Full text of The Northwestern Banker : May 1926 : Iowa Edition, Part I, 31st Year, Number 465

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NORTHWESTERN
U S A A T V 'E i D
DES

MOINES
Parts 1 and 2

Iowa Edition
■ 1 1 ■

■

M A Y , 1926
Showing the Customer the H eart and
Soul of Y our Bank
At Last— The F arm er Is Saved!

THE P H O T O BELOW
Congressm an G ilbert N. Haugen, of Iowa,
chairm an of the H ouse A gricultu ral C om ­
m ittee which is occupying the lim eligh t at
W ashington in the w orkin g out of a su it­
able legislative program for agricultural
sta b ility. — Photo, U n derw ood & U nderw ood.


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Federal Reserve Bank of St. Louis

■ IM B I

T H E

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

N o rth w e s te rn N atio n al

B A N K E H

M ay. 1926

DIRECTORS
F. A. C ham berlain..............P resid en t F irst N ational Bank
E. W. D eck er...... President N orthw estern N ational Bank

Life Insurance Company

C. T. Jaffray....................................President “ Soo” R ailw ay
J. A. L atta

M INNEAPOLIS, MINNESOTA

V ice President N orthw estern N ational Bank

E. L. Carpenter . P resid en t Shevlin-C arpenter-C larke Co.
B. F. N elson ............... ............. P resid en t H ennepin Paper Co.
A. F. P illsb u r y ........... Treasurer P illsb u ry Flour M ills Co.
T. F. W allace. S e c ’y-T reas. Farm ers & M echs. Sav. Bank

A

PURELY

M UTUAL,

OLD-LINE,

W ESTERN

COMPANY

O. J. A rnold__ ____ P resid en t N orthw estern N ational L ife

G O O D BO N D S
o u n d e d m 1857— 68
y e a rs a g o ; a n d d u r in g
th is
p e rio d
th r o u g h
c o n se rv a tiv e , s u b s t a n t i a l
banking THE FIRST
N A T IO N A L h as re n d e re d
an u n ex c elled serv ice to
c o rre sp o n d e n t b a n k s in th e
w est.

F

S ix ty -e ig h t years afford ample test and
supply conclu sive proof o f the sta b ility
of any in stitu tio n — particularly that of
a bank.
F. H. D A V IS
P resident

C. T. KOTJNTZE
V ice P res, and Chairman

F or Y ou r B ank's I n v e s t m e n t
Inquiries Solicited from Banks and Bankers on
In v e s tm e n t S e c u ritie s

GOVERNMENT
PUBLIC U TILITY
INDUSTRIAL
MUNICIPAL

!BONDS

CHARLES (Chick) EVANS. J r.
Investm ent Securities

1

N a tio n a l
-i B a n k o f O
----------

-

m

a h a

r I ''H E Des Moines business of Iowa
banks is invited. These banks
are thoroughly
equipped in every
department.
Valley National Bank

11 S. La Salle Street
CHICAGO
Sixteen years’ experience
in bond business

Long Distance Phone
State 6892

SIOUX C IT Y
serves one of America’s richest farming
territories, and its commercial import­
ance in the West makes a good banking
connection in this city highly valuable.
We invite correspondence regarding
our service to banks and bankers.

AND

Valley Savings Bank
DES M OINES, IOWA

V alley Bank B uilding

Established 1872
Combined Capital and Surplus

$ 1, 100, 000.00


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Federal Reserve Bank of St. Louis

R. A. CRAWFORD, P resident
D. S. CHAM BERLAIN, V ice
President
C. T. COLE. JR., V ice P r e si­
dent
W. E. BARRETT. Cashier
JOHN H. GIN SBER G , A sst.
Cashier
C. M. CORNWELL. A sst.
Cashier

^ / o u x

CAPITAL ONE MILLION DOLLARS

M ay, 1926

TH E

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

B A N K E R

meeting-place
HE N O RTH W EST
A RAPIDLY d e v e lo p in g N o rth w e s t d e m a n d s a
a b e tte r sh o w place fo r its wares*
Its progressive m en and w om en require a larger, m ore co n ­
venient and suitable m eeting place.
E v e r y c o n v e n i e n c e is
p rovid ed for c o n v e n tio n
success: Seating capaci­
ty, 1 0 ,5 4 5 ; sp ace for e x ­
h ib itio n s, 8 1 ,0 0 0 square
feet; c o m m itte e a n d sec­
tio n a l m e e t i n g r o o m s ;
n o stairw ays—easy slo p ­
in g ram ps; com fort— all
air w a sh e d a n d regu lat­
ed to co n sta n t tem p era­
ture o f 7 0 degrees; lo u d
speakers; te le p h o n e an d
t e le g r a p h a c c o m o d a ­
t io n s ; m o t i o n p ic tu r e
facilities; large stage; 5 0
d r e s s in g r o o m s ; p ip e
organ.

M inneapolis, in the Land o ’Lakes and the N o r th w e st’s
m etropolis, is an increasingly popular choice for national
as w ell as state and territorial gatherings. T hese conven­
tion guests m ust be still better cared for.
T o m e e t th ese n eed s M in n e a p o lis is b u ild in g its n ew
‘‘tow n hall”— a m agnificent m unicipal auditorium costing
$ 3 ,0 0 0 ,0 0 0 . It w ill be th e b est and m o st com pletely
equipped structure o f its kind in this section. It w ill rank
w ith the best auditorium s in the entire country.
B uiit to m eet today’s needs, this n ew m eeting place for the
N orthw est is also built for tom orrow . A s B ankers for the
G reat N o rth w est Since 1872 w e suggest that our n ew audi­
torium is a sign— on e o f m a n y — o f progress and o f our
high expectations for the future.

NToithwestem National Bank.
‘illinneapoUs

dffiliated with the
MINNESOTA LOAN AND TRUST CO.

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

Combined, Resources
^ 1 0 5 ,0 0 0 ,0 0 0 . ~

3

4

THE

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

B A N K E R

M ay , 1926

m BBÊÊm m ÊÊm BBÊm Êam m am ÊÊKam ÊÊÊmaamÊHmmMKÊnmmBBauB

N orth w estern

banker

DES M O IN E S
The Oldest Financial Journal W e s t o f the Mississippi

T hirty -first Y ear

CONTENTS FOR MAY

N umber 465

P age
Across from the P ublish er.............B y Clifford De P u y
F ron tisp iece, Grant M cP herrin....................................... .
“ In This I s s u e ” ............................................
The H eart and Soul o f Your B an k ........ B y P. C. L ien
A t L ast— the Farm er Is S a v e d !......B y Roscoe M acy
$1,000,000 N ew B usiness in 17 D a y s...............................
B y Wm, H. M aas

6
8
9
10
11

P ersonal P aragraphs..................................................

32

N ebrask a N e w s...................................................

Bonds and In v estm en ts...........................................

37

M in nesota N e w s ...........................................................

67
71

12

Jo y s and Sorrows............................ B y J. M. D inw id die

P age
13

Eighteen “ Brain T easers” ..................................................

15

P reach in g L ife In su ran ce......................B y A. R. W olf

17

W ith “ C h ick ” E v a n s...........................................................

lg

“ N ew s and V ie w s ” ........................... .........................

21

“ In the D ir e c to r s’ R oom ” ..................................................

27
63

Insurance S e c t io n ......................................................

55

N orth D ak ota N e w s....................................................

B ankers and Their W an ts......................................

60

Iow a N e w s .........................................................

South D ak ota N e w s..............................................

61

In d ex to A d v ertisers....................................................

73
90

DE PUY PUBLICATIONS AND THEIR TERRITORY
N orthwestern B anker

T rans -Mississippi B anker

DES M O IN ES

K A N S A S CITY

Mid-Continent B anker

I nsurance Magazine

S A IN T LOUIS

K A N S A S CITY

U nderwriters R eview

S outhwestern B ankers J ournal

DES M O IN ES

FORT W O RTH

I owa B ank D irectory
DES

L ife I nsurance S elling

M O IN ES

ST.

L O U IS

T H E N O R T H W E S T E R N B A N K E R , P ublished by D e P uy P ublishing Co., I nc ., Capital S tock, $100 000.00
555 S even th S tr eet, D es M oines.
C liffo rd D e P u y , Publisher ; G. A . S n id e r , A ssociate Publisher ; R . W . M o o r h ea d , Editor.
R ex V . L e n t z , A dvertising Director.
H. H. H a y n e s , A ssociate M anager.
M in n e a p o l is O f f i c e : Frank S. Lew is, 840 Lumber E xchange Bldg., Phone Main 3865. C h ic a g o O f f i c e : Wm H Maas 1221 Fir<a
N ational Bank Bldg., Phone Central 3591. N e w Y ork O f f i c e : Philip J . Syms, 150 N assau St., Phone 4836 Beekrmin. ' S t . L o u is O f f i c e Donald H. Clark, 408 Olive St., Phone Mam 1342. K a n s a s C it y O f f i c e : Glen D. M athews, 405 Ridge Bldg., Phone H arrison 5857.
F ort W o r t h , T e x a s , O f f i c e : H. Lawson Hetherw ick, 409 F. & M. Bank Bldg.
S a n F r a n c isc o O f f i c e : George Wight, 600 Baldwin Bldg.
Entered as second class matter at the Des moines postoffice

Subscription

Official P u blication of
THE SOUTH D /^ O T A B A N K ER S ASSO CIATION
THE IOW A F ARx._ «IORTGAGE ASSO CIATION
THE IOW A BOND D E A L E R S ASSO CIATION

Ritiri


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Federal Reserve Bank of St. Louis

Rates, $ 3 .0 0

per year; 50

cents per copy

TH E

M ay, 1926

<$ N$

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

B A N K E R

<$><$>< £ N > € K > € K > < ^

Helpful Hands of a Great Service
HE coming of an American Express courier to this American mother and
her daughter, in the confusion on the dock at Havre, has changed their
utter despair into ecstasy o f joy. Perplexed, in trouble, speaking no French,
they were hopeless. His good American words o f cheer, his courtesy, his assurance that it was really nothing he could not easily fix—they w ill never forget.

T

Scenes like this are h appening every day at
the principal foreign ports. A ny o n e o f a
th o u sa n d things m ay h a p p e n to tro u b le the
u n in itiate d traveler. B u t n o t one o f th em
th e h elp fu l h an d s o f A m erican Express Ser­
vice ca n n o t an d does n o t relieve.
T his personal Service to travelers in foreign
lan d s—endless in its variety, co n stan t and
efficient—has w on th e w orld’s good will for
th e A m erican Express C om pany. T h is Ser­
vice is n o t sold. It ca n n o t be bought. I t is

freely given in th e nam e o f th e A m erican
Express.
Banks everyw here, appreciating th e value
o f this Service, naturally assure it to th e ir
traveling p atro n s to th e fullest extent w h en
they sell th em A m erican Express Travelers
C h e q u e s. T h e p r o te c tio n w h ic h th e s e
C heques give th e traveler against th e loss
o r th e ft o f his fu n d s—an d th a t they are
spendable a n d acceptable everyw here—are
well established facts.

American Express Co.
6$Broadway, New York
OFFICES IN ALL THE PRINCIPAL CITIES


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Federal Reserve Bank of St. Louis

5

6

TH E

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

B A N K E R

M ay , 1926

ACR O SS TH E D ESK FROM TH E PU BLISH ER

A F E W d a y s a g o I ta lk e d
w ith a f o r m e r b a n k e r
w h o w a s d is c h a r g e d f ro m h is
i n s t itu ti o n b e c a u s e o f em b e z ­
z le m e n t.
A s th is y o u n g m a n u n f o ld e d
to m e th e s to r y o f h is w r o n g ­
d o in g a n d h is a t t e m p t to g e t
on h is f e e t a g a in , I t r i e d to
a n a ly z e th e c a u se s o f h is
d o w n fa ll.
H e h a d com e w ith th is b a n k
w hen he w as a y o u n g m an a n d
h a d r is e n to a p o s itio n o f r e ­
s p o n s ib ility b u t h is s a la r y w a s
su c h t h a t h e w a s u n a b le to m a in ta in th e so c ia l
p o s itio n w h ic h th e b a n k a p p a r e n tly d e m a n d e d of
him . T o m a in ta in h is p o s itio n in so c ie ty h e p la y e d

th e m a r k e t. A s a r e s u lt, he
to o k $25,000 o f th e b a n k ’s
m o n e y a n d lo s t it.
T h is y o u n g m a n is n o w
m a k in g g o o d in h is n e w w o rk .
H e h a s th e a b ility to su c ce ed .
A s a r e s u lt o f h is w ro n g d o in g
th e b a n k in g w o rld lo s t a g o o d
m a n a n d th is p a r t i c u l a r b a n k
lo s t a g o o d e x e c u tiv e w h ic h
th e y c o u ld h a v e k e p t if h e h a d
b e e n p r o p e r ly p a id . B a n k d i ­
r e c to r s s h o u ld g iv e c a r e f u l
c o n s id e r a tio n to th e s u b je c t
of s a la rie s , b e c a u s e th e b a n k
e x e c u tiv e o r e m p lo y e e w h o is u n d e r p a id w ill
so o n er o r la te r cease to be a n asset to h im se lf o r to
h is b an k .

The B usiness Outlook
" P O L L O W I N G th e r e c e n t tu m b le o f p r ic e s o n
th e N e w Y o rk S to c k E x c h a n g e th e r e w e re
m a n y w h o w e re f e a r f u l t h a t w e w e re e n te r in g a
p e r io d o f b u sin e ss d e p re ssio n .
I f w e w e re , w e w o u ld fin d t h a t th e r a te s f o r
m o n e y w o u ld be s tiff e n in g a n d t h a t c r e d it w o u ld
n o t be as r e a d ily a v a ila b le as i t is a t th is tim e .
T h e ea se in th e m o n e y m a r k e t is th e b e s t in d i­
c a tio n w e h a v e t h a t o u r p r e s e n t p e r io d of g o o d
b u sin e ss w ill c o n tin u e .
“ N o p e r io d o f b u s in e s s d e p re s s io n in th is c o u n ­
t r y , ” sa y s th e H a r v a r d E c o n o m ic S e rv ic e , “ h a s
b e e n p r e c e d e d b y a p e r io d o f e a sy m o n e y c o n d i­
tio n s . S u c h c o n d itio n s n o r m a lly fo llo w a p e r io d
o f d e p re s s io n — th e y do n o t u s h e r i t in . W e b e ­

lie v e, th e r e f o r e , t h a t th e re c e s s io n n o w on th e
w a y , lik e t h a t w h ic h d e v e lo p e d in th e s p r in g of
e a c h o f th e la s t th r e e y e a rs , w ill p r o v e o n ly a n
i n te r r u p ti o n o f th e u n u s u a lly lo n g p e r io d of g e n ­
e r a l g o o d b u s in e s s w h ic h h a s c o n s titu te d th e p r o s ­
p e r it y p h a s e of th e p r e s e n t b u sin e ss c y c le .”
T h o se w h o h a v e s tu d ie d th e s to c k m a r k e t r e a l ­
ize t h a t th e ease in m o n e y h a s b e e n r e s p o n s ib le
f o r m o st o f th e s p e c u la tin g . T h e re c e s s io n w a s
a n a t u r a l r e s u lt o f to o m u c h s p e c u la tio n . W ith
th e s to c k m a r k e t in a b e t te r b a la n c e , a n d g e n e r a l
b u sin e ss on a s o u n d b asis, w e lo o k f o r w a r d w ith
c o n tin u e d c o n fid e n ce to g o o d b u s in e s s d u r in g th e
b a la n c e of 1926.

G uaran tee Fund “in the re d ”
r p O P R O V E h o w s u c c e s s fu lly (? ) th e d e p o s it
g u a r a n te e f u n d o p e ra te s , th e r e p o r t co m es
fro m K a n s a s t h a t th e D e p o s it G u a r a n te e F u n d in
t h a t s ta te is $4,000,000 “ in th e r e d . ”
I n K a n s a s th e r e a r e $4,000,000 o f o u ts ta n d in g
c e rtific a te s , r e p r e s e n tin g th e lo sse s in f a ile d
b a n k s , w h ic h lo sses a r e to be p a id b y th o s e b a n k s
s till o p e r a tin g u n d e r th e G u a r a n te e P la n .


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Federal Reserve Bank of St. Louis

I n a r e c e n t d e c isio n h a n d e d d o w n b y th e
S u p re m e C o u rt, th e C o u r t h e ld t h a t th e b a n k m a y
w ith d r a w f ro m th e b a n k g u a r a n te e f u n d b y lo s ­
in g th e b o n d s on d e p o s it w ith th e s ta te , a n d th u s
r e p u d ia te th is $4,000,000 o f o u ts ta n d in g c e r tif i­
c a te s.
T h e e x e c u tiv e c o m m itte e of th e s ta te b a n k e r s ’
a s s o c ia tio n h e ld a se ssio n , f o llo w in g th e d e c isio n

M ay, 1926

TH E

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

o f th e C o u rt, a n d a d o p te d a r e s o lu tio n in w h ic h
th e y s a id : “ W e re c o m m e n d t h a t th e g u a r a n te e d
b a n k s s ta n d b y th e g u a r a n te e la w u n t i l a ll le g a l
c la im s a r e p a id in f u ll a n d u n t i l th e le g is la tu r e
s tr e n g th e n s a n d im p ro v e s th e la w , o r r e p e a ls i t . ”
T h e g u a r a n te e la w in K a n s a s w a s e n a c te d in
1909, a n d d u r in g t h a t p e r io d h a s h a d a m p le tim e
to p r o v e its w o r th o r th e la c k of it.
T h e f u n d a m e n ta l w e a k n e s s in a ll d e p o s it g u a r ­
a n te e la w s h a s b e e n th e f a c t t h a t w h e n th e b u r ­
d e n b ec o m e s to o g r e a t u p o n th e b a n k s r e m a in in g
in th e p la n , t h a t th e y e ith e r h a v e to clo se th e ir

B A N K E R

d o o rs b e c a u s e of h e a v y a s se ss m e n ts , o r h a v e to
w ith d r a w f ro m th e p la n to e sc a p e th e s e a s s e s s ­
m e n ts.
W h ile t a lk in g w ith a p r o m in e n t b a n k e r in
T e x a s r e c e n tly , h e s a id t h a t th e r e w o u ld b e a
n u m b e r o f b a n k s clo se in h is s ta te f o r n o o th e r
re a s o n th a n t h a t th e y c o u ld n o t p a y th e h e a v y
a s s e s s m e n ts u n d e r th e g u a r a n te e f u n d p la n w h ic h
th e y w o u ld h a v e to p a y to ta k e c a re o f lo sses o f
b a n k s in th e ir s ta te w h ic h h a d fa ile d .
N o p la n w h ic h c o n tin u e s to p u t a p r e m iu m on
g o o d b a n k in g , c a n lo n g s u r v iv e !

B ranch Banking
S T H IS iss u e o f th e N o r th w e s te r n B a n k e r
g oes to p re s s , th e S e n a te h a s n o t y e t v o te d
u p o n th e b r a n c h b a n k in g b ill w h ic h w a s p a s s e d
b y th e H o u se on F e b r u a r y 4, 1926.
A s th e b ill p a s s e d th e h o u se i t c a r r ie d w ith it
th e H u ll A m e n d m e n t. T h e p u r p o s e of th e H u ll
A m e n d m e n t w a s to co n fin e b r a n c h b a n k in g to th e
c itie s a n d s ta te s in w h ic h i t is to d a y p r a c tic e d .
T h e S e n a te c o m m itte e on b a n k in g a n d c u r r e n c y
m a d e n u m e ro u s c h a n g e s in th e b ill as i t ca m e
fro m th e H o u se , a n d e lim in a te d th e H u ll A m e n d ­

A

m e n t.
T h e H u ll A m e n d m e n t r e m o v e d th e m o tiv e
w h ic h p r o m p te d in f lu e n tia l s ta te a n d n a tio n a l
b a n k s to c o m b in e f o r th e p u r p o s e o f c h a n g in g
s ta te la w s n o w p r o h ib itin g b r a n c h b a n k in g . T h e
s ta te s s till h a v e th e r i g h t to le g is la te a s th e y
p le a se , a n d a ll t h a t th e A m e n d m e n t d o es is to r e ­
m o v e th e m o tiv e f o r su c h le g is la tio n u p o n th e

p a r t of a fe w la r g e b a n k s w h ic h w o u ld p r o fit b y
su c h c h a n g e s .
T h e H u ll A m e n d m e n t to th e M c F a d d e n B ill
w o u ld a s s u re th e c o n tin u e d e x is te n c e o f o u r in d e ­
p e n d e n t A m e r ic a n b a n k in g sy ste m , u n d e r w h ic h
A m e r ic a n b u s in e s s h a s g r o w n a n d p r o s p e r e d sin c e
o u r n a tio n w a s e s ta b lis h e d .
B r a n c h b a n k in g h a s b e e n r e p e a te d ly o p p o se d
b y th e r e s o lu tio n s o f th e c o n v e n tio n s o f th e
A m e r ic a n B a n k e r s ’ A sso c ia tio n , n o ta b ly , 1922 in
N e w Y o rk , a n d also in 1924. S ta te A ss o c ia tio n s
h a v e lik e w ise p a s s e d re s o lu tio n s o p p o s in g it, a n d
it is to b e h o p e d t h a t th e H u ll A m e n d m e n t w ill
be in c lu d e d in th e b ill, n o w b e fo re th e S e n a te .
B r a n c h b a n k in g is n e i th e r n e c e s s a r y n o r d e s ir ­
a b le in o r d e r to c a r r y o n th e b a n k in g b u s in e s s in
th e U n ite d S ta te s , o n a b a s is w h ic h is s a tis f a c to r y
to c u s to m e rs a n d s to c k h o ld e rs a lik e .

Telephoning to E ngland

N

E W in s tr u m e n ts a n d n e w in v e n tio n s a r e
g r a d u a lly b r in g in g th e w o r ld c lo se r t o ­
g e th e r . I t is n o w a n n o u n c e d b y th e A m e r ic a n
T e le g r a p h a n d T e le p h o n e C o m p a n y t h a t w e w ill
so o n b e a b le to te le p h o n e to E n g la n d .
W e w ill be ab le to sit in o u r hom e o r a t o u r
b a n k a n d w ith o u r o r d in a r y te le p h o n e i n s t r u ­
m e n t g e t a te le p h o n e c o n n e c tio n w ith a n y te le ­
p h o n e in E n g la n d . T h is is to b e a c c o m p lis h e d b y
th e u se of w ire a n d w ire le s s te le p h o n y , a n d w ill
b e th e g r e a te s t s te p in c o m m u n ic a tio n w ith E n g ­
la n d sin c e C y ru s W . F ie ld la id th e f irs t te le g r a p h
c a b le .


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Federal Reserve Bank of St. Louis

T h is n e w u se o f th e te le p h o n e s im p ly m e a n s
t h a t o u r tr a d e r e la tio n s a n d o u r b u s in e s s c o n ta c ts
w ill be m a d e m o re r e a d ily a n d m o re q u ic k ly w ith
E n g la n d , a n d g r a d u a lly w ith th e r e s t o f th e co n ­
t in e n t as tim e g o es on, a n d in s te a d of f in d in g o u r ­
se lv e s a n is o la te d n a tio n w e w ill fin d o u rs e lv e s a
n e ig h b o r a n d a f r ie n d to th e r e s t o f th e n a tio n s
o f th e w o rld .
T h is o p p o r tu n ity to in c re a s e a n d d e v e lo p o u r
in te r n a tio n a l tr a d e is of r e a l s ig n ific a n c e to e v e ry
b a n k e r w h o is lo o k in g f u r t h e r a h e a d th a n to m o r ­
ro w .

7

ff

GRANT M cPH ER R IN
President, Central
President,


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Federal Reserve Bank of St. Louis

State

State

Bank

B ank,

D ivision,

Des Moines
A.

B.

A.

Brings H onor to Iowa

IN
THIS
ISSUE

H E A m erican B ankers A ssociation
ju stly boasts of a m em bership com­
prised of more th a n 23,000 banking in sti­
tutions. I t is a g rea t organization, yet
it is in te restin g to note th a t out of th a t
roster, the sta te banks, considered as sep­
a ra te from national and savings banks,
com prise by f a r “the largest and strong­
m akes uniform laws fo r n atio n al banks ;
est se p arate division of the A m erican
the 48 states legislate fo r sta te banks.
B ankers A ssociation,” to talling a mem­
I t is im p o rtan t, th erefo re, th a t th ere be
bership of 11,855. I t has been said th a t
some cen tral body m aking a study of
“the S tate B ank D ivision m ay fa irly be
those laws, suggesting u n ifo rm legisla­
designated as the pow erful country hank
tion, all of w hich helps to keep more u n i­
arm of the A m erican B ankers A ssocia­
fied the sta tu to ry ad m in istratio n of state
tion. I t has alw ays cham pioned and still
banks.
continues to defend the cause of these
On the other hand, th ere is consider­
country banks.”
able fed eral legislation applicable to
Cycles of years bring on ever changing sta te banks, no m a tte r w here those banks
problem s. The officers of the S tate Bank
m ay be located in the nation. The S tate
Division today find them selves engrossed
B ank Division, through the p are n t o r­
in handling such problem s as the fo l­ ganization, finds much in th a t direction
low ing :
to w hich it can address itself.
1.
Continued encouragem ent to efforts In th e 10 years of existence of the
fo r the developm ent of co-operative farm
S tate B ank Division of th e A m erican
m arketing facilities along sound eco­ B ankers A ssociation, its presidency has
nomic lines.
come to Iowa twice; in 1917, when E. D.
2.
Developm ent of a b e tte r u n d ersta n d ­ H uxford, p resid en t of the Cherokee S tate
ing and relatio n sh ip betw een sta te banks
B ank a t Cherokee, served as its execu­
and the F ed eral Reserve System .
tive head, and again this year, when
3.
C o-ordination of efforts made to in­ G rant M cPherrin, p resid en t of the Cen­
crease the efficiency of sta te bank super­ tr a l S tate B ank of Des Moines, fills th a t
vision.
em inent position. I t is an honor of no
4.
Co-operation w ith the B e tte r B usi­ small dim ension when as has been p rev i­
ness B ureau and other agencies in a n a ­ ously said, the S tate B ank D ivision com­
tion wide cam paign to educate the gen­ prises more th an one-half of the m em ber­
eral public in the fundam entals of sound
ship of the entire A m erican B ankers A s­
investm ents.
sociation. I t has been said, w hich is u n ­
5.
Co-operation w ith the A m erican doubtedly true, th a t it is the m ost pow er­
B ankers A ssociation and other divisions fu l single division in the A m erican B an k ­
of the p a re n t organization in solving ers A ssociation. M r. M cP herrin as p resi­
problem s of m utual interest.
dent of the S tate B ank Division becomes
ex-officio a member of the A d m in istra­
A nother problem th a t has engaged the
tio n Committee, composed of ten officers
atten tio n of officers of the S tate Bank
of the A m erican B ankers A ssociation,
D ivision, has been a study of the g rea t
diversity of the sta te laws governing and th u s has a com manding voice in the
affairs of A m erica’s g reatest and m ost
sta te banks. The increase of those laws
pow erful o rganization—the A m erican
in the several states has been surprisingly
The Executive
great. The general counsel of the A m eri­ B ankers Association.
Council of the A m erican B ankers Asso­
can B ankers A ssociation a t the request
ciation will hold its sp rin g m eeting at
of the S tate B ank Division, has recently
com pleted a digest of all of the laws of P in eh u rst, N o rth Carolina, M ay 3-6,
the various sta te s dealing w ith the ad ­ 1926; Mr. M cP herrin is p lan n in g to a t­
tend th a t conference.
m in istratio n of sta te banks. Congress

T


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Federal Reserve Bank of St. Louis

W ith Our Subscribers

I

N

E V E R Y consecutive issue, T h e
N orth w estern B a n k e r strives to be­

come closer and closer to its readers.
Hence, it is w ith great pleasure th at this
magazine receives such commendation as
this letter from C. M. M agoun, cashier of
the Sioux N ational B ank of Sioux C ity:
“W e believe our subscription to N o r th ­
w este r n
B a n k e r is the best $3.00
investm ent an Iow a b anker can make.
Officers and employes of this bank read
it carefully every m onth and feel it
gives us excellent in fo rm atio n and clear
analysis of bank conditions and serves
as a clearing house fo r b etter banking
ideas.”
T. R. W a tts, presid en t of the Citizens
B ank of G rand Ju n ctio n , Iowa, also
sends in a w ord of appreciation :
“I w onder th a t you can give your
subscribers so much real banking in fo r­
m ation fo r th e sm all subscription charge
on T h e N o r th w estern B a n k e r . Every
b anker should have this m agazine on his
desk each m onth. W e find a w orld of
in fo rm atio n in each issue th a t cannot
be obtained elsewhere and our en tire
b anking force sends you this w ord of ap ­
preciation.

Legal Contest, Page 15
N P A G E 15 of this issue, N or th ­
w estern B a n k e r readers will find
one of the biggest features of the month
under the heading, “ Can You Shoot ‘P a r ’
on These E ighteen B rain Teasers?” Also,
w ith th e questions th ere is an announce­
m ent of a real contest w ith cash prizes
fo r the best answ ers to the legal ques­
tions given thereon.
T h e N orth w estern B a n k e r invites
every b anker subscriber, young or old,
assista n t cashier or chairm an of the
board, to th in k out th e answ er to each
of these questions and to send in to this
m agazine th e ir answers. E very question
involves some sim ple legal points in
every-day banking, and every read er who
studies them will be well repaid fo r his
efforts. M oreover, you may win a prize!

O

10

THE

NORTHWESTERN

BANKER

May, 1926

Making Your Depositors See the Heart and
Soul of Your Bank
The banker owes it to his depositors to help get the ^mystery11 of banking
out of their minds
years ago, a person would
be a t lib erty to say th a t less than two
per cent of the people living in the
sm all farm in g com m unities were able to
u n d erstand a bank statem ent thoroughly,
and those two p er cent h ard ly glanced at
a statem ent from the bank. A ll of them
had a fa ir idea and knew which bank
had the largest business by counting the
number of bank help behind the counter,
but w hether or not the bank showed a
healthy financial statem ent, they knew
nothing and cared less. B ank failures
were unheard of, and the p ro sp erity of
the bank depended largely upon the re ­
puted w ealth of the cashier, who gener­
ally owned ninety p er cent or more of
the stock. The bank’s letterheads were
p rin te d up to read som ething like t h i s :
P. A. BRO W N (fa th e r of the cashier—
lives back in New Y ork S ta te ), P R E S I­
D E N T ; J . A. BRO W N (brother o f the
cashier), V IC E P R E S ID E N T ; M. A.
BROW N (the ca sh ie r’s w ife), V IC E
P R E S ID E N T ; I. M. BRO W N (him self),
if t e e n

F

B y P. C. L ie n
Cashier, F arm ers & M erchants B ank
Revillo, S o u th D akota
C A S H IE R ; I. M. BROW N, JR . (his son,
who collected sight d ra fts and w rote up
the rem ittan ce a fte r school and on S a t­
u rd ay s), A SS IS T A N T C A S H IE R . These
five and no more rep resen ted the staff of
officers, the d irecto rate and the stock­
holders— there were no others.
E very one knew th a t the Browns were
w ealthy; first, because they owned sev­
eral of the best farm s in the com m unity
and the m ost expensive house in tow n;
second, because they owned the bank.
Borrowed money, bills payable and re­
discounts w ere unknown, and receivers
and exam iners in charge were stran g ers
to B row n ’s community.
D uring those days, the Browns never
m ailed out th e ir statem en t of condition,
because it was a needless expense. W hen
they received a Call, they had th e ir finan­
cial statm en t p rin te d on the back page of

the home paper, so as to keep th e ir com­
p etito r advised w hether th eir deposits
were growing or sliding down hill. They
could have saved th eir p rin tin g bill by
w alking across the street and exchanging
statem ents w ith th e ir neighbor bank.
No one else read the statem ent, or knew
w hat it m eant.
Even in larg er com munities, where the
custom ers received a carefully compiled,
lithographed bank statem en t three or
fo u r tim es each year, no one gave them
b ut a cursory glance. Should you ques­
tion the lawyer, doctor or business m an
in larg er places and ask them the size of
th e ir bank, nine tim es out of ten they
would probably answ er by saying, ‘ ‘ Oh, I
guess The F irs t N ational has about a
hundred thousand dollars in deposits— or
is th a t th e ir ca p ita l? They m ail me a
statem en t every once in a while, but
really, you know I d o n ’t pay any a tte n ­
tion to th e m .”
B ut today, we are satisfied th a t a t least
(Continued on page 64)

AN UNDERSTANDABLE STATEMENT OF THE CONDITION OF THE FARMERS
AND MERCHANTS BANK, REVILLO, SOUTH DAKOTA
At the close of business Decem ber 31, 1925, as called by S u p erin ten d en t of B anks
RESOURCES
We own a tw o-story brick building, v au lts, safes,
furniture, fixtures and equipm ent w hich could
not be replaced for less than $12,000 and w hich
is co n serv a tiv ely valued and carried on our books
in the am ount o f................................................................. $ 7,000.00
W e have loaned to our custom ers for use in their
business and farm in g operations on approved se ­
cu rity the sum o f ............................................................... 63,558.42
W e own School, C ounty and Tow nship W arrants
drawing 7 per cent interest in the amount o f...........
178.50
Our expense in operatin g and in terest paid to cus­
tom ers for the year am ounts to ................................... 10,820.33
Through error, som etim es custom ers overdraw their
checking accounts for a few days. A t this date,
the to ta l am ount o f these overd rafts w ere.............
N one
We own and hold F irst R eal E sta te
M ortgages on land in Grant and
D euel counties, b ein g a sm all fr a c ­
tion o f the appraised value and
w hich to ta ls ................................................. $18,500.00
W e hold n otes again st our custom ers,
and w hich are due on demand. These
notes can be collected at any tim e,
w henever necessary, and am ount to 16,642.21
W e own Bonds, w hich can be converted
in to cash w ith in 24 hours in the
am ount o f...................................................... 50,000.00
Our cash on hand in our vau lts and
cash in other banks subject to our
withdrawals, totals.................................... 40,872.03
T otal cash on hand and quick a ssets....................$127,014.64
Total o f Resources


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Federal Reserve Bank of St. Louis

.$208,571.89

L IA B IL IT IE S
Our stockholders have paid in to be
used as a w orking capital for this
bank the am ount o f ..................................$20,000.00
Surplus and Profits— This item repre­
sents the surplus paid in by the
stockholders and part o f the earn­
ings o f th is bank since its organiza­
tion w hich the stockholders have not
drawn. The item am ounts to ............. 17,298.64
There is a stock lia b ility on th is stock
in the am ount o f .................... 20,000.00
T otal .........................................................$57,298.64
The above to ta l am ount represents
your m argin o f sa fe ty , a fte r dedu ct­
ing the expenses as above enum er­
ated, and can be used to protect the
bank again st any possible loss which
m ight occur. The above am ounts are
carried on our books as follow s:
C apital S to c k ....................................................................... ..... $ 20,000.00
Surplus and U n d ivid ed P rofits........................................... 17,298.64
D ep osits— R epresen tin g over 500 custom ers, your
friends and neighbors in this community who
have expressed their confidence and opened a
connection w ith th is b an k ............................................. 171,273.25
Total o f L ia b ilitie s..................................................... $208,571.64

M ay, 1926

T H

DIVERSIFICATION
“In stea d o f tryin g to learn a ll there
is to k n o w ab ou t tw o or th ree th in gs,
le t the farm er learn a little ab ou t a lot
o f th in g s. H e sh ou ld take a lea f out of
th e b o o k o f the in su ran ce agen t, for
ex a m p le.
In su ran ce, lik e cattle fe e d ­
in g , has its u p s and d ow n s.
It is a
w ell-k n o w n fact that th e b est in su ran ce
a gen ts carry to ol-k its ab ou t w ith them ,
so that, w h en the in su ran ce b u sin ess is
d u ll, th ey can m ak e up the d eficien cy
by g rin d in g scissors on the sid e. T h e
b o n d sa lesm a n , lik e w ise , m ust b e ab le
to sh ave a cu stom er, or cut h is hair,
sh o u ld h is b o n d s fa il to strik e th e p ro s­
p ect’s fancy. L et th e farm er go and do
lik e w is e .”

H E S E articles have now been ru n ­
ning since Ja n u ary , and the bank­
ing field has been quite thoroughly
covered, so th a t there is alm ost nothing
fu rth e r to be said on th a t subject. He
(if any) who has read this page f a ith ­
fu lly since the first of the year has come
to realize probably fo r the first tim e in
his life, w hat a sim ple m a tte r th is busi­
ness of banking really is. H e has learned
how to w ind his bank up in the morning,
and then go off and play golf all day, to
find on retu rn in g in the evening th a t the
in te rest is still accruing a t the same old
ra te on his past-due notes.
H aving, th erefore, exhausted the possi­
bilities of banking as a topic of discus­
sion, the tim e has come to tu rn our a t­
tention otherw ise. W e have arrived at
th a t point which is reached sooner or
la te r by all public speakers, tobaccochewers, w riters, and other reform ers.
W e m ust now proceed to save the poor
farm er. H aving restored middle w estern
banking to a firm basis, we tu rn n a tu r­
ally to the evangelization of agriculture.
I t should be understood a t the outset
th a t the am bitious young farm er-saver
of today faces a difficult situation. The
farm er has already been saved so m any
tim es and in so m any different ways th a t
it is a p ractical im possibility fo r even
the m ost en terprisng evangelist to origi­
nate a new plan of farm er-salvation. This
article will be confined, therefore, to a
discussion of things th a t have already
been said. W e shall choose some of the
more im p o rtan t ideas and statem ents
th a t have em anated from our d istin ­
guished S ecretary of A griculture and
other em inent savants and students of
the theory and practice of ag ricu ltu ral
economics.
“ Agricultural Lands are Over-valued.
W e consum ers cannot be expected to pay
a re tu rn upon the w atered capitalization
of corn belt farm s.” This is the gist of
a statem ent I have read h alf a dozen
tim es or more in leading m agazine a r ti­
cles. Now, w hat could be sim pler than
th a t ? I f F arm er Brown, who owns 160
acres of unencum bered land, balances
his books a t the end of the y ear to find
th a t he has $122.37 le ft a fte r paying

T


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Federal Reserve Bank of St. Louis

E

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

B A N K E R

11

AT LAST
THE FARMER
IS SAVED!
By Roscoe M acy
“Too Many Farmers Attempt to Oper­
taxes, insurance and a reasonable wage
to him self and providing fo r rep a irs and
ate on Insufficient Working Capital.”
depreciation, then his q u arte r section is
This statem en t is often seen in close con­
w orth approxim ately $15 p er acre. I f
ju n ctio n w ith the one we have ju s t con­
the income is only $22.37 the land is sidered, and they m ight seem to be con­
w orth about $2.50 per acre, and in either
trad icto ry to one another. P erh ap s they
case F arm er Brown has nothing to kick
are, in which case those who deny the
about, since he has received a good av er­
first will agree w ith th is one, and so will
age re tu rn upon his capital investm ent.
U ntil one has read some clear and con­ anyone else. W e bankers know how it is.
Since H enry Sm ith does not have suffi­
crete statem en t of the actual situ atio n
cient
w orking capital, it is u nsafe fo r the
such as th is one, he can never expect to
bank to lend him w orking capital, and
get a t the crux of the farm problem . L ast
m onth, I assisted in m aking out the in ­ we m ust th erefo re use our fo u r percent
come ta x rep o rt of a custom er who owns tim e deposits to buy five percent bonds
$22,000 in bonds, m ortgages and good and p ray fo r a rise in the bond m arket.
Possibly the well-known tendency of
notes receivable, a city residence which
ren ts fo r $35 per m onth and some 800 capital to seek profitable em ployment has
acres of first-class fa rm land clear, lo­ som ething to do w ith the fa c t th a t the
cated in Ja sp e r county, Iowa. H is chil­ average farm er has too little w orking
dren, being grown, he was en titled only capital. In any case, the indictm ent be­
ing a tru e one, we should proceed to do
to the exem ption of a head of a fam ily ;
away a t once w ith all farm ers who have
yet we found, a f te r some figuring, th a t
he had no income tax to pay. Now, he an insufficient supply of w orking cap ital
had accum ulated all his p ro p erty d uring -—since th ere is no w ay to increase the
his lifetim e, through in d u stry and econ­ supply w ith safety . I t is tru e th a t w ith ­
in th irty days a fte r th is purpose was ac­
omy, so I was certain th a t he had not
complished, h alf the population of New
dissipated a possible good income through
m ism anagem ent. I would th erefo re have Y ork City, fo r example, would be sta rv ­
ing, b u t w hat of th a t? W hom are we
fe lt sorry fo r him, had I not had in m ind
the foregoing analysis of the fa rm situ a ­ saving here, anyhow— the farm er or the
New Y orker?
tion. W ith th a t in mind, I review ed the
repo rt. The monies and credits of $22,“The Farmer Should D iversify.” I n ­
000 were producing an average of 5%
stead of try in g to learn all there is to know
p er cent. The city p ro p erty accounted
about two or three things, let him learn a
fo r a gross re tu rn of $420 d uring the
little about a lot of things. H e should take
year.
a leaf out of the book of the insurance
I
saAv alm ost a t once w hat a fo rtu n a te agent, fo r example. Insurance, like cattle­
feeding, has its ups and downs. I t is a
farm er he w as; we could even figure him
a re tu rn of ten per cent on his monies well-known fact, then, th a t the best insur­
ance agents carry tool-kits about w ith
and credits, and still he would have come
them, so th a t when the insurance business
through his farm in g operations of the
is dull, they can make up the deficiency by
year w ithout losing a p e n n y ! I trie d to
explain to our custom er th a t his land was grinding scissors on the side. The bond
w orth only tw enty tim es w hat it p ro ­ salesman, likewise, must be able to shave
a customer, or to cut his hair, should his
duced in net income, or $20 an acre, and
bonds fail to strike the prospect’s fancy.
th a t since he had made five percent clear
Let the farm er go and do likewise. V ari­
on w hat his land was actually w orth, he
ous branches of agriculture which are
should consider him self very lucky. Like
everyone else who has this explained to urged upon the farm er, in the nam e of d i­
him fo r the first time, he was unw illing versification, are as closely related as barto see the logic of it, and p retended to bering and bond-selling, or insurance and
scissors-grinding. Lam bs and steers, fo r
believe I was “ spoofing” him u n til I
instance, may be fed w ith the same scoopquoted my authorities.

12

THE

shovel, and corn is grow n in precisely the
same way as ginseng—wiiich is upw ard.
N aturally, the dissipation of the fa rm ­
er’s efforts through the pursuance of a
policy of diversification will render it im ­
possible fo r him to make money, but the
point is, he will avoid losing so much. I t
would be very nice, of course, if he could
specialize in his favorite branch, and be­
come an expert cattle-feeder, or d a iry ­
man, or wool-grower—nice, b u t not safe.
“Economy Points the W ay Out for the
Farmer.” Some farm ers appear to have
the idea th a t since the city bootlegger, or
the barber, or the m an who w orks for
M aytag can afford to drive a car, th e re­
fore they also should be entitled to th eir
ride. The poor m u tts ! L et them re tu rn
to the simple scale of living with which
th e ir g ran d fath e rs used to indulge them ­
selves, and they will soon be w ritin g le t­
te rs to the papers, telling how easy it is
to make a living (such as it is) on the
fa rm today. Those farm ers are m istaken
who thin k it necessary to have a dark
su it fo r m ilking and a light gray fo r
plow ing corn, and who would not be seen
pitching hay except in a palm beach o u t­
fit. F o r scooping oats, a plain band ring

NORTHWESTERN

BANKER

of gold or p latinum is correct ; if a stone
is worn, let it be an em erald, and never a
diamond. N or is it essential to tip the
hired m an h alf a dollar when he carries
in the wood fo r the k itchen stove; two
bits is plenty. M any oth er needless ex­
travagances m ight be pointed out to in ­
dicate th a t the fa rm e r’s sta n d ard of liv­
ing is too high when com pared w ith th a t
of his neighbor in the city. F irs t thing
he knows, the city fellers will be rushing
to the country, and crow ding him out of
a job.
“ Co-operation.” H ere lies the real
hope of the m iddle-w estern farm er. L et
the corn-raiser, and the cattle-feeder,
and the wool grower, th e dairym an, the
tru ck-farm er, and the hog-producer, all
get togeth er and co-operate. The corngrower, fo r example, can co-operate w ith
the cattle-feeder—-the one fo r high-priced
corn, and the other fo r low -priced cattle
feed. L et the A rgentine peon-owner sell
his cattle and corn fo r a song, if he will
-—we A m erican farm ers w ill co-operate,
and keep ours on the farm .
Or, if perchance the one big union idea
is im practicable, as involving too m any
diverse interests, th en let the fa rm e r ex­

May, 1926

pand the present system. Most farm ers
are co-operating rig h t now, b u t they
don’t co-operate enough. They only be­
long to two or th ree societies, a t five or
ten dollars each. L et every farm er join
the Grange, the F arm Bureau, the F a rm ­
ers’ Union, and the other all-inclusive or­
ganizations, and then let each individual
farm er join also those associations which
rep resen t his p a rtic u la r types of farm ing,
such as the H am pshire B reeders’ A sso­
ciation, the Corn Commerce Society* the
Corn B elt M eat P ro d u cers’ Association,
the N ational Corn-Grow ers’ A ssociation,
the A m erican P ercheron Society, and so
on.
L et it not be denied th a t each of these
organizations has its more or less v alu ­
able place in the farm scheme today, b ut
we are inform ed from so f a r aw ay as
W ashington, D. C., th a t co-operation is
going to be the u n tim ate answ er to the
fa rm economic problem , and since the
problem has assuredly not y et been an ­
swered, the only th in g fo r the bew ildered
farm er to do is to join every new union
he hears of, u n til a t la st th e p erfect
scheme is evolved and the p erfect o rg an i­
zation form ed.

More Than $ 1,000,000 of New Business
in Seventeen Days
H E great financial strength of the
Northwest Country is again proven
by the rem arkable returns reported
from the new business cam paign now
being conducted by the M idland N ational
Bank and T rust Company of Minneapolis.
W hen a single institution can inaugurate
an activity of this kind w ith a quota of
$1,000,000 to be secured in three months
and then surpass th at quota in less than
three weeks, we can well afford to be proud
of our financial institutions and to be con­
fident of the fundam ental soundness of
business in this p a rt of the country.
The success of the M idland campaign
indicates what can be accomplished by
m ixing Salesm anship and Cooperation in
the right proportions and then working
h ard to achieve a really worth-while result.
F ully two months were required to de­
sign the cam paign and to fit into it the en­
tire personnel of the bank. W hile the em­
ployes form an im portant p a r t of the
w orking force, this is in no sense the
regular “employes contest,” but has been
organized on a much broader plan. All
of the officers, directors and stockholders
have been included and up to the time this
article is being w ritten nearly 1,500 cus­
tomers of the bank and other friends have
signed up as active participants, each firm
in the belief th a t he is rendering a real
service to the community. One of the main
purposes of the cam paign is the dissemina-

T


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Federal Reserve Bank of St. Louis

B y W m . H . Maas
Chicago
Vice President, Northwestern Banker
tion of knowledge concerning the services
actually rendered by a banking institu­
tion and the team members are doing a
trem endous am ount of fine educational
work by discussing these m atters w ith their
friends and associates.
To arouse enthusiasm and stim ulate
com petition, th e cam paign was developed
along the lines of a “sales contest” which
is so fam iliar to all large m erchandising
and m anufacturing companies, many of
whom have employed this method fo r
tw enty years.
W hile no professional
solicitors of any kind are being used, the
task of designing the cam paign and teach­
ing the essentials of practical salesman­
ship was given to T. H arris Smith & Com­
pany of Chicago, who have fo r many years
served banking institutions in this capac­
ity.
There are tw enty-six teams, each lead
by a captain selected from the employed
force, the official staff or the board of
directors. The “charter members” of the
teams have the privilege of recruiting ad­
ditional team members which greatly en­
larges the “selling organization.” To each
team was assigned a definite quota of new
business and a large scoreboard was
erected in the bank lobby to record results.

A t regular intervals during each month
sales meetings are held and practical in ­
struction given to the bank personnel. The
customer-members of the teams are ad­
vised of all cam paign affairs by a bulletin
called “ The Go-Getter,” issued weekly.
Bronze, silver and gold buttons are
aw arded to the officers, directors and em­
ployes fo r personal perform ance in se­
curing new business.
The m ain services of the bank are in ­
cluded in the campaign, namely, savings
accounts, checking accounts, certificates of
deposit, safe deposit boxes and tru st de­
p artm en t relationships. Old custom ers of
the institution are encouraged to make
g reater use of the facilities provided and
new customers are invited to make at least
one contact. The results have been ex­
cellent, as indicated by the completion of
the original quota in less than one-quarter
of the allotted time. The cam paign will
continue, however, until Jun e 30th.
The substantial character of the new
business being obtained is shown by the
average of initial deposits. On new check­
ing accounts the average is nearly $3,000
and on new savings accounts the average
initial deposit is over $350. Of course,
m any small accounts are being secured,
because the gospel of sound banking is
being told everywhere, but the average
figures show th at the “salesmen” are doing
a really good job.

THE

May, 1926

NORTHW ESTERN

BANKER

13

T he J oys a n d so r r o w s of Banking
B y J . M . D inwiddle
President, Cedar Rapids Savings Bank and Trust Company
Cedar Rapids, Iowa
A Chinaman located his laundry over a hot spring,
H E things one sees, and the expressions one hears
on vacation trip s reminds him, by inference at not realizing w hat soapy w ater might do to the spring.
least, of his business calling. Especially is this tru e ofEven before his first washing was out, he accidentally
dropped a cake of soap into the spring. The explosion
the banker.
th a t followed blew him so high that, coming down, he
Standing by the open mouth of Old F aith fu l geyser,
fell into the sp rin g so hard th at he went on down into
ju st a fte r one of her outbreaks had subsided, a voice
the inferno below, where he has been in hot w ater ever
pipes up, “Does Old F aith fu l play all w in te r1?” “ Oh,
since. W hat banker is there who has not frequently
yes,” replies a guide, “but no one can see it. You see,”
found
himself in hot water, and do not these uneasy,
he continues, “the steam and hot w ater freezes and the
ice piles up so high th at the play of the geyser is hidden.” boiling springs rem ind him of such times brought on too
often by his too free use of depositors’ money fo r his
Of course, nothing like th a t happens, but the guide goes
own profit, in speculations th at often fail to retu rn the
on to say, “and we have a heck of a time chopping it
money so used? They went to the height the Chinaman
down and m elting it in the hot springs in the early
went, in expectations, and sunk as deep as he sank, in
season, getting ready fo r you tourists.” In this inci­
realization, and the tears shed because thereof are even
dent we very definitely see reference to frozen assets,
more of a cataract than flows over the falls of the
and to the activity of the average bank m anagem ent in
Yellowstone, concerning which a banker once rem arked
w arm ing up his icbound assets, getting them into liquid
th at “they should be called Pullm an Falls, because there
condition fo r the inspection of the B ank Exam iner.
is an u p p er and lower.”
Throwing one’s d irty linen into the H andkerchief
A clergyman officiating at a funeral in a small moun­
Pool to have it cleansed, and then taking it over to Iro n
tain town, said of the deceased: “ The corpse lying be­
S prings to have it ironed out, seems to rem ind us of
cleaning up a dirty bills file through the heat of inspec­ fore you has been a member of this congregation fo r
fifteen years.” A nd the bankers present at once thought
tion, and in th at way ironing out some of our difficulties.
of the corpses th a t had been residents of th eir bill files
The color of the pools, even, have an inference. In
fo r nearly as long and had almost made of them a grave­
youthful days when im agination pictures us successful
yard.
in undertakings, and well-to-do in ju st a few early
The falling upon us of the Overhanging Cliffs, under
years’ effort, we are simply looking into a deep pool
which all passed, would no more completely annihilate
reflecting the rosey light of early morning. W e are
us than would a bill file of th at kind, too long nursed
anticipating with great expectations financial success.
w ith the hope th at some of these corpses m ight retu rn
W hat can p u t more courage into any one’s heart than
to life, annihilate our business. H ad we at the right
the sunrise glow as it may be reflected in these pools
time, ap p ro p riated the forbidding aspect of the Beetling
of w ater as clear and pure as the eyes of youth, and the
brow of the mountains, th at m ight have avoided fo r us
thoughts th a t kindle them w ith expectation? As the
this season of mourning.
years pass, disappointm ent and im patience over the slow
A very fussy woman stood with other people at the
response develop. Callow and oversure, youth finally
brink of In sp iratio n Point, G rand Canyon of the
realizing th a t success comes only with great labor, gets
Colorado, ju st as the sun was gaining the W est. W hile
a glimpse of the Em erald pool of the deepest green, as
they all stood w ith bated breath, unable to fathom the
he realizes the need of judgm ent to make and secure
mystery, beauty, and solitude of the m oment; bare­
the wealth of youthful expectation. Success, then,
headed and reverent, someone barely whispered, “Beau­
seems long delayed, and his disappointm ent is reflected
tifu l blues of the evening, w onderful depth of color,
in the deep blue pool lying ju s t beyond. I t ’s then th at
mystery and wonder broods in thy depths.” W hen this
the blue devils assail. The Prism atic Pool had hared
woman piped up, “ Who w ants to see blues? Show me
him ; its varigated hue had led to uncertainty ; scattered
the pinks, we are fed up on blues. W e had a siege of
effort had brought complications, and long days and
blue-sky artists who gave us all of th a t we wanted.”
sleepless nights bring the gray of a w inter sky.
T hat broke the spell, of course, for, hadn’t these men,
The algae growing in and coloring these pools grows
bankers as they were, had their experience, too? The
as slowly as wisdom and understanding grow in man ; to
night descended and covered it all till the m orning sun
some extent typify in g experience. Like the grow th of
flooded the Canyon in the rosey light the woman wanted
wisdom and judgm ent in men, the pools take on definite
to see.
and lasting color with age. W ith m atured judgm ent
The woman’s blue sky artist knew he was prom oting
comes success, success as perm anent as the beauty th at
a fraud, but his discourse was flawless, his argum ents
crowns the wonderful M orning Glory pool.
plausible. H e was playing upon the desire of the aver­
The colors of the spring vary as does the character
age person to gain fo r himself some of the wealth this
of men, and most men may select the one which rep re­ man assured them they hight have—and the bankers
sents him. Even the Chocolate Pool th at took on its
had done nohting to counteract his claims. Some of
color when the Blackfeet Indians used it as a footbath,
them had even risked a flyer themselves, perm itting their
may represent the character some men have given
names to be “casually” mentioned, fo r effect-—and fo r
themselves.
(C ontinued on next page)

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Federal Reserve Bank of St. Louis

iS

14

TH E

THE JOYS AND SORROWS OF
BANKING
(C ontinued from page 13)
a fee, thus aiding in the h arvest of the
a rtis t whose voice was th a t of the siren
— b u t his ch a racter was th a t of the
Di-agon’s M outh Geyser, or Mud V ol­
cano.
‘ 1Bubble, bubble, gurgle, splutter,
H e ’s always showing something better,
Seeks to win one by his flatter,
G etting from you, h o w ’s no matter,
F in ds his plans w ill only scatter.
‘ ‘

I f you ’re thoughtless, he may get you,
Then only trouble will that net you,
O th er’s funds, thus used, w ill only fret
you,
Those who own them grow to hate you,
As these dollars, many, grow to fe w .”

A p arap h rase is not always wise.
Thus building on some other’s fo u n d a­
tion one m ay build thereon so exten­
sively as to lose him self therein, or
sim ply build thereon a scaffold on which
to hang him self. So, while you take a
deep breath and prep are to take the
plunge, you suddenly see escaping steam
w rapped in sophistry, ill sm elling as
you now see it, when you recognize the
n atu re the m an has assumed, you s a y :

NORTHWESTERN

BANKER

Y o u ’re the D ragon ’s Mouth, the geyser,
B elching forth w h a t’s mud and sulphur,
You would get me for my lucre,
You in no way can me euchre,
Get thee gone ere I make thee suffer.

R ealizing how nearly you were m is­
led, and the long tra il of losses his so­
p h istry m ight leave behind, you ex­
claim :
Now , I m y self am the hot-breathed g e y ­
ser,
F eel m y hot breath on your hand here,
I ’ll destroy you i f you stan d here,
Go at once, if you have a care.
Get t ’ell out of here.

There are m any incidents and scenes
th a t speak of satisfactio n , security and
peace of mind. One stands entranced
in wonder and in m ute contem plation of
the bulw ark of stren g th in yonder
m ountain, and the fo u n d atio n upon
which it rests is like the tow er of
stren g th you have builded into your in ­
stitu tio n . In building it, you have h u n t­
ed big game to swell your deposits. A t
tim es you have trav ersed the shadows of
big tim ber and fe lt anxious. In the
knowledge th a t it was the steady grow th
of centuries th a t p u t there the forest, you
note w hat persistence in building or
grow ing big things will do. Y our anxiety
grows to delight over the ce rtain ty th a t

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TenY ears A g o T o d a y
B rief bits of news from The N orth w estern Banker, May, 1916

J. M. Dinwiddie, president of the Ce­
d ar R apids Savings B ank of C edar R ap ­
ids, Iowa, was one of the principal speak­
ers a t a big banquet given recently by
the Cedar R apids C learing House Asso­
ciation. In the course of his rem arks,
Mr. D inw iddie traced the grow th of the
banking business in his city since the be­
ginning of such enterprises 65 years ago.
“W e now have le ft b u t ten of the th irty one banks organized here,” he said. “All
of these ten are well established, success­
ful, and serving the needs of city and
country acceptably. A t the date of our
la st C learing H ouse statem ent, the com­
bined capital of these banks was $1,600,000, the combined surplus $843,500, the
combined deposits $28,000,000, and the
to tal assets 331,426,474, a showing th a t
reflects the stren g th of a well established
city .”
— 1916—
The First National Bank of Council
Bluffs, Iowa, of which Jo h n J. S pindler
is the cashier, has on exhibit in the lobby
of th eir bank ten ears of corn which were
raised by R alph C. Sherwin, the fourteen
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Federal Reserve Bank of St. Louis

year-old high school boy of th a t city,
who received a trip to the expositions a t
San F rancisco and San Diego, fo r ra is ­
ing the best acre of corn in P o tta w a tta ­
mie county, which am ounted to 108.8
bushels. The F irs t N ational has always
been anxious to prom ote every movement
th a t m eant b etter ag ricu ltu re and a
g re a te r com m unity development.
— 1916—
George M. Bechtel, president of the
George M. B echtel Company of D aven­
port, is a booster fo r dry cities. In a
recent interview- he sa id : “ D avenport is
a b etter city wdthout saloons. C ertain
atto rn ey s are saying the city is going to
rack and ru in and circu latin g a lot of
ro t to win a case, when in rea lity D aven­
po rt is progressing as usual. The sa­
loon never did anyone any good, from
any standpoint. D avenport is norm al
and the laws against bootlegging are be­
ing enforced. The Suprem e Court will
not repeal the p ro h ib ito ry law am end­
ment, in my opinion, and I hope it does
not. W hy should the court go back on
the sta te th a t is now d ry ? I hope the

May, 1926

follows carefu l p lan tin g as the lure of
this m ajestic scenery draw s you up and
on. Like a m idnight ride through the
moonlit m ountains, the building of your
business has been full of thrills. The
b eau tifu l entran cin g m orning hour, the
crisp m orning atm osphere is no more exh ileratin g th a n a look backw ard a t effort
now rew arded. The tra il from s ta rt to
success has wound m any a tim e betw een
cliff-like walls through which the cares
of business have w orn deep furrow s like
the furrow s upon your brow. R ivers have
rushed sw iftly down dashing over p rec i­
pices into a thousand rainbow s; typical
of your experience, only to be gathered
into a deep-running stream of steady
flow, again typical of your success in
avoiding the danger places th a t more
closely beset or surround your business
th an th a t of any other, and guiding it
into success. Y our business life has also
its bleak and dry places w atered and re ­
freshed from the crystal pools en­
countered in your vacation trip , em­
blem atic of appreciation fo r your consid­
eration, expressed by custom er and
friend. You see the pools of b eau tifu l
color reflected in those whom your aid
has made successful, and the service you
have rendered is reflected in the success
th a t atten d s them — and you.

saloons stay closed. Don’t w orry about
D avenport. She will be in the fo re fro n t,
boosting fo r D avenport and Iow a rig h t
along, saloons or no saloons, and there
is a m ighty fine, sober class of people
here. ”
-1 9 1 6 First National Bank of St. Paul, has
anonunced th e ir second annual Corn
Show, which will be held in St. P aul,
December 11 to 16, 1916. F o u r prizes
valued a t $5,000 will be given to exhibi­
tors, w-ho show th e best ears of corn.
The Corn Show te rrito ry will rem ain the
same as la st year, and includes the fo l­
lowing states, divided into d istric ts as
show n: M innesota, six d istric ts; N o rth ­
w estern W isconsin, tw o ; N o rth D akota,
s ix ; South D akota, s ix ; M ontana, s ix ;
W ashington, th re e ; Idaho, th ree ; O re­
gon, tw-o. One hundred and th irty -six
Silver and “ Goldyn B ronze” loving cups
will be aw-arded as prizes. Com petition
will be divided into a m en’s and boys’
class, and is confined to d istric ts only,
there being no com petition betw een states
or between d istricts.
— 1916—
Charles G. Dawes, presid en t of the
C entral T ru st Company of Illinois, Chi­
cago, is building a hotel which will cost
$125,000 and will be knowm as the M ary
Daw-es H otel, being nam ed a f te r his
m other. The hotel will be operated and
m anaged by women and fo r women. All
women, w ithout distinction, who are seek­
ing lodging fo r a night, or any longer

T H E

M ay, 1926

time, w ill be welcomed to the hotel, which
will be located on the W est side. I t will
contain 250 rooms and w ill be of fire­
proof construction. Rooms will be rented
from 10 cents a night upw ard. W hile none
will be denied entrance, it is expected
only those who are in s tra its w ill apply
fo r lodging. E ach floor will be equipped
w ith sewing m achines and read in g rooms.

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

15

B A N K E R

“ Behind the Scenes“
An a ttra c tiv e and in stru ctiv e booklet
ju st issued by Thompson, Ross and Com­
pany, bond and investm ent-security
house of Chicago, is called “ The Inside
W orkings of a Bond H o u se.“ The cu r­
ta in is lifte d and all the inner w orkings
of th a t large organization are explained

in detail. The booklet tells of the m any
steps th a t m ust be tak en before they can
offer bonds fo r sale; it tells of the care
and good judgm enf which officials of the
com pany exercise before they will al­
low th e ir nam e to be associated w ith any
certain bond iss u e ; it follows a bond issue
through from the first prelim in ary steps
to the finished bond, ready fo r sale.

Can You Shoot “Par" on These Eighteen
Brain T easers ?
TwentyTve dollars in prises for the subscriber sending in the best answers
to the legal questions given below
C O N D IT IO N S O F A W A R D
A ll co n testa n ts m ust b e N o rth w est­
ern B a n k er su b scrib ers.
C on testan ts m u st sen d in th eir
answ ers to reach th is office n ot later
than M ay 20, and m ust sign th e ir nam e
and ad d ress le g ib ly .
D o n o t recop y the q u estio n s. M ere­
ly list the n u m b ers, from 1 to 18,
g iv in g you r an sw ers, “ Y e s” or “ N o .”
C on testan ts w ill n ote that in five of
the q u estio n s, N u m b ers 4, 6, 7, 11 and
14, th ey m ust give reason s fo r an ­
sw ers.
P le a se m ake th ese reasons
b rief and co n cise.
T h e correct answ ers to the q u estion s,
and a list of the w in n ers an d th ose
giv en h o n o ra b le m en tio n , w ill appear
in the J u n e N orth w estern B anker.

paid a t m a tu rity ? Give reason for an­
swer.
A director of a bank gives a note fo r
the purpose of concealing from the
bank exam iner the fa c t th a t the bank
has made an excessive loan. I t is agreed
th a t the director shall not be liable on
the note. Does such an agreem ent relieve
the director from liability. (Yes or no.)

8

A note contains a provision th a t it
9 shall
im m ediately become due and
payable, if the m aker upon dem and fails
to deposit w ith the holders such ad d i­
tional security as they m ay require, in
the event th a t the security pledged be­
comes un satisfacto ry . Is the note nego­
tiab le? (Yes or no.)

1
M ay depositor of an insolvent bank
1 U set off his deposit ag ain st his in ­
H as a bank the rig h t to pay a check
debtedness on a note held by the b ank?
draw n by a depositor a fte r the death
(Yes or no.)
of the depositor? (Yes or no).
A su rety com pany executes a
Does a gu aran ty of paym ent of a
su rety bond indem nifying a certain
note “u n til m a tu rity ” rem ain in force
person ag ain st any loss he m ay sustain
a fte r the m a tu rity of the note? (Yes or
by depositing money in a specified bank.
no.)
Does this bond cover a deposit evidenced
Is a certificate of deposit payable in by a certificate of deposit? Give reason
“ cu rren t fu n d s” negotiable?
(Yes
for answer.
or no.)
1 ^ A bank, by its vice president, signs
A bank holds a note which was en­
1 ^ a co n tract obligating it to purchase
dorsed to it by the payee. A t matur­
adv ertisin g m a tte r during the period of
ity the bank has funds of the payee on de­
two years. The co n tract contains a p ro ­
posit. The m aker notifies the bank th a t
vision th a t it shall rem ain in force fo r a
there is a defense to the note, good as
fu rth e r period of three years, unless the
against the payee. Is the bank required
bank cancels it before a certain date.
to apply the payee’s deposit to the p ay ­
The vice presid en t has no knowledge of
m ent of the note? I f it does not do so,
can it recover from the m aker? Give this provision, and the bank fails to can­
cel the co n tract before the specified date.
reason for answer.
Is the bank obliged to p ay fo r m aterial
A note contains a w aiver by the
furn ish ed during the ensuing three years ?
m akers of th e ir rig h ts to all exem p­
(Yes or no.)
tions allowed them by law. Is the note
1
A certificate of deposit is payable
negotiable? (Yes or no.)
1 «3 twelve m onths a fte r date, “w ith in ­
M ay a bank reverse a credit on a
te re st u n til m a tu rity only.” Is the holder
check deposited fo r collection, if the
of the certificate en titled to in terest a fte r
check is not collected? Give reason for
m a tu rity ? (Yes or no.)
answer.
A holder in due course of a d ra ft
Is an endorser of a note “w ithout re ­
w ith bill of lading attach ed en­
course” liable on a note which is not

I

2

n

3

4

5
6

7


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Federal Reserve Bank of St. Louis

14

$ 2 5 IN
P R IZ E S
T h e N o rth w estern B a n k er w ill pay
$25 in p rizes to the su b scrib er se n d ­
in g in the b est answ ers to th e 18
sim p le q u estio n s of b a n k in g law g iven
on th is p age. P rizes w ill b e aw arded
as fo llo w s:
F irst P rize, $15
S econ d P rize, $10.
H o n o ra b le M en tio n : T o a ll others
w ho su b m it the b est an sw ers to the
q u estion s.
Ju d ges w ill co n sist o f the L eg a l E d i­
tor an d the E d ito r o f the N o rth w est­
ern B anker.

dorsed it to a b ank fo r collection. A fte r
the bank collects the d ra ft, the consignee
of the goods ag ain st which th e d ra ft
was draw n discovers a shortage and sues
the consignee to recover th erefo r. The
consignee also attaches the proceeds of
the d ra ft. The bank deducts the am ount
of the consignee’s claim from the p ro ­
ceeds of the d ra ft, and rem its the b al­
ance to the holder of the d ra ft. Is the
la tte r en titled to recover from the bank
the am ount deducted? Give reason for
answer.
£ Is a check received a fte r banking
_L O hours on a certain date, and p re­
sented through the clearing house two
days later, presented w ithin a reasonable
tim e a fte r its issue? ("Yes or no.)
1 /C W h at
th e relationship existing
JL O betw een the lessor and lessee of a
safety deposit box?
1 H W h at is the effect of the expres' sion “A gt.” w ritte n in the face of
the check im m ediately a fte r the nam e of
the payee ?
1 q A certificate of deposit provides
1 O th a t it shall not be cashed as long
as a certain loan rem ains unpaid. Can
the certificate of deposit become due be­
fore the loan is p aid ? (Yes or no.)

16

T HE

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

B A N K E R

H ay, 1926

Plan Next F. A . A . Convention
ARROLL RAGAN, of the U nited
S tates M ortgage & T ru st Company
of New York, and president of the
F in an cial A dvertisers’ A ssociation, has
assured the success of the next conven­
tion of the F in an cial A dv ertisers’ Asso­
ciation through his able selection of the
program com mittee. They are :
Clinton F . B erry, assista n t vice p resi­
dent, U nion T ru st Company, D etroit,
chairm an.
Theodore W eldon, advertising m an­
ager, N orthern T rust Company, Chicago.
Charles R. W iers, assista n t vice p re si­
dent, N ational Shaw m ut B ank, Boston.
H. D. H odapp, N ational C ity Bank,
New Y ork City.
C. E. Bourne, advertisin g m anager,
Royal B ank of C anada, M ontreal.
P aul T. Bollinger of H arris, Small &
Company, D etroit.
E rn e st L. Colegrove, assista n t tru s t o f­
ficer, G u aranty T rust Company, New
Y ork City, chairm an, tru s t departm ent.
F re d E llsw orth, vice president, H ib er­
n ia B ank and T ru st Company, New O r­
leans, chairm an, savings departm ent.
C. H . H enderson, m anager, publicity
departm ent, U nion T ru st Company,
Cleveland, chairm an, commercial d e p a rt­
ment.

C

Dynamic D etro it is the city which will
welcome the delegates of the F in an cial
A dvertisers’ A ssociation, Septem ber 2023 (both dates inclusive). E very live
financial ad v ertisin g man, who is w orthy
of the name, should assemble in D etroit,
if he can possibly arran g e it. F rom the
glance we were p erm itted to tak e a t the
program which has been outlined up to
the present moment, we feel genuinely
sorry fo r anyone in terested in th is phase
of advertising who cannot atten d .
A fe a st of constructive ideas w ill be
served up, w ith solutions to problem s of
various perplexing n atures, as the liquid
refreshm ents of this m ental banquet.
The en tertain m en t and good fellow ship
end of th e convention is being well looked
afte r, also, and everyone who wields the
mashie and the driver should be on hand
on Septem ber 20 to tak e p a rt in the an ­
nual golf tou rn am en t which will tak e
place on th a t day. From th a t tim e on,
until the evening of Septem ber 23, when
the convention will be considered offi­
cially a t an end, every m inute of your
w aking hours will be fu ll of ideas to help
you in y o u r daily work, coupled w ith
plenty of fun, jo llity and sp o rt throw n
in, and an ideal o p p o rtu n ity to renew or

make the acquaintance of men from every
q u arte r of the U nited S tates and C anada
who are m aking h isto ry in th e field of
financial advertising.
Those who atten d ed la st y e a r’s conven­
tion a t Columbus, will rem em ber the
splendid address given by G. Lynn Sum ­
mer, “B uilding a Typical A d vertising
Cam paign.” Dr. F rid a y ’s talk on the
tren d of events from th e economic view­
point was much commented on. Speeches
such as these given by men who are o u t­
stan d in g in th e ir p a rtic u la r fields of en­
deavor, coupled w ith opportunities fo r
discussion given, provide a m ental stim ­
ulus, the value of which is incalculable in
coping w ith the m any problem s th a t flow
continuously over the financial ad v ertis­
ing m anager’s desk.
Remember th e dates— Septem ber 20,
21, 22, and 23. The general construction
of the program is, of course, know n to
those who have atten d ed p rio r conven­
tions, so th ere is no need to dwell on it
here. There is a d ep artu re planned fo r
this year, however, which we will ju st
m ention a t this tim e (more h e re a fte r),
and th a t is In d u stria l Day. This will be
an o u tstan d in g event in the memories of
those who atten d the D etro it convention.

Dramatizing Investment Advertising
ROBABLY no business activity,
aside from the practice of law, is so
hedged about with traditions and so
bound by precedents as the business of
banking and its allied line, the selling of
high-grade investment bonds. To a large
extent, this condition is a pro p er one. Its
overem phasis, however, is responsible fo r
the failure of most of the advertising of
financial houses to produce the results de­
sired by its sponsors. Therefore, it is of
more than passing interest to the entire
banking fra te rn ity when a conservative
bond house breaks away from the shackles
of hide-bound traditions and advertises in
a really interesting and original m anner.
Among the outstanding success of recent
financial advertising is that which has
been done by Thompson Ross & Company
during the past two years. Results have
been f a r ahead o f w hat was anticipated,
according to Livingston Ross, vice presi­
dent of the firm, and so gratify in g in every
way th at plans fo r continuing and en­
larging the cam paign have been definitely
agreed upon.
“W hen we inaugurated this style of ad­
vertising,” said Mr. Ross, “it was with
some doubts as to the practical value of
bond house advertising. W e now realize
th at our misgivings were based on other
financial advertising campaigns.

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“ To find a new method of approach was
a difficult problem. There are many highgrade bond houses, offering equally good
bonds. Indeed, the very same bonds are
offered by m any houses at the same time.
D espite this fact, however, we felt th at
the last word in financial advertising had
not been said, and th at a cam paign of ad­
vertising along really original lines would,
if consistently followed up, result in some

real, tangible benefits. We believed th at
financial advertising could be dignified and
at the same time human and interesting—reserved, yet striking. Accordingly, we
decided to dram atize our advertising, p re­
serving all the best traditions which, of
necessity, must surround the bond business,
but making each advertisement, if possible,
a noteworthy dep artu re from the cold, un(Continued on page 53)

May, 1926

THE

NORTHWESTERN

BANKER

17

W h y the Local Banker Must Preach
Life Insurance
B y A . R . W o lf
Vice President, Lytton Savings Panic, Lytton, Iowa.

H IS article is w ritten w ith the w rit­
ing of L ife Insurance in w hat might
be term ed ru ra l communities in mind.
W hen folks begin to think of Life In ­
surance in the p ro p er terms, th at of build­
ing up their estate, they will begin buying
it instead of having to be sold.
As the situation stands today it takes
real effort to convince men th at L ife I n ­
surance is something of vital value to every
one of them. People don’t have to be
sold fire insurance. I t is no uncommon
occurence to have a young m an when he
gets m arried and starts out fo r himself
come in almost immediately and say, “F ix
me up w ith some fire insurance. I w ant
to be protected.” Y et in my ten years’
experience as a ru ra l banker I have only
had two men, who were brothers, come in
and ask if we w rote Life Insurance, and
say if so, they w anted a policy. M ore­
over when agents go out to w rite it, they
expect to have a regular tussle with every­
one they interview before landing them.
I f I were only perm itted to carry either
life or fire insurance, I would p re fe r the
life. The reason why this is not true in
most cases is simple. Folks are properly
educated to the value of fire insurance, but
are not intelligently inform ed about Life
Insurance.

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You, intelligent reader,
may say, “W hy, look at
the mass of life insurance
agents continually solicit­
ing among the people.
Surely they are educating
the public on this sub­
ject.” I f you have this
impression, I beg to differ
with you. They are giv­
ing the public a lot of
ideas in regard to Life I n ­
surance and are enlight­
ening them in a general
way th a t it is essential fo r
them to carry some. B ut
the m ajo rity of people
before t h e y are a p ­
proached and afterw ard,
even though some are
sold, do not think of it
in term s of building up th eir estate.
Speaking in a general way, in my
opinion, L ife Insurance is presented to
the public too ab ruptly and in the wrong
way. About the only time ru ra l folks
have the oppo rtu n ity of listening to the
m erits of Life Insurance is when they are
approached by foreign salesmen. Even if
accompanied by a local man, these sales­
men to begin with, do not have a p ro p er
start. L ife insurance is still m isunder­
stood by a great many. F urtherm ore,
many minds contain actual prejudice.
This prejudice had its origin w ith the
older folks and has been handed on down
to the present generation. These older
folks can recall unpleasant experiences in
reference to the life insurance of the old
days, when old line companies were not
the only ones who were w riting business.
And the fact of the m atter is th at some
folks did lose money through unsoundly
operated companies. These recollections
which the people of today have heard dis­
cussed p u t an unpleasant and unfavorable
attitude into the minds of prospects. E s­
pecially among the foreign element.
W hen an insurance salesman a p ­
proaches them they regard him, maybe not
as a trickster, but at least with distrust
and as a person to be avoided. H e is
looked upon as a man peddling an u n ­
reliable article and as a high-pressure
stran g er who has no fu rth e r interest than
the dollar th a t he m ight extoll from them
(and I guess there are this type of insur­
ance men still in the field) and they at
once steel themselves against him.
To overcome this disadvantage you can
see th a t he has to use high-pressure

methods. So much so th at the prospect
is so on his guard to keep from being sold
th at the breach widens, and if the agent
finally lands him, he is oftentim es left in
a daze and does not really understand what
he has purchased.
I t is conceded today th a t the public
mind is moulded and made through the
press. How often are folks perm itted to
read about life insurance in their leisure
hours when they can study, absorb, and
digest it? I know th a t of recent years,
a few companies, and very few, carry ads
in leading magazines. B ut these ads are
more to establish or fix the name of their
company in the read er’s mind. A few
companies also do a certain am ount of
direct-by-mail publicity. These avenues
are a help, but they do not reach the m ul­
titude.
I was glad to see the series of articles,
recently published in a large city daily by
Roger Babson, on how life insurance was
a prom inent p a rt in the building of a
m an’s estate. This is more w hat m ust p re­
cede the introduction of life insurance to
a prospect. B ut this will not entirely
break down existing prejudices.
Life insurance to be effectively p re­
sented in a strong appeal fo r its value,
must be handled through a systematic edu­
cational publicity program . And it must
come through a local source. The logical
source is the local banker. H e is the lead­
ing financial advisor in his respective com­
m unity and he will be respected fo r the
opinions he expresses. Such a plan must
be handled so th a t the literatu re can be
read at leisure, and the idea of how one
can protect his fam ily and his estate
through am ple life insurance, must be
presented in a m asterful way. W hen the
way has been so paved fo r life insurance
reviews, then agents can expect to have
more folks inquiring fo r and buying it.
Being in the publicity work of fu rn ish ­
ing program s fo r bankers, which caused
us to constantly interview them in regard
to problems they wished to overcome,
many, m any times we were confronted
with requests from bankers outside of city
bankers, to build publicity featu rin g the
idea of life insurance. So W essling Serv­
ices, with whom I am connected, first be­
gan building special life insurance pub­
licity program s to pave the way fo r the
banker to w rite more business.
This plan met with g reat success. Of
late, the life insurance tru st plan which
is becoming recognized as an essential and
(Continued on page 58)

18

THE

NORTHWESTERN

BANKER

FR O M T E E TO TEE
with
“C H IC K ” E V A N S
HOW TO PRACTICE

May, 1926

E d ito r ’s N o te :— T h is is the seco n d o f a
series of a rticles on “ B etter G o lf M akes
B etter B an k ers,” b y form er in tern a tio n a l
g o lf ch am p ion , “ C h ick ” E vans, w ritten
e sp e c ia lly fo r T h e N orth w estern B a n k er.
A sim ila r article w ill ap p ear in each is ­
sue d u rin g the rest of th e year. Mr.
E vans is n ot o n ly a v etera n o f m any
ch a m p io n sh ip s, b u t an e x c e lle n t in ­
structor, and, from six teen years’ e x p e ­
rien ce in th e b o n d b u sin ess, is w e ll
v ersed in th e la n gu age o f b o th go lfers
and bankers. L et “ C h ick ” Evans h elp
you r go lf gam e th rou gh T h e N o rth w est­
ern B an k er!

B y Charles “C h ic k" E vans
H IS article is fo r the average
player and the d u b ; if it benefits the
expert so much the better. Most of
the w ritten instruction seems to be in­
tended for the expert golfer, ju st as the
greater p a rt of golf architecture seems
designed to aid
the same class of
player. Of course,
it is a good ob­
ject to help the
few experts, but
it is an equally
good thing to help
the great masses
i m p r o v e their
game and increase
their enjoyment.
The dub and the
average p 1 a yers
are the chief m ate­
rial sustainers of
th e g am e. In
G reat B r i t a i n
these classes. of
players are any­
where between ten
“ C H IC K ” EV A N S
and
twenty
strokes better for
eighteen holes than those in this country.
The game is older over there, players have
more leisure, and even now have better
instruction. In consequence, the standard
is higher and they have greater enjoy­
ment.
W ithout doubt improved playing abil­
ity brings increased enjoyment.
The
thrill of achieving a well-planned shot is
w orth try in g fo r and it lies within the
reach of every man who is willing to p rac­
tice and study golf.
I have already told the readers o f T h e
N orth w estern B a n k e r th at the first a t­
tention of the golfer in the spring should
be directed to his bag of clubs. Remember,
almost every golfer carries too many
clubs. 1 believe in the simplified game in
every way. Those of you who have played
before, I venture to say, have at least one
club th at you are only likely to use once
or twice a ro u n d ; consider carefully
whether it may not be discarded and an­
other of your clubs trained to the addi­
tional use. I t is astounding how often
this m ay be done to great advantage. See

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that the shafts of every club are straight.
This year I have lengthened my clubs an
inch in order to favor an easier swing.
S tart the season with the resolution that
you will not he easily discouraged. A
quick feeling th at you can never hope to
play well has h urt the happiness of the
golfers o f this country and the world more
than any one thing. Give any change or
new idea upon which you have determined
a fa ir trial. Some sound advice inaug­
urated in the beginning of the year may
work wonders, but beware of constant
experim ents throughout the year.
I f a golfer begins rightly in the spring,
he will find if easy to keep his hands in
good condition throughout the year. The
least little h u rt affects your play, too.
Use adhesive tape at the first hint of sore­
ness, being sure to p u t a piece, smooth
side up, next to the pain. A little hand­
wash of witch hazel and arnica, equal
p arts if there is no broken skin, helps con­
dition your hands. The use of some u n ­
guent quickly fo r any cracked places is
fine.
There are two kinds of practice. One
is the playing of the same shot over and
o v er; the other is the playing of every shot
as it comes to you in a round. There are
and have been great exponents of each
method. I recall hearing Lord N orthcliffe say th at many a time he had looked
from a window and watched H a rry Y ar-

G O LF
It is a sc ien ce— the stu d y of a l i f e ­
tim e in w h ich y o u m ay exh au st y o u r­
se lf b u t n ever you r su b ject. It is a
con test, a d u el or a m elee, c a llin g for
courage, sk ill, strategy and se lf-co n ­
trol. It is a test of tem p er, a trial
of h o n o r, a revealer of character. It
affords the ch an ce to p lay th e m an
and act th e gen tlem an .
It m ean s goin g in to G od ’s out-ofd oors, gettin g clo se to nature, fresh
air, ex erc ise, a sw eep in g aw ay of m en ­
tal cob w eb s, g en u in e recreation of the
tired tissu es. It is a cu re for care, an
an tid ote fo r w orry. It in c lu d e s co m ­
p a n io n sh ip w ith frien d s, so cia l in te r­
cou rse, o p p ortu n ity for cou rtesy, k in d ­
lin e ss and gen ero sity to an o p p on en t.
It p rom otes n o t on ly p h y sica l h ealth
b ut m oral force.

-—D avid R. Forgan.

don placing shot a fte r shot and ball afte r
ball in a given spot. W alter H agen on
the other hand, never practices except
when playing a round. W hich is the bet­
ter way ap p aren tly depends upon the in­
dividual. I believe, however, th at fo r the
average man the practice o f individual
shots will achieve better results.
I believe th at the indoor golf schools
serve a decided need.
One im portant
thing about indoor golf is th at you watch
the way th at you play, rath e r than the
place to which the ball is going. A good
golden rule is: W atch carefully the way
in which you hit the b a ll!
I am a firm believer in practice, but re­
peating errors is a terrible thing. My ad­
vice to all golfers would be, select any­
where from one to seven ideas suggested
by a com petent teacher, or you can read
in any good book, and then do these things
over and over again until they become an
easy habit. In doing this, certain individ­
ualities will present themselves which you
must use, whether the instructor says they
are all rig h t or not. These cannot be
m ajor ideas. You m ust decide for your­
self whether the square or the open stance
is best fo r you. You must use the finger
g r ip ; plain, if your hands are not large
like all women, overlapping or interlock­
ing dependent upon the strength and size
of your hand. Remember to use only a
slight variation of the same g rip and
stance fo r every shot and distance, try in g
not to vary any a t all. It is sim ply ru in ­
ous to change grips w ith evei’y shot.
The most im portant thing to remember
in your practice is th a t rhythm cannot be
gotten w ith a still sta rt of the clubhead.
I get this accented beat, as it were, by a
little vibratory movement of a head-heavy
club. The great trick is to keep the clubface at rig h t angles to the im aginary di­
rection line so th at when it is brought in
contact w ith the ball it still preserves its
rig h t angular position. O ther times I
sta rt my hands even with the clubface,
then press them in advance of it, then in
a continuous movement w ith the clubhead
still on the ground, take them back of it
and then let them flow into the stroke.
All of this must be done smoothly, and
(C ontinued on page 65)

THE

May, 1926

NORTHWESTERN

19

Jt

SSSSSSSSSSSS^^

W h e n in Chicago call a t the B an k and
le t us he of service. W hen desirin g in ­
fo rm a tio n abou t th is G reat C en tral
M a rk et, refer your in qu iries to us.

BANKER

Chicago’s City-Center Bank
Serving and drawing its strength from the great
Middle West, Chicago in its remarkable growth
still pivots upon the “world’s busiest corner,’State and Madison Streets. And half a block west
on Madison, this Bank maintains its 57*year posi­
tion—Chicago’s most centrally located bank.
Time-saving convenience is a policy that runs through all the serv­
ices this Bank renders. Its time-saving collection procedure is of
special importance to correspondents requiring Chicago facilities.

1926

1869

Ha r r y A. W h eeler

FREDERICK H. RAW SON
Chairman of the Board

President

C r a ig B. H a zlew o o d
Vice-President

UNION TRUST
COMPANY

Madison and Dearborn Streets
P R IV A T E W I R E S


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Federal Reserve Bank of St. Louis

TO PRINCIPAL P O I N T S - D I R E C T

B/L A N D

*

Chicago

COLLECTION FACILITIES

20

THE

NORTHWESTERN

BANKER

You may know more about banking
th an “ Chick” E vans does, b u t if you
w ant to improve your golf game do not
fail to read w hat “Chick” Evans has to
say in th is issue of the N orth w estern
B a n k e r . In last m onth’s article, “ Chick”
E vans m ade this very in terestin g sta te ­
m ent about the good fellow ship of golf
when he s a id : “I w onder if it is nec­
essary fo r me to assure bankers th a t golf
is not only a healthful game, but a preem inately frien d ly one; and if any word
th a t I m ay say chances to lead them into
this charm ing w orld of good fellowship»
I shall be happy indeed.”
I am sure th a t m ost banker-golfers are
quite fam iliar w ith the w orld of good
fellow ship which surrounds the golfing
game, bu t the trouble is to be able to
charm the golf ball so th a t it will come
w ithin p u ttin g distance of the p articu la r
hole which they are endeavoring to m ark
on th e ir score card a t fo u r strokes or
less.

politics will take on a new in terest. The
first b rillian t u tteran ce of this statesm an
upon his re tu rn was th a t “Iow a has no
senator.” W hile Iow a may not have had
any senator before, according to our
reading of the Congressional Record» one
has been recently officially elected, whom
we tru s t will not b ring disgrace and dis­
honor upon his state.
The Cedar R apids Republican, re fe r­
rin g to the record of th e fo rm er ju n io r
senator, has this to s a y : “W hile the farm ­
ers—fo r whom M r. B ro o k h art expressed
such g rea t concern— looked fo r a cham ­
pion to offer them some aid, B rookhart
w ent on trav elin g th e co u n try w ith his
same old stero ty p ed speech on the sup­
posed deflation of 1921. N ever once
during those two years between his elec­
tion and his la te r d efeat by Steck did
he even so much as propose or introduce
a bill fo r the aid of ag ricu ltu re.”
On w ith the fight—let the votes fall
w here they m ay!

“F ive thousand banks, one out of every
six in the U nited S tates, keep money on
deposit here.” This is a p re tty stro n g en­
dorsem ent fo r the banking service re n ­
dered by any banking institu tio n . This
quotation is from the advertisem ent of
the Continental and Commercial Banks
of Chicago, and if you would w rite a
page of copy about these banks you could
not tell a bigger or b e tte r story th an is
told in those few words.

Thomas Edison m ay go w ithout sleep
and still be the g rea test electrical genius
of the age, b ut John Hays Hammond, at
71, and who looks much younger, seems
to have tak en the laurels from Edison
because he says be sleeps when he likes
and works as long as he likes. H e drinks
and smokes and w orries always.
These are new rules fo r longevity b u t
they m ight not be good rules fo r every­
one to follow.

Speaking of bank advertising, another
very clever piece of copy was used by
the Leavitt and Johnson N ational Bank
of Waterloo in the A pril issue of the
N o r th w estern B a n k e r , the heading of
which advertisem ent was, “A B ank of
E xperienced M anagem ent.”
To prove th is fa c t they gave a list of
th e ir officers and directors, and the num ­
ber of years they had been connected
w ith the institu tio n . Ira Rodamar, p resi­
den t of th e bank, topped the list w ith 33
years. C. E. Pickett, vice president,
came next w ith 28 years, and Fred H.
Wray, the handsom e cashier of the bank,
has had 14 years to his credit, even
though he has been w ith the bank a
sh o rter period of tim e th a n any of the
o th er officers.
“A seasoned directorate and expe­
rienced m anagem ent,” is the w ay this
bank tells its story of service.

Sir Robert Kindersley, British banker,
in discussing the economic situ atio n in
the U nited S tates and E ngland before
the New Y ork B an k ers’ Club, said th a t
extravagance in the U nited S tates and
economy in E ngland were necessary fo r
in te rn atio n a l progress.
No doubt S ir R obert is anxious fo r us
to spend all of our money fo r E nglish
goods and a t th e same tim e let E ngland
economize and sell these goods a t a price
which will increase E n g lan d ’s export
business to this country.
W e are acquainted w ith m any individ­
uals in th is country who are m ost happy
to follow S ir R o b ert’s program of ex tra v ­
agance.

With Smith “W ildman” Brookhart
back in Iowa fo r his sum m er vacation,

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Federal Reserve Bank of St. Louis

According to figures now available,
there is every reason to believe th a t the
U nited S tates governm ent will end the
present fiscal year, Ju n e 30th next, w ith
an excess of o rd in ary receipts over o rdi­
n a ry expenses of nearly $270,000,000. I f
th is figure is attain ed , it w ill be tw enty

May, 1926

m illion dollars g rea ter th a n fo r the same
period la st year. S ecretary Mellon is
certain ly en titled to all the credit possi­
ble fo r his excellent handling of govern­
m ent finances.
Incidentally, if more cities, more coun­
ties and more states would follow the
financing methods of S ecretary Mellon,
the local taxes would also be decreased
the same as the fed eral taxes are being.
In m ost cases, however, local taxes are
climbing very rapidly.
Prof. W. Z. Ripley, of Harvard U ni­
versity, has caused considerable discus­
sion of late because of his opposition to
the issuing of nonvoting stock by large
corporations.
P ro f. R ipley outlined his opposition to
nonvoting stock by suggesting th a t the
danger of such a scheme goes down to
th e “very roots of our civilization,” be­
cause our civilization is bu ilt on the idea
of p ro p erty ow nership, and the fo u n d a­
tion of our civilization is bu ilt on the
independence of people and property.
H e fu rth e r suggests th a t the courts
are w atching the p resen t tendency on
the p a rt of bankers and corporations in
the issuance of nonvoting stock and
th a t unless financial in terests w atch very
carefu lly th e ir fu tu re program s, court or
legislative action m ay follow.
The First W isconsin National Bank of
Milwaukee, handles tw elve miles of
checks every day and has the pleasure of
serving over 7,000 people who daily cross
its threshold, and over 400 people are em­
ployed by th is in stitu tio n .
These are all fac ts which this bank
uses in its advertisem ents to tell the
w orld of its service and its organization.
There are so m any in terestin g and
valuable fac ts and figures which any bank
can use in its bank ad v ertisin g th a t it
seems stran g e th a t any bank need w orry
about m aterial fo r ad v ertisin g copy.
C arrying out the idea in the p ara g ra p h
ju st above, h ere’s some very in terestin g
copy used by the Omaha National Bank,
in which it s a y s : “ A frie n d fo r life—
m any of our custom ers have enjoyed our
service and have found it sa tisfacto ry
during th e ir en tire business career, some
fo r over fifty years. W e trea su re the en­
dorsem ent of th is continued p atro n ag e.”
Anyone who is fam iliar w ith the
Omaha N atio n al’s service, w ith its fine
list of bank officers, and the cordial tr e a t­
m ent which they alw ays receive when
you en ter the bank, will not be surprised
th a t m ost of th e ir custom ers have become,
“a frien d fo r life.”
A warm handclasp in the banking busi­
ness usually helps to secure m any new
depositors. H ow ever, hand-shaking, if
you were p resid en t of the U nited S tates
is quite an o th er m atter. P resid en t Cool-

M ay, 1926

THE

NORTHWESTERN

BANKER

21

N 1920, W ILLIAM ELLIOTT GRAVES,
said:— “There is nothing in advertis­
ing too good for the American Banker
and the great mission that is his' . . .
Mr. Graves in his lifetime did more than
any other man to elevate bank advertising
and deposit-building methods to the same
high plane as national advertising. He
lifted financial advertising out of the com­
monplace; and built an organization that
made Graves Service at once the sincerest
and most distinguished in the service of
the American Banker.

I

(C) de Gueldrt, Chicag

E. E. M c C l e is h

E E K IN G to m ain tain in all its d ep artm en ts and
a c tiv itie s th e h ig h id ealism an d exactin g stan d ­
ards o f its founder, th e W m . E llio tt G rav es O r­
g an izatio n has elected E. E. M c C l e i s h as President.
F rom an established place in n a tio n a l ad v er­
tisin g M r. M cC leish cam e to G r a v e s S e r v i c e in
1922 as Vice P resident and C hief o f C opy, b rin g ing
to th e problem s o f th e b an k er th e sam e g ifts o f
analysis, persuasion and salesm anship th a t had
d istin g u ish ed h im in th e b ro ad er field.
H is record of achievem ent in financial ad v er­
tisin g has becom e so n o ta b le th a t th e org an iza­
tio n co n g ratu lates b o th itse lf and its clien ts upon
h is election as P resident. I t is a definite assertion
of th e fu n d am en tal, c o n stru ctiv e lead ersh ip in ­
trin sic in G r a v e s S e r v i c e . T h is lead ersh ip has
an un b ro k en record o f six years service to th e
A m erican B anker.

S

W M . E L L IO T T GRAVES, INC.
C H I CAGO

GRAVES
Service
H om e Office: Num ber 30
N orth M ichigan Avenue,
Chicago. Consultation and
C o r re sp o n d en ce invited.


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Federal Reserve Bank of St. Louis

22

THE

NORTHWESTERN

BANKER

idge’s personal physician has told him
th a t he m ust stop hand-shaking because
this uneconomical and h ealth-endanger­
ing exercise was tak in g the P re sid en t’s
stren g th and v itality . I t is estim ated
th a t in two weeks tim e he was saved over
30,000 hand-shakes.
K now ing the P re sid e n t’s obsession fo r
economy, th is no doubt appealed to him
very strongly.

W hat Makes a
Good Cashier?

There is some discussion am ong s ta tis ­
ticians as to w hether Henry Ford is
w orth one billion dollars or two billion
dollars. H en ry F o rd is w orried least of
all, and will no doubt struggle along on
his income of $100,000,000 a year.
In ascertaining the credit rating of
farmers, m erchants and other custom ers,
m ost F ed eral Reserve B anks are asking
these individuals how much life in su r­
ance they are carrying. The reason fo r
this is because life insurance is a credit
stabilizer. I t n eith er “cracks nor crum ­
bles, bends nor breaks and can be m ain­
tain ed a t so slight an expense th a t no
business firm need be w ithout it, a t a cost
which will range between 2y2 to 4 p er
cent of the am ount of the policy.”
N ot only does life insurance strengthen
and p ro tect a m an’s credit, b u t business
life insurance, which is being w ritte n on
the lives of executives and officers, offers
a pro tectio n which is helping in a large
m easure to elim inate the loss of b rain
pow er which occurs when these execu­
tives pass on.

A successful bank cashier, or for that
m atter any bank official is a m an who
knows the banking business thoroughly
from constant study, and one who
makes the problem s of the bank cus­
tomers, his problems.
W hite-Phillips sales representatives are
trained in the same way— to know
thoroughly the investm ent business—
and to ren d er th eir clients individual
service.
It is our aim to make the services of
these m en so valuable to clients that
they will always be welcome.

The profit side of farm in g was very
ably discussed by W. H. Brenton in the
la st issue of “N atio n ’s B usiness.”
Clyde E. Brenton, vice president of the
Iowa National of Des Moines, is an uncle
of the au th o r of this article.
W. H. B renton points out th a t they
have operated, d u rin g the la st 25-year
period, practically 5,000 acres of land in
D allas County, Iowa. The average value
of the land was figured fo r each five-year
period, and ranged from $60 an acre to
$200 an acre. In te re st received on the
investm ent fo r each five-year period was
also figured and ranged fro m 3.58% to
10.92%. The average fo r the 25 years,
however, has been 7.32%, which in d i­
cates th a t farm in g is still a profitable
investm ent when properly managed.

The investm ent experience of this com­
pany’s officers are at all times at their
disposal for the benefit of clients.
We are anxious to serve you.

An Investment Banking House of Service

NVillTE-Pill LLr^
IA T W K S T M B N T
-------- o I J A K K E K S o -

c ,

o.

DUBUQUE, IOWA

DAVENPORT, IOWA

OMAHA, NEBRASKA

B. & I. Building

F irst N a t’l Bank Bldg.

Bankers Reserve L ife Bldg.

DES MOINES, IOWA
219 Securities Bldg.


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Federal Reserve Bank of St. Louis

May, 1926

CHICAGO, ILLINOIS
137 S. La Salle St. ~

, E. R. Root, one of the w orld’s g reatest
au th o rities on bees, says th a t it takes
nearly 100,000 miles of bee-line trav el to
g ath er a pound of honey. Mr. Root also
says th a t “in the height of the' season
bees are very efficient. They do not work
under a boss or a m anager, and all of
them w ork together as one individual
fo r the good of the en tire com m unity.”
The trouble w ith most of us is th a t we
are not w illing to trav el the fu ll dis­
tance in order to reach the goal. F u rth er-

THE

May, 1926

NORTHWESTERN

BANKER

TWELVE MILES OF CHECKS
90,000 checks per day are handled in th e Inside C lear­
ings D epartm ent of th e F irst Wisconsin. If these
w ere p u t end to end, they would cover a distance
of over 12 miles. Each of the 36 clerks in this de­
p artm en t handles on an average 46,000 checks
per month.
7,000 is th e average num ber of people who daily cross
th e threshold of th e F irst Wisconsin.
60.000 of M ilw aukee’s citizens have savings accounts in
th e F irst Wisconsin.
16.000 M ilw aukee folks draw th e ir checks on the F irst
Wisconsin.
400 people are em ployed by th e F irst W isconsin.
2/3 of th e banks of W isconsin are correspondents of
th e F irst Wisconsin.

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 ----M ILW AUKEE
Capital and Surplus Ten Million Dollars

Points o f Interest
in h le w Y o r\ City

----------------—At the New York End
Our broad facilities are supplemented
by resources ample for the needs of
sound business and by the personal
co-operation of our officers in meet­
ing individual requirements.
«gM U SE U M O F N A T U R A L H IS T O R Y

Founded and chartered in 1869 to develop
th e stu d y o f natural science and to advance
th e general know ledge o f kindred subjects.
T his famous institution, all o f th e buildings
o f w h ich are n o t y et com pleted, is a popular
spot for sightseers.

THE

BANmm
ESTABLISHED 1812
N E W YO RK C IT Y
C apital, Surplus a n d U n d ivid ed Profits over $11,000,000


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Federal Reserve Bank of St. Louis

23

24

THE

NORTHWESTERN

BANKER

May, 1926

more, we are usually more interested in
our personal am bitions and the sa tisfa c ­
tion of our personal desires th a n we are
to work fo r the good of the com munity.
M ost of us can learn m any lessons from
the bee.

Scotts Creeping Bent
for P erfect Law ns/
S o d in six w eeks! A rich, v e lv e ty stretch o f la w n
th a t ch o k es o u t w eed s b efore th ey can grow ! A
d eep , th ick , u n iform tu rf th a t m akes you r h o m e a
b ea u ty sp o t! T h a t’s w h a t y o u ’ll get i f y o u p la n t
S c o tt’s C reep in g B ent.

T he N ew Super-L aw n
C ree p in g B en t — lo n g recognized as th e id e al grass fo r g o lf
p u ttin g greens — is n o w p ro d u cin g S u p er Law ns. In stea d o f
sow ing seed, you p la n t s to lo n s o r th e ch o p p e d g ra s s —-and
in a few w eeks you h av e a lu x u ria n t law n like th e d ee p g reen
pile o f a T u rk ish c a rp e t!

O . M . SCO TT & SO NS CO .
1 1 6 Main Street

MARYSVILLE, OHIO

This little hook
is free to you. It is a valuable
treatise on how you can have
beautiful lawns. W rite today
for your copy.

John K. Tener, president of the First
National Bank of Charleroi, Pa., believes
th a t bankers should leave sidelines alone
and stick to the banking business. In a
recent article he said : “ So long as b an k ­
ers are in the banking business, let them
stick to banking. I f they deal in advice,
let it be advice concerning finance, and
not concerning the raisin g of chickens
or the itin erary of a to u r of E urope.”
M ost bankers are p erfectly w illing to
deal in financial advice exclusively, b ut
from the num ber and v ariety of ques­
tions asked them every day, they are
forced to give advice on a thousand other
subjects or be placed in the “dum bbell”
class by th eir patrons.
The Farm Mortgage Bankers’ Associa­
tion of America points out th a t the loans
of the fed eral lands banks in 1925 were
$32,000,155 less th an in 1924. F arm
credit is good, this rep o rt states, b ut by
experience the farm er has learned th a t
there are delusions about the “loans th a t

Your N ew York Correspondent’s
Knowledge o f Foreign Trade
? | ''H E Seaboard’s technical know ledge o f Foreign
Banking in all its phases is at the disposal o f
our correspondent banks. Specific problems presented
to us by mail or w ire receive thoughtful study and
prompt action.

T H E SEABOARD N A T IO N A L BANK
o f the C ity o f N e w Y o rk
m a i n


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Federal Reserve Bank of St. Louis

o f f i c e s

:

b r o a d

a n d

b e a v e r

s t r e e t s

May, 1926

THE

never come due” which the land banks
advertise to make.
The fed eral land banks had o u tstan d ­
ing $982,192,440 of tax -free bonds a t the
close of 1925, and the general public is
obliged to pay the taxes w hich the own­
ers of these bonds escape paying.
I t is to be hoped th a t the tim e is not
f a r d ista n t when the fu tu re issuance of
tax-exem pt bonds, either by the national
governm ent or by sta te or m unicipali­
ties, will be illegal.
W ill Rose, w riting in S cribner’s M aga­
zine on the sm all tow n banker, predicts
th a t, “ The day is coming when even the
small bank will consider another official
th a n the cashier essential. This m an will
be the m anager of the prom otion of bu si­
ness-building or business-aid, or w h at­
ever you w ant to call it, departm en t.”
W e h eartily agree w ith Mr. Rose’s p re ­
diction, because it is a ra th e r difficult
task fo r one m an to pass on a credit of a
ban k ’s custom ers and conduct the m ulti­
farious duties belonging to a cashier’s po­
sition and a t the same tim e give sufficient
thought to business-building and deposit­
g ettin g ideas fo r his institu tio n .
B ank directors are realizing more and
more th a t there m ust be a constant effort
p u t fo rth to secure new accounts and in ­
vite new business into th e ir banks if they
are to expect th e ir in stitu tio n s to serve
th e ir com m unities efficiently and a t the
same tim e m ake th e ir dividend record
w hat they should.
According to a decision recently
handed down by the suprem e court in
M ississippi, when a M ississippi sta te
bank, which has been operating under
the gu aran tee law fails, a stockholder is
liable fo r the p a r value of his stock if
the assets are insufficient to pay depos­
itors.
A nother exam ple w here the guarantee
law does not w ork out as it was originally
planned. Some day the public and “some
b ankers” will wake up to the fa c t th a t
the gu aran tee law in most every state
Avhere it has been trie d has proven a de­
lusion and a snare.
M. A. Graettinger, secretary of the Il­
linois Bankers’ Association, has been
using the influence of his association to
see th a t the H ull am endm ent be le ft in
the M cFadden bill. The H ull am end­
m ent in substance provided th a t no n a ­
tional bank or m ember bank of the fed ­
eral reserve system should a t any tim e
in the fu tu re establish a branch bank in
any sta te w here a t the tim e of the p as­
sage of th e M cFadden bill branch b an k ­
ing was not perm itted by sta te law.
The bill passed the House w ith the H ull
am endm ent contained therein, bu t when
it passed the Senate com m ittee on ban k ­
ing and currency, the Senate com m ittee
was influenced to strik e out this provi-


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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

25

26

TH E

B

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

R A N K E R

EDLAM!

ABEL! B U N K i

A fter all the co n fu sio n o f in tern ation al issues and dem ands
— through all the B ed lam o f n ational p o licies and p olitics,
on e great fact stands out clear and rad iant from th e L eague
o f N ation s A ssem bly—

Controversies all tended towards each nation having suf­
ficient representation in the World’s Greatest Forum for
Peace, The League.
T hrough the B abel o f m any
tongues on e m essage was firm
and in sisten t— P eace M ust B e
P erm anent. W ar m ust be ob ­
literated.
B efo re the in terestin g ev i­
d en ce o f S w ed en ’s stand in the
co n feren ce o f n ations a strong
b low was given to such p olitical
h u n k as “ T he L eague is a
superstate w h erein the sm aller
n ations w ill have little p ow er.”
A fter gen erations o f th e old
regim e, w h en years o f p lotting
en d ed in war, su rely no in te lli­
gen t person w ill begrudge the
fe w years o f p lan n in g and ad­
ju stm ent necessary to p roduce
an Era o f P eace.
Learn the

Facts.

HONORABLE E V ER ETT COLEY
‘ ‘I f th e L e a g u e of N a ti o n s d id
n o th i n g e ls e b u t b r in g th e p e o p le of
t h e v a r i o u s N a tio n s to g e th e r in c o n ­
f e r e n c e i t w o u ld j u s t i f y i t s e x i s t ­
e n c e .’ ’

T he M a) issue o f the L eague o f N ation s N ew s has up-tothe-m inute articles on th e activities of the League. A copy
w ill be forw arded, free.
JO H N H. CLARKE
P resid en t
GEORGE W. W ICK ER SH AM
P resid en t Board of D irectors

K in d ly forw ard , free, M ay issu e
L eague of N a tio n s N ew s.

M RS. CARRIE CHAPM AN CATT
V ice P resid en t Board of D irectors

N a m e __________________________________________

C HARLES H. STRONG
V ice P resid en t Board of D irectors

A d d r e s s _______________________________________

HAM ILTON HOLT
Chairman Finance Committee

C ity

CHARLES C. BA UER
E xecu tive D irector

State

____________________________________________

_____________________________

The League of Nations Non-Partisan
Association, Inc.
6 E ast 39th S tre e t, N ew Y ork, N. Y.


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Federal Reserve Bank of St. Louis

May, 1926

sion. I t is fo r the resto ratio n of the H ull
am endm ent th a t S ecretary G raettin g er
and the Illinois association are so much
interested.
I f A m erican banking has stood fo r
an y thing it has stood fo r the individual
in itiativ e of individually-ow ned banks,
and here’s hoping th e tim e will never
come when any group or groups of big
in stitu tio n s will control the banking re ­
sources of th is country.
W. C. Gordon, president of the Farm­
ers Savings Bank of Marshall, Mo., is
chairm an of the legislative com mittee of
the M issouri B an k ers’ A ssociation, which
has been looking into the reason fo r bank
failu res in th a t sta te during the p ast
year.
M r. Gordon says th a t these failu res
have not been due to the inadequacy of
the banking laws of M issouri, nor fo r
lack of p roper exam ination by the state
finance departm ent, b ut have sim ply been
the n a tu ra l resu lts of the W orld W ar,
which caused such a trem endous eco­
nomic upheaval.
Melvin A. Traylor, president of the
First National Bank of Chicago, knows
the real value of advertising, both fo r
m an u factu rers and fo r financial in stitu ­
tions. In an address before the ad v er­
tising council of the Chicago A ssociation
of Commerce? Mr. T raylor brought out
the po in t th a t “advertising, rig h tly done,
pays fo r itself.”
He also said, in re fe rrin g to ad v ertis­
ing fo r banks and financial in stitu tio n s:
“I t is sometimes not as easy to trace im­
m ediate and tangible resu lts to ad v e rtis­
ing in the financial field as it is in con­
nection w ith a com mercial product.
Much of financial advertising m ust be of
an in stitu tio n al character. In the long
run, however, it is ju s t as effective, and
the bank th a t does not recognize the
power of ad v ertisin g is behind the tim es.”
T hat la st sentence should be placed
above the threshold of every financial in ­
stitu tio n in Am erica. I t is well w orth
rem em bering, because the bank today
which does not advertise is losing one of
its g rea test o p portunities to hold the
business it has and a t the same tim e
create, develop and encourage new busi­
ness.
W. P. Roper, executive vice president
of the Alexander National Bank of St.
Petersburg, Fla., has retu rn ed to the
bank a f te r a m onth’s illness and confine­
m ent in the hospital. M r. Roper is stead ­
ily gaining his stren g th , and his num er­
ous frien d s are hopeful th a t w ithin a few
weeks he will be in good physical condi­
tion again.
Mr. Roper was recently appointed on
a com m ittee of the St. P etersb u rg M er­
c h a n ts’ A ssociation to analyze the in ­
crease in rate s which have been made by

May, 1926

THE

the P en in su lar Telephone Company. This
is a very im p o rtan t com mittee, because
if the rate s asked by the telephone com­
pany are g ran te d it w ill am ount to $100,000 p er year, based on the num ber of
telephones in use a t the present tim e in
St. P etersburg.
A country banker in South Dakota,
w riting to the W all S tre et Jo u rn al, says,
“ T hat he does not believe the deposit
g u aran tee has a ttra c te d a single dollar
to any bank in th a t state, but it was
largely responsible fo r bad banking and
consequent failu re s in N orth D akota.”
The gu aran tee of bank deposits m erely
places a prem ium on bad banking, and
“any banker who really needs the g u a r­
antee law has no business being a ban k ­
er,” according to the W all S tre et J o u r­
nal.
W. S. Lucas, chairman of the board of
the Commerce Trust Company of Kansas
City, has been elected p resident of the
K ansas C ity C learing H ouse A ssociation,
according to a radiogram ju st received
from F re d M. S taker, the efficient and
effective m anager of the publicity d e p a rt­
m ent of th a t g rea t and grow ing in stitu ­
tion.
Famous Last Words
Fam ous last words th a t have echoed and
re-echoed around the world and have had
an im portant bearing, no doubt, on the
claims presented under thousands of acci­
dent insurance policies, are given in a
recent issue of L ife. H ere they a r e :
“I wonder if it’s loaded. I ’ll look down
the barrel and see.”
“ Oh, lis te n ! T hat’s the tra in whistle.
Step on the accelerator and we’ll try to
get across before it comes.”
“ They say these things can’t possibly
explode, no m atter how much you throw
them around.”
“I wonder if this rope will hold my
weight.”
“I t ’s no fun swimming around here.
I ’m going out beyond the life lines.”
“W hich one of these is the th ird rail,
anyway ?”
“T hat firecracker m ust have gone out.
I ’ll light it again.”
“ W atch me skate out past the ‘D anger’
sign. I bet I can touch it.”
“ These traffic policemen think they own
the city. They can’t stop me. I ’m going
to cross the street now. Let the chauffeurs
look out fo r me.”
“ There’s only one way to m anage a
mule. W alk right up back of him and
surprise him.”
“W hat a funny noise th a t snake makes.
I think I ’ll step on him.”
“I ’ve never driven a car in traffic before.
B ut they say it’s perfectly sim ple.”
“I think I ’ll mix a little nitric acid w ith
this chloride of potassium and see what
h ap p e n s.”


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

NORTHWESTERN

BANKER

Y o u r Banking N eeds
A re N o t Fully
C overed Unless You
C arry an A cco u n t
in Philadelphia—
Consider these advantages w hich our
correspondents enjoy:
All items received at par.
Telegraphic transfers w ithout charge.
Interest on balances at liberal rates.
Continuously
partm ent.

operating T ransit De­

24-hour-direct-collection service.
Y our share of our daily volume of
150,000 cash and collection items.

Place your Philadelphia account w ith
this strong, w ell-equipped bank.

THE
PHILADELPHIA - GIRARD
N A T I O N A L BANK
PH ILA D ELPH IA , PA.
Capital, Surplus and Profits . . $ 2 7 ,6 0 0 ,0 0 0

27

THE

28

NORTHWESTERN

BANKER

REAL SERVICE
To serve our clients to their
entire satisfaction is our con"
stant aim and ambition.

I
Stanley-H enderson Company
Farm Mortgage Bankers
207-214 Higley Bldg.

Cedar Rapids, Iowa

IN M I A M I
The South Florida Mortgage
Company of Miami, is at your service
to assist you or your customers in
every possible way.
This Company renders the follow­
ing services:
1. Makes mortgage loans on resi­
dential property.
2. Makes appraisements fo r
loaning or investment on
property in southeast Florida.
3. Buys and sells real estate on
a brokerage basis and handles
rentals, property management
and insurance.

We are at your service in this
rapidly growing city which has a
building program placing it in
seventh place among the cities of the
United States.
W rite us to d a y

South F lorida M ortgage C om pany
C ap ital $ 1 0 0 ,0 0 0 .0 0
J. V. Carpenter, President
O. M. Fowler, Vice President
S. Grover Morrow, Vice President
Harry A. Brattin, Secretary

150 S. East First St.


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

Miami, Florida

May, 1926

Los Angeles Bank Grows
One of the financial in stitu tio n s of
Los Angeles which is m aking a ra p id
grow th, is the C alifornia B ank. Over the
la st q u arter, from J a n u a ry 1st, to A pril
12th, 1926, th is bank added $2,515,069.41
to its deposits, th e ir statem en t of the
la tte r date showing to ta l deposits of
$81,126,709.04. On A pril 6, 1925, the
date of the call of su p erin ten d en t of
banks fo r the first q u arte r of la st year,
the deposits of C alifornia B ank were re ­
p orted a t $70,547,655.16. F o r the y ea r’s
period, th erefo re additional deposits
in the am ount of $10,579,053.88 were
added.
In .speaking of the splendid showing
of his in stitu tio n fo r the first q u a rte r of
1926, Lewis E. Bliss, vice p resident, said :
“ The p ast five years have been rem ark ­
able ones in th e grow th of C alifornia
Bank. This grow th has been consistently
keeping pace w ith the developm ent of
Los Angeles. Since 1920 we have trip led
our deposits. F ro m tim e to tim e in the
la st five yeai’s we have m et the need of
the public in establishing convenient
banking homes in grow ing d istricts of
the city and ad jacen t th ereto .”
D uring the last q u arte r the grow th in
deposits of C alifornia B ank was not due
to the acquisition of any new b ank or
banks, which m ight add established de­
posits to the to tal, M r. Bliss pointed
out— b ut rath e r, it has been sound grow th
of public confidence in one of the finest
and m ost conservative banking units of
Los Angeles.
Mr. Bliss and W. J. M urray were visi­
to rs a t the M ay G roup m eeting. Mr.
M u rray who has been connected w ith
C alifornia B ank since 1925, was form erly
su perintendent of banks fo r the sta te of
Iowa, and a fte r his term of service in
th a t capacity he served as vice p resid en t
of the Des Moines N atio n al B ank. F o r
a num ber of years, M u rray was a resi­
dent of the com m unity of E ldorado, leav­
ing the presidency of the F irs t N ational
of th a t place to become sta te su p erin ­
ten d en t of banks of Iowa.
There is always agitation somewhere in
these days going on fo r government in­
surance of one kind or another. There
was a terrible lesson in the cost of govern­
m ent enterprises in the federal operation
of railroads during the war.
A t a recent meeting in W ashington an
interesting story was told of a comparison
made by a skilled engineer of two bridges
near W ashington. The bridge built by
arm y officers cost approxim ately $3,500,000 and took three years to build. The
other bridge ju st like the one built by the
government engineers, was constructed by
a private concern in less than one year
and the cost was less than $1,000,000.
This is a good illustration of the govern­
ment in business.— Casualty Insurer.

TH E

May, 1926

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

B A N K E R

“Is Mr. Business in ? ”
“W hat do you w ant to talk to him
about?” .
“ Golf as a starter. I t is considered the
p ro p er approach.”

^l^llllllllllllll(ÿA^IIIIIIIIIIIIIII^A^IIIIIIIIIIIIIIR?A^lllllllllllllll^^llllllllllllllllâl^lllHIIIIIIIIII^ÏSIIIIIIIIIIIIIII^^IIIIlllllllllll^i!SIII.....

1

In

the

D ir e c t o r s ’ R

29

oom

¡M IIIIIIIIIIIM IM IIM
Teacher (seeking to point out the
wickedness of stealing) : “Now, if I were
to p u t my hand in some one’s pocket and
take out the money in it, w hat would I
be?”
Tommy: “ Please, miss, you’d be his
wife.”
Paging Mr. Dawes
“ Sam ,” asked Mose, “would you rath er
be right than p resident?”
“ Hmm-mm,” m editated Sam.
“Nossuh. A h’d rath e r .be half rig h t an ’ vicepresident.”—Exchange.
Limerix
H ere I sit perched up high on a bough ;
P ersp iratio n ’s adorning my brough.
I am perched here this way
’Cause I happened to stray
In the p ath of a peevish male cough.
— W . T.
There was a young man from Cheyenne,
Bought a bus—sometimes called a tincenne.
I t knocked, tw isted and bumped,
Shook, shimmied and jum ped,
So now he’s a wild Charleston fenne.
—M rs. H . P., Am erican Legion W eekly.
Anything But
The newly m arried man had been p i­
loted into a restau ran t by his old friend.
H e studied the menu fo r a moment and
then rose abruptly.
“L et’s get out of here,” he gasped.
“L et’s try another place.”
“W h at’s the m atter with this place?”
asked his friend in wonderment.
“Man, don’t you see w hat they have at
the head of that bill of fa re ? ” answered
the benedict. “ Home cooking!”
Ambition
K indly Mrs. H enderson had taken an
interest in the tram p who appeared at her
door one morning.
“ So you can’t read nor w rite?” she said
to him. “Dear, d e a r !”
“No, mum,” replied the tram p. “B ut
Im thinkin’ of ta k in ’ up a correspondence
course in readin.’ ’
Still More Leisure
“Y our son still a patrolm an, S i?”
“Nope. They p u t him in plain clothes
so nobody knows when he’s loafin’ now.”
— Am erican Legion W eekly.
Well, That’s Settled
A daughter was born to Mr. and Mrs.
A--------- C--------- of Pierce St. This is
their child.—Pottstow n (P a.) Republican.

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

W here’s the Residence Burglary Agent?
M istress: “You say you worked fo r
Mrs. A. Lincoln W illiams. Can you prove
it? ”
M aid: “Yessum. A h’s got a whole
bunch of spoons and things w if deir
’nitials on ’em.”— Casualty Insurer.

Old Colored M ammy: “Ah wants a tic­
ket fo ’ Florence.”
Ticket A gent (after ten minutes of
w earying thum bing over of railroad
guides) : “W here is Florence, m adam ?”
Old Colored M ammy: “ S ettin’ over dar
on de bench, suh.”

Page Behrendt-Levy !
“ The Freshm an,” featu rin g H arold
Lloyd, was considered so uproarious by a
Montgomery, Alabama, theatre, th at it sug­
gested to its patrons a liability policy, in­
suring them against broken ribs, jaw s and
tired bodies caused by too much laughter.
-—U nited States Review.

“ Can you give a good description of
your absconding cashier?” suavely asked
the detective.
“W ell,” answered the banker, “ I be­
lieve he’s about 5 feet 5 inches tall and
about $7,000 short.”—Am erican Legion
W eekly.

The Royal Union Life
Insurance Company
Des Moines, Iowa

S tr o n g and Progressive
I
Paid to Policyholders—
Over $21,000,000.00
Insurance in Force—
Over $148,000,000.00
I
A. C. T u ck er, P resid en t
D . C. C o stello , S ecy .

W m . K o ch , V ice Pres.

T IIE

30

Reorganize Wm. Elliott Graves
Company
Announcement was made last m onth of
plans which will be of interest to bankers
generally throughout the U nited States
and Canada, m arking the completion of
an organization to carry on the work of
the late W illiam E lliott Graves, nationally
known bank deposit builder o f Chicago,
who passed away last October.
Bankers and nationally known advertis­
ing experts will be added to the Board of
D irectors of the organization, fulfilling the
original plan of Mr. Graves in organizing
the business so widely known under the
name o f Wm. E lliott Graves, Inc.

NORTHWESTERN

BANKER

E. E. McCleish, long affiliated w ith Mr.
Graves and recognized n ationally through
his w ork in the financial field, has been
elected presid en t and general m anager,
and Theodore Teift W eldon, advertising
m anager of the N o rth ern T ru st company,
Chicago, first vice p resident, while Mrs.
G raves becomes the new chairm an of the
board. E xecutive offices are located in
the Peoples T ru st building, 30 N. M ichi­
gan avenue, Chicago.
Mr. McCleish, recognized as one of the
leading ad v ertisin g men of the country,
was fo r several years, Chief of Copy
and D irector of P u b licity and Sales P ro ­
m otion fo r the W illys-O verland and affil­
iated com panies of Toledo, p rio r to which

May, 1926

tim e he was D irector of E ducation, W el­
fare and A dvertising of the C urtiss A ero­
plane & M otor Corporation. H e has also
been an in stru c to r in sales and ad v e rtis­
ing a t a num ber of colleges and univer-

Guaranty Trust Company
of New York
140 B roadw ay
EL E. M cC L EISH
LONDON

P A R IS

BR U SSE LS

L IV E R P O O L

HAVRE

ANTW ERP

C ondensed S tatem en t, M arch 25, 1926

sities and is constantly in dem and as a
speaker before business and banking or­
ganizations.
M r. W eldon, who has been active in the
w ork of the F in an c ial A dvertisers Asso-

RESOURCES
Cash on H and , in F ed eral R eserve B ank
and D ue from B anks and B a n k ers___________$ 1 1 7 ,1 8 2 ,3 9 7 .5 0
U. S. G overn m ent B onds and C ertificates_____
3 2 ,8 6 3 ,3 3 9 .1 0
P u b lic S e c u r it ie s _____________________________
1 5 ,4 2 0 ,2 7 8 .8 2
O ther S e c u r i t i e s _________________
2 2 ,0 7 7 ,2 9 7 .7 8
L oans and B ills P u rch a sed ___________________ 3 5 0 ,8 1 5 ,7 3 2 .8 0
R eal E sta te B onds and M o r tg a g es_____________
1 ,6 4 0 ,5 0 0 .0 0
Item s in T ran sit w ith F oreign B ra n ch es_______
4 ,0 2 3 ,0 2 3 .3 2
C redits G ranted on A c c e p ta n c e s_____________
4 0 ,2 0 8 ,0 5 9 .9 8
R eal E s t a t e __________________________________
8 ,0 9 9 ,8 6 1 .2 6
A ccru ed In terest and A ccou n ts R e c e iv a b le ___
6 ,4 8 4 ,5 3 9 .3 8
$ 5 9 8 ,8 1 5 ,0 2 9 .9 4
LIABILITIES
C a p i t a l _________________________________________ $ 2 5 ,0 0 0 ,0 0 0 .0 0
Surplus F u n d _________________________________
1 5 ,0 0 0 ,0 0 0 .0 0
U n d ivid ed P r o f i t s ____________________________
7 ,5 8 8 ,1 5 8 .1 5
$ 4 7 ,5 8 8 ,1 5 8 .1 5
A ccru ed D iv id e n d ____________________________
7 0 8 ,0 0 0 .0 0
A ccru ed In terest, R eserve for T axes, e tc _____
5 ,1 7 6 ,2 7 5 .5 3
A c cep ta n ces _________________________________
4 0 ,2 0 8 ,0 5 9 .9 8
O u tstan d in g T reasu rer’s C h eck s______________
1 8 ,1 3 5 ,0 5 6 .8 9
D e p o s i t s ______________________________________ 4 8 6 ,9 9 9 ,4 7 9 .3 9
$ 5 9 8 ,8 1 5 ,0 2 9 .9 4


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

TH EODORE T. W ELDO N

ciation, is an o u tstan d in g exponent of
m erchandising as applied to banking.
D uring the la st five years in which he
has conducted the ad v ertisin g of the

May, 1926

THE

N o rth ern T ru st Company he has proved
th a t th is can be accom plished, p a rtic u ­
la rly in T ru sts U nder W ill, which is the
business his bank has been interested in
securing. Mr. W eldon has made n o t­
able contributions to the advancem ent
of financial advertisin g and business
building m ethods, and it is in recognition
of his ability as a director of financial
advertsing especially in the tru s t field
th a t he has chosen by G raves Service.
P rio r to his connection w ith the N o rth ­
ern T ru st Company, M r. W eldon was en­
gaged in the general advertising field,
having been adv ertisin g m anager of W il­
son B rothers of Chicago, and vice presi­
dent of H e rb e rt & Company of P itts ­
burgh.
More and Better Play
V arious F lo rid a interests are planning
a unified advertising cam paign to interest
the country in the allurements of their
state as a summer resort. Last summer
F lorida had an enormous arm y of visitors,
but a m ajority of them probably had the
single purpose of stum bling on a milliondollar profit in real estate. P rim arily
F lo rid a is still regarded as a state to
spend the w inter in. Now an advertising
cam paign is planned to bring visitors dur­
ing the summer as well, so as to give the
state a year-round tourist business.
W hile F lorida in the south seeks summer
visitors, Quebec in the north seeks w inter
visitors. These two facts have a relation.
They indicate a highly im portant social
change in the U nited States and Canada.
This change is a definite growth of the
play habit. There has been a rem arkable
increase in the num ber of people inclined
and able to play more at various times of
the year, instead of during a brief period
only.
U ntil recently only the rich thought of
taking vacations at some other season
than the summer. Now the time of year is
coming to be considered less im portant
than the fact of the vacation itself. And
the essence of a vacation is a change of
environm ent and activity.
In summer, people do not necessarily
seek a cooler p la ce; in w inter they do not
necessarily seek a warm resort. They seek
an enjoyable place where they may in ­
dulge in outdoor recreations. In summer
instead of fleeing northw ard they may
hasten to the F lorida beaches: In w inter
instead of going south they may seek the
w inter sports at Quebec or at Banff, in
the Canadian Rockies.
A vacation is now considered a time fo r
play, instead of a period of tem porary
escape from oppressive heat. The play
habit is conquering. This fact is of im­
portance to all of us, both in our personal
and our business relations.—From Chicago
Journal of Commerce.
Life is not so short but th a t there is al­
ways tim e enough fo r courtesy.— Emerson.

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

NORTHWESTERN

BANKER

31

Over 50 Years
in One Business
This organization has had
over 50 years of unparalled
experience in designing and
installing the pro p er type of
B ank Fixtures i n b a n k s
throughout the entire n o rth ­
west.
If you have already made
your plans for a new b u ild ­
ing, ask your c o n t r a c t o r
about the F isher Co. special­
ist in bank fixture work for
banks.

% Thoughtful Bankers Consult the Fisher Company

(3

BANK nxTUWE HEA DOtlj ABTE

(S'/) a r ie s (P ity, l a .

THE

32

NORTHWESTERN

May, 1926

BANKER

P erson al P aragraph s

A Specialized
Service
for Banks and Bankers
which is the result of more
than sixty years of experi­
ence is offered by

THE FIRST
NATIONAL
B A N K OF
CHI CAGO
and

THE FIRST
TRUST and
SAVINGS
BANK
Complete facilities are pro­
vided for active and inac­
tive accounts, collections,
bills of lading, investments
and foreign e x c h a n g e
transactions
FR A N K O. W ETM ORE, Chairman
M E L V IN A. TRAYLOR, P resid en t

Combined Resources
Exceed $400,000,000

R. T. Forbes, vice presid en t of the Con­
tin e n ta l and Commercial N ational B ank,
Chicago, passed aw ay recently a t his
home. Mr. Forbes has served as a bank
official fo r more th a n th irty years, and
fo r the last fo u r yfiars has been an of­
ficer in the C ontinental and Commercial.
H e always took an active p a r t in the
civic affairs of the several com m unities
in which he lived, and was a m em ber of
the South Shore C ountry Club, U nion
League Club, M id-Day Club, and a
form er governor and trea su rer of Olym­
pia F ields C ountry Club.
— $—
Dr. A. Brinkman, a professor of H eidelburg U niversity, was a recent visitor
to Chicago, w here he was the guest of
D r. W a lte r L ichtenstein, executive sec­
re ta ry of the F irs t N ational Bank.
—

$—

A. D. Welton, form erly advertising
m anager of the C ontinental and Commer­
cial N ational Bank of Chicago, has taken
a position on th e editorial staff of the
C urtis Publications. A p a rt of his time
will also be devoted to financial ad v er­
tising w ith M eyer-Both Company, Chi­
cago.
Frank Lincoln Johnson, vice p resid en t
of the N ational A ssociation of R eal E s­
ta te Boards, and chairm an o f its m o rt­
gage and finance division, is dead a t his
home in Oak P ark , Illinois. M r. Johnson
had been active fo r m any years in real
estate business in Chicago, and was a
leader in the safeguarding of real estate
securities.

Homer D. Ballard, fo r several years
has been associated w ith the investm ent
business of M inneapolis, was recently
elected p resid en t of B allard & Company.
H e had been vice presid en t of the or­
ganization fo r the p ast twro years.
— $—
Dan V. Stephens, presid en t of the
S tate B ank of F rem ont, F rem ont, Ne­
braska, has recently filed am ended a r ti­
cles of incorporation w ith th e secretary
of th a t state, to increase the capital of
the S tate B ank of F rem ont from $50,000
to $75,000.
—$—
John S. Broeksmit, vice president of
the H a rris T ru st and Savings B ank of
Chicago, was a recent v isito r in Clinton,
Iowa, w here he was the guest of Capt.
George W . D ulany, J r . Mr. Broeksm it
is a native of Iowa, having been born
in Cedar Rapids, and received his early
bank train in g there.
— $—
Oscar E. Dooly, who fo r several years
has been vice p resid en t of the M echanics
& M etals N ational B ank of New York,
has resigned his position and retu rn ed to
his home in H abersham county, Georgia.
Mr. Dooly has wished to re tire fo r some
time, and is g ra tify in g a long-cherished
wish when he retu rn s to the South.
— $—
Lucius Teter, presid en t of the Chicago
T ru st Company, re tu rn in g recen tly a fte r
a stay of several weeks in F rance, ex­
pressed the opinion th a t the F ren ch gov­
ernm ent is m aking an eafn est effort to
balance its budget. “ I am more th a n

A pril 1st to 17 th —

$ 1,000,414 .79 !

H E M idland National Bank and T rust Company, M in­
neapolis, secured more than a Million Dollars of new
business in the first 17 days of a 3-m onths’ cam paign de­
signed and conducted for them by our organization.
The initial deposits on new checking accounts are averag­
ing nearly $3,000 and on new savings accounts they are
averaging over $350.

T

No p re m iu m s, coin banks or advertisin g
fo r sale! . No profession al solicitors!

Our campaigns produced $22,881,000 of new business for
bankers in 1925. There is no syndicated m aterial— each
cam paign is individually prepared. W rite for the facts—
no obligation whatever.

T . H A R R IS SM IT H & COM PANY
Bank D eposit B uilders
231 S. La S a lle S tr e e t


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

CH IC AG O

THE

May, 1926

ever convinced, ” said M r. T eter, ‘‘th a t
the F ren ch are doing all in th e ir pow er
to w ork out of th e ir pressing financing
problem s. Conditions ap p e ar properous
over there and the outlook seems most
prom ising. ’ ’
Mr. T eter was accom panied by M rs.
T eter and th e ir daughter.
Festus J. Wade, presid en t of the M er­
cantile T rust Company of St. Louis, has
sailed on the A quitania fo r an extended
business and pleasure tr ip throughout
Europe.
The trip includes E ngland,
F rance, G erm any, Italy , Belgium, Sw itz­
erland, and Irelan d, w here he was born.

NORTHWESTERN

BANKER

profits of the in stitu tio n exceed $10,000,000, w ith deposits of $88,000,000.
Frank C. Waples, presid en t of the M id­
land M ortgage Company of Cedar Rapids,
Iowa, has le ft fo r an extended tr ip in the
E ast, to New York, Boston, and oth er
points. M r. W aples is chairm an of the
m em bership com m ittee of the N ational
F arm M ortgage A ssociation, and a mem­
ber of the executive board. W hile in
D etroit, he is to speak a t a m eeting of
the D etro it City M ortgage B ankers A s­
sociation.
— $—
J. L. Myers, vice p resid en t of the
G eneral M otors A cceptance Corporation,

was a Des Moines v isito r la st m onth. H e
has been m aking his sem i-annual business
trip through the northw est and rep o rts
th a t business fo r his com pany is excep­
tionally good throughout the te rrito ry .
Home, in one form or another, is the
great object of life.— Timothy Titcomb.
School days come again, and they are
better days than a form er generation
knew w ith its honest-to-goodness whal­
ings, smelly slates and queer little desks
with an ink bottle in one corner. But
there has been no improvement over the
old F rid a y afternoon spelling bees.— Chi­
cago Journal o f Commerce.

Elected V ice President
Thomas F . F o rd has been elected a sec­
ond vice president of The F orem an N a­
tional B ank, Chicago, according to an an ­
nouncem ent made by officers of the bank.

TH E
FO REM A N
BANKS
FOUNDED 1862

TH OM AS F. FORD

Mr. F ord, who is one of the m ost popu­
la r men calling on country banks, has
had a wide experience in bank work, d a t­
ing back alm ost tw enty years. S ta rtin g
about eight years ago, he began traveling
through Iow a and his activities were con­
fined chiefly to this state fo r a year, a fte r
which he covered W isconsin, Indiana,
Illinois and N ebraska.
The F orem an Banks, Avith a record of
sixty-four years, have shoAvn unusual
grow th in the p ast few years. The com­
bined capital, surplus and undivided

Southern California Banks
C o r r e s p o n d e n c e i n v i t e d fro m B a n k e r s
d e s i r i n g to b u y c o n t r o l in C a lifo rn ia .
S A N D E R S - M c C V L L O C H C O .,
B a n k B ro k ers,
S u i t e 1 0 0 5 , S t o r y B l d g . , L.O« A n g e l e s .


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

33

W hatever banking service you
n ee d , w e a re e q u i p p e d t o
serve you. W e especially invite
the business of banks seeking
a m e t r o p o l i t a n connection.

T h e F o re m a n N atio n al B a n k
T h e F o re m a n T r u s t a n d S a v in g s B a n k
La Salle and W ashington Sts.
Chicago
C om bined Capital, S urplus a n d U ndivided Profits exceed
$ 1 0 ,0 0 0 ,0 0 0

34

THE

NORTHWESTERN

BANKER

Convention W ill Take Up Broad
Bank Problems
N K IN G problem s th a t concern not
B Aonly
the advertising executives of
banks, b u t new problem s th a t con­
fro n t boards of directors and determ ine
broad policies, are to be taken up a t the
m eeting of the F inan cial A dvertisers A s­
sociation in D etroit in Septem ber. Com­
m enting on this phase of th eir program ,
the publicity com mittee of the F . A. A.
has sent out the follow ing interesting
b u lle tin :

CHATHAM

“L et’s read, by way of introduction a
very recent advertisem ent of the Cleve­
land T ru st C om pany: ‘M any labor- sav­
ing and pleasure-bringing devices and ap ­
pliances can no longer be considered lux­
uries. They p u t color into w hat would
otherw ise be only a drab existence. A
Cleveland T ru st savings account provides
them. Y et a w ord of caution. Buy only
a t prices you can afford and not u n til
your bank account includes a large

O V E R 1 0 0 Y E A R S O F C O M M E R C IA L B A N K I N G

p H E N j)ç

^ÏONALBA^

ÌROstcompaNÌ

Length of Years
and Breadth
of Service

TN ITS one hundred and fourteenth
year, Chatham Phénix believes
that it is more advantageously situated than ever before to render
correspondent banks the type of
service they require.
The world is its banking field. Both
in resources and in connections it is
amply qualified to give the fullest
degree of cooperation.
In this belief, we cordially invite
your correspondence.

M AIN OFFICE
149 Broadway, Corner Liberty Street
N ew York City
RESOURCES


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

OVER

A

QUARTER

BILLION

DOLLARS

May, 1926

enough am ount to care fo r emergencies
like illness or unem ploym ent.’ The title
of this advertisem ent is ‘To Make L ife
P lea san ter’ and the illu stratio n , s’helpus,
is a Young Couple A dm iring a Gorgeous
Car a t the Autom obile Show. I t needs
no label and has none.
“W ith his ear to the ground, the young
m an who w rote th a t ad sees the h an d ­
w ritin g on the w all— while we are m ixing
our m etaphors a b it— and the straw s
th a t p o in t the direction of the wind. I t ’s
considerable storm th a t’s brew ing, too,
which we know fo r w hat it is-—in sta ll­
m ent buying—-and call it som ething al­
m ost different again—the euphem istic de­
ferre d paym ent— variously estim ated a t
five billion to eight billion dollars a year
eluding the hanks.
“Now, we cannot sta te positively th a t
the Cleveland T ru st w riter drew his in ­
sp iratio n from the convention of the F i­
nancial A dvertisers Association in Co­
lumbus last fall. W e happen to know,
however, th a t he was th ere w ith an in ­
conspicuous notebook, and th a t M artin
L. Pierce, of the H oover Company, vig­
orously defended in stallm ent buying in
the course of his address a t one of the
general sessions. E nsued a sp irited dis­
cussion th a t was a revelation.
“ Since then, of course, th e problem
has assum ed the proportions of w hat
some of our economists are pleased to
call a menace. The business and finan­
cial press is fu ll of it— on the one side
m a n u factu rers and public unanim ously
pro, and on the oth er side bankers fra n k ­
ly con, or pro w ith reservations. I t is
the kind of th in g th a t upsets and recon­
stru cts long established plans of living,
dem anding ad ju stm en t of business and
banking to it and th erefo re deserving the
atten tio n of the best b rain s in business
fo r its solution.
“F o rtu n a te ly , more and more bank
executives— in high places— are begin­
ning to realize the im portance of the
p a rt th a t financial ad v ertisin g can play
in questions like this vital to the busi­
ness, and are p a rtic ip a tin g in the con­
ventions of th e ir men not only trained, in
the technicalities of th e ir trad e, but also,
if they are successful, com petent to in ­
te rp re t changing tendencies and to rec­
ommend policies of public relations for
the in stitu tio n s they serve. The best
th ought of the profession is concentrated
a t the conventions of the F in an cial A d­
vertisers A ssociation and— take it from
this observer from the sidelines— it finds
expi’ession there, forcibly, in terestin g ly
and w ith refresh in g inform ality.
“ This year, we are told, the convention
in D etroit, Septem ber 20-23, will be es­
pecially a ttra c tiv e to executives and all
bank men who are not d irectly concerned
w ith advertising. Though the program is
f a r from complete, it will very likely
stress a num ber of the new problem s th a t
co nfront boards of directors, ra th e r th an

May, 1926

TH E

copy chiefs, and determ ine broad poli­
cies. W hether or not these questions are
form ally scheduled, we m ay expect an
interchange of opinion and practice
tre a tin g such subjects as the free service
evil, the puzzling (a t present) sta te of
business, critical in tern atio n al relations,
‘blue sky’ and investm ent tendencies, and
the public regard in general.
“A t the same tim e, the program , in
charge of Clinton F . B erry, of the U nion
T ru st Company, of D etroit, will neglect
nothing on the technical side of business
building, copy appeal and advertising
progress in each of the d e p a rtm e n ta l.
D etroit, as a convention city, is its own
advertisem ent. W ith one exception, the
en tertain m en t fe a tu re s being planned
need no encomium here. T here’s to be
an “In d u stria l D ay”— unique, inform a­
tive, a memory th a t will last. I t is to
be celebrated at considerable distance from
the C anadian border— on the A m erican
side.”
Each Senator a Sovereign
Few A m ericans realize how great is the
pow er exercised by an individual senator
of the U nited States.
The w ritten rules of the senate are
loose enough, but the unw ritten rules, the
established practices, the m utual courte­

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

35

B A N K E R

sies o f “the finest club in the w orld” are
much worse.
They virtually enable any given senator
to decide whether legislation affecting his
state shall be passed or not. H e usually
finds it sufficient to go to a senate com­
mittee in private and get a bill killed be­
fore it is born. Sometimes, through acci­
dent or inadvertence, the slaughter has to
be done in open senate.
The people had supposed th at the power
of vetoing legislation was lodged by the
constitution in the president alone. But,
in fact, there are in the senate of the
U nited States ninety-six men each of
whom has, in effect, the pow er to veto cer­
tain kinds o f legislation affecting his own
state. This is the sort of invisible govern­
ment hidden behind the courtesy of the
senate.—New Y ork Times.
They say, miracles are p a s t; and we have
our philosophical persons, to make modern
and fam iliar things supernatural and
causeless. Hence is it th a t we make trifles
of te rro rs ; ensconcing ourselves into seem­
ing knowledge, when we should submit our­
selves to an unknown fear.— Shakespeare.
The great man is he who in the midst
of the crowd keeps w ith perfect sweet­
ness the independence of solitude.—
Emerson.

Raised in Marshall County

Justification
for th e e x iste n c e of a
bon d h o u se
rests sq u a r e ­
ly u p o n its
a b i l i t y to
give good fi­
n a n c ia l and
in v e s tm e n t
advice.

I

First Illinois Company
BONDS FOR INVESTMENT

St. Louis

Chicago

Aurora

The ab ove w indow disp lay w as one o f a recent series prepared by the S ecurity
S a y in g s B ank, o f M arshalltow n. The large ear o f corn m easures forty-on e inches
from b u tt to tip, and is seven inches in diam eter. A bout eigh t o f these ears would
m ake a bushel o f sh elled corn. Dr. Y aw ter, president o f the S ecu rity S avin gs, says
th is ear w as produced righ t in M arshall County. The farm ers in th a t lo ca lity are
to be congratulated.


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

Milwaukee

Springfield

THE

36

NORTHWESTERN

M ay , 1926

B A N K E R

Safe Bonds for Banks
yesterday

IIa

n

\

today

—

a

- S 11 r

i

—

:V

tom orrow

i :s C o .

Bonds for Investm ent

Burlington

The Chase National Bank
of the City of New York
57 BROADWAY
Capital
.
.
. $ 20,000,000.00
Surplus and Profits
.
27,178,043.06
Deposits (Dec. 31, 1925) 564,608,785.07
ALBERT H. WIGGIN
Chairman of the B oard and P residen t

M uscatine

Waterloo

THE

HANOVER
N A T IO N A L

BANK
OF THE CITY OF NEW YORK
E stab lish ed 1851

DIRECTORS
Gerhard M. Dahl
Henry W. Cannon
Reeve Schley
Albert H. Wiggin
H. Wendell Endicott
John J. Mitchell
Jeremiah Milbank
Guy E. Tripp
Henry Ollesheimer
James N. Hill
Arthur G. Hoffman
Daniel C. Jackling
F. Edson White
Charles M. Schwab
Alfred P. Sloan, Jr.
Samuel H. Miller
Elisha Walker
Edward R. Tinker
Malcolm G. Chace
Edward T. Nichols
Thomas N. McCarter
Newcomb Carlton
Robert L. Clarkson
Frederick H. Ecker
A m os L. B eaty
Eugene V. R. Thayer
W illia m H. W ood in
Carl J. Schmidlapp

WE INVITE ACCOUNTS
of
Banks, Bankers, Corporations, Firms or Indi­
viduals on favorable terms, and shall be
pleased to meet or correspond with those who
contemplate making changes or opening new
accounts.
Foreign and T rust D epartm ent Facilities


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

Capital
.
. .
Surplus and Profits

$5,000,000
25,000,000

May, 1926

THE

NORTHWESTERN

BANKER

37

Building an Investment Account
and profitable investing implies
S A aF Egreat
deal more than the purchase
of bonds which meet the tests of a
legitim ate investment. I t entails a con­
sideration of the investor’s individual re ­
quirem ents.
Too frequently men and
women buy bonds simply because they
have the money available, with little
thought to the pro p er co-relation of the
securities in their account, and w ith no
conception of the plan or arrangem ent of
the financial reserve most ap p ro p riate fo r
the purpose in mind. N othing demands
more thoughtful consideration, more deli­
cate perception, or a greater nicety of
selection than the advantageous building
and handling of an investment account
th at will adequately satisfy completely
every need of the particu lar investor. The
investm ent th at is wise fo r Jones may be
unwise fo r Smith, and the bond th a t is a
logical investm ent fo r Jones today m ay be
unsuitable fo r him tomorrow. The selec­
tion of investm ent securities should be
guided in every case by a cold analysis of
the individual requirem ents. The wide
variance in these requirem ents clearly in­
dicates th at no universal form ula can be
established. There are, however, a few
general considerations which the investor
should have in m ind when analyzing his
needs and which will prove helpful in de­
term ining the requirem ents of the specific
account.
The most im portant decision confronting
the investor is the am ount of safety he
should buy. Since investments are made
prim arily fo r the purpose of preserving
funds already possessed, th a t degree of
safety which assures the paym ent of in­
terest and the retu rn of principal should
always be the first consideration. B ut in
some instances anything above th at degree
represents a waste of investm ent capital
and an excess th a t m ust be charged up to
poor buying judgm ent. The desire for
unquestioned safety may be somewhat
costly to the investor, as is the universal de­
sire fo r a higher yield than is consistent
with safety.

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

gree of m arketability is also an advantage
to the m an who expects to borrow occasion­
ally by depositing his bonds as collateral.
B ut the average investor, who usually
holds his bonds until m aturity, needs
nothing more than a small portion of his
“ T h e on e th o u g h t that the in v esto r
holdings
in a highly salable form. The
sh o u ld k eep in m in d is that d iversifica­
advantages enjoyed by the bond which is
tio n is n ever a su b stitu te for c a u tio n
traded in in the open m arket are w orth
and good ju d g m en t.
O ne can n ot e x ­
p ect to p rofit b y d iv ersifica tio n if h e
ju st w hat they cost. The investor who
n eg lects to ex erc ise good b u y in g ju d g ­
pays fo r a wider and more active m arket
m en t and p u rch ases b on d s w ith no
than his needs require is w asting his
th o u g h t t o h is in d iv id u a l n eed s or to
capital.
the req u irem en ts of th e accou n t h e is
tryin g to b u ild .
D iv ersifica tio n is a
W here the bond account as a whole
se n sib le attem p t to m in im ize the ev er­
possesses a satisfactory m arketability, ma­
p resen t e lem en t of risk. It is an at­
tu rin g dates are usually of secondary im­
tem p t to m ak e a good in v estm en t ac­
portance. If, however, the investor fore­
cou n t b etter.
It can n ot m ake in v e st­
m en ts in in fe r io r se cu rities p ro fita b le.”
sees a definite fu tu re need fo r his funds,
he should select a m aturity falling within
..............................................................m
ini th at period, and not rely upon the sale of
I t is not to be inferred, however, th a t a long-time bonds. Again, investments made
high degree of safety is not always ad­ in periods of high bond prices should be in
vantageous. Those who are dependent short-time securities, w ith a view to re­
upon the yield from their investments and investing in long-term bonds when interest
those who are investing funds held in tru st rates are more favorable. Lacking any
should always seek a maximum of security. special or definite requirem ents, the in ­
The wealthy man or the young man w ith­ vestor will find it to his advantage to in ­
out dependents might, on the other hand, vest in long-term issues th a t afford a favor­
able yield and th at do not require constant
be investing ju s t as wisely should he p refer
a lower measure of security and a slightly attention.
The effect of taxation upon bond yields
higher rate of return. The investor’s need
fo r safety may vary at different periods, is another very im portant consideration
but at all times it should be determined by fo r the investor. To determine whether
a thoughtful consideration of his financial one should buy taxable or tax-exem pt se­
position and the purpose of the invest­ curities is a very simple m atter, since
ment. H is problem is to get the highest tables showing the true yields of taxable
retu rn on his money consistent ' with bonds of different rates fo r people of
safety, but he should never forget th a t an different incomes are always available. I f
ap p ro p riate measure of security should the net income of a bond a fte r giving
decide the selection.
effect to its taxable status is not greater
M arketability, the readiness w ith which than could be obtained from a tax-exem pt
bonds may be sold, should always be government, state or m unicipal bond, it
sought in an investment, but there is a would be illogical to purchase the taxable
tendency on the p a rt of most investors to
security unless it com pensates in some
over-emphasize its im portance. Banks, other m anner fo r the low yield. Income
corporations, and individuals who are taxes, state and personal taxes are so
m aking tem porary investments and who complicated and so graduated th a t it is
wish to insure the almost constant liquidity impossible to show in a general way their
of their funds will profit most by buying
effect upon bond yields. The individual
bonds th at are readily salable. A high de­ must determine fo r himself, a fte r a

B y J o h n P. M u lle n

Educational Dept. Investment Bankers
Association of America

TH E

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

ANNOUNCEMENT
W E

T A K E

P L E A S U R E

IN

A N N O U N C I N G

T H A T

M r . S. J. Po o l e y
H A S J O I N E D

T H E

S A L E S

C E D A R

O R G A N I Z A T I O N

R A P ID S

B O S T O N

O U R

8c CO.

TRU E, W EBBER
C H IC A G O

O F

O F F I C E

C E D A R

R A P ID S

Carefully Selected
Investments
$ 5,000 Illinois N orthern U tilities Co.
5s of 1957___________________ 941/2

5.40%

10,000 G eneral Motors Acceptance Corp.
5s of 1929___________________ 97.90

5.75%

5.000 Iowa Gas & Electric Co.
6s of 1948__________________ IOII/2

5.85%

5.000 Province of Buenos Aires (A rgentine)
7s of 1952__________________ 9 6 l/2
7.30%

t
Chicago Trust Company
B ond D e p a r tm e n t
CHICAGO
S o u th e a s t C o rn er M o n ro e a n d C la rk

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

B A N K E R

M ay , 1926

thorough study of the tax angle, th at selec­
tion of bonds which will employ his su r­
plus funds in the most productive fashion.
Besides rate of return, m arketability,
desirability from the point of m aturity
and tax exemption, there are many other
bond features th at the investor must take
into consideration. They include chance
fo r profit, stability of price, acceptability
as collateral, convertibility and callability.
The degree in which these qualities exist
in a given security determines the m arket *
value of the bond. W hile they are all
very desirable in themselves, they are
features which m ust be paid fo r according
to their degree; and, unless the investor
is very careful to decide ju st w hat qualities
he desires and the degree of these qualities
necessary to his requirem ents, he is likely
to waste his money-buying value th at
affords very little income.
The most logical, im portant and common
sense foundation fo r the safe and profit­
able building of an investment account,
and, strangely enough, the one most u ni­
versally disregarded, is the principle of
diversification. No security built by the
hand of man will be absolutely safe, since
its safety is related to a fu tu re over which
man has very little control. Some degree
of risk always exists, and it is the purpose
of diversification to minimize and dis­
trib u te this risk in every m anner possible,
while keeping money profitably employed.
To hazard one’s fortune or small savings
is one issue, in one type of issue, or in
one locality would be neither wise nor
necessary.
A wide and thorough distribution of risk
can be achieved by diversification in
several different directions.
The most
effective plan, however, is to diversify in ­
vestments according to the am ount of
capital, according to the ty p e or class, ac­
cording to geographical locations, and as
to m aturity. In considering diversifica­
tion according to the am ount of capital,
the investor m ust determine th at unit
which will prevent the number of securi­
ties from becoming burdensome and at
the same time give him the widest d istri­
bution possible w ithin the limits of his in­
vestment capital. There is no rule to
follow other than th at dictated by common
sense.
W hether a man sets as his unit $100 or
$10,000 m ust be determined by the am ount
he can invest systematically, the avail­
ability of different issues at a price cor­
responding to th a t unit, the time he can
give to the handling of his account, and
the extent of the distribution he wishes to
achieve. The point to be kept in mind is
th at some u n it is necessary as a guide to
intelligent diversification. I t will vary
with different individuals and w ith the
same individual at different periods, but
it should never be disregarded w ithout
reason, and should be kept as low as pos­
sible.
Diversification according to type of se-

M ay, 1926

TH E

curity, or, in other words, according to the
character of the issuer, can be very easily
accomplished w ithin the artificial lim its
imposed by taxation. I t is so obviously
common sense and judicious th a t it should
require little urging. W hile it is con­
ceivable th at one calam ity m ight effect all
classes of corporations and governments
at the same time, it is much less probable;
and the investor who has effected a distri­
bution representing the best investments
in all the different types has taken a great
step tow ard cutting down the fraction of
risk. Diversification of this nature should
follow some plan which establishes the
am ount of each class to be held. A good
diversification fo r the ordinary investor
m ight be arranged something like th is : 15
p er cent in foreign government bonds; 20
p er cent in railroad bonds; 30 p er cent in
public u tility ; 25 p er cent in industrials,
and the rem aining 10 p er cent in real
estate, m unicipal or government securi­
ties, or in good preferred stocks. In each
class there should be a fu rth e r diversifica­
tion. All railroad bonds should not be the
obligations of one or two systems, or even
of one type of road alone. U tilities should
include traction, gas, telephone, pow er and
light bonds, fu rth e r distributed according
to the issuing companies. I t is always
best to see th at no one class of security or
no one issuing corporation is represented
too heavily in the account.
P ast experience w ith defaults and re­
pudiations should w arn the investor that
it is unwise to tru st all his savings to one
locality. H ard sh ip s have fallen on certain
sections of this country and E urope which
have greatly im paired the safety of loans
therein. No locality is immune. A con­
sideration of the defaults and repudiations
in the South, Northwest, and the h ard ­
ships suffered by industrials and utilities
during- certain periods in the E ast will
make evident to the investor the fool­
hardiness of neglecting a geographical dis­
tribution.
There are two very good reasons for
providing a diversification according to
m aturity. To have all securities m ature
a t the same tim e would be unwise, since it
would necessitate reinvestm ent of all funds
under money conditions which m ight be
disadvantageous. I f bond prices at the
m aturity date should be higher than at
the time the investm ent was made, a
shrinkage in the income from the account
would be unavoidable. Moreover, by p ro ­
viding fo r diversification in m aturity the
investor is taking the best possible step to
prevent a great fluctuation in the purchas­
ing poAver of his savings. V ariations in
the value of the dollar over long periods
add a speculative feature to investments,
which should be guarded against by having
a portion of the account m ature every few
years.
W hat I m ust do is all th a t concerns me,
not w hat people think.—Emerson.

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

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

39

B A N K E R

@

Bank
Investments
Widely diversified
securities of high
yield and assured
m arketability.

STOCKS and BONDS
OF THE

CITIES SERVICE COMPANY
and SUBSIDIARIES
Securities

Department

Henry L.Dolierty & Company
6 0 W a ll St.
BRANCHES lt< \V / '

\\ )) N e w Y o r k
PRINCIPAL CITIES*

IOWA DIVISIONAL OFFICES
Des Moines
318 Liberty Building
Sioux City
507 Francis Building

Cedar Rapids
708 H igley Building

Davenport
721 First N ational Bank Building

40

TH E

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

B A N K E R

M ay , 1926

When to Trade Your Bonds
income are the pivotal
E IS^ Kpointsand around
which m ost of the

B y M ilto n O. J o h n so n
M anager of A n a lytic D epartm ent, F irst
Illinois Company, Chicago, Illinois

problem s of investm ent revolve.
The two principal risks assum ed by
bond buyers are the credit risk and the
m arket risk. By credit risk is m eant the
p ro b ability of paym ent of in te rest regu­
larly and prom ptly and the re tu rn of the
p rin cip al sum a t m atu rity . By m arket
risk is m eant the probability of convert­
ing the “prom ise to p ay” into cash before
m a tu rity w ithout loss of principal.
* The aim of wise investm ent is to mini-

mize the credit risk as well as the m ar­
ket risk and a t the same tim e keep the
money as profitably employed as pos­
sible. This is accom plished by selecting
investm ents which are ap p ro p riate to
one’s needs and by p ro p er diversification
of investm ents w ith respect to the u n it
of investm ent, type, in dustry, geograph­
ical location, m a tu rity and m ark etab ility .

S O U N D I N V E S T M E N T S F O R BANKS
R a te

M a tu r ity

P r ic e

To Y ie ld
About

6 /4

1941

98.5°

6.65%

5

19 3 5

96.49

5 - 5 °%

5 /4

1946

9 5 -^ 5

5 -9 °%

5>4

1946

97

5 -7 5 %

E x t e r n a l S e c u r e d S . F . G o ld
Bonds

7

1952

96.50

7 - 3 °%

Italian Public Utility Credit Insti­
tute, E x t e r n a l S . F. G o ld B o n d s

7

1952

93

7.60%

6 >4

1946

93.50

7 - IO%

N a m e o f S e c u r ity

Consolidated Cement Corporation
F ir s t M o r tg a g e
S e r ie s A

G o ld B o n d s

General Motors Acceptance Cor­
poration, S e r ia l G o ld N o te s
Associated Electric Company
C o n v e rtib le G o ld B o n d s

Virginia Public Service Company
F i r s t M o r tg a g e a n d R e fu n d in g
G o ld B o n d s S erie s A

Province of Buenos Aires

Roman Catholic Church in Bavaria
S in k in g
Serie s A

Fund

G o ld

Bonds

Subj ect to previ ous sale a nd change in price.

CMftchell Hutchins w ill he glad to give you further
details regarding the issues in which you are interested

J M ik fie iiJ iu tc fd m & ? G b f
IL L IN O IS

MERCHANTS

BANK

B U IL D IN G

Chicago
r CORRESPONDENTS

OF

BOSTON

K ID D E R , PEABODY & C O .]
•

NEW

YORK

O FFIC ER S
W . EDW IN STA N LEY , PRESIDENT

JA M E S C. H U TC H IN S, VICE P R E S ID E N T

W I L L I A M H . M I T C H E L L , SECRETA RY
R O B E R T A. G A R D N E R , T REA SU RER
HAROLD C. S T R O T Z , A S S IS T A N T TR EA SU RER


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Federal Reserve Bank of St. Louis

Credit risk and m arket risks change as
do the investm ent requirem ents of in d i­
viduals and in stitu tio n s. The investor
who would obtain maximum resu lts m ust,
therefore, make exchanges from tim e to
time.
I t is good business fo r the investor and
the bond house to make exchanges w hen­
ever o p p o rtu n ity offers. I t is good bu si­
ness fo r the investor, because intelligent
exchanges improve his investm ent posi­
tio n ; it is good business fo r the bond
house, fo r maximum resu lts fo r the bond
house are obtained only as maximum re ­
sults are obtained fo r its clients.
I t is poor business fo r a bond house
executive or salesm an to advise ex­
changes fo r the mere sake of m aking a
sale. Such advice is n eith er honest nor
in tellig en t and cannot, therefore, p ro ­
duce maximum resu lts fo r eith er the in ­
vestor or the bond house.
Individual and in stitu tio n al investors
should freq u en tly m ake analyses of the
cred it position and the m arket position
of each bond in th e ir list of holdings as
well as analyses of the entire list from
the view point of diversification, together
w ith analyses of investm ent require­
m ents. Only by so doing can intelligent
exchanges be made.
Bonds wTiich do not now fit the re ­
quirem ents of a given account because
of changes in personal requirem ents,
changes in the cred it risk or changes in
the m arket risk should be exchanged fo r
bonds which are ap p ro p riate to the needs
of the given account.
Bonds which are selling close to or
above callable prices m ight be profitably
exchanged fo r o th er bonds of the same
grade b ut which have chances fo r ap p re­
ciation through a stro n g er cred it posi­
tion or chances of accretion through
changes in money m ark et conditions.
H olders of A m erican Telephone &
Telegraph Company 6 per cent convert­
ible bonds, due A ugust 1, 1925, who
failed to exercise th e ir conversion p riv i­
lege by m aking an exchange, incurred a
loss of $330 on each $1,000 bond due to
th e ir own negligence.
The investor who would ob tain m axi­
mum resu lts in investing m ust make ex­
changes from tim e to tim e. In tellig en t
analyses m ust, however, precede ex­
changes. M ake no m istake about th a t.
Organize a Croporation
The N orthland S ecurities Company, a
business firm of M inneapolis fo r the
p a st eight years, has recently form ed a
new corporation, and will now be known
as the N o rth lan d S ecurities Corporation.
The new firm has been organized to ca rry
on a general bond and investm ent busi­
ness, and its personnel of officials will be
th e same as those of the old company.

May, 1926

THE

NORTHWESTERN

41

BANKER

To offset this he m ust set aside out of
th e income derived fro m the bond $50
and place this am ount back in his capi­
ta l fund.

Question: W h at are “ E x te rn a l F o r­
eign G overnm ent B o n d s?”
Answer: Bonds which are issued and
floated in one n atio n by another nation
or its agent and which are payable in
the currency of the country in which they
are issued and not in the currency of the
issuing governm ent are called E x tern al
F oreign G overnm ent Bonds.
Question: W h a t is m eant by the term ,
“ O ptional D a te ? ”
Answer: A governm ent or corporation
will freq u en tly set a date earlier th a n
th e m a tu rity date on which they m ay re­
tire th e ir bonds if they so desire. This
date is called the “ optional d a te .” A
good exam ple of an optional date is seen
in the Second 4)4 p er cent L ib erty Loan.
The bonds of this loan m ature and m ust
be paid off in 1924, b u t a t any tim e a fte r
November 15, 1927, the governm ent has
the option of re tirin g them a t p a r and
interest. November 15, 1927, is there­
fore th e ir optional date.
Question: “ H ow can bonds he reg is­
tered ?
Answer: Bonds m ay be registerd in
two w a y s :
1. As to principal and in te rest (fully
re g iste re d ).
2. As to principal only.
R egistration consists of a n o tation on
the books of the com pany which issues
th e bonds, or of the bond re g istra r pro­
vided fo r in the m ortgage, sta tin g th a t a
ce rtain person is the rig h tfu l owner of
th e bonds. A registered bond cannot be
tra n sfe rre d from one person to another
w ithout notification to the company,
tru ste e or reg istra tio n office, and en­
dorsem ent of the bond in w riting by the
owner. This requires considerable tim e
and inconvenience so th a t very few bonds
are registered. W hen bonds are regis­
tered as to principal only, in te rest is col­
lected by clipping coupons, as in the
case of unregistered bonds. Bonds which
have been registered as to both p rin ci­
pal and in te rest have no coupons, in te r­
est being sent the holder by a check di­
rect from the company. W hen bonds
are to be registered, the seller of the
bonds m ust first be paid in fu ll fo r them,
as ow nership of them passes entirely
out of his hands as soon as they are reg­
istered in the nam e of another. W e do
not advise reg istra tio n b u t are always
glad to atten d to it fo r clients who wish
to have it done.
Question: W h a t is m eant by the term ,
‘ 1A m ortization ? ’ ’

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Federal Reserve Bank of St. Louis

Answer: The process of settin g aside
a certain am ount a t fixed in terv als to
offset the extinction which is tak in g
place or u ltim ately will tak e place of a
perishable capital fund is called “A m or­
tization.” F o r example, if an individual
purchased out of his cap ital a $1,000 bond
fo r which he pays $1,050, he has ex tin ­
guished $50 of his capital, as he will re ­
ceive only $1,000 when the bond m atures.

Question: W h at is m eant by ‘ ‘ Sinking
F und?”
Answer: A common m ethod of p ro ­
viding the necessary funds w ith which to
pay off an issue of bonds a t th e ir m a tu r­
ity is to set aside each year an am ount
of money w hich a t the end of th e life
of the bonds will be sufficient to re tire
them. The fu n d into which these y early
installm ents are placed is called the
“ Sinking F u n d .”

BONDS
-------- a n d sh o rt term
n o te s o f c o n se r v a tiv e
ch aracter to m e e t th e
n e e d s o f banks, in s ti­
tu tio n s a n d p riv a te
in v esto rs. L ist o f cu r­
r e n t o ffe r in g s se n t
u p o n req u est.

D e W o lf & C o m p a n y , in c .
In vestm en t B onds - E stablish ed 1 8 8 9

CHICAGO

MILWAUKEE

42

TH E

Question: W h at is m eant by the term ,
“ And I n te r e s t.”
Answer: W hen you purchase a bond
you pay, in addition to the stated price,
the in terest which has accrued on the
bond from the la st coupon date to the
date of your purchase. This causes some
confusion in the m inds of investors who
feel th a t they are paying more than the
actu al price of the bonds or th a t the
dealer who sells the bond makes a profit
on this interest. A simple illu stratio n
will make the m a tte r clear. Suppose you
purchase on O ctober 1st, a t 100 and in­

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

terest, a 6 p er cent bond whose interest
dates are Ja n u a ry 1st and Ju ly 1st. In
addition to paying $1,000 fo r the bond,
you would pay $15 accrued interest,
which, of course, is the am ount th a t
$1,000 will earn a t 6 p er cent in three
months. This in te rest does not belong to
you, because your funds have not been
invested in the bond during the three
m onths from Ju ly 1st to O ctober 1st.
The funds of the one who sold you the
bond were invested in it during th a t tim e
and so it is rig h t th a t the in te rest on his
funds should accrue to him fo r th a t pe­

A Serial Presentation o f Fundamental Principles

SUCCESSFUL MANAGEMENT
OF A N INVESTM ENT F U N D

Watch Your Securities
successful m anagem ent of ^
X investm ents involves more than
good judgm ent in th e initial selectionof securities. C onditions change
and in so doing enhance or depress
security values.
H PH E

Far from a draw back, this process
of changing val ¡es is advantageous
to th e security holder w ho guided
by experienced counsel or is him self
well inform ed; in such case he avails
himself o f resulting opportunities
for profitable exchange.
Place your investm ent banker in a
position to advise you, and, if w atch ­
ful o f your interests, he will recom­
m en d a d v a n t a g e o u s s e c u rity
exchanges as opportunities occur.
H e is constantly studying security
v alu es an d is p a r tic u la r ly w ell
equipped to render this c o n s tr u c ­
tive service.

is

IIP

In the management o f investment funds
we offer informed and timely counsel—
a service productive o f tangible results.

BRO KA W
A N D

C O M P A N Y

105 South La Salle Street, Chicago
Telephone Randolph

4560

A copy o f our booklet "The Successful M anagement o f An Investment Fund,’
will be m ailed on request.


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Federal Reserve Bank of St. Louis

B A N K E R

M ay , 1926

riod. However, you do not lose this in ­
terest because on Ja n u a ry 1st, you will
cash a coupon which pays you $30. Of
this am ount $15 reim burses you fo r the
accrued in terest you p aid and, therefore,
cancels th a t paym ent. The o th er $15 is
in te rest on your funds fo r the three
m onths th a t you have held the bond. I f
you should re-sell the bond between any
in te rest periods, the b uyer would pay
you the in te rest which had accrued while
you held the bond, in the same way. One
advantage of bonds as an investm ent is
th a t in this w ay you receive in terest on
your money fo r every day it is invested.
Question: W hat is m eant by the term ,
“ General M o rtg ag es?”
Answer: A corporation may have sev­
eral m ortgages placed upon different
p a rts of its p ro p erty or upon the whole
o f it. I f such a corporation wishes to
borrow again on its p roperty, it could
do so by placing a m ortgage on its en­
tire property, which necessarily would
come a f te r all the earlier m ortgages.
This m ortgage would be a “ G eneral
M ortgage. ’ ’
Example: A steel corporation has the
follow ing properties :
P lan t at
V alue
M ortgage
Uniontown ....$1,000,000 $ 25,000 First
50,000 Second
P lan t at
Lancaster .... 2,000,000
600,000 F irst
Totals ............ $3,000,000

$675,000

The first and second m ortgages on the
U niontow n p la n t and the first m ortgage
on the L ancaster p la n t are considerably
less th a n the am ount th a t could be loaned
on these pro p erties w ith p erfect safety .
The company, therefore, when it has to
borrow again, could do so by placing a
general m ortgage fo r $600,000 (assum ing
th a t this is the am ount needed) on its
properties. W e would then have p ro p ­
erties w orth $3,000,000 securing m o rt­
gages to the am ount of $1,275,000.
’Twas the Cat’s Meow!
So sensitive are the m odern b u rg lar
systems th a t oftentim es the slightest vi­
b ratio n will s ta rt th e alarm ringing.
A n incident is recorded in S an ta B a r­
bara, C alifornia, w here th e bank cat was
unknow ingly locked in the vault. E v ery ­
th in g w ent well u n til pussy w akened
along in the evening, Avas unable to get
out, and let out a questioning “Meow.”
T hat was enough. The alarm bells sta rted
to ring, and the bank officials, the police
force, and perhaps the fire departm ent
were a su rp rised bunch when they opened
the v au lt and found only a cat. The v i­
b ratio n of the “c a t’s meow” was enough
to sp rin g the alarm .
The alarm in the above case was in ­
stalled by the O. B. M eClintock Com­
pany, M inneapolis.

May, 1926

TH E

NORTHWESTERN

BANKER

43

How Will the Stock Decline Affect
the Bond Market?
of bonds is interested
E VinE RtheY buyer
question, “How will the de­
clining stock prices affect the bond
m arket ?”
In view of recent declines on the New
Y ork exchange, p a rtic u la rly in stocks, a
recent bulletin p u t out by Clarke-Lewis
& Company, investm ent securities house
of Omaha, will be of p a rtic u la r interest.
This firm views the situ atio n as fol­
lows :
“D uring the la st few weeks, several of
our frie n d s advanced the question, ‘How
will the declining stock prices affect the
bond m arket'?’ The trad e cycle theo rist
and the m an who is an exponent of the
theory of action and reaction are the
most confounded by the p resent tren d of
events.
“ The exponent of the theoretical trad e
cycle has been w ondering why stock
prices have been declining rap id ly and
bond prices either holding sta tio n a ry or
rising, as the theory calls fo r bond prices
declining ahead of stocks and stocks be­
ing followed by business. The exponent
of the theory of action and reaction is
w aiting fo r bond prices to decline 50 per
cent of the rise since 1920-1921, and the
casual observer appears to be sim ply s it­
tin g w aiting fo r everything to go to
sm ash follow ing the drop in stock prices.
“In order to get the actual conditions
properly in mind, and find the errors in
th eir reasoning, it is necessary to go back
and u n d erstan d previous post-w ar condi­
tions. A check of the m arket of B ritish
governm ent bonds and com modity prices
fo r the la st 200 years reveals the fac t
th a t bond prices move inversely to com­
m odity prices. ‘A n increase in commod­
ity prices over a period of years causes
a decrease in bond prices, irrespective of
in te rest ra te s or volume of business, and
a decrease in com modity prices is accom­
panied by an increase of bond prices, i r ­
respective of in te rest ra te s and volume
of business.’ This relatio n sh ip exists be­
cause of the type of buying which gov­
erns the price of bonds.
“ The real governing influence in bond
prices is not commercial banks or indus­
tria l co rporations; it is the individual’s
savings in the form of insurance com pa­
nies, tr u s t funds, savings banks and the
individual investor. The individual in
investing his money, consciously or un ­
consciously, strives fo r a re tu rn on his
capital which will give him w hat he feels
he should get from th a t savings. A sim ­
ple illu stratio n would be, a m an saves
$1,000 w ith the idea in m ind th a t in te rest
on this am ount will purchase fuel fo r
h eating his house. I f $70 will heat his
house, he w ants a 7 per cent retu rn , and

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Federal Reserve Bank of St. Louis

if $40 will do the work, he is satisfied
w ith a 4 per cent retu rn .
“ A t th e beginning of th e W orld W ar,
com modity prices began to increase and
in terest ra te s rem ained more or less s ta ­
tionary. A fte r our entrance into the
w ar, com modity prices, th e volume of
business and the dem and fo r money
needed to ca rry on business increased at
a trem endous rate, b ut in terest rate s and
bond prices held more or less steady.

This condition was not the resu lt of the
cessation of economic laws, b u t sim ply a
pegging of in terest rate s and bond prices
by th e governm ent in order to fac ilita te
the issue of L ib erty Loans. This peg­
ging operation continued u n til a fte r the
issuance of the T reasury 3% s-4% s in
1919.
“W hen these flotations were com­
pleted, the governm ent released control
of the m arkets and th e p ent-up energies

A C ity in There’s many a prosperous
a T o w e r an<^ well'known city whose
population is far less than the
number of people who will make the
Jewelers Building of Chicago their daily
business home. The electricity used to
run its elevators would furnish light
for the homes of one of these cities
and power for its factories. The yearly
income from rentals would pay for
its public improvements for a genera'
tion. ^ Towering higher than any other
office building in the United States
west of New York, the Jewelers Build­
ing, now nearing completion, adds a
new note of triumph to the challenge
of Chicago’s river-side skyline. Its urn
matched location assures the desir
ability of its rentable space. The bonds
which the building and land secure
are attractive investments included in
our current list of offerings.

IT$ r IuN VeE-SW
e b
TMENT
231 S. LA SALLE ST.

BOSTON

C H IC A G O

b e r

& fV«*
o

BONDS

PHONE, CENTRAL 6 5 5 6

CEDAR RAPIDS

44

THE

of the economic law b u rst fo rth . As a
result, bond prices dropped to where they
corresponded w ith com modity prices and
in te rest ra te s rose to w here they corre­
sponded w ith the column of in d u strial
business. Since the w ar, the business of
the country has been lopsided, in th a t the
in d u stries which were held back of ne­
cessity during the war, such as the lux­
u ry and the building industries, have
been catching up on the accum ulated de­
mand, and as a resu lt have shown u n ­
usual prosp erity and earnings. The in­
dustries serving the demand, which were
not checked during the war, have shown
nothing more or less th an th e ir rig h tfu l
profits and losses.

NORTHWESTERN

BANKER

“ The afte r-w ar deflation has caused a
considerable decrease in commodity
prices or, in oth er words, the cost of liv­
ing. The w arped condition of in d u stry
since the w ar has caused w hat appeared
to be a high volume of business w ithout
an unusual dem and fo r money, and conse­
quently low in te rest rates. A study of
the actu al forces under the su rface very
clearly shows a continuation, although a
gradual w orking off, of the over-ener­
gized, w ithheld industries.
“I t is quite likely it will be a t least an­
other five to ten years before the busi­
ness of th is country becomes normal.
The industries of the country which have
been supplying a norm al dem and fo r a

The Allerton Corporation
5% Convertible Gold Notes
A
Due December 15, 1928

The net earnings derived
from the operation of the
properties owned or con­
trolled by the A llerton Cor­
poration for the year ended
Decem ber 31, 1 9 2 5 , were
$ 5 0 2 ,9 1 6 .3 0 , or over eight
tim es annual interest re­
quirem ents on this issue of
notes now outstanding. T he
Company has net tangible
assets equal to over $ 5 0 0 0
for each $ 1 0 0 0 note. Priced
to yield 6 .3 0 per cent.

P.W. CHAPMAN&CO.,INC.
116 S. La Salle St.
CHICAGO


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Federal Reserve Bank of St. Louis

42 Cedar Street
N E W YORK

May, 1926

norm al consum ption have not had a high
enough rate of operation to need commer­
cial borrow ing. The abnorm al in d u stries
have been able to tak e care of th e ir de­
m ands through profits and stock issues.
The com bination of these two fac to rs
have held in te rest rate s a t a low level.
The g rad u ally increasing com petition in
this country, plus the com petition th a t
is sure to be fe lt from the reb u ilt f o r­
eign industries, will continue to force
commodity prices to lower levels. The
over-supply by foreign in d u stry should
tend to b ring about over a period of years
a sm aller volume of business w ith sm aller
production costs, which means even less
dem and fo r com mercial money th a n we
have a t this tim e.
“I t seems certain the com bination of
lower in te rest rate s and lower commod­
ity prices will be accom panied by the
g rea test bull bond m ark et in the history
of this country. Bond prices ten to fif­
teen points over the p resen t level appear
very likely to be reached in the next few
years. The m an who is w atching only
surface conditions will some day realize
he was so in te n t on the eighths and q u ar­
ters th a t he missed a w onderful oppor­
tu n ity .”
Joins Thompson, Ross & Company
Thompson, Ross & Company of Chi­
cago announce the association w ith th eir
firm of Mr. R. L. P ark in so n as vice p resi­
dent in general charge of wholesale and
re ta il d istrib u tio n . Mr. P ark in so n , ex­
cept fo r the period of the war, has been
closely identified w ith L aSalle S treet a f ­
fa irs fo r fifteen years. A fte r serving
fo u r years w ith the firm of W illiam A.
Read & Company (now Dillon, Read &
Com pany), he was associated w ith the
Chicago office of the G u aran ty Company
of New Y ork fo r fo u r years as m anager
of wholesale and re ta il d istrib u tio n . F o l­
low ing th is he was tre a su re r of the Booth
F isheries Company, and fo r the p ast two
years has been m anager of the bond de­
p artm en t of the C entral T ru st Company
of Illinois.
Mr. P ark in so n brings to his new con­
nection a thorough knowledge of the bond
business and a wide acquaintance among
investm ent dealers th roughout the W est.
Beg Pardon, Please!
Our a tten tio n is called to an erro r on
page 32 of the A pril issue of T h e , N o r th ­
w este r n B a n k e r in announcing the offi­
cers of the A. J . Boldt & Company, a
bond and investm ent house organized in
D avenport, Ja n u a ry 1, 1926.
The A pril issue carried a story listing
the organizers and executive heads of the
com pany as A rnold J. Boldt, A rth u r R.
Bailie, H erb ert M. Jacobs, Glenn L.
Peebler and Miss A nne I. F erry .
To sta te the case correctly, the o rgan­
izers are M essrs. Boldt, Bailie, Jacobs
and Miss F erry . Mr. P eebler became as-

May, 1926

THE

NORTHWESTERN

BANKER

45

soeiated w ith the com pany M arch 1,1916,
as a salesm an in D avenport.
Appoint Stone Iowa Manager
H a rry M. Stone, well known in busi­
ness circles throughout Iowa, has been
appointed Iow a m anager fo r the Chicago
real estate bond house, W ollenberger &
Co., w ith h eadquarters in Des Moines.
Des Aloines offices have been opened
a t 627 Insu ran ce Exchange building.
Tw enty years of prom inent p articip atio n
in the wholesale clothing trad e of this

“L et O ur L ist o f Bonds Be
Y o u r I n v e s tm e n t Guide ”

A.

J. B o l d t £? C o m p a n y

Investm ent Securities
D a v e n p o rt, Iow a

P u tn a m B u ild in g

m

.

G eneral Motors
Acceptance Corporation
Executive Offices:
2 5 0 W e st 5 7 th S tre e t, N e w Y o rk C ity

Z
H A R R Y M. STO NE

te rrito ry has form ed fo r Mr. Stone the
basis fo r an extensive acquaintance
am ong Iow a business men. F o r a num ­
b er of years, however, he has interested
him self in Des Moines real estate and
ap a rtm en t house construction in p a rtic u ­
lar.
In 1922 Air. Stone built Des Aloines’
first suburban ap a rtm en t stru ctu re. H is
a tten tio n was a ttra c te d to the field of in­
vestm ent banking and it was n atu ra l
th a t he should become interested in Real
E sta te M ortgage Bonds, resu ltin g in his
connection w ith W ollenberger & Co.
W ollenberger & Co. specialize in F irs t
Alortgage Real E sta te B ands on new and
incom e-producing properties, and have a
business record covering a fo rty -y e ar pe­
riod.
Joins First Illinois Company
Charles E. McSweeney, sometime as­
sociated w ith The N ational C ity Com­
pany, W. A. H arrim an & Company and
H. M. Byllesby & Company, is now a
m ember of the F irs t Illinois Company,
u n d erw riters and p a rtic ip a tin g d istrib u ­
to rs of investm ent securities, w ith offices
in Chicago, A urora and Springfield, 111.,
St. Louis, Mo., and M ilwaukee, AAus.

1


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

fH E obligations of this institution are select­

ed as appropriate and sound mediums for
short term investment by a large banking clientele.
They may be obtained in convenient denomina­
tions and suitable maturities.
D IR E C T O R S
Alfred H. Swayne,. .Chairman — Vice President, General
Motors Corporation
Curtis C. Cooper. . . President
Albert L. Deane. . . Vice President
Pierre S. duPont. . . Chairman, General Motors Corporation
and E. I. duPont de Nemours & Co.
Lammot duPont. . .Finance Committee, General Motors
Corporation.
0 . H. P. LaFarge. .General Motors Corporation
Seward Prosser. . . .Chairman, Bankers Trust Company
New York
John J . Raskob. . . .C h a irm a n , F in a n ce C om m ittee,
General Motors Corporation
Alfred P. Sloan, Jr. President, General Motors Corporation
JohnJ.Schumann, Jr. Vice President
Donald M. Spaidal. Vice President

46

TH E

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

B A N K E R

May, 1926

Add to Foshay Staff

Sound Utility
Bonds
R ate

Eastern N ew Jersey Power Co.

&
&

Eastern Iowa Tel. Tel.
Indiana Power W ater
Iowa So. U til. Co. 1st

D ue

5h
6s

&Ref.

Y ield

1 /4 9 5.70%
1 /4 1 6 .00%

6s

9 /3 6 5.65%
. 5ès 7 /5 0 5-70%

Circulars on Request

(o.

H o a g l a n d , A lujm
Established 1909— Incorporated

14 S. La Salle St.
C H IC A G O

3 4 Pine St.
N EW YORK

Industrial Acceptance
xoration
N e w

Y o r k

Capital & Surplus Over $7,000,000
'i

COLLATERAL

T R U S T G O LD

(The N ational C ity Bank o f N. Y., Trustee)

The Notes o f this Corporation are regarded by a nation-wide
banking clientele as appropriate and attractive investment
fo r short term funds. They may be obtained under customary
option in varying maturities between 2 and 12 months. Com­
plete information available on request to any o f our offices.

R ecent additions to the executive o r­
ganization of the W. B. F oshay Company
of M inneapolis are W allace G. Caldwell
as assista n t vice president and E. Y.
P ry o r as m anager of m erchandise sales
fo r all companies.
Mr. Caldwell was form erly presid en t
of the K entucky Rock A sphalt Company,
which operated successfully u nder his
m anagem ent. P reviously he had been
acting as an engineer in connection w ith
the P ittsb u rg h T esting L aboratory.
Mr. Caldwell comes to the organization
as direct assista n t to Mr. H enley and his
duties will necessarily be of a varied n a ­
ture.
Mr. P ry o r has been acting as m erchan­
dise sales m anager fo r the W isconsin
V alley E lectric Company, W ausau, W is.,
and has also been connected w ith the I l­
linois Pow er and L ight C orporation of
the A lb ert Im anuel Company in connec­
tion w ith th eir K ansas properties.
The sale of m erchandise, consisting of
electric appliances, is increasing rap id ly
and is becoming a very im p o rtan t p a r t of
the business of electric u tility com panies
controlled by the W. B. F oshay Company.
Move Des Moines Office
The bond d ep artm en t of the Conti­
nental and Commercial T ru st and Sav­
ings B ank of Chicago recently opened a
suite of offices a t 214 E quitable L ife
Insurance Building, Des Moines, Iowa, to
tak e care of the m any bond custom ers lo­
cated in Des Moines and cen tral and
w estern Iowa.
H a rry M. H a rris is in charge of the
office. D avid B. M itchell is associated
w ith him. B oth of these men have rep re­
sented the bond dep artm en t of the C onti­
n en tal and Commercial B ank in the Iow a
te rrito ry and are well known here.
The bond d ep artm en t has been re p re ­
sented in Des Moines fo r some tim e b ut
the increase in volume of business has
necessitated the opening of offices in o r­
der to ren d er b e tte r service to banks, in ­
vestm ent houses and individual bond buy­
ers in Des Moines te rrito ry .
N O TE
S
The C ontinental and Commercial T ru st
and Savings B ank is one of fo u r in stitu ­
tions which m ake up the group know n as
the C ontinental and Commercial Banks,
of which George M. Reynolds is ch a ir­
man of the board, and A rth u r Reynolds
is president.

Commercial Paper Offices
CHICAGO

N E W YORK

105 So. La Salle Street

100 East 42nd Street

S A N FRANCISCO

225 Bush Street

Financing exclusively dealers o f

TH E S T U D E B A K E R C O R P O R A T I O N
OF AM ERICA


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

W ith First Illinois Company
George C. Stevens, u n til recen tly w ith
H. M. Byllesby & Company, is now asso­
ciated w ith the F irs t Illinois Company,
u n d erw riters and p a rtic ip a tin g d istrib u ­
tors of investm ent securities. The com­
pany has offices in Chicago, M ilwaukee,
St. Louis and A u ro ra and Springfield,
Illinois.

May, 1926

THE

F. R. Fenton Dead
The passing- of F red erick R. F enton,
executive secretary of the Investm ent
B ankers A ssociation of Am erica, a t Los
Angeles, recently, was deeply mourned
by his m any friends in the investm ent
banking business throughout the country.
M r. F enton, who was 57 years old, su f­
fered a cerebral hem orrhage, A pril 13,
while on a tra in en route from D enver to
Los Angeles, where, w ith R ay M orris,
p resident of the association, he was to
have been guest of honor a t a m eeting of
th e C alifornia investm ent bankers. H e
was rem oved to St. V incent’s H ospital,
Los Angeles, w here he died w ithout re ­
gaining consciousness. F u n eral services
were held from the Kenwood Evangelical
Church, Chicago, on W ednesday, A pril
21: Investm ent bankers from New York,
D etroit, St. Louis, K ansas City and Chi­
cago, members of the association, acted
as pallbearers.
Mr. F en to n was born in New Y ork
City, b u t moved to D etroit in 1877, where
he was educated in the pblic schools and
was g rad u ated from the D etroit College
of Law. H e came to Chicago in 1904 as
a bond salesm an fo r E. H. Rollins & Sons
and soon became sales m anager of th a t
house. L a te r he acted in the same capac­
ity fo r D evitt, Trem ble & Company. D u r­
ing the w ar he won official recognition fo r
his valuable w ork as sales directo r of the
L iberty Loan cam paigns in M ichigan,
and was presented by th a t sta te w ith a
chest of silver bearing the sta te seal. He
was one of the organizers of the In v e st­
m ent B ankers A ssociation of Am erica, in
1912, and was its secretary u n til the tim e
of his death. In 1919 he founded the in ­
vestm ent banking house of F enton, Cor­
rig an & Boyle, now F enton, D avis &
Boyle, and was president of th a t firm un ­
til Septem ber, 1925, when he resigned to
give all his tim e to association work, in
which he had alw ays shown such a whole­
h earted interest.
Mr. F en to n is survived by his widow,
a son, F red erick R., J r., m anager of C. F.
Childs & Company in St. Louis, and three
daughters, Mrs. P au l H eadland, M rs. Max
S. L am bert and Miss D orothy F enton, all
of Chicago. H is fa th e r, H. B. Fenton,
lives in E vanston, 111.; a sister, M rs. J.
C. W ilcox, in D enver, and a brother, R.
C. F enton, in D etroit. M r. F en to n was a
32d degree Mason, and a m ember of the
South Shore C ountry, the U nion League
and M id-D ay clubs of Chicago, and the
Chicham ing C ountry and D etroit A th ­
letic clubs.
More th a n any other man, F rederick R.
F en to n was responsible fo r the building
of the Investm ent B ankers A ssociation
into the im p o rtan t bureau of stan d ard s
it has become in determ ining and fixing
sound principles and ethical practices in
the investm ent banking business. This
trib u te was freely accorded him by the
association’s officers during his life.

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

NORTHWESTERN

47

BANKER

Philadelphia-Girard National
T h e P h ilad elp h ia-G irard N ational
B ank of P h iladelphia has on its board of
directors th irty -six men, all of whom are
well established in business them selves,
and well qualified to direct the banking
business of th a t g rea t in stitu tio n . The
condensed statem ent of th e bank, issued
on A pril 1st, gives deposits a t $199,230,428.07, and to ta l resources a t $249,305,627.93. Levi L. Rue is chairm an of the
board, and Joseph W ayne, J r., is p resi­
dent.
Drovers National, Chicago
The combined statem en ts of condition
of the D rovers N ational B ank and the

D rovers T ru st & Savings B ank a t the
close of business A pril 12th, give to tal
resources a t $25,657,921.93.
The de­
posits of the D rovers N ational are $15,358,304.20, and the savings deposits of
the D rovers T ru st & Savings come to
$7,470,554.61. Loans and discounts of
the combined in stitu tio n s are listed at
$17,546,844.09.
I t is the habit of the time to speak of
unem ployment as if it related only to
those who work fo r a specific hourly, daily,
weekly, or monthly wage. On the con­
trary , it is the employer who is the first
out of employment. H e is followed by the
employe.— W illiam Sproule.

—and , n ow ,
we are in
D uring the past twenty-seven years of
specialization in M unicipal Bonds we have
built up an extensive clientele in Iowa.
And in order that we may render our services
even more effectively than heretofore we
have established an office in Des M oines.
A sk for O ur C o m p lete L ist
it will be interesting to you as it
offers a wide selection of M unicipal
Issues w hich have been purchased
w ith discrim ination and are sold
w ith our unreserved recom m enda­
tion.

Represented in Iowa by Mr. L. H. Davis
526 L ib erty Bldg., Des M oines

TDh e B r o w

n

-C r u m

m er

Co m

pany

48

THE

NORTHWESTERN

BANKER

May, 1926

Some of the Listing Policies of the New
York Stock Exchange
H E listing requirem ents as they
stand today are the resu lt of long
years of experience in deciding the
q u ality and type of securities to which
the New Y ork Stock Exchange shall o f­
fe r its facilities fo r th e ir distribution.
The range of corporate affairs probed
by the listing requirem ents of the New
Y ork Stock Exchange tends constantly
to increase, as our experience enables us

T

B y E . H . H . S im m o n s
President, the N ew Y o rk S tock E xchange
to find ways of widening and extending
the service thus rendered to the A m eri­
can investing class. A case in point al­
ready has arisen over the m arked te n ­
dency of companies in late years to issue
common stock w ithout voting power. On
J a n u a ry 27 of th is year the New York

The listing policies of the New
York Stock Exchange, their technic­
al side as w ell as their benefits to
the public, was the subject of the ad­
dress of E. H. H. Simmons, president
of the New York Stock Exchange,
delivered before the recent m eeting
of the M ississippi V alley Group of
the Investm ent Bankers Association
of America. Mr. Simmons’ address is
printed in part on this page.— Editor’s
Note.
tiininitiiiiiiiiniiiitiiiiiiniiiiiiiiiiiiiiiiiiiiiitimuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiimiiiiiiiiMimiiiiimiiiiii

Safety, Yield
Marketability
W T E B S T E R defines SAFETY as freeW dom from danger, injury or damage;
sure, sound, secure.
And we have these things in mind in select­
ing from the vast number o f issues offered
to us, bonds which we can recommend as
safe investments.
SAFETY IS P A R A M O U N T , but is not
the sole factor to be considered.
Y IE L D T O O , IS IM P O R T A N T in
these days of high costs o f doing business
and too low a yield often does not assure
profitable operation.
M A R K E T A B IL IT Y also must be con­
sidered but is to o frequently unduly
stressed and purchased at too high a price.

Tears of Experience
have given us the o p p o rtu n ity to study
carefully every type o f investment security
and analyze thoroughly every factor enter­
ing into its construction.

Ü

Let us serve you thru this experience as we
have so many others.

BARTLETT &. GORDON
INC O R PO R A TE D

F irs t N a tio n a l B a n k B u ild in g , C h ic ag o
First W iscon sin N ation al B ank B uilding, M ilw aukee


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Federal Reserve Bank of St. Louis

Stock Exchange p u t itself on record as
opposed to the abuses which m ight pos­
sibly arise from the relativ ely new cor­
p o rate practice. I t is tru e th a t the E x ­
change’s statem en t reg ard in g th is m a tte r
was couched in general term s only, and
th a t it m erely declared its in ten tio n to
tak e cognizance of the nonvoting fea tu re s
of common stocks w ithout attem p tin g to
fo rm u late a definite policy a t once.
As I have pointed out, the exchange
cannot well expand its specific listin g re ­
quirem ents in advance of actual expe­
rience and the issuance of nonvoting
common stock is a relativ ely new de­
velopm ent in this country. The problem
of nonvoting stock cannot in actu al fac t
ever be settled on p ap er m erely by logic
or dogm atic conviction. I t m ust depend
fo r its u ltim ate solution upon an openminded developm ent of precedents and
specific cases. W hile the stock exchange
has made no positive and irrevocable rule
against the listin g of nonvoting common
stock, it intends to inquire into such is­
sues when they apply fo r a listing, and
it will refuse to open the facilities of its
m ark et to issues w herein an abuse of
this practice seems likely to occur.
One of the g rea test benefits to the
investing public which the listin g rules
of the New Y ork Stock Exchange p ro ­
vide is the inform ation concerning in ti­
m ate details of corporate affairs which
the in stitu tio n insists m ust be published
by practically all concerns whose securi­
ties are trad ed in by its members. In a
large num ber of cases the exchange re ­
quires the ap p lican t corporation to agree
th a t q u arte rly statem en t of earningis
shall be published.
Y ears ago the exchange did not in sist
upon q u arte rly earnings statem en ts to
the same ex ten t th a t it does today, and
th erefo re the agreem ents betw een the
exchange and the com panies whose se­
curities have long been listed upon it
do not alw ays specify any such condi­
tion. In consequence, it is difficult fo r
the exchange today to change these agree­
m ents in th is p a rtic u la r respect. Some

May, 1926

TH E

com panies also object to issuing q u a rte r­
ly earning statem ents, on the grounds
th a t it would place them a t a disadvan­
tage w ith com peting concerns who did
not do likewise. Also, concerns having
foreign p ro perties or subsidiaries some­
tim es com plain th a t the m aking of such
freq u en t earning statem ents involves se­
rious p rac tica l difficulties.
A nother common objection is th a t some
concerns do a very seasonable business,
w ith large earnings a t one period of the
y ea r and w ith low earnings or actual
deficits in other m onths, and th a t conse­
quently the publication of the q u arterly
earnings of such corporations would tend
to altern ately excite and alarm share­
holders, and lead to unnecessary price
fluctuations and speculation in the shares
of these com panies on the exchange.
In general, however, it can be said
th a t the entire tre n d in A m erican cor­
p o rate p ractice is tow ard more freq u en t
earning statements» and th a t year by
year, the above and other objections to
it possess less and less actual w eight.
N evertheless, th ere is no way fo r the
Stock Exchange to bring about a complete
tran sfo rm atio n of the present situation
w here m any listed com panies re p o rt th e ir
earnings only annually or sem i-annually.
The pow er of the Stock Exchange in this
as in other such m atters is more circum ­
scribed th a n is o ften supposed. The E x­
change cannot in variably deny the fac ili­
ties of its natio n al m ark et to companies
which in o th er respects are entirely w ill­
ing to abide by its listin g requirem ents.
M oreover, in case listed companies
show an unw illingness to live up to th e ir
agreem ent w ith the Exchange respecting
the publication of fre q u en t earnings, the
la tte r in stitu tio n is placed in an em­
b arrassin g position.
I t can, of course, strik e the shares of
the com pany from its list, b u t this action
penalizes not only the corporation itself,
b ut also its shareholders who have p er­
haps purchased its stock on the assum p­
tion th a t they could sell it again on the
Exchange w henever they desired. F o r­
tunately» such cases are exceptional at
the p resent tim e. B ut in insisting upon
as freq u en t earning statem ents as possi­
ble, the Exchange needs, and I feel de­
serves, the sup p o rt not only of bankers
and investors, b u t also of A m erican pub­
lic opinion in general. I t is to be hoped
th a t the public will come to take a more
direct and vigorous in terest in ju st such
questions as these.
Adds Milwaukee Office
The F irs t Illinois Com pany of Chi­
cago, underw riters and p a rtic ip a tin g dis­
trib u to rs of investm ent securities, has
opened an office in The F irs t W isconsin
N ational B ank B uilding, M ilwaukee,
W isconsin, w ith G rinnell W ylie in
charge. The com pany was founded in
A urora, Illinois, in 1920, and now has

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Federal Reserve Bank of St. Louis

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

49

B A N K E R

offices in Chicago, Springfield and A u­
rora, Illinois, St. Louis, Missouri, and
M ilwaukee, W isconsin. Officers of the
com pany a r e : P resid en t, H e rb e rt P.
H eiss; vice presidents, W illiam C. H eiss,
George B. M arx ; vice p resid en t and sec­
reta ry , Malcolm C. W oodw ard; treasu rer,
George L. H ilt.
An Investment Guide
The bond d ep artm en t of the F irs t
T rust & Savings B ank, Chicago, has re ­
cently issued a booklet entitled, “In v est­
m ent Service,” which describes the selec­
tion of investm ents, and calls aten tio n
to the m any services w hich th e F irs t
T rust & Savings is glad to render
through th e ir bond departm ent.
The booklet takes up in detail the care­
fu l selection which the bank m akes from
the m any offerings available, and how

these bonds are then sold to custom ers
a fte r a th o u g h tfu l analysis of th eir re ­
spective needs.
Acquire New Property
The W. B. F oshay Com pany of M inne­
apolis has ju st acquired, through p u r­
chase, all of the p ro p erties of the M id­
land Pow er Company a t a cash price of
$90,000. These pro p erties are located in
no rth w estern M innesota, supplying the
tow ns of Brooks, M entor, M cIntosh and
Fosston.
These p ro p erties are now in terco n ­
nected w ith the M innesota E lectric L ight
& Pow er Company, one of the W . B. F o ­
shay Company subsidiaries, thus b rin g ­
ing them in to the W . B. F oshay Com­
pany superpow er system.
Poetry is the child of N ature.— Shirley.

co u n try -w id e lo catio n o f N a tio n a l
C ity C o m p a n y offices, an d th ro u g h
th e i i , o o o m iles of p riv a te w ires
w hich co n n ec t these offices — a
b ro ad , read ily accessible in v e st­
m e n t service is av ailab le to b an k s
an d in v e stm e n t houses.

T h e N ational City Com pany
National City Hank Huilding, New York

Offices in more than 50 leading cities throughout the world
BONDS

•

SHORT

TERM

NOTES

•

ACCEPTANCES

50

THE

Announce Prize Winners
R alph E. H eilm an, dean, N orthw estern
U niversity School of Commerce, as ch a ir­
m an of a com m ittee of aw ard, has a n ­
nounced the w inners of the Chicago T rust
Company prizes fo r original research in
business and finance.
The first prize of $300 was won by
W illiam A lexander Grimes of Catons-

NORTHWESTERN

BANKER

ville, Md., whose subject was “F inancing
A utomobile Sales by the Time P aym ent
P lan .” The second prize of $200 was
won by G erald M. F ra n cis of U rbana,
111., whose essay tre a te d of “F in an cial
M anagem ent of F a rm e rs’ E lev ato r Com­
panies.”
The com m ittee of aw ard consists of
the follo w in g : R alph E. H eilm an, ch a ir­

Insurance C o m p a n y

GUARANTEED
'----------- ------------------

‘‘Anchors of

”

T h e finan cial d ev elo p m en ts of recen t w eek s
h ave strik in g ly em p h a sized the good fortu n e
of in v esto rs w h o se in vestm en t structures are
sta b ilized w ith “an ch ors of safety”-—F orm an
in su ran ce com p an y guaranteed B on d s.
W h en y o u co n sid er th a t th ese b on d s y ie ld a
sure in co m e of 6 to 6 */2 p er cen t, w ith safety
so u n q u a lified that it can be guaranteed, by a
lea d in g in su ran ce com p an y, y ou gain a n ew a p ­
p recia tio n of th eir so lid w orth and th e ir sta b ili­
ty in tim es of flu ctu atin g valu es.
T h e d istrib u tio n of th e se tim e-tested secu rities
affords a h ig h ly p rofitab le affiliation for m any
lo c a l b anks. In q u iries are in v ite d from in te r ­
ested bankers.

George M.Forman & Com pany
In vestm en t B onds Since 1885
EQUITABLE BLD G ., DES M OINES, IOWA
Chicago

N ew York
Springfield

P ittsb u rgh

M inneapolis
Peoria

Large Capital
and Surplus
During the period of over twenty years since its
founding, so that it may better serve the invest­
ment requirements of its clients, the American
Bond and Mortgage Company has built up a
capital and surplus of more than $7,500,000.
T hus in this direction the Company has estab­
lished itself in the front rank of the first mort­
gage investment houses of the country.
Send for la te st literatu re.

A m e r ic a n B o n d & M o rtgage C
q
Established 1904

CAPITAL AND SURPLUS OVER $7,500,000

CHICAGO


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

Incorporated

D A VENPORT
D E S M OINES
CEDAR R A P ID S

IOWA
OFFICES:
O v e r th ir ty

o th e r cities.

N E W YO R K

S.

May, 1926

man ; F re d I K ent, vice presid en t of the
B ankers T ru st Company, New Y ork C ity ;
R alph V an Vechten, vice president of
the C ontinental & Commercial N ational
B ank, Chicago; H aro ld G. M oulton, di­
recto r of the In stitu te of Economics,
W ashington, D. C.; H en ry H. H ilton,
G inn & Company, C hicago; L everett S.
Lyon, secretary, professor of economics,
R obert Brookings G raduate School of
Economics and Government, W ashington,
D. C.
The w inning p aper is a com prehensive
and very practical exposition of a most
tim ely subject and one th a t is of alm ost
universal in terest. In a lucid style the
different types of financing companies,
both those fo r financing the wholesaler
and those fo r arran g in g re ta il credits,
are distinguished and exam ined in detail.
The book is easy read in g and will well
rep ay the effort of a perusal, and those
who are possessed of more th an a surface
in te rest in the subject will find su b stan ­
tia l guidance to a fu rth e r study in a
fa irly exhaustive bibliography.
The com petition fo r the annual mono­
g rap h prizes is open to students regis­
tered in th e A m erican In stitu te of B a n k ­
ing, and to b an k employes generally, ex­
cepting officers of b an k s; to stu d en ts in
commerce and law, and in departm ents
of economics of colleges and universi­
ties, and to g rad u ate stu d en ts who have
not com pleted more th a n one year of
g rad u ate work.
In addition to these annual prizes,
th ere is a trie n n ial research prize of
$2,500.
This prize will be aw arded
every th ree years fo r an unpublished
stu d y which is subm itted in com petition
and which is considered to contain the
g rea test original co ntribution to know l­
edge and advancem ent in the field o ut­
lined. The aw ard will be made in the
autum n of 1927. P ap ers due not la ter
th an Ju n e 1, 1927.
No restrictio n s are m ade as to eligibil­
ity of co ntestants fo r this prize. The
donors have in m ind p a rtic u la rly officers
of banks, business executives, p racticing
atto rn ey s, members of teaching staffs,
and advanced g rad u ate stu d en ts in the
field of economics and business. The p a­
pers m ust be w ritte n in the E nglish lan ­
guage.
Celebrates Seventieth Anniversary
Officers and employes of the N ational
P a rk B ank held a dinner and dance re­
cently in the B iltm ore H otel, under the
auspices of the P a rk B ank Club, when
the seventieth an n iv ersary of the in stitu ­
tio n was com mem orated. A p p ro p riate
addresses were made, calling atten tio n
to the b an k ’s record as a purely com­
m ercial in stitu tio n . Though not among
the co u n try ’s very larg est banks today,
the N ational P a rk is conspicuous in one
outstan d in g p articu la r : I t is the largest
in stitu tio n whose size is not due to amal-

May, 1926

THE

gam ations or absorptions of other banks.
I ts resources have been b u ilt up entirely
through its own initiativ e. This circum ­
stance is pointed to as significant in view
of re p o rts th a t have been cu rren t re ­
cently, b u t officially denied from tim e to
tim e, to the effect th a t the P a rk Bank
was to be m erged w ith some other in sti­
tution.
The N ational P a rk B ank began early in
its career to build up connections w ith
out-of-tow n banks, when few other m et­
rop o litan banks thought of cultivating
th is field and, as a consequence, it has
today one of the larg est lists of out-of
tow n correspondents of any New Y ork
C ity bank. T hat its adherence to the
field of com m ercial banking has not been
unprofitable is ap p aren t, in th a t against
its cap ital of $10,000,000 the P a rk Bank
has b u ilt up a 200 per cent surplus, or
$20,000,000, w ith undivided profits of
$3,843,827. P aying 24 p er cent annually
on its stock, it is among the five largest
dividend d istrib u to rs of the New York
C ity banks.
Com menting on the fa c t th a t the b irth ­
day of the N ational P a rk B ank falls on
A pril 1st, a recent issue of the “F in a n ­
cial A ge” s a id :
“W ith w hat jo y would a publicity man
today hail the opening of a bank on
A pril 1 if the event would be the cause
of popular jokes. H e would consider the
advertisin g value priceless, because he
rem em bers the late P . T. B arnum ’s ad ­
vice to “get talked about fo r your good
deeds if possible, b u t get talked about.”
“B ut in olden tim es a banker would no
more th in k of ad v ertising his ‘p ro fes­
sion’ th a n would a reputable physician
advertise fo r patien ts. B ank advertising
became popular only when bankers dis­
covered th a t they were in business and
had service to sell, and the N ational
P a rk B ank was not backw ard in sensing
th e tren d of thought. H ow favorable
it is looked upon can be judged by the
fa c t th a t in a com pilation of the largest
banks in the U nited S tates it is num ber
30 in deposits, but it is the larg est bank
in the country w ithout having made any
consolidation, all of the 29 banks ra n k ­
ing ahead of it being results of m ergers.”
Open Davenport Office
H en ry L. D oherty & Co., who already
have Iow a offices a t Des Moines, Sioux
C ity and Cedar Rapids, have opened a
divisional office a t D avenport in the F irs t
N ational B ank building, under m anager
W . A. Crosby.
Iow a’s riv er counties will be supervised
from the D avenport office.
A lthough divisional offices fo r the
H en ry L. D oherty Co. in Iow a have only
recently been opened, each of them are
rep o rtin g business as good.
Jam es L. Moore, m anager of the Des
Moines office, 318 L iberty building, says

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

51

/

\

A n Iowa
Bond House for
Iowa Banks
C irc u la rs of C u r r e n t O fferings for B a n k
I n v e s tm e n t P u rp o se s M a ile d on R e q u e st

Harry H.Polk &Co.
I n v e s tm e n t S e c u ritie s

E q u ita b le B ldg.

D e s M o in e s

/
A Complete Investment Service
C om m ercial P aper an d B onds
Clients of this firm are able to
obtain from one source the type
of security best suited to their
current condition and need.

L A N E , RO LO SO N & CO., Inc.
209 S o u th La S alle S tre et, C hicago
LANE, PIPER & JAFFR AY, Inc.
M in n e a p o lis

S t. P a u l

R o ch ester

M an k ato

Fargo

SOUND BONDS
FOR

BANK

INVESTMENT

The First National Company of Iowa
Hanford MacNider, President
MASON CITY
Security Building
Cedar Rapids

Valley National Bank Building
Des Moines

52

THE

NORTHWESTERN

BANKER

u ry $50,000,000 w ith which to pay over­
due coupons on governm ent bonds and
$18,000,000 w ith which to redeem m a­
tu red bonds. I f you are holding m atured
governm ent bonds or coupons, we will be
glad to tak e care of th e ir collection fo r
you.— F rom “Bond B r ie fs ” N orthern
T rust Company, Chicago.

th a t they are highly satisfied w ith the
progress they are m aking and th a t th eir
business has shown a steady increase.
I t is only people who possess firmness
who can possess true gentleness. In those
who ap p e ar gentle, it is generally only
meekness, which is readily converted into
harshness.—La Rochefoucauld.
L ife is full of trouble, and wisdom lies
in being p repared fo r it, not in clamoring
th at it doesn’t exist.—W alt Mason.
$68,000,000 Deserted
A ccording to recent reports, the U nited
S tates governm ent is holding in its tre a s­

Join Priester, Quail & Cundy
Jo h n T. Gerwee, Jam es R. Gatewood
and Chester D. S alter have become con­
nected w ith P rie ste r, Q uail & Cundy,
Inc., investm ent organization, of D aven­
port.
Jo h n T. Gerwee will have charge of the
southeastern p a rt of Iowa. H e was fo r­

Converting the mountain torrents
into safe investments
Reservoirs high among the mountains, kept full
by the melting o f eternal snows • • • • * a rush o f
water down the long inclines....... the whir o f giant
turbines..... and a stream o f electric power courses
over the wires to meet the needs o f distant cities.

T
But more than electricity.is generated here. In the
bonds of the great hydro-electric companies, this
power is converted into safe incomes for those who
invest in their Electric Power and Light Bonds.

Thompson Moss & Co./«,-.
ESTABLISHED

1912

IN VESTM E NT
SECURITIES
Bank Floor . 29 S. La Salle Street

CHICAGO
N EW YORK
BOSTON


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Federal Reserve Bank of St. Louis

Telephone Randolph 6030

D B S M O IN E S
S A N FR A N C ISC O

May, 1926

m erly connected w ith the U nion-D aven­
p o rt T ru st & Savings Bank.
Jam es R. Gatewood will have charge
of the n o rth eastern p a rt of the Iow a te r ­
rito ry . H e is a g rad u ate of the Iow a
U niversity of Law and a member of the
bar.
C hester D. S alter is a g rad u ate of the
LTn iv ersity of M innesota, and he will
have as his te rrito ry the Tri-C ities and
several counties in Iow a and w estern I l­
linois.
French External Loan Bonds
D uring the p ast three weeks the quo­
tatio n s fo r all F ren ch ex ternal bonds
have experienced a decline, follow ed by
p a rtia l recovery.
This has n atu ra lly
caused uneasiness to the holders of these
bonds. The drop was occasioned, it is be­
lieved, by cabinet difficulties and a sh arp
decline in quotations fo r F ren ch fran cs.
The m arket fo r the external bonds recov­
ered, in p art, follow ing im proved p ro s­
pects fo r a balanced budget. I t seems
possible also th a t the recovery may have
been due to the realizatio n by A m erican
holders of F ren ch external debt th a t the
declining fra n c actu ally reduced the to ­
ta l in tern al debt of F rance.
The obligations of the F ren ch govern­
m ent of A pril 30, 1925, m ay be sum m ar­
ized as fo llo w s:
E x tern al loan bonds (including those
carry in g the im plied g u ara n ty of the
governm ent), $1,175,804,170.
In te rn a l fra n c bonds (converted a t
3.50 cents p er fra n c ), $5,433,820,000.
In te rn a l floating debt (converted at
3.50 cents p er fra n c ), $4,712,120,000.
Owed to other governm ents (not in ­
cluding in te rest accrued), $6,163,000,000.
I t will be seen th a t the ex tern al loan
bonds rep resen t less th a n 6.751 per cent
of the total.
E xperienced business men and finan­
cial experts re tu rn in g from E urope ap ­
p ear to be su b stan tially in agreem ent as
to the presen t prosperous condition of
F ran ce. U nem ploym ent is alm ost u n ­
known. The balance of trad e has fo r the
p ast two years been in her favor, and in ­
d u stry is ap p a ren tly o p eratin g near ca­
pacity. Two related causes are given fon
the financial difficulties of the govern­
m en t: (1) The necessity of refu n d in g
early m atu rities of the in te rn al debt, and
(2) the difficulty of securing adequate
tax atio n . Unless sufficient revenues can
be obtained, or p a rt of th e governm ent
debt is elim inated, the budget cannot p er­
m anently be balanced. Unless the budget
is balanced it m ay be expected th a t
fra n cs will decline. This will m ean th a t
less money, in term s of foreign exchange,
will be required to pay in te rest and p rin ­
cipal on the in tern al loans. As in the
case of the o rd in ary in d u strial, a reduc­
tion in the am ount of ju n io r obligations
should im prove the position of the senior
bondholders.

May, 1926

THE

By the tre a tm e n t accorded external
bonds of natio n al governm ents in the
p ast, they have come to have an im plied
p rio rity over in te rn al obligations. Selfin te rest also requires th a t a governm ent
m ain tain its external credit even a t the
cost of scaling down the loans which it
has received from its own nationals. A
scaling down in the value of the currency
of a country is, in effect, a capital levy.
I t would seem, therefore, th a t the recal­
c itra n t F ren ch ta x p ay er is faced w ith
two perhaps equally u n pleasant a lte rn a ­
tives. H e can pay taxes or allow the
value of his currency and his savings to
shrink. A side from the political u n set­
tlem ent which the solution of these do­
m estic financial problem s is likely to
have in F rance, either course should re ­
dound to the advantage of the holders of
F rench external bonds.— From “Bond
B r i e f s N orthern T rust Company, Chi­
cago.
DRAMATIZING INVESTM ENT
ADVERTISING
(C ontinued from page 16)
interesting and unhum an type of publicity
usually presented to an uninterested in­
vestment public.
“ Copy was w ritten fo r a year ahead.
The use of space really large enough to
register our sales message was decided
upon. A rt work and typography received
our most careful attention.
“A s the w riting of the copy proceeded,
almost limitless possibilities seemed to un­
fold. D espite the fact th a t we had been
identified with Public U tility financing
and operation fo r m any years, we were
astonished to find how m any uses there
were fo r electricity which presented an
o pportunity fo r dram atization. One of
the most striking advertisem ents in the
series (at least one which elicited the most
com ment), was illustrated by a draw ing
of a push button on the wall. W e found
th at even such a commonplace subject as
this could be presented in a dram atic way
by both draw ings and word pictures.
“ Of course, every piece of copy had a
direct tie-up with the message we were
endeavoring to p u t across—the many
reasons why Electric Power and Light
bonds are such safe investments.
“ The benefits received from our adver­
tising have justified the great am ount of
time and thought which we p u t on this
phase of our business. A book reproduc­
ing a num ber of the advertisem ents in full
size was published by us some time ago in
order to extend still fu rth e r the influence
of advertising. W e shall be pleased to
send a copy of this book to any of your
readers who might wish to study it with
the idea of stim ulating their own invest­
ment business through better advertising.”

NORTHWESTERN

BANKER

53

T H E S E L E C T IO N
of your investm ents requires great care and thought. May we lighten this task
by placing our diversified list at your disposal? We in vite you to consult us.
A few recommendations from our current list are
Sac County Electric Company ................ .............. 5V2s
Seiberling Rubber Company............... ... - ....-....... 5i/2s
Marshall Field & Co., Inc......................... .............. U/2s
Associated Electric Company.... ......... ................5 U s
Province of Buenos Aires ...................... .............. 7s
Dallas Joint Stock Land Bank................ ................ 5s
American Gas & Electric Co..................... ................ 6s

QUAIL £
w

1928
1929
1938
1946
1952
1966
2014


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Federal Reserve Bank of St. Louis

6.00%
6.05%
5.00%
5.90%
7.30%
4.68%
6.00%

CUNùy.BVq

BONDS FOR INVESTMENT
First N ational Bank Bldg.
DAVENPORT, IOWA

29 South La Salle St.,
CHICAGO

V.

*

!

,

I
T3itl e
In su r a n c e
PROVIDES ACTUAL SECURITY
A v o id s th e Avaste o f r e p e a te d r e -e x a m in a tio n s
o f th e sa m e r e c o r d s.

Saves tim e, labor, expense and delay.
Elim inates the opportunity for unfounded
objections.
Effectually quiets the title to the date of the
policy.
Expedites the transfer of land, and Avith .ad­
ditional safety to purchasers.
B efore you r clients B uy land or Sub­
d iv id e property, have our representa­
tiv e explain the advantages and safety
of T itle Insurance.

TITLE DEPARTMENT

SOUTHERN SURETY
COM PANY
201 YOUNGERMAN BUILDING

A friend th a t you have to buy Avon’t
be worth w hat you p ay fo r him, no m atter
w hat th a t may be.—Prentice.

99
98 y2
95i/2
95%
96 U
102%
99 y2

DES MOINES, IOWA

I!
i

THE

54

NORTHWESTERN

BANKER

May, 1926

A P L A N OF P R O F I T —
For the Banker
For His Community
The In tern atio n al Life Insurance Company has a bank agency plan
w hich includes not only th e elem ent of profit for your bank, and service
from this Company, b u t also profit for YOUR COMMUNITY.
It calls for—
1. A direct profit to eligible banks from deposits placed in th e bank.
2. A profitable commission contract.
W. K. W H IT F IE L D
P resid en t

3. A com plete and up-to-date line of life insurance policies, both
stan d ard and sub-standard.

D A V ID W . H IL L
V ice President

4. Consistent cooperation from this Company in th e closing of
business.
5. A n a ctiv e p art in th e b u ild in g o f your com m u nity th rou gh th e

W. F. GEANTGES
V ice P resid en t and General
M anager A gents

investm en t o f th is C om p an y’s fu n ds.

Secure full inform ation from the

International Life Insurance Company
ST. LOUIS, MISSOURI

Iowa bankers should do business with this strong Iowa
company, which has gained a country-wide reputation
as a “National Institution of Service.”
The Federal Surety Company is managed by experi­
enced underwriters, and has from its conception built
for STRENGTH rather than size.
Backed by Federal Service, these lines are written—
Accident and Health, Automobile, Burglary, Plate
Glass, Public Liability and Workmen’s Compensation
Insurance, and Surety Bonds.

FED ERAL SU RETY CO M PAN Y
CASUALTY INSURANCE

SURETY BONDS

W. L. TAYLOR, Vice President and General Manager

HOME OFFICE

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Federal Reserve Bank of St. Louis

DAVENPORT, IOW A

THE

May, 1926

NORTHWESTERN

BANKER

55

INSURANCE SECTION
Promotions in Prairie Life
A ccording to a recent announcem ent
by Dr. W . R. McGrew, president and
medical d irector of the P ra irie L ife of
Omaha, H. L. M cGrew has retire d as
se cretary and assista n t tre a su re r of the
com pany to re-en ter the banking busi­
ness in Iowa. H e is succeeded by Roy
D. H a rt, who lias been agency m anager
of the com pany fo r the p ast three years.

ROY D. H ART

The com pany has also announced the
appointm ent of W . C. M cCarten, of D u­
buque, Iow a, as agency m anager succeed­
ing Mr. H a rt. Mr. M cCarten is p a rtic u ­
larly well know n in Iowa, w here he was
form erly agency superivsor fo r the U ni­
versal L ife of Dubuque.
The P ra irie L ife is now o perating in
N ebraska, Iowa, Colorado, M issouri, Ok­
lahom a, and Texas and is planning to
fu rth e r develop its business in those
states.
Blackburns Return
Mr. and Mrs. Thomas W . B lackburn
of Omaha retu rn ed from New Y ork S a t­
urday, A pril 10. Mr. Blackburn p ro ­
ceeded im m ediately home and was a t his
desk this week thoroughly rested and
glad to be home.
The cruise was a delightful one, cov­
ering a vast am ount of te rrito ry and re p ­
resenting som ething like 16,000 miles of
travel.
D uring his absence he visited the Maderia Islands, G ibralter, G ranada (Spain)
Algiers, Nice, M onte Carlo, Tunis, P al
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Federal Reserve Bank of St. Louis

mermo, sp en t a week in E gypt, five days
in the H oly Land and visited C onstanti­
nople, Athens, Cataro, Venice, Syracuse,
Rome, Florence, M ilan and P aris and
London and sailed from S outhham pton
fo r home A pril 3rd.

of th a t office. H e succeeds D. H . W aller
who leaves to become associated w ith
the M inneapolis office of the Northwest­
ern M utual. E d C. K eith, who has been
w ith the Crestón office fo r th ree years,
succeeds Mr. R ichter as m anager there.

Hold Agency Convention
The Iowa agency force of the M issouri
State Life, under the supervision of State
M anager B. C. Thurm an, held their an­
nual meeting last month, at the state
agency offices in Des Moines. The conven­
tion was fo r one day, only, and concluded
with a banquet at Younkers’ Tea Rooms.
A total of twenty-seven Iowa agents were
in attendance.
A t the business session in the a f te r ­
noon, which was devoted to the discus­
sion of sales m ethods, P . H. Young,
agency in stru c to r from the home office,
was the p rin cip al speaker. Mr. Young
was also a speaker a t the evening b an ­
quet, as were also L. H. Law rence of Des
Moines, who spoke on “P u lling the L oad”
and C. E. B runson, W aterloo, who talked
on “ Co-operation.”
The convention concluded a six weeks’
production contest, and the prizes were
aw arded as follow s : Prem ium volume,
H. C. G raft of S pencer; larg est num ber
of applications, L. H. Law rence, Des
M oines; oldest ap p lican t (age fifty-seven
years) H. E. K inney, P e rry ; youngest
applican t (three and one-half m onths)
Joe W. Cain, Cornell.

V isits in Des Moines
Dr. C. W. W ells of New York, fo rm er­
ly assista n t m edical director of the B an k ­
ers L ife of Des Moines, visited frien d s
in Des Moines recently. Dr. W ells is now
connected w ith the R ockefeller F o u n d a­
tion. Dr. W ells is a well know n stam p
collector by hobby. H e states th a t he
has more th an 2,000,000 in his collection
and is now m aking a specialty of old
A m erican and C onfederate stam ps. L ast
year he sold $600 w orth of stam ps.

Goes to Council Bluffs
J. C. R ichter, fo r th irte e n years dis­
tric t m anager a t Crestón, Iowa, fo r the
N orth w estern M utual L ife, has been
tra n sfe rre d to Council Bluffs as m anager

Steadily Growing
In its tw enty years of operation, the
Iow a F ire Insu ran ce Company of W a te r­
loo, Iowa, has p aid out in losses $1,218,116.44, of which $205,384.62 was paid to
p ro p erty owners in W aterloo and vicin­
ity. The com pany now has 151,939 pol­
icies outstanding, which rep resen ts $42,282,318 of insurance in force. P ractically
all of this insurance is w ritten on dw ell­
ings, m ercantile and farm properties.
The com pany w rites both fire and tornado
insurance, also autom obile and p late
glass risks.
H erm ann M iller, secretary and m an­
ager of the com pany since its org an iza­
tion, has been in a large m easure respon­
sible fo r th e rem arkable grow th of the
com pany. M r. M iller came to th e com­
pany a t the tim e the com pany was being
form ed and took charge of the organiza­
tion.

"p p s
’O 1

a
S IO U X

t io

FALLS,

n

a

lJ J f è J n

m

(jompantf

m

a

SOUTH

ç e

DAKOTA.

Mr. Banker:
M o n e y se n t a w a y fr o m h o m e n e v e r
b u ild s y o u r c o m m u n ity : :
:
:
Make a connection with a HOME LIFE INSURANCE
COMPANY— that deposits the Premiums in your bank
or invests in m ortgages in your territory.

(O ld L ine L egal R e se rv e)

O F F I C E R S
Guy C .B a rto n
P R E S ID E N T

S.H W i t m e r

VICE-PRES
MGR A&ENTS

H.O C h a p m a n
SECRETARY

“A SOUTH DAKOTA COMPANY

T RE A SU RE R

3

56

THE

W ill Honor Geo. Crosley
A t a recent meeting of the Iowa Pond
of the Blue Goose, the suggestion was made
and adopted th a t W alter Faulkner, state
agent for the U. S. Fire, be appointed head
of a committee that is authorized to plan
a testim onial dinner some tim e in May fo r
George R. Crosley, veteran Iow a field man
of W ebster City, who on May 1 completes
tAventy-five years’ service as field man fo r

NORTHWESTERN

BANKER

his company. Mr. F au lk n e r will appoint
a com m ittee to assist him w ith the dinner
plans.
George R. Crosley is one of th e best
know n of Iow a field men, sta rtin g his
insurance career as a local agent in
W ebster City in 1882. In 1887 he w ent
to D uluth, M innesota, as m anager fo r
the W. M. P rin d le agency there, p u r­
chasing a th ird in te rest in the firm. In
1890 he moved to Chicago, as a field

May, 1926

man, and on May 1, 1901, was made Iow a
special agent fo r the B ritish A m erican
and W estern. "Wisconsin was added to
his te rrito ry in 1908, and he moved to
M ilwaukee living there several years,
then retu rn in g to I o A v a . H e is a l s o vice
president of the Crosley Investm ent

Should. B a n k e r s
W r i t e Life Insurance?
A N K E R S f o r y e a rs h a v e d is a g re e d o n th e q u e s ­
tio n , b u t you w ill a g r e e t h a t m a n y h a v e a n ­
s w e re d in th e a ffirm a tiv e a n d th u s m a te r i a lly
in c re a s e d t h e ir e a rn in g s .

B

L ife I n s u r a n c e h a s b ec o m e a n e c e s s ity a n d is in
g r e a t e r d e m a n d to d a y t h a n e v e r b e fo re . T h e field
is y o u n g , a n d p a r t ic u l a r ly b r ig h t is th e f u t u r e of
th e b u s in e s s . I n s u r a n c e T r u s ts a lo n e a r e a t t r a c t ­
in g m a n y b a n k e rs w h o h a d f e l t t h a t life in s u r a n c e
w a s e n t ir e l y a p a r t f r o m th e b u s in e s s o f b a n k in g .
Y ou a r e th e f in a n c ia l a d v is o r in y o u r co m ­
m u n ity . C a n you ju s tl y a d v ise y o u r c l ie n t o n h is
life in s u r a n c e a ff a ir s , o r m u s t y o u c a ll in a life
in s u r a n c e m a n ?
M u tu a l T r u s t is n o w in a p o s itio n to c o o p e ra te
w ith b a n k e rs . Y o u r in q u irie s w ill b e g iv e n c a r e f u l
a t te n t io n a n d h e ld s t r i c t l y c o n fid e n tia l.

GEORGE R. CROSLEY

I t c o s ts n o th in g to look in to o u r p ro p o s itio n —
it m a y m e a n th o u s a n d s o f d o lla rs to y o u la te r .

Get all the facts

M U T U A L TRUST
LIFE IN SU R A N C E C O M PA N Y
C A R L A . P E T E R S O N , V ice P r e s id e n t,
A . E . W IL D E R , D ir e c to r o f A g e n c ie s

T H E C H IC A G O T E M P L E

—

'

CHIC AGO

Company a t W ebster City, handling a
large volume of farm m ortgages and lo­
cal agency business.
Mr. Crosley has alw ays been deeply in ­
terested in the w ork of the Iow a F ire
P revention A ssociation, the Iow a Pond
of the Blue Goose, and the Iow a Local
A gents’ A ssociation. H e has also figured
prom inently in the affairs of the F ire
U n d erw riters A ssociation of th e N o rth ­
west.
The most sublime psalm th at can be
heard on this earth is the lisping o f a
human soul from the lips of childhood.—
Hugo.
IIIIMIIIIIIIIIIIIIIIIIII

L IFE IN S U R A N C E F O R B O R R O W E R S

This Association leads— others follow. If you w ant th e
best, and nothing less should satisfy you, put your tru s t in—

The Farmers Mutual Hail Insurance Association
of Iowa
Home Office, D es Moines, Iowa


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

T h ere are three reason s w h y w e b e ­
lie v e in lif e in su ran ce fo r our b o r­
row ers :
1st. T hat ou tstan d in g o b lig a tio n s m ay
b e p rotected w ith o u t em b arrassm ent to
fa m ily or b u sin ess.
2d. T h at ban k s m ay give m ore co ­
op eration to b u sin ess w h en in su ran ce is
carried against death lia b ility .
3d. T hat lo ss b y death o ften co m es to
the “ g u id in g h an d ” of the b u sin ess, ca u s­
in g h eavy lo ss u n til rea d ju stm en t is
co m p leted .
In su ran ce p ayab le to the
com p an y again st th is co n tin g e n c y is a
vita l cred it factor.— W ill A. L ane, Cash­
ier, F irst N a tio n a l B an k , W a terlo o , Iow a.

THE

May, 1926

N ow Located in Omaha
Controlling interest in the Am erican
Old Line L ife of Lincoln, Nebraska, has
been purchased by a group of well known
Omaha people, including H. W . K ingery,
M. D. H atch, A. W . Cordon, J . A. C.
Kennedy. The com pany has been moved
to Omaha and is now nicely installed in
its new offices in the Electric Building,
15th and H arney streets.
M r. K ingery is well know n in middle
w estern insurance circles, having been
vice-president of the N o rth A m erican
N ational L ife of Omaha, p rio r to its sale
to N ashville people. H e is likewise a
fo rm er N ebraska banker.
Mr. H atc h was president of the A m eri­
can Old Line, and will be chairm an of
the board, sh aring the m anagerial duties
w ith M r. K ingery, who is president. Mr.
Gordon is a prom inent candy m anufac­
tu re r and M r. K ennedy is an attorney.
The new line-up of officers will be as
fo llo w s: C hairm an of the board, M. D.
H atch ; president and treasurer, H. W.
K in g ery ; vice-president and general
counsel, J. A. D. K ennedy; assista n t sec­
re ta ry , H . H . W akem an.
U nder the supervision of P resid en t
K ingery, the A m erican Old Line is now
w ritin g business a t the ra te of alm ost a
m illion a m onth. The com pany is licensed
in seventeen sta te s and la st y ear w rote
ten m illion of insurance.
The com pany began originally as an
accident com pany and was organized by
Mr. H atch. I t began w riting life in su r­
ance in 1920 and closed its books last
year w ith about $15,000,000 in force.

NORTHW ESTERN

BANKER

H. L. T reloar is p resid en t of the cor­
p o ratio n ; O. D. Treloai’, vice-president;
J. F . Sanders, secretary and A. H. S an­
ders, trea su rer.

year a to ta l of 2.082 fires, 335 more th an
the preceding year. Total loss was $636,032, of which $221,291 was on buildings
and $414,741 on contents. Des Moines
is underinsured, since the value of the
p ro p erty involved in th e flames was $10,123,177, on which only $7,244,962 of in ­
surance was carried. D espite the in ­
creased num ber of fires, the to ta l loss fo r
la st y ear was $163,000 less th a n the p re ­
ceding year, due to increased efficiency
of the local fire departm ent.

Insurance Company Taxes
The average new spaper in failin g to
w orry over excessive taxes paid by in ­
surance companies doubtless thereby
merely reflects public sentim ent.
A refresh in g exception to th e rule of
blindness is to be found in a recen t edi­
torial in the M andan (N orth D akota)
News, which says in p a r t :
“In su ran ce companies pay taxes the
same as o th er p ro p erty holdings. B ut
it is difficult to defend th e additional
ta x of more th a n tw enty tim es the cost
of sta te insurance supervision assessed
ag ain st insurance policies. This tax nec­
essarily requires excessive policy rates.
W hy should insurance com panies pay a
special ta x equal to tw enty tim es the

W ill Mulroney has opened a new in ­
surance agency a t F t. Dodge, Iowa, to
handle all kinds of general fire in su r­
ance. Offices are in the building f o r­
m erly occupied by the M ulroney Mfg. Co.
The secretary of state has g ran ted a
corporation ch a rter to T reloar & S anders
of Charles City, IoAva, fo r $50,000 to do
loan, real estate and insurance business.

The Royal Union Life
Insurance Company
Des Moines, Iowa

S tr o n g and P rogressive

Fire News
1
Rudolph Rohlfe, vice-president and di­
re c to r of the G u aranty L ife Company,
and the S ecurity E ire In su ra n c e 'C o m ­
pany of D avenport, Iowa, died recently
follow ing an illness of two weeks. H e
was seventy years old. Mr. Rohlfe was
form er county tre a su re r and fo r m any
years was one of the republican leaders
in D avenport and S cott county.
Des Moines local agents have been ad­
vised of the decrease in public liability
ra te s prom ulgated by the N ational B u­
reau of C asualty and S urety U n d erw rit­
ers and effective A pril 12. The decrease
on m ost lines w ill average about 15 p er
cent. Losses on th is class of business
here the p a st year have been relatively
low.
Des Moines had a hot tim e la st year,
according to the fire insurance rep o rt
ju s t m ade by Chief W illiam B u rn ett of
the fire dep artm en t of th is city fo r 1925,
w hich shows th a t Des Moines had last

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

Paid to Policyholders—
Over $21,000,000.00
Insurance in Force—
Over $148,000,000.00

t
A. C. T u ck er, P resid en t
D . C. C o stello , S ecy .

57

W m . K o ch , V ice Pres.

58

THE

NORTHWESTERN

BANKER

What the 63rd Annual Statement Shows
A s s e t s o f 1368,818,073.
P o lic y h o ld e r s ’ r e s e r v e (M a s s a c h u s e tts sta n d a r d ) o f $316,383,808.
O ther l i a b ilit ie s $21,922,459, in clu d in g- p o lic y h o ld e r s ’ d iv id e n d s o f $11,250,000 p a y a b le in 1926.

May, 1926

cost of o p eratin g a sta te insurance de­
p artm en t fo r the sup p o rt of which such
special tax is levied?
“ This policy is followed in m any states,
not because it is rig h t or ju st, b ut be­
cause it is an easy way to get the money,
and the general public does not know
th a t in addition to all other taxes it is
being ‘soaked’ this additional sum as a
tax on insurance policies.”

S u r p lu s A s s e t s $30,511,805; 9.6 p er c e n t o f th e g e n e r a l p o lic y r e s e r v e .
T h e J o h n H a n c o c k M u tu a l w r it e s a ll fo r m s o f L ife , E n d o w m e n t an d T erm
p o lic ie s fo r B u s in e s s an d P e r s o n a l P r o te c tio n , J o in t L ife c o n tr a c ts, T o ta l
D is a b ilit y a n d D o u b le In d e m n ity , a ll th e n e w fo r m s o f G roup, W h o le s a le an d
S a la r y D e d u c tio n , a s w e ll a s A n n u ity c o n tr a c ts in v a r io u s fo rm s.
Our o r g a n iz a tio n is p rep a red to
a r r a n g e l i f e in s u r a n c e p r o te c tio n
to m e e t a n y n eed an d s p e c ia liz e s
in th e r e q u ir e m e n ts o f p a r tic u la r
c o n d itio n s a n d in h e r ita n c e ta x e s.
of

Bo s t o n . M a s s a c h u s e t t s

HARRY S. HASKINS, State Agent
417-21 Southern Surety Building, Des Moines, Iowa

A
Product of the
Mississippi
Valley
The Des Moines Life and A nnuity Company is ju st as
much a product of th e Mississippi V alley as is its corn
and w heat and other ag ricu ltu ral products.
H ere in this g reat rich life insurance territo ry , “the
com pany of cooperation” w as planted.
H ere in th e very center of th e richest ag ricu ltu ral
region in th e w orld this com pany has grown.
H ere will th e Des Moines Life and A nnuity Company
continue to prosper and its agents will “ h arv est” th e
benefit of a com pany connection th a t combines
agency cooperation, consistent, steady grow th and
absolute stability.
The progress of “the com pany of cooperation” is re ­
flected by the grow th of its agents. Can we help you?
J. J. S h a m b a u g h , Pres.

Des Moines Life and Annuity Company
Des M oin es, Iowa


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

We Pay for Knowledge— Furnish It
A m achine broke down. The operator,
the forem an, and the p la n t engineer
couldn’t s ta rt it.
The expert took one quick look a t the
machine, tapped it several tim es w ith a
ham mer, and told the o perator to s ta rt
it.
H is bill was $250. W hen the su p erin ­
ten d en t asked fo r an item ized statem ent,
he got t h i s :
T apping w ith ham mer, $1; know ing
w here to tap, $249; to ta l $250.— E x ­
change.
W HY THE BANKER MUST PREACH
LIFE INSURANCE
(C ontinued from page 17)
profitable p a rt of a bank’s plan of service,
created a demand more especially among
city bankers fo r a plan featu rin g this
phase. W e immediately began assembling
a life insurance tru st series of publicity
to educate the public to the value of life
insurance as an estate builder. Only we
arranged this so th at it could be applied
to city and ru ra l banks alike.
W e have founded this publicity upon
the one word “ S atisfaction,” and rep ro ­
duced the foregoing is the cut th a t is the
basis of our program s, along this p a rtic u ­
la r line.
A nd when people take life insurance so
as to give them the satisfaction as m ani­
fested by the a rtist in the picture accom­
panying this article, then it will be bought
instead of sold.
Returns from Florida
H. B. H aw ley, p resid en t of the G reat
W estern Insurance Company, accom­
panied by M rs. H aw ley, has retu rn ed to
Des Moines from th ree m onths spent in
St. P etersb u rg , F lorida.
Policy on Pastor
T rustees of the C apitol H ill Church of
C hrist in Des M oines recen tly took out
a $28,000 policy on the life of th eir pastor,
the Rev. N. C. C arpenter. Although this
practice is quite common in the E ast, it
is thought to be th e first policy of its
kind w ritte n in the sta te of Iow a or in
the M iddle W est. The policy is w ith the
Royal U nion L ife of Des Moines, and
the church is nam ed beneficiary in the
event of the assured’s death. The policy
will continue in force even should R ever­
end C arpenter be tra n sfe rre d to an o th er
parish.

May, 1926

THE

NORTHWESTERN

M. B. Alldredge Promoted
M ills B. A lldredge, well know n in Des
Moines and sta te insurance here, has
been elected second vice-president of the
N ational L ife A ssociation of Des Moines,
and will have general supervision of the
new business departm ent.
A rley F .
H anson, assista n t to P resid en t Jam es
H ew itt, has been nam ed assista n t secre­
ta ry , and in his new capacity will con­
tinue to act as assista n t to the president.

c¿an

New General Agent
Tom O’Connor, w ith the Jo h n H a n ­
cock agency in Des Moines fo r a num ber
of years, has been made general agent in
Des Moines fo r the Pacific M utual suc­
ceeding C. H. M iller, who died M arch 10.
Mr. O’Connor will have offices in the I n ­
surance Exchange building.

O p p o rtu n ity

W HY LOOK BACKW ARD?
B y Chas. M. K eefer
Nebraska State A gent, K ansas L ife
There are m any foolish reasons
some men will try to give,
W hen told th at life insurance
they should buy;
They kid themselves by thinking
th a t forever they will live—God need not make a place fo r
them on high.
They say the P arson told them “U n­
til death us do p a rt,”
Their obligations cease when
they reach the g ra v e ;
Such things as love fo r home-folks
are not found w ithin their heart,
To prove a love they never seem
to crave.
You talk to them of duty, their
minds filter like a sieve—
No weight they place upon the
m arriage vow;
They’ll take a chance on charity
their wife and babe will live—
They think th at all there is to life
is now.
One reason they make use of oft,
and o’er it they will gloat,
A nd when ’tis said they sneer and
backw ard shy—
A nd w ith this fool expression they
then think they have your g o a t:
“My fath er never joined, so why
should I ? ”
Young man, to me you listen, I will
give to you one fact—
The tru th of which you’ll see
w ith but a g lance;
Y our good F a th e r’s tru n k with
clothing this day is fully packed,
Yet Adam never owned a p a ir of
pants.


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

59

BANKER

—H<5*>

Blame Y o u rse lf
If th is m e ssa g e d o e s n ’t
lead YOU to a larger in c o m e !
T a k e a n y t e n a v e r a g e m e n w h o a r e s tr u g g li n g a lo n g w ith lo w p a y .
W i th o u t p r e j u d ic e , a n a ly z e e a c h c a s e . Y o u w ill fin d in e v e r y i n s ta n c e e a c h
of th e m is s o le ly to b la m e f o r h is p o o r e a r n i n g p o w e r . E v e r y o n e o f th e m
h a s h a d a g o ld e n o p p o r tu n i ty .
T h e y h a v e e i t h e r f a i le d to r e c o g n iz e it,
o r, r e c o g n iz in g it , la c k e d th e c o u r a g e to fo llo w i t u p .
N ow com es y o u r
chance.

Is

R in g in g

YOUR

D o o rb e ll

M a n y N a ti o n a l L if e s a le s m e n in c r e a s e d t h e i r in c o m e b y 5 0 % la s t
y e a r.
O n e s a le s m a n b e g a n w r i t i n g b u s in e s s in 1 9 1 8 a n d f o r a p e r i o d of
87 m o n th s h a s h u n g u p a n a v e r a g e m o n th ly p r o d u c t io n of $ 4 6 ,2 1 9 .0 0 .
Y o u c a n d o a s w e ll.
T h e N a ti o n a l L if e h a s fiv e p o p u la r lo w -c o s t p o lic ie s w h ic h m e e t a ll
fo rm s o f c o m p e titio n a n d m a k e f o r la r g e r in c o m e s .
C o rresp o n d en ce in ­
v ite d .

AGENCY DEPA R TM EN T

N ational Life Association
Home Office:

fr/an

D es M o in es, Io w a

1—

-

—

Bankers in the United States
and Canada
over 18 and under 55 years of age are eligible for

A C C ID E N T IN SU R A N C E A T C O ST
with the

Iowa State Traveling Men’s Association
DES MOINES, IOWA

Principal sum .................................................... $5,000.00
Weekly indemnity ............................................ $ 25.00
Annual Cost Never Exceeded $9
We Have No Agents.
Write for Application Blank.

60

THE

NORTHWESTERN

BANKER

May, 1926

For Bankers and Their Wants
This department of THE NORTHW ESTERN BANKER is to
assist SUBSCRIBERS in obtaining goods or service hard to
find. It is free to subscribers. Use it. ASK US, as we can
tell you where to buy anything you need in your bank or for
your bank. TELL US, as your “ w an t” w ill be published
under the above heading free of charge. In answering
classified advertisements which have key numbers please en­
close a two-cent stamp. This is used to forward your letter.

W anted em ploym ent in a bank fo r a pe­
riod of two m onths beginning Ju ly 1,
1926, by a m an tw enty-seven y ears of
age. A college g rad u a te w ith business
experience. A good bookkeeper and a t
p resent employed in the com mercial de­
p artm en t of a larg e school system . Can
give good bank references. A ddress No.
2875, The N orthw estern B anker— 3, 4,
5, 6.
Position W anted w ith bank or corpo­
ration as cashier, or other w ork where
ability to m eet the public is needed along
financial lines. Have had several y e a rs’
experience.
Can
invest.
Address
No. 2882, The N orthw estern B anker— 4.

W anted: Banking position by m arried
man 26 years of age. Seven y e a rs’ bank­
ing experience. Now employed. B est
of references. A ddress No. 2870, The
N orthw estern Banker— 5.
Position W anted: Single man, Bohem­
ian, Catholic. Over two years bookkeeper
and general a ssista n t in a tw o-m an vil­
lage bank.
D esires a change about
June 1st w here th e salary and fu tu re
outlook would be b etter th an can be
afforded by p resen t em ployers in small
town of only 200 population. A ddress
No. 2884, The N orthw estern Banker— 5-6.

For Sale: One new H erring-H allM arvin large size round-door money
safe. Two com binations and three-m ove­
m ent tim e lock. 72 Hours. Locker base
fo r silver. Cost, w holesale new $1,150.
N ever been taken out of orginal crate.
Will sell fo r $700. A ddress M essenger
P rin tin g Co., F t. Dodge, Iowa.

Position W anted: by m an 36 years of
age who has had six y e a rs’ country bank­
ing experience, two years w ith loans
and investm ents and th ree years in
charge of th e loan d ep artm en t of a life
insurance company.
D esires sim ilar
position in loan or tr u s t com pany or
country bank. Can fu rn ish A -l re fe r­
ences. A ddress No. 2891, The N o rth ­
w estern Banker— 5.

For Sale: Two 2% -inch solid steel
bank vau lt doors, highest grade construc­
tion. A bsolutely new, a t very low price.
Each w eighs 6,000 pounds. If you can
use a door of this size, th is is an ex­
ceptional b arg ain opportunity.
W rite
Victor Safe & Lock Co., Cincinnati, Ohio,
for detailed specifications.

F or Sale: F ine set bank fixtures.
M arble counters made by A rt M etal Con­
s tr u c to r Jam estow n, N. Y.
Anyone
w antng som ething fine and a t a reason­
able price will ap p reciate th is oppor­
tunity. Will send photograph. A ddress
No. 2886, The N orthw estern B anker—
Indef.

Job W anted as cashier in some good
Iowa bank. W rite to me and I ’ll be glad
to have you look up my record. Address
No. 2883, The N orthw estern Banker— 5.

F or Sale: F irs t N ational Bank build­
ing and full banking equipm ent. In ­
cludes two vaults, cannon-ball m anganese
safe. One hundred steel safety deposit
boxes, bookkeeping machine, etc. B eauti­
ful building and equipm ent. Been bank
corner fo r fo rty years.
Community
w ants new bank to open. Splendid op­
p o rtu n ity fo r good banker. Bohemian,
G erm an and Irish settlem ents. Address
F. W. M cRoberts, Receiver, Schuyler,
Neb.

W anted: Cashier fo r sm all country
bank. M ust be experienced and have
$3,000.00 to invest. A ddress No. 2887,
The N orthw estern B anker— 5.
Position W anted: Man 34 y ears of age.
Speaks low and high German. H ad 10
y ea rs’ banking experience in country
bank as cashier and assista n t cashier.
M arried. Would like to be located in a
Catholic com munity.
N ot a defunct
banker. A ddress No. 2885, The N o rth ­
w estern Banker— 5.

Steel and Copper Engraved
S T A T IO N E R Y , B U S IN E S S
ANNOUNCEM ENTS AND CARDS

For quality
The

H o m e ste a d

w o r k a d d r e ss

C o m p a n y , D e s M o in e s ,


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

Position W anted as assista n t cashier
by young single m an w ith seven y e a rs’
banking experience.
References and
recom m endations.
A ddress No. 2889,
The N orthw estern Banker— 5.

FLOWERS AND SERVICE
A L PH A FL O R A L COM PANY
P h o n e W a ln u t 362
J . S. W IL S O N F L O R A L
D r a k e 584
D E S M O IN E S

CO.

W anted: A young, hu stlin g live-wire
banker to tak e over 36 shares of r e tir ­
ing cashier and assum e bank m anage­
ment. A dairying section, n o rth ern Min­
nesota. Lake region. Investm ent needed
$4,000. Address No. 2888, The N o rth ­
w estern Banker— 5-6.
W anted: R epresentatives fo r securities
departm ent, H enry L. D oherty & Co.
Openings a t Des Moines, Sioux City,
Cedar Rapids and D avenport offices.
Security or bond experience desirable
b ut not as essential as wide acquaintance
and ability to sell high-grade invest­
m ents. Call or w rite J. L. Moore, Di­
visional M anager, 318 L iberty Bldg.,
Des Moines.
Position W anted by m arried m an w ith
high school and business college educa­
tion. Can fu rn ish A -l references. Will
invest $3,000 in new bank or good sound
old bank. A dddress No. 2890, The
N orthw estern B anker— 5.

Birthdays of the Month
* S e n d ’em a c a r d .

H. Y. H arlan , V. P., M innehaha N a t’l
Bank, Sioux F alls, M ay 1st.
S tanley M aly, P res., C ity N a t’l B ank,
Lincoln, M ay 7th.
L. H. H enry, V. P., F irs t N a t’l B ank,
Sioux City, M ay 9th.
Leo J. W egman, Cashier, A m erican Sav.
B ank, Carroll, M ay 17th.
Jo e Meyer, Cash., Consolidated N a t’l
Bank, Dubuque, M ay 23rd.
Louis G. Bein, Cash., Iow a N a t’l Bank,
D avenport, M ay 28th.
R. W. W aite, V. P., W aterloo Sav. Bank,
W aterloo, M ay 29th.
J. E. M orton, Cash., Iow a Loan & T ru st
Co., Des Moines, M ay 31st.

—

M

ß

m

r

n

i m

1( \\L O O S G -L G A P -D E V IC E S -A N D
LI o x A a c c o u n t i n c - S Y S T E M S

S old in I o w a by
J. H . W E L C H

P R IN T IN G

CO.

1166-68-70 S i x th Ave., D e s Moines .
P rin ters , B in d ers , M nfg. S ta tio n e r s .

May, 1926

THE

NORTHWESTERN

BANKER

Buys Bank Interest
H . G. K o ttk e has bought the in terest
of S. E. Davis in the O nida N ational
B ank of Onida, S. D., and will succeed
M r. D avis as assista n t cashier of th e in ­
stitu tio n .

South Dakota
Bank News
Officers South D akota Bankers
Association

DEAN H. LIGHTNER
President

President.....................Dean H. Lightner
Aberdeen
Vice President...........Arthur Chambers
Hudson
Secretary......................Geo. A. Starring
Huron
Treasurer............................... John Barton
Sioux Falls

County Bankers Meet
The F a u lk County B ankers A ssociation
held its annual m eeting a t F aulkton,
South D akota, on A pril 6th, w ith a din­
n er in the T anner H otel. The m ain
speaker of the evening was Thos. O’B rien
of H oven, who is a member of the execu­
tive council of the South D akota B ank­
ers A ssociation. H e discussed present
b anking conditions, and problem s and
presented the new outline fo r organiza­
tion of county associations as recom ­
m ended by the sta te office.
The officers of the F au lk County B ank­
ers A ssociation are : P resident, P. J.
Dunn, cashier of the Ree V alley Bank,
O rien t; secretary, J. C. Green, president
of the F irs t S tate B ank of Onaka.
Group Four Program
Group F o u r of the S outh D akota B ank­
ers A ssociation w ill this y ear hold its
annual m eeting a t W atertow n on M ay
11th. The m eeting will be held in the
p arlo r of the Lincoln H otel, and a fte r
reg istratio n , the reading of the m inutes
and the appointm ent of the nom inating
and resolution com mittees, the program
will be as follows :
A. M.

1 1 :00— Talk, Geo. A. S tarrin g , secretary
South D akota B ankers A ssocia­
tion.
1 1 :30— A ddress, H. M. H anten, president
W atertow n C learing H ouse Assotion, “ Service Charge and Econ­
omy in B ank O perations.”
p. M.

1 2 :30— Lunch, Lincoln H otel D ining
Room.
1:30—A ddress, D. H. L ightner p resi­
dent South D akota B ankers Asso­
ciation.
2 :00— A ddress, Roy E. W illy, special
counsel, South D akota B anking
D epartm ent.
3 :00—A ddress, Wm. A. Sim onton, The
M innesota Loan and T ru st Com­
pany, “ Secondary Reserve I n ­
vestm ents.”
3 :30— Open discussion by members
present.
R eport of com m ittees and elec­
tion of officers.

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Federal Reserve Bank of St. Louis

61

GEO. A. STARRING
Secretary

For Convenience
The Citizens S tate B ank of G arden
City, South D akota, has recently p u t a
teller in B radley to cash checks and take
deposits fo r th e accom m odation of the
people of B radley and its ad jacen t te rr i­
tory.
F. H. Troske Resigns
A t a recent m eeting of the directors of
the F arm ers S tate B ank of T urton, South
D akota, the resignation of F . H . Troske
was accepted. Mr. Troske has been cash­
ier of the in stitu tio n fo r the p ast several
years. W . A. M ott, who has been assist­
a n t cashier, was elected cashier, W. A.
M ueller being re-elected assista n t cash­
ier.
State to Sell Land
Jo h n B. H anten, head of th e R ural
C redit Commission fo r the state of South
D akota, has notified boards of commis­
sioners in every county of the sta te to
im m ediately ap p raise the ru ra l credit
land under th e ir ju risd ictio n , and these
appraisals will be posted fo r fu tu re re fe r­
ence w ith the p roper county officials.
The state d ep artm en t has between 400
and 500 farm s, rep resen tin g m any fo re­
closures on ru ra l cred it loans, th a t it
wishes to dispose of. This acreage will
be leased or sold on a plan much sim ilar
to th e land disposing practices of the
d epartm en t of school and public lands.
W hen the ap p raisals are in, probably
in Ju n e, the R u ral C redit B oard will
offer all th e land fo r sale. A nyone car­
ing to purchase may exam ine th e land
and the ap p raisal records and subm it
intentions of purchase, depositing a t the
same tim e five p er cent of th e price he
wishes to offer.
Cashier Resigns
E. A. E y stad , who u n til recently has
been assista n t cashier of the F irs t N a­
tional B ank of Centerville, South D akota,
has resigned his position. Mr. E y stad ex­
pects to devote his en tire tim e to the in ­
surance business, and is w ritin g fo r the
N orthw estern M utual of Milwaukee.

Enters American National
H. L. M ichaelis, who fo r the p ast five
years has been employed in banking work
a t G roton, S. D., has tak en a position
w ith the A m erican N ational B ank of
Redfield. H e tak es the place le ft vacant
by the resignation of L eonard Blume.
Opens at Burke
The B urke S tate B ank, recen tly re o r­
ganized w ith a cap ital stock of $35,000,
is now open a t Burke, S. D. L. S. Lillibridge, who has been p resid en t of the
bank in the p ast, will continue in th a t
office in the reorganization. O tto H a r­
man has been elected as cashier.
Group Meetings
A schedule of Group M eeting dates has
recently been announced by th e South
D akota B ankers A ssociation. The m eet­
ings, which will be held a t various points
th roughout the state, will all be atten d ed
by D. H. L ightner, p resid en t of the state
association, and George A. S tarrin g , sec­
reta ry . The dates are as fo llo w s:
G roup 1, Y ankton, M ay 4.
Group 2, Sioux F alls, M ay 5.
Group 3, W essington Springs, M ay 6.
Group 5, H uron, M ay 7.
Group 4, W atertow n, M ay 11.
G roup 6, B ritto n , M ay 12.
G roup 7, M obridge, M ay 13.
Group Six Program
The reg u lar annual m eeting of Group
Six of the South D akota B ankers Asso­
ciation will m eet a t B ritto n , South D a­
kota, on M ay 12th. The program of
events will be as fo llo w s:
10 :00 a. m. till noon— R eg istratio n and
smoker, lobby of the M asonic Temple.
1 1 :00 a. m.— “All A board” by auto fo r
Dr. Rice’s race horse ranch, eight miles
w est of B ritto n . See the longest b arn in
South D akota, and the larg est herd of
tro tte rs and pacers.
1 :00 p. m.—B and concert in fro n t of
S tra n d th eater, by the B ritto n M unicipal
band.
1 :30 p. m.—P ro g ram a t the S tran d
th eater.
Good speakers on im p o rtan t subjects
of in terest to the bankers of the state.
R eports of com mittees.
E lection of officers.
Round table discussion.
6 :15 p. m.—B anquet, a t the new M a­
sonic Temple, by the Temple Tea Club.
H istory shows you prospects by sta r­
light, or, a t best, by the wanning moon.—
Choate.

62

THE

NORTHWESTERN

BANKER

Will Your Customers Feed
Their Corn?
If so— have you sufficient outlet for
Y O U R FE E D ER P A P E R ?

The Live Stock National Bank
L ocated a t th e S tock Y ards
S iou x City, Iow a

Is especially well equipped to handle
Live Stock Loans
Y O U R A C C O U N T IS IN V IT E D

Out of town banks find
that our officers take
a special interest in
expediting their trans­
actions and in dealing
effectively with their
problems.

T H E N O R TH ER N
TRU ST COMPANY
Capital, Surplus and Undivided
Profits, Over $7,500,000
CHICAGO


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Federal Reserve Bank of St. Louis

May, 1926

Banks Re-opening
As evidence of the im proved financial
conditions throughout the country in
general, and in South D akota in p a rtic u ­
lar, it is in terestin g to note the num ber
of banking houses th a t have re-opened
w ith the p ast few weeks.
The follow ing is a list of banks in
South D akota which have recently re ­
organized or are now in the process of
re o rg a n iz a tio n :
B ank of K ingsbury, K ingsbury.
S ecurity S tate B ank, B eresford.
F a rm e rs’ and M erchants’ B ank, H uron.
F arm ers’ S tate Bank, Canistota.
D akota S tate Bank, Bonesteel.
B ank of W akonda, W akonda.
Tabor S tate Bank, Tabor.
Colton Savings B ank, Colton.
B ank of C enterville, C enterville.
B urke S tate B ank, Burke.
F irs t S tate B ank of W ard, moved to
E lkton to be known as the Corn Exchange
Bank.
H udson S tate Bank, H udson.
F irs t S tate B ank, Ashton.
S ecurity S tate Bank, W allace.
F irs t S tate B ank, Sinai.
Organized at Dell Rapids
The South D akota banking d epartm ent
has recently issued a c h a rter to the
“New F irs t N ational B ank of Dell R ap ­
ids.” This new in stitu tio n is a complete
reorganization of th e fo rm er F irs t N a­
tional. M ost of the stockholders in the
new bank were holders in the old one.
P lan s have not progressed as y et to the
point of announcing th e opening, b u t it
will probably be w ithin the next m onth.
Live Stock Clubs
The F irs t N ational B ank and the F irs t
and Peoples S tate Bank, both of T h ief
R iver F alls, M innesota, are organizing
jn io r live stock clubs in their commu­
nity. The F irs t N ational will direct the
activities of the sheep club, and the F ir s t
and Peoples S tate will handle the p ig club
work.
The sheep club is lim ited to 24 mem­
bers and prizes are offered by the bank
totaling $60. The p ig club will be con­
ducted u nder the same term s.
Good March Business
The Royal U nion L ife had a splendid
new business record fo r th e m onth of
M arch, Ohio leading the other states,
w ith a to ta l of 330,000 in new p roduc­
tion.
Is New Sales Manager
O. J. Jorgenson has been appointed
sales m anager of the bond dep artm en t
of the C entral T ru st Com pany of Illi­
nois. Mr. Jorgenson has been connected
w ith the C entral T ru st Com pany Bond
dep artm en t fo r the p a st five years.

May, 1926

THE

NORTHWESTERN

BANKER

fo r debate, w ith the Omaha ch ap ter w in­
ning the negative verdict. Those on the
Omaha team were A. A. W iesen and D. J.
W heeler of the C onservative Savings and
Loan A ssociation and 0 . P. Cordill of the
F ed eral Reserve Bank.

N eb rask a
B a n k N ew s
Officers Nebraska Bankers
Association

I. R. A L T E R
P r e s id e n t

P r e s id e n t .............................. I. R. A lte r
G rand Isla n d
C h airm an o f th e E x e c u tiv e
C o u n c il..................... P. L. H a ll, Jr.
G reen w o o d
S e c r e t a r y ......................W . B. H u g h e s
O m aha
T r e a s u r e r .................... F . W . T h o m a s
O m aha
G en era l C o u n s e l...........J. P. P a lm e r
O m aha

Plan State Convention
B ankers of Lincoln, Neb., and officers
of the N ebraska B ankers A ssociation
m et recently w ith the Lincoln C learing
H ouse A ssociation to form ulate plans fo r
the N ebraska sta te convention, to be held
a t Lincoln next November.
I t is intended th a t a large portion of
the program shall be in charge of the
fa c u lty of the sta te university, and a
num ber of fac u lty members were present
a t the meeting. The university athletic
d epartm en t was also represented, as this
d epartm ent is planning some special en­
te rtain m e n t fo r the v isiting bankers. The
dates are N ovem ber 11 and 12.
Seward Bankers Reorganize
The Sew ard county bankers met re ­
cently a t Sew ard, Neb., to com pletely re ­
organize th e ir county bankers associa­
tion. The county association has been
inactive since 1920, and seventeen bank­
ers were p resent to help p u t the organi­
zation across.
The follow ing officers
were elected: P resident, A. C. Beckm an,
G erm antow n S tate B ank, G a rla n d ; vice
p resident, J . E. V ance, F arm ers and M er­
chants Bank, M ilfo rd ; se cretary -treas­
u rer, C. M. W arner, S tate B ank of
B eaver Crossing.
Group Two Meets
G roup Two of the N ebraska B ankers
A ssociation held its annual m eeting a t
Columbus on A pril 22. A num ber of
prom inent N ebraska bankers and busi­
ness men were on the program , and also
Ex-G overnor M cK elv ie, who spoke on
“ The F u tu re of A griculture.”
O ther
speakers were F . J. McCauley, assistan t
cashier of the P ackers N ational Bank of
O m aha; A. J. W eaver, chairm an fo r Ne­
b rask a fo r the In lan d W aterw ays N avi­
g ation Com mission; V an E. Peterson,
secretary of the N ebraska G uaranty
F u n d Commission, and W . T. G raham ,
vice president of the F irs t T rust Com­
p any of Omaha.
To Meet at Lexington
B ankers of Group F ive of the N ebraska
B ankers A ssociation will this year hold
th e ir annual m eeting a t L exington on
M ay 26. The bankers and business men

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Federal Reserve Bank of St. Louis

63

WM. B. H U G H E S
S e c r e ta r y

of the city have planned a num ber of spe­
cial en tertain m en t featu res, and are
ready to do everything possible to make
the visit a p leasan t one fo r th e ir banker
guests.
Hold County Gathering
Members of the P la tte County B ankers
A ssociation recen tly held th e ir annual
m eeting a t P la tte Center, N ebraska,
elected officers, and disposed of all accu­
m ulated business.
More th a n th irty
bankers were in attendance, rep resen tin g
all but two of the banks in th e county.
The m eetings have been held q u arterly
in the p ast, b u t it was voted th a t in the
fu tu re they would get together b ut twice
a year.
W. H. Luers, cashier of the F irs t N a­
tional B ank of Columbus, was elected
president.
Make Service Charge
The A ntelope S tate B ank and the Se­
curity S tate B ank, both of Neligh, Neb.,
have recently in stitu te d a service charge
of 50 cents p er m onth on all open check­
ing accounts which average less th a n $50
fo r the m onth. Like m any oth er banks,
these in stitu tio n s have found th a t these
sm all accounts are carried a t a loss u n ­
less some means is taken to provide fo r
th e ir handling.
Charge Overdraft Fee
M ember banks of the Omaha, Neb.,
C learing H ouse A ssociation have estab­
lished a charge of 25 cents on each check
p u t through th e b ank which overdraw s
on the account on which the check is w rit­
ten. W hile o v erd rafts are a violation of
the law, m any thoughtless persons w ith
sm all accounts are continually com m it­
tin g th is error. I t is th ought th a t a small
charge will serve to rem ind the tra n s ­
gressor and tend to elim inate the situ a ­
tion to a g rea t extent.
Omaha W ins Debate
The members of the debating team of
the Omaha, Neb., ch ap ter of the A m eri­
can In stitu te of B anking defeated the
K ansas City team in a recent debate held
a t Omaha.
The “W orld C ourt” was the subject up

Buys Bank Interest
T. L. D arnell has recently purchased an
in te rest in the F irs t S tate B ank of E nders, N ebraska, and plans to be perm a­
nently located in th a t city M ay 1st. Mr.
D arnell has fo r th e p ast several years
been assistant cashier of a bank at W aun eta F alls.
Resigns at Scotts Bluff
P h il G irard, form erly teller of the
Scotts Bluff N ational B ank a t Scotts
Bluff, N ebraska, has resigned and gone
to Boulder, w here he has a like position
w ith the Citizens N ational Bank. Iv an
H arriso n , who has been atten d in g the
S tate U niversity a t Lincoln, N ebraska,
has been selected to fill th is position.
Valuable Bulletin
The Stock Y ards N ational B ank, of
South Omaha, N ebraska, issues every
m onth an in te restin g and valuable bulle­
tin giving receipts and disposition of live
stock a t the South Omaha m arket. The
figures given are com parative, 1926 as
com pared to 1925. The bulletin also lists
com parative top prices p aid a t the South
Om aha m arket. The Stock Y ards N a­
tional handles a g rea t deal of the live
stock business coming through the Om­
aha Y ards.
D. P. Hogan Honored
D. P. H ogan, p resid en t of the Omaha
F ed eral F arm Loan B ank, has been
elected chairm an of the finance of the
fed eral farm loan system. H e will be
in charge of the bonds sold sem i-annu­
ally, which in 1925 am ounted to $80,000,000. M r. H ogan was form erly a resi­
dent of Corning, Iowa, b u t has lived in
Omaha, N ebraska, since his connection
w ith the F ed eral F a rm Loan Bank.
Reorganized at Scotia
J. F . Coates is the p resid en t of the
new ly reorganized F arm ers S tate Bank
of Scotia, N ebraska. O ther officers are :
H en ry B red th au er, vice p resid e n t; C. D.
M cIntyre, cashier, and C. A. K rebs, as­
sista n t cashier.
Nebraska Banker Dead
B. W. M cDonald, cashier of the A llan
S tate B ank of A llan, N ebraska, died re ­
cently a t his home. Mr. M cDonald’s
death was a loss keenly fe lt in his com­
m unity, as it was by his m any frien d s
th roughout th e state.
T hat man is great who rises to the
emergencies of the occasion, and becomes
m aster of the situation.— P iatt.

64

TH E

THE

HEART

A N D SO U L
BANK

OF

YOUR

(C ontinued on page 10)
nin ety p er cent of the custom ers read
Brow n’s bank statem ent, even before the
p r in te r ’s ink is dry, and they carefully
analyze the b a n k ’s cash reserve, th e ir
o v erd rafts and the earnings.
D uring the p ast five years, the people
in the N orthw est have received some
“ d ra s tic ” instructions regarding banks
and banking and the public is fast learn­
ing th at the bank with several thousand
dollars in overdrafts, tw enty p er cent of
th e ir assets carried as “ Bills P a y a b le ,”
and a deficit if their earnings in an amount
exceeding one hundred per cent of the
bank’s capital, is not altogether on E asy
Street. The “tuition” fo r some of them
has been very expensive, and now th a t so
m any of them are post graduates and have
received their “ degrees” with honors, I be­
lieve th a t the banks in the Northwest

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

B A N K E R

should capitalize the knowledge which
their customers have received and follow
it up.
I w onder how m any bankers have
thought of th e ir depositors in the same
respect as they do of th e ir stockholders
and directors. Y our depositors are your
stockholders, w hether they hold a stock
certificate or not. The entries on th e ir
pass books and the am ounts on th eir cer­
tificates of deposits signify the am ount
of in te rest they hold in your bank. The
cu stom er’s deposits and money are your
w orking capital, and it is your aim to
pay them dividends in sound banking
service, conservative m anagem ent and
the usual in te rest ra te as paid by your
institu tio n . There are probably several
of your heavy depositors who have more
invested in your in stitu tio n th a n any of
the stockholders. W hy, then, should they
not be given all the in fo rm atio n possible
regardin g the condition of your bank

No delay in getting Returns
on

Live Stock Shipments
When deposited with us

Live Stock N ational Bank
Union Stock Yards
OMAHA

“ There Is a
Certain Satisfaction
In having your live stock
credits handled by the
Stock Y ards N ational—
you are assured th a t you
are receiving th e utm ost in
service.”

Stock Yards National Bank of South Omaha
Jas. B. Owen, V ice P resid en t
J. S. K ing, V ice P resid en t
F. J. E nerson, V ice P resid en t


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Federal Reserve Bank of St. Louis

OFFICERS
Ford E. H ovey, P resid en t
W . L. P ier, V ice P resid en t
W . H . D ressier, Cashier
L. K. Moore, A sst, to Pres.

H. C. M iller, A ssista n t Cashier
C. L. Owen, A ssista n t Cashier
T. G. B oggs, A uditor

M ay , 1926

from tim e to tim e? As much care should
be used in seeing th a t every custom er
receives your statem ent of condition,
as you see in making out your notices
to stockholders. A nd your custom ers
may come to think th a t you are asham ed
of y o u r statem ent, should they not re ­
ceive them regularly.
The item “Loans and D iscounts” is
really the only m ystery le ft in your sta te ­
m ent, if the statem ent, itself, is p repared
in an u nderstandable way. I t is not only
the “m y stery ” to the custom er b ut to the
neighboring bank, fo r it is hard to tell by
reading th e statem en t w hether to dis­
count th is item five percent or fifty p e r­
cent to tak e care of losses. To give the
custom er a clearer u n d erstan d in g of this
item, which causes so much m ystery, we
are planning on p rin tin g a complete an a­
lytical rep o rt together w ith a statem ent
of condition at least once each year.
This re p o rt will show the num ber of
loans carried by the bank, the average
loan to each custom er and the am ount
of secu rity carried. I t w ill also include
the acreage covered by real estate
m ortgages, the num ber of horses, cattle,
sheep, hogs, etc., covered in chattels, to ­
gether w ith the combined n et w orth of
all borrow ers. W e do not believe th a t
it will tak e the average country bank
more th a n two or th ree days to compile
this d ata and feel th a t it will brin g the
custom er in closer touch w ith the gen­
eral business of the bank, as well as help­
ing to take some of the “m y stery ” out
of loans and discounts.
Together w ith th is an aly tical rep o rt,
we have stru ck upon a novel way of
bringing to our custom ers an ‘ ‘ u n d er­
standable sta te m e n t” which we believe
can be used to advantage by any bank.
The statem en t we are using is shown in
the in sert in th is article.
Unless you wish to take your custom ­
ers behind the counter and show them
through all your books, I know of no
b etter way in bringing to them a clear,
u nderstandable statem ent. You would
not th in k of recom m ending to your
frien d s a doctor who diagnosed a case,
gave the cause of the com plaint and p re ­
scribed his orders in such lengthy m edi­
cal term s th a t it would be necessary to
carry a m edical dictionary every tim e
you called a t his office. The d o cto r’s
advice would be of no value to you, u n ­
less you could u n d erstan d the term s as
used by his profession.
How then, can you expect your custom ­
ers to recommend your bank to th eir
friends, when you do not try to explain
your statem en t of condition in such a
way, so th a t they all can u n d erstan d it?
W hat a blessed thing it is th a t nature,
when she invented, m anufactured, and
patented her authors, contrived to make
critics out of the chips th at were left.—
Holmes.

May, 1926

THE

FROM TEE TO TEE W ITH “CHICK’'
EVANS
(C ontinued from page 18)
the price to be paid is diligent practice.
I t loosens up the w rists and allows the
player to feel the clubhead like a weight
on the end of a string. The sensibility of
the fingers—hence the finger g rip — seems
necessary to produce this movement.
Follow the best authorities as to backstroke and follow through. There are
plenty of golf magazines and new spaper
articles from which one can learn about
golfers and their methods of play all over
the world.
A good schedule of practice fo r the
banker would be to hit twelve shots apiece
as often as he can w ith every club. Of
course, this m ust include twelve long p u tts
and twelve short p u tts and don’t forget
the jigger run-ups. Remember, too, there
are grass shots and bunker shots. I t is
always better to practice alone to avoid
interference of concentration.
A nything th at improves the game of the
average golfer will raise the general stand­
ard of. golf in this country, and it is more
desirable th a t this should be done than
th a t a few new names should be added to
the roll of champions. I t would add a
great deal to the sum of golf enjoym ent if
our standard could be lifted to th a t of
G reat B ritain, fo r instance, and if this
is once done, good playing is likely to be
carried on by the sons and daughters of

NORTHWESTERN

65

BANKER

these players. I t is not necessary to be a
champion in order to enjoy the game.
Indeed there are times when I am tem pted
to think th at it is the best way not to en­
joy it, but there is something in the sense
of gradual im provement th a t gives one a
joyful feeling of steady accomplishment.
Be sure to practice! I t is a great thing
not to have to feel ashamed of one’s game.
Charles E vans, J r.
We Have Changed A ll That
There is a story th a t someone once went
to President A rth u r and told him th at a
friend of his had recently been seen drunk.
The sententious rep ly of the P resident
w a s: “I never see a friend drunk.” I t was
a delicate way of rebuking an indiscreet
inform er.
That, however, was in the days before
prohibition had upset all m oral standards,
and had changed the laws, including the
law of hospitality.
Today a man who, as a guest at a p ri­
vate dinner, discovers th a t his host has
been looking too intently upon the wine
when it is red is supposed to feel an obli­
gation to rep o rt him fo r a violation of the
Volstead act.
I f he happens to be a m ilitary subordi­
nate of the guest, so much g reater the zeal
to have him arrested.
In the case of General B utler and Colo­
nel W illiam s of the m arine corps out in
California, it m ight charitably be hoped

th at the general had acquired in P hiladel­
phia such a fanatic passion fo r “cleaning
up the tow n” th at he could not get entirely
rid of it when tran sferred to San Diego.
The bare question of m ilitary ethics in­
volved will be much discussed in arm y
circles, b ut must be passed by here.
There are, however, certain rules of con­
duct and friendly intercourse which, if
they cannot be said to constitute “a higher
law,” do make it certain th a t any one who
tram ples upon them will be socially hanged
as high as H am an.— New Y ork Times.
Lauds Federal Reserve Bank
The fed eral reserve system of banking
has proven a g rea t anchor to w indw ard
in tim es of stress, says Jo h n W. F oster,
p resid en t of the F irs t N ational bank of
G uthrie Center, Iowa, in a recent sta te ­
ment, in answ er to an inquiry as to the
practical operation of the fed eral reserve
system in Iowa, and especially as to how
it is fu n ctioning d uring the presen t
stringency. ‘ ‘ A p p aren tly ,” he says, ‘‘it is
doing all th a t its m ost hopeful frien d s
ever expected of it.
“ The fed eral reserve b a n k ,” he con­
tinues, “ does more th a n m erely fu rn ish
money in a crisis. I t is a so rt of coopera­
tive in stitu tio n .
There are over ten
thousand banks th a t hold m em bership in
it, and they are bound to g eth er u nder
stric t n atio n al control and supervision.
They are so widely d istrib u ted th a t local

S T A T E M E N T OF C O N D I T I O N
A pril 12, 1926
RESOURCES
Loans and Discounts . . . .
O v e r d r a f t s .....................................
U. S. Bonds to Secure Circulation
U. S. Government, Municipal and
Corporation Bonds
Banking H o u s e ............................
Customers’ Liability Under Letters
of C r e d i t ...................................
Interest Earned but Not Collected
Cash on Hand and Due from Federal Reserve Bank and Other
Correspondent Banks
Due from U. S. Treasury

LIABILITIES
$17,024,161.59
4,747.76
1,000,000.00
2,219,118.69
1,000,000.00
95,964.81
67,999.53

Capital S t o c k ..............................
Surplus and Undivided Profits

$ 1,000,000.00
1,047,765.46

C i r c u l a t i o n ....................................

986,500.00

Customers’ Letters of Credit

102,024.81

-

Due led e rai Reserve Bank
D e p o s i t s .........................................

499,500.00
26,920,087.17

9,093,885.06
50,000.00
$30,555,877.44

$30,555,877.44

T H E O M A H A N A T IO N A L BA N K
W ALTER


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

W . H E A D , P resid en t

THE

66

conditions do not affect them as a whole.
Times m ay be close here in Iow a but easy
in other p a rts of the U nited S tates, east
or west, n o rth or south. In other words,
all the banks in the system rarely go
through a stringency a t the same time,
and therefore they are able to aid, and do
aid, each other as help is needed.
“ M oreover, there is a certain am ount
of ‘free m a so n ry ’ among all banks at this
tim e, regardless of w hether they are
members, and they are all now pulling to­
gether. A t Des Moines there is an a r ­
mored tru ck which is held in readiness to
carry money to banks th a t need it, and it

NORTHWESTERN

BANKER

prom ptly responds to telephone messages
fo r aid.
“ W hen a ru n was sta rte d on the N a­
tional bank of P an o ra recently, this a r­
mored car loaded w ith one hundred thou­
sand dollars in currency, followed by a
cordon of police in an o th er car, made the
run from Des Moines in fifty m inutes,
and stacked up the money on the bank
counter like cord wood. This would have
been impossible under the old system.
“ Banks w hether they are members of
the federal reserve system or not, get an
in direct benefit from it, as m ost of them
have correspondents who hold member-

THE NATIONAL PARK BANK
NEW YORK

of

Established 1856

214

B roadw ay

Uptown Offices
P ark A venue and 46th S treet
S eventh A venue and 32nrl S treet

DIRECTORS
Charles Scribner
Richard Delafield
Francis R. Appleton
Cornelius Vanderbilt
Gilbert G. Thorne
Thomas F. Vietor
John G. Milburn
William Vincent Astor

Joseph D. Oliver
Lewis Cass Ledyard, Jr.
David M. Goodrich
Eugenius H. Outerbridge
Kenneth P. Budd
John H. Fulton
Frank L. Polk
Benjamin Joy

B anking in all its branches

Commercial and Travelers’ Credit issued ;
Correspondents in all principal Cities in
the World. Foreign Exchange bought and
sold. Corporate and Personal Trusts;
Safekeeping of Securities; Collection of
Income. Investment Service for Custom­
ers. Safes in our Safe-Deposit Vaults at
moderate rental.
C ap ital, S u rp lu s


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Federal Reserve Bank of St. Louis

and

U n d ivid ed P rofits, $34,000,000

May, 1926

ship in the fed eral reserve bank and who
are in position to fu rn ish nonmembers
currency w ith g rea t prom ptness.
“ In fifty years we had six panics. The
la st of these was the g reat money panic
of 1907, as a resu lt of which the fed eral
reserve system w ith its elastic currency
and g rea t reservoir of credit was estab ­
lished. Its first te st came when the price
of corn dropped from $2 p er bushel to
22c, and by December, 1920, it had loaned
to Iow a banks approxim ately one hundred
m illion dollars and saved the day. I t has
only about 10 p er cent of th a t am ount
now loaned in this state, and is p rep ared
to im m ediately dum p ninety m illions more
into our banks if called upon to do so.
‘ ‘ The business of the w orld has always
been founded on confidence. Ninety-five
p er cent of all our tran sactio n s are p u t
over by th e use of checks, bank d rafts,
prom issory notes, m ortgages, book en­
tries, etc., which are form s of cred it and
all depend upon confidence. U nder usual
conditions it takes very little money to
carry on business, and it is only in p rim i­
tive or b arbarous society or during a
panic th a t actu al money is the p rincipal
medium of exchange.
‘ ‘ Our v ast system of credit goes on fo r
years and years until its delicate support
is broken. T hat support is tr u s t; the
tru s t my frie n d has th a t his check will
be p aid ; the tru s t I have th a t my neigh­
bor will pay w hat he owes me. This en­
ables the bank check, the prom issory note,
the bank d ra ft, and th e book account,
and o th er form s of credit to take the
place of money. W hen this sup p o rt is
broken, when citizens begin to doubt the
solvency of th eir banks, and neighbors
the solvency of each other, and all refuse
to tak e prom issory notes, bank d ra fts or
checks, b ut dem and money, we have panic,
sim ply because the business of the world
has gone back to a stric tly money basis.
“ B efore th e existence of the fed eral
reserve, when h o arding began, the money
as well as all m anner of credit would dis­
appear. Now the fed eral reserve bank
can fu rn ish any am ount of money. I f
necessary it can p rin t i t . ”
Northfield Banker Dead
Clayton D. Rice, p resid en t of the F irs t
N ational B ank of Northfield, M innesota,
and tru stee of C arleton College, died re ­
cently a fte r an illness of h ea rt trouble.
Mr. Rice was 67 years old.
M r. Rice had been p resid en t of the
F irs t N ational since 1911, and came to
N orthfield from N orth D akota.
Buy Farmers & Merchants State
The F arm ers & M erchants S tate Bank
of Ada, M innesota, was purchased re ­
cently by Jam es G rady and H . C. A amoth,
president and vice president, respectively,
of the S ecurity N ational B ank of F argo.
Mr. G rady is president and Mr. Aamoth
succeeds E. S. Jen k in s as vice president.

THE

May, 1926

NORTHWESTERN

BANKER

M in n e s o ta
B an k N ews

For a
Minneapolis

Officers M in nesota B ankers
A ssociation

J. J . M A L O N E Y
P resid en t

P r e s i d e n t .......................J. J . M a l o n e y
H eron L ake
V ice P r e s i d e n t . . .R . E. M a c g r e g o r
M in n eap o lis
T r e a s u r e r ......................... J. K . M a r t i n
L ittle P alls
S ecretary . . . . . .
. F. P. F e l l o w s
Paul

St. Paul Merger
The consolidation of the M idw ay S tate
B ank w ith the Snelling S tate B ank, both
of St. P aul, which took place recently,
gives the Snelling S tate to ta l deposits of
approxim ately $1,850,000.
H. H. Biglow, who has been president
of the Snelling S tate, w ill control both
in stitu tio n s, and the p resent officers of
the Snelling bank will continue un ­
changed. M. F . E rn st, one of the vice
p residents of the Snelling S tate, is also
p resident of the W estern S tate B ank, re ­
cently purchased by Mr. Biglow.
Urges Selling of Land
A. J. Yeigel of the M innesota S tate
B anking Commission, in a le tte r to all
sta te banks and tr u s t companies, has
urged the disposal of all item s of real
estate other th a n the p ro p erty on which
the bank itself is located.
“ R eal e s ta te ,” said Mr. Yeigel, “ is an
undesirable fo r banks because it is not
sufficiently liquid.
“ This real estate, w hich has been the
cause of m any banks being ordered
closed, has been acquired during the la st
several years of ag ric u ltu ral depression.
“ The period of depression is undoubt­
edly over. Business in the N orthw est is
on the upgrade.
“ There is now a good m arket fo r such
real estate as banks hold. M any banks
already have form ed holding companies

Correspondent— use
F. P. F E L L O W S
S e c re ta ry

to tak e over the real estate and to p ro ­
vide banks w ith cash and liquid assets in ­
stead of real estate.
“Item s listed as ‘other real estate’
should be elim inated from bank reports.
They include residence, business and
farm p ro p erties tak en through fo re­
closure.”
Institute Elects
Two hundred members of the M inne­
apolis chapter of the A m erican In stitu te
of B anking met recently a t the Radisson
H otel in M inneapolis and held th e ir elec­
tion of officers. W illiam A. K ram er of
the F arm ers & M echanics Savings was
elected president. O ther officers were
elected as fo llo w s: F irs t vice president,
M. S. Sampson of the N orthw estern N a­
tional B ank, and B ertram Olson, G ate­
way S tate B a n k ; second vice president,
Floyd A. Larson, F ed eral Reserve Bank,
and R alph P eterson, M innesota Loan &
T rust Com pany; trea su rer, Jam es J.
Clancy, U nion S tate Bank, and R obert
P eterson, H ennepin County Savings
Bank.
Cuts Rediscount
The F ed eral In term ed iate C redit Bank
of St. P aul, M innesota, has reduced its
rediscount ra te from 5% p er cent to 5 per
cent. This reduction is fu rth e r evidence
of the increasing soundness of agricul­
tu ra l conditions in the N orthw est.

MINNESOTA MEETINGS
F. P. Fellows, secretary of the Minnesota Bankers Association,
has sent to all member banks a folder announcing the dates of the
Group Meetings for the state, and also calling attention to the State
Convention. Group Meeting dates are as follows :
Group One—W inona..............
May 17 and 18
Group Two—Luverne........ .............
May 13 and 14
Group Three—Stillw ater......... ..........
May 19
Group Six and Nine—Bem idji___ ___
May 24 and 25
Group Seven—Litchfield.........................................May11
Group Eight—Biwabik................
....May 22
Group Ten—Lindstrom .................
May 20
The Thirty-seventh Annual Convention of the Minnesota Bankers
Association will be held at the Nicollet Hotel in Minneapolis, June
9, 10, and 11.

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Federal Reserve Bank of St. Louis

67

ÏÏI Metropolitan
(At inneapolis)

National Bank
(No branches)

An independent, progress­
ive b a n k— strong, friendly,
and w ith a genuine desire to
tre a t its grow ing country bank
clientele in such a w ay as to
cem ent business relationships
into lasting friendships.
Six officers w ith extensive
country bank experience stand
read y to give you r problem s
concentrated t h o u g h t and
th e ir best disinterested atte n ­
tion.
Our bond and m ortgage de­
partm ent, under th e direction
of a form er and
successful coun­
,
XE A C H
/Y O U *.*?
try banker, is at
\DOlJWo haVEt
your
disposal
MORE CEMTfi
w ith a good list
of prim e short term paper.
Collection and safe-keeping
d ep artm en ts second to none
aw ait your instructions.
WE GUARANTEE t h a t
you will find an account w ith
us both p leasan t AND profit­
able.

The Metropolitan National Bank
SIX T H ST . @ SECOND AVE. SO.

M in n ea p o lis
M in n .

68

TH E

Holds Annual Meeting
The F arm ers & M erchants S tate B ank
of F ergus Falls, M innesota, recently held
its annual m eeting in th a t city, re-elect­
ing all its officers and directors. The offi­
cers of the bank a re : P resident, O. C.
Boyum ; vice president, E d C. P ete rso n ;
cashier, T. M. A lexander, and assistan t
cashiers, A. W. Tomhave and A. A. Vollbrecht.
Buys Gary Bank
E lm er H anson, Lloyd H anson, and S. J.
S undet have recently purchased the bank­
ing interests of D. C. Jones a t Gary,
M innesota. The H ansons are also a t the

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

B A N K E R

present tim e conducting banks a t F e r­
tile, M innesota, and a t Scobey, M ontana,
and are in terested in several oth er in ­
stitutions.
Austin Bank Sold
A nnouncem ent has been made recently
th a t the Geo. A. H orm el Company has
purchased the A ustin N ational B ank of
A ustin, M innesota. Officials elected in
the reorganization are as fo llo w s: P re si­
dent, M. F . D ugan; chairm an of the
board, S. D. Catherw ood; vice presidents,
R. P. Crane, A. B. D aloger, F . G. Sasse,
J. H. S kinner and G. K. W old; cashier,
J D. F leckenstien.

M ay , 1926

Increases Dividend Rate
A t the last m eeting of the directors of
the M idland N ational B ank & T ru st
Company of M inneapolis the annual d iv i­
dend was increased from 8 per cent to 10
per cent. Checks rep resen tin g the in ­
creased q u arte rly dividend from 2 p er
cent to 2i/2 per cent were m ailed to stock­
holders on M arch 31.
Elected Cashier
R. H. B ublitz has recently accepted the
position of cashier of the D akota S tate
Bank at D akota, M innesota. Mr. B ublitz
was form erly connected w ith th e M er­
chants T ru st Company of W inona, and
The M erchants B ank of W inona.

P ea rson
H otel

A T THIS bank, the com-¿ V p le t e mechanism of a
world-wide banking service
is kept a living, human thing
by the personal relationships
existing between our officers
and our customers.

O n the near N orth Side

CHICAGO

Every Banking Service

C e n t r a l T r u st
COMPANY OF ILLINOIS
£25

oMonrue street a t LaSalle
CHICAGO

HE pleasure of your Chicago
visit will be heightened if
The Pearson is selected as
your stopping place. It is located
just outside of the business, the­
atrical and shopping district, yet
within pleasant walking distance;
its moderate rates, unexcelled
equipment and service, notably
good and reasonably priced food,
all make it a perfect base for
opera, concert, theatre and shop­
ping expeditions. A 300-car fire­
proof garage is close by.

T

SEND TODAY FOR
ILLUSTRATED FOLDER

W E EXECUTE F U T U R E T R AD ES PROM PTLY ON
M INNEAPOLIS EXCH ANG E
For quick execution send margins by telegraph, express,
m oney order or cashier’s check.

M IDLAND GRAIN CO.

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

M inneapolis

The Pearson is a block east of
the
intersection
of Pearson
Street and
N orth
M ichigan
Boulevard. R ates for one person
are from $3.50 to $5.00 a d a y ;
for tw o $5.00 to $7.00; tworoom suites $10.00 to $14.00.
Every room and suite with
private bath.

May, 1926

THE

Interesting Monthly Bulletin
The F arm ers S tate B ank of Sanborn,
M innesota, is issuing a m onthly bulletin
to its custom ers and frien d s which is a
real credit to the in stitu tio n and to the
com m unity. They call it the “ B ank
C ourier,” and the subscription price is
“Y our good w ill.”
The bulletin is brought out in the form
of a four-page, m im eographed, le tte r­
head size folder, and is p rinted, or mimeo­
graphed, by the bank itself. The fro n t
cover is devoted to a cartoon depicting
some tim ely subject, as fo r instance,
11 A pril Showers ’ ’ is the title on the A pril
issue.
As the F arm ers S tate is located in a
purely farm in g com m unity, the g reater
p a rt of the editorial contents of the bul­
letin is devoted to ag ric u ltu ral topics.
The second page, in addition to the m a st­
head, carries one or two editorials deal­
ing w ith seasonable farm problem s, calls
atten tio n to fu tu re local events, and also
carries “ This M onth’s B est S tory,” which
is of hum orous n atu re and a little longer
th a n the average joke.
The th ird page is devoted to W an t Ads.
H ere are gathered all the various item s
which the farm ers in the com m unity have
fo r sale a t th a t tim e, such as clover seed,
oil stove, three m ilk cows, tra c to r and
plow, seed potatoes, seed corn, calves,
a lfa lfa seed, and m any others.
The
farm er Avho has som ething to sell sim ply
notifies the bank, and the ad is inserted
fo r him free of charge.
On the fo u rth page appears in con­
densed form , tim ely farm topics from an
authentic source, as, fo r instance, in the
A pril bulletin. H ere is given the 1926
live stock outlook as broadcast by the
d epartm en t of fa rm economics of the
S outh D akota S tate College. G eneral
conditions are given first, followed by
b rie f specific phases of beef cattle, hog
and sheep production, and also dairy
products.
Cleverly draw n cartoonets scattered
throughout the bulletin help to brighten
it, and it is undoubtedly well received
am ong th e farm er-custom ers of the bank.
I t cannot help b u t draw and keep busi­
ness fo r the F arm ers S tate.

War on Bandits
The M innesota R angers, an organiza­
tion of bankers and business men
th roughout the sta te m aintained to check
bank b anditry, are planning to coordi­
nate th e ir organization w ith like protec­
tive associations in other states.
F ifty out of the eighty-seven counties
in M innesota, w ith 25 to 80 members in
each county, have been organized by the
M innesota B ankers A ssociation. The re­
m ainder of the counties will be organized
by this summer, and plans are being made
fo r com plete cooperation w ith the states
of Illinois, W isconsin, In d ian a and Iowa.
P lans fo r this huge organization were

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

69

p ro tectio n .
O U N D -W A V E S y stem s a re b e in g
w ith o u t d is tu rb in g th e ir co n ten ts.

in s t a l l e d in v a u l t s
S
H I Gc oHuEnSt To nR ba ut irnggl sa r ya r ei n sgui vr ae nn c et h pi sr e smyisut me ms . w i t h 6 5 % d i s ­
I Ns iWz eR oI Tf IeNa Gc h f vo ar uclot ma pn lde tne uimn fboerrmoaft idoono ra nodp eens itni mg sa. t e s g i v e

O . B. M c C L I N T O G K C O M P A N Y
LOS A N G E L E S
«47 S a n ta F e A v e.

HO M E O F FIC E A N D F A C T O R IE S
M IN N E A P O L IS , M IN N.

NEW YORK
SO C h u r c h S t r e e t

BANK

MIDLAND
LIMITED

Established

1836

Chairman :
THE RIGHT HON. R. McKENNA

Joint Managing Directors :
FREDERICK HYDE

EDGAR W. WOOLLEY

Statement of Condition
December 3 / st, 1925
RESOURCES
Cash in hand and Due from Banks •
Money at Call and Short Notice
Investments
Bills Discounted . .
.•
.•
.
Advances ..
•.
•.
..
.
Liabilities of Customers for Acceptances
and Engagements
Bank Premises ..
..
Investments in Affiliations
Capital Paid up
Surplus
..
Deposits ..
Acceptances and

LIABILITIES
..
•.
..
..
..
.
..
..
..
.
Engagements
..

..

$5 = £1
$353,083,306 00
93,396,746-73

..

178,738,950-52
33,185,847-18
31,8-49,753-89

..

178,738,950-52

Together with its affiliations the Midland Bank operates 2,300
branches in Great Britain and Northern Ireland, and has offices
in the Atlantic Liners Aquitania, Berengaria and Mauretania.
The Foreign Branch Office at 196 Piccadilly, London, is specially
equipped for the use and convenience of American visitors in London.
HEAD OFFICE : 5 THREADNEEDLE STREET, LONDON, E.C. 2

TH E

70

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

B A N K E R

May, 1926

recently discussed a t a m eeting held in
Chicago and atten d ed by banking officials
and sta te agents. The completed plans
will mean the arm ing of 10,000 men, all
equipped w ith automobiles.
Returns from New York
E. R. P rice, vice presid en t of W hiteP rice Company, of M inneapolis, has re ­
cently retu rn ed from a business tr ip to
New Y ork, B altim ore and o th er points
E ast. Mr. P rice rep o rts a noticeable
tren d among investm ent bankers of the
E ast tow ard a larg er volume of real essta te m ortgage underw riting.

For fifty-eight years this in stitu ­
tion has been extending a superior
service to bankers of the Central
West.
W ith such a background is it sur­
prising th at our customers find here
an understanding of their needs
which insures satisfaction.

T H E STO CK YA R D S NATIONAL BA N K
THE STOCK YARDS TRUST&SAVINGS BANK
o f C H IC A G O

The Officers and Directors of

MIDLAND NATIONAL BANK AND TRUST COMPANY
OF M INNEAPOLIS
A N N O U N C E THE C O N SO L ID A T IO N OF THE

UNION STATE BANK
with

MIDLAND NATIONAL BANK
AND TRUST COMPANY
Effective Saturday, A p ril 24, 1926
A ll of the officials and employees of the Union State Bank will become
m em bers of the staff of the A1id land National Bank and Trust Com pany.
The resources of the bank will be approxim ately $24,000,000.00 and the
capital and surplus $1,500,000.00.
Customers of the Union State Bank are cordially invited to their new
banking hom e and to avail themselves of the increased banking facilities afforded
by this merger with one of the largest national banks in the Northwest.


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Federal Reserve Bank of St. Louis

Expecting a Crowd
Three hundred visiting bankers and
th e ir wives are expected to atten d the
jo in t m eeting of Groups Six and Nine,
when they m eet in Bemidji, M innesota,
on M ay 23rd and 24th. Golf and dancing
w ill form the m ain en tertain m en t fe a ­
tures, while the reg u lar sessions in the
day tim e w ill be devoted to p rac tica l and
in stru ctiv e talk s on common banking
problems.
Ranks Third
From a recent analysis p rep ared by
the A m erican Telephone & Telegraph
Company it is in te restin g to note th a t
M inneapolis is th ird among the im por­
ta n t cities of the world in the num ber of
telephones p er one hundred population.
This ran k s M inneapolis ahead of New
Y ork City, Chicago, W ashington, Los
Angeles, C in cin n ati and Denver.
Three Times Proud
J. P . Haeckel, cashier of the F airm o n t
N ational B ank, of F airm o n t, M innesota,
is the proud fa th e r of trip le ts, two hoys
and a girl. The names aw arded these
prize w inners are Jam es A lbert, Jo e Rob­
ert and Effie Jean . M r. H aeckel rep o rts
his fam ily as well and norm al in every
respect.
Deposits Increase
Reflecting a highly favorable condi­
tion existing in the N orthw est, the last
bank call issued on A pril 12, reveals an
increase in deposits in M inneapolis banks
of $9,000,000. M ost of the gain was
made in savings accounts, Avhich would
indicate th a t people have ex tra money
to save, and are saving it.
E. W . Decker, presid en t of the N o rth ­
w estern N ational B ank, says, “Business
is good, and everything is moving along
satisfac to rily .”
“Gains in savings accounts reflect a
very fine condition,” says E. L. M attson,
vice-president of the M idland N ational
B ank & T ru st Company. “In spite of
in stallm ent buying, people are saving
th eir money. The decrease in com mer­
cial business is the norm al condition fo r
this season.”

M ay, 1926

TH E

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

B A N K E R

North Dakota
B a n k News
Officers N orth D ak ota B ankers
A ssociation

P r e s i d e n t ......................................... E d P i e rc e
Sheldon
Vice P r e s i d e n t a n d C h a i rm a n E x e c u ­
t iv e C ounc il.......................H . T. G ra ves
Jam estow n
T r e a s u r e r .................................J . E . D avis
Go od rich
ED PIE R C E
P resid en t

S e c r e t a r y ........................ W . C. M a c fa d d e n
F a rg o

To Meet in Dickinson
B ankers of the W estern M issouri Slope
w ill hold th e ir annual m eeting a t D ick­
inson, N. D., on M ay 28. W . C. M cF ad­
den, se cretary of the N orth D akota
B ankers A ssociation, announced the date
follow ing a conference w ith directors of
the group.
Banks Consolidate
C onsolidation of the F arm ers E quity
S tate B ank and the S ecurity S tate B ank,
both of U pham , N. D., has been an ­
nounced by the N orth D akota banking de­
p artm en t.
The combined in stitu tio n s
will operate under the ch a rter of the Se­
cu rity State.
Making Some Profit
Irreg ard less of the fa c t th a t m any p er­
sons thin k it crippled and would be glad
to see it suspend operations, the B ank of
N orth D akota has ju st closed a very suc­
cessful period of operation, and will
show profits in the neighborhood of $100,000.
A Consolidation
The S tate B anking D epartm ent an ­
nounces the recent consolidation of the
B ank of York, N orth D akota, w ith the
Y ork S tate B ank, under the title of the
form er institu tio n . This will give the
town of Y ork one larg er bank which will
be b e tte r able to serve the in terests of
the com munity.
The B ank of Y ork will increase its cap­
ita l stock to $15,000, w ith a surplus of
$3,000, and the form er stockholders of
the Y ork S tate B ank will own one-half
of the stock in the B ank of York. Offi­
cers elected a re : W. B. Runcorn, p resi­
d en t; G. W. Runcorn, vice p resid e n t; H.
O. Paulson, cashier, and R. H. Runcorn,
assista n t cashier. The bank will have de­
posits of $225,000, and loans and dis­
counts of about $160,000. The bank now
is located in the form er Y ork S tate B ank
building, which is up-to-date in every de­
tail.
Bank Official Dead
C arl B oystrem , form er assista n t cash­
ier of the H am ar Bank, a t H am ar, N orth


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Federal Reserve Bank of St. Louis

W . C. M A C F A D D E N
S ecretary

D akota, died recently from tuberculosis
a t Johnson City, Tennessee.
Deposits Rise
A recent rep o rt from the fo u r banks
of M inot, N orth D akota, shows th a t since
the first of the year, deposits in those
institu tio n s have made a gain of $500,000.
Takes Up Dairying
R. W. K ann, presid en t of the Foxholm
Bank a t Foxholm , N o rth D akota, has re ­
signed his position w ith th a t in stitu tio n
to take up d airy farm ing. Mr. K an n has
recently purchased a num ber of p u re­
bred G uernsey cattle.
NORTH DAKOTA NEW S
L. O. Forseth, form erly assista n t cash­
ie r of the F arm ers and M erchants S tate
B ank of G ranville, is now assista n t cash­
ier of the Peoples S tate B ank of Velva.
— $—
Myrtle A. Simonson has been ap ­
pointed teller and bookkeeper of the C iti­
zens S tate B ank of L ansford.
— $—
Agnes I. Lindemann has been p ro ­
m oted from teller to assista n t cashier of
the Peoples B ank of E nderlin.
— $—
A. B. Anderson has been elected assist­
a n t cashier of th e E n d erlin S tate B ank,
succeeding Clifford D anielson.
— $—
Thos. R. Powell has been appointed
bookkeeper and teller of the F irs t S tate
B ank of K em pton.
— $—
Gladys Tollefson has been appointed
bookkeeper of the F irs t S tate B ank of
Carson.
— $—
The York State Bank has been tak en
over by the Bank of York. H en ry O.
Paulson, form erly vice presid en t of the
Y ork S tate Bank, is now cashier of the
B ank of York, succeeding G. W. R uncorn
who has been elected vice president.
— $—
The Farmers Equity State Bank of
Upham has been taken over by the Se­
cu rity S tate B ank of Upham.

71

For Better Government
A. G. Wedge, chairm an of the legisla­
tive com m ittee of the M innesota B ankers
Association, has w ritten to all banks in
the state, urging the officers to tak e a
personal in te rest in the selection of state
senators and rep resen tativ es a t the com­
ing prim aries in June.
Mr. W edge says: “I t is not the p ro ­
vince of this com m ittee or our state asso­
ciation to attem p t to d ictate the selec­
tion of public rep resen tativ es. W e do,
however, believe th a t in the in terest of
good citizenship, fair-m inded men can be
both nom inated and elected. Our last
legislature was largely composed of such
men, and we urge you as an individual
and a banker to cooperate as f a r as pos­
sible in continuing such rep resen tatio n
in the next session.”
Colonel Coolidge
The president’s fath e r is dead. F o r the
second time since Calvin Coolidge entered
the W hite House, death has taken one of
his immediate family.
The first time it was the son who was
ju st growing into closest com panionship
with him and now it is the companion of
m any years, the cherished father.
The president and his fam ily will have
the sym pathy of their countrymen, keener
and stronger, perhaps, because, as a t the
tim e of the death of Calvin Coolidge, J r.,
they have little o p p o rtu n ity fo r mourning
in the privacy o f home, a privilege granted
to the humblest citizen, the demands of
official life in W ashington keeping them
before the public a t times when the heart
is saddest.
Colonel John Coolidge was a unique
character and yet the typical New E n g ­
lander of the old school, who loved his
work and his home, honest and upright,
prid in g himself upon having the respect of
the community in which he lived and look­
ing upon th a t regard as one of his most
valuable possessions.
No one could doubt th at Jo h n Coolidge
was proud of his boy—he was always his
boy to him—and th a t he rejoiced in the
great honor which had come to him in be­
coming president of the U nited States,
than which we A m ericans believe there is
no g reater honor. A nd yet, from the early
hour of th at A ugust m orning in 1923, when
the fath er adm inistered the oath of the
high office to the son by lam plight in th at
little prim itive home, to the day of his
death, there was no undue elation in being
the fath e r of the president and the selfcontained New E ngland farm er was the
same John Coolidge to his neighbors as
before the day of his reflected glory.
Colonel Coolidge seemed to take his
son’s elevation to the presidency as n oth­
ing unnatural.
He had seen him advance from one posi­
tion to another and neither fath er nor son
looked upon such advancements as sub­
jects
fo r
self-glorification.— H artfo rd
C our ant.

72

THE

Iowa A nnual Fire Report
OWA contributed more th an its f a ir
share to K ing V ulcan in 1925, ac­
cording to the annual rep o rt of S tate
F ire M arshal J . E. T racy forw arded to
th e governor recently, judging from the
$9,724,482 to tal fire loss fo r la st year.
This is an increase of $1,794,832 over
1924 figures. The num ber of fires re ­
po rted also increased by 683, m aking a
to ta l of 6,118 fo r the p a st year.
The alarm ing th in g about his report,
says Mr. Tracy, is the fa c t th a t forty-one
fires caused a to ta l loss of $3,403,441,
which is more th a n a th ird of the entire
y e a r ’s loss. H e also points out a n o ta­

NORTHWESTERN

BANKER

ble increase in the fires from an unknow n
origin, this figure being 1,079, an increase
of 109 over the preceding year.
Council Bluffs suffered the larg est fire
of the y ear on December 3d, w ith to tal
loss of $886,343. Rockwell City, on No­
vem ber 11th, had a $215,000 loss, and Le
M ars ran k ed th ird w ith a $197,000 loss
on Ju ly 6th. Town dwellings led in num ­
ber of fires w ith 3,063, fo r a to ta l loss
of $1,329,657. F arm dwellings were sec­
ond w ith 535 fo r a to ta l loss of $1,668,691, and even school houses, forty-seven
of them, con trib u ted $233,843 loss.
A ccording to m onths and to ta l loss,
December was first w ith $1,479,291 from
667 fires. F eb ru ary was second w ith

May, 1926

932 fires aggregating $1,229,330, and J a n ­
u ary th ird , 975 fires w ith $1,227,379 loss.
Among fire causes, sp ark s from flues
lead w ith 2,011, fo r a loss of $885,606.
Unknown came second w ith 1,079, and
defective stoves, pipes, etc., to taled 465.
One hundred sixty-seven fires were
caused by lightning and in only th ree
cases were the buildings rodded.
P olk county, w ith Des Moines th e cen­
ter, had 707 fires, fo r a $637,079 loss.
W oodbury county, w ith Sioux City, was
second w ith 508 fires fo r a $164,948 loss,
and P o ttaw attam ie county, Council
Bluffs, the center, had 312 fires w ith th e
record loss of $1,012,864.

"There ain’t no horse that can’t be rode”
S U N -F ISH IN G , w hirling, raring backwards . . . the worst out­

law broncho o f the range, after bucking and pitching his way
into a w ide reputation, finally m et a rider w h o rode him high, w ide
and handsom e for first prize at the round-up.
T hus arose that old saying on the cattle ranch, “T here ain’t no
horse that can’t be rode.”
& s

There are tim es w h en problem s pre­
sent them selves and seem to defy all
solution. Y et to apply th e m eaning
o f that apt W estern phrase, they can
be solved. T h ey are th e bronchos
that kick over th e traces in th e rou­
tin e affairs o f business and banking.
T hey are th e u nusual occurrences
that require th e special attention
and careful thought o f a capable
executive.
A n d th er ein lies th e strength o f

a s

a

D r o v e r s Se r v ic e . A th o u sa n d
B an k s fin d it e m in e n tly satisfac­
tory in caring for all their Chicago
business.
A th o u sa n d m ore u se D R O V E R S
SERVICE for their Stock Yards busi­
ness. For its speed and efficiency
pleases their customers w h o buy and
sell in the C hicago Market.
Y ou can depend upon D R O V E R S
SERVICE for your Bank.

D

r o v e r s

;

NATIONAL B A N K
TRIJ5T& SWIMG5 BANK


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Federal Reserve Bank of St. Louis

May, 1926

THE

NORTHWESTERN

BANKER

the m eeting, and outlined the steps neces­
sary to p erfect the organization.

IOW A
SEG TIO N
Officers Iow a Bankers
A ssociation
P r e s i d e n t .......................E m i l W e b b i e s
B u rlin g to n
V i c e P r e s i d e n t , i . . .C. C. J a c o b s e n
M ap leto n
T r e a s u r e r .................... A. E . H i n d o r f f
N ew ton
E M IL W E B B L E S
P resid en t

S e c r e t a r y ....................F r a n k W a r n e r
D e s M oines

The June Convention
F ra n k W arner, secretary of the Iow a
B ankers A ssociation, has issued a le tte r
to the banks of Iowa, calling to th e ir a t­
tention the dates of the state convention
to be held this y ea r a t Sioux City, Ju n e
21st, 22nd and 23rd, and also em phasiz­
ing details in th a t connection.
H e calls atten tio n to the im portance of
hotel reservations, and requests th a t
these reservations be m ade im m ediately.
N egotiations are also under w ay tow ard
securing reduced railro a d rate s fo r those
atten d in g the convention, announcem ent
of which will be m ade later.
The sixth annual m eeting and luncheon
fo r county presidents and secretaries will
be held on M onday, Ju n e 21st, a t the
M a rtin H otel, and it is urged th a t every
county association send th e ir president
and secretary as a delegate to this m eet­
ing. The ex-councilm en’s d inner w ill be
held in the evening of the same day, also
a t the M artin, and it is requested th a t
S tate H ead q u arters be notified in ad ­
vance so th a t reservation can be. made.
A ny past-m em ber of the council of ad ­
m in istratio n is eligible.
P re sid en t W ebbies announces th a t the
speaking program is tak in g form nicely,
and it is planned to have the addresses as
p rac tica l as possible, w ith plenty of
“ shop ta lk .” The Sioux City com mittee
on en tertain m en t has been active, and
plenty of fu n is in store fo r the visitors.
Lucht Heads Bankers
W a lte r Lucht, cashier of the E ldridge
Savings Bank, of E ldridge, Iowa, was
elected president of the S cott County
B ankers A ssociation a t its recent m eet­
ing held a t the Cham ber of Commerce in
D avenport.
O ther officers elected by the association
a r e : R. 0 . B yerrum , cashier of the B et­
te n d o rf Savings B ank, who w ill serve as
vice p re s id e n t; Zack G. S uiter, cashier
of the P rinceton Savings B ank, was
elected trea su rer, and A. E. Goetsch, of
the P eo p le’s T rust & Savings B ank, D av­
enport, was chosen secretary.
P rogress of the vigilantes com mittee
were detailed a t the m eeting by J. R.
Q uinlan, state chief. H e said th a t sim­

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Federal Reserve Bank of St. Louis

FRANK W ARNER
S ecretary

ila r organizations were being form ed in
Illinois, w here the Iow a plan was being
closely followed. H e commended the or­
ganization in S cott county.
Horton Principal Speaker
H e rb e rt H orton, cashier of the Des
Moines N ational Bank, was the p rincipal
speaker a t the recen t annual m eeting of
the D allas County B ankers A ssociation,
held a t Adel, Iowa. Mr. H o rto n ’s ad ­
dress was one of in te rest to all of the men
present. H e pointed out to the men a
num ber of fac ts reg ard in g the business
which would be of benefit to them and
sta te d em phatically th a t he believed
there was an era of b e tte r tim es ahead
of them. M r. H o rto n has charge of the
country bank business of th e Des Moines
N ational.
Bankers Meet at Dyersville
M embers of the Dubuque County B ank­
ers A ssociation m et recently a t D yers­
ville, Iowa, and form ulated plans fo r the
establishing of a vigilantes system in the
county. Donald F . H untoon was nam ed
as county chief in charge of th e work.
J. R. Quinlan, special agent fo r the
Iow a B ankers A ssociation in charge of
vigilante developm ent, was presen t a t

Committee Appointed
A com m ittee of eighteen members has
been appointed by A. L. E dw ards, p resi­
dent of the Des Moines ch ap ter of the
A m erican In s titu te of Banking, to nom i­
n ate candidates fo r the annual election
to be held early in May.
Jam es B rad b u ry o f the B ankers T ru st
Company is chairm an of the com mittee.
The oth er members are George Ratcliffe,
C apital City S ta te ; L. A. W arren , C en tral
S ta te ; V. T. B onnett, Des Moines N a­
tio n a l; K . P . P ottorff, E uclid Avenue
S ta te ; N ora C. P ark , F arm ers Savings of
R unnells; P . T. Betz, F arm ers Savings
of G rim es; Leo Stahl, F ir s t F ed eral
S ta te ; R ay H arm on, F irs t M ortgage Cor­
p o ratio n ; R alph Peterson, F irs t N ational
of V alley Ju n c tio n ; C. A llen Evans,
Home S avings; V erne Deskin, Iow a N a­
tio n a l; Charles B. C lift, Iow a T ru st &
S avings; G. R. Jones, Peoples S avings;
J . E. Atwood, Iow a Loan & T r u s t; E liza­
b eth Tipton, U niversity S ta te ; Jo h n C.
Jew ett, V alley N atio n al; and C. W . A lt­
man, Shaffer S tate of A ltoona.
To Avoid the Mud
The civic organizations of Omaha, Ne­
braska, and Sioux City, Iowa, are ta k in g
steps to inform to u rists coming to those
cities from the east and north, th a t they
should avoid all roads d irectly east and
so u th e ast of Omaha, and if possible to
reach Omaha by way of Sioux City. The
roads in n o rth ern Iow a are good the year
around, and th ere is also a h ard surfaced
road leading from Sioux C ity to Omaha.
In stru ctio n s have also been issued to in ­
form au to ists from the w est to drive
from Omaha n o rth to Sioux City, ra th e r
th a n attem p t to cross Iow a d irectly east
from Omaha.

Nothing Wrong with Iowa
O TH IN G wrong w ith Iow a except th a t en tirely too m any of us get
u p in the m orning a t the alarm of a Connecticut clock, b u tto n a p a ir
of Chicago tro u sers to Ohio suspenders, p u t on a p a ir of shoes made
in M assachusetts, wash in a P ittsb u rg h tin basin, using C incinnati soap
and a cotton tow el made in New H am pshire, sit down to a G rand R apids
table, eat pancakes made w ith M inneapolis flour, spread w ith V erm ont
m aple syrup, and K an sas City bacon, frie d on a St. Louis stove, buy fru it
p u t up in C alifornia, seasoned w ith Rhode Islan d spices and sweetened w ith
Colorado sugar, p u t on a h a t made in P hiladelphia, hitch a D etro it tin mule,
fed on Texas gasoline, to an Ohio plow and w ork like hell all day long on
an Iow a farm covered w ith New E ngland m ortgages, send our money to
Ohio fo r auto tires, w ondering why Iow a taxes are $2.75 p er acre, while
the farm ers of Ohio pay a $1.00 ta x and drive on paved roads, and a t night
we craw l u n d er a New Je rse y b lanket to be k ep t aw ake by a dam n dog,
the only home product on the place— w ondering all the while why ready
money and p ro sp erity are not more ab u n d an t in th is w onderful sta te of
ours— Exchange.

N

73

74

T II B

N 0 11 T I I W E S T E H N

B A N K E II

D IREC TO R S AND
O FFIC E R S

S ta te m e n t of C o n d itio n
A P R IL 12, 1926

RESOURCES
Tim e and Dem and Loans .

. $5,132,853.64

U. S. B o n d s ...................................

342,630.79

S tock in F ed eral R eserve B ank

19,500.00

R eal E sta te and F ix tu res .

.

86,234.78

Cash and due from B anks and
U. S ..............................................

1,374,382.30
$6,955,601.51

L IA B IL IT IE S
C a p it a l .............................................. $ 300,000.00
S u r p lu s ..............................................

350,000.00

U n d ivid ed P r o f i t s .......................

148,097.59

R eserved for T axes & In ter est
C irculation

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

90,000.00

ALFRED G. SMITH,
Chairman
ALFRED C. SMITH,
President
G. L. CURTIS,
Vice President
President, Curtis
Companies, Inc.
G. W. DULANY, JR.,
President, Eclipse
Lumber Co.
President, Climax
Engineering Co.
H. W. SEAMAN,
Inland Waterways Advisory
Committee
M. J. GABRIEL,
President Gabriel
Lumber & Fuel Co.
J. PETERSON,
J. O. SHAFF,
Farmer and Live Stock
Dealer
B. M. JACOBSEN,
E. J. CURTIS,
Vice President Curtis
Bros. & Co.
C. A. ARMSTRONG,
Pres. C. F. Curtis
Company, Inc.
W. R. SMITH,
General Manager
Clinton Corn Syrup
Refining Co.
A. P. BRYANT,
Manager of Operations
Clinton Corn Syrup
Refining Co.
F. H. VAN ALLEN,
V. P. and Sec’y.
J. D. Van Allen & Son
Inc.
H. S. TOWLE,
V. P. and Treas.
Towle & Hypes Co.
O. P. PETTY, Cashier

300,000.00

D e p o s i t s ........................................ 5,767,503.92
$6,955,601.5]

J. H. NISSEN,
Assistant Cashier
H. G. KRAMER,
Assistant Cashier

E s ta b lis h e d
1870

May, 1926

Suffers Fire Loss
F ire practically destroyed the building
of the F irs t N ational B ank of G uthrie
Center, Iowa, early last m onth. The
vault of the bank, however, rem ained in ­
tact, and all of the banks records and
papers were found to be in p erfect condi­
tion. I t was possible to remove all of
the bank fu rn itu re and a p a rt of the fix­
tures, which can be used again.
The contents of the second floor which
housed several offices, was a to tal loss.
M ost of the ten an ts, however, had com­
plete insurance coverage.
The bank opened in tem porary q u a r­
te rs the day follow ing the fire, and a r ­
rangem ents were made im m ediately fo r
the erection of a perm anent building.
County Bankers Meet
The Carroll County B ankers A ssocia­
tion on A pril 8th held th eir annual m eet­
ing a t the B urke H otel in Carroll, Iowa,
w ith about fo rty members present. The
business m eeting and program was preceeded by a four-course dinner, w ith
good food, and plenty of it. Leo J. W egman, cashier of the A m erican Savings
B ank of Carroll, and president of the
County A ssociation, presided.
In addition to the members, there were
p resen t two mem bers of the county board
of supervisors, and two representatives
of the S tate A ssociation, J. R. Q uinlan
and H. Y. Yackey.
One of the p rin cip al topics up fo r dis­
cussion was the organization of the
county vigilantes in Carroll county. Mr.
Q uinlan told of the m ethod used in o r­
ganizing the vigilantes in other counties,
and explained its operation. Mr. Y ackey
told a num ber of in terestin g incidents
relativ e to the recent cap tu re and convic­
tion of bank robbers in the state, and
em phasized the need in every county of
a vigilantes organization.
The members of the Carroll County
B ankers A ssociation then voted to p er­
fect a vigilantes organization in Carroll
county, u n d er the direct supervision of
the sheriff, Mr. Schmich.
The present officers were re-elected fo r
the coming year.
Takes Up Insurance
V incent K elly, who fo r the p ast twelve
years has been cashier of the F arm ers &
M erchants S tate B ank of G raettinger,
Iowa, has resigned his position to take
up insurance fo r the B ankers L ife, Des
Moines. Mr. K elly will have his head­
q u arters in Sioux C ity.

City National Bank
C LIN TO N IOWA

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Federal Reserve Bank of St. Louis

Consolidation at Olin
The Citizens Savings B ank and the
F irs t N ational B ank, both of Olin, Iowa,
have merged into one in stitu tio n , u n d er
the nam e of the Citizens Savings. Glenn
Lynch, form erly cashier of the Citizens
Savings, reta in s this position in the con­
solidation.

THE

May, 1926

New Bank at W est Bend
W est Bend, Iowa, has a new bank which
opened on M onday, A pril 26, 1926. The
new in stitu tio n is known as the Iow a
S tate B ank. The officers a r e : F re d J.
Figge of Ossian, president, and E. H. Ivlis a rt of Ossian, cashier. W est Bend is
one of the thriving, rich com m unities of
the state. M r. Figge is one of the good

NORTHWESTERN

75

BANKER

Cashier at Lockridge
B ern ard G lotfelty is the newly ap ­
pointed cashier of the Lockridge S tate
Bank a t Lockridge, Iow a. H e succeeds
Mr. H uene, who has resigned to go w ith
the sta te banking d epartm ent.

to the la st call issued A p ril 12th. The
banks had a to ta l of $39,530,850 in de­
posits as com pared w ith $36,464,980 on
December 31, 1925.
Genius borrows nobly.— Emerson.

Let us show you
how v a l ua ble a
strong, progressive
Des Moines connect
tion can be to your
bank.

F R E D J. FIG GE

bankers of Iowa. H is home is in Ossian,
w here he is president of the Ossian S tate
Bank, an in stitu tio n th a t has $35,000 fo r
its capital, surplus and undivided profits
of over $43,000 more, and deposits n ea r­
ing $1,000,000. Mr. Figge has been a
citizen o f Ossian and W inneshiek county
fo r m any years.
Mr. K lisa rt, cashier, also comes from
O ssian w here he has been identified w ith
the Citizens S tate B ank. H e is a young
m an w ith splendid hanking experience.
Land Southern Jobs
The F ish er Company, bank and office
fixture specialties of Charles City, Iowa,
have recently been aw arded a num ber of
equipm ent co ntracts in L ouisiana and
M ississippi.
W aln u t fixtures are to be installed in
a new court house a t Monroe, Louisiana,
and the telephone exchange in the same
city. O rders fo r bank fixtures w ere also
secured at Natchez and O ulfport, Mis­
sissippi, w here new bank buildings are
u nder construction.
George H aughey, represen tativ e fo r
the F ish e r Company, rep o rts consider­
able building in progress throughout the
southern states, both rem odeling and new
stru ctu res.
Bank Deposits Up
A gain of more th a n $3,000,000 in de­
posits and $2,500,000 in loans was made
by the national banks of Des Moines and
V alley Ju n c tio n from the first of the year

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

BANKERS TRUST CO.
B A N K.
Cor. 6th and Locust Sts., Des Moines
Capital $1,000,000.00

Surplus $200,000.00

THE STATE CENTRAL SAVINGS BANK
KEOKUK, IOWA

Capital ............................................................................................................$ 200,000.00
Surplus and Undivided Profits ................................................. ............. 329,574.16
Deposits ..........................................................................................................2,803,196.77
W I L L I A M L O G A N , P r e s id e n t
l>. J . M O N T G O M E R Y , V i c e P r e s i d e n t
A S A P H B U C K , V ic e P r e s id e n t
C . J . B O D E , C a s h ie r
A L V I N K R A F T , A s s i s t a n t C a s h ie r
L . J . W O L F , A s s i s t a n t C a s h ie r

::

ACCOUNTS

OF

BANKS

AND

BANKERS

INVITED

::

76

THE

NORTHWESTERN

BANKER

May, 1926

Manning Banker Dead
D. W. S utherland, who fo r more th a n
forty-one years has been presid en t of the
F irs t N ational B ank of M anning, Iow a,
died recently a t his home in th a t city, a t
the age of 81 years. Mr. S u th erlan d had
been a resident of M anning since 1882.
Consolidation
Stockholders of the F irs t N ational
B ank of New Sharon, Iowa, have bought
controlling in te rest in the Citizens S tate
B ank of the same city, and have m erged
the two in the Citizens S tate building.
This consolidation gives the C itizens
S tate deposits totaling more than $500,000, m aking it one of the stro n g banking
in stitu tio n s of the county.

We U n d e rsta n d
Long experience and intim ate relationship
have given the Cedar Rapids N ational a keen
understanding of the many problem s con­
fronting banks in every section of Iowa. Add
to that our careful attention to individual,
special problem s and you will understand why
we have had the privilege of serving the same
institutions, year after year, throughout the
state.
Y our correspondent problem s are vital.
They need careful consideration. We u n d er­
stand how they should be disposed of. And
we dispose of them to your entire satisfaction.

“T h is B a n k W as N o t B u ilt in a D a y '

75he

Cedar Rapids National
Bank
O FFIC E R S
Ralph V an V echten
Chairman o f the Board
Glenn M. A verill
President
Geo. F. Miller
V ice-President


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Federal Reserve Bank of St. Louis

Martin Newcomer
V ice-President
Chas. C. Kuning
Cashier
Peter Bailey
A ssistan t Cashier
Marvin R. Selden
A ssistan t Cashier

Geo. W. Swab
A ssistan t Cashier
V an Vechten Shalfer
A ssistan t Cashier
Bertha M. W olf
A ssistant Cashier

Locates in Jefferson
W . D. Hallowell, assista n t cashier of
the B ank of A nkeny, has removed to
Jefferson, Iowa, w here he has taken the
position of assista n t cashier in the Iow a
S tate B ank, recently organized in th a t
city. Mr. H allow ell expects to move his
fam ily to Jefferson some time in May.
C. H. Berg Dead
C. H. Berg, p resid en t of the Union
T ru st & Savings B ank of Dubuque, Iowa,
died recently a t his home in th a t city.
Mr. B erg was 85 years old a t the tim e of
his death. Mr. B erg has been connected
w ith banking activities fo r the p ast
th irty years, and was presid en t of the
U nion T ru st & Savings since 1919.
To Sell Cars
T. H. Malcolm, form erly cashier of
the Citizens N ational Bank of Belle
P laine, Iowa, has resigned his position
w ith the bank to enter the autom obile
business. He, w ith his two brothers, will
op erate in M arengo u nder th e nam e of
the Malcolm Chevrolet Company. M r.
Malcolm has been w ith the Citizens N a­
tional fo r the p ast tw elve years. Chas.
B ata, fo rm er teller, was m ade assista n t
cashier of the C itizens N ational, and E.
H. H inton, who comes from Coggan,
Iowa, has been hired as bookkeeper.
Davenport Banker Dead
Rudolph R ohlfs, prom inent resid en t of
Scott county and a director in the A m eri­
can Commercial & Savings B ank of D av­
enport, Iowa, died recently a t his home
there. Mr. R ohlfs was one of the fo u n d ­
ers of the old F arm ers & M echanics Sav­
ings Bank, and was vice presid en t of
th a t in stitu tio n when it was consolidated
w ith th e A m erican Commercial. H e was
also an officer in both the G uaran ty L ife
Insu ran ce Com pany and th e S ecurity
F ire Insurance Company.
A gentlem an is one who understands
and shows every m ark of deference to
the claims of self-love in others, and ex­
acts it in retu rn from them.— H azlitt.

May, 1926

TH E

NORTHWESTERN

77

BANKER

Added to Staff
Miss A n ita Logli is the new addition
to the clerical staff of the B ank of A n­
keny, a t A nkeny, Iowa. Miss Logli is a
very capable young lady, and her m any
frien d s wish her success in h er new po­
sition.
Goes to Earlham
R alph E. H u n te r is the new assista n t
cashier a t the B ank of E arlham , a t E a rl­
ham, Iowa. Mr. H u n te r was form erly
em ployed in a bank a t M adrid.
Sells Bank Interests
J. T. N ervig has sold his in te rest in
the F arm ers Savings B ank of Swea City,
Iowa, and resigned his position as cash­
ier. H e expects to devote his entire
tim e to the recently organized F arm ers
Loan & Investm ent Company.
R obert A. H aglund, who purchased the
stock of Mr. N ervig, will assume the
cashiership of the institu tio n .

en r a s s i n g
U nd er T h is N ew S ign
\
I

v
v

s
\

-

\
'X
IOWA
10A N
' g

Cashier Resigns
C. C. Childs, fo r the p ast twelve years
cashier of the F ir s t N ational B ank of
Em erson, Neb., has resigned to become
associated w ith the Toy N ational Bank
of Sioux City. F . A. M ieras succeeds
Mr. Childs as cashier and A lexius M.
K uhl of Osmond, Neb., has been elected
assista n t cashier.

m u si

Builds New V ault
The Sheldon N ational B ank of Sheldon,
Iow a, has a new v au lt in the course of
construction. The doors fo r the vault
will weigh three and one-half tons each,
are eight inches thick, and are equipped
w ith an anti-dynam ite devise, and are
as near b u rg lar proof as is possible to
m ake them.
Celebrates Birthday
Charles Shrder, presid en t of the Iow a
N ational B ank of D avenport, Iow a, re ­
cently celebrated his seventieth b irth ­
day. Mr. Shuler was born in Rock
Island, Illinois, and has spent the g rea ter
p a rt of his life in the business and bank­
ing activities of the Tri-C ities. H is con­
nection w ith the Iow a N atonal dates
back tw enty years.
To Sell Bonds
W. J. Rieke, who fo r the p ast fourteen
years has acted as teller in the Union
Savings B ank, of D avenport, Iowa, has
resigned his position w ith the bank. Mr.
Rieke has tak en a position w ith H enry
L. D oherty and Company, a nationally
know n bond house. The D oherty Com­
pany are opening offices in the F irs t N a­
tional B ank building.
Elected to Board
A t a recent m eeting of the board of
directors of the Peoples T ru st & Savings
B ank, Clinton, Iowa, T. W ilson Gobble

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Federal Reserve Bank of St. Louis

Step in Our Front Door
We W elcome You to

This Old Bank with
Nine Branches of Service
:

Company

$ T ru st
B
M em ber

A

F ederal

N

K

R eserve

System

DES M O IN ES, IOWA

T IIE

78

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

B A N K E R

M ay , 1926

was elected to the board. H e fills the
vacancy le ft by the death of his fa th e r,
the late T. M. Gobble. Mr. Gobble has
also assum ed the general m anagership
of the T. M. Gobble Company.

M ERCHANTS

NATIONAL, BANK
C E D A R

R A P I D S ,

I O W A

“ Services of the
H ighest O rder

yy

The P resident of the la rg e st bank in his
county, w ith resources over two million dol­
lars, says:
“We have used the M erchants N ational Bank
as our m ain correspondent bank for more th an
tw enty years, and the service they have ren ­
dered has been of the highest order, and this
not only applies to accommodations extended
and the handling of the money end of our ac­
count, but likewise to the counsel and consid­
eration, and the in te rest th a t th ey have shown
in the w elfare of our business.
“The men connected w ith the M erchants N a­
tional Bank are of outstanding character, keen
business insight and particularly do they know
the needs of the country banker and the tria ls,
tribulations and vicissitudes th a t he m eets.
They are alw ays considerate in dealing w ith
situations, liberal to a fau lt, and a t the same
tim e they are careful, conservative and consci­
entious m en.”

R eso u rc es $ 1 5 ,0 0 0 ,0 0 0
James E. Hamilton President

P. C. Frick
Vice President

Mark J. Myers
V ice Pres. & Cash.

E. E. Pinney
V ice President

S. E. Coquillette
Vice President

Edwin H. Furrow
V ice President

E. B. Zbanek
Vice President

H. N . Boyson
V ice President

L. W. Broulik
A ssistant Cashier

Roy C. Folsom
Vice President

Fred W . Sm ith
A ssistant Cashier

Boosting Iowa
In a recent issue of The Breda News,
a weekly new spaper published at Breda,
Iowa, appears an advertisem ent of the
Breda Savings Bank. The bank has taken
the entire last page, and on it they do
some real honest-to-goodness boosting fo r
good old Iowa. The ad starts out like
th is :
The Tall Corn G row s!
W here ? IN IOW A .
Yes—on Iow a F a rm s ! Who says Iow a
Is B ro k e1?
There is then listed a total of thirteen
farm s, com prising 1,321 acres, which
changed hands in th at community on
M arch 1, 1926. The lowest price paid p er
acre was $240, and the highest $312, with
a total amount of money involved of
$376,670.00. The advertisem ent goes on
to say:
“ These figures are encouraging in spite
of the fact th at the present m arket price
of corn and oats is rotten. W e have a
num ber of men in Congress who are do­
ing their best to place the farm er on a
level with industry and labor, but they
are in the m inority and practically help­
less. So it is up to us to help ourselves
as we always have been doing. Let us
keep on with diversified farm ing. F eed­
ing hogs is nearly always profitable, and
the cow and the hen p ay out.”
A condensed statem ent of the bank’s re ­
sources follows, and the bank points out
th at it is carrying $40,000 in Liberty
bonds over and above what is required.
And they are taking care of their cus­
tomers at 6%, investing surplus in Uncle
Sam ’s securities u n til they need the
money.
First National, D eW itt
The combined statem en t of condition
of the F irs t N ational B ank and the
F arm ers & Citizens Savings B ank of De
W itt, Iowa, gives loans and discounts a t
$1,047,519.64; cash and due from banks,
$243,784.00; deposits, $1,331,404.32; and
surplus and profits of $185,257.18. The
to ta l resources are $1,641,061.50. D irec­
to rs of both banks a r e : G. M. Sm ith, C.
H. A rth u r, Geo. M yers, S. B. W alker,
W. H. W alker, L. N. W illiam s, and P au l
Siegmund.

Goes to Chariton
H. C. W inder, form erly with the B ank­
ers T ru st Company, Des Moines, has ac­
cepted the position of assista n t cashier
of the S tate Savings Bank of C hariton,


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Federal Reserve Bank of St. Louis

May, 1926

THE

Citizens First National
The Citizens F irs t N ational B ank of
Storm Lake, Iowa, in its condensed s ta te ­
m ent of A pril 12th, shows loans of $772,399.32; bonds, $199,261.98; cash, $335,968.75 ; deposits, $1,191,771.07 ; and to ta l
resources of $1,332,232.54. Officers of
the bank a re : P resident, Geo. J. S challer;
cashier, R. A. Jo n e s; assista n t cashiers,
R alph E. Sheffield and W ayne A. Myers.
Des Moines National Bank
The statem ent of condition of the Des
Moines N ational Bank, Des Moines, on
the call A pril 12th, gives to tal resources
of the bank a t $18,456,819.37. Of this
am ount, $10,136,569.73 is in loans; $7,288,550.40 in bonds and c a sh ; and the
balance divided between stock in federal
reserve bank and real estate.
The deposits of the bank are listed at
$17,032,456.08.
First National, Davenport
The combined statem en t of the F irs t
N ational B ank and the F irs t N ational
Company of D avenport, Iowa, taken at
the close of business A pril 12th, shows
the deposits listed a t $5,528,327.53; loans
and discounts of $3,365,651.64; U. S.
bonds a t $759,126.54; other bonds and
stocks, $1,049,284.69; and to ta l resources
of $7,078,494.49.
Iowa National, Des Moines
The Iow a N ational B ank and the Des
Moines Savings B ank & T ru st Com­
pany, Des Moines, Iowa, in th e ir com­
bined statem ent of condition as of A pril
12th, discloses to ta l resources of both
in stitu tio n s of $28,252,143.58. The Iowa
N ational lists loans and discounts a t $11,575,070.12, and the Des Moines Savings
B ank & T ru st a t $4,900,538.38. D eposits
in the Iow a N ational are $16,680,304.57,
and deposits in the Des Moines Savings
B ank & T ru st are $8,514,312.10, giving a
combined to ta l in both in stitu tio n s of
$25,194,616.67.
Citizens Savings, Eldora
Resources and liabilities of the C iti­
zens Savings B ank of E ldora, Iowa, ac­
cording to a recent statem ent of condi­
tion, are $328,436.54, w ith deposits of
$249,019.48. R. W . Yarwood, cashier,
says: “Our deposits are now the largest
of any tim e in our history, and w ith our
cash and bonds of more than $70,000 we
are feeling p re tty good.”
Glenn Lynch Cashier
A nnouncem ent is m ade of the recent
consolidation of the Citizens Savings and
the F irs t N ational, both of Olin, Iowa,
under the nam e of the Citizens Savings.
I t is planned to increase the cap ital stock
to $30,000. Glenn Lynch is the cashier
of the merged institu tio n s.

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

79

INSURED MORTGAGE BONDS
-------------A NATIONAL SE C U R IT Y ------------Are largely secured by First Mort­
gages on Owner-Occupied Homes in
American Cities;
Guaranteed by the Mortgage Security
Corporation of Am erica; and--------Insured Principal and interest front
date of issue to date of maturity by the

National Surety Company
of N ew York
Financial Institutions in large num ­
bers are adding m aterially to their
present business by acting as local
distributor for Insured Mortgage
Bonds. W rite for Circular 101.

White-Price Company
In v e s tm e n t Securities
PHOENIX BUILDING
MINNEAPOLIS

R educe Farm Loan R isks
(L ittle Talks on Tiling, No. 17)

S A FETY of farm loans is
largely determined by de­
pendability of farm incomes. In
turn, reliability of income de­
pends much on assurance of good
yields. By taking much of the
gamble out of the farming busi­
ness, dependable crop yields
would remove that much risk
from the business of lending
money to farmers.

HE drainage dries out and
warms up the soil in wet sea­
sons so that crops start quicker,
grow faster and mature earlier.
It admits plant roots to deeper
water reserves and so protects
them from damage in dry season.
Thus tile drainage makes crop
yields dependable regardless of
weather conditions.

T

Tile Drainage Takes the Risk Out of
Crop Yields, Farm Incomes and Loans

Mason C ity B rick and T ile C om pany
312 Denison Bldg.

Mason City, Iowa

K E E P Y O U R O F F IC E R S
in closer to u c h w ith y o u r s av in gs an d chec kin g a cc ounts b y th e use of our e x p e r t m a il in g service.
O ur s p e c ia lty : D u p li c a ti n g L e tte rs , A ddre ss in g, M atc hing, F o ld in g a n d Mailing.
D E S M OIN ES D U PL IC A T IN G CO.
D E S M OINES, IOW A
917-919 W E ST GRAND AVE.

80

THE

Jones Elected President
A t the recent annual meeting- of the
Buena V ista County B ankers A ssociation
held a t Storm Lake, Iowa, R. A. Jones,
cashier of the Citizens F irs t N ational
B ank of Storm Lake, was elected p resi­
dent. Mr. Jones succeeds H . A. Vogel,
of Newall.
George E ginton was re ­
elected as secretary.
A six -th irty dinner was served, and
follow ing the election several m atters of
im portance were discussed by the ban k ­
ers present.

NORTHWESTERN

now in the banking business a t Renville,
M innesota.
Mr. N ervig has announced th a t he will
not leave Swea City, but m ay devote all
his tim e to the F arm ers Loan and I n ­
vestm ent company, which was organized
early in the year, and the business of
which has opened up in good shape.
Approves Correct Form
In a recent le tte r sent out to all Iow a
bankers, by B ank S up erin ten d en t L. A.
A ndrew s, he calls atten tio n to a correct
form to be p rin te d on deposits slips rela­
tive to the collection of checks and d rafts.
Quoting from Mr. A ndrew ’s le t t e r :
“ Several im p o rtan t m a tte rs have come
to the a tten tio n of the D ep artm en t re ­
cently which will be of in te rest to all
the banks under supervision. Several
im portan t decisions have recently been
made by our S tate Courts and also the
U nited S tates Suprem e Court in regard

W ill Leave Farmers Savings
J. T. N ervig has sold his in te rest in
the F arm ers Savings B ank of Swea City,
Iowa, to R obert A. H aglund. M r. H aglund will assume the position of cashier
in the near fu tu re .
Mr. N ervig has been w ith the bank
the last three years, coming to Swea City
from H ard y to succeed C. F. B ier who is

The Royal Union Life
Insurance Company
Des Moines, Iowa

Strong and Progressive

Paid to Policyholders—
Over $21,000,000.00
Insurance in Force—
Over $148,000,000.00
I
A. C. T u ck er, P resid en t
D. C. C o stello , S ecy.


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Federal Reserve Bank of St. Louis

BANKER

W m . K o ch , V ice P res.

May, 1926

to the collection of checks and d ra fts,
in which they have held ag ain st the de­
pository bank unless au th o rity was directely given by the depositor fo r the
collection of checks and oth er item s.
F rom the C ourt’s decision it seems to be
necessary th a t this au th o rity be p rin ted
on the fro n t of the deposit slip, if the
deposit slips are made out personally by
the depositor, or, on the S ig n atu re C ard
above the signature. The m ain point
being th a t the depositor m ust have d i­
rect knowdedge of the agreem ent and
method of collection. The follow ing form
has been approved by the A tto rn ey G en­
eral of this s t a t e :
“In receiving item s fo r deposit or col­
lection, this B ank acts only as depositor’s
collecting agent, and assumes no responsi­
bility beyond the excercise of due care.
All item s are credited subject to final
paym ent in cash or solvent credits. This
bank will not be liable fo r d efau lt or
negligence of its duty selected correspond­
ents nor fo r losses in tran sit, and each
correspondent so selected shall not he li­
able except fo r its own negligence. This
Bank or its correspondents may send
items, directly or indirectly, to any bank
including the payor, and accept its d ra ft
or credit as conditional paym ent in lieu
of c a sh ; it may charge back any item at
any time before final paym ent, whether
returned or not, also any item draw n on
this bank not good at close of business on
day deposited.”
Publishes Simple Statement
U nder date of A p ril 12, 1926, the
F irs t Iowa S tate T rust and Savings
B ank of B urlington, Iowa, has published
a statem en t th a t “any man or woman can
u n d erstan d .”
S tatin g th a t “this bank owes to its
depositors, $9,602,565.67, the statem en t
goes on to show cash of $1,137,231.96, U.
S. bonds, $317,342.11, other bonds, $1,690,934.23, call loans, $850,000, first
m ortgage loans on Iow a real estate, $2,452,603.07, w ith $3,957,193.26 loans to
corporations and individuals.
This in stitu tio n is now in its 51st year.
Officers in c lu d e :
C halles E. P erkins, chairm an of b o ard ;
E. W ebbies, p resid e n t; L. C. W allbridge,
vice p resid en t ; J . G. W aldschm idt, vice
p resid e n t; W. G. K urrle, vice p re sid e n t;
C. T. Simmons, vice p resid e n t; R. L.
Bunce, vice p re sid e n t; L. M. W ilson, cash­
ie r; E lm er Rauenbuehler, ass’t cashier;
L. T. P an th er, ass’t cash ier; E. J . N or­
ton, ass’t cash ier; R ay H um phrey, mgr.
bond d ep t; T. H. W ilson, auditor.
A Correction
In the A pril issue of T he N orthwest­
ern B anker , in the story headed, “D aven­
p o rt M erger Effective A p ril 1st,” and
dealing w ith the m erger of two of D aven­
p o rt’s larg est banking in stitu tio n s, the
Union D avenport T ru st and Savings

May, 1926

THE

B ank and the S cott County Savings
B ank, under the nam e of the U nion Sav­
ings B ank and T ru st Company, the name
of O tto H ill, vice president, one of the
prom inent bankers of the state, was by
m istake om itted from the list of direc­
tors of the new institu tio n .
T he N orthwestern B anker is anx­
ious to call the a tten tio n of its readers
to this error. M r. H ill, p articu la rly well
known through his long connection w ith
S tate B ankers A ssociation activities, has
been a d irector of both the D avenport
Savings B ank and the U nion D avenport
T rust and Savings B ank fo r more th an
15 years.
H e was vice president of the D avenport
Savings Bank and later was made p resi­
dent. W hen it was consolidated w ith the
Union Savings Bank, under the nam e of
the U nion D avenport T rust and Savings
Bank, he was made senior vice president.
H is official title now, following the con­
solidation of A pril 1st, is vice president
and director of the U nion Savings Bank
and T rust Company.

NORTHWESTERN

BANKER

A ppreciate The Opportunity
To Secure

THE SHORT TERM NOTES
Of
U tility Companies
N otes A re Guaranteed By The

W. B. FOSHAY COMPANY
Resources Of Our Companies

Over $16,000,000.00
Financial Statem ents U pon Request
“ A ll Y o u r M o n e y — A ll t h e T i m e — O n T i m e ”

Goes to Malvern
P au l Betz, form erly cashier of the
F arm ers Savings B ank of Grimes, Iowa,
has accepted the same position w ith the
F irs t N ational B ank of M alvern, Iowa,
and is already on the job. A nother addi­
tion to th e officer personnel is th a t of
F . H. K ruse, who has been elected to
the position of assista n t cashier.
New Bank Opens
A new addition to the banks of Iow a is
th a t of the F arm ers Savings B ank a t
F red erik a, recently opened in th a t city.
The bank is housed in a fine new build­
ing, and its equipm ent is of the latest and
m ost up-to-date kind. The officers of the
new institution are C. W . P enning­
ton, p re sid e n t; L. C. H agedorn, vice
p resid e n t; F re d Rewoldt, J r., cashier,
and John M. V ankirk, assistant cashier.

“C o o p e ra tio n
Convention Dates
M ay 3-6 S pring M eeting, A. B. A.
E xecutive Council, P inehurst,
S. C.
Ju n e 7-9 W isconsin, W ausau.
Ju n e 9-11 M innesota, M inneapolis.
Ju n e 15-16 South D akota, W atertown.
Ju n e 17-18 Illinois, Springfield.
Ju n e 21-23 Iowa, Sioux City.
Ju n e 22 N orth D akota, G rand
F orks.
Septem ber 20-23 F in an c ial A dver­
tisers A ss’n., D etroit.
O ctober 4-7 A. B. A. Convention,
Los Angeles.
N ovem ber 11-12 N ebraska, Lincoln.


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Federal Reserve Bank of St. Louis

Is th e
F o u n d a tio n
CHAS. SH U L E R , P resid en t
FR A N K B. Y ETTER , V ice P res.
WM. H . GEHRM ANN, V ice P res.

o f F in an cial
P erm an en ce”

L O U IS G. B E IN , Cashier
H ERM AN STAAK, A sst. C ashier

Iowa National Bank
Davenport, Iowa

81

82

TH E

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

B A N K E R

M ay , 1926

N o Shortage of Farm Loan
M oney for Iowa

CAPITAL AND SURPLUS OVER §1,000,000.00

E s ta b lis h e d 1874

Getting down to fmv
damentals, remember
that service and stability are the basic
elements of our instb
tution’s cooperation
to Iowa banks and
bankers.

O FFIC E R S

C H A R L E S E. P E R K IN S ,
C hairm an of Board
E. W E B B L E S , P resid en t
L. C. W A L L B R ID G E , Vice Pres.
J. G. W A L D S C H M ID T , Vice Pres.
W. C. K U R R L E , Vice P resid en t
C. T. SIM M ONS, V ice P resid en t
R. L. B U N C E , V ice P resid en t
L. M. W IL SO N , Cashier
E L M E R R A TJEN B U E H L ER ,
A ssistan t Cashier
L. T. P A N T H E R , A ssistan t Cashier
F. J. NORTON , A ssistan t Cashier
RA Y H U M P H R E Y ,
M anager B ond D ep artm en t
T. H . W IL SO N , A uditor

D IREC TO R S

JO H N B LA U L. P resid en t Jo h n B la u l’s Sons Co.
W IL LIA M B O N G E R T , T reasurer D ehner Cigar Co.
CARSON, P resid en t Boise P ay ette Lum ber Co.
H. W. C H IT T E N D E N , P resid en t C hittenden & E astm an Co.
W. N. C H U R C H IL L , P resid en t C hurchill D rug Co.
J . R. C O PE L A N D , P resid en t C linton Copeland Company
W A L T E R B. EA TO N , Vice Pres. C h ittenden & E a stm an Co.
A ' ^ « IL M A N . Secretary B urlington Lum ber Co.
H A R O L D W . G R U P E , Vice P res. Lagom arcino-G rupe Co.
G. G. H IG B E E . P resid en t M urray Iron Works
C. S. L E O P O L D , P resid en t Leopold Desk Co.
C. H . M O H LA N D , A ttorney
R O B E R T M OIR, C apitalist
C. E. P E R K IN S , Trustee
E. S. P H E L P S , Insurance
S. RA N D , P resid e n t R and Lum ber Co.
R A Y R E D F E R N , F arm er
H E N R Y R IT T E R , R etired
J. J. S E E R L E Y , A ttorney
R A L P H E. SCHRA M M , J . S. Schram m Co.
E. W E B B L E S , P resid en t

F I R S T K r V ¡» E sB A N K
MEMBER FEDERAL RESERVE SYSTEM BURLINGTON IA


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Federal Reserve Bank of St. Louis

3

B y an Iowa Banker
ECEN TLY , when talking to the
m anager of the m ortgage loan de­
p artm en t of one of the larg est in ­
surance com panies in Am erica, I ra th e r
apologized fo r the u n fo rtu n a te s ta te ­
m ents th a t have recently been placed be­
fore the public th a t th ere was a d earth
of farm loan money in the sta te of Iowa.
This man, whose com pany p u ts from $35,000,000 to $40,000,000 of new money each
year into farm loans, stated th a t it was
more the people of Iow a th a t ought to
be sold on th e ir own sta te th a n to w orry
much about the people in the E ast, as
they had m any sources fo r g ettin g defi­
n ite and accurate inform ation and know ­
ing the exact conditions, and th a t such
w ild p ropaganda as had been m entioned
had little effect on th eir attitu d e.
H e also made the f u rth e r statem ent
th a t as long as th e ir in te rest was paid
more prom ptly in Iow a th a n in any other
sta te in the union, and as long as they
had less delinquencies and had acquired
no land, th a t they expected to continue
placing ju st as m any funds in th e state
of Iowa as they could find outlet for.
M oreover, he states th a t a t the present
tim e they were absolutely unable to place
as large a volume of fu n ds as they were
desirous of doing.
P ra ctically th is same statem en t was
m ade by m anagers of one or two other
large com panies who are extensive lend­
ers in the sta te of Iowa.
I t is a fa c t th a t is well know n to every
b an k er and financier in th is state, th a t
th ere is more money offered today fo r
fa rm loans in Iow a th an has been of­
fered fo r m any years, and th a t th e de­
m and fo r them has fallen off very
m arkedly. S tatistics show th a t during
the first six m onths of 1925 insurance
companies, m ortgage com panies and in ­
dividuals handling 90 p er cent of the
loans in the sta te of Iowa, placed of rec­
ord m ortgages ag g regating $58,000,000,
and in the second six m onths only $29,000,000. In other words, the dem and was
cut in two. In d icatio n s p o in t th a t the
first six m onths of 1926 w ill not ru n m uch
heavier th an the last six m onths of 1925.
In the first six m onths of 1924 th ere was
over $41,000,000 recorded.
The dem and fo r money m Iow a has
dropped very m aterially.
The Iow a
farm er, w ith good hog and cattle prices,
and enormous corn and g rain crops, is
paying his debts.
In te re s t collections d u rin g the p a st six
m onths have been b etter th a n they have
been fo r several years, and m any fa rm ­
ers are reducing th e ir indebtedness.
It is very tru e th at the agricultural com­
m unities today are not buying, and th a t
wholesalers and reta ile rs are feeling the
effect of this, b u t the farm er him self is

R

May, 1926

TH E

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

B A N K E R

O n e o f th e h ig h lig h ts o f I o w a
b a n k in g a c h ie v e m e n t d u rin g th e
p a s t fo r ty -fiv e y e a r s is th e r e c o r d
o f s o u n d a n d s te a d y g r o w t h c o n ­
s is te n tly m a in ta in e d by th e D e s
M o in e s N a tio n a l B ank.
T o th o s e I o w a b a n k e rs w h o a r e
b r o a d e n in g th e ir c o n n e c tio n s, its
h e a r ty r e s p o n s iv e n e s s a n d a m p le
fa c ilitie s quickly c o m m e n d it.

LOUIS C. K U R T Z
C hairm an of th e Board
JO H N II. HOG A N
P resident
H. R. H O W E L L
Vice P resident
H. E. R U M SEY
Vice President
A N D R EW J. H U G L IN
- Vice P resident
H E R B E R T L. H O R T O N
- >
Cashier
C LA R EN C E A. D IE H L
A sst. Vice Pres.
W A L T E R J. R O B E R T S
Asst. Vice Pres.
It. H. C O LLIN S
Asst. Cashier
ED W IN F. B U C K L E Y
Asst. Cashier
G E O R G E D. TH O M PSO N
Asst. Cashier
CLY D E H. D O O L IT T L E
Trust Officer
TA M LIN S. H O L LA N D . M anager Bond D ept


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Federal Reserve Bank of St. Louis

83

THE

84

NORTHWESTERN

BANKER

Over a million better
letters are dictated to

the Ediphone every day.

Let us sh o w y o u w h y /
THOS. H A RRIS, D istributor
116 E l e v e n th St.
Des Moines, Io w a
P h o n e W a l n u t 908

Edison's New Dictating Machine
mnng

A t y o u r service
in E astern Iow a

PEOPLES
T RUST &

and

SAVINGS

W estern Illinois

_

BANK

PeoplesTrusiákSavin^anli
CLINTON, IOWA.

R em em ber i t th is -w a y -'“PEOPLES TR U ST
OVER 30 YEARS OF SERVICE
T he N orthw estern Banker

May, 1926

paying his debts and he is p u ttin g him ­
self on a more su b stan tial footing th a n
he has been in the p ast eight or nine
years, and I ven tu re to say th a t condiditions, fundam entally, in the sta te of
Iowa, are on a b etter and more su b stan ­
tia l basis now th an they have been for
the p ast five years.
I t is tru e th a t th ere are still some sore
spots. Yet, statistics show th a t not over
10 per cent of the land changed hands
during the land boom, and it is n ’t possi­
ble th a t over more th an 2 or 3 p er cent
of the land was excessively encum bered
beyond the type of loan th a t insurance
com panies would handle. H ow ever, this
m ay v ary in some com munities, b u t in ­
vestigations th a t have been made in some
counties bear this out, and also bear out
the fa c t th a t a very large p ro portion of
farm s are absolutely clear of encum ­
brance. I f a thorough and careful in ­
vestigation is made in every county it
will show th a t from 33 1/3 to 45 p er cent
of the farm s in those counties are abso­
lutely clear of encum brance of any kind
whatsoever.
Country Store Experiences
Mr. H. C. Lee, of Chicago, commenting
on the rules fo r clerks recently prin ted in
this column, w rites:
“Although my experience in a ‘general
store’ came several years later than yours,
the hours were ju st as long, the duties as
many and varied, and the potatoes a p ­
paren tly ju st as rotten. Never can I fo r­
got the potatoes! You make no mention
of the b u tter and eggs. Possibly they were
not there, but I recall various shades and
textures of the form er and many long
hours at the homemade candler with the
la tte r.”
The butter and eggs were there, but we
did not prepai-e the butter fo r shipment.
W e had at times as much as 1,500 pounds
of bu tter in the cellar at one time. W hen
the hens began to lay in the spring, we
took in as many as three big wooden tubs
full on a Saturday. There were no egg
boxes then. The butter, good, bad and in ­
different, was shipped to the com pany
stores of the coal mines on the u p p er K an a­
wha River. Sad, smelly stuff much of it

FIRST NATIONAL BANK,

ISîïiP

D IR E C T O R S

B. F S W IS H E R
P ickett, Swisher & Farweli
R. J. H O X IE
S ecretary W aterloo F ru it
Commission Co.
A. M. P EA C E
Vice P resident

*

Vice P resident W aterloo Bldg
& Loan Association.
H. W. G ROU T
Real E state
C. A. M ARSH
P resident
(y¿<2T't<3T'e’¿ l / â S S


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Federal Reserve Bank of St. Louis

'T 'H E F irst N ational B ank of W aterloo is
4 equipped to give you the highest degree of
and' efficiently
SER
V IC
----C E, «and
■ ■ do
■ • 'it rom ptly
"
—
'y conat all times.
F ifty-eight years of steady
con­
servative grow th enables this bank to extend
such service.
O FFICERS

C. A. M ARSH, President
M. PLA C E, Vice President
W IL L A. LANE, C ashier
P W E IG H M E T . A ssistant Cashier
O. L. M O R R IS. A ssistant Cashier
A

Total

Resources

Over

$ 2 ,9 0 0 ,0 0 0 .0 0 .

W a t e r l o o , L o iv a
D IRECTO RS

W

W. MARSH
President Iowa D airy S epara­
tor Co., P resident Associated
Mfg. Co.
J. T. SULLIV AN
Lawyer.
J O. TR U M B A U ER
Vice P resid en t F arm ers Loan
and T ru st Co.
H A M AINE
President H. A. Maine St Co.
W IL L A. LA N E
Cashier

May, 1926

THE

NORTHWESTERN

85

BANKER

yfyiore than 600 Iowa
banks have chosen this
institution as their Des
Moines correspondent.
?

R esou rces O ver
$ 2 6 ,0 0 0 ,0 0 0 .0 0

)

CAPITALy£S¡g*30Q0.000V_

\ J

OFFICERS
Homer A. M iller
Clyde E. Brenton
H. T. B lackburn
Geo. E. P earsall
A lbert J. R obertson
J. R. Capps
R. L. Chase, Jr.
Jam es F. H art
J. B urson
Sherman W. Fow ler

P resid en t
V ice Pres.
V ice P res.
V ice P res.
V ice P res.
Cashier
A sst. Cash.
A sst. Cash.
A sst. Cash.
A sst. Cash.

DIRECTORS
Geo. N. A yres
H. T. B lackburn
Clyde E. Brenton
Howard J. Clark
Gardner Cowles
J. H . Cownie
E. C. F inkbine
J. B. Green
Wm. C. Harbach

F. H . Luthe
M. M andelbaum
Hom er A. M iller
Geo. E. P earsall
Ralph H . Plum b
M. Shloss
E. R. Stotts
O. H . Thompson
G. M. V an E vers

" te a

Iow4 NattonalBank
D e s M o in es S avin g s Ban k and Trust Co m pa n y
¿Iowa's Largest Bank - Des Moines - Sixth and Walnut


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Federal Reserve Bank of St. Louis

THE

86

NORTHWESTERN

On M ay 2, 1895, th e C E N T R A L S T A T E
B A N K o p en ed for business.
D u rin g th e 31 years w e h ave b een serv­
in g th e com m ercial estab lish m en ts o f
D es M oines and Iow a, it has b een our
constant aim to exten d and adjust our
fa c ilitie s to m eet m odern con d itio n s and
requ irem en ts.
T O D A Y w e are b etter able th a n ever
b efore to serve th e b usin ess com m u n ity
in every p h ase of m odern banking.

OLD

R E L I A B L E

C e n t r a l St a t e B a n k
OF DES MOINES

Banking, Trusts and Investments
Safe Deposit Vaults
Member

Federal

Outstanding
Characteristics
of “ American Commercial
and Savings” service in look­
ing after collections in the
Davenport district are

DISPATCH AND
DEPENDABILITY
Well over a half century’s
experience, based upon inti­
mate knowledge of our field,
is back of this service.


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

Reserve

May, 1926

was, and we paid the same price fo r white
and cloudy butter th at we did fo r sweet,
golden, clean rolls; and the same fo r little
bantam eggs th at we did fo r the big “cornfed” variety.
W hat we liked best as a clerk was keep­
ing stock in order, getting the bolts of dry
goods neatly stacked, displaying neckties
in the show cases, posting the books, a r ­
ranging “gents’ furnishings,” and w aiting
on p retty girls, one in particular. She
finally fell fo r our youthful charms and
gab. W e m arried and went to housekeep­
ing. A fter our first Sunday dinner we
went out under the apple tree to smoke,
while she washed the dishes and cried (we
learned years a fte r), because we did not
volunteer to help h e r ! H ap p y d y s.—
From Chicago Journal o f Comrrerce.

OUR
TH IR TY - FIRST
B IR TH D A Y

TH E

BANKER

System

AMERICAN

COMMERCIALS
S A V IN G S B A N K

s/*

D A V E N P O R T , IO W A

■zy
mimi’
, P i

[ÚSi?

W ith True-Webber
H a rry H allenbeck, m anager of Cedar
R apids office of T rue-W ebber & Co., has
added to his sales staff S. J. Pooley. Mr.
Pooley is a g rad u ate of G rinnell college,
class of 1892 and fo r several years has
been a member of its board of trustees.
He has been a resident of G rinnell
th irty -eig h t years and most of the tim e
engaged in the banking business there,
and at one tim e was secretary and ch a ir­
man of G roup Six of the Iowa B an k ers’
Association. H e will continue to reside
in G rinnell. Mr. Pooley brings to his
new association a wide acquaintance
among bankers of the sta te and a th o r­
ough knowledge of the investm ent busi­
ness.
Announces Consolidation
Charles B. Mills, president of the M id­
land N ational B ank and T ru st Company
of M inneapolis, announces the consolida­
tion of the U nion S tate B ank of M inne­
apolis w ith the M idland N ational Bank
and T ru st Company. All of the official
staff and employees of the Union S tate
Bank will continue w ith the consolidated
in stitution. Geo. G. S tru th ers will be a
vice presid en t and E. J. W agenhals an
assista n t cashier of the M idland N ational
B ank and T ru st Company. The to tal re ­
sources of the consolidated in stitu tio n
will be approxim ately $24,000,000.00 and
the capital and surplus $1,500,000.00.
The M idland N ational B ank and T ru st
Company is the resu lt of the consolida­
tion of two well-known in stitu tio n s, one
being the Scandinavian A m erican N a­
tional Bank which was organized in 1909
by a group of well know n people includ­
ing m any of S candinavian blood. I t was
merged in November, 1914 w ith the N a­
tional City B ank which fo r some tim e had
been operating in the Lum ber Exchange
building. The combined bank fo r a tim e
occupied a site a t 52 and 54 South F o u rth
street. In 1915 because of continued
grow th and a dem and fo r more ample
facilities it moved to the ground floor of
the S ecurity building “W here Second

May, 1926

THE

avenue crosses F o u rth s tr e e t/’ which has
ever since been its home. The nam e was
changed from Scandinavian-A m erican
N ational B ank to the M idland N ational
B ank of M inneapolis in 1917, and in 1925
it was changed to M idland N ational Bank
and T ru st Company of M inneapolis.
There are tw enty-eight members of the
B oard of D irectors consisting of men
prom inently identified w ith the leading
industries of the community.
The U nion S tate B ank was organized
in 1905. F . H. P eterson, its form er p resi­
dent, died in M arch, 1926. Mr. A. E.
Nelson, form erly vice president, resigned
•during Ju ly , 1925 to become states se­
curities com missioner of M innesota. Mr.
L au ritz Swenson, m inister to Norway,
was form erly one of its officers. The
U nion S tate B ank is one of the oldest
sta te banks in M inneapolis, and its con­
solidation w ith the M idland N ational
B ank and T rust Company affords its cus­
tom ers
increased
banking facilities
through the m any services which are re n ­
dered by the N ational B ank through its
com mercial and tru s t facilities.

NORTHWESTERN

5%


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

Farm

L

87

5%

oans

R EFIN A N CE Y O U R LO AN S N O W
W H ILE R A T E S A R E C H EA P
W E A LS O M A K E C IT Y

LOANS

IN

D A V E N P O R T , C E D A R R A P ID S ,

DES M O IN E S
IO W A C IT Y

C L IN T O N , B U R L IN G T O N

M idlan d M o r t g a g e C o m p a n y
D ES M O IN ES O F F IC E
555 S E V E N T H S T R E E T
D E S M O IN E S , IOWA

220 T H I R D

AVE.

C E D A R R A P ID S , IO W A

F. C . W A P LES
P r e s id en t
C L 1 F F O R D D E P U Y , V ic e P r e s i d e n t
R . S . S I N C L A I R , , V ic e P r e s i d e n t
IN G R A M
B I X L E R . V ic e P r e s id e n t

To Dine at Boys’ School
R. W. Yarwood, cashier of the Citizens
Savings B ank of E ldora, Iowa, w rites in
to sta te th a t bankers who atten d the
m eeting of Group 3 a t E ldora, M ay 11,
will become inm ates of the Boys’ T ra in ­
ing School a t E ldora tem porarily, fo r a r­
rangem ents have been made to have the
banquet held in the dining room of the
school. He adds, however, th a t, since no
one over 21 years of age is ever sent to
the school, bankers need have no fe a r of
perm anent com m itm ent there.
The Greatest Interest
W hat is it ? W h at should it be ? To
w hat does a norm al m an become most
devoted during his active life ? Not
easy questions to answer. In youth there
is the mere joy of living, which, a la s !
is not alw ays a joy when duties and re ­
sponsibilities pile up on a man. There
comes a tim e when courtship and m a r­
riage are all-im portant, and another tim e
when children claim a m a n ’s heart.
Then there is the g rea t duty of ea rn ­
ing a living, of m easuring up to the re ­
quirem ents of a business or profession,
to the end th a t financial com fort may be
achieved.
A nd there is governm ent
which m ust be rig h t if men are to be
contented, and given th e ir f a ir chance.
H ealth is another thing, and honor.
Men live fo r m any things a t m any d if­
feren t tim es—fo r wealth, pleasure, dis­
tinction, and all the good things of life
as they conceive them to be. They
are so m any and so intertw ined th a t a
single one of them can never be said to
be the one o f g rea test in terest.
W e all know, or ought to know, w hat
we live for, but our g rea test in te rest is
not thus disclosed. I t is w hat we are

BANKER

Year After
Year

C E N T R A L IO W A
CARROLL
IOWA

O FFIC E

R. J. S O E N E R S ecretary T reasurer
R U S S E LL D. C O LE
A SSISTA N T S E C Y .
R . H . M E M E I E R , A SSISTA N T S E C Y .
P . T . W A P L E S , M g k W e s t e r n O ffic e

OFFICERS
A.F. D A W S O N ,
JO E R .L A N E ,
IRVIN J . G R E E N ,
C .E S C H M ID T ,
P .A . T O R N Q U I S T ,

P resident
V.PreW dent
C d /h io r
Asst C as h ie r
As»» C a s h i e r

F or m ore than sixtyth ree years, year after
year, th e F irst N a tio n a l of
D aven p ort has ex ten d ed
its every fa cility to corre­
sp o n d en t banks.

JJ

T h e record of th ese
years reflects accurately
th e con fidence p la ced in
th is in stitu tio n by Iowa
banks and bankers.

FIRST
NATIONAL BANK
DAVENPORT, IOWA.

THE

NORTHWESTERN

1876

BANKER

1926

Accomplishment
T h ere is a certain satisfaction in a th in g
w ell d on e— a fa ith fu l service p erform ed .
T h e m en at th e h ead o f th is in stitu tio n
fee l th at satisfaction — and ju stly.
For m ore th an fifty years the C o n so li­
dated N a tio n a l has b een givin g to its cor­
resp ond en t banks th e “service th at sa tis­
fies.”
Y ou m ay be sure th at now , and in the
future, th e sam e sp irit of h e lp fu l co o p era ­
tion aw aits you , and that you r account w ill
receive our u sual carefu l attention .

J. K. Dem ing, P resid en t
Geo. W . M yers, V ice P resid en t
Jas. M. Burch, V ice President
Herman Eschen, Secretary
Jos. W. M eyer, Cashier

Consolidated National
Bank
UNITED S T A TE S DEPOSITORY

May, 1926

w illing to die fo r th a t uncovers the secret.
A man m ust love a th in g to die fo r it.
So, generally, love is really our g rea test
in terest. Love of wife, child and coun­
try is w hat a tru e m an will die fo r. B ut
it is b etter to live fo r them. Too o ften
it is only when a fa ith fu l w ife or a be­
loved child dies th a t we learn where our
g reatest in terest lies— too late to show
it as we should.— Chicago Journal o f Com­
merce.
Martin Newcomer Dead
The Iow a banking fra tern ity suffered a
real loss last month in the sudden death
of M artin Newcomer, of Cedar Rapids, a
veteran Iow a banker whose acquaintance
extended throughout the state.
Mr. Newcomer was one of the leading
business men of Cedar Rapids, and at the
time of his death was vice president of
the Cedar R apids N ational Bank. H e had
been in the employ of this institution fo r
the p ast qu arter of a century, and had
played a prom inent p a rt in the building
up of this large banking institution.
Mr. Newcomer was known to bankers in
all p a rts of Iow a and had been an active
and energetic member of the Iowa B ank­
ers Association fo r years. H e was at one
time president of the Cedar R apids Clear­
ing House Association, was a member of
the Federal Reserve Committee and was
active in the work of his Group Associa­
tion.
The passing of Mr. Newcomer will be
keenly felt this year at the various Iowa
group meetings, which he had attended
for years, and at which he was always an
outstanding figure, congenial and well
liked. Bankers of the entire state join
w ith officers of the Cedar R apids N ational
Bank in mourning the passing of their
friend and helpmate.
“ Scattered, our energies may not amount
to much; but let them be concentrated to
their sharpest focus on the task in hand,
and seemingly trem endous difficulties melt
away.”

Service + “ Security ” Service
Business m en and firms who m aintain sizable accounts at the
“ Security” take good banking service for granted.
They know that “ Security Service” is something m ore— that
it is adaptable to any special circumstances or emergency
th at can possibly arise w here a good bank can possibly be
of assistance.
Try the Security”

SECURITY STATE BANK
KEOKUK


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Federal Reserve Bank of St. Louis

“W here B anking Is a Pleasure ”

IO W A

Flowers are sent to do God’s work in
unrevealed paths, and to diffuse influence
by channels th at we hardly suspect.—
Beecher.
The greatest tru th s are the sim plest;
and so are the greatest men.— H are.
The genius of poetry must work out its
own salvation in a man. I t cannot be
m atured by law and precept, but by sen­
sation and w atchfulness in itself. That
which is creative m ust create itself.—
Lowell.
The m erit of poetry, in its wildest forms,
still consists in its tru th —tru th conveyed
to the understanding, not directly by the
words, but circuitously by means of
im aginative associations, which serve as its
conductors.—Macaulay.

May 1926

THE

NORTHWESTERN

BANKER

89

“ROLL OF HONOR” BANKS
It is an honor to be listed among the Honor Roll Banks. It indicates that the bank has Surplus and Undivided
Profits equal to or greater than its capital.
Such distinction is accorded to the banks listed on this page. By careful management and sound banking they
have achieved this enviable position.
These banks will be especially glad to handle
any collections, special credit reports or other
business in their communities which you may
entrust to them.
Correspondence is invited.
IOWA

Town

Davenport
Ft. Madison
Lake Mills
Little Rock

Bank

Union Sav. Bk. &
Tr. Co.
Lee County Sav.
Farmers State
First National

Capital

Town

$1,250,000 $1,250,000
50.000
56.000
25.000
38.000
25.000
26.000

Announce Convention Committees
The Iow a B ankers A ssociation has an ­
nounced the follow ing com m ittees fo r the
annual Iow a convention to be held in
Sioux City, Ju n e 21st, 22d and 23d :
Geo. Sinclair, general chairm an, presi­
dent Sioux City C learing House, p resi­
dent W oodbury County Savings Bank,
Sioux City, Iowa.
E xecutive Committee
Geo. Sinclair (ex officio member), p resi­
dent Sioux City Clearing House Associa­
tio n ; A. G. Sam, chairman, Live Stock
N ational B ank; J. L. Mitchell, F irs t N a­
tional B ank; A. B. D arling, Security N a­
tional Bank.
H otel and H ousing Committee
T. P. Treynor, chairman, W oodbury
County Savings B ank; V. C. Bonesteel,
Security N ational B ank; L. H. H enry,
F irs t N ational Bank.
E ntertainm ent Committee
H. A. Gooch, chairman, F irst N ational
B ank; C. B. Toy, Toy N ational B ank;
L. M. Ashley, F irs t N ational B ank; C. T.
McClintock, W oodbury County Savings
B ank; C. D. V an Dyke, Sioux N ational
B ank; C arlton Magoun, Sioux N ational
B ank; H. H . E pperson, M orningside Sav­
ings B ank; John Scott, Jr., M orningside
State Bank.
Registration and Badges
L. R. Manley, chairman, Security N a­
tional B ank; C. L. Fredricksen, Live
Stock N ational B ank; R. R. Brubacher,
Toy N ational B ank; R. E. Brown, Se­
curity N ational Bank.
Session Music Committee
C. A. Norrbom, chairman, F irs t T rust

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

Surplus
and
Profits

Monticello
Soldier
Wallingford
Waterloo

Bank

Capital

Monticello State
Soldier Val. Sav.
Farmers Sav.
L. & J. National

& Savings B ank; I ra Moore, Toy N ational
B ank; J . P. H ainer, F irs t N ational Bank.
A u to Transportation and H o sp ita lity
0 . D. P ettit, chairman, F irs t N ational

Surplus
and
Profits

$ 200,000 $ 225,000
20,000
28,991
15,000
35,000
200,000
210,000

B ank; D. A. Anderson, F irs t T rust &
Savings B ank; A. C. Eckert, Security
N ational B ank; H. H . Lang, F irs t National Bank.

IN C E D A R R A P ID S
300 Rooms—250 with Bath

HOTEL MONTROSE
Fireproof

Rates
$2.00 to $4.00
I

DINING ROOMS
and

COFFEE SHOP

Fp p l e y H o t e l s
-fi— * C O M P A N Y ^

90

THE

NORTHWESTERN

May, 1926

B A N K E R

INDEX TO ADVERTISERS
A
'

Page
A m e r i c a n B o n d & M o r t g a g e C o ............ 50
A m erican
C o m m ercial
&
S av in g s
B a n k ....................................... . ......................... 86
A m e r i c a n E x p r e s s C o ...................................
5

«
B a n k o f A m e r i c a .............................................
B a n k e r s T r u s t Co., D e s M o i n e s .......... .
• B a r t l e t t & G o r d o n , I n c ...................................
B o l d t , A. J. & C o ...............................................
B r o k a w & C o .......................................................
B r o w n , C r u m m e r C o .....................................

23
75
48
45
42
47

I)
D e s M o i n e s D u p l i c a t i n g C o ......................
D e s M o i n e s L i f e & A n n u i t y C o ...............
D e s M o i n e s N a t i o n a l B a n k .......................
D e W o l f & Co., I n c .............................................
D o h e r t y , H e n r y L. C o ...................................
D r o v e r s N a t i o n a l B a n k ..............................
E
E d i p h o n e C o .........................................................
E p p l e y H o t e l s C o .............................................
E v a n s “ C h i c k ” ..................................................

H a n n a - S h r e v e s C o . ........................................
76
H a n o v e r N a t i o n a l B a n k ..............................
86
H o a g l a n d , A l l u m & C o ................................
68
44
36
I
34 , I l l i n o i s - M e r c h a n t s B a n k ...............
38 / " I n d u s t r i a l A c c e p t a n c e C o r p o r a t i o n . .
74
I n t e r n a t i o n a l L i f e I n s u r a n c e C o ..........
88
I o w a L o a n & T r u s t C o ...................................
I o w a N a t i o n a l B a n k , D a v e n p o r t ..........
25
Io w a N a tio n a l B a n k , D es M o in es. . . .
Io w a N atio n al F ire In su ra n c e C o ....
I o w a S t a t e T r a v e l i n g M e n ’s A s s o c i a ­
t i o n ......................................................................
79
58
J
83
41
J o h n H a n co c k M u tu a l L ife In s u ra n c e
C o ..............................................................................
39
72

O
O m a h a N a t i o n a l B a n k ................................. 65
P

P e a r s o n H o t e l ..................................................
P e o p l e s T r u s t & S a v i n g s B a n k .............
36
P h ilad e lp h ia -G ira rd N a tio n al B a n k .
36 , -" -P o l k , H a r r y H . & C o .....................................
46
H r i e s t e r , Q u a i l & C u n d y , I n c ....................
P o l i c y h o l d e r s N a t i o n a l L ife In s . C o..

68
84
27
51
53
55

92

R

4®
54
77
81
85'
59

R o y a l U n i o n L i f e I n s u r a n c e C o .. 2 9 -5 7 - 8 0

s
S a n d e r s - M c C u l l o c h C o .................................. 33
S c o t t , O. M. & S o n s C o ..................................... 24
S e a b o r d N a t i o n a l B a n k .............................. 24
59 S e c u r i t y S t a t e B a n k ........................................ 88
S m i t h , T. H a r r i s & C o ................................... 32
S o u t h e r n S u r e t y C o ........................................ 53
. ^ S o u t h F l o r i d a M o r t g a g e C o ............ . . . . 28
5ST ^ S t a n l e y , H e n d e r s o n C o . . . ......................... 28
S t a t e C e n t r a l S a v i n g s B a n k .................... 75
L
S t o c k Y a r d s N a t i o n a l B a n k , C h i c a g o 70
S t o c k Y a r d s N a t i o n a l B a n k , O m a h a . 64
------- L a n e , P i p e r & J a f f r a y , I n c ......................... 5 1
L e a g u e of N a tio n s N o n -P a rtis a n A s84
s o c i a t i o n .......................................................... 26
rp
89
Live S to c k N a tio n a l B a n k , O m a h a ..
T h o m p s o n , R o s s & C o ................................... 52
2
L ive S to c k N a tio n a l B ank, S ioux C ity
T r u e , W e b b e r C o .......................................... 38-4 3
L y t l e C o ...................................................................

F
F a r m e r s M u tu a l H a il In s u ra n c e A ss o c i a t i o n ...............................................
F e d e r a l S u r e t y C o ..........................................
F i d e l i t y B o n d & M o r t g a g e C o ...............
F i r s t I l l i n o i s C o ...............................................
F ir s t Io w a S tate T r u s t & Sav in g s
B a n k ....................................................................
F i r s t N a t i o n a l B a n k , C h i c a g o ...............
F i r s t N a t i o n a l B a n k , D a v e n p o r t ..........
F i r s t N a t i o n a l B a n k , O m a h a ..................
F i r s t N a t i o n a l B a n k , S i o u x C i t y ..........

G

G e n eral M o to rs A c cep tan ce C o rp o ra ­
t i o n ...................................................................... 45
G r a v e s , W m . E l l i o t t ...................................... 21
G u a r a n t y T r u s t Co. o f N e w Y o r k . . . 30

H

C

C e d a r R a p i d s N a t i o n a l B a n k ..................
C e n t r a l S t a t e B a n k ........................................
C e n t r a l T r u s t Co. o f I l l i n o i s ....................
C h a p m a n , P. W . & C o .....................................
C h a s e N a t i o n a l B a n k ...................................
C h a t h a m P h e n i x N a t i o n a l B a n k ..........
C h i c a g o T r u s t C o .............................................
C i t y N a t i o n a l B a n k , C l i n t o n ..................
C o n s o l i d a t e d N a t i o n a l B a n k ..................
C o n tin e n tal & C o m m ercial N atio n al
B a n k .............................. . ...................................

Page
F i r s t N a t i o n a l B a n k , W a t e r l o o ............. 84
Page
F i r s t N a t i o n a l C o ............................................. 51 / ^ r a t i o n a l C i t y C o . . ................................... . . . 49
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 .......... 23'
N a t i o n a l L i f e A s s o c i a t i o n ......................... 59
F i s h e r C o ................................................................. 31
N a t i o n a l P a r k B a n k ..............................
66
F o r m a n , G e o . M. C o ........................................ 50
N o r t h e r n T r u s t C o .......................................... 62
F o r e m a n N a t i o n a l B a n k s .............. . . ; 33
N o r t h w e s t e r n N a t i o n a l B a n k .......... ..
3
F o s h a y , W . B. C o ............................................. 81
N o rth w e s te r n N a tio n a l L ife I n s u r ­
a n c e C o ...............................................................
2

U

M

56
54
53
35
82
32"
87
2
2

M c C l i n t o c k , O. B. C o .........................
M a s o n C i t y B r i c k & T i l e C o ..........
M e r c h a n t s N a t i o n a l B a n k .............
M etro p o litan N a tio n a l B a n k . . . .
M i d l a n d B a n k , L t d ................................
M i d l a n d G r a i n C o ................................
M i d l a n d M o r t g a g e C o .........................
M i d l a n d N a t i o n a l B a n k ....................
M i t c h e l l , H u t c h i n s & C o ....................
M u t u a l T r u s t L i f e I n s u r a n c e Co.

09
79
78
67
69

U n i o n T r u s t C o ...................................................

19

V
V a l l e y N a t i o n a l B a n k ...................................

2

w
W h e r e t o B u y P a g e ........................................
W h i t e - P h i l l i p s C o ..............................................
W h i t e , P r i c e C o .................................................

60
22
79

68

87
70
40
56

" A C A S H I E R ’S C H E C K ” for $ 3 .0 0 is all th a t is required to secure th e
A th e banking fratern ity an d sum bit same for publication. You do n o t have
m onthly visits of th e N orthw estern Banker for a n entire year.
E ach issue /
\
to agree w ith us, or w ith anyone else. W e le arn things by an interchange
contains from 1 0 8 to 2 0 0 pages of m ighty interesting m a tte r pertaining to V 4 . C , A ^ o f ideas, and people w ith whom we disagree often prove valuable teachers,
banks and banking interests in th e territory covere dby th e magazine.
W e shall be glad to hear from you.
‘‘O U R C O R R E S P O N D E N T S . ”
Every bank in th e northw est is
“ N " P R O T E S T ” has ever been offered to th e statem e n t th a t th e
vited to a place on this list. Send us item s of local interest, tell us . ^ ^ J B É Í Í Í É W Í ^
H coverd by th e N orthw estern B anker is th e money-producing
about your bank and its growth, prospects, etc., also any other
section of th e A m erican con tin en t, rich in hogs, cattle, corn, etc.,
financial news of in terest to bankers in your section. W e are
and d otted w ith thousands of prosperous banks, all doing a good
always glad to head from our friends.
business, an d th e m ajority of them are readers of “ The North“ S IG H T D R A F T S .”
W e always carry a large “ Reserve” of good |
w estern.”
will an d additional service, and will prom ptly honor drafts m ade
“ S U R P L U S A N D U N D I V I D E D P R O F I T S ” increase very rapupon same by any bank.
This departm ent is for your special
idly w ith those banks whose advertisem ents appear regularly in
benefit. I t may be m ade of very great benefit to your bank. Do /
\ th e columns of th is magazine.
F u ll inform ation as to rates
___ A and our special service will be prom ptly furnished on applin o t fail to avail yourself of its privileges.
/
“ A C L E A R IN G H O U S E .”
Our columns are a clearing house
cation. Your business solicited and appreciated. The “ Bankfor all our readers.
Express your view on any topic of in terest to
“b"
er” has been tw enty-nine years in its present field.

*j


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Federal Reserve Bank of St. Louis

May. l'JÜG

'i' li E

N O H T H WB S TBRN

91

BAN KER

Some of the Finest
B a n \ Structures in
the J\[orthwest A r e
“

L

y t l e

B

u

i l t 99

“Master Builders”
E A B S ago there were organized in E n g­
land various groups of workmen who rep­
resented the many different trades and
crafts. Each separate unit was called a Guild,
and to it belonged those who were the most
skilled in their particular capacity, whether it
m ight be printing, decorating, carpentry or
masonry. N ot only were these workmen highly
efficient in their special trade, but they exercised
the most painstaking care in the performance of
their work, and used only the best of materials.
They were M aster Builders.

Y

There are today builders who tak e the same pride in their
work, who put into it the b est o f sk ill and m aterials, and who
also, due to the app lication of the m ost modern m eans and m eth ­
ods, are able to keep the cost at a nom inal figure. L eading the
N orthw est in craftsm an sh ip o f th is high typ e stan ds THE
LY TLE COM PANY, B ank A rch itects and B u ild in g E ngineers.
The L ytle Company is a M aster Builder— a creator o f banking
homes— an originator of perm anent structures for all banking
purposes.
The Lytle Company does not slight m aterial or workmanship.
They build for perm anence. They know the value o f convenient
interior arrangem ent. They know that you w ant in your bank
the propei- in vestm en t value. And above all, th ey realize that
econom y is a real virtu e— and practice it.
I f you are contem p latin g a new ban king home, ask your banker
friends about L ytle Bank Construction. Then talk to the L ytle
Company. They w ill cooperate -with you in every w ay— alw ays.

J. A. RAVEN, P resid en t

The Lytle Company
B

a

n

k

A rchitects

a n il

Building

Sioux City, Iowa

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Federal Reserve Bank of St. Louis

Engineers

j

Specializing in the Underwriting
and Distribution of Investment Securities
In our Bond D epartm ent here in
Chicago, m ore than a hundred peo­
ple are engaged exclu sively in serv­
ing our investm ent customers. «U n
addition, local offices are m aintained
for resident district representatives
in M ilw aukee, M inneapolis, D a v en ­
port, and St. Louis. C In all, tw elve
out-of-town representatives are con­

stantly serving the financial interests
of eigh t central states. «LThrough
our officers w e are in personal touch,
at all times, w ith investm ent affairs
in all parts of th e country, as w ell
as abroad. «L A n d back of all is the
banking institution itself w ith its
great resources, its com plete organi­
zation and long financial experience.

Capital a n d Surplus • Forty-Fire M illion Dollars

Illinois Merchants
Trust Company
a /i consolidation o f the Illinois Trust & Savings Bank,

The ¿¡Merchants Loan & Trust Company and
The Corn Exchange National Bank
LA

SALLE,


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Federal Reserve Bank of St. Louis

J A C K S O N ,

CLARK

A N D

Q U I N C Y

S T R E E T S

•

C H I C A G O