levels Above the Pegs
By RAYMOND TRIGGER
Investment Analyst
New York City
UTSTANDING characteristic of
This is a discussion of factors
the high grade bond market in
affecting your investment port
recent months has been its se
folio. If you have any questions,
date behavior. Toward the end or
of if you find yourself in dis
1947 the pegs were abruptly lowered
agreement with comments here
and all concerned were excited. The
in, your letters, addressed to the
actual damage done was, perhaps, not
NORTHWESTERN BANKER, will
great but more than sufficient, par
be welcome and will be answered
ticularly in the municipal field. More
here if the subject matter is of
important than portfolio write-downs
general interest. Under no cir
was the creation of doubt. If pegs
cumstances will the editor of this
could be pulled once and reinserted
column discuss specific securities.
(considerably lower), might it not
happen again?
The thought remained uppermost in
The Federal Reserve Bank of New
the minds of all conservative observ
York
lately published its survey of
ers during the greater part of 1948.
At the same time, those relatively few recent developments. As to commer
but remarkably vociferous advocates cial banks, “This lengthening of ma
of no pegs at all set forth their con turities of bank portfolios apparently
tentions on any and all occasions. The reflected growing confidence in the
very fact that the entire removal of stability of the government bond mar
pegs could be seriously discussed, how ket, as well as the uncertainty sur
ever unlikely such action might be, rounding the business outlook. Many
gave rise to concern and the markets of the banks entering the long-term
bond market for the first time in many
naturally reflected this.
Since November, though, the situa months had experienced, or were an
tion has calmed notably. No longer is ticipating, a decline in commercial
there any strong advocation of letting loans and were rearranging their port
the government bond market find its folios to counteract either an actual
natural levels (lower is meant, of or prospective decline in income.”
There is little exceptional in the re
course). No longer is there any seri
ous question as to the ability of the marks just quoted and they unques
money masters in Washington to hold tionably emanate from a source
the line. Understandably, commercial peculiarly well qualified to discuss the
banks generally have lately shown subject. Nonetheless, the opinions and
signs of reaching out for longer ma actions attributed to the banks may be
turities at levels cmite a bit above the challenged. One professional advisor
pegs. This can only be interpreted as to banks, at least, has pointed out with
a supreme confidence in the floor un considerable asperity that the banks
have a rather inglorious record in the
der the market. It is true that there
is also an unofficial ceiling, but this matter of calling the government bond
has been given only superficial con market and, by implication, could be
wrong again.
sideration.

Insurance Companies Calm

Banks Have Problems

The insurance companies, during
most of 1948 the whipping boys of
the administration, have calmed down,
too. At any rate, they have ceased
to sell any considerable volume of gov
ernments. Thus far in 1949, they
have remained generally inactive on
both sides of the market, thereby con
tributing their bit to the prevailing
somnolence.

The country’s commercial banks, of
course, have tough problems. When
any considerable number of them de
cide that their incomes must be at
least sustained, if not bolstered, and
at the same time conclude that the
government bond market will be
pegged indefinitely, no one can deny
that those banks have both the need
and the justification for lengthening

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

maturities. They need the increased
incomes and they can produce plaus
ible arguments in support of length
ening maturities.
Most observers will be quick to
sympathize with the action taken by
those banks, although more than a
few will continue to point out that
need and plausibility, while perhaps
expedient, are a far cry from the fun
damentals. The more prudent bank
ers will not forget the huge size of
the federal debt and the almost reck
less proportion of it that is due, or
callable, within 12 months. Nor will
they lose sight of the fact that actual
prevailing interest rates are low and.
conversely, bond prices in all cate
gories are high.
Those who look back to the aftermath of World War I for guidance
can dig up fairly impressive statistics.
Thus, one writer on the subject has
said. “Between August, 1920, and De
cember, 1927, yields declined from 5.67
to 3.17 per cent on Treasurys from 5.28
to 3.90 per cent on muneipals, and
from 6.76 to 4.62 per cent on AA cor
porates.” Given a somewhat similar
background — and the sharp drop in
commodity prices, for example, is
reminiscent of 1920 — a like trend
might be expected at about this stage
of the aftermath of World War II.

Comparisons Doubtful
Ignoring the rather substantial dif
ferences between the present day and
those of the early ’20s for the moment,
one may be intrigued by the resem
blance. But, before being beguiled
too far, one will consider that the
general industrial economy had had
quite a fair shake-out before 1920 and
that a corresponding setback is yet
to be encountered since the end of
World War II. Further, in the early
1920s at least two great industries, the
chemical and the automobile, entered
upon their lustiest growth period.
What have we today? Atomic energy?
It seems rather distant. Television?
Superimposed on radio and motion
pictures, this new industry may make
its stir in the industrial world, but
will it ever be the dynamic factor that
N orthw estern

Ban ke r,

March,

1949

Investments

the growth of chemical and automo
bile manufacture were a quarter cen
tury ago?
And, aside from the industrial po
tentialities as yet to be exploited,
there is the matter of original position
with respect to interest rates. The
statistics quoted in an earlier para
graph are not questioned, nor is the
evidence of a “trend” denied. But
the levels from which the trend
started and that at which it wound
up are of at least equal importance.
The depths to which interest rates
had dropped by December, 1927, how
ever much lower they were than those
in August, 1920, are still fantastically

high when compared with those pre
vailing today. At this writing, the
longest eligible Treasury yields about
2.35 per cent. Is it within reason to
expect that the yield will fall in the
next seven years in proportion to the
5.67 to 3.17 per cent decline of the
1920-1927 period? Are there no abso
lutes deserving consideration?
However praiseworthy the achieve
ments in the 1920s, it must also be
allowed that the problems then tack
led by the fiscal authorities were ever
so much easier to handle. The attack
was started with yields at high levels;
the total debt was, absolutely and
relatively, much smaller than is to

day’s; the maturity structure pre
sented less serious headaches than
does today’s. Thus, if the money
managers directing today’s affairs take
much longer and go less farther, they
may not fairly be criticized; nor
should their perhaps limited successes
be measured against the Treasury’s
showing in the 1920s. Nonetheless,
some progress may properly be re
quired. Happily, there are signs that
commercial bankers may be offered
something “other than the recent mo
notonous diet of one-year certificates,”
as one writer describes it, during the
course of the year in connection with
the substantia] refunding operations
ahead.

Future Brighter

The fin ish in g touch to a p er fe c t tra in !

Spectacular Sky Iop Lounge
and private-room sleepers
OLYMPIAN_

C H IC A G O
M ILW AUKEE
ST. PAUL
M IN N E A P O L IS
B U TTE
SPO K AN E
SEATTLE
TACOMA

the

C r e s t -t o -c a n y o n v ie w s o f a m o u n ta in w o n d e r la n d
fr o m th e gla ss e n c lo se d S k y t o p L o u n g e — a n ew d e
p a r tu r e in car d e sig n . A n d y o u ’ ll fin d th e p r iv a te
r o o m s in T h e M ilw a u k e e R o a d ’ s n e w O ly m p ia n
H i a w a t h a sle e p in g ca rs p e r fe c t in e v e r y d e ta il.

NEW

B E D R O O M S w ith tw o b e d s h a v e e n
c lo se d la v a to r ie s , a m p le lu g g a g e s p a c e , a n d full
le n g th c lo se ts. A d jo in in g b e d r o o m s o p e n in t o c o n
n e c tin g su ite s fo r f a m ily p a r tie s .

N E W ROOM ETTES

fo r o n e o ffer f u ll p r iv a c y
w ith r o o m fa c ilitie s in c o m p a c t f o r m . R a d io c o n
tr o l a n d c ir c u la tin g ice w a te r in a ll r o o m s .

For a color b oo kl et on the Olympian H i a w a t h a ,
Write to H. Sengstacken, Passenger Traffic Manager
958 Union Station, Chicago 6, Illinois

il w a u k e e

The friendly Railroad of the friendly
N orthw estern

Banker, M arch,

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

1949

R oad

West

There apparently is at least a fair
chance, for example, that the midJune refunding will include an ex
change offer, perhaps into a five-year
note with 1% per cent coupon. Some
thing even better could come forth,
say a seven-year maturity and a 2 per
cent coupon, inasmuch as there exists
an unwieldly concentration of matu
rities in the 1952-55 bracket, but the
total in 1956 and on out is relatively
light. At the same time, that is, dur
ing 1949, somewhat firmer short-term
rates are a logical expectation. They
could be allowed, in connection with
the important refunding operations, at
no net rise in the total debt service.
The banks, then, may look forward
to gradual progress on rearranging
the Treasury’s maturity schedule on
terms that will work out as fairly
satisfactory, but they probably are not
justified in continuing to lengthen
their own portfolio maturities. On
the other hand, the calm and orderly
climate in which the government mar
ket has lately flourished likely will
prevail. There is no unusual risk
presently discernible in coasting along,
reasonably confident that the authori
ties have the situation well in hand
and will not relax their grasp of it.
A note of caution is in order, though.
The government market is high, when
measured by long term yardsticks,
and is artificial, measured by any in
strument, but it is a lot more secure,
relatively, than the better-grade cor
porate market. Time and again, the
highest commercial banking authori
ties have insisted that there is too
little equity money being supplied in
dustry. Is this not the equivalent of
saying that there is too much debt in
the U. S. industrial economy? And,
even if there were not “ too much,”
the fact remains that the traditional
market spreads between governments
and corporates is too narrow. The
condition would appear to be that the
industrial outlook for 1949 is not

Investments
especially bright and, on the other
hand, the supply of money seeking
work is large. The first may persist
for some little time, or could worsen:
the second is bound to contract, per
haps sooner than expected, and is
unlikely to be replenished.
Although the prices of tax-exempt
bonds have pushed much higher since
last November, they are, relatively,
not high and still have the dynamic
potentialities afforded by their tax
shelter. If the top-level powers in
Washington have their way, taxes will
be raised and a budgetary surplus
achieved. The bulk of it doubtless
will be used to sustain government
bond prices and to facilitate such other
aims as the Treasury has. But, be
fore any surplus can be created and
applied to fiscal operations, higher
taxes will have to be enacted. The
Congress, to be sure, is apparently
reluctant, but the issue has not been
completely joined, much less decided.
Since by any reasonable approach
prices of tax-exempts are not high,
this sector of the investment security
field would appear to offer special
inducements: excellent yields, allow
ing for tax exemption: little risk: and,
possibly, higher prices.—The End.

To Larger Quarters
The regional office of the St. Paul
Terminal Warehouse Company in Des
Moines last month moved to larger
quarters in the Iowa-Des Moines Na
tional Bank Building, from 515 to 511.
the new address, according to an an
nouncement by T. C. Cannon, regional
manager. The move was made neces
sary because of the increased business
of the firm in this area. The company
also maintains a district office in Oma
ha. Nebraska.

h is California - wide

correspondent service
brin gs gou effieien eg

PLIS "'the human touch3'
Naturally you w antspeed and efficiency in the handling of
your California transactions. Through its C alifornia-w ide
service (yours through one account in Los Angeles or San
Francisco) this bank gives you direct routing to more than

St. Louis Promotions
The First National Bank in St. Louis
has announced the following promo
tions:
E.
Leslie Bloom, from assistant cash
ier to assistant vice president. Mr.
Bloom is in the correspondent bank
division, and was elected an assistant
cashier in May, 1947. Edw. C. Ander
son, from assistant cashier to assistant
vice president. Mr. Anderson is in
the new business department, and was
elected an assistant cashier in May,
1947.
A.
A. Bercaw was elected an assist
ant vice president. Mr. Bercaw is
manager of the U. S. Government Se
curities department. He has been
manager of that department since
1933, and became an employe of the
bank in 1920.
John L. Farrell was elected an as
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

300 communities.
O f equal importance is"the human touch"in your corre
spondent relationships. Bank of America's correspondents
will tell you that this bank has personalized its services in
a manner which adds an important extra value for banks
and bankers everywhere.

IB m tk o f A tttetriro
N A T IO N A L s a v in g 's A S S O C IA T IO N

California's Statewide Bank

Bank of America Travelers Cheques are known
the world over. S e l l t h e m to y o u r c u s t o m e r s

N orthw estern

Banke r,

March,

1949

Investments

EMPLOYERS MUTUAL
CASUALTY COMPANY
Continues Steady, Uninterrupted Growth

sistant cashier. Mr. Farrell is man
ager of the collection department,
which position he has held for more
than 20 years. He started his banking
career with the old Mechanics-American National Bank.

Mew Check Writers
Two new Protectograph Check Writ
ers, one electric, the other handoperated, both representing advanced
design in their field, have been an
nounced by The Todd Company.
Model 79, a new electric portable,

Condensed Statement as of December 3 1 , 1948
DIRECTORS
J. W . GUNN
Chairman of the Board
and Treasurer,
Des Moines, Iowa
JOHN P. HYNES
President,
Des Moines, Iowa
DR. D. E. BAUGHMAN
Fort Dodge, Iowa
W . H. BRENTON
Pres., Brenton Bros.,
Des Moines, Iowa
H. L. HJERMSTAD
Pres., Citizens Fund
Fire Insurance Co.,
Red Wing, Minn.
W. J. HYNES
Secretary,
Des Moines, Iowa

ASSETS
United States Government Bonds*....$ 8,903,501.40
Other State and Municipal Bonds*.... 2,297,014.76
No bonds owned by the company have
ever been in default either as to inter
est or principal.

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

CARL MUELHAUPT
Secy., Central Service Co.,
Des Moines, Iowa
AMOS C. PEARSALL
General Manager
Pittsburgh-Des Moines
Steel Company,
Des Moines, Iowa
W . Z. PROCTOR
Attorney at Law,
Des Moines, Iowa
R. W . WEITZ
Contractor,
Des Moines, Iowa
M. J. W ILKINSON
Vice-President and
Supt. of Agents,
Des Moines, Iowa
DR. R. W . WOOD
Physician and Surgeon,
Newton, Iowa

Interest Accrued and other assets....

83,066.26

Total Admitted Assets............. $16,320,394.69
R E S E R V E S

Reserve for Claims.......................... $ 6,740,640.19
Funds set aside to fully pay all incurred
and expected losses.

Reserve for Unearned Premiums....

4,994,096.00

Reserve for Taxes—State and
Federal ........................................
All Other Reserves..........................

445,606.35
1,080,258.24

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

Included in this Reserve is a sufficient
amount to pay dividends on all partici
pating policies.

Total .........................................$13,260,600.78
Reserve for Con
tingencies ............. $ 800,000.00
Unassigned Surplus.. 2,259,793.91
3,059,793.91
Total .........................

$16,320,394.69

*Amortized Values.

NATIONAL

Home Office

74,070.00
2,117,110.85

Current balances due from agents and
policyholders.

DR. L. E. KELLEY
Physician and Surgeon,
Des Moines, Iowa
FRANK KOHRS
Pres., Kohrs Cold
Storage Co.,
Davenport, Iowa

2,139,360.37
340,821.69
365,449.36

INSTITUTION

210 Seventh Street
B R A N C H

O F F I C E S

J a c k s o n , 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.

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.

Des Moines
W ic h ita ,

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 .

Automobile, Plate Glass

Public Liability Insurance.

W or km en s Compensation

Fidelity and Surety Bonds

N orthw estern

Ban ke r, M a r c h ,

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

1949

One o f tw o new Protectograph
Check Writers, announced b y the
Todd Company, is this M od el 79
portable, electric machine. It in
cludes lock ed con trol to prevent
misuse o f the ch eck w riter by un
authorized personnel, and a rem ov
able prefix die w hich im prints the
com pany’ s name and the dollar sign
im m ediately b efore the amount. The
die can be taken out easily and
locked in a safe place when the
m achine is n ot in use.

was created to meet customer need for
a machine with standard gauges to
handle the check forms in most com
mon use. It embodies locked control
to prevent misuse of the machine by
unauthorized employes, a n d dropforged brass type which shreds indeli
ble ink from a ribbon into the fibers
of the check, making it impossible to
alter the amount without destroying
the paper itself.
Another protective feature is the
removable prefix die which imprints
the company’s name or trademark and
the dollar sign immediately before
the amount. This die can easily be
removed and locked in a safe when
the unit is not in use.
Model 74 is similar in design to
Model 79. except that it is hand-oper
ated.
Unbalanced
“What’s a budget?”
“Nothing more than a mathemati
cal confirmation of your suspicions.”

IN S U R A N C E

How to Make Rig Customers
Out of Little Ones
It Is Well to Get Ready for the Time
When Walk-in Business Stops Walking in
By R. C. LARSON
Field Supervisor
Aetna Casualty & Surety Company
Hartford
EVELOPING additional business
“in your own back yard” was
stressed by R. C. Larson, field
supervisor of the Aetna Casualty and
Surety Company, in a recent talk.
Pointing out that many agents are
concentrating on developing new cli
ents and ignoring the vast opportuni
ties for increased business among
their present policyholders, Mr. Lar
son asked, “ Are there undeveloped
premium dollars in your files; is there
a pot of gold in your back yard as
yet undiscovered?”
To discover whether such a gold
mine exists, Mr. Larson urged the
agents to make intensive use of the
customer analysis, classification and
development plan.
Citing cases of agents who have
made analyses, Mr. Larson said. “ One
agent found that 647 of his customers
had but one policy with his agency;
R. c. LAR SO N
“ Develop Old Customers, Too”
333 customers had but two policies
with his agency, and 168 had three or
sis of his customers, he had written
more policies.
“ Still another agent that I know $35,000 in new premiums on old cus
tomers. Another told me that he had
found that among 2,606 customers,
2,470 had purchased only one policy increased his average commercial ac
from him; 124 customers had bought count from $245 annually to $646 and
only two policies from him and only his personal insurance accounts from
12 customers had three or more poli $31.50 to $95.70 annually.
“ I recognize that the job of cus
cies.
“What an opportunity for develop tomer analysis and classification rep
ment! And you can’t say that the resents a lot of work, but it is worth
same opportunity doesn’t exist in while and necessary work and must
your agency until you have made a be done if you expect your agency to
grow on a sound basis. Some day
systematic study of your customers.
“One agent recently told me that this boom will be over and these lush
during two years following the analy- days of easy business will be just a

Did you know that our Cash Letter Policy not only
gives protection but enables you to cut operat
ing expenses substantially. Ask us for
details. You will not obligate
yourself.
F IR S T N A T IO N A L B A N K

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

B U I L D IN G

•

C H IC A G O

pleasant memory. I know many agents
who have done practically no solicit
ing for new business during the past
few years. But when walk-in busi
ness stops walking in and when cus
tomers begin to telephone you to re
duce their insurance rather than in
crease it, selling will again come into
its own. When that day comes, the
agent who is following a systematic
plan of customer development need
have no fears for the future. He re
paired his roof when the sun shone
and now that it is raining, he is snug
and dry in his house. So we urge
you to do this job now—to do it now
even though you don’t seem to have
enough hours in the day to handle
your present business—to do it now
even if your office force is taxed to
capacity. Conditions will never be
exactly right in a busy agency to get
a job done which no one is pressing,
so we say do it now when the sun
is shining.”

Classify Customers
Mr. Larson suggested that after the
agent had analyzed his customers’ ac
counts he should then classify them
as “A.” “B” or “C.” the “A” custom
ers being those with the best potential
for the development of additional
business, the “B” customers being an
intermediate group, and the “C” cus
tomers those who purchase only one
or two small policies and are unlike
ly to buy any additional coverages.
The agent should give his class “C ”
customers whatever services they are
entitled to. but should not spend a

S ca rb o ro u g h

C o m p a n y

Insurance Counselors
3, IL L IN O IS

•

STATE

to Banks

2 4325

N orthw estern

Ba n ke r,

March,

1949

insurance

great deal of time trying to sell addi
tional lines to those customers.
Renewals for “ B” customers should
be delivered in person and the agent
should try to get them to increase
their limits or amounts of insurance
to proper levels and also to buy addi
tional needed coverages. The class
“A” customers should be followed up
individually and their accounts should
be developed through the medium of
well made insurance surveys.
In discussing the survey method of
selling, Mr. Larson remarked, “ My
company pioneered in account selling
and keeps accurate records of the
business produced by the surveys
made by company personnel. Re
cently, the results obtained from 10,000 surveys made for all classes and
sizes of risks were analyzed. It was
found that these surveys produced
$4,509,132 in new premiums or an
average of $602 for each commercial
survey and $160 for each personal
survey. These figures are confined
to new business placed with my com
pany and do not include business ob
tained by the agent and placed with
other insurors.

“The most successful agents that I
know are using this method of ac
count development. It works for the
new agent or the experienced agent
and geography doesn’t have anything
to do with its success. It is being
used in big towns and small.”

Examples
Mr. Larson then went on to give
examples stating the case of an agent
in Ohio who, after completing 74 sur
veys during his first year of business,
produced $18,000 in premiums. An
agent in Illinois, who has been in the
insurance business for five years,
points to 16 personal and 35 commer
cial surveys which have brought near
ly $38,000 in new business. A new
agency, in two years, built up a vol
ume of over $100,000 in premiums, a
large share of which was a direct
result of survey work. A midwestern
agency, after 32 years of existence,
produced approximately $100,000 a
year in premiums. In 1930 the agen
cy started on a program of account
selling through the survey method
and after 18 years paid its companies
$1,800,000 in premiums, all of it direct
business. Six men handle this tre

mendous volume and they do it with
ease because they sell accounts, not
policies, Mr. Larson said.
In concluding his remarks, Mr. Lar
son urged the use of the survey
method of selling for the following
reasons:
“Because it is a tested method of
account selling.
“Because by selling an entire ac
count rather than individual policies
you are in a position to deliver the
services which an agent is supposed
to deliver.

“ Because the survey is an offensive
as well as defensive weapon—it pro
duces new business and helps hold
renewals.
“Because the survey makes your
customer realize that his insurance is
a problem which can’t be solved by
buying insurance through the mail.
“Because the survey is a showcase
in which to display your services.
“Because it raises the plane of in
surance and is concrete evidence that
the stock agent is worthy of his hire.”
—The End.

56th ANNUAL FINANCIAL STATEMENT
As of December 31, 1948
A D M I T T E D
M ortg a g e

Loans

A S S E T S

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

2 8 4 ,2 6 2 .2 0

B o n d s and S t o c k s ......................................................

4 ,4 0 9 ,8 2 3 .4 7
D e p o s it in B a n k s ........................................................ 1 ,7 6 6 ,5 2 4 .9 6
B u ild in g and L o a n A s s o c ia tio n S h a r e s . . .
5 0 ,0 0 0 .0 0

A g e n t s ’ B a la n c e s ......................................................
In te r e st D u e and A c c r u e d ..................................
H o m e O ffic e B u ild in g ............................................
A ll O th e r ........................................................................

1 4 1 ,3 81 .1 4
2 4,2 7 6 .0 5
1 3 0 ,0 0 0 .0 0
9 ,40 7 .32

T o t a l .......................................................................... $ 6 ,8 1 5 ,6 7 5 .1 4

R eserves:
L o s s e s and C l a i m s .............................................. $ 4 1 9 ,5 5 9 .3 8
U n e a r n e d P r e m iu m s ......................................... 1 ,3 4 6 ,4 5 0 .0 0
S a la rie s, R e n ts , E x p e n s e s , E t c ..................
5 ,2 6 0 .6 4
T a x e s ( F e d e r a l, S ta te and O t h e r ) ..............
2 0 2 ,5 1 6 .1 4
2 5 4 ,3 9 1 .2 4
C o n tin g e n t C o m m is s io n s ...............................
A ll O th e r ...................................................................
3 ,9 5 8 .8 2
T o t a l .......................................................................... $ 2 ,2 3 2 ,1 3 6 .2 2
S u rp lu s as R e g a r d s P o lic y h o ld e r s .................. 4 ,5 8 3 ,5 3 8 .9 2
T o t a l .......................................................................... $ 6 ,8 1 5 ,6 7 5 .1 4

Surplus Over All Liabilities $4,583,538.92

FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA
C. P. RUTLEDGE, President

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

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

1949

1019 High Street, Des Moines

Insurance

Town Mutual Dwelling
B.
Rees Jones has been re-elected
president of Town Mutual Dwelling
Insurance Company, Des Moines, it
was announced following the organ
ization’s annual meeting.
Substantial gains were made in all
departments of the company’s opera-

Officers include S. H. Witmer, presi
dent; Holton Davenport, vice presi
dent; H. O. Chapman, secretary-treas
urer; W. J. Harris, vice presidentactuary; Dr. R. Reagan, medical
director; and B. H. Millard, director.

Farmers Elevator
The Farmers Elevator Mutual In
surance Company, Des Moines, held
its annual meeting recently.
The
three directors whose terms were ex
piring, namely, C. J. Kelsey, Iowa
Falls; Scott Ellis, Dallas Center; F. C.
Behm, Missouri Valley, were all re
elected for terms of three years. All
officers were also re-elected and they

are as follows: W. P. Moeller, presi
dent, F. C. Behm, vice president and
Don E. Edison, secretary-treasurer.
It was reported at the annual meet
ing that in 1948 the gain on insurance
in force was one of the largest in any
year since beginning operations in
1909. The net gain in insurance in
force for the year 1948 was $4,882,460.

New Form
Completion of a new standardized
form of Registered Mail and Express
Policy for banks, effective last month,
was announced by George C. Bennett,
chairman of the Insurance and Protec
tive Committee of the American Bank-

B. REES JONES
Re-elected President

tions last year, President Jones an
nounced. The annual report showed
that Town Mutual assets now exceed
3 million dollars; also $896,597,386 in
surance in force—a gain of $91,236,383.
Other officers re-elected were Lester
T. Jones, vice president; Frank H.
Dirst, Hampton, Iowa, secretary; Wm.
J. Goodwin, treasurer; Charles L. Henschel, assistant secretary; Leslie L.
Greve, assistant secretary; and Gus
Scurlock, superintendent of agents.
Re-elected directors are H. F. Gross,
Harold S. Evans, Des Moines; R. Lloyd
Young, Oelwein, Iowa; and R. J. Sul
livan, New Hampton, Iowa.

Policyholders National
Total insurance in force amounting
to $56,896,106 is shown in the 30th
annual statement of the Policyholders
National Life Insurance Company of
Sioux Falls. Total assets of the com
pany are $8,917,069.
Insurance in
force of the company has increased
$26,000,000 in the past 5 years and
assets have increased $5,500,000.
The Policyholders National Life
presents a nice statement and shows
$114.79 in approved assets for each
$100 of liabilities. The average of all
American companies in this respect
is $106.90.
At present, the company is licensed
and operating in South Dakota, North
Dakota, Minnesota, Iowa, Nebraska,
Wyoming, Montana, Idaho, Washing
ton and Oregon.

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

PROTECTED
It's a comfortable feeling, isn't it? Knowing that
your property is protected by insurance that is suited
to your individual needs.
That's the feeling that you want to secure for your
clients as well as your stockholders.
W e are proud of the many fine banker agents who
represent us throughout the middle west. W e know
they want the best for their clients and we are happy
that they feel that service can be found at

WESTERN MUTUAL
FIRE INSURANCE COMPANY
Ninth and G rand

Oes Moines, Iowa

N orthw estern

B an ke r. M a r c h ,

1949

Insurance

(Continued from page 17)

type of loan in which there is the
greatest danger of over-expansion.
Margins have been large the past few
years, and in some cases fantastic.
This condition would naturally attract
men to a cattle feeding program who
ordinarily do not feed, and encourage
average feeders to buy more cattle.
Feeding costs are low this year and
the ratio to price very favorable. Cat
tle can be fed on a narrower margin
and there is nothing in the current
picture to indicate a serious decline in
market prices. Farmers know these
things and are inclined to be optimis
tic and want to take advantage of
conditions. The cycle is bound to take
its course and some day the trend will
be in reverse. Even now. there is
evidence of ample supply in consumer
goods, such as clothing, shoes and
household appliances. That usually is
a pretty good barometer. It seems to
me that the time to discourage over
expansion is before the trend reverses
and not after. That point may not
be just at this time, but caution cer
tainly is a safe procedure to follow.

here, of course, is seasonal, and if we
are to set the loan up on a sound
basis we should provide the operating
costs as needed. This can best be
done with a budgeted loan.
Cattle feeder loans appear to be the

The problems confronting us in ex
tending credit for the purchase of feed
er lambs are about the same as with
feeder cattle, with the additional one
of experience, or rather the lack of it.

ers Association. Mr. Bennett is as
sistant comptroller of the Bankers
Trust Company, New York, New York.
The new policy, superseding certain
varying terms and conditions of poli
cies issued by different companies, in
cludes important improvements in ad
dition to changes effected in existing
policies since March 1, 1947, by en
dorsement.
In his announcement,
Mr. Bennett said: "The endorsement
was regarded as temporary, and at
conferences of the A.B.A. Insurance
and Protective Committee with under
writers’ representatives prior to
March, 1947, it was agreed that further
study should be given to standardizing
and improving the entire policy. The
two groups conferred again last sum
mer and, as a result of these discus
sions, the new standard policy fur
nishes broader coverage in many
respects.”

6 AGRICULTURAL PROBLEMS
FACING BANKERS

Breeder Cattle Loans
Loans on breeder cattle present
quite a price problem. The prices are
high and it will take quite a long
time for these loans to be paid. It
would seem to me that a full purchase
price loan on breeder cattle would be
very hazardous at this time. Before
returns could be realized on the loan,
prices could be materially lower.

Harvested Grain Loans
Most loans to hold and carry har
vested grain have presented no prob
lems at all, as they have been made
by and under the guarantee of the
Commodity Credit Corporation. Last
fall it was different. Most of our
customers were coming to us with
Commodity Credit certificates which
were nothing more than an agreement
to purchase a certain amount of grain
of a specified grade and at the guar
anteed price. That presented the prob
lem of being assured the conditions
would be met, if we granted the loan
on the basis. of the certificate issued.
We had to be assured that the amount
of grain was there, would qualify as
to grade, and was adequately stored
and properly insured. In pur bank we
were making these loans on 80 per
cent of the amount and on a chattel
mortgage basis unless the borrower
was entitled to unsecured credit.

NATIONAL SURETY
CORPORATION
V IN C E N T

C U L L E N , President

F IN A N C IA L S T A T E M E N T
December 31st, 1948
LIABILITIES, CAPITAL A N D SURPLUS

ASSETS
Cash in B a n k s ..................................... $ 4,137,217.60
Investments:
United States Gov
ernment Bonds $15,715,861.81
State and Municipal
Bonds . . . .
5,065,317.39
Corporate Discount
Notes . . . .
2,223,288.19
Preferred Stocks . 3,724,080.00
Common Stocks . 7,512,092.52
34,240,639.91
Capital stock of National Surety Marine
Insurance Corporation, a wholly
1,794,345.38
owned subsidiary................................
Premiums in Course of Collection,
2,448,877.99
Not over 90 Days D u e .....................
114,316.83
Accrued Interest . . Y .
Reinsurance and Other Accounts
131,511.25
R e c e iv a b le ...........................................
500.000.00
Home Office B u ild in g ...........................
T O T A L A D M IT T E D ASSETS

N orthw estern

Ban ke r, M a r c h ,

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

1949

. $ 4 3 ,3 6 6 ,9 0 8 .9 6

Reserve for Losses and Loss
Adjustment Expenses...........................$ 7,024,723.30
Reserve for Unearned Premiums . . . 13,335,831-38
Reserve for Commissions, Expenses
and T a x e s ...........................................
1,575,444.04
Capital Stock . . .
$ 7,500,000.00
13,930,910.24
S u rp lu s.....................
21,430,910.24
Surplus to Policyholders.....................
T O T A L ........................................................ $ 4 3 ,3 6 6 ,9 0 8 .9 6
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 promulgated by the National
Association of Insurance Commissioners. If investments, including
those of National Surety Marine Insurance Corporation, a wholly
owned subsidiary, were carried at the December 31st, 1948 mar
ket quotations, total assets and surplus would be increased by
$133,786.96.
Bonds carried at $1,163,720.22 are deposited as required by law.

Insurance
Real Estate Loans
For the most part, farm real estate
loans have been on a fairly sound
basis, but there have been some cases
that present their problems, greatest
of which has been paying too much
for the farm. If the purchaser has
a large equity, it does not make too
much difference, but if not, that is a
different matter. We have had to de
cline a few because too much credit
was required when considering the
long-range price structure. There have
been some cases, too, where there has
been over-expansion in improvements.
Sound real estate loans go farther
than just the one factor that the farm
can be sold for the amount of the
mortgage. These are the problems of
which we must he very careful.

practiced and best use of the land is
made.
You may feel that your volume of
business does not warrant the employ
ment of a full-time fieldman. That
may be true, but there is a lot of time
before nine in the morning and after
closing hours in the afternoon. Much

can be accomplished in those times.
It has been done by many banks. If
done conscientiously, you will find it
will not be long before it will be nec
essary to employ a full-time fieldman.

Soil Conservation
I have mentioned soil conservation
and land use as a problem, particu-

.
'tAyFulF''A/'"

MAKING
GOOD!!

Unsecured Loans
Problems arising in unsecured loans
are, T believe, a great deal of our
own making. We are too inclined to
take too much for granted and not
thoroughly analyze the situation. We
think we know the customer, that he
has a good financial position and is
good for most anything he asks. It
seems to me that we should screen
every request in loans of this type,
be assured the purpose is good for
the borrower, and that the loan is
set up on a sound basis.

Secured Loans
A great deal of trouble can be
avoided on all secured loans if the
borrower is required to apply the pro
ceeds of the sale of all property in the
chattel mortgage on the loan. Under
the law, no other procedure can be
followed. The borrower may think he
needs that money, or part of it. but
it should and can be determined after
he pays on the loan. This can be
accomplished by making an advance
to the existing chattel mortgage, pro
viding the mortgage form with an
additional advance clause is used. For
the most part, farmers have become
educated to this procedure and there
need not be very many problems of
this nature.

— - — • _ .................
After a loss, no banker cares about the cost o f insurance.
Then the question is: "Are we covered?”
The Saint Paul Banker’s Blanket Bond (Form No. 24,
with extended coverage) is designed to give the greatest
protection possible. Call a Saint Paul agent.

B A N K E R ’S

BLANKET

BONDS

^
_

L. R. (Lett) M oeller, Exec. State A gent

SAINT PAUL-MERCURY INDEMNITY COMPANY
111 West Fifth Street

Saint Paul 2, Minnesota

Insurance Counsellors to Banks

N ow Starting O u r
S e co n d 2 0 Y e a rs

Knowledge of Farm
To face and solve these problems, we
must have an adequate knowledge of
the farm and its capacity to produce.
I do not see how we can acquire
that knowledge without an inspec
tion. A man well versed in farm
ing can soon tell, by visiting a par
ticular farm, whether or not it has
the capacity to produce and is oper
ated on a sound basis. He can ob
serve many things, such as the gen
eral condition of the farm and its pro
ductivity, and whether or not the
farmer is efficient in his work and
has managerial ability. He can deter
mine if enough soil conservation is

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

A s S tric tly A n A g e n c y Co.
Working With Seiected Agents Since 1929

•
i

DES MOINES /

ALLIED M U T U A L
CASUALTY COMPANY
)
Hubbell

Building

Harold S. Evans, President
Des Moines 7, Iow a
N orthw estern

Ba n ke r, M a r c h ,

1949

Insurance

larly in crop production loans. It not
only is in those loans, but in all loans,
as well as a problem affecting all man
kind. Too much emphasis cannot be
placed on this matter, and I think it
behooves all of us to do our part in
solving it. So far as agricultural
loans are concerned, I would far rath
er increase the amount for soil con
servation purposes to where it might
seem like too much credit, than to
leave it out if it means the farmer
would not be able to follow a soil con
servation program.
Let us do our part. The land is
the heritage of all of us and we must
preserve it.
If we take heed to the danger sig

nals of over-expansion, over-produc
tion, over-confidence and the general
inflation picture, I believe that our
problems will not be great and our
troubles few.—The End.

BANKERS YOU KNOW
(Continued from page 20)
business of the moment, but for the
constant understanding of problems
and for providing a steady flow of
information among directors and ex
ecutive officers responsible for prog
ress of the bank. California Bank
now lias $431,237,453 in deposits with
total capital of $18,101,739.
During bis five years in Los An

56th ANNUAL STATEMENT
December 31, 1948
ADM I T T E D

ASSETS

C a sh in B a n k s and O f f i c e ................................................................$
F e d e r a l S a v in g s an d B u ild in g and L o a n A s s o c ia t io n s .
U n ite d

S ta te s

G overn m en t

S ta te , C o u n ty and

B o n d s ............................................

3 1 2 ,0 0 0 .0 0
1 ,5 9 5 ,2 4 1 .6 6

B o n d s .......................................

1 1 2 ,1 1 8 .4 9

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

1 0 5 ,9 3 6 .4 2

C a n a d ia n N a tio n a l R a ilw a y B o n d s ............................................
(G u a r a n te e d b y C a n a d ia n G o v e r n m e n t )

1 0 3 ,3 8 1 .8 6

P u b lic

1 47,121.61

C a n a d ia n B o n d s

U tility

M u n ic ip a l

3 6 8 ,5 0 9 .8 1

B o n d s ...........................................................................

M is c e lla n e o u s B o n d s
S to c k s

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

1 0,0 0 0 .0 0

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

1 4 2 ,8 90 .1 3

A ccrued

In te r e s t and D iv id e n d s .................................................

A g e n t s ’ B a la n c e s ..................................................................................
( N o t o v e r 9 0 d a y s d u e)
O t h e r A s s e t s .............................................................................................
TO TAL

A D M IT T E D

9 ,8 9 1 .4 2
6 6 ,9 1 5 .2 0
6 74 .1 9

A S S E T S ..................................... $ 2 ,9 7 4 ,6 8 0 .7 9

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 o s s e s in cu rre d and in p ro c e ss o f a d ju s tm e n t)
R e s e r v e fo r U n e a r n e d

4 9 ,7 7 2 .7 3

P r e m i u m s ..............................................

1 ,5 0 7 ,3 7 5 .1 2

R e se r v e fo r T a x e s and E x p e n s e s ..............................................

5 6 ,0 4 9 .0 9

O t h e r L ia b ilitie s

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

1 ,2 0 2 .04

T o t a l L ia b ilitie s and R e s e r v e s ........................................... $ 1 ,6 1 4 ,3 9 8 .9 8
G u a r a n ty F u n d
S u rp lu s

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

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

SURPLUS
TO TAL

2 0 0 ,0 0 0 .0 0
1 ,16 0 ,2 8 1 .8 1

P O L I C Y H O L D E R S .................................

1 ,3 6 0 ,2 8 1 .8 1

............................................................................................ $ 2 ,9 7 4 ,6 8 0 .7 9

INSURANCE IN FORCE DECEMBER 31, 1948

$896,597,386.00

t/own'Ahdeta/
DWELLING INSURANCE COMPANY
B. REES JO N E S , President
HOM E O F F IC E — Hubbell Building — DES M OINES

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

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

1949

geles, Mr. King has taken an active
part in civic organizations as well as
in national and regional banking asso
ciations. He is treasurer of the Great
er Los Angeles Plans, Inc., a private,
nonprofit organization sponsoring and
developing the Los Angeles War Me
morial Auditorium and the Los An
geles Opera House; director and treas
urer of the All-Year Club of Southern
California; director and treasurer of
the American Cancer Society; direc
tor and treasurer of the Los Angeles
Area Building Funds, Inc.; director of
the Founders’ Fire and Marine Insur
ance Company, and a trustee of the
University of Southern California.
At present he is president of the
State Bank Division of the American
Bankers Association and holds other
A.B.A. offices. He serves on two com
mittees of the California Bankers
Association; is a director of the Los
Angeles Branch of the Federal Re
serve Bank of San Francisco; is a
member of the board of trustees of
the Controllership Foundation, Inc.,
and a member of the clearinghouse
committee of the Los Angeles Clear
ing House Association.
Mr. King also is a member of the
California Club, Stock Exchange
Club, Los Angeles Country Club and
Bel-Air Bay Club.
Mr. King was married to Lucille
Alhime in 1924 and they have three
children, Frank L., John Frederick
and Robert Alexander.

Moeller Assistant Secretary
Of special interest to his many bank
er friends in the midwest was the
recent election of Leonard R. Moeller
as assistant secretary of the St. PaulMercury Indemnity Company. Mr.
Moeller was executive state agent for
the St. Paul-Mercury for a number of
years, specializing in bankers’ blanket
bonds, and has built up a very large
acquaintance through his many years
of attending state conventions and
group meetings in this area.

Irving Trust
Irving Trust Company, New York,
announced the promotion of John F.
Childs and Olavi Silvonen from as
sistant secretary to assistant vice pres
ident and the appointment of Arnold
H. Nichols as an assistant secretary.
Mr. Childs has been with Irving
Trust Company since 1940, except for
the period 1942 to 1945, during which
he served in the United States Navy.
He was appointed assistant secretary
in 1947 and is a member of the official
staff of the bank’s public utility de
partment.
Mr. Silvonen joined the Irving’s
staff in 1941 as a security analyst. On

Insurance
his return from three years’ service in
the United States Navy he resumed
his former duties and is now in imme
diate charge of the security analysis
department.

Minnesota Commercial
Men's Association
The Minnesota Commercial Men’s
Association of Minneapolis had a very
successful year during 1948. During
the year the association made an in-

rate of 1.5218 per cent, which city
officials said reflected the AA credit
rating of the city by Moody’s Inves
tors’ service.
Twenty-nine bids by syndicates rep
resenting sixty-six of the largest in
vestment and banking firms in the
nation were received for the 20-year
serial bonds.
The City National Bank and Trust
Company bid was for $46,000 of the
bonds, to bear 3 per cent interest and
to mature in 1950 and 1951, and for
$407,000 at IV2 per cent, to mature
from 1952 to 1969. It offered a pre
mium of $7.40, which made the cost

of the bonds $71,692.60 over the 20year period.
The $453,000 in bonds are the first
of the 41% million dollars in bonds
voted in the November, 1947, election.

Heads Clearinghouse
William C. Connett, executive vice
president of the First National Bank
in St. Louis, has been re-elected presi
dent of the St. Louis Clearinghouse
Association. Harold T. Jolley, presi
dent of Boatmen’s National Bank, was
re-elected vice president and R. R.
Tillay was re-elected manager.

A nother Year of Grow th Shows
GAINS IN ASSETS

G A IN S IN RESERV ES

GAINS IN SURPLUS FUNDS

GAINS IN PREMIUM INCOME
G A IN S IN IN S U R A N C E IN F O R C E

PAUL C. C L E M E N T
Secretary and Manager

crease in its assets and in the report
of Paul Clement, secretary and general
manager, they now total $438,028. As
sets are divided as follows: Cash,
$64,861.56 (14.9 per cent); U. S. gov
ernment bonds, $142,530 (32.5 per
cent); municipal bonds, $129,527 (29.6
per cent); railroad bonds, $13,875 (3.2
per cent); stocks, $21,860.25 (5.0 per
cent); endowments, cash value, $29,478.88 (6.7 per cent); savings and loan
deposits, $10,186.98 (2.3 per cent); real
estate, $17,400 (4.0 per cent); interest
receivable, $2,125.02 (0.5 per cent);
market value over book value of
stocks and bonds, $6,183.40 (1.4 per
cent).
Secretary a n d General Manager
Clement is widely known in the health
and accident business. His hobby has
been conservation. He has served as
national president for the Izaak Wal
ton League and makes many speeches
on the subject of conservation before
local chapters of the Izaak Walton
League and other conservation organi
zations.

Buys Bonds
The City National Bank and Trust
Company of Kansas City, Missouri,
bought $435,000 in sewer bonds of
Kansas City, at an effective interest

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

Financial Statement— January 1. 1949
ASSETS
Cash and Bonds....................................................................................... $3,362,136.11
First Mortgage Loans on Real Estate..............................................

4,433,452.46

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

188,808.29
607,761.54

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

149,781.78

Interest and Rents Due and Accrued..........................................

51,028.28

Net Premiums inCourse ofCollection...............................................

124,100.87

Total Assets

...................................................................................$8,917,069.33
LIABILITIES

Policy Reserves

.....................................................................................$6,585,886.01

Reserves for Policyholders Dividends..........................................

180,848.07

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

638,750.69

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

387,585.09

Total Liabilities

........................................................................... $7,793,069.86

'Surplus to Policyholders..................................................................... 1,123,999.47
Balance

.......................................................................................... $8,917,069.33

'Includes Capital Stock $204,404.67.

POLICVHOLDER’S DATIOIIAL L ift
INSURANCE COMPANY
SIOUX FALLS, SOUTH DAKOTA
N orthw estern

Ban ker, M a r c h ,

1949

h e l p in g

m ake

OD C O M M U N ITIE S
"

b e t t e r

A FARM W ELL TILLED, A BARN W ELL FILLED
“ When tillage begins, other arts follow. The
farmers therefore are the founders of human
civilization.” Thus Daniel Webster defined
the historical significance of farming.
It’s only- a short step— historically, cultur
ally and economically— from our farms to
our towns and factories and institutions.
M any of our traditions and faiths and ways

of life are deeply rooted in the good earth.
There’s something real about farming that
builds people who are sound and steady and
self-reliant and honest. . . the kind of people
bankers welcome as customers. No wonder
F IR S T of Minneapolis welcomes every op
portunity to help banks serve their farm
communities better.

HOW

HELP

CAN

F IR S T

HELP

YOU

HENRY

Vice President
J. J. M A LO N E Y , Assistant Vice President
k . t . m a r t i n , Assistant Vice President
.

grangaard

TTT,„T™

. A T W O O D , P r e s id e n t

B A N K S

corchran

■.
,

AN D

B A N K E R S ------------------------------------------------------

. . .

} lc^ resi^ ent
Assistant Vice President

Member Federal Deposit Insurance Corporation
N orthw estern

Ban ker, M a r c h , 1949

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

COMMUNITY?

NATIONAL BANK OF MINNEAPOLIS

-----------------------------------------------------D E P A R T M E N T
m

YOUR

J. m . d o w n e s ,

Assistant Cashier

s . R . o m l i e , Assistant Cashier
R Q W EYRAUCH> Representative

55
elected cashier of the Farmers State
Bank at Nerstrand.

M in n e s o ta

Remodeling at Red Wing

NEWS
M. O.GRANGAARD
President
Minneapolis

New President at Luverne
At the annual meeting of the Lu
verne National Bank, Luverne, Min
nesota, H. L. Smith, formerly vice
president, was elected president and
J. L. Goembel, formerly president,
was named chairman of the board.
Ben Fitzer, a member of the board,
was elected vice president. Other offi
cers are: G. P. Bauman, cashier; Lyle
M. Smith, assistant cashier, and H. C.
Nelson, assistant cashier.

Director at Northfield
Dr. Laurence McKinley Gould, pres
ident of Carleton College at Northfield,
Minnesota, has been elected a director
of the Northfield National Bank and
Trust Company.
Dr. Gould, internationally known
geologist and geographer, joined the
Carleton faculty as a professor of
geology in 1932, and since 1945 has
served as president of the college.
All directors of the bank were re
elected. The Northfield National Bank
and Trust Company is affiliated with
First Bank Stock Corporation.

Returns to Marshall
A. E. Persons, cashier of the West
ern State Bank of Marshall, Minne
sota. and Mrs. Persons recently re
turned to Minneapolis by plane from
Los Angeles, then returned to Mar
shall. Mr. Persons and his wife had
left early in January for a vacation on
the west coast but while there he
underwent emergency surgery. Mr.
Persons is expected to be back at his
desk the early part of March.

ROBERT E. PYE
Secretary
Minneapolis

nesota, at the annual meeting of the
hoard recently.
Mr. Manthey will fill the position
vacated by J. E. Farrell, who retired
last fall.
Surplus was increased $50,000 by
action of the board.
N e w D ir e c t o r a t W a lk e r
Leonard P. Peterson, Cass county
register of deeds, was elected to the
board of directors of the First Na
tional Bank of Walker, Minnesota, at
the annual meeting of the group.

A remodeling program, costing sev
eral thousand dollars, is under way at
the First National Bank, Red Wing,
Minnesota, according to Leon Kaliher,
president.
The interior will be completely re
done, ceilings will be lowered and
sound-proofed and a new lighting sys
tem put in. In addition, new banking
machinery and equipment will be in
stalled.

Elected Cashier
Jerome A. Stotke. a member of the
Farm Bureau Association, was elected
cashier of the Citizens State Bank of
Waverly, Minnesota, as well as a di
rector, at the annual meeting.
Capital assets of the bank were in
creased to $50,000 by the board of
directors.

Duluth Dinner Speaker
New St. Cloud Officer
George J. Meinz was elected presi
dent of the American National Bank
of St. Cloud, Minnesota, at the annual
meeting. W. J. Bohmer will serve as
vice president.
Other officials include B. R. Meinz.
cashier, and C. E. Schoener, A. .J.
Eveslage, T. P. Galernault and Elinda
G. Laubach, assistant cashiers.

Moves to Nerstrand
Raymond Kalow, formerly assistant
cashier of the Security State Bank
of Waterville, Minnesota, has been

Harry W. Gooch, assistant cashier
of the First and American National
Bank of Duluth, Minnesota, spoke on
the subject of job relations at a dinner
meeting of the Lake Superior Confer
ence of National Association of Bank
Comptrollers in Duluth last month.

Moves to Austin
William H. AVitte of Wabasha is a
new assistant cashier at the Austin
State Bank. Austin, Minnesota. He
has been cashier of the First State
Bank of AA^abasha, with which he had
been employed for the past 27 years.

Qiwsi&JtmsLnJL Ss¿£juáíí1sl&^

Winona Changes
Chester A. Fockens, vice president
of the First National Bank of Winona,
Minnesota, was given the additional
duties of cashier at the recent annual
meeting. C. W. Britts, formerly vice
president and cashier, relinquished the
cashiership to accept appointment as
executive vice president. G. M. Rob
ertson. president, and other officers
were re-elected.

Elected Cashier
Frank Manthey, formerly assistant
cashier, was elected cashier of the
First National Bank of Waseca, Min
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Specialists in Corporate and Municipal Securities o f
the Central Northwest

J. M. D ain & C ompany
ST.

PAUL

TELEPHONE

MINNEAPOLIS
A T L A N T IC

8141

DULUTH
TELETYPE

N orthw estern

M P -7 3

Ban ke r, M a r c h ,

1949

Minnesota News

New Cloquet Bank Building
Doors of the new banking home of
the First. National Bank of Cloquet,
Minnesota, hailed as one of the most
modern and efficient banks in this sec
tion of the country, were opened to
the public for the first time last
month.
F O R S A L E — O ld
lio n d o lla r b a n k an d
rich d a ir y se c tio n .
w estern B a n k er, 527
Io w a .

e s ta b lis h e d 2 % m il
in s u r a n c e a g e n c y in
W r ite H M F N o rth
7 th S t ., D e s M o in e s ,

FOR S A L E :
B u r r o u g h s S t y le 1 3 1 3 0 2
T a l l y R o ll P o s t i n g M a c h in e ; a c c u m u la t e s
c h e c k s, d e p o s its and n e w b a la n c e s . R o o t
R iv e r S t a t e B a n k , C h a tfie ld , M in n .

Directors, officers and employes of
the bank were hosts at “open house”
marking completion of the First Na
tional’s new quarters.
Located on the northwest corner of
Cloquet Avenue and Eighth Street,
the new building, with its distinctively
functional exterior, has been a focal
point of community interest ever since
the start of construction early last
spring.
Growing steadily ever since its
founding in 1900, the First National
has assets of over $7,000,000 and had,
completely outgrown its old quarters.
Officers of the bank are Lynn S. Olson,
president; C. I. McNair, Jr., vice presi
dent; W. N. Campbell, cashier, and
Arthur J. Anderson and C. K. Sunnar-

VISI0NLINED TRACTORS

borg, assistant cashiers. Directors are
Harry T. Kendall, Jr., A. H. Kennedy,
Allen Spafford and Messrs. McNair
and Olson.

Clearing House Head
Herman C. Matzke, president of the
City National Bank, was elected head
of the Duluth Clearing House Asso
ciation at its annual meeting in the
First and American National Bank
Building last month. Mr. Matzke suc
ceeds Willis D. Wyard, president of
the First and American National
Bank.
Other officers chosen were Wilbur
F. McLean, first vice president; Mr.
Wyard, second vice president; Julian
V. Hagberg, secretary-treasurer, and
Sylvester T. Strain, manager.
The Duluth Clearing House Associa
tion endorsed Willis A. Putman, vice
president of the First and American
National Bank, as a candidate for the
Minnesota Bankers Association vice
presidency.

Thirtieth Anniversary

etT THl JOB DONS OH TIMl!
R u g g e d n e s s a n d a ll-r o u n d “ g o ” are c o u p le d
w ith fu e l e c o n o m ie s in M M
Visionlined
T r a c t o r s t o a ssu re r e se rv e p o w e r a n d o u t
s ta n d in g p e r fo r m a n c e u n d e r a ll field a n d
w e a th e r c o n d itio n s . F r o m th e fa m e d M M
V is io n lin e d “ fo u r s o m e ” — th e m o d e ls R , U ,
Z a n d G T B — c h o o s e th e p o w e r -p a c k e d
tr a c to r e n g in e e re d fo r your p a r tic u la r f a r m
n e e d s ! S p e c ia l fe a tu r e s in c lu d e : fe w e r p a r ts
a n d g r e a te r a c c e s s ib ility ; a n t i-f r ic t io n s e a le d
tr a n s m is s io n s w ith p r e c is io n -c u t , h e a t - t r e a t e d ,
a llo y ste e l g e a r s; h ig h tu r b u le n c e t y p e c y lin d e r
h e a d s ; fo r c e -fe e d lu b r ic a t io n s y s t e m s . “ Q u ic k O n — Q u i c k - O f f ” to o ls fo r a ll M M V is io n lin e d
T r a c t o r s o ffe r g r e a te r u t i lit y a n d re a l e c o n o m y .
Safe, dependable M M V is io n lin e d T r a c t o r s
m e a n t im e s a v e d a n d m o r e p r o fits o n all y o u r
f a r m p o w e r -jo b s — all t h e y e a r r o u n d ! N o m a t
te r h o w t o u g h th e j o b , th e r e ’ s a n M M T r a c t o r
fo r better a n d easier fa r m in g . . . r e a d y to g iv e
y o u t h a t p r o fita b le t e a m w o r k 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 in e s .

Last month marked the 30th anni
versary of Frank P. Powers with the
Kanabec State Bank. He assumed the
cashiership of the Quamba State Bank
February 1, 1919.
In January, 1921, he was elected
president and has served in that ca
pacity ever since.
February, 1932, the bank was moved
to Mora and the name changed to
Kanabec State Bank.

Edward F. McCarthy
Edward F. McCarthy, 85, vice presi
dent of the Citizens National Bank of
Madelia, Minnesota, and associated
with that institution since 1913, died
at his home recently.

Blooming Prairie Cashier
At the annual meeting of stockhold
ers of Farmers & Merchants State
Bank of Blooming Prairie, Minnesota,
Edward C: Habberstad, a native of
Blooming Prairie, who attained the
rank of colonel in the U. S. Army Air
Corps in World War II, was elected
cashier.
He is a son of E. 0. Habberstad,
president, who announced that $5,000
was added to the surplus fund, in
creasing it to $70,000, making the cap
ital, surplus and undivided funds total
over $100,000.

Spicer Banker Honored

Min n e a p o l is -M o l in e P o w er I m p l e m e n t C ompany
MINNEAPOLIS

N orthw estern

Ban ker, M a r c h ,

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

1949

MINNESOTA

E.
J. Rykken, vice president and
cashier of the Green Lake State Bank
at Spicer, Minnesota, was guest of
honor at an “open house” affair held
at the bank last month. The public
was invited to the event, which
marked Mr. Rykken’s 25th year of
service with that bank.

a year ago was elected its president.
h . Ke n n e d y , presi
Other officers of the First Bank
dent of the First Bank Stock
Stock Corporation were re-elected by
Corporation since 1941, and Ellwood
directors at the meeting. They in
O. Jenkins, vice president since 1947,
were named chairman of the board clude Julian B. Baird and Henry E.
of directors and president, respective- Atwood, vice presidents; Hugh W.
Martin, treasurer; Lawrence B. Hogue,
secretary; Leonard O. Fredell, assist
ant secretary, and Andrew R. Moor
head, assistant treasurer.
In addition to Messrs. Jaffray, Ken
nedy and Jenkins, all present directors
of the corporation were re-elected.
ugustus

Ashton Carhart, a vice president of
the First National Bank of Minne
apolis, has been elected president of
the University Club of Minneapolis.

E L L W O O D O. JEN K IN S
President, First Bank Stock Corporation
M inneapolis

ly, at the annual meeting of the cor
poration’s directors recently in Minne
apolis.
Mr. Kennedy succeeds Clive T.
Jaffray, who will continue to be a di
rector.
Following extended service as a vice
president of the First National Bank
of St. Paul, Mr. Kennedy in 1931 be
came vice president of the First
Service Corporation, operating affiliate
of the First Bank Stock Corporation.
In 1935 he was elected vice president
and director of First Bank Stock, ad
vancing to the presidency in 1941.
From 1936 to 1947, Mr. Jenkins
served as president of the First Na
tional Bank of Great Falls, Montana.
For five years he has been a director
and for two years a vice president of
the First Bank Stock Corporation.
In 1947 he came to Minneapolis as
executive vice president and director
of the First Service Corporation and

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

Julian B. Baird, president of the
First National Bank of St. Paul, has
been re-elected treasurer of the Min
nesota Community Research Council,
Inc. Mr. Baird also was named to the
executive committee of the council,
which seeks to protect Minnesotans
from unequal solicitations of funds by
local and national organizations.
Also elected to the executive com
mittee were Henry E. Atwood, presi
dent of the First National Bank of
Minneapolis, and Henry S. Kingman,
president of the Farmers and Mechan
ics Savings Bank of Minneapolis.
The council formerly was headed by
J. Cameron Thomson, president of
the Northwest Bancorporation.
Bruce B. Dayton, secretary and
treasurer of the Dayton Company,
Minneapolis department store, re
cently was elected a director of the
First National Bank of Minneapolis,
Henry E. Atwood, president of the
bank, announced. Mr. Dayton is a
graduate of Yale University and rose
to the rank of captain during four
years of army service in the recent
war.
Donald L. MacGregor, assistant vice
president of the First National Bank
of St. Paul, has been elected to the
board of trustees of Macalester Col
lege, St. Paul.

William R. Chapman, vice president
of the Midland National Bank of Min
neapolis, participated recently in a
panel discussion with six bankers
from various parts of the nation at a
meeting of the midwest regional con
ference of Robert Morris Associates in
Chicago.
The First National Bank of Min
neapolis recently sponsored a tele

vision broadcast of presidential in
augural films over a Minneapolis tele
vision station.
Andrew R. Moorhead, assistant
treasurer of the First Service Corpora
tion since 1942, was named treasurer
at the annual meeting recently, Ell
wood O. Jenkins, president, an
nounced.
Mr. Moorhead succeeds
Hugh W. Martin, who has been vice
president and treasurer for the past
10 years. Mr. Martin was re-elected
vice president at the annual meeting.
Other officers re-elected were Mr.
Jenkins, president; J. M. Dougherty,
E. W. Leonard, F. S. Lytle and G.
Sidney Houston, vice presidents; L.
B. Hogue, vice president and secre
tary; L. O. Fredell, assistant secretary,
and K. H. Kanne, assistant treasurer.
Department managers re-elected
were B. S. Woodworth, advertising;
E. A. Tyler, buildings; 1). R. Mays, con
sumer finance; E. A. Lassila, credit; J.
P. Thornton, insurance; and C. L.
Arkenstine, purchasing. First Serv
ice Corporation is the operations affil
iate of the First Bank Stock Corpora
tion.

Minneapolis Clearing House Associ
ation named Henry E. Atwood its
president and Joseph D. Husbands as
its manager.
Mr. Atwood is president of the First
National Bank and Mr. Husbands vice
president and cashier of Northwestern
National Bank. Both terms are for
one year.
Ben S. Woodworth, assistant cashier
of the First National Bank of Min
neapolis, has been re-elected a direc
tor of the Minneapolis Athenaeum,
a library organization.
N orthw estern

Ban ker, M a r c h ,

1949

Minnesota News

Malcolm B. McDonald, a vice presi
dent of the First National Bank of
Minneapolis, was among speakers at a
recent gathering of trustees of Carleton College, Northfield Minnesota, in
Rochester, Minnesota. Mr. McDonald
is alumni trustee of the school.

Two Minneapolis bankers served as
judges for a “business idea” contest
sponsored by the Minneapolis Junior
Chamber of Commerce, Minnesota
Federation of Engineering Societies
and the Twin Cities Marketing Asso
ciation. They are Henry E. Atwood,
president of the First National Bank
of Minneapolis, and Joseph F. Kingland, president of the Northwestern
National Bank of Minneapolis.
Frank H. Kriz, retiring chairman of
the board of the First National Bank
of Hopkins, recently received a gold
watch at a dinner given in his honor
by the bank’s directors in recognition
of 38 years of service.
Henry E. Atwood, president of the
First National Bank of Minneapolis,
with which the Hopkins bank is affil
iated, made the presentation. Mr.
Kriz’ long service with the organiza
tion began in 1910. He advanced
through junior officerships to the
presidency in 1940 and to the chain

manship of the board of directors in
1946.
Julian B. Baird, president of the
First National Bank of St. Paul, was
named to a St. Paul committee in
charge of a drive to raise funds for
work in the study and control of heart
disease.
Guy W. LaEone, vice president of
the First National Bank of Minne
apolis, has ben elected president of the
First Minnehaha National Bank of
Minneapolis. He succeeds J. G. Byam,
who has retired from both the presi
dency and the board membership.
The First Minnehaha Bank is affil
iated with the First National Bank of
Minneapolis and with the First Bank
Stock Corporation. Mr. LaLone has
been associated with the latter bank
since 1929.

bring him in closer contact with the
operations of the North American
office where he started his career in
1913.
Clarence A. Maley of the American
National Bank of St. Paul recently was
elected to the board of directors of
the St. Paul Athletic Club.
Also
elected to the board was Wilfrid E.
Rumble, St. Paul, a director of the
Northwest Bancorporation.

Funeral services for Mrs. Sadie
Lilly, stepmother of Richard C. Lilly,
chairman of the board of the First
National Bank of St. Paul, were con
ducted recently in St. Paul.
Mrs.
Lilly died at the age of 84.

St. IV

iii

/ S*iotu>ers

William A. Benson, assistant cashier
of the Northwestern National Bank,
has been appointed to the advisory
board of the North American office of
the bank, J. F. Ringland, president,
announced last month.
Mr. Benson will remain principally
engaged at the Northwestern National
where he is in charge of the mortgage
department, but his new duties will

InCANADA and NEWFOUNDLAND - It ’
T h e

To United States banks, the Royal Bank offers a com
prehensive continent wide correspondent service north
of the border. Information available on trade contacts,
market opportunities, factory sites, etc. Enquiries
invited.
New York A gency —68 W illiam St., New York 5, N. Y.
O v e r 700 bra nches in C a n a d a , the W e s t Indies, C e n t r a l a nd South
A m e r i c a ; New York, London and Paris. C or re sp on de n ts the world over.

H EAD
A ssets e x c e e d

N orthw estern

Banke r, M a r c h ,

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

1949

O F F I C E - M O N TREA L

$ 2 ,000 ,000,000

In the fo u r parades in the St.
Paul W in ter Carnival last month,
the First National Bank o f St. Paul
float carried w ell know n characters
o f the M innesota T erritoria l period,
portra yed b y m em bers o f the bank
staff.
Theme o f this yea r’ s Carnival was
the state’ s centennial. The W in ter
Carnivals date b a ck to 1886.
A lso on the F irst N ation al float
was a replica o f the b u ildin g in
w hich Parker Paine, fou n der o f the
First N ational, con du cted his p io
neer b a n k in g business in the 185fl’ s.
T y p ica l o f pioneer characters p or
trayed on the float are the tw o men
in the a bove picture.
Standing is
Mr. Paine, and seated is James
G-oodhue, publisher o f the first new s
paper in the territory and fou n der
o f the M innesota Pioneer.

►
-

Minnesota News
Sixty-two employes of the 10 North
Banks in Minne
apolis recently were admitted to mem
bership in the banks’ 20-year club,
signifying completion of 20 years of
service. The club has a total mem
bership of 312.
western National

The Minnesota Bankers Association,
the Minnesota state banking depart
ment and the University of Minnesota
co-operated recently in sponsoring the
10th Annual Minnesota Bankers’ Con
ference at the university. Agricultural

and business trends were outlined by
a group of authorities.
Bankers who spoke included J.
Marvin Peterson, research director
for the Minneapolis Federal Reserve
Bank: Walter B. Garver, agricultural
economist for the Chicago Federal Re
serve Bank; Allen Crawford, vice
president of the Bankers-Equitable

Trust Company, Detroit; K. J. Mc
Donald, president of the Iowa Trust
and Savings Bank, Estherville, Iowa;
and Robert E. Pye, secretary of the
Minnesota Bankers Association.
Hilda Hoff, for many years with the
Minnesota state banking department,
died recently in Rush City, Minne
sota, at the age of 63. Funeral serv
ices and burial were in Minneapolis.
Arnulf Ueland, president of the Mid

land National Bank of Minneapolis,
recently was re-elected treasurer of
the Minneapolis club. Henry S. Kingman, president of the Farmers and
Mechanics Savings Bank of Minne
apolis, is retiring president.
C. T. Anderson of the Fourth North
western National Bank of Minne
apolis recently was re-elected treas

urer of the South Side Business Men’s
Association of Minneapolis.
Raymond E. Myhre, assistant cash
ier at the Fourth Northwestern Na
tional Bank of Minneapolis, has been
named treasurer of Augsburg College
and Theological Seminary of Minne
apolis. He will continue in his posi
tion at the bank.
Northwest Bancorporation, which
came into being 10 months before the
1929 financial crash, celebrated its
20th anniversary recently at the di
rectors’ annual meeting in Minne
apolis.
J. Cameron Thomson, president,
paid tribute to Edward W. Decker,
first Banco president; to the four ini
tial directors, James F. Bell, John
Crosby, Frank T. Heffelfinger and
John S. Pillsbury, and to three direc-

The Minnesota Commercial Men's Association had a very successful year during
1948.

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, 1948
RESOURCES

LIABILITIES

%
C a s h .......................................... . 14.8

$ 64,861.56

U. S. Government Bonds.......... 32.5

142,530.00

Unearned A ssessm ents........................ ...

Municipal Bonds ...................... 29.6

129,527.00

Reserve for Taxes, Unpaid Bills, etc...

Railroad Bonds ........................

3.2

13,875.00

Stocks .......................................

5.0

21,860.25

Endowments, Cash Value.....

6.7

29,478.88

Savings and Loan Deposits....

2.3

10,186.98

Real Estate ...............................

4.0

17,400.00

Interest Receivable .................

0.5

2,125.02

Market Value over Book
Value of Stocks and Bonds..

1.4

6,183.40

TOTAL................................. 100.0

$438,028.09

Disability Claims Pending.................... ...$ 28,317.43
42,215.50
6,637.59

RESERVE FOR PROTECTION OF
MEMBERS ......................................... ... 360,857.57

TOTAL.............................................. ...$438,028.09

Write for Applications and Literature

M I N N E S O T A 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 orthw estern

Ban ke r,

March,

1949

Minnesota News

tors elected later in 1929, Edgar M.
Morsman, Jr., Augustus L. Searle and
Fred Bohen. All seven directors re
main active today.
Mr. Thomson also paid tribute to
other directors who served from 1929
to 1945. They are Shreve M. Archer,
A. C. Cobb, George D. Dayton, W. A.
Hurst, Hanford MacNider, Isaac S.
Moore, George P. Tweed and Theodore
Wold.

During 1948, Mr. Thomson reported,
Banco and its 70 affiliated banks
served more customers and handled
more transactions than in any pre
vious year. Total earnings (consoli
dated) reached an all-time high of
$28,730,536, which was 8.4 per cent

greater than in 1947. Consolidated net
income was $5,382,193, equal to $3.47
per share, compared with $4,297,643,
equal to $2.77 per share in 1947. Net
cash income was $1,839,953, compared
with $1,805,872 in 1947.
Three Minneapolis bankers recently
were re-elected to key offices of the
Community Chest and Council of Hen
nepin County (Minneapolis). They
are Clarence R. Chaney, chairman of
the trust department and vice presi
dent of the Northwestern National
Bank of Minneapolis, who will con
tinue as vice president and chairman
of the chest’s office personnel and man
agement committee; Lowry Moore, as-

AN
INVESTMENT
SERVICE

sistant treasurer of the Farmers and
Mechanics Savings Bank of Minne
apolis, who was renamed vice presi
dent and chairman of the budget and
distribution committee, and Arthur H.
Quay, vice president of the First Na
tional Bank of Minneapolis, who will
continue as treasurer of the chest.
More lending at the community
level was urged in Minneapolis re
cently by Aksel Nielsen, Denver,
Colorado, president of the Mortgage
Bankers Association of America. Mr.
Nielsen came to Minneapolis to ad
dress the annual meeting of the Mort
gage Bankers Association of Minne
apolis, with members of the St. Paul
group as invited guests.
Mortgage bankers, he said, are
marking time, waiting for congress to
draw the picture in the lending field
for the next year or so. With Mr.
Nielsen as guest of honor was George
Patterson of Chicago, secretary-treas
urer of the national organization.
Donald N. Newhall is president of the
Minneapolis association.
Lew Wallace, trust officer and as
sistant secretary of the First National
Bank of Minneapolis, recently was
elected secretary of the board of
trustees of Breck school, St. Paul.

... tailored
fo r
you r bank
he individual investment requirements of your
bank can he met efficiently by our Investment Division.
And having the American National do your purchasing
and selling frequently saves money for your hank.
Here’s the reason: When we buy or sell Government,
stale, or municipal securities for your account, we exe
cute your orders in the open market to give you full
advantage of the best available prices. You decide what

Four Minneapolis bankers played
leading roles at the recent Farm
Forum sponsored by the Minneapolis
Chamber of Commerce. Henry E.
Atwood, president of the First Na
tional Bank of Minneapolis, was gen
eral chairman. Members of the Farm
Forum committee were Gordon Malen
of the First National Bank of Min
neapolis, L. O. Olson, vice president of
the Midland National Bank of Minne
apolis and Frank Parsons of the Fed
eral Reserve Bank of Minneapolis.
Ashton Carhart, a vice president of
the First National Bank of Minne
apolis, is treasurer of the Chamber of
Commerce.

is to he bought or sold, we handle the details.
The line background o f experience of the men in
our Investment Division may also he of value to you
in the analysis o f your investment account. Why not
discuss your investment problems with us?

A M E R IC A N

N A T IO N A L

BANK

A N D TR U ST C O M P A N Y O F C H IC A G O
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

LA S A L L E

N orthw estern

Banke r, M a r c h ,

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

1949

AT WASHINGTON

G. Sidney Houston, a vice president
of the First Service Corporation, was
re-elected recently as secretary-treas
urer of the Minneapolis Society of
Fine Arts.

A watercolor painting by Clarence
R. Chaney, vice chairman of the board
of the Northwestern National Bank of
Minneapolis, was selected recently to
hang in the 82nd annual exhibition of
the American Watercolor Society in
New York. The painting, showing the
Sixth street entrance of the bank
building, was reproduced on the
bank’s 1948 Christmas greeting cards.

Minnesota News
Dr. Albert A. Heed, a Minneapolis
dentist who helped organize the form
er Lake Street Bank of Minneapolis,
died recently at the age of 77. Serv
ices were conducted in Minneapolis,
and burial was in Humboldt, Iowa.

Minnsota’s 504 state banks are in
sound and healthy condition, Charles
M. Wenzel, acting Minnesota commis
sioner of banks, reported recently.
Mr. Wenzel said that 66 per cent of the
state bank assets are represented by
government bonds and cash. Deposits
have increased $11,130,422 since De
cember 31, 1947, and now total $992,636,631, he said. Loans went up $56.685.940 to $287,070,107.
Six Minnesota banks—three in Min
neapolis, two in St. Paul and one in
Duluth—were listed recently in the
roll call of the 300 largest commercial
banks in the United States.
The Northwestern National Bank of
Minneapolis was ranked 45th, with
deposits of $347,625,534 as of Decem
ber 31st; the First National Bank of
Minneapolis, 48th, $341,122,303; the
First National Bank of St. Paul, 60th,
$304,244,992; the American National
Bank of St. Paul, 232nd, $76,906,711:
the First and American National Bank

of Duluth, 247th, $71,332,398, and the
Midland National Bank of Minne

apolis, 300th, $57,558,756.
Bankers in the Ninth Federal Re
serve district handled more money
payments last year than in 1947, re
flecting the high level of business
activity, John N. Peyton, president of
the Federal Reserve Bank of Minne
apolis, disclosed recently in the bank’s
annual report.
Although total bank deposits were
down slightly from 1947, they changed
hands more rapidly and hence did
more money work as bank loans
reached an all-time peak, Mr. Peyton
said. The Minneapolis bank and its
branch at Helena, Montana, handled
58,500.000 checks in 1948 with a total
dollar value of $21,000.000,000.
Eleven employes of the First Na
tional Bank of Minneapolis have com
pleted 24 years of service with the
bank.
They are Melvin Peterson,
Henry .1. Helgeson, M. C. Setterberg,
Klemet E. Jensen, Lawrence A.
Doherty, Ann Potasnak, L. C. Peter
son, Eva L. Engel, Marie S. Anderson,
Alice F. Hanuen and Marion L. Trniiible.

SUB-ASSEM BLIES
A finished automobile is the result o f
assembling a number o f sub-assemblies.
Thus the ignition system, the pistons
and rods, the frame and springs, the
body and hardware, might be classed
as major sub-assemblies. Previously a
large number o f minor sub-assemblies
were manufactured, for example the
parts that make up the distributor, or
the fuel pump, or the oil filter.
D uring the manufacturing processes
of these sub-assemblies the shape o f the
finished product is not indicated, except
o f course to those engaged in the plan
ning and building o f it. So it is some
times with a process of thought and
the ultimate acceptance o f an idea. The

recognition o f the fully developed idea
sometimes appears to burst into full
view, having at last taken on a recog
nizable form, and the thing we see is
the completed product and not the con
tributing factors o f its formation.
Applied to the Personalized Check
program, we observe the sub-assembly
process at work. Here and there these
assemblies are now taking shape. With
more frequency this year we recognize
full acceptance o f the idea in its entirety.
In other words, the program is taking
shape. More and more bankers are rec
ognizing the complete picture and are
appreciating the full significance o f the
program itself.

A t what stage o f acceptance are you? How far have you progressed
toward the final assembly? How close are you to adopting the full
imprinting program? Wherever you are, we are prepared to help
you put the parts together to the end that all your customers ulti
mately will be using imprinted checks, thus making your handling
operations easier and more accurate, thus saving you time and
money, thus pleasing more o f your customers.

LAWRENCE
SERVICE
Now Can
Protect Your
Smaller Loans
I n addition to our
standard field warehousing
service as conducted for 35
years, Lawrence has now
opened a special “ Sm all
Business” Department.
The same efficient
safeguards which Lawrence
provides fo r your larger
commodity loans are now
available for loans ranging
from $25,000 down to as
low as $5,000.
T his extension o f
Lawrence service is ready
now to help improve your
present loan portfolio. It
opens a vast new field for
profitable loan business on
moderate size inventories.
A Lawrence repre
sentative is ready to confer
with you or your client and
explain the working of this
new “ Small Business” serv
ice in full detail.

Iaw r en ce W a r eh o u se
Com pany
N ationw ide Field W arehousing
DIVISION OFFICES:
SAN FR A N CISCO 11, CALIF.
3 7 Drumm St.

N EW Y O RK 5, N. Y.
7 2 W a ll St.

C H IC A G O 2, ILL.
100 N. La S a lle St.

M a n u fa c t u r in g P la n ts a t :
NEW

CHE C K P R I N T E R S

cùrie

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

Y O R K , C L E V E L A N D , CH ICAG O , K A N S A S C IT Y , ST. PAUL

Los Angeles • Boston • Philadelphia • Pittsburgh
Buffalo • Clevelan d • Cincinnati • Kansas City
St. Louis • Atlanta
•
Des Moines • Charlotte
New O rleans • Houston • D allas • Denver • Phoenix
Portland • Seattle • Spokane • Stockton • Fresno
Washington, D. C . • M anila, P. I.

N orthw estern

Ban ke r, M a r c h ,

1949

Minnesota News

Several members of the First Na
tional Bank of Minneapolis organiza
tion have been elected to important
civic posts. Arthur Nettum has been
elected treasurer of the West Broad
way Businessmen’s Association. Gor
don M. Malen was named president of
the Twin City Financial Public Re
lations Association. Richard McCune
was elected finance officer of Frank
H. Lundberg American Legion post.
Henry V. Bruehholz was re-elected
treasurer and Kenneth R. Johnson
was renamed secretary and assistant
treasurer of the Minneapolis Founda
tion.
Playing leading roles in the Henne
pin county (Minneapolis) Red Cross

drive were Cecil A. Burnham, general
chairman; Malcolm B. McDonald, vice
chairman; George Everitt, and Philip
H. Nason.
Evan M. Johnson, former assistant
comptroller of the First National Bank
of Minneapolis, has joined the Na
tional Association of Bank Auditors
and Comptrollers as executive direc
tor. He served as national president
of the association in 1935 and 1936.
Recently he had been associated with
the Capital National Bank of Sacra
mento, California.

All directors were re-elected and two
additional directors were named to

lllllllllll^^

UL bank

CARL

atthe

L. FREDR 1CKSEN
President

YARD S

“Spot Service 1

M AR K A. W IL S O N
Vice President

"Spot Service" is one of the most
important features of Live Stock
National Bank Service. W e are in
the heart of the Sioux City Stock
Yards, where buyer, shipper, and
processor all meet.

C LIFFO R D L. A D A M S
Vice President
W IL L IA M C. SCH ENK
Asst. V. Pres, and Cashier
JOHN S. H A V E R
Asst. Cashier
JAM ES L. SM IT H
Asst. Cash: er and Auditor

In this strategic spot, we offer you
the "Spot Service" you and your
customers need. Your account here
is invited.

K IN L E Y W . SM IT H
Asst. Cashier
STANLEY W . EVANS
Asst. Cashier

LIVE STOCK
N ation al Bank
4

SIOUX CITY

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N orthwestern Ba n ke r, M a r c h , 1949

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

the board of the Fidelity State Bank
of Minneapolis at the annual stock
holders’ meeting, C. Herbert Cornell,
president, announced recently.
The new directors are Loyal Simensen and Eugene Hickok. Mr. Simensen was elected vice president. Also
promoted was Edward Turnblom, who
was named an assistant cashier.
Election of George T. Povey as a
new assistant cashier of the Qherokee
State Bank of St. Paul has been an
nounced by the institution’s board of
directors.
Ganus V. Fait, vice president of the
Northwestern National Bank of Min
neapolis, died of a heart attack. He
was 51.
Mr. Fait suffered the attack while
in his office at the bank. He was
taken to St. Barnabas hospital, where
he died.
Mr. Fait was vice president in
charge of Northwestern’s trust depart
ment. He came to the bank in 1934
as assistant secretary.
Paul C. Johnson is a new vice presi
dent of Camden Park State Bank of
Minneapolis.
He was appointed to succeed Otto
W. Veth, who has retired from the
board of directors.
H. G. Haugland, attorney, and Ed
ward H. Hildebrand, building con
tractor, were named directors.

Two Officers Promoted
At the annual meeting of the North
ern State Bank of Thief River Falls,
Minnesota, George W. Werstlein was
advanced from cashier to vice presi
dent and Kenneth E. Lindbergh, for
mer assistant cashier, was promoted
to the cashiership. At the same time
Alfred Skarstad was named a member
of the board of directors, succeeding
the late E. M. Bennes.
Geo. A. Beito was re-elected presi
dent, and Mrs. Wanda J. Lee was
named assistant cashier.
The surplus account of the bank
was increased $25,000, making it $75,000, together with $50,000 capital and
$58,217 in undivided profits and re
serves.

Two Directors Elected
Leo C. LaFrance and Harold K.
Brehmer were elected to the board of
directors of the Merchants National
Bank of Winona, Minnesota, recently.
Norman W. Schellhas and Harry M.
Kowalczyk were both elected assistant
cashiers.

MORE MINNESOTA NEWS
ON PAGE 64

63
Speakers from affiliated banks were
F. B. Stiles, president, First National
Bank, Aberdeen; Harry Wilson, vice

S o uth D a k o ta

NEWS
J. M, LLOYD
President
Yankton

New President at Bryant
Dr. A. W. Guse was elected president
of the Bryant State Bank, Bryant,
South Dakota, by the board of direc
tors recently. He fills the vacancy
caused by the death of M. B. Hestad,
88, a few weeks ago. Other officers
remain the same.

New Cashier at Flandreau
Leo Pottratz has been elected cash
ier of the Farmers State Bank of
Flandreau, South Dakota, by directors
at the annual meeting. Mr. Pottratz
has been carrying on the duties of this
office for some time.

Heads Mitchell C. of C.
J. M. Patton, president of the Mit
chell National Bank, Mitchell, South
Dakota, was elected president of the
Mitchell Chamber of Commerce.

Deposits Down Slightly
South Dakotans ended 1948 with
bigger bank accounts than they had
other times during the year—but they
were leaner than they had been at the
end of 1947.
A year-long downward trend in
bank deposits reversed during the lat
ter part of 1948 and depositors ended
the year with $253,608,198 in 135 state
banks, Vern W. Abeel, state banking
superintendent, said. The total was
about $6,000,000 less than reported at
the end @f 1947 and about $19,000,000
less than the record deposits of $271,634,787 reported October 6, 1947.

Rules on Security Pledges
A bank can accept and pledge se
curity for deposits of a county as much
over its capital and surplus as the
county commissioners may authorize.
That was the conclusion reached
last month by South Dakota Attorney
General Sigurd Anderson in an opin

CARL E. BAHMEIER, JR.
Secretary
Huron

ion sent to State’s Attorney D. G.
Grieves, Winner.

Gerald McGregor
Gerald McGregor, 51, for the last
few years operator of the Spencer tele
phone exchange, died in Mitchell,
South Dakota, last month.
A former bank cashier at Platte,
South Dakota, Mr. McGregor had also
been employed by the state banking
department at Pierre and as a bank
examiner.

Change Bank Name
The Farmers State Bank of Lyons,
South Dakota, has a new name. Di
rectors voted to change the official
name to “Farmers State Bank.”

S io u x F a lls N e w s
TWO-DAY conference of North
west Bancorporation of Minne
A
apolis here was attended by bankers
from Sioux Falls, Brookings, Cham
berlain, Dell Rapids, Gregory, Huron,
Madison, Aberdeen, Britton, Groton,
Milbank, Mobridge, Redfield and
Watertown, South Dakota; Denison,
Des Moines and Sioux City, Iowa;
Hastings, Norfolk and Omaha, Ne
braska; and Luverne, Marshall, Slay
ton and Tracy, Minnesota.
Representing Northwest Bancorpo
ration were J. Cameron Thomson,
president: R. F. Mactavish, vice presi
dent and secretary; Yon E. Luscher,
vice president and treasurer; A. R.
Evans, vice president; Carl E. ATeight,
vice president; H. Raymond Horn,
chief examiner; R. L. Federman, comp
troller; W. H. Notland, assistant vice
president, and G. R. Falk, assistant
secretary.
Mr. Thomson gave the opening ad
dress, reviewing 1948 operations of
the group headed by him, and discuss
ing economic conditions generally.

president
and cashier,
Iowa-Des
Moines National Bank. Des Moines;
H. C. Wuertz, president, Rock County
Bank, Luverne; A. L. Vickery, vice
president, United States National
Bank, Omaha; Adolph J. Hallas, vice
president, Stock Yards National Bank,
Omaha; Carl L. Fredricksen, president,
Live Stock National Bank, Sioux City,
and Tony L. Westra, assistant cashier,
Northwest Security National Bank,
Sioux Falls.
Adolph Lodmell, vice president and
assistant trust officer of the Northwest
Security National Bank, received the
Honor Athenian award for the fourth
time at the 25th annual banquet of the
Sioux Falls Athenian club. The award
is bestowed by vote of the members
for contribution to the club during the
past year.
John McQuillen, vice president and
trust officer of the Northwest Security
National Bank, was toastmaster at a
banquet of the newly organized Min
nehaha Democratic club which was
addressed by United States Repre
sentative Eugene O’Sullivan of Omaha.
Frank Cinkle, vice president and
cashier of the National Bank of South
Dakota, was elected treasurer of the
Credit Bureau of Sioux Falls.
C. A. Christopherson, chairman of
the board of the Union Savings Bank,
gave a talk on George Washington be
fore the Kiwanis club. He commented
on Washington’s probable view of to
day’s war threats were he to return in
1949. Mr. Christopherson was one of
the old-timers honored by the local
Elks lodge. He is the oldest past ex
alted ruler, having become an Elk in
1898.
W. E. Perrenoud, cashier of the
First National Bank and Trust Com
pany, was elected a director of the
Minnehaha Country club.
C. A. Christopherson, chairman of
tHe board of the Union Savings Bank,
was re-elected treasurer of the Sioux
Falls Civic Music Association.
J. A7. Lowe, vice president and cash
ier of the Northwest Security National
Bank, was named a director of the

THE NATIONAL BANK OF SOUTH DAKOTA
Huron
M em ber Federal Deposit Insurance Corporation

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

S io u x Falls

Vermillion

Affiliated with F IR S T B A N K S T O C K C O R P O R A T IO N
N orthw estern

Ban ker, M a r c h ,

1949

South Dakota News

'P'uyfct

PICTURE THE

LIENTS
FOR YOUR CLIENTS
• • •

('fattoci

Washington High School Band Par
ents’ Association.
Tom S. Harkison, president of the
National Bank of South Dakota, and
potentate of El Riad temple here, was
elected first vice president of the
Midwest Shrine Association at its 18th
annual meeting in Fargo, North Da
kota. The association is composed of
the Shrine temples in Manitoba, Sas
katchewan, North Dakota, South Da
kota and Minnesota and the Shrine
temples in Sioux City, Iowa, and Mad
ison, Wisconsin.

January bank clearings here were
down from the all-time Sioux Falls
records established in the first month
of 1948. They dropped from $30,171.062 in January, 1948, to $25,488,294 in
January, 1949. Largely responsible
for this was the decline in livestock
valuation of nearly $4,000,000.

country’s immense undeveloped re
sources, their consistent climb indi
cates that Canada can be your clients’
most profitable export market.
You’ll want to know more about
this land of profit—and one of the
best places to find the answers is from
the Bank of Montreal. For the Bank of
Montreal has grown up with Canada
—the Canadian banking system be
gan with the incorporation of the
Bank of Montreal in 1817.
So we invite you to talk Canada
with us. Contact our offices in New
York, Chicago or San Francisco, or
our Foreign Department in Montreal.
*

Our 100-page booklet, CAN A DA TODAY, will
serve as your introduction to
the country. It was prepared
to supply you with informa
tion about the provinces, the
people and the industries o f
Canada. For your free copy,
write for Booklet C-S3 to
any o f our U. S. offices, or
to our Foreign Depart
ment in Montreal.

B a n k , of
M ontreal
Qanada’s First F a n k

InCanadasince1 8 1 7 ... InU.S.since1859
u. s.
NEW Y O R K ......................... 64 Wall St.
CHICAGO................ 27 S. La Salle St.
SAN FRANCISCO - 333 California St.
HEAD OFFICE
MONTREAL

LONDON
47 Threadneedle S t., E. C. 2
9 Waterloo Place, S. W. 1

W. C. Duffy, president of the Union

Savings Bank, was appointed to the
finances and records committee of the
local Izaak Walton league chapter.
W. E. Perrenoud, cashier of the First
National Bank and Trust Company,
will serve on the chapter’s game and
fish committee.
»

N o r t h w e s t e r n Ba nke r, M a r c h , 1949

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

President of Hawley Bank
When the State Bank of Hawley,
Minnesota, held its annual stockhold
ers’ meeting recently, George Wastvedt was elected president; Vance
N. Thysell. vice president: A. B. Leverson, cashier, and H. J. Hutton, as
sistant cashier.

Founder Named Director
Elmer W. Klapmeier was elected a
director of the Ogilvie State Bank.
Ogilvie. Minnesota, at the annual meet
ing. He was one of the original
incorporators of the bank. Frank P.
Powers was re-elected president.

Elect Officers
Two new men have been added to
the staff of the Crookston National
Bank. Crookston, Minnesota, President
Donald T. Lawler announced recently.
They are Carl V. Lind, formerly of
Floodwood. Minnesota, assistant cash
ier. and Kenneth Laliberte, Crookston,
bookkeeper.

New Director at Mankato

At the election of officers and direc
tors of the First National Bank, Man
kato, Minnesota. Hugh H. Miller, man
ager of the Standard Oil Company
Named New Director
G.
P. Madden wns elected director office in Mankato, and B. W. Kough,
of the Farmers National Bank of vice president of the bank, were
named to the board of directors.
Waseca, Minnesota, at their annual
meeting. He replaces Ray Moonan,
now a St. Paul attorney.
Increase Surplus

MORE MINNESOTA NEWS

At the annual meeting of the stock
holders of The First National Bank of
Aitkin, Minnesota, Dave Megarry, of
the firm of Megarry Bros., was elected
to fill the vacancy on the board caused
by the death of his brother, William
Megarry, who had served as a director
for many years.

At the annual meeting of stockhold
ers and directors of the State Bank of
Park Rapids, Minnesota, the surplus
fund of the bank was increased by
the addition of $10,000 to its $30,000
reserve fund. Surplus now is $40,000.
One new member of the board of
directors was elected from among the
stockholders. He is L. C. Enfield of
Osage.

Detroit Lakes Changes

Elected Vice President

Fills Brother's Vacancy

B.
C. Barrett was named a vice
president and Parnell E. Sanford cash
ier of the Detroit State Bank of De
troit Lakes, Minnesota, at the annual
meeting. George Maruska was named
assistant cashier and Geo. .T. Haas wTas
renamed president. C. C. Williams is
also a vice president of the bank. Mr.
Barrett formerly was cashier and Mr.
Sanford was assistant cashier.

Add New Director
R ES O U R C ES O VER $ 1 ,9 0 0 ,0 0 0 ,0 0 0

National Bank, Eveleth, Minnesota, at
the recent annual meeting. He is
George Bodovinitz. All other officers
and directors were re-elected.

One new director was named to the
board by stockholders of the Miners

Millett V. O’Connell, Hastings, Min
nesota. attorney, was elected vice pres
ident of the Hastings National Bank,
replacing the late I,. P. Kingston, at
the annual meeting of the bank’s
board of directors. Mr. O’Connell has
been a member of the board of di
rectors.

MORE MINNESOTA NEWS
ON PAGE 65

Increase Size of Board

\ o r t h D a k o ta

XE WS
ARNE A. GREGOR

Changes at Watford City
Several changes in the officer staff
of the First International Bank of
Watford City, North Dakota, were an
nounced recently following the an
nual meeting. O. N. Stenehjem was ad
vanced from cashier to president; Lee
M. Stenehjem was promoted from as
sistant cashier to vice president, and
O. V. Stenehjem was advanced from as
sistant cashier to cashier.
G. A.
Stenehjem and Ivar Drovdal were re
elected vice presidents.
The F irst International Bank gained
over $1,000,000 in deposits during 1948,
moving from $2,991,329 to $4,082,992.
O. N. Stenehjem left W atford City
the latter part of January for a vaca
tion in California and expected to be
gone about six weeks.

C. C. WATTAM
Secretary
Fargo

ton, North Dakota. She has been an
employe of the bank since last June.
John E. Argue was named president;
C. Edgar Kippen, vice president and
Franklin Page, cashier.

Retires at Grand Forks
Directors of the F irst National Bank
of Grand Forks, North Dakota, have
elected S. K. Roisum to the directorate
and also have elected him vice presi
dent and cashier of the bank. He
takes the place in the officer list of
M. W. Murray, a vice president for
many j^ears, but who expressed his
desire to be relieved of his duties. Mr.
Murray continues as a director.
Fred R. Orth, re-elected as presi
dent, announced after the meeting
that A rthur Moen had been elected an
assistant cashier.

Promote Minot Bankers
At the annual meeting of the direc
tors and stockholders of the F irst Na
tional Bank of Minot, North Dakota,
Geary H. \Y7agner was promoted to
assistant cashier from auditor and
Clifford E. Nansen was promoted from
discount teller to auditor.

Name New Director
At the annual meeting of stock
holders of the Farm ers State Bank of
Lisbon, North Dakota, Wesley Liebbrand was named to succeed Knute
Ringdahl as director.
Mr. Ringdahl, who has been a direc
tor of that institution for a number of
years, has resigned because he intends
to make his residence elsewhere.
Mr. Liebbrand is a substantial farm
er and stockman of the county and a
resident of Alicetown township.

Elect La Moure Officers
Officers elected by directors of the
F irst State Bank of LaMoure, North
Dakota, at the recent annual meeting
are as follows: G. A. Klefstad, presi
dent; Roy A. Holand and A. H. Goehl,
vice presidents; C. H. Alin, cashier,
and Miss Jeanette Cole, assistant
cashier.

Elected Assistant Cashier
Ella Mae Cull has been elected as
sistant cashier of the Bank of Hamil
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Increase Capital
The Bank of Rhame, North Dakota,
has been authorized by the state bank
ing board to increase its common
stock from $25,000 to $40,000.

Bank Redecorates
The Dakta National Bank of Fargo,
North Dakota, is in the midst of a re
modeling and redecorating job. The
lobby has been redecorated and fix
tures refinished, and the work room is
being remodeled with installation of
acoustical tile, a circulating air system
and new lighting fixtures. The safety
deposit section also is being redeco
rated.

MORE MINNESOTA NEWS
Promoted to Cashier
At the annual meeting of the F irst
National Bank of Northfield, Minne
sota, E. H. Watson, veteran vice presi
dent and cashier, who has been active
on the staff for 57 years of the bank’s
76 years in business, asked to be re
lieved of some of his duties and R. F.
Shumway was promoted to cashier. At
the stockholders’ meeting the number
of directors was increased from five
to seven, with Martin Perman and
Mr. Shumway as the new board mem
bers.

At the annual meeting of the stock
holders of the F irst National Bank,
Fergus Falls, Minnesota, it was de
cided to enlarge the board of directors
from five to seven members.
Dr. Norman H. Baker and Edward
V. O’Meara, two well-known Fergus
Falls men, were named to the board.

Elect New Directors
Two new directors were named to
the F irst National Bank of Albert Lea.
Minnesota, at the meeting of share
holders. All present directers were
re-elected.
John L. Crowley, manager of the
Albert Lea Wilson & Company plant,
and Richard A. Trow, vice president
of Queen Stove Works, Inc., were
added to the board.

Capital Changes
Following are a number of capital
stock changes in Minnesota banks ef
fected through action taken at an
nual meetings of stockholders:
Security State Bank of Ellendale.
capital stock increased by $25,000 by
payment of stock dividend.
Kanabec State Bank of Mora, sur
plus increased from $60,000 to $100,000
by transfer of $40,000 from undivided
profits.
Farm ers State Bank of Mountain
Lake, a 100 per cent stock dividend
increased capital from $25,000 to $50.000.
Northfield National Bank and Trust
Company, surplus increased by $20,000.
Northwestern State Bank of Ortonville, capital increased from $35,000 to
$50,000.
F irst National Bank of Roseau, $10,000 added to surplus, making it $35.000.
Farm ers State Bank of Russell, capi
tal stock increased from $15,000 to
$30,000.
Union State Bank of Sauk Rapids,
surplus increased $5,000, making capi
tal total now $55,000.
F irst National Bank of Sleepy Eye,
surplus increased from $75,000 to $100,000.
State Bank of Tower, surplus in
creased to $30,000 by transfer of $10.000 from undivided profits.

Declares First Dividend
A little more than three years after
its opening in August, 1945, and with
deposits nearing the $3,000,000 mark,
the Second Northwestern National
Bank, one of the 10 Northwestern Na
tional Banks of Minneapolis, has de
clared its first dividend.
N orthw estern

Ban ke r,

M arch,

1949

For 93 Years
SOUN D

Complete

BANKING SERVICE

Correspondent Facilities
rte

UNITED STATES
fifaiional BANK o f O m aha

o r t h w e s t e r n Banke r, M a r c h , 1949
Digitized for N
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MEMBER FEDERAI DEPOSIT INSURANCE CORPORATION

67
A comparison of bank debits for
1948 with those for 1947 shows F re
mont in twenty-third place among
the 333 cities. The increase was 19.5
per cent. Total debits of the F re
mont banks were $195,190,000 for 1948.

N e b ra s k a

NEW S

Appoint Two Directors
J. R. KENNER
President
Hebron

Name Convention Dates
President J. R. Kenner and the execu
tive council of the Nebraska Bankers
Association have announced the 52nd
annual convention will he held in Lin
coln on Tuesday and Wednesday, Oc
tober 11, 12, 1949. The banks of Lin
coln will be the hosts and convention
headquarters will be at the Cornhusker hotel.
To facilitate housing, it has been
agreed that all requests for hotel res
ervations should clear through the
hotel and registration committee. Lin
coln hotels will not accept reserva
tions direct nor from any other
source than the hotel committee. Res
ervation blanks will be sent to all
member banks at a later date. It has
been suggested by this committee that
no requests for hotel accommodations
be made until after the reservation
forms have been mailed.
General chairman of the convention
will be T. B. Strain, president of the
Continental National Bank of Lin
coln, assisted by George W. Holmes,
president of the F irst National Bank,
and Byron Dunn, president of the Na
tional Bank of Commerce.
Carl D. Ganz, vice president of the
National Bank of Commerce, is chair
man of the hotel and registration com
mittee.

Changes at McCook
Several changes in the official staff
and the board of directors bring back
two prominent names to the F irst
National Bank of McCook, Nebraska.
These moves were brought about by
filling the vacancy created by the
death several months ago of H. P.
Waite, a veteran director and vice
president of the bank. Rolland Larmon, president, a n n o u n c e d the
changes following the annual board
meeting recently.
M. L. Springer, president of the
Commerce Trust Company and a di
rector of the National Bank of Com
merce, both of Lincoln, was elected to
the board of directors. He is the son
of W. G. Springer, who from 1921 to
1932 was cashier of the F irst National
of McCook.
Frank F . Barnett was elected to fill
the vacancy as vice president. He

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

Two new directors, Russell Harris
and Glenn Anderson, have been ap
pointed by the board of the First Na
tional Bank of Holdrege, Nebraska.
These men purchased the stock of
B. V. Hanson, vice president, who
has been a principal stockholder of
will remain in the employ of the bank
the bank and is the son of A. Barnett,
he has served for 42 years.
who for many years prior to his death
Continual growth has marked the
in 1938 was president of the First Na
existence of the F irst National Bank.
tional Bank and one of McCook’s most
When the bank passed the 65-year
prominent citizens.
H.
M. Krogh, with the bank since mark recently, President L. J. Titus
and other officers checked the bank
1932 and cashier since 1938, has been
books and found the following rec
promoted to vice president, and Max
ords: $90,000 on deposit in 1884 at
L. Billesbach, assistant cashier since
opening time; $340,000 in 1900; $867,joining the bank in 1936, has been
000 in 1915; $1,741,000 in 1940, and $7,advanced to cashier.
300,000 at the present time.
Officers of the F irst National Bank
Election at Malmo
At the annual meeting of the Se and business men of Holdrege are
proud of this record, since Holdrege
curity Home Bank, Malmo, Nebraska,
is a city of 4,500 people and the bank
the following directors were named:
deposits reflects a sound community
Emil Barry, Richard Barry, Charles
financial position.
Kremlacek, A rthur Larson, H. L.
Reimers, E. S. Schiefelbein and Amy
Celebrates 90th Birthday
H. Houfek. Officers are as follows:
C.
M. Brown, president of the F irst
H. L. Reimers, president; Richard
Barry, vice president; Amy H. Hou National Bank at Cambridge, Ne
fek, cashier, and E. S. Schiefelbein,
braska, celebrated his 90th birthday
counsel.
last month. He was born February
2, 1959.
Mr. Brown has been in the banking
Fremont Second in Nation
business
65 years, three years of that
Frem ont, Nebraska, ranked second
time having been spent in Beatrice,
among 333 cities in the increase in
Nebraska, the remaining 62 at the
bank debits of 1948 compared to those
Cambridge bank.
of 1940.
CARL G. SWANSON
Secretary
Omaha

The 333 cities are those in the Unit
ed States which make regular month
ly reports to the Federal Reserve
Bank.
Frem ont with a 477 per cent in
crease ranked second only to Eugene,
Oregon, which had a gain of 501 per
cent. In third place was Tucson, Ari
zona, with 401 per cent.

X e b r a s k a

tw r o u p

Joins Plymouth Bank
Charles H. Strnad of Belleville, Kan
sas, has been elected cashier of the
Farm ers State Bank, Plymouth, Ne
braska.
Mr. Strnad has had over fifteen
years’ banking experience, and was
county clerk of Republic county, Kan-

e e t i n g s

S e b e d u le

During a recent meeting of Group Association Officers with the
Administrative Committee of the Nebraska Bankers Association,
it was decided that the 1949 Group Meetings he held during a
period, April 18th to April 22nd, as follows:
Group
Date Meeting Place
One —April 18_Lincoln
Four —April 19_Hastings
Six
—April 20_Alliance
Five -—April 21_Broken Bow
Two —April 22_Columbus
Three—April 22
Norfolk
N orthw estern

Ba n ke r, M a r c h ,

1949

Nebraska News

sas, prior to his election as cashier
of the Farm ers State Bank.

State Bank stockholders at their an
nual meeting that he desired to be
relieved of the presidency of the bank,
a position which he has held since
Named Assistant Cashier
C.
W. Troupe was elected as a new 1922.
Mr. Schneider will be replaced by
assistant cashier at the annual meet
his son, Carl J. Schneider, in the top
ing of stockholders of the Farm ers and
position. Eugene Burdic was elected
Merchants National Bank, Oakland,
vice president.
Nebraska.
All other officers, including C. C.
Neumann, president, were re-elected.
Resigns at Cozad Bank

Henry Schneider Retires
Henry A. Schneider, Plattsmouth,
Nebraska, informed the Plattsmouth

Roscoe R. Garner, cashier of the
Cozad State Bank, Cozad, Nebraska,
has resigned to enter the Emil Barta
insurance and real estate firm at Co-

zad, in which he has purchased an
interest. Mr. Garner had served as
cashier in the Bank of Brady, Nebras
ka, for a number of years prior to his
association with the Cozad State Bank.

Appoint Livestock Adviser
Henry C. Karpf, president of the
Live Stock National Bank of Omaha,
announces the appointment of John M.
(Jack ) Shonsey of Hardin, Montana,

THE I ND I A N
TRADE
In 1840 the Town of Kan
sas was just one year old . . .
and an important part of tlie
new town’ s business was with
the Indian tribes to the West.
Delawares, Shawnees, Kaws, Kiekapoos and Osages thronged the streets
of the border settlement to spend their government annuity money and
trade ponies, pells and silver ornaments for blankets, saddles, powder,
tobacco and jewelry. It was the forerunner of the vast trade from the
West and South that was to make Kansas City Queen of the Prairies . . .
a trade that was to make the Prairies a mighty agricultural empire.
In sharing and contributing to this growth through its many corre
spondents, the Inter-State has served the West faithfully and well for
more than a half century. In a correspondent connection here you will
find the experience, integrity and friendly helpfulness of the Inter-State
a very real asset . . . an asset readily available to you at any time.

the Inter -S tate
L IV E S T O C K E X C H A N G E B LO G .

National Bank
16TH . AND

G EN ESEE

STS.

Member Federal Deposit Insurance Corp.

J O H N M. S H O N S E Y
W ith L ivestock Departm ent

to the livestock department of the
bank. Mr. Shonsey will assist in serv
icing livestock loans, and be available
in an advisory capacity to Live Stock
National’s correspondent banks and
their customers in m atters relating to
the production of livestock. His 15
years’ experience in this field, includ
ing a year buying cattle for Swift and
Company, will permit the Live Stock
National to expand the “Advisory
Service Program ” which it offers to
banks and livestock men throughout
the midwest area.

P irst National
J.Bank of
N o r t h w e s t e r n Ban ke r, M a r c h , 1949

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

Omaha

Oldest N ational B a n k F ro m Omaha West
Member Federal Deposit Insurance Corporation

m o s e r , president of
the United States National Bank
of Omaha, has been elected a director
of the Burlington Railroad Company.
He succeeds the late H. M. Bushnell,
his predecessor as head of the Omaha
bank.

llsw orth

Ralph Rudd, president of the rail
road, will reach 70 on August 20th, and
under the company’s rules governing
tenure of officers will be eligible for
retirement. Mr. Budd said he will
not ask that any exception to the rule
be made in his case.
The net estate of Alvin E. Johnson,
former president of the Live Stock
National Bank of Omaha, who died
December 31, 1946, was listed at $126,698. The gross estate totaled $277,659.
Beneficiaries were Mr. Johnson’s
widow, Nina M., who received $45,899,
and three children, Alvin W., Howard
M., and Myrtle M. Olson, each of
whom received $26,932.

counsel after serving as an attorney
for the RFC and HOLC.
President Trum an’s nomination of
Mr. Arey was part of a move in which
Vice Chairman Herbert Gaston would
be promoted to chairman of the E-I
organization.
L. E. Laird, chairman of the board,
announced recently that the office of
general agent of the F arm Credit
Administration at Omaha is to be dis
continued.
The post, created in 1933, has been
held for the last six years by Nelson
G. Krasehel of Harlan, Iowa, and
Omaha, former governor of Iowa. Mr.
Laird said that the duties will be con
solidated with duties of the presidency
of the Bank for Co-operatives, now
held by T. F. Tobin.

“This move follows a pattern set
by the other 11 Farm Credit districts,”
said Mr. Laird.
Mr. Krasehel said that shrinkage
of the FCA at Omaha from an organi
zation employing 1,500 persons to one
with fewer than three hundred has
reduced the need for a full-time gen
eral agent.
“I shall leave this position with the
satisfaction of having served during
the crucial war-time years,” he stated.
Mr. Tobin has been with the FCA
since 1931. He was named vice presi
dent and treasurer of the Federal In
termediate Credit Bank of Omaha in
1934.
In 1944, he became president of the
Bank for Co-operatives. He is a na
tive of Mitchell, South Dakota.
Economics in general is a fine topic
for conversation, but the important
thing for the world is a balanced econ
omy. That is what J. Francis Mc
Dermott, vice president of the First
National Bank of Omaha, emphasized
in a recent talk before the Omaha
Real Estate Board at the Regis Hotel.
“The purchasing power of the peo
ple must equal the value of goods and
services produced, or somebody or
something is being sold short,” he
declared.
Officers of the Nebraska Children’s

The South Dakota L e g i s l a t u r e
passed and sent to its Senate a bill
authorizing deposit of state funds in
banks at Omaha and Sioux City. The
present law limited out-of-state depos
iting of state funds to banks in New
York, Chicago and the Twin Cities.
Fourteen employes and officers of
the Omaha National Bank became
members of the bank’s 20-Year Club
at a dinner last month at the Blackstone Hotel.
A former Omahan, Hawthorne Arey,
43, who left his law practice in 1934
to go to W ashington on what he
thought was a temporary assignment,
was nominated recently by President
Truman to be a director of the E x
port-Import Bank. He has been vice
president of the bank.
Mr. Arey, born in Omaha, is a grad
uate of Omaha Central High School
and received his law degree from
Creighton University after attending
Grinnell College and the University of
Nebraska. In 1938, he joined the E x
port-Import Bank as secretary and

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

In Size
In Service
In St. Joseph

WMIMMOMi.:

FIRST NATIONAL BANK
In St. Joseph, Mo.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N orthw estern

Banker,

M arch,

1949

Nebraska News

Home Society, elected at the annual
meeting, include Kenneth G. Harvey,
president, and Fred W. Thomas, treas
urer.
Mr. Harvey is president of the
Douglas County Bank of Omaha and
Mr. Thomas is president of the F irst
National Bank of Omaha.

Back to Nebraska, with heavy snow
and zero temperature, was quite a
shock to Wade R. Martin, vice presi
dent of the Live Stock National, after
vacationing in sunny Florida. Mr.
and Mrs. Martin spent three weeks
at Miami Beach and also enjoyed a
trip by air to Havana.
A. S. Chaves, comptroller of the
Live Stock National Bank, was on the
program at the Missouri Bankers Con
ference, at Columbia, Missouri, last
month, outlining a “Bank Audit P ro
g ra m /’ Mr. Chaves was also on the
program at the Regional Oklahoma
State Bank Auditors meeting, March
12th, in Oklahoma City, when he again
discussed “Bank Audits.”

Members of the Live Stock National
Bank of Omaha official staff have been
on the move in recent weeks.
Mr. and Mrs. Henry C. Karpf left
Omaha February 20th for a Carib
bean cruise. While in New Orleans
they took in the Mardi Gras festivi
ties. Mr. Karpf is president of the
Live Stock National Bank.

C. A. Jeffrey, vice president of the
Packers National Bank of Omaha and
also head of an Omaha insurance
agency, has been named as the sev
enth member of the board of trustees
for the Municipal Em ployes’ Pension
Fund of Omaha. He was also selected
as chairman.
Mrs. Casper Y. Offutt, wife of the
vice president of the United States
National Bank, was re-elected presi
dent of the Omaha Visiting Nurses’
Association at the annual meeting in
the Blackstone Hotel. Mrs. AV. B.
Millard, Jr., wife of the new president
of the Omaha National Bank, was
chosen a vice president.
New directors include Mrs. T. L.
Davis, wife of the chairman of the
board of the F irst National Bank of
Omaha; Mrs. Denman Kountze, Mrs.
Raymond F. Low and Mrs. H. W.
Yates.
Ray R. Ridge, senior vice president,
Omaha National Bank, has been elect
ed secretary-treasurer of the Florence
Home for the Aged at Omaha. Harry
F. Dickinson was elected pi’esident.
Circulation of more counterfeit bills
in Nebraska and Iowa during recent
months has followed the national
trend, the Secret Service office at
Omaha stated.

Let City National’s "years ahead” facilities and alert
personnel give you the unusual as well as the usual
correspondent services.
D ay and N ig h t Transit speeds service for you, day in
and day out.
K een Analysis o f Y o u r B o n d Portfolio is an exceptionally
valuable service.
A lert, F o rw a rd -T h in k in g P ersonnel are always at your
service, to give personal attention to your problems in
banking methods, equipment, or in the hiring of new
officers or employees.
Private C o n fe ren ce R oom s a n d F re e P arking make your
trips to Kansas City more pleasant.
Cooperation in handling excess loans to your customers
and furnishing you quick, accurate credit information
makes your loaning activities easier.

CITY NATIONAL
MEMBER FEDERAL DEPOSIT
INSURANCE CORPORATION

1OTH A N D

GRAND

•

KANSAS

C I T Y 10, M O .

Mrs. Hiram Houghton, Jr., of Red
Oak, Iowa, wife of a Red Oak bank
executive and first vice president of
the National Federation of W omen’s
Clubs, addressed the Omaha W om an’s
Club recently as part of a tour which
took her to Florida and Cuba.
“We must either grow up or we’ll
blow up,” she said. “W e have dis
covered a way to kill everyone, and
yet we do not know how to live to
gether,” she declared.
“To grow up, we must keep in
formed, keep emotionally stable and
ethically m ature,” she advised.
Seven employes of the Federal
Land Bank of Omaha have been given
wrist watches for more than 25 years
of service with the bank. They are:
E. C. McDermott, Miss Ora M. Cloud,
J. Bernard Huse, Miss Frances AV.
Dorsey, Jacob Gehrig, Miss Florence
M. Nuschy and Miss Lillian Dailey.

BANKS

Bought and So ld

Confidentially and with becoming dignity

BANK E M P L O Y E E S P L A C E D
44 Y e a r s Sa tis fa c to r y Se rvice

LL°N a L
N o r t h w e s t e r n Ba n ke r, M a r c h ,

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

1949

•

* ***

C H A R L E S E. W A L T E R S C O .
OM AHA,

NEBRASKA

Nebraska News
Herber Meile, senior vice president
of the Douglas County Bank of Ben
son, presented plaques to the out
standing man in youth work in subur
ban Benson at a dinner of the Benson
Lions Club. The award went to Paul
Kristy, Lions Club member.
R. H. Mallory, vice president, Unit
ed States National Bank of Omaha,
and Kenneth G. Harvey, president,
Douglas County Bank of Benson, were
among Omahans who recently inspect
ed the B-36, world’s largest bomber,
as 19 Omaha men were on a two-day
air trip to air bases at F o rt W orth,
Texas, and Salina, Kansas. The men
are members of the Chamber of Com
merce Armed Services Committee.

L . Dale Mathews, vice president and
cashier, North Side Bank, Omaha, was
elected treasurer of the North Omaha
Commercial Club at the annual meet
ing. Marvin G. Schmid was elected
president. Film s of the World Series
were shown by Robert Hall, former
Omaha banker, who now has his own
insurance firm.

Robert B. Vance, 61, manager of the
Omaha National Bank Building, was
found dead of burns recently at his
home in Omaha. He had been ill and,
when a phone call at his residence
brought no response, bank officials in

vestigated and found his body. Cor
oner George Sullivan said that the fire
apparently was caused by a cigarette.
Born at Crete, Nebraska, he had been
building manager for 15 years.

Hayes Center Election
Following the annual meeting of
directors of the F irst National Bank
of Hayes Center, Nebraska, it was an
nounced that H. M. Counce has been
elected president. Mrs. Goldie Miller
was elected vice president; John K.
Miller was re-elected cashier, and
Mrs. Shirley Leffler was renamed as
sistant cashier.

At the annual meeting of bhe Cov
ered Wagon Council of Boy Scouts at
the Legion Club in Omaha, J. Clifford
Rahel, first vice president of WachobBender Corporation, Omaha invest
ment firm, was re-elected president of
the board. Stephen J. AA'irtz, assistant
vice president of the Omaha National
Bank, was re-elected treasurer. Rob
ert F. Clarke, president of the banking
house of A. W. Clarke, Papillion, is
the new vice president of the board.
Charles McCumsey, former presi
dent of the Federal Land Bank of
Omaha, has been elected executive
vice president and general manager of
the Carney Company, Inc., Mankato,
Minnesota. The firm manufactures
building products.
A downtown Omaha store found it
self under scrutiny of the Secret
Service when it used giant-sized dol
lar bills for advertising purposes.

O FF E RI N G

Agents confiscated the bills, five feet
long and 18 inches wide, and turned
them over to the United States district
attorney. There was no prosecution.

COMPLETE
CORRESPONDENT

Ford E. Hovey, former Omaha
banker, was re-elected president of the
Occidental Building and Loan Asso
ciation of Omaha by stockholders at
the annual meeting. He also was re
elected a director for a four-year term.
Arthur L. Coad, president of the
Packers National Bank of Omaha, has
been elected president of the Nebras
ka Blue Cross Hospital Plan. He suc
ceeds Francis Bath, who held that
office five years.
Mr. Coad also was elected treasurer
of the Blue Shield (Nebraska Medical
Service) at the annual meeting of the
board in Omaha. E. K. McDermott,
attorney, is secretary.

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

S ERV IC E

THE FIRST NATIONAL BANK OF LINCOLN
tíÚL

LINCOLN, NEBRASKA
1949

1871
M e m b e r F e d e r a l D ep o sit In s u ra n ce Corporation

N orthw estern

Ban ke r,

M arch,

1949

Nebraska News

U. S. National of Omaha
Elects Two Directors
John F . Merriam and Charles E.
Peterson have been elected to the
board of directors of the United States
National Bank of Omaha. Mr. Mer
riam is executive vice president of the
Northern Natural Gas Company and

ployed by Northern Natural Gas Com
pany in 1930, was made assistant sec
retary in 1935, became vice president
and treasurer in 1945, a director in
1946 and was appointed to his present
position last year.
Mr. Peterson is a native of Omaha
where he attended Central High

portion, a member of the board of the
new Children’s Memorial Hospital
and is active in other civic affairs.
Mr. Merriam likewise serves as di
rector of several business corporations
and is very active in community work.

State Banks* Assets Up
The state banking department of
Nebraska last month reported 283
state banks in Nebraska held assets of
8411,662,970 on December 31st.
Gains in assets since June 30, 1948,
totaled $21,980,805 according to the
department.
Banking Director J. F. McLain said
principal asset items reflecting this
change were: cash and due from banks
increased $881,946; bonds declined
$8,530,535, and loans and discounts in
creased from $76,145,948 to $105,725,182.

Abbott Buys Gordon Bank

J O H N F. M E R R IA M
D irector, U. S. N ational, Omaha

C H A R L E S E. P E T E R S O N
D irector, U. S. National. Omaha

Mr. Peterson is president of Byron
Reed Company, Inc.
Mr. Merriam, who was appointed
to fill the vacancy created by the
resignation of Roy Page, former exec
utive manager of the Omaha Public
Power District, is a graduate of the
University of Chicago and the Chicago
Kent College of Law. He was em

School. He attended the University
of Nebraska, served in World W ar I
as an ensign in the Navy and for the
past 29 years has been in real estate
business. He was elected vice presi
dent of Byron Reed Company in 1934
and last year became the company’s
fourth president. He is president and
director of the Farnam Realty Cor-

C.
J. Abbott, president, Bank of
Hyannis, Nebraska, purchased con
trolling interest in the Gordon State
Bank of Gordon, from F ay C. Hill last
month, and was elected president of
the institution at a subsequent board
meeting. Mr. Abbott has extensive
banking and r a n c h i n g
interests
throughout Nebraska and South Da
kota. Mr. Hill has been president of
the bank and will continue for a time
as vice president, assisting the new
management.
LeRoy Abbott, executive vice presi
dent of the Bank of Hyannis, was
named to the same position in the
Gordon bank. Frank Boyles contin
ues as cashier, and Miss Blanche P ar
ker as assistant cashier.

Retires from York Bank

9*t JUne&Ut — *7<4e Gosdinetdal—

George M. Spurlock has formally
retired from his position as a director
of the F irst National Bank of York,
Nebraska, as well as from his active
work as a member of the bar in that
city.

F. E. Neeley
C O L L E C T IO N SER V ICE
IN LIN C O L N ,
USE

F.
E. Neeley, 58, vice president and
cashier of the Gering National Bank,
died last month at his home in Gering,
Nebraska.

Cedar BlufFs Cashier Retires

C o n t in e n t a l R

a t io n a l

LINCOLN
Member Federal Deposit Insurance Corporation

E. H. Anderson, cashier of the Com
mercial State Bank at Cedar Bluffs,
Nebraska, retired from that position
March 1st after more than 42 years in
the banking business. His successor
has not as yet been announced.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

N orthw estern

Banke r. M a r c h ,

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

1949

Nebraska News

Joint Arrangement
Burroughs Adding Machine Com
pany of Detroit, Michigan, and Bell
& Howell Company of Chicago, Illinois,
have arranged to cooperate in a long
term joint manufacturing and distrib
uting project.
Commencing immediately, Bell &
Howell Company will sell to B u r

in this connection it had need for a
high quality machine to rapidly photo
graph records in easily storable form.
The new Bell & Howell microfilm
equipment
fulfills
these
require
ments.”
This agreement in no way affects
Bell & Howell’s manufacture and dis

tribution of its wide line of motion
picture and still cam era equipment.
The microfilm equipment, which
Burroughs will distribute, will carry
the Bell & Howell name and will con
sist of a recorder and automatic feed
er, a reader, and an automatic proces
sor for volume users.

J O H N S. C O L E M A N
A nnounces N ew Burroughs P roject

roughs all production of its new m icro
film recording apparatus and the ini
tial order placed by Burroughs with
Bell & Howell amounts to several mil
lion dollars. Burroughs will distribute
and maintain this equipment as an
added service to business throughout
the world.
According to a joint statement by
John S. Coleman, Burroughs president,
and Charles H. Percy, Bell & Howell
president, “The contract, which pro
vides for Bell & Howell to develop,
engineer and manufacture, and B u r
roughs to distribute and service, arose
from complementary needs of both
companies.
“F o r a long time Burroughs has
been supplying business with a com
plete line of figuring equipment rang
ing from intricate bookkeeping and
accounting machines to hand and elec
trically operated calculators and add
ing machines. Much of its work also
has been in helping business organiza
tions develop mechanized accounting
systems which would reduce their
costs and improve their efficiency, and

CLEAN CARBON EVERY T IM E

Labor-Saving
Clean,
time

Step up clerical efficiency . . . cut
work in half. Change to the remit
tance letter system, accepted and
honored by all banks. The remittance letter is complete. A new
carbon attached to every letter eliminates danger of blurred,
smudged copies and loss of time reinserting carbons. More rapid
handling and clean, sharp carbons will reduce errors, increase
office efficiency and make you money

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

S a v in g

889

K ^ O T T l^ U ly rv y' ^

D id you know th e r e ’s a g a p in y o u r C ash L e tte r
p r o te ctio n th a t y ou cou ld “ d riv e a tr u ck th r o u g h ? ’
A sk us h ow to b ridg’e it w ith o u t c o s tin g y ou a
cen t.
F I R S T NATIONAL B A N K BU ILD IN G

sharp carbons in V2 the

I N C O L N

Scarborough

CHIC AGO 3, I L L I N O I S

N E B R A S K A

Company

In su ra n ce C ounselors
STATE

to B an ks

2 4325
N orthw estern

Ban ker, M a r c h ,

1949

SO I S ilid ! “ l i s s e n

Mr.

K arpf

• • • U<h> those boys in Transit have to work all the time?
How do yon expect us to keep the bank clean with them
hoys always in our way?” Then the President of the
Bank hisself tells me to sit down in his big comfy chair
and explains it. He says how it’ s important that clear
ance on collection items is fast. He even says there's
times when as much as a day’ s time is saved for Live
Stock National’s correspondent hanks on account of
yon hoys working at night to give 24-liour service on
transit items. Now, 1 can’t exactly remember whut he
says a transit item is . . . but I knows they is important
and so you just go right on workin’ sonny, and don’t
let me bother you none!
For fast, accurate handling of transit items— use the
Live Stock National Bank’s special 24-hour transit
service envelopes. A free supply sent on request!

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

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

1949

I o w

president, Home Trust and Savings
Bank; Osage; M. A. Arneson, presi
dent, Clear Lake Bank and Trust
Company, Clear Lake; Charles J.
Spies, president, Iowa Trust and Sav
ings Bank, Emmetsburg; J. A. Thom-

NEWS
HARRY W. SCHALLER
President
Storm Lake

25th Anniversary
On the first of this month H. R.
Jackson, deputy superintendent of the
Iowa banking department, had been
associated with that department twen
ty-five years. At a celebration in his
office, the staff presented him with an
electric clock.
A native of Iowa, born at Sigourney,

FRANK WARNER
Secretary
Des Moines

tal now is $75,000, surplus is $125,000
and undivided profits and reserves is
$42,000.

Mason City Visitors
The F irst National Bank of Mason
City, Iowa, entertained its correspond
ent banks last month in Mason City
on Lincoln’s birthday. Visiting bank
ers were taken on a tour of the DeckerPacking Plant during the afternoon
and were entertained at a dinner at
the Hanford Hotel in the evening.
Eighty-five were present at the ban
quet. This party is an annual affair.

Announces Candidacy

H. R. JA C K S O N
25 Years W ith Departm ent

Mr. Jackson started his banking ca
reer as assistant cashier in the F arm
ers Savings Bank of Carlisle, in 1920.
Four years later he was appointed a
state bank examiner under Superin
tendent R. L. Leach. He assumed the
office of deputy superintendent in
1945.

J. F. Kennedy, president of the F irst
National Bank of New Hampton, Iowa,
has announced his candidacy for the
office of president of the Iowa Bank
ers Association.
A committee of
neighboring bankers and friends of
Mr. Kennedy has been formed to en
dorse and promote his candidacy. The
complete committee is made up of the
following bankers:
F . C. Heneman, president, First Na
tional Bank, Mason City, chairman;
J. P. Rigler, president, Security State
Bank, New Plampton; M. J. Klaus, vice
president, F irst Security Bank and
Trust Company, Charles City, chair
man Group 3; Joe Menges, cashier,
Alta Vista State Bank, Alta Vista,
chairman Group 4; W. E. Sheldon,

J. F. K E N N E D Y
Candidate for presiden cy of Iow a
Bankers A ssocia tion

son, vice president, Cresco Union Sav
ings Bank, Cresco; W. P. Ronan, vice
president. Decorah State Bank, De
corah; C. H. Megorden, president,
Waukon State Bank, Waukon, and D.
D. Bramwell, president, First National
Bank, Hampton.
Mr. Kennedy has been associated
with the F irst National Bank in New
Hampton for approximately 20 years.
During that period he has been active
in affairs of the American Bankers
Association, and has devoted much
time and effort to the work of the Iowa
Bankers Association.
His qualifica
tions for the presidency of the state
association are well recognized.

Returns from Florida
Mr. and Mrs. E. F . Sorg spent a few
weeks’ vacation in Florida and expect
ed to return to Independence, Iowa,
about the middle of March, where Mr.
Sorg is president of the Farm ers
State Savings Bank.

Officers Promoted
Directors of the Page County State
Bank, Clarinda, Iowa, advanced two
officers and elected a new officer to
the staff. Herman G. Meyer was elect
ed vice president; D. O. Thompson
was elected cashier to take Mr.
Meyer’s former position, and Charles
C. Reynolds was named an assistant
cashier to replace Mr. Thompson.
Stockholders at their meeting voted
to increase the capital by 50 per cent
by declaring a stock dividend. Capi
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I o w a

Group
5
6
10
8
2
3
4
7

(¿ r o u p

w i i n i js

S e h v d u ie

Date
Tuesday,
Wednesday,
Thursday,
Friday,

May
May
May
May

10
11
12
13

Meeting Place
Council Bluffs
Grinnel.1
Ottumwa
Tipton

Tuesday,
Wednesday,
Thursday,
Friday

May
May
May
May

24
25
26
27

Templar Park (Spirit Lake i
Mason City
New Hampton
Waterloo

The hotel or country club in each town where meetings will be
nounced. When it becomes available it will be published in
forthcoming issues of the NORTHWESTERN BANKER for your
convenience.
N orthw estern

Ba n ke r, M a r c h ,

1949

Groups One and Eleven
M e e t in Sioux l i l y and B urlinyton
Combined Registration of Nearly 1,000
Evidence of Unusual Interest in These Two Holiday Gatherings
G

ROUPS One and Eleven of the
Iowa Bankers Association met
as usual in February this year,
Group One leading off in Sioux City on
February 12, and Group Eleven in B u r
lington ten days later. Attendance in
Sioux City was a little above 1948,
with 630 registered. Burlington at
tendance fell off just a little, chalking
up about 285. Regardless of attend
ance, enthusiasm and interest was at
a high pitch at both meetings as Iowa
bankers and their friends from neigh
boring states, and correspondent bank
officers and representatives from all
the large cities in the middle west
and east launched the first of many
meetings and conventions which will
bring many of these people together
at numerous times during 1949. A
number of the participants at both
meetings are pictured on the opposite
and following pages.
Group officers in Iowa are elected
for a two-year term —One and Eleven
being odd numbered groups, they
elected officers in this odd year of 1949
H. J. Harms, who is president of
three banks, LeMars Savings, Farm ers
State, Merrill, and F irst State, Brunsville, moved up from secretary to
chairman of Group One, with Ray

Stevens, president of the E arly Sav
ings Bank, taking over the secretarial
post.
Group Eleven also advanced its sec
retary, and Frank C. Crone, president
of the National Bank of Washington,
was elected chairman. The new secre
tary serving with him is Charles L.
Bosier, executive vice president of the
Burlington Bank and Trust Company.
A word of caution was voiced by
Iowa Association President H arry
Schaller, who addressed both meet
ings. He admonished his listeners to
be watchful, to select their loans care
fully, and to keep in as liquid condi
tion as possible.
While deposits in Iowa state banks
are down slightly, Iowa Superintend
ent Newt Black said the banks under
his jurisdiction as a rule have been
adding to their capital, reserve, and
surplus and undivided profits, which
indicated they are maintaining a
sound condition.
Mr. Black, too,
urged banks to keep themselves in a
strong position, since economic condi
tions can change rapidly. Both Groups
went on record endorsing Mr. Black
for re-appointment as Iowa banking
superintendent.

The proposal that all government
financial statements be couched in
term s of cash receipts and expendi
tures, so that they can be readily in
terpreted, was made by John K. Langum, vice president of the Federal
Reserve Bank of Chicago, who was a
guest speaker at both meetings. He
says the estimates which the govern
ment feeds to the public are entirely
misleading as to the true picture of
the Federal treasury.
If business holds level, or much at
the same level as now, Mr. Langum
feels that some of the public debt can
be retired thrugh regular channels.
However, if business turns down, then
he says refunding of the debt will be
necessary.
At the Group One meeting Carl
Bahmeier, Jr., secretary of the South
Dakota Bankers Association, gave a
stirring and forceful address urging
bankers to be active in their endeavors
to preserve their present banking sys
tem.
Indifference and complacency
never won any advantage anywhere,
says Mr. Bahmeier—bankers must be
on the offensive and fight for their
rights if they are to continue to exist
as free enterprise institutions.— The
End.

A t th e Moira F e b r u a r y tiroa p M e e t in y » ------ ►
( A ll n am es re ad in g from le ft to rig h t)

1__Ray Stevens, president E a rly Savings Bank, and secretary
o f Group O ne; and H. J. Harms, president Le Mars Savings
Bank, Farm ers State Bank, M errill, and J irst State Bank,
B runsville, and president o f Group One.
2— Dale Kelley, cashier Farm ers & M erchants Savings Bank,
B urlington, and im m ediate past president Group E leven ; Rich
ard Schaefer, H enry County Savings Bank, M t. P lea sa n t; H. E.
Elgar, director H enry County Savings B a n k ; and Vincent Cul
len, execu tive v ice president N ational B ank o f B urlington.
3 _Frank Warner, secretary o f the Iow a B ankers A ssocia
tio n ; and W. H. Bangs, First N ation al Bank, Fairfield, Iow a.
4 _R . R. Schroeder, execu tiv e v ice president Iow a County
Savings Bank, M a ren go; Charles C. Kuning, v ice president
A m erican N ation al Bank, C h ica go; L. Nevin Lee, v ice p resi
dent Bankers Trust Com pany, Des M oin es; William H. Whit
man, assistant v ice president A m erican N ational Bank, Chi
ca g o ; and Tom C. Cannon, regional m anager St. Paul Term inal
W arehouse Co., Des M oines.
5 _R. E. Popp, assistant cashier Secu rity State Bank, H a rt
le y ; Chester Sjoberg, cashier Farm ers N ational Bank, A u relia ;
John S. Haver, assistant cashier L iv e S tock N ational Bank,
Sioux C ity; and Dwain Loyd, cashier C lim bing H ill Savings
Bank.
N orthw estern

Ba n ke r, M a r c h ,

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

1949

6—
R. W. Brown, cashier S ecu rity Savings Bank, Sioux City,
and secretary Siou x C ity Clearinghouse A ssocia tio n ; and A. E.
Muir, president O naw a State Bank.
7—
Charles Nelson, v ice president and cashier N orthern
Trust Com pany, C h icago; and Lee Holland, v ice president
W ash ington State Bank.
8—
Marvin Selden, v ice president M erchants N ation al Bank,
Cedar R a pid s; Paul Hansen, v ice president L iv e S tock N ation al
Bank, Omaha; H. A. Boehm, v ice president C ity State Bank,
O gden ; and Herb Echtermeyer, v ice president L iv e S tock N a
tional Bank, Omaha.
9—
Alden S. Bagnall, v ice president L iv e S tock N ational
Bank, C h ica go; and Charles H. Griesa, v ice president InterState N ational Bank, K ansas City.
10—
J. C. Blackford, v ice president U nion Bank & Trust Com
pany, O ttum w a; R. A. Daedlow, v ice president M ediapolis S a v
ings B a n k ; B. J. Smith, assistant cashier Iow a State Bank,
M orn ing Sun; and F. W. Allen, cashier M uscatine B ank & Trust
Company.
11—
A. T. Donhowe, v ice president Central N ational Bank,
Des M oin es; and Randall Vance, M t. Pleasant B ank & Trust
Com pany.
12—
Frank L. Kos, cashier W ash ington State B a n k ; and Jack
Rigler, N orthern Trust Com pany, Chicago.

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

Iowa N e w s

A t th e Iow a F e b ru a ry

------->

( A ll nam es re ad in g from le ft to rig h t)
1 George C. Swiler, chairm an o f board B u rlington Savings
B a n k ; and Frank C. Crone, president N ational Bank o f B ur
lington, and new chariman o f Group Eleven.
2—
— Kenneth Martin, v ice president F irst N ational Bank,
M in neapolis; William Whitman, assistant v ice president A m er
ican N ational Bank, C h ica go; Frank Fuchs, v ice president First
N ation al Bank, St. L ou is; and George S. Henry, assistant vice
president F irst N ational Bank, M inneapolis.
3—
Elmer H. Warner, secretary and m anager M erchants B on d
ing Com pany, Des M oin es; and H. E. Qualheim, president
C raw ford County Trust & Savings Bank, D enison.
4—
Conrad E. Aronson, assistant cashier T oy N ational Bank,
Sioux C ity ; and Lester L. Siems, assistant m anager bond de
partm ent N orthern Trust Com pany, Chicago.
5—
M oines.

Henry Byers, president Bankers Service Com pany, Des

6—
Jacque Frost, assistant cashier Chase N ation al Bank, N ew
Y o r k ; Frank Warden, v ice president Central N ational Bank,
Des M oin es; Hugh R. Kirkpatrick, Chase N ational Bank, N ew
Y o r k ; Roland White, bond departm ent H arris Trust & Savings

Hedrick Bank Sold
Floyd Whitmore, formerly of Coin,
Iowa, but more recently of Lincoln,
Nebraska, where he finished his
course in business administration at
the University of Nebraska, has pur
chased the Hedrick Savings Bank,
Hedrick, Iowa, from the former own
er, J. B. Thompson, whom he suc
ceeds as president.

Bank, C h ica go; Joseph Snyder, asssitant secretary M a n u fa ctu r
ers Trust Com pany, N ew Y o r k ; W. W. Summerwill, v ice p resi
dent Iow a State Bank & Trust Com pany, Iow a C ity ; and Dale
Smith, assistant cashier Central N ation al Bank, Des M oines.
7—
Everett Griffith, v ice president Iow a-D es M oines N ational
Bank, Des M oin es; Austin L. Vickery, vice president U nited
States N ation al Bank, Omaha; and Robert F. Balsley, assistant
cashier H arris Trust & Savings Bank, Chicago.
8—
Phil Lister, De Luxe Check Printers, C h ica go; and W. B.
Griffin, Jr., cashier Iow a State Bank, Fairfi&hl.
9—
Harry Schaller, president Citizens F irst N ation al Bank,
Storm Lake, and president Iow a Bankers A sso cia tio n ; and
Ernest J. Hultgren, F irst N ational Bank, Chicago.
10—
€arl Bloom, assistant cashier F irst N ation al Bank,
Omaha; H. L. Brune, v ice president N ebraska State Bank, South
Sioux City, N ebraska; and John Lauritzen, v ice president First
N a tion a l Bank, Omaha.
11— Horace Smith, Scarborough & Com pany, Chicago.
12—
Fred D. Cummings, assistant v ice president D rovers N a
tional Bank, C h icago; and Carl Fredricksen, president L iv e
S tock N ational Bank, Sioux City.

Before his three years of service in
the Marine Corps, Mr. W hitmore was
associated with the City National
Bank of Shenandoah, Iowa. He was
born and raised in Page county, Iowa.
The future plans of Mr. Thompson
are indefinite. The contracting parties
to this sale were represented by
Charles E. W alters Company, bank
stock merchants of Omaha, Nebraska.

Speed is always necessary in efficient banking
operations, and a transit item is still just an
item until it is converted into collected funds.
In this area we can keep your transactions
moving at a pace that will make a connection

Honor Indianola Banker
W. N. Grant, vice president of the
Peoples Trust and Savings Bank, In
dianola, Iowa, was honored at the
annual stockholders’ meeting for his
30 years of service with the bank. He
was presented with a gold watch in
appreciation of his fine work.
Myron S. Orr, Indienola furniture
dealer, was elected to the board to
replace J. H. Redman who resigned
recently to become cashier of the F irst
National Bank at Glidden.
Benjamin R. Leitch, vice president
of the bank, has been a patient in Sa
cred Heart hospital at LeMars, Iowa,
since December 24, 1948, when he was
stricken with a severe heart ailment
while he and Mrs. Leitch were visiting
at the home of a daughter over the
Christmas holidays. Officers of t-he
bank have hopes that Mr. Leitch will
be back at his desk within a few
weeks.

with the City National a desirable one for you.

Hold Open House on
50th Anniversary

NATIONAL

F IF T H A V E N U E
SOUTH-226-

BANK

C & n tc n , < 9 cu / a
Member Federal Deposit Insurance Corporation

D id 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 I R S T NA TIONAL B A N K BU ILD IN G
N orthw estern

Ban ke r, M a r c h ,

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

1949

•

Officers, directors and the staff of
the Glenwood State Bank, Glenwood,
Iowa, were hosts at “open house” to
customers and other friends of that
city and surrounding community last
month in observance of the bank’s
50th anniversary since founding. The
opening date of business was Febru
ary 27, 1899.
To familiarize the public with the
Glenwood State Bank’s history, a full

n o n U

O C - < i l U O r O L l c £ I l CX. V_>vJ 111 JJ¿111 J

CH IC AG O 3, I L L I N O I S

Insurance Counselors
•

S T A T E 2 4325

to Banks

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

Io w a News

h u m Citif Hunh ttviniHlels

page ad was run in the local paper,
and later reprinted and distributed by
mail, in which the growth of the bank
was noted by the increases in capital
accounts and deposits. Capital origi
nally was $25,000 total, whereas to
day it is $215,296 for capital, surplus
and undivided profits. Deposits have
swelled from $48,617 in 1899 to $4,435,545 at the end of 1948.
Prominent in this broadside display
was a unique slogan attracting atten
tion, which read as follows: “Your
Grandfather’s Bank—Your F a th e r’s
Bank—Your Bank.”
R. C. Hopp is chairman of the board
of Glenwood State Bank and Clyde
Rhoads heads the officer staff as presi
dent.

Promotions at Fort Dodge

TELLIN G THE STORY EFFE CTIV ELY through the use of attractive display
ads in the local paper, the Iowa State Bank and Trust Company of Iowa City last
month invited its customers and other friends to visit the hank’ s newly-remodeled
offices. The first three day’s ads, occupying one-half to two-thirds page display
space, carried pictures o f different rooms in the bank and explained the banking
operations taking place in each department pictured.
Bach o f the first three ads carried the message, “ Watch for Our Second (Third,
Fourth) Report Tomorrow,” thus drawing vast reader interest. The fourth report
was a report to the community on the condition o f the bank, its services to cus
tomers and Iowa City and a report, with illustrations, of the financial condition
of Iowa City itself. This ad was signed in the handwriting of Ben C. Summerwill,
president.
Pictured above is the main banking room, showing new tellers’ cages, excellent
lighting and clean, streamlined appearance. Officers’ desks are just to the left
out of this picture. Another picture of the bank is below.

H arry T. Huff was elected executive
vice president and A. A. Gerken was
named cashier of the State Bank of
Fort Dodge, Iowa, at the annual meet
ing of the bank’s board of directors.
Mr. Huff was advanced to the exec
utive vice presidency from the cash
ier’s post which he has held for many
years. Mr. Gerken was elected cash
ier after holding the position of as
sistant cashier for the past seven
years.
Other officers of the bank were re
elected at the annual meeting. They
are C. W. Gadd, chairman of the
board; F. L. Loomis, president; W al
ter L. Casteel and Donald Vincent,
vice presidents; and E. H. Moore, as
sistant cashier and trust officer.

Install New Deposit Boxes
Last month two representatives
from the Diebold Safe & Lock Com
pany of Canton, Ohio, completed the
installation of 300 new safety deposit
boxes at the Home Trust & Savings
Bank in Osage, Iowa.
W. E. Sheldon, president of the
bank, states that this is the third
addition of an extra lot of safety de
posit boxes to be added since the bank
moved to its present location in 1937.
The bank now has a total of 1200 such
boxes.

With Iowa City Bank

PRIV ACY AND CONVENIENCE are available in the modernistic personal
loan department shown in the above picture. The first installation of its kind
in Iowa, this room also provides separate rooms for consultation.

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

H. Clark Houghton became asso
ciated with the F irst National Bank
of Iowa City as assistant cashier
March 1st, Fran k D. Williams, presi
dent, has announced.
Mr. Houghton was graduated “with
distinction” from the college of law
of the University of Iowa last month
and has been admitted to the bar of
Iowa. He is a member of Phi Beta
Kappa and A .F.I. F o r the last seven
summers he has worked with the
Houghton State Bank of Red Oak,
where his father, H. C. Houghton, is
president.

In today’s fast-changing economic picture the
banker is usually the busiest man in sight. New
problems come up every day . . . old problems
take new slants... whichever way things develop
the banker must be ready with the right answer.
A good many of the answers have already
been worked out at the Marquette . . . and our

Department of Banks and Bankers has the
know-how and enthusiasm to be of real help
to the independent banker in meeting new
problems as they arise.
Call on the Marquette when you need help,
we’re as near as your telephone . . . or stop in
for a visit the next time you’re in Minneapolis.
LYNN FULLER

RUSSELL L. STOTESBERY

Executive Vice President

President

DEPARTMENT OF BANKS

S T R O N G

F R I E N D

BANKERS

Assistant Vice President

Vice President

T H E

AND

OTTO H. PREUS

CHARLES C. RIEGER

T H E

I N D E P E N D E N T

MARQUETTE
517

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

MARQUETTE

AVENUE

B A N K E R

BANK
MINNEAPOLIS

2, M I N N E S O T A

M E M B E R FED ER A L D EPO SIT IN S U R A N C E C O R P O R A T IO N
N orthw estern

Banke r,

M arch,

1949

Iowa News
his controlling interests in the Red
Oak bank last November to Winfield
S. Mayne, who was elected president
in January.

Elect Officers
At the recent quarterly meeting of
the Southwestern Iowa Bankers As
sociation at Farragu t, E. W. Burdic
of Malvern was elected president for
the coming year; Louis H. Boettcher
of Villisca, vice president; Don Clay
ton of Hamburg, secretary, and DeLoss Quist of Essex, treasurer. Rob
ert Henstorf, Jr., of Farragut, is the
retiring president.

Capital Increased
The capital stock of the Valley
Bank and Trust Company, Des Moines,
was increased last month from $600,000 to $1,000,000 at a special meeting

E. L. Walleser
E.
L. Walleser, 59, president of the
F irst Security Bank and Trust Com
pany, Charles City, Iowa, died of a
heart attack at his home last month.
He had been at his office in the bank
that same day.
He was born at Nashua and moved
to Charles City in 1909. He had been
connected with the bank since 1911 and
was named president in 1946.

Henry E. Ritz
Henry E . Ritz, 75, vice president of
the F irst National Bank at Eldon,
Iowa, died at his home in Ottumwa
last month after a brief illness. He
had been associated with the First
National of Eldon as an officer and di
rector for 50 years, having served
earlier as cashier. He retired from
active service in the bank seven years
ago.

With Red Oak Bank
Frank Hamilton has accepted a
position as cashier of the Montgomery
County National Bank at Red Oak,
Iowa.
Mr. Hamilton has been cashier at
the Harlan National Bank since 1942,
moving there from a bank at Malvern.
George W. Artherholt, 45, who had
been president of the Montgomerj^
County National Bank from 1937 until
the annual meeting in January of this
year, died at a Red Oak hospital re
cently. He entered the bank at H art
ley with his father after graduation
from the University of Minnesota and
from 1933 to 1937, when he moved to
Red Oak, was with the regional agri
cultural bank at Sioux City. He sold

New Assistant Cashier
V. L. Hall and S. A. Rustad have
been elected assistant cashiers of the
Peoples Savings Bank, W aterloo, Iowa.
F R E D E R IC K M. M O R R IS O N
A nnounces Capital Stock Increase

of the bank’s stockholders. The bank
also has a surplus of $200,000 and un
divided profits in excess of $200,000,
according to President Frederick M.
Morrison. The increase was made
possible through the declaration of a
stock dividend of two for three of the
common stock.

Your "SILENT'' Salesman
The Printed M essage from your firm is your
''Silent” Salesman.

Make sure it makes the

best impression on your client by using the
best quality of paper.
•

•

FOR THE BEST IN PAPER S T O C K
C o n s u l t this Firm

NEW HOUSE PAPER COMPANY
tkB e t t e r P r in t in g P a p e r s ”
Minneapolis

N orthw estern

St. Paul

Ban ke r, M a r c h ,

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

1949

The Valley Bank and Trust Com
pany is one of Iowa’s oldest banks
dating back to 1872. It is this year
entering its 77th year.
Present officers of the Valley Bank
and Trust Company include Fred
erick M. Morrison, president; Winfield
W. Scott, senior vice president; ,1. R.
Astley, Edward P. Kautzky, Roy E.
Huber and Ray Thompson, vice presi
dents; F ran k M. Thompson, cashier,
and Carl V. Altman, George W. Gill
and Jam es Morrison, assistant cash
iers.

Des Moines

Moline

Dubuque

Banking Department
Announces Stock Increases
The Iowa Department of Banking
announces the following changes in
capital stock of Iowa state banks, all
increases having been made by dec
laration of stock dividends. This list
includes those not reported previously
in the Northwestern B anker or else
where in this issue:
Rowley Savings Bank, Rowley, in
creased capital stock from $20,000 to
$30,000.
Farm ers State Bank, Kanawha, in
creased capital stock from $25,000 to
$50,000.
Security State Bank, Ireton, in
creased capital stock from $15,000 to
$30,000.
Security State Bank, Independence,
increased capital stock from $50,000
to $75,000.
Ankeny State Bank, Ankeny, inincreased capital stock from $15,000
to $30,000.
Commercial State Bank, Marshall
town, increased capital stock from
$50,000 to $100,000.
Farm ers Savings Bank, Garwin, in
creased capital stock from $20,000 to
$25,000.
Prim ghar Savings Bank, Primghar,
increased capital stock from $30,000
to $45,000.
Farm ers & Merchants Savings Bank,
Lone Tree, increased capital stock
from $30,000 to $45,000.

PLEASE CALL ON US
FOR ANY
PERSONAL SERVICE
WE CAN OFFER
IN DES MOINES

VALLEY BANK AND TRU ST COMPANY
DES MOI NE S

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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

N orthw estern

Ban ke r.

March,

1949

low a News
ant cashiers, Anna Bohan and Jam es
Cravens. Directors are E arl W. Mayne,
Edw. R. Bohan, J. W. Cravens, C. F.
W atters and Jam es Cravens.

Manages Mallard Office
Alvah Jorgensen has accepted a po
sition as manager of the branch office
at Mallard of the Palo Alto County
State Bank of Emmetsburg, Iowa.

Elected Vice President
E. J. Hough was elected a vice presi
dent of the Security State Bank of
Algona, Iowa, at the annual meeting
to fill the vacancy left by the recent
death of Frank Kohlhaas. W. W. Sulli
van was elected to the board of di
rectors to take Mr. Kohlhaas’s place
there. All other officers and directors,
including President C. B. Murtagh,
were re-elected.

Returns to Carroll
George B. Werdel has returned to
the vice-presidency of the Carroll
County State Bank, Carroll, Iowa, the
same position he held at the time he
and Mrs. Werdel left Carroll almost
four years ago to live in Rochester,
Minnesota. F o r a number of years
previously Mr. Werdel was associated
with the Carroll County State Bank.
While living at Rochester, he was vice
president of the Union National Bank.

Name New Directors

Sanborn Bank's 50th Year
The Sanborn Savings Bank com
pleted fifty years of service in San
born, Iowa, last month. F or the occa
sion, officers of the Continental Illinois
National Bank and Trust Company, of
Chicago, sent a beautiful large plant
to the bank, which has been doing
business through that Chicago bank
for their entire fifty years.
Present officers are: president, J.
W. Cravens; vice president, E. W.
Mayne; cashier, C. F . W atters; assist

The Farm ers & Merchants Savings
Bank of Burlington, Iowa, last month
re-elected all officers and board mem
bers and added three new directors.
Announced as new members of the
board at the annual meeting were
John Hodson, Bruce W erden and Dale
Kelley.
Officers re-elected are H. R. Bucttner, chairman of the board; Mark T.
Blaul, president; C. H. Walsh, vice
president; Mr. Kelley, cashier; H. A.
W ittkamp and Cecil E. Orr, assistant
cashiers.

SOLVE THE PROBLEM OF INVENTORY LOANS
through

FIELD WAREHOUSE RECEIPTS

by
WILLIAM H. BANKS WAREHOUSES, INC.
HELD WAREHOUSE RECEIPTS, issued by WILLIAM H. BANKS WAREHOUSES,
INC., representing inventories stored right on the borrower's own premises furnish
Bonks with SAFE and SOUND Collateral to inventory loans, with a minimum of
inconvenience to the Borrower and maximum protection to the Bank.
D IV ISIO N O F F IC E S

if
Angola, Indiana
Des Moines, Iowa
if
St. Louis, Mo.
if
Madison, Wis.
Weslaco, Texas
Grand Rapids, Mich.
if
Fayetteville, Ark.
if

WILLIAM H .B A(INC.)
M S WAREHOUSES
209

SO L A S AL L E ST

CHICACO

III

^ieM IVaàehmiAe 'Receipt*. W|NDU* “ ■
S'udtptuf THE GAP Between

BANKING and INDUSTRY

State Banking Report
Assets of Iowa state chartered banks
and bank offices increased $27,919,779
in the second half of 1948, the Iowa
superintendent of banking said last
month.
Superintendent Newton P. Black re
ported the 558 state chartered banks
and 162 bank offices had assets totaling
$1,598,442,788 as of December 31, 1948.
Although the assets increased from
the total of June 30, 1948, Mr. Black
said, they were $95,621,836 below the
total for December 31, 1947.
Mr. Black said the principal items
reflecting the change were: cash de
cline of $41,871,447; decline in United
States government securities of $18,358,402; decline in all other bonds and
investments of $435,701; increase in
loans of $110,692,975 and building and
equipment increase of $392,474.
Total deposits in state banks were
up $24,576,432 compared to the June
30th bank call, and totaled $1,503,144,109. However, they were 6.47 per cent
— or $142,040,225— less than the Decem
ber 31, 1947, total.
The 558 banks inci’eased their capital
$1,497,500, and added $4,340,300 to sur
plus and $2,597,696 to undivided profits
and reserves—a total of $8,435,496.
This was an increase of 9.87 per cent
compared with December 31, 1947. Mr.
Black said all capital accounts showed
“meritorious gains.”
He said he felt banks were “in
much better condition at the present
than they were at the same period
following World W ar I.”

60 Years As a Banker
William H. Rose, F o rt Madison,
Iowa’s oldest banker, worked as usual
last month on the 60th anniversary of
his entry into the banking business.
When Mr. Rose started to work for
the F o rt Madison Savings Bank on
February 1, 1889, he was an office boy.
Since then he has held every position
up to and including vice president,
his present job with the F o rt Madison
Savings Bank.
The veteran banker has long been
known as one of F o rt Madison’s lead
ing bicycle enthusiasts. W henever the
weather is good, he rides his bicycle to
work. In earlier days, he and his
friends used to take bicycle trips as
far as Peoria, Illinois.

THE TOY NATIONAL BANK
ALWAYS

FRIENDLY COOPERATIVE

SERVICE

IN T H E H E A R T OF D O W N T O W N S I O U X C I T Y
M em ber
N o r t h w e s t e r n Ban ke r, M a r c h , 1949

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

F ed era l

D e p o s it

In su ra n ce

C o rp o ra tio n

Iowa N e w s

Monona County Election
Members of the Monona County
Bankers Association met at Moorhead,
Iowa, recently and elected new officers
for the coming year.
A. H. Burning, cashier of the Mapleton Trust & Savings Bank, was chosen
president succeeding E. W. Nun, cash
ier of the Ute State Bank.
Don Halverson assistant cashier,
Soldier Valley Savings Bank, Soldier,
was named vice president and Jam es
G. Whiting, assistant cashier of the
Mapleton Trust & Savings Bank, was
elected secretary and treasurer.

Waterloo Promotions
At the W aterloo Savings Bank J. J.
Miller has been promoted from vice
president and cashier to executive vice
president and tru st officer; V. Spalding
Miller from assistant vice president to
vice president and cashier; and F ra n
cis R. L aB arre from assistant vice
president to vice president and assist
ant trust officer.

Heads Spencer Bank
J. W. Edge has been advanced to
the post of president and Leon A.
W itter takes over as chairman of the
hoard of directors of the F arm ers
Trust and Savings Bank of Spencer,
Iowa, as the result of an election held
at a recent meeting of the stockholders
of the hank. Mr. W itter will also
occupy the post of executive vice
president.
Other officers named are: R. M.
Tuttle, vice president; K. R. Tuttle,
cashier; A. J. Prechel, A. L. Chalstrom,
Leon Walker, Florence E r i c k s o n ,
Charlotte Glover and Kenneth Edge,
assistant cashiers.
The hoard of directors, with Mr. W it
ter as chairman, will be composed of
George A. Heikens, Otto Hummel, R.
M. Tuttle, R. M. Cornwall, D. E . Cole
and Mr. Edge.

meetings of stockholders and directors
of the Perry State Bank, Perry, Iowa.
Capital was increased from $50,000 to
$ 100,000.

Officer changes are as follows:
Dr. W. A. Seidler, president, was
named chairman of the hoard.
N. P. Black, cashier, who also is
state superintendent of banking, was
elected president.
George Armstrong, assistant cashier,
was elected cashier.
Jam es Haas, a teller at the bank the
past two years, was elected an assist
ant cashier. There are now three as
sistant cashiers at the bank. The
others are B. A. Raynor and P. T.
Tierney.

★

Mr. Armstrong also was elected a
member of the board, and all other
hoard members were re-elected.
These are F . W. Bailey, Edward
Kautzky, Sr., Hans Meier, Sr., Dr.
Seidler and Mr. Black.
The latter four have been directors
since the organization of the bank
November 3, 1927.

E. P. Adler
E. P. Adler, 76, prominent Daven
port, Iowa, publisher, and former
president of the Davenport Bank
and Trust Company, died in a hos
pital there earlier this month. He
was a well-known and popular figure
throughout Iowa and the middlewest

★

The Know How and the Where-Withal!
Two factors— Knowledge and Facilities— are the
cornerstones of correspondent bank service here at
the First National Bank in Sioux City. Our Knowledge
is the cumulative experience of all our officers, over
a period of many years in correspondent relations.
Our Facilities are those of a modem bank, fully and
effectively staffed.
W e cordially invite your business here in Sioux
City.

A. G. SAM, President
J. T. Grant, Vice President
E. A. Johnson, Assistant Cashier
J. R. Graning, Cashier
H. H. Strifert, Assistant Cashier
W. L. Temple, Assistant Vice President
K. J. Shannon, Assistant Cashier
J. Ford Wheeler, Auditor

Winterset Bank Changes
J. A. Ramsey was elected chairman
of the board of directors of the F arm
ers and Merchants State Bank of W in
terset, Iowa, at the annual meeting of
stockholders.
Other officers elected were:
N. E. Kelley, former executive vice
president, who succeeded Mr. Ramsey
as president; I. K. Sayre and R. R.
Gillespie, vice presidents: J. W. McKee,
cashier; and C. D. Butterfield, assist
ant cashier.
Mr. Ramsey also will he executive
vice president.

Perry Bank Changes
Several changes in executive posi
tions and doubling of capital stock
were announced last month following

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

N A T IO N A L
BANK

in SIOUX CITY

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

-------------- ★

★

-------------

N orthw estern

Ban ke r, M a r c h ,

1949

Io w a News

for his leadership in the field of
journalism and in the banking field
when he was actively associated with
the Davenport Bank and Trust Com
pany.

SPECIALIZING IN

AUTOMOBILE
FIRE
WINDSTORM

INSURANCE
CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iowa
E. A. H A Y ES
President

O. T. W IL SON
S e c r e ta ry

E sta b lish e d in 1929

BANKS
handle addressing of
Statements, Envelopes, and
other forms from 10 to 50 times
faster than typewriter or
hand methods and with
assurance of 100%
ACCURACY AND LEGIBILITY

Q y w s u d iq ja b i

A d d r e s s o q r a p h
JPAOEMARKREGUSPAT Off m—
J

VPlsrtJw dA
Addressograph Sales Agency

OMAHA — DES MOINES
DAVENPORT
N orthw estern

Banke r, M a r c h ,

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

1949

H oir
W e imitili to In crea se
O ur H ank K a m in tfs in 1040
(Continued from page 19)
Harold G. Nicolaus, vice president,
Wilton Savings Bank, Wilton Ju n c
tion, Iowa: “The thought that occurs
to me is that we as servants of the
general public ought to stress how we
may better serve its welfare, not how
we might increase our profits.
“Do you not agree that the publi
cizing of new records of profits has
been a thorn in the side oi the labor
ing man, and an effective tool lor the
labor unions to wield against tapiial?
“If we better serve our customers in
an intelligent fashion our profits will
result thereaom .
Leo E. Ryan, cashier, Platte Valley
State Bank, Kearney, Nebraska: “We
plan to increase our earnings by in
creasing the number of customers that
use our services.
“To gain the customers, we intend
to radio and pamphlet advertise in
tensively, and keep our name before
the public by judiciously passing out
calendars, leather goods and novelties.
“Good will is the basis of our bank
ing business, and that, coupled with
proper advertising, should do the
trick.”
V. G. Schaffer, cashier, Farm ers and
Merchants State Bank, Balaton, Min
nesota: “We have no plan for increas
ing our earnings in the coming year.
We are much moie concerned with
running our bank on an 'ultra-con
servative’ basis in the light of superinflated conditif ns.
“We feel a conservative investment
policy is much more important than
increasing our income. Any bank that
endeavors to increase e a r n i n g s
through a more lenient loan policy, or
a longer term security portfolio is,
indeed, treading on dangerous ground.
“In our opinion, present conditions
are breeding a lot of difficulty for any
bank failing to keep in mind that
present values are, generally speak
ing, 200 to 300 per cent higher than
normal. Any loaning officer should
consider this fact. The same uncer
tainty is true with the security pic
ture.”
Will A . Lane, president, Security
Savings Bank, Marshalltown, Iowa:
“Frankly we do not expect to increase
our earnings in 1949. Our earnings
for 1948 were about the same as in
1947. While the gross income for 1948

was considerably higher than that of
1947, expenses were likewise higher
with the net about the same.
“Currently our investment position,
as to total assets, is 21.3 per cent in
loans, 58.4 per cent in bonds and 20.3
per cent in cash. We do not care to
increase our loans beyond present
levels unless for short term on assured
maturity payment. We could increase
our income by forcin g an increase in
our loans but involved in this would
no doubt be the assumption of risk not
compatible with sound banking prac
tices.
“By lengthening the maturities in
our bond account we could add mateiially to our income but with 50 per
cent of our bonds due within one year
and no m aturity beyond the 2’s of
1952/54 we feel well protected against
deposit shrinkage.
“It is my opinion that bankers
should give more attention to proper
charges for their services, as a pro
ducer of income, rather than to force
the loan or bond accounts to provide
income not consistent with sound
practices.
"1 do not say this is the best formula
in existence but we have done very
well with it and do not look for much
variation in 1949 unless it be a lower
deposit level the latter half of the
year. This will depend somewhat on
the fiscal policies of the government.”
Frank >1. Pollard, vice president
and cashier, Union Bank and Trust
Company, Ottumwa, Iowa:
“After
having enjoyed one of the best years
of our existence, it is quite difficult to
gaze into the future and make definite
policies concerning our future earning
power. In this fast changing world
of ours there are too many elements
occurring daily which are bound to

IOW A •LITHOGRAPHING •COMPANY
FOUNDED BY GEORGE H RAGSDALE •

• EDWIN G. RAGSDALE * SECRETARY

515 TWENTY EIGHTH STREET

DES •MOINES

Q U A L IT Y

- E X P E R I E N C E

• S E R V IC E

Iowa News

have an effect on current situations,
and one change oftentimes stabilizes
another change. An example is that
during the past year some banks have
raised their interest rates, and while
the big gain in earnings should show
in the future, there is an offset in that
‘Regulation W ’ has been re-established,
which will have a large effect on any
bank with a large volume of this type
of financing. So it is, all down the
line.

“ We hope to increase our earnings in 1 9 4 9 through im proved
personal service to custom ers and better custom er relations.
Thus we will gain m ore custom ers, and at the same tim e increase
o u r loan volum e. W e will cooperate with all local worthy p roj
ects. This som etim es m eans a lot of extra work, but it pays
dividends.”

“However, to me the most impor
tant item is that of a bank continually
being on its toes to improve its ‘Pub
lic Relations.’ We are making a most
decided effort along this line. All em
ployes should be counseled to be cour
teous, cheerful, neat and efficient with
customers. Make calls on all new ar
rivals in the community, acquaint
them with your town and try to make
them glad they moved there. Call on
all the mothers of new babies in your
community and present them with a
‘Baby Savings Bank.’ E n ter into the
activities of the 4-H clubs. Here is a
great field. Don’t forget the old quo
tation—‘The children of today are the
customers of tomorrow.’ Above all,
remember the bank belongs to the
customers. Always strive to do your
best by them, and they in turn will
do their best by you.”

A . H. Haakenson, vice president and
cashier, Austin State Bank, Austin,
Minnesota:
“Perhaps first in our
thoughts about making increased
profits in 1949 is aggressive but intelli
gent effort in developing consumer
loans both of the direct type or dis
counts purchased from dealers. We
have already had experience through
a better than average volume of con
sumer business, to be assured the
extra work and cost of handling is
well worth while.
“The advantages of the consumer
loan to us are manifold. The wide
spread of borrowers as against concen
trations . . . the rapid turnover of
funds . . . the substantially increased
revenue made possible by finance
rates are some of the more common
ly recognized advantages.
“Still more important, however, is
the tapping as prospective new cus
tomers of a surprisingly large element
of people who for one reason or an
other have rarely if ever been in con
tact with services afforded by a bank.
We have had some of our most pleas
ant experiences as a result of contract
purchases. The resultant introduction
to services offered by our bank has
frequently been the start of a happy
and mutually profitable contact.
“One of the common reactions, no
doubt expressed to many bankers, is
the surprise shown by the borrowers
when they discover bank financing
costs less. This surely reflects favor
ably on bank lending since consumer
loans carry our highest rates.
“While extolling the desirable fea
tures of this lending we must at the
same time be aware of increased haz
ards involved. F irst of all, production
of goods is now rapidly catching up
with supply. Our loans must there
fore be well screened at inception.
Indirect paper should be purchased
only from reliable and responsible
dealers whether with or without re
course. Lenders must protect them
selves against borrowers over extend
ing themselves on payments. Delin
quencies must be watched more
closely.
“After weighing the factors on both
sides, we are convinced ‘there is “gold”

MERCHANTS
MU T U A L

BONDING
COMPANY
Incorporated 1933

Home Office
S A V IN G S & LO A N B U IL D IN G

Des Moines, Iowa

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

E. H. WARNER
S e c re ta ry and M an ag er

W. W. WARNER
A ssista n t S e c re ta ry

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

H . H. L E X V O L D , V ic e P res, and C a sh ier ,
F irst N ational B a n k ,
L ake W ils o n , M in n esota .
in them thar consumer loans.’ One
of our objectives for 1949 is to provide
a well trained staff to help mine it
out. Personnel with understanding of
basic credit principles and ability to
win the confidence of our consumer
customers will, we hope, contribute
substantially to our earnings in 1949.
By the same taken, ready availability
of this type of credit is also a service
to the community.
“Other projects of a specific nature
for bettering our 1949 earnings include
adoption of revised service charges,
installation of time saving bookkeep
ing and teller operations, stressing of
auction sale service, and expansion of
draft and money order business.
“In a more general way we hope to
increase revenue by appealing to our

DEPOSI T-BY-JWAI L
Simplified ba nki ng b y mail.
Tim e-saving convenience for
c u s to m e rs...fo r you. H andle
in slack periods, reduce er
rors. Deposit slip bears post
m ark , . . exclusive patented
fla p protects contents.
In desired papers and colors.
W rite for sam ples and prices.

T e n s io n E n v e l o p e C o r p .
N e w Y o rk 54,. N, Y.
M in n e ap o lis 1, M inn.
St. Louis 10, Mo.

*4 '"O*
N orthw estern

Ba nke r,

March,

1949

Iowa N e w s

Foot power check canceller. Good
condition. Die reads paid and date.
Business Machine Company
2728 Second Avenue South
Minneapolis 8

OFFICE
P

K
FOURTH ondCRAND
DES MOINES

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION
Oldest in Des Moines
210 0th Ave.

Dial 2-8303

I5LMEK E. M ILLE R
Pres, and Sec.
FOR YO U R

H U BE R T E. JAM ES
Asst. Sec.

E N JO YM E N T . . .
Listen to the

“ W O R LD OF M U SIC”
KR N T, 1350 KC

1 to 1:30 p.m. Sundays

stall' to show more sincere apprecia
tion for business given us by custom
ers—old and new. This warmth of
feeling costs nothing to generate and
pays tremendous dividends if put out
with sincerity. The customer whose
business is acknowledged and appre
ciated will likely bring another. It is
our hope and desire that our entire
staff will reflect this policy.”
H. E . Iverson, cashier, Farm ers
State Bank, Canton, South Dakota:
“Our thoughts will be along the fol
lowing lines:
New business solicitation of people
residing in our territory who are not
customers of our bank.
“Lending our support to farm pro
grams of soil conservation and weed
control. We feel much can be accom
plished along these lines to increase
earnings of our farm patrons, which
will make them better customers of
our bank.
“Encouraging a program of modern
ization of farm buildings to make
them more attractive for the young
people growing up on the farms.
“Counseling with farmers on their
problems and encouraging them to be
alert to changing conditions affecting
farm economy.
“Lending our efforts to modern
trends of education in rural, as well as
city schools to better fit the boys and
girls for the future.
“Encouraging a program of syste
matic saving through purchases of
government bonds and savings ac
counts in banks and other savings
institutions.
“We feel that people should now be
building up a back log to provide
necessities and improvements which
will be available in the future. We
encourage a program of saving rather
than going in debt for these things.”

Heads Fairfield C. of C.
Glenn A. Sherman, cashier at the
F irst National Bank, Fairfield, Iowa,
was elected president of the Fairfield
Chamber of Commerce recently w^hen
the board held its reorganization meet
ing.

LEGAL QUESTIONS

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

N o r t h w e s t e r n Ba nke r, M a r c h , 1949

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

(Continued from page 22)
new lease is intended to be executed
in the case of a renewal, no such in
strument is necessary and the lessee
continues to hold under the original
document.
Iowa, Tennessee, and
Arkansas are among the states that
follow this rule. A distinction is made
in some jurisdictions, but they are in
the minority.

"Ferdinand" Makes a Hit
Ferdinand, a 950 pound Hereford
steer, was sold at auction in the lobby
of the Midland National Bank, Minne-

C O N V E N T I O N S
March 20-22, Annual Convention, In
dependent Bankers Association,
Biloxi, Mississippi, Buena Vista
Hotel.
April 18-22, Group Meetings, Nebraska
Bankers Association.
April 23, Federal Reserve Bank Con
ference, Minneapolis, Hotel Nic
ollet.
April 24-26, A.B.A. Executive Council,
French Lick, Indiana, French Lick
Springs Hotel.
April 27-28, Annual Meeting, Central
States Conference, French Lick,
Indiana, French Lick Springs
Hotel.
May 6-7, Annual Convention, South
Dakota Bankers Association, Ab
erdeen. Alonzo Ward Hotel.
May 9-11, Annual Meeting, Missouri
Bankers Association, Kansas City.
Hotel Muehlebach.
May 10-13. and May 24-27, Group Meet
ings Iowa Bankers Association.
May 18-20, Annual Meeting. Kansas
Bankers Association, Kansas City,
Missouri.
May 30-June 3, A.T.B. Annual Meet
ing. Portland. Oregon, Hotel
Multnomah.
June 8-9. Annual Convention. Minne
sota Bankers Association. St. Paul.
Hotel St. Paul.
June 13-17. 47th Annual Convention.
American Institute of Banking.
Portland, Oregon.
June 17-18, Annual Convention, North
Dakota Bankers Association. Mi
not, Clarence Parker Hotel.
June 20-22, 53rd Annual Convention,
Wisconsin Bankers Association,
Milwaukee, Schroeder Hotel.
June 20-July 7, Graduate School of
Banking, Rutgers University.
August 22-September 23, Central
States School of Banking, Univer
sity of Wisconsin, Madison.
October 11-12, Annual Convention,
Nebraska Bankers Association,
Lincoln, Hotel Cornhusker.
October 17, 18, 19, 63rd Annual Con
vention, Iowa Bankers Associa
tion, Des Moines, Hotel Fort Des
Moines.
October 19-22, Annual ( 'onvention,
Financial Public Relations Asso
ciation, Chicago, Edgewater Beach
Hotel.
October 23-26, 25th Convention. Na
tional Association of Bank Audi
tors and Comptrollers.
October 30-November 2, 75tli Annual
Convention, American Bankers
Association, San Francisco. (Con
vention headquarters to be an
nounced later.)

Iowa News
apolis, last month.
Ferdinand was
walked into the lobby at 10 a. m.
where he nonchalantly ate alfalfa
until 2:15, at which time he was auc
tioned off.
The Midland Rank has had displays
in its lobby regularly for the past two
years, but Ferdinand was the first
living exhibit.
The display was put on for the pur
pose of aiding the Minnesota H eart
Association with their $50,000 fund
drive.
Some three hundred people gath
ered in the Midland Bank lobby to
witness the real honest-to-goodness
auctioneers with their rapid-fire chat
ter sell Ferdinand for $1.50 a pound,
and some $1,400 was added to the
H eart Fund. A radio transcription
of the auction wash made by Station
WTCN which was broadcast over the
airways about an hour later.

Dinner Speaker
A. M. Strong, vice president, Ameri
can National Bank and Trust Company
of Chicago, addressed a dinner meeting
in Omaha, Nebraska, on March 1st,
sponsored by the University of Omaha
and the Omaha Chamber of Commerce.
His topic was “Development of F o r
eign Trade in Inland Areas.”

in u f x

A I> Y F :itT IS F ItS

New Film Reader
A new motor-driven microfilm read
er, with constant focus at three speeds
and variable magnification of 21 to 35
diameters, is announced by Recordak
Corporation, subsidiary of the E a st
man Kodak Company.
Named the Recordak Transcription

New R e c o r d a k Transcription
Reader for viewing microfilm records
has a turret top which rotates
through 360 degrees. Operator can
turn the screen directly into her line
o f vision for maximum reading
efficiency. Magnification of images
can be varied from 24 to 35
diameters.

Reader, the new machine is designed
especially for retail stores, insurance
companies, government offices, title in

surance companies, and other business
organizations which refer to 16 mm.
film records frequently and continu
ally throughout the working day. Ac
cessory parts will be made available
for converting the reader to accom
modate 35 mm. film.
Resembling a two-drawer letter file
in height and appearance, the new
reader stands on the floor alongside
an office desk, within convenient reach.
An operator can load film and operate
the machine easily from a sitting posi
tion.
The turret top screen rotates through
a full 360 degrees. Operators can turn
the screen directly into their line of
vision for maximum reading comfort
and efficiency. Placed between adja
cent desks, the reader serves two
clerks alternately. At adjustment win
dows in retail stores, clerks settling
complaints can locate individual state
ments on the film without revealing
the purchases of other customers.

Change Bank Name
Shareholders of the Em pire Nation
al Bank and Trust Company of St.
Paul voted recently to change the
bank name to “Empire National Bank
of St. Paul.” The change was effective
the first day of February.

Dai n an d C o m p a n y , J . M...................................... 55
D a v e n p o r t , P. E. a n d C o m p a n y .............. 72-8 8
De L u x e C h e c k P r i n t e r s , I n c .............................61
De s Moi nes B u il d 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 ................................................................ 88
D o u g l a s , J o h n an d C o m p a n y , I n c ..................... 36
D r o v e r s N a t i o n a l B a n k ...........................
24

M a r q u e t t e N a t i o n a l B a n k .....................................81
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 . . . .8 7
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 a p o lis -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 .....................................................................56
M in n e s o ta C o m m e r c i a l M e n ’s A s s o c i a t i o n 59
M o s le r S a f e C o m p a n y ............................................. 6

X
M AR CH , 1949

E m p loyers Mutual C asu alty C om pany. . . 46
A

A d d r e s s o g r a p h S a l e s A g e n c y ...........................86
A ll en W a l e s A d d i n g M a c h in e C o r p ................16
A ll ie d M u t u a l C a s u a l t y C o m p a n y ................... 51
A ll y n , A. C., an d C o m p a n y .................................. 38
A m e r i c a n 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 ............................................ 60

II
B a l l a r d - H a s s e t t C o m p a n y .................................. 42
B a n k of A m e r i c a .........................................................45
B a n k of M o n t r e a l ............................„ .........................64
B a n k e r s R u b b e r S t a m p , I n c ................................. 88
B a n k e r s S e r v i c e C o m p a n y , I n c ........................29
B a n k e r s T r u s t C o m p a n y — Des M o i n e s . . . 91
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 ..........84
B e c k e r a n d C ow n ie , I n c ....................................... 32
B e c k e r , A. G. a n d C o m p a n y , I n c ........................39
B eh , C a r l e t o n D., C o m p a n y ............................... 38
B e y e r - R u e f f e l a n d C o m p a n y .............................38
B l a i r , W i l l i a m an d C o m p a n y ............................. 36
B y l l e s b y a n d C o m p a n y ..........................................40
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 .......... 4
C e n t r a l N a t i o n a l B a n k an d T r u s t Co. . . . 1 4
C e n t r a l S t a t e s M u t u a l I n s u r a n c e C o ...........86
C h a s e N a t i o n a l B a n k ........................................... 9
C h i c a g o , M i l w a u k e e , St. P a u l an d
P a c i f i c R a i l r o a d C o m p a n y ............................... 44
C i t y N a t i o n a l B a n k — C l i n t o n ............................. 78
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 — C h i c a g o .........................................................29
City National B an k and T ru st C om
p a n y — K a n s a s C i t y ............................................ 70
C o m m e r c e T r u s t C o m p a n y .................
28
C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . . 72
C ra b b e , T h o m a s L., a n d C o m p a n y .................42

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

N a t i o n a l B a n k of S o u th D a k o t a ..................... 63
N a t i o n a l C a s h R e g i s t e r C o m p a n y ............... 8
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 ..................................50 •
N e b r a s k a S a l e s B o o k C o m p a n y ........................73
N e w h o u s e P a p e r C o m p a n y .............................. 82

F a r m e r s M utual Hail In su ra n ce C o m
p a n y of I o w a ............................................................. 48
F i r s t N a t i o n a l B a n k — C h i c a g o ........................ 10
F i r s t N a t i o n a l B a n k — L i n c o l n ...........................71
First
National
B a n k — M i n n e a p o l i s ....... 54
First
N ational
B a n k — O m a h a ................... 68
F i r s t N a t i o n a l B a n k — St. J o s e p h ..................... 69
First
National
B a n k — S i o u x C i t y .......... 85
F i r s t W i s c o n s i n N a t i o n a l B a n k ..........................27

O m a h a N a t i o n a l B a n k ............................................21

.R .
R e m i n g t o n R a n d I n c ...............................................25
R o y a l B a n k of C a n a d a .......................................... 58

H a l s e y , S t u a r t and C o m p a n y , I n c ..................... 32
H a r r i s T r u s t an d S a v i n g s B a n k ..................... 34
H e n d e r s o n , T. C., an d C o m p a n y ......................34
H o ll ey , D a y t o n a n d G e r n o n ............................... 35
H o m e I n s u r a n c e C o m p a n y ................................. 3
I
I n t e r - S t a t e N a t i o n a l B a n k .................................. 68
I o w a - D e s M oi ne s N a t i o n a l B a n k ...................92
I o w a L i t h o g r a p h i n g C o m p a n y .......................... 86
I r v i n g T r u s t C o m p a n y ........................................... 7

P
Po licyh old er's N ation al Life I n su ra n ce
C o m p a n y ......................................................
53
P r i e s t e r a n d C o m p a n y ............................................40

S
St. P a u l - M e r c u r y I n d e m n i t y C o m p a n y . . .51
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 . .26
S c a r b o r o u g h an d C o m p a n y ........... 4 4 - 7 3 - 7 8
Sh aw , M c D e r m o t t a n d C o m p a n y ................... 35
Sm it h, P o l i a n a n d C o m p a n y ............................... 42
S p a r k s an d C o m p a n y .............................................. 40

T
T e n s io n E n v e l o p e C o r p o r a t i o n ........................ 87
T o w n M u t u a l D w e l l i n g I n s u r a n c e C o ......... 52
T o y N a t i o n a l B a n k ................................................... 84

K
K a l m a n a n d C o m p a n y ........................................... 39
K o c h B r o t h e r s .............................................................88

U
U n i t e d S t a t e s N a t i o n a l B a n k — O m a h a . . . 66

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 . .................83

L a M o n t e , G e o r g e , and S o n ................................. 5
L a w r e n c e W a r e h o u s e C o m p a n y ......................61
L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . . 22
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 ............74
L i v e S t o c k N a t i o n a l B a n k — S i o u x C i t y . .6 2

W a l t e r s , C h a r l e s E ., C o m p a n y .................
.70
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 ............. 49
W h e e l o c k & C u m m i n s ............................................42
W h i t e - P h i l l i p s C o m p a n y , I n c ............................ 39

N orthw estern

Ban ke r, M a r c h ,

1949

I n th e

DIRECTOR’S
ROOM
T u rn on the F uji
He: You’re Mae W est, aren’t you?
She: I should say not. I’m June
W est—30 days w arm er than Mae.

Just Learning
Policeman (to man coming down
street at 4:00 a. m. wearing a barrel):
Say, w hat’s the idea? You a poker
player?
Man: No, but I spent the night with
some guys who are!

Time
A surveyor walking around an army
post on the edge of a western town
became acquainted with the soldier
who fired the cannon for retreat each
evening. “Do you fire this cannon at
the same time each evening?” he
asked.
“Yes,” the soldier replied. “At six
o’clock on the dot, and I time it care
fully with this watch.
I check it
every day by the jeweler’s clock, about
two blocks from here.”
Several days later the surveyor en
tered the jeweler’s shop, and engaged
the jeweler in conversation. “T hat’s
a mighty fine looking clock you have
there,” indicating the prominent time
piece in the window.
“Yes, it is a good clock; it keeps per
fect time,” answered the jeweler. “In
fact, that clock hasn’t varied a second
in two years.”
“T hat’s r e a l l y marvelous,” ex
claimed the surveyor.
“True, and we have a perfect check
on it, too,” elaborated the jeweler.
“E very evening at exactly six o’clock
they fire a cannon over at the fort, and
this clock is always right on the dot!”

Choice

New Meaning

An American woman visiting in
Paris before the war went to a bureau
which provided American men as es
corts. W hen informed that she could
engage either a Northerner or a South
erner, she asked the difference, and
was told that the Southerners were
gallant and debonair, while the North
erners were smooth talkers and ro
mantic.
“Well, then,” she said, “I’ll take a
Southerner from as far north as pos
sible!”

The teacher was explaining to the
class that a number of sheep is called
a flock and a number of quail is called
a bevy.
“Now,” she said, “what is a number
of camels called?”
The nine-year-old ad reader had a
quick answer, “A carton.”

Substitute
Mrs. Smith was sitting in the break
fast nook shelling peas when she
heard a knock at the back door. Think
ing it was her young son, she called,
“Here I am, darling.”
Silence. Then a deep voice boomed,
“This is not the regular iceman,
ma’am.”

He Voted Right
Smith (meeting Jones after many
years): Yes, our old friend Brown has
gone to his everlasting rest.
Jones: W hat? Did he get that gov
ernment job after all?

He Reads the Papers
Teacher: Willie, what is it when I
say, “I love you, you love me, he loves
me?”
Willie: That’s one of those triangles
where somebody gets shot.

/
Identification
Hunter. Now, tell me, how do you
detect an elephant?
Guide: Well, there’s always a faint
odor of peanuts on his breath.

Doubt It

W hat with the human life span in
creasing steadily, the time may come
eventually when a person may live
long enough to reach the age of dis
cretion.

Mourning Section
Orphan
Lonely baby chick (looking around
incubator at unhatched eggs): Well, it
looks as if I’m to be an only child.
Mother’s blown a fuse.

Woman (who had just sung “My
Old Kentucky Home” to a man with
tears in his eyes): Oh, are you from
Kentucky?
Man: No, I’m a musician.

H e’s Sjfoke For , Bub!
Poll Taker: Does your husband be
long to any party, lady?
Lady: Take a good look at me,
mister. I’m the party he belongs to.

Same Old Guy
Good W ill

“Has he changed much in the years
he’s been aw ay?”
“No, but he thinks he has.”
“How come?”
“He keeps saying, ‘Oh, what a fool
I used to be.’ ”

First Salesman: Gee, I had a marvel
ous day; made lots of friends for the
company.
Second Same: Me, too. I didn’t sell
anything either.

Page Mr. Webster

Trustful
One business partner (to the other,
on fishing trip): Gosh, we forgot to
close the safe!
W hat’s the difference? W e’re both
here, ain’t we?
N o r t h w e s t e r n Ba nke r, M a r c h , 1949

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

I understand its President was quite
thrifty as a child.

He: I wish I could revise the alpha
bet.
She: W hat would you do?
He: I’d put “U ” and “I” closer to
gether.

SERVICE . . . . ON THE DOT
1

Service to correspondent banks rendered by The Bankers Trust of Des
Moines is truly “ Service— on the d o t!”
It’s “ on the dot” for speed in handling transactions of every banking
nature ; “ on the dot” for credit information ; and “ on the dot” for desired
contacts.
And Des Moines is “ on the dot” as the distributing center of Iowa, too,
besides being logical headquarters for factory branch offices and manu
facturers’ representatives covering the state.
Naturally, Iowa bankers find that a connection with Bankers Trust in
Des Moines helps them give “ on the dot” service to their own customers.

BANKERS TRUST COMPANY

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

6TH AND LO C U ST
Member— Fed. Dep. Ins. Corp.

D ES M O IN E S
Member-—Fed. Res. System

FOR

CUSTOMERS

HELPFUL
CORRESPONDENT
BANKING
I

i M

i f *

Total Resources Over One Hundred Million Dollars

IOWA-DES MOINES NATIONAL BANK

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

Member Federal Deposit Insurance Corporation
111