View original document

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

$

MAY
1942

F is h in g B o ats in the P o rt of A lb e rt B ay, B ritis h C olum bia— rep o rte d
to be the T o tem P o le C ap ita l of th e W o rld

BUY

STAMPS


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

W e ’ll Ride on Rubber From Midwestern Farms
Page 15

¡^ < < ^ c

<r“ <£: -< r < <

«gr <Tr <r*

^

^

^

^

^

^

^

G ro u p M eetin g T im e
N um ber One attraction this m onth on the Iowa B anker’s
calendar is the 1942 series of Iowa Group Meetings. Officers
of this bank extend best wishes for the success of these con­
'*( *a ^

ferences.

^

As always, M erchants N ational Bank officers will attend and
take part in all these meetings, at DeW itt, Ames, Bloomfield,
Council Bluffs, Guttenberg, Waverly, Clear Lake and Spencer.

< -< -

A CEDAR RAPIDS BANK

CEDAR

8> S
RA<PID

SERVICING A LL IOWA

^

M ERCH ANTS
NATIONAL BANK

<c

OFFICERS

««é

<r ^

J ames E. H amilton, Chairman
S. E. Coquillette, President
H. N. Boyson, Vice President
R oy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. Selden, Vice President
F red W. S m ith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt, Asst. Cashier
L. W. Broulik, Asst. Cashier
P eter Bailey, Asst. Cashier
R. D. Brown, Asst. Cashier
O. A. K earney, Asst. Cashier
Stanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building Manager

«C

Cedar R ap id s
Member Federal

Iow a

Deposit Insurance Corporation

N orthw estern Banker, published m onthly by the De Puy P u blishin g Company, at 527 7th Street, D es M oines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as second c lass m atter at the D es M oines post office. Copyright, 1942.


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

TH BANKERS PAKT IN A

of us fail to a p p reciate w h at a vital role is the
banker's in th e se difficult tim es. A ctually h e is no le s s e s s e n ­
tial to this nation's w ar effort than the m an at the lathe, the
gun ner in the turret, the pilot at the controls. In fact, under
our present econ om y, it w ou ld b e im p ossib le to w a g e w ar or
carry on the b u sin e ss of p e a c e w ithout his services. » » Banks
not only p la y a n im portant part in fin an cin g the war, but offer
a service w h ich e x p e d ites every major financial transaction.
» » A m erica couldn't g e t a lo n g w ithout the Banker — an d one
of the d e v ic e s w h ich e n a b le s the banker to function so

sm oothly and efficiently is checks. That's w h y th ey h a v e b e ­
com e the m edium of e x ch a n g e for over 90% of today's b u si­
n ess. » » It is a s im portant to protect check s a g a in st fraudulent
m anipu lation — alteration or counterfeiting — a s it is to protect
our currency. Most of the lea d in g ban ks a s w ell a s prom inent
corporations everyw h ere d ep en d upon La M onte S afety P apers
for that protection. The sa fe ty paper "identified b y the w a v y
lines" is a c ce p te d from coast to coast a s the standard of pro­
tection for checks. » » Your lithographer or printer w ill sh ow
y o u sa m p le s of th e se h igh ly in d ivid u al check pap ers.

JetuHfn

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

4

Radio accents personal enjoyment because industry’s engineers
ingeniously perfected a set of portable dimensions. This cozy
instrument—today taken for granted—once presented a baffling
batch of manufacturing problems. The solution came in tubes,
loudspeaker and other high fidelity parts that are tiny enough
to be effective, yet fit a shrunken case. Chemistry contributed a
plastic container combining beauty with complete insulation.
Thus Industrial T eamwork— a hidden force that propels our
production effort— blends the output of many industries to make
a single, useful product. Insurance, the industry that protects
other industries, helps to keep Industrial T eamwork effective.

INSURANCE
Aids
Industria/ IcumwarÂ
T o keep op en in d u s­
tr y ’s lines o f co m m u n ­
i c a t i o n , I n s u r a n c e l e n d s a h e lp i n g
hand. Its in sp e ctio n

a n d p re v en tio n

services te n d to re d u c e h a z a rd a n d th e
th re a t o f financial disaster. By p a y in g
losses th a t u n a v o id a b ly occur, in su r­
ance n e u tra liz es m an y forces th a t are

☆ THE

HOM E ☆

u n frien d ly to in d u stry . Finally, its re ­
serve d ollars are w id e ly in v e ste d in
all in d u stry a n d beco m e b o n e

N E W
FIRE

★


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

AUTOMOBILE

Y O R K
*

MARINE

and

m uscle to th e ra m p a rts o f p ro d u c tio n .
INSURANCE

I
5

I r v i n g
T R U S T
ONE

C O M P A N Y

WALL S T R E E T

* NEW YORK

Statem ent o f Condition, ^JVlarch 31, 1942
ASSETS
Cash on H and, and Due from Federal Reserve Bank and O ther Banks . . .
U. S. G overnm ent S e c u r it i e s .....................................................................................
State, County and M unicipal S e c u r i t i e s .................................................................
O ther S e c u r itie s .............................................................................................................
Stock in Federal Reserve B a n k .................................................................................
Foans and D iscounts .................................................................................................
First M ortgages on Real E s t a t e .................................................................................
H eadquarters B u ild in g .................................................................................................
O ther Real E s t a t e .........................................................................................................
Liability of Custom ers for A c c e p ta n c e s .................................................................
A ccrued Incom e, Accounts Receivable, etc.............................................................

$324,836,925.28
300,317,788.79
5.999.680.00
4,816,488.30
3.088.100.00
2 1 6 , 6 1 0 , 121.11

13,202,428.79
17,196,600.00
1,181,219.53
1,654,780.08
2,856,085.69
$891,760,217.57

LIABILITIES
D e p o s i t s .......................................... . .
Official C h e c k s ........................................
A ccep tan ces.................................................
Less A m ount in P o r t f o l i o ....................
Reserve for Taxes and O ther Expenses
D ividend payable A pril 1, 1942 . . .
O ther L ia b ilitie s........................................
U nearned and D eferred Incom e . . .
Capital S t o c k .............................................
Surplus and U ndivided Profits . . . .

$778,422,718.02
2,095,581.38
$6,497,176.88
4,359,345.79

$780,518,299.40
2,137,831.09
1,618,684.36
750,000.00
311,882.61
2,165,843.13

$50,000,000.00
54,257,676.98

104,257,676.98
$891,760,217.57

U nited States Government Securities are stated at amortized cost. Of these, 155,959,070.66
are pledged to secure deposits of public monies and for other purposes required by law.
M em ber Federal D eposit Insurance Corporation

BOARD
H A RRY E. W A R D
Chairman of the Board
O . L. A LEX A N D ER
President
Pocahontas Fuel Com pany
Incorporated
H E N R Y P. BRISTO L
President
Bristol-M yers Com pany

J O H N F. D EG E N E R , Jr.
C. A . A u ffm o rd t & Co.

OF

DIRECTORS
W ILL IA M N . EN STR O M
President

A D A M K . LUKE
Vice-President and Treasurer
W est V irginia P ulp and Paper
Com pany

W ILL IA M K . D IC K
Chairman, Executive C om m ittee
H IRA M A. M A T H EW S
N a tio n a l Sugar R efining
Vice-President
C om pany

W . G IB SO N CAREY, Jr.
President
T h e Yale & T o w n e M fg . Co.

H E N R Y FLETCHER
Fletcher & B row n

R EID L. CARR
President
C olum bian Carbon Com pany

G EO RG E F. G EN T ES
Vice-President

ED W A R D H . CLARK
President, Cerro de Pasco
Copper Corporation

H A RO LD A. H A T C H
Vice-President
D eering M illiken & Co., Inc.

JACO B L. REISS
President, International
T ailoring Com pany
FLETCHER W . RO CK W ELL
President, N a tional Lead Com pany

W ILL IA M SK IN N E R
M ICHAEL A. M ORRISSEY
President
President
If illiam Skinner & Sons
T he Am erican N ew s C om pany, Inc.
M A T T H E W S. SLOAN
A U G U STU S G . PA IN E
Chairm an-President
Chairman of the Board
M issouri-K ansas-T exas
N e w Y o rk & Pennsylvania Co.
Railroad Com pany

J. W H IT N E Y PE TE R SO N
E xecutive Vice-President
U nited States Tobacco Com pany

FR A N CIS L. W H IT M A R S H
President
Francis H . Leggett & Com pany

Northwestern Banker

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

May 19^2

6

1

CHASE BANKING SERVICE COVERS THE AMERICAS

trade is vital to the
economy and solidarity of our hemis­
phere. War has both emphasized its im­
portance and increased its complexity.
For this reason current information
on economic and exchange conditions
within the Americas is essential to all
those engaged in inter-American com­
merce. Our numerous correspondents
supply us with such information from

I

N T E R -A M E R IC A N

every commercially important city in
Central and South America.
These same correspondents—leading
banks in their com m u n ities—offer
through us special facilities for the
prompt handling of collections.
This information and these facilities
are placed at the disposal of our domestic
correspondents and provide a timely and
valuable service for their own customers.

THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation

Northwestern Banker

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

May 1942

M A Y

/
N o rfm W E S T E R N

19 4 2
FO R T Y -SE V E N T H Y E A R

NUMBER 658

Oldest Financial Journal West of the Mississippi River
CLIFFO RD DE PUY
Publisher
R A L P H W. M O O R H E A D
Associate Publisher
H EN R Y H. H A Y N E S
Editor
J. STUART D A V IS
Associate Editor
527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

•
N EW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth Ave,
Suite 1202
Telephone MUrray Hill 2-0326

M IN N E A P O L IS , O FFICE
Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575

IN THIS ISSUE
Editorials
Across the Desk from the Publisher...........................................................................

8

Feature Articles
Frontispiece ................... ....................................................-.......................................-....
The Trend of Loans in Iowa and Minnesota....... ..............................J. A. Sarazen
How We Operate Our Proof D epartm ent........................................... R- A. Potter
X-Rays from Three Days a t the Chicago “Clinic”............. Ralph W. Moorhead
We’ll Ride on Rubber from Midwest Farm s........................... Leo M. Chistensen
News and Views-........................ ........................................................Clifford D eP uy
Installm ent Loans Under a W ar Economy....................................... V. T. Bonnett
Bank Profits During W artime................................................. Homer H. Peterson
A Cattle-Feeding Contract—Legal Departm ent........................... ............................
With Me the Answer Is—“Make Him Feel Sorry”----- ------George R. Wilmot

H
12
13
14
15
16
18
20
22
25

Insurance
Why Farm ers Need Hail Insurance............................................................. ................ 29

CONVENTION CALENDAR
M id-C ontinent C onference, Bank A udi­
tors— K ansas C ity, M ay 21-23
A m erican In stitu te of B anking— N ew
O rleans, June 8-12.
Financial A dvertisers A sso cia tio n —
C hicago, O c to b er 26-28, E d g e w a te r
B each H o te l.
N a tio n a l C onference on W a rtim e F i­
n a n ce — B o o k -C ad illac
H o te l,
D e­
tro it, S e p te m b e r 27-30.

STATE MEETINGS
M issouri Annual Convention— Joplin,
M ay 11-13
Indiana Annual Convention— Indian­
apolis, M ay 13-14
Illin o is Annual Convention— St. L ouis,
M ay 20-22.
South D akota Annual Convention—
Cataract H otel, Sioux F a lls, June
3-5.
W iscon sin Annual Convention—'Mil­
w aukee, June 16-18
M ontana Annual Convention— Y ello w ­
stone N ation al Park, June 18-20
North Dakota Annual Convention—
D ickinson, June 12-13
M innesota Annual Convention— D ulu th,
July 8-10, H otel D uluth
Io w a J u n io r B an k e rs— D es M oines,
S ep tem b er 6-9.
Iowa Annual C onvention— D es M oines,
Septem ber 6-9


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

Bonds and Investments
Short Term Governments for Banks.

.James H. Clarke 31

State Banking News
Minnesota News ........
37
Twin City News ................................................... -...........James M. Sutherland 39
South Dakota News ............
43
North Dakota News ........................................................................................................ 45
.......................
47
Nebraska News .........................................................
.Henry H. Haynes 48
1942 Nebraska Group Meetings......................
................................. 49
At the Nebraska Group Meetings—Pictures
................................ 51
Omaha Clearings ..............................................
................................. 53
Lincoln Locals ............................. ............-.........
................................. 55
Iowa News ....... ..........................................................
................................. 64
Iowa News from Here and There...................
..............................68-76
Iowa Group Meeting Section...........................
.............
78
Glimpses of Old Mexico................. ..................

The Directors' Room
A Few Short Stories to Make You Laugh............

82

Across the Desk
From the Publisher

Banks Qualify to Sell
Out of the 14,708
W ar Savinqs Bonds banks in the United

States, 14,228 of them ,
or 96.7 per cent, have qualified to sell W a r Sav­
ings Bonds.
In the N orthwestern B anker territo ry the
percentage of banks w hich have qualified, by
states, is as follows :

Eligible Qualified
State
Banks
Banks
Iowa ............................. 647
645
Minnesota .................. 674
673
Montana ...................... I l l
111
408
Nebraska .................... 416
North Dakota ............ 159
159
South Dakota.............. 162
162

Per Cent
Qualified
99.7
99.9
100.0
98.1
100.0
100.0

This fine record of qualification by the banks
in the U nited S tates m ust now be backed up with

the actual sale of war bonds.
However, in a recent letter to the N orthwest­
B anker from M ortim er Goodwin, executive
vice president of the Pella National Bank, he
does not believe th at enough of the qualified banks
are really getting behind the sale of W ar Bonds
as they should, and says:
ern

‘‘It seems to me that too many bankers are not
getting behind the sale of War Bonds. Every
time we buy or help sell a bond we are taking
out much needed insurance on our homes and
banks—and the American way of life—against
this world tornado.
“ Is there something you could say in the
Northwestern Banker tc encourage bankers to
push the sale of the bonds? We have put our
best efforts behind the drive. Our directors and
staff have been actively engaged in soliciting
for bonds. We used many ads just selling

Northwestern Banker

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

May 19^2

war bonds. And besides this we and the Rolscreen Company distributed 988 stamp albums
among the school children in our territory, town
and country, and put a free 10c stamp in each.
W e’ve had dozens of letters from the pleased
children. We also designed a sticker for the
window of the homes where war stamps or
bonds are being purchased. And, in addition, we
have the Treasury’s big poster in our front win­
dow with an electric spotlight on it at night.
“ As a result of our activity we sold between
January 1 and April 16 a total maturity value
of all series equal to 10.6 per cent of our de­
posits as of Janary 1, 1942.
“ With the extra help we have needed to write
up applications and bonds, this push to sell war
bonds has cost us money, but here is a time when
we must give until it hurts.”
W e believe th a t bankers will “ give u n til it
h u r ts ” and also th a t they will show a fine record
of W ar Bond sales when this period of our w ar
history is finally w ritten.

Banks Should Keep
B a n k s throughout
Fishting Government the conntry should
Competition
contln"e to %llt gov-

1
e r n m e n t com petition
every place w here local banks can effectively and
efficiently tak e care of the credit requirem ents of
th e ir communities.
In the N ebraska B ankers Association th ere is
a “ Com mittee on Com peting A gencies,” of which
E. W. R ossiter is chairm an, and, in a recent an ­
nouncem ent to the banks of Nebraska:, he said :

“Mr. Banker, suppose Uncle Sam would set up
a lending institution across the street from your
bank. The capital is donated—no interest to pay.

9

It is exempt from taxes—no taxes to pay. ‘Is that
coming?’ yon ask. ‘Hell, i t ’s here.’
“ Are Production Credit Association loans, based
on free capital and tax exemption fair to your
hank? Is it ‘honest’ to compare the PC A rate of
interest and the hank rate under these conditions ?
“ W H AT ABOUT YOUR CUSTOMERS, Mr.
Banker? Do your farmers and your merchants
realize what is being done to your institution?
“ Do they understand they are paying the taxes
and buying the bonds which is financing the gov­
ernment agencies to undermine their own home
bank?”
O riginally it was the idea th a t the P roduction
C redit A ssociation should be set up to supplement
and not to supplant the country banks, b u t at
p resen t they are in d irect com petition w ith the
banks, and this should not be the case.
B ankers everyw here should be using th eir influ­
ence w ith Congressm en and Senators to keep
fighting governm ent com petition.

How Banks Can
Avoid Government
x-s . .. .
C ritic ism

B a n k e r s th ro u g h o u t

the nation are doing

everything they can to

,help
, •m athe w a r effort.
«. +

The success of th a t effort should be appreciated
by the public and by the governm ent.
I f th a t is done, fu rth e r encroachm ent upon
b an king by the com peting governm ent agencies
should be elim inated.
The N orthwestern B anker asked D. P orter
D unlap, vice p resident of the B ank of A m erica
of San Francisco w h at he fe lt was the g reatest
problem facing A m erican banking today and he
said, “ B ankers are intensely tru e and patrio tic
A m ericans, and as such A m erican banking will
cooperate in every w ay w ith our w ar effort. The
problem is to speed and m ake effective th a t co­
operation in such a com plete m anner th a t there
will never be criticism of them . If this is not
done, th en th ey will become the ta rg e t of a ttac k
and th ere w ill be fu rth e r encroachm ent on the
field of priv ate enterprise.
“ B anking plays a definite p a rt in the w ar econ­
omy and by facilitating, thro u g h credits and a
m yriad of other means, it plays a p a rt of which
it m ay feel u n asham ed.”
W e too feel th a t bankers of A m erica can “ Feel
u n ash a m e d ” of the p a rt they are now playing and
of the p a r t they w ill play in bringing to a suc­
cessful conclusion the W orld W a r in w hich we
are now engaged.
W e also feel th a t the success which A m erican
b ankers are having in carry in g on the w ar is fu r­
th e r proof th a t priv ate initiative and p riv ate en-

terp rise in a dem ocracy should be fostered and not
stifled or com peted w ith by governm ent agencies.

Are W e Going The constant question which
"Ali Out" to everyone is asking is, “ Are
we going ‘all o u t’ to win the
Win the W ar? w a r? ”
Is business doing all th a t it can?
Is labor doing all th a t it should to win the w ar?
W hat about farmers—are they doing th eir full
am ount in this crisis?
A recent Gallup poll gave the figures on these
question as fo llo w s:

“ Do you think business and industry are going
all-out to win the war?”
Yes .............................................................58%
No ................................................................33
U ndecided ..... ......... ................................. 9

“ Do you think labor unions are going all-out
to win the war?”
Yes ......................................................... ....37%
No ................................................................ 50
U ndecided ....................................

Yes ............................................
.69%
No ................................................ .............. 12
U ndecided ................................................ 19
This is a t least how the general public feels,
and, as we see it, it is up to lab o r leaders to
change th e ir attitu d e and change the opinion of
the public, if they do not expect to have adverse
legislation passed a t this session of Congress.

W e Must Broaden
In try in g to w ork out
Our Tax Base
a new tax biU for the
U nited S tates our mem ­
bers of Congress should approach the problem
from the standpoint th a t we m ust broaden our
tax base if our ta x burden is to be equitably dis­
trib u ted .

Estimated income figures for 1942 are as fol­
lows:
National Income Estimated. $103,000,000,000
Persons Receiving Less Than
$2,500 will get........... ..... .
51,000,000,000
The average individual receiving less th an
$2,500 pays practically no federal income tax,
and therefore the ta x base should be broadened.
On the other hand, a fam ily w ith an income of
$5,000 a y ear in 1939 accounted for about oneten th of the aggregate income, but paid ap p ro x i­
m ately nine-tenths of the federal income tax.

Northwestern Banker

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

13

“ Do you think farmers are going all-out to win
the war?”

May 1912

10

4 7

Y e a r s

of Experienced and Depend­
able Service to Correspondent
Banks!
Off,Lcerô
Wm. J. Goodwin, Chairman, Board of Directors
E. F. B uckley, President
F rank R. Warden, Vice-President
A. T. D onhowe, Vice-President
Lehman P lummer, Vice-President
F red H. Quiner, Vice-President
E mmett E. J ohns , Vice-President
J. R. Capps, Cashier
I rwin A bram, Assistant Cashier
G. W. B artmess, J r., Assistant Cashier
J. E. Quiner, Assistant Cashier
H. C. Winder, Assistant Cashier
"D. R. W ithington, Assistant Cashier
*1. L. W right, Trust Officer
Geo. L. N issly, Assistant Trust Officer
N oel T. R obinson, Assistant Trust Officer
*On leave of absence—serving with the United States Armed Forces.

d o w e l ’d

^ J ^ r iu n d (if

JvA ctn L

CENTRAL NATIONAL BANK
AND TR U ST COMPANY
^ ¿ L )e 6
member

federal

deposit

i ns ur anc e

c o rp o r a t i on

Northwestern Banker

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

May 1942

I f y o u w o u ld li k e e x tr a c o p ie s o f th is p ic tu r e w e w i l l b e g la d to s e n d th e m to y o u w ith o u r c o m p lim e n ts .— T h e N o r th w e s te r n B a n k e r .


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

12

The Trend of

LùÛtiS in

Iowa

and Minnesota
Northwestern Banker Survey Reveals That Loan Volume Is Being
Maintained on a Satisfactory Basis
N a recen t v isit to a n u m b er of
b anks in M innesota and Iowa,
I m ade in q u iry reg ard in g th e
tre n d of loan volum e in th ese in stitu ­
tions. A pparently, from th e in fo rm a­
tion I gathered, th e re has been no
drastic am ount of liquidation. The
m ajo rity of b anks visited gave figures
indicating th a t th e ir loan volum e is
being m ain tain ed quite satisfactorily.
N atu rally those w ith a considerable
volum e of sm all loans are beginning
to feel th e effect of liquidation, since
of course loans of th is n a tu re are not
being replaced at th e p resen t tim e.
M innesota b an k ers rep o rted as fol­
lows:

O

Minnesota
F a rib a u lt State B ank & T ru s t Com­
pany, F arib au lt:
Loan volum e on
A pril 4, 1941, am ounted to $419,000
and on A pril 4, 1942, am o u n ted to
$430,500. D ecem ber 31, 1941, lists loan
volum e a t $452,000. R ay M eyer, cash­
ier, said th e b an k h ad a good year
last y ear and expected a good y ear
th is year. His b an k has been p u b lish ­
ing a series of ads in th e local p aper
appealing to farm ers for loans. De­
posits a t th is b an k increased $112,000
d urin g th e y e a r and on A pril 4th stood
a t $844,400.
A t th e F a irm o n t N ational Bank,
F airm o n t, J. F. H aeckel, president,
told us th a t loan volum e stood at
about th e sam e figure as a y e a r ago
and about th e sam e as th e first of the
year. The tre n d of deposits has been
up w ard and footings reached th e two
m illion m a rk th e la tte r p a rt of M arch.
In terv iew in g C. F. H olden, cashier,
M artin C ounty N ational B ank, F a ir­
m ont, we w ere inform ed th a t loan
volum e on M arch 31, 1941, am ounted
to $665,000, w hich is about $75,000 less
th a n a y e a r ago. Loans on D ecem ber
31, 1941, stood a t $712,681.
H. M. Johnson, cashier, F irs t N a­
tional Bank, F airm o n t, tells us th a t
w hile loan volum e is off since th e first
of th e year, it still is a little h ig h er
th a n a y e a r ago. H e is encouraging
farm ers to p rep are for th e lean y ears
w hich are su re to come.
On th e day of o u r v isit to th e Farm Northwestern Banker

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

May 1942

By J . A . Sarazen
Associa te Edito r
The Northwestern Banker

ers N ational Bank, W aseca, loan vol­
um e am ounted to $364,000 w hile on
th e sam e date a y ear ago, th e volum e
am ounted to $381,850. The h ig h est
figure w as reached last October w hen
volum e stood a t $400,600.
The recen t b ank call found the F irs t
N ational Bank, W aseca, w ith loans and
discounts am ounting to $1,230,000. On
th e sam e date a y ear ago, loan volum e
am ounted to $1,238,000.
H. V. Bull, president, N ational Citi­
zens B ank, M ankato, rep o rts loan vol­
um e about 10 per cent h ig h er th a n a
y e a r ago. Loans and discounts am ount
to $1,820,000 w ith total footings of well
over $5,000,000.
J. G. B rauch, president, F irs t N a­
tional Bank, M ankato, rep o rts th a t
loan volum e in his b ank is holding
about even w ith a year ago. Five of
th e boys here have answ ered th e call
to th e colors.
W. T. B lackm arr, cashier, W ayzata
S tate Bank, W ayzata, says loan vol­
um e has been v ery good, how ever, a
decrease in volum e is expected since
his b an k has been carrying a large
am o u n t of FH A and autom obile paper.
A t th e Security State Bank, W aterville, B. W. R adem acher, cashier, tells
us th e h ighest point in his loan vol­
um e d u ring th e p ast y ear w as $126,000.
An A pril 1, 1941, volum e am ounted to
$111,800 and A pril 1, 1942, volum e
am ounted to $95,900.
L oans are holding about even a t the
S tate B ank of Delano. On A pril 8,
1941, loan volum e am ounted to $250,577 and on A pril 8, 1942, loan volum e
am ounted to $252,811.
P. F. Lindholm , cashier, State B ank
of Maple Plain, says business is good
and th a t his b ank has not suffered any
loss of volum e in any type of loan so
far.
Loan volum e a t th e F arm ers State

Bank, Hope, is holding up v ery well,
according to A. M. Ellingson, cash­
ier. D eposits are $385,000 and loans
am ount to m ore th a n $212,000.
E. J. Crowley, cashier, M erchants
State Bank, Lew isville, rep o rts loan
volum e about even w ith a y ear ago
and a little hig h er th a n th e first of th e
year. D eposits are also holding even
and th ere is v ery little activ ity in real
estate in th is territo ry .
In q u iry am ong Iow a ban k ers re ­
vealed th e following:

-JÍ

Iowa
Peoples Savings B ank, W ellsburg:
L oan volum e on A pril 22, 1942,
am ounted to $277,000 and a y ear ago
on th e sam e date th e figure w as $283,000. Of th is am ount, G. H. Geerdes,
cashier, says $122,000 is in real estate
loans, w hich is about th e sam e as a
y ear ago. Some of these loans w ere
paid off th e first of M arch and some
new ones made. Cattle feeder volum e
has been holding up v ery well, w ith
some choice loans being completed.
At th e F a rm e rs S tate Bank, S tan­
hope, loan volum e on J a n u a ry 1,
am ounted to $205,000 and on A pril 20,
am ounted
to
$210,000.
Deposits
am ount to $400,000 w hich is about th e
sam e as th e first of th e year.
A ckley State Bank, Ackley: Loans
A pril 23, 1941, $687,000; A pril 23, 1942,
$575,000, a definite dow nw ard trend.
H. S. Lekw a, vice president, said
about $15,000 in com m ercial paper h ad
been liquidated. T here has been a
considerable am o u n t of liquidation of
real estate loans and feeder loans.
T here is quite a lot of feeding done in
th is te rrito ry and farm ers have not
been buying replacem ent cattle a t
these high prices. V ery little real es­
tate is m oving here. Only one farm in
th e te rrito ry is for sale and th is a 425
acre farm w hich is ow ned by an in ­
surance com pany, and th e asking price
is $125 p er acre.
L oans are off about $50,000 over a
y ear ago at th e Citizens S tate Bank,
Iow a Falls, according to E. H. K lisart,
cashier.
(T u rn to page 65, please)

*

T

V

13

How W e Operate O u r

Proof departm ent
The Problem of Speed, A ccuracy and Ease of Handling
Has Been Solved
T th e p re se n t tim e we are using
an In te rn a tio n a l P roof M achine
in our bank. D uring th e p ast
th re e y ears w e have trie d several dif­
fere n t m ethods in o p eratin g th e proof
d ep artm en t, try in g to achieve speed,
accuracy, and ease of h an d lin g th e
item s.
The first m ethod w hich we used
w as th e b atch system . In our case
th is sy stem seem ed slow and fa r from
being accurate. The person proving
a b atch of deposits had to so rt th e
item s in th e ir respective groups, check
th em for endorsem ent, and th e n list
th em on a large b atch sheet. If th e
debits and credits did n o t agree, th e
op erato r h ad to check h e r ru n n in g
for th e error. In case she failed to
find th e e rro r in h e r ow n w ork, she
th e n had to check th e deposits back
again st th e debits to determ in e
w h e th e r or n o t th e depositor had m ade
an e rro r in listing som e item on his
deposit ticket. Again, if th is failed
to find th e erro r, each deposit tick et
had to be added to find an y e rro r in
addition. Som etim es th e bookkeepers
w ould have to check for an h o u r or
m ore to find th e e rro r in th e batch.

A

Second Method
T he second m ethod w hich w e trie d
w as th e N ational P roof M achine. W e
found, w ith th is m achine, we h ad no
tro u b le in locating erro rs th a t m ight
be in th e deposits. W hen an erro r
occurred in a deposit, th e m achine
w ould lock, and u n til th e e rro r w as
corrected th e m achine w ould n o t o per­
ate. The m ain fau lts we found w ith
th is m achine w ere, th a t it w as ra th e r
slow in operation, h a rd to use, and
tirin g to th e operator. Also, th e m a­
chine only carried seven tap es for
listing on individual pockets, w hich
req u ired th e ru n n in g of a n u m b er of
o th er tapes on our tra n s it letters.
This, of course, took m ore of th e v alu ­
able tim e w hich we are all try in g to
save.
W e th e n in stalled an In te rn a tio n a l
Proof M achine w ith w hich w e are
v ery w ell pleased. W hile o p eratin g

By R. A . Potter
C ash ie r
United Home Bank & Trust Company
Mason C it y, Iowa

R. A. P O T T E R

it, th e operator is accom plishing four
things: Sorting, listing, proving, and
endorsing.

Time-Saver
Our m achine is equipped w ith 12
tapes. The am ounts on th e individual
co m partm ent tapes are p rin ted au to ­
m atically at th e sam e tim e th e y are
listed on th e m aster tape. A t th e
p re sen t tim e we are using carbon tapes
on our tra n s it letters, sending one
copy w ith th e letter, and keeping one
copy for our files. Since w e are using
a recordak m achine in our tra n s it
d ep artm ent, we have only to ru n th e
item s th ro u g h th a t m achine, attach
our proof m achine tape to th e reg u lar
tra n s it letterhead, and it is ready
for th e mail.
T he checks are listed in th e sam e

sequence as on th e deposit slip. Op­
posite each am ount is th e indicating
n u m ber of th e sort, or b an k to w hich
it is being sent. If an item is to be
traced, th e receiving b an k usually re ­
ports a check of a given am ount m iss­
ing. W e will, in th a t case, get th e re ­
cordak film for th a t day and check it
back to find who deposited th e item .
A t th e sam e tim e th e checks pass
into th e m achine, th ey can also be
endorsed. The plate is m ade to cover
both clearing and tra n s it checks. This
featu re alone saves a considerable
am ount of tim e in each d ay’s work.
Our m achine is fu rn ish ed w ith 12
sortin g pockets. In case w e feel th e
need of a larg er breakdow n for any
d ep artm ent, th e m achine can be ad­
ju sted to give us m ore pockets for
the d istrib u tio n of item s. A t th e p res­
en t tim e we are sortin g to bookkeep­
ers, clearing house, five sets of tra n s it
letters, cash item s, cash tickets, sav­
ings w ithdraw als, general ledger deb­
its, and m oney orders.
T his m achine is arran g ed so th e
operator can ru n it w ith th e m inim um
of effort, since th e selecting, adding
and control keys are placed to give
h er speed and accuracy w ith th e least
am ount of lost m otion. I t has a tenkey keyboard w hich is operated by
th e touch system , w hich w ill allow
th e o p erator m ore concentration on
h er sorting operations.
W hile operating th e m achine, if th e
check failed to feed w ith th e am ount,
th e operator w ill h ear a buzzer signal.
If th e check failed to go into th e
pocket, or if th e check slips into th e
pocket crooked, she w ill get th e sam e
signal. W henever a pocket gets full,
th e m achine w ill lock and allow no
m ore item s to go into th a t pocket,
also, a green light w ill come on d irect­
ly in fro n t of th e operator. By releas­
ing a sm all b u tto n and em ptying th e
pocket, th e m achine is again ready
for operation. W hen one of th e tapes
in th e back of th e m achine ru n s low,
th e op erato r w ill receive a red light
as signal.
(T u rn to page 29, please)
Northwestern Banker


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

May 19^2

14

X - R A Y S from T H R E E D A Y S
AT

THE

H E “C redit Clinic” held last m o n th
in Chicago w as w ell a tten d ed an d
proved hig h ly successful.
R ep resen tativ e b an k ers from 14 middlew estern states enjoyed th e p ro ­
gram , p a rtic u la rly th e sm aller sessions
w hich w ere held d u rin g th e three-day
conference. M uch cred it m u st go to
th e com m ittee in charge w hich in ­
cluded F ran k L. K ing, chairm an,
com ptroller of th e C ontinental Illinois
N ational B ank and T ru s t Com pany in
Chicago, D unlap C. Clark, p resident,
th e A m erican N ational B ank of K ala­
mazoo, M ichigan, and Iow a’s wellknow n A. B. A. v eteran , F ran k C.
W elch, president, th e Peoples Savings
Bank, Cedar R apids, Iowa.

T

Am ong th e w ell-know n N ebraska
b an k ers a t th e Chicago m eeting w as
E lm er Placek, p resid en t of th e F irs t
N ational B ank of W ahoo, w ho w as
g ettin g in trim for th e N ebraska G roup
M eetings to be held th e follow ing
week.
The them e “Food for F reed o m ” w as
th e m otif for m any in te re stin g talk s
at th e Chicago m eeting. C hairm an
F rank E. K ing, how ever, coined a new
phrase w hen he pointed out th a t th e
topic should really be “Food for V ic­
tory.”
E. M. W arner, energetic p resid en t of
th e City N ational B ank of Clinton,
Iowa, rep re se n te d th is th riv in g riv e r
city a t th e Chicago m eeting.
Mr. W a rn e r is m ost en th u siastic, as
he has ev ery reaso n to be, over th e
steady g ro w th of Clinton business. He
w as bu sy telling friends ab o u t th e new
1,000-bed g o v ern m en t hospital w hich
has been aw arded to Clinton. T his is
a $5,000,000 project, and is looked upon
as som ething w hich w ill benefit Clin­
ton trem endously, not only d u rin g th e
w ar, b u t as a p e rm a n e n t proposition.
I t w ill doubtless add a huge an d p e rm ­
an en t pay roll. In addition, it w as r e ­
cen tly announced th a t th e P illsb u ry
Com pany has ta k e n over th e Cham ­
pion M illing and G rain Com pany a t
Clinton and w ill g reatly enlarge th is
plant. Com bined w ith th e D uP ont cel­
lophane p la n t and o th er Clinton in d u s­
tries, th e y are p u ttin g Clinton on th e
m ap in a big w ay, and all of th em have
th e valuable featu re of perm anence.

Northwestern Banker

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

May 19^2

CH ICA G O

" C l in ic "

By Ralph Moorhead
Asso cia te Publisher
Northwestern Banker

One of th e ou tstan d in g talk s w as by
A. L. M. W iggin s of H artsville, South

Carolina, second vice presid en t of th e
A. B. A. In addition to th e w ell-know n
gift of so u th ern oratory, Mr. W iggins
h ad some splendid th o u g h t in his ad­
dress on w h at b an k ers should do in
w ar tim e. He said, “It is no longer
a question of m atching m en and m ate­
rial w ith th a t of our adversaries. It
is now a question of delivering our
m axim um com bat pow er on every
fro n t in overw helm ing p roportions.”
A n Iow a b an k er w ho seldom m isses
an o u tstanding convention is W arren
Garst, cashier, th e H om e State B ank
of Jefferson, Iowa. Mr. G arst attended
every session of th e Chicago m eeting.
R ep resenting th e M ercantile Com­
m erce B ank and T ru st Com pany of
St. Louis w ere tw o ban k ers u n usually
w ell know n in A. B. A. circles, W ood
N etlierland, and E eo D. K elly, vicepresidents, w ho seldom m iss an A. B.
A. function of consequence.
Dr. P au l F. Cadman, econom ist for
th e A. B. A. does n ot believe th a t “the
natio n al tre a su ry is IN E X H A U ST I­
B L E .”
Dr. Cadm an assailed th e proponents
of new credit theories based on th e
assum ption th a t deficit spending by
g o v ernm ent and pyram iding of the
n atio nal debt is u n im p o rta n t because
“we owe it to ourselves.” He said
th ese theories are w orking for social­
ization of th e b anking system and
estab lishm ent of a go v ern m en t m onop­
oly of credit.
A decade of spending and a twofro n t w ar th re a te n to b u rd en th e n a­
tion w ith a public debt of from 150
to 250 billion dollars, Dr. Cadm an said.
H e w arn ed th a t a long period of heavy
tax atio n lies ahead if postw ar recon­
stru ctio n is to be u n d e rta k e n by gov­
e rn m en t financing.

V isiting his m any friends from Iow a
as w ell as o th er states, w as E. A. A n­

drew , now of Chicago, an d form erly

Iow a su p erin ten d en t of banking. L.
A. appeared a t th e convention w ell
tan n ed from a recen t vacation in
Florida. He w as accom panied a t th e
Chicago m eeting by his son, L u cius,
and W . W . S um m erw ill, vice president,
th e Iow a State B ank and T ru st Com­
pany of Iow a City.
Sioux City b an k ers w ho atten d ed
th e Chicago m eeting, including Carl E.
F redricksen, president, th e L ivestock
N ational B ank and A. G. Sam, p resi­
dent, th e F irs t N ational B ank of Sioux
City, are en th u siastic about th e new
bom bing field w hich is being estab ­
lished a t Sioux City. The land for th is
p roject has already been acquired and
construction w ork is beginning. The
field w ill be a practice field for dum m y
bom bing by th e big bom bers. I t w ill
have eight ru n w ays, each a block
w ide and 7,000 feet long, for take-offs
and landing. It is estim ated th a t
about 5,000 enlisted m en and officers
w ill be q u artered in th e Sioux City
area.
A form er Iow a banker, H. A. Laird,
now w ith th e A m erican N ational B ank
at Pekin, Illinois, atten d ed th e Chicago
m eeting and g reeted m any old Iow a
friends. Mr. L aird w as in Des Moines
several y ears ago w ith th e R. F. C.
and he also helped organize th e Citi­
zens N ational B ank of Boone, Iowa.
H. N. T hom son, vice president, th e
F a rm e rs and M erchants S tate B ank of
Presho, South Dakota, talk ed on th e
“Food for F reedom P ro g ram ,” stre ss­
ing th e loan field for co untry banks has
come from g overnm en t credit agen­
cies. He blam ed th e co u n try ban k s
for m uch of th is in allow ing th e
o p p o rtu n ity by leaving ru ra l credit
w an ts unfilled.

A t Chicago d u rin g th e “Clinic” w as
W ard M eFadden, form er Iow a re p re ­

sen tativ e for Scarborough and Com­
pany, Chicago In su ran ce Counselors.
W ard w as in th e u n iform of a L ieu­
te n a n t com m ander in th e N avy and
w as enjoying a few days furlough.
A Des M oines in surance m an w ho
atten d ed th e Chicago Clinic w as
(T u rn to page 44, please)

15

W e ’ll Ride O n

Rubber From

Midwestern Farms
Ten Per Cent of Our Corn Crop Will Make 600,000 Tons of
Synthetic Rubber Per Year
IN D IN G an ad eq u ate supply of ru b ­
b er is one of th e to u g h est problem s
of th e w ar. N ot only do we use a
lot of it—norm ally 600,000 tons of new
ru b b e r p e r y e a r—b u t we have geared
so m uch of o u r p re se n t econom y to it,
th a t it h as becom e an absolute essen­
tial. W h a t w ould A m erica be w ith o u t
tires? T h ere are m an y w ho fear we
m ay le a rn th a t before long, because 90
p e r cen t of o u r new ru b b e r has come
from th e N eth erlan d s E a st Indies, and
w h a t w ith th e D utch d estroying th e
trees and th e Jap s ta k in g over m ost of
th e p roduction area, w e are n o t gettin g
an y ru b b e r th e re an y m ore and p ro b ­
ably cannot depend upon th is source
for te n y ears or so. N or is th e re any
place else in th e w orld th a t can supply
us an y th in g like o u r to tal req u irem en t
a t an earlier date. W e cannot w ait
th a t long for tires.

F

By Leo M. Christensen
University of Nebraska
Chem urgy Project
Lincoln

A n address before firm Group
M eetings of the Nebraska Bankers
Association

Synthetic Rubber
I t w ould be a gloom y picture, in ­
deed, w ere it not for sy n th etic rub b er.
T rue, we can get a little ru b b e r from
som e n ativ e crops, like guayule, m ilk ­
weed, goldenrod and rab b itb ru sh . Only
th e la tte r exists in an y large am ount.
If we could collect it from th e plains
an d deserts of our w e ste rn states, we
w ould have a to tal of 300,000 to n s of
ru b b er, b u t collection is a difficult and
costly job. M ilkw eed and goldenrod
m ay be in te re stitn g in th is em ergency
b u t b o th need a lot of re search before
th e y can be used. G uayule ru b b e r is
th e b est of these prospects and 75,000
acres of it are being p lan ted now —all
th e good seed we have. It w ill yield
as m uch ru b b e r p er acre p er y e a r as
have th e b est of th e E a st Indies ru b ­
b e r plan tatio n s, an d w ill do th is on th e
sem i-arid lands of our so u th w estern
states. It seem s likely guayule m ay
be h ere to stay, b u t it probably can
n ev er supply m ore th a n abo u t oneth ird of o u r to tal req u irem en t.

Permanent Supply
T h u s we are looking to th e sy n ­
th etics for our first large production
an d for th e m ajo r p a rt of o u r p erm a­
n e n t supply as well. S ynthetic ru b b er

LEO

M.

C H R IS T E N S E N

w as first m ade by an em inent E n glish
chem ist, P erkin, in 1912. He found
th a t he could m ake ru b b er from b u ta ­
diene by polym erizing it w ith m etallic
sodium; hence, th e nam e B una—b u ta ­
diene plus n atriu m . F in d in g a source
of b utadiene w as th e obstacle and fin­
ally he decided upon b u ty l alcohol and
acetone obtained from th e ferm en ta­
tion of potatoes by a process F ernbach
of th e P asteu r In stitu te had developed.
In 1915, a R ussian chem ist, Ostromisslenski, found a w ay to m ake butadiene
from ethyl alcohol m ade from any of
a n u m ber of farm crops. T w enty y ears
la te r th is research w as p u t to com m er­
cial use, first in Russia, th e n in G er­

m any and Poland. In th e m eantim e,
chem ists found w ays of im proving th is
ru b b er by inclusions of some other
com pounds, p articu larly acrylonitrile
(B una N) or stry en e (B una S). In all
cases a g ricu ltu ral eth y l alcohol w as
th e source of butadiene and in 1939,
R ussia m ade 100,000 tons of th is type
of ru b b er and G erm any produced m ore
th a n that.
F ive y ears after th e beginning of the
E u ro p ean program we set out to m ake
sy n th etic rubber, b u t our m an u factu r­
ers trie d to use petroleum as th e base,
gettin g th e butadiene from butane.
A fter m onths of debate it has now
been learned th a t th ere is n ot nearly
enough bu tan e to satisfy our needs and
a sh o rt tim e ago th e W ar P roduction
Board announced it w ould sponsor a
program to produce 200,000 tons of syn­
thetic, largely from eth y l alcohol.
W h at seem s still a b e tte r m ethod is
now being in tensively studied by sev­
eral private, state, and federal labora­
tories. T his one involves th e p re p a ra ­
tion from farm crops of butylene glycol
w hich can th e n be d ehydrated to b u ta ­
diene. T he yield of th e diene is 10 to
12 pounds p er bushel of corn, as com­
p ared to five to six w h en th e alcohol
m ethod is used, b u t th e m ethod needs
fu rth e r research before it can be com ­
m ercially applied. W hen it is ready to
go the glycol can be m ade in th e sam e
factory th a t produced alcohol; hence,
th e g reat in te re st in building alcohol
p lants now to supply im m ediate needs
and to be ready to m ake th e glycol
later.

From Midwestern Grain
To m ake 600,000 tons of synthetic
ru b b er p er y e a r by th e alcohol ro u te
w ill req u ire th e conversion of five or
six m illion tons of g rain per year,
equivalent to about 10 p er cent of a
norm al corn crop. If th e glycol m ethod
can be developed to do as w ell in com­
m ercial operations as it has done in th e
laboratory, only half as m uch g rain
w ill be needed for th is job. T hus, it
seem s desirable to s ta rt out w ith som e­
th in g like a 200,000 or 300,000 ton pro(T u rn to page 42, please)
Northwestern Banker


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

May 19^2

16

N e w s a n d V ie w s
O F THE B A N K IN G W O R L D
By Clifford De Puy

R aym ond L. R edheffer, p resid en t of
th e M erchandise N ational B ank of Chi­
cago, has o riginated a new b anking
plan w hereby a custom er can w rite his
ow n check w h en ev er in th e need of a
loan. W h at th e plan really does is
m ake a profit out of overdrafts.
As explained by Mr. R edheffer, th e
plan is as follows:
“You can s ta rt a Check-Credit Ac­
count w ith any am o u n t—as little as $5
$5 w ill do. Keep any am o u n t you like
on deposit. W rite as m any checks as
you require. T otal cost is only 5c per
check or item of deposit.
“T his optional featu re allow s you to
borro w up to $25 a t an y tim e, m erely
by w ritin g a check. F o r exam ple: Sup­
pose you need $25 m ore th a n you have
on deposit. Sim ply w rite a check.
W hen th e check is p resen ted for pay­
m ent, y o u r account is autom atically
credited w ith $25. N ext pay day, you
pay $25 plus $1 service fee. W henever
you use th e A utom atic Credit privilege,
you pay th e sam e service charge. No
in te re st is charged for th e tim e you
use th e m oney.”

T h a t bank d ep osits are the safest in ­
v estm en t in th e w orld w as pointed out
recen tly by one financial w riter, w ho
said:
“This is an u n certain w orld, hut an
A m erican dollar, in an A m erican sa v­
ings account, is about the least uncer­

tain thing in it. T hat is the reason
m o st of the gold in the w orld has been
brought here and exchanged fo r our
dollars.”
Since the U nited States has entered
the, w ar, over 80,000 in v en tio n s have
been subm itted to th e N ational In v e n t­
ors Council in W ashington, and over
3,000 of these w ere considered good
enough to give them fu rth e r considera­
tion. All new ideas are welcome, and
even if only one or tw o out of the
m any subm itted are p u t to practical
use, it m ay save thousands of A m eri­
can lives and help to end th e w ar th a t
m uch m ore quickly.
Guy W . Cooke, a ssistan t cashier of
th e F irs t N ational B ank of Chicago,
has sen t us a v ery in terestin g booklet,
“L atin A m erica,” w hich has been is­
sued by th e foreign d e p artm en t of his
bank. T his is com plete, concise, and
v ery m uch up-to-date.

A N orthwestern Banker subscriber
has suggested th at in case members
of the F ed eral R eserve Bank have to
use bicycles in order to get to their
offices, we may have to change the
name to “P edal R eserve B ank.”
P erhaps, how ever, we should p u t
our foot dow n on this.
E eo J. W egm an, form er State T reas­

u re r of Iowa, and presid en t of th e Citi­
zens Savings B ank of A nam osa, has
announced his candidacy for Congress
on th e D em ocratic ticket, to rep re se n t
th e Second Iowa D istrict.
Mr. W egm an is a Dem ocrat, b u t not
a New Dealer, and th a t should a t least
recom m end him to m any v oters w ho
are opposed to g overn m ent e x tra v a ­
gance, favor th e elim ination of non­
defense expenditures, and kicking of
labor rack eteers out of th e unions of
th e country.
A lbert T ym eson, presid en t of th e
Com m ercial T ru st & Savings B ank of
Storm Lake, Iowa, has a stuffed A m er­
ican eagle in his b an k cap tu rin g a
would-be Jap, and this hangs a t th e
end of th e lobby and is a ttra c tin g a
g reat deal of attention. W e hope th e
eagle catches a lot of Jap s before it
gets through.
S. E. C oquillette, presid en t of the
M erchants N ational B ank of Cedar
Rapids, had deposits in his b ank as of
A pril 4, 1942, of $49,568,000, w ith a cap­
ital stock of $500,000 and su rp lu s and
undivided profits of $2,390,000.
T his is a financial state m en t of w hich
he m ay w ell be proud, along w ith
Jam es E. H am ilton, ch airm an of th e
bank, and all of th e o th er fine officers.
D onald W . D ouglas, p resid en t of th e
Douglas A ircraft Company, in a recen t
adv ertisem en t for his com pany, de­
scribes w h at each of us can do a t th is
tim e by saying, “W ith th e w orld th e
battleg ro u n d for freedom , we face th e
g rav est crisis in our history. Because
th is is total w ar, c ertain ty of our vic­
to ry is possible only as we become
soldiers all. T h ere’s a soldier’s job to
do on the farm , in th e m ine, a t the fac(T u rn to page 26, please)

Federal Home Loan Bank Annual Meeting

P ic tu re d ab o v e a re officials a tte n d in g th e re c e n t a n n u a l m e e tin g of th e F e d e ra l H om e L o a n B a n k o f D es M oines, in D es
M oines. R e a d in g fro m le f t to r ig h t th e y a re Col. C. B. R obbins, c h a irm a n of th e b o a rd ; Mrs. R obert J. Richardson; R obert
J. R ichardson, p re s id e n t; Carl F. D istelhorst, U. S. S a v in g s & L o an L e a g u e staff, C hicago; A. R. Gardner, p re s id e n t F e d e ra l
H om e L o an B a n k , C h icago; C. W ylie A llen, sp e c ia l counsel B e ll S a v in g s & L o a n A sso c ia tio n , C hicago; F red Bourland, sp ecial
re p re s e n ta tiv e F e d e ra l H om e L o an B a n k a d m in is tra tio n , W a s h in g to n , D. C.; a n d John W. Ballard, e x e c u tiv e v ice p re s id e n t
S a fe ty F e d e ra l S a v in g s & L o a n A sso c ia tio n , K a n s a s C ity.

Northwestern Banker

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

Mag Î9Ï2

17

M EM BER
FEDERAL
D E P O S IT
IN S U R A N C E
C O R P O R A T IO N

N ation al Bank
Northwestern Banker

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

May 19k2

18

Installment Loans
U nder A W a r Ec onomy
"Let Us So Conduct Our Installment Lending Operations That Our
Losses Will Be Small, Our Records Will Be Clean, and Our
Directors Will Be Eager to Have Us Expand
Our Volume at the Proper Time"
of th e p ro p er
policy to p u rsu e w ith reg ard to
in stallm en t lending should re ­
ceive m ore consideration a t th is tim e
th a n th e restrictio n s im posed by R eg­
u latio n W. C ertainly a conservative
policy is indicated—a policy w hich has
as its objective th e ord erly liquidation
of th e loans o u tstan d in g as th e y m a­
ture, and th e ex tension of only such
new cred it as m ay ap p ear consisten t
w ith our p re se n t w a r economy.
L et us first consider th e liquidation
of th e loans now on our books. N ever
before, since b anks en tered th e in ­
stallm en t credit field, have collections
w a rra n te d th e a tte n tio n th e y do now.
M any new dem ands are being m ade
on our b o rro w ers’ incom es.
Chief
am ong these, of course, a re taxes and
defense bonds. Obviously o u r custo­
m ers m u st pay th e ir increased taxes
and certain ly we w a n t th em to buy de­
fense bonds. H ow ever, if paying th e ir
taxes and fulfilling th e ir pledges to
purch ase bonds tak e th e incom e th e y
have prom ised to use in discharging
th e obligations we hold, our delin­
quency lists w ill resem ble th e cas­
u alty lists we hope to provide for the
Japanese.
A no th er factor w hich seriously af­
fects collections and is of p aram o u n t
im portance in m aking new loans, is
occupational changes. M any m en oc­
cupying steady civilian em ploym ent
w ill be going into th e arm ed forces.
A considerable n u m b er w ho have been
selling autom obiles, re frig e rato rs and
o th er item s now cu rtailed or discon­
tin u ed m u st find em ploym ent in oth er
fields. D uring th is period of tra n s i­
tion th e ir ab ility to pay w ill be seri­
ously affected, m aking it difficult for
them to keep up th e pay m en ts on th e ir
installm en t obligations.
In o u r ad v ertisin g w e have re p re ­
sented th a t anyone w ith a re p u ta tio n
for p aying his obligations, an d abil­
ity to pay, m ay obtain in stallm en t
credit. W e have passed on our ap-

D

e t e r m in a t io n

Northwestern Banker

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

May 1942

By V. T. Bonnett
Assistant Vice President
lowa-Des Moines National Bank
Des Moines

V. T. B O N N E T T

lications w ith these tw o requisites
up p erm ost in our m inds. A good
credit ra tin g is still essential, b ut
ab ility to pay has becom e of prim e
im portance. T he m an w hom Diogenes
m ay have considered his g re a te st find
in his search for an honest m an w ould
be a poor credit risk today if he earned
his livelihood by selling tires.

Types of Loans
It m ight be w ell for us to consider
individually each of th e types of in ­
stallm ent loans we have been m aking.
L et us consider first autom obile loans.
Only a few m onths have elapsed since
used car dealers w ere accum ulating
in v en to ries of used cars, an ticipating
a considerable increase in th e ir value.
T h a t w as before th e ru b b er situ atio n

w as generally know n and th e E a st
Indian ru b b er plan tatio n s h ad passed
into th e h and of th e Japs. C ertainly
th e value of an autom obile today is
determ ined by th e condition of th e
ru b b er on w hich it rolls. W hen th e
w ar siuation is in te rp re te d in term s
of tire s it becomes ap p aren t th a t it
is not going to be considered im por­
ta n t w h eth er or not th e average
A m erican citizen has tires for his au ­
tom obile. I doubt if anyone can ac­
curately appraise th e value of an au to ­
m obile six m onths hence.
F o rtu n a te ly it seem s like th e re ­
frigerators, w ashing m achines and
o th er household u tilities ag ain st w hich
we have m ade equipm ent loans w ill
stan d up in value b e tte r th a n au to ­
mobiles. It is to be re g re tte d th a t
th e volum e of such paper is rapidly
dim inishing. I t has been m y obser­
vation th a t as th e q u a n tity of such
contracts dim inishes, th e quality
seem s to be im proving. T his m ay be
explained by th e fact th a t th e dealers
w ho are fo rtu n ate enough to have
such m erchandise can now be m ore
selective in choosing th e ir tim e-pur­
chasers.
In th e equipm ent field th e volum e
of tracto rs and farm m ach in ery m a n ­
ufactu red and sold seem s likely to be
affected least by our w ar program .
Indicated co n tinuation of good farm
incom e invites consideration of th is
type of paper in our efforts to m ain ­
ta in profitable operations.

Persona! Loans
T he fact th a t personal loans have
occasioned m ore losses to banks th a n
any o th er type of in stallm en t paper
indicates th a t th ey should be m ade
a t th is tim e w ith u n u su al caution.
M any people w ho have not saved to
pay th e ir taxes are endeavoring to
p u t off th e day of reckoning by bor­
row ing. The F ed eral R eserve B ank
of New Y ork has w arn ed th a t borrow (T u rn to page 23, please)

19

N orthwestern Banker

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

May 1942

20

Bank

Profits

During Warti me

How to Increase Your Bank Income Through Additional
Checking Revenue

M

AYBE you have th e foresight
to see into the d ista n t fu tu re —
or m aybe not. Or, p erh ap s you,
like m any o th er sensible A m ericans,
are not too deeply concerned w ith
post-w ar problem s u n til a fte r th e w ar
is won.
In any event, you can see into th e
im m ediate fu tu re —-around y o u r n e a r­
est corner.
T h a t every conscientious and p a tri­
otic b an k er should w illingly do his
sh are in selling D efense Bonds is a
foregone conclusion. A nd th a t every
b an k e r should cooperate to th e ’n th
degree w ith th e arm y, navy, O.C.D.,
U.S.O. and o th er agencies, is also a
foregone conclusion.
T his case is not concerned w ith
these w artim e obligations, b u t w ith
th e b a n k e r’s w artim e obligation to
him self. For, in th e p re se n t day h u s­
tle an d confusion of w ar, m ixed w ith
business, it isn ’t h a rd for a b an k er to
tem p o rarily lose sig h t of his obliga­
tions to him self. It isn ’t h a rd to forget
th a t profits are v ital if he is to rem ain
in business.
You, Mr. A m erican B anker, cannot
afford to ignore th e fact th a t legitim ate
profit is th e keystone in our free e n ­
terp rise system . You probably re a l­
ize th a t a corollary for fo rg ettin g p ro f­
its is th a t profits w ill su rely forget you.
W h at should a b an k er do to keep his
place in th e sun? H ow can he be sure
of a reasonable profit d u rin g w ar tim e?
A nd how can he m ain tain a litle of
his place in progress?
I can tell you of one way. I t is
as sim ple as this:
Install, at once, a p opular no-m ini­
m um -balance checking account plan to
bolster service profits and to expose
new business to all of th e d ep artm en ts
of y o u r bank.
F o rtu n a te ly for th e b an k ers in th e
nation, th e tria l period for no-minim um -balance checking system s is long
past. It is no longer a question of
w h e th e r th e idea is sound or not. T h at
im p o rtan t benefits for th e b a n k e r defi­
nitely exist in no-m inim um -balance
system s has been proven by th e expe­
rience of th o u san d s of p re se n t users.
Now, you m ay ask, w h y is today
such a good tim e to install th e plan
in m y bank? H ow can I benefit in m y
tow n, in m y com m unity?
Well, h e re ’s one answ er:
Northwestern Banker

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

May 19^2

By Homer H. Peterson
Vice President and Manager
United States Check Book Co.
Omaha

H O M E R H. P E T E R S O N

W ar tim e restrictio n s are creating a
change in m arkets. T he ratio n in g of
gas, tires, and th e elim ination of new
autom obiles from the m ark et is creat­
ing a ru ra l decentralization and locali­
zation of m arkets. T his change, a n a t­
u ra l one, is being b ro u g h t about au to ­
m atically.
F a rm ers w ho form erly drove from
thirty-five to a h u n d red m iles to dis­
pose of produce and to buy m anufac­
tu re d supplies are g radually tu rn in g
to closer com m unities to do th e ir tra d ­
ing. This, of course, affects th e sm all
com m unity m erchants, and, in tu rn ,
th e local banker.
T here are over ten m illion farm ers
in th e U nited States w ho are gradually
receiving a b e tte r price for th e ir pro­
duce th a n th ey have received in a long
tim e. T here are m illions of w orkers
now m aking a b e tte r w age th a n th ey
have earned since 1929.
M any of these people, w hose in ­
comes are now increased, already have
checking accounts in your bank. B ut
h u n d red s of others, because of service
charges or m inim um balance req u ire­
m ents, have not been in your bank

since 1932, except to cash a produce
check or a pay check.
These people w ill only accept the
type of checking service w hich they
w ant; nam ely, th a t w hich th ey feel
th ey can afford.
You, as a banker, are en titled to this
checking revenue. It is y o u r oppor­
tu n ity to p rotect yourself from loss of
incom e caused by w ar restrictions; in
fact, attem p tin g to get people to di­
v e rt th e ir increased c u rre n t income
into banking channels is an obligation
a t th is tim e. F o r it is only th ro u g h
saving—defense bonds and o th er w ays
—th a t th e evils of inflation in A m erica
can be avoided.
M em bers of th e U nited States Check
Book Com pany are quite proud of the
no - m inim um - balance checking plan
w hich we have designed. A nd we are
especially proud of the fact th a t the
to tal n u m ber of m idw estern banks
now using th e plan is g radually n e a r­
ing the tw o h u n d red m ark.
This system , called th e “PAYC”
(Pay-As-You-Check) plan, has been in
operation in m any of these banks since
it w as first in au g u rated about th ree
y ears ago.
T he “PAYC” plan is sim ple to install
and it is easy for th e custom er to
understand.
E x tra bookkeeping is com pletely
avoided. “PAYC” item s are entered on
reg u lar statem en t and ledger sheets
and posted in the usual m anner.
All m aterial is supplied, including
special sig n atu re cards, in stru ctio n
folders, ad v ertisin g circulars, new spa­
p er m ats, publicity, etc. Large, elab­
orately prep ared lobby and w indow
display pieces are sent to you periodi­
cally, w ith o u t charge.
B ankers now using the plan have
found th e percentage of custom ers
changing over from reg u lar checking
accounts to “PAYC” is less th a n half
of 1 p er cent. And, concerning th is
very sm all percentage, it is probably
b e tte r to “lose” a client from one de­
p a rtm e n t of th e ban k ra th e r th a n to
lose him to an o th er in stitu tio n . B ank­
ers w ho have discovered th a t it is pos­
sible to obtain new accounts—profit­
able from th e m om ent th ey are opened
—have v ery little concern about the
tra n sfe r of such a sm all percentage of
accounts.
(T urn to page 67, please)

21

We

w ill

h e lp

p e o p le

systematically for the

to

sa v e

^

W e pledge ourselves to support all

payment of

c o m m u n ity w a rtim e a c t i v i t i e s ,

future taxes.

especially the Red Cross, Civilian
Defense

W e will lend money to anyone with
sound

credit

for

the

purpose

business and industry in financing an

-fa

and

Y

"all-out" program of production* of

with the Government in the sale of
Bonds

Service

W e will continue to cooperate with

W e will continue to cooperate fully

Savings

United

Organizations.

meeting present tax payments.

W ar

the

of

I
^

and

war materials and necessities.

Stamps.

W e extend our complete, facilities

W e will display the American flag

•fa

to men in all branches of the Service

on our premises as a constant symbol

and will welcorrfte the opportunity to

for ourselves and others of that for

*\

help them in eV^ery way possible.

■
••

X,

which w e jlf t fighting.

-JfRfifl

>■■
.■". ,■

» ...
. a M^y

'

4

-ix .
iV*S£ CCfyK

Ü

M V

m

si

ift
m

t> V *

A

— we pledge ourselves to work in every way possible with the fine
men and women of our community and State and Nation, realizing
fully that we must be victorious. No sacrifice can be too great.
★
T h is c o d e to r th e b a n k s oi A m e r ic a w a s d r a w n a n d
a d o p te d b y th e B o a r d of D ir e c to rs o i th e F in a n c ia l A d v e r ­
tis e r s A s s o c ia tio n a t th e ir M id -w in te r m e e t in g a s c o n d u c t

FINANCIAL

★

★
io r b a n k s in w a r tim e . I t is a iittin g e x a m p l e o i th e k in d
o i in s p ir a tio n th a t g o e s w ith m e m b e r s h ip in th e F in a n c ia l
A d v e r tis e r s A s s o c ia tio n .

ADVERTISERS

ASSOCIATION

PRESTON E. REED, Executive Vice-President, 231 South La Salle Street, Chicago, III.
A NON-PROFIT
■ . . PUBLICITY

ORGANIZATION
FOR
THE B E T T E R M E N T OF A D V E R T I S I N G
. . . N E W B U S I N E S S M E T H O D S . . . P U B L I C RE LATI O N S

"If a n y b a n k e r s — r ea d er s of the N o r th w estern B anker, w o u ld w a n t to u s e the top part of this a d , w e w ill b e g la d to
fu rn ish p la te s or e le ctro s a t a b s o lu te cost." P reston E. R eed , E x ec u tiv e V ice P resid en t, F in a n c ia l A d v e r tiser s A ss o c ia tio n .

Northwestern Banker

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

Mat) 1942

The Rights of Both Parties Under
a

Cattle- feeding

A M innesota banker, w ho ow ned a
farm in th a t state, en tered into an ex­
press co n tract w ith his te n a n t w h e re ­
by th e te n a n t w as to feed certain cat­
tle; th e y w ere to be m ark eted six
m o n th s later, and th e proceeds w ere
to be shared. A t th e ex p iratio n of th e
six m onths, th e b a n k e r refused to sell
th e cattle and th e te n a n t refused to
feed th em fu rth e r and sued th e b a n k ­
er for th e reasonable value of his
services. W ere th e te n a n t’s actions
pro p er and could he recover?
Yes. W here one person perform s
services for an oth er under an exp ress
contract, he m ay, upon the other’s re­
pudiation or breach thereof, stop per­
form ance, treat the contract as at an
end, and recover the reasonable value
of the services rendered.
A North D akota banker ow ned a
farm in th a t state upon w hich th e
taxes becam e delinquent. The taxing
au th o ritie s b ro u g h t proceedings to en­
force th e p ay m en t of th e taxes. The
landow ner asserted as a defense th a t
such au th o rities h ad failed to tak e
steps to collect taxes from o th er de­
lin q u en t taxpayers. W as such defense
good?
No. A d elin q u en t taxp ayer m ay not
set up as a d efen se to proceedings to
enforce th e p aym ent of taxes th at the
au th orities h ave failed to take step s to
co llect taxes from other delinquent
taxpayers.

These and Other Timely Legal
Questions Are Answered
By the

LEGAL DEPARTMENT

T he b an k er sued T h o rn h ill for dam ­
ages and asserted th a t th e m easure of
his dam ages w as th e difference in the
value of the real estate before and af­
te r its in jury. W as such assertion cor­
rect?
No. The m easure of dam ages for
th e destru ction of a w ire fen ce is its
valu e as it stood on the realty, to be
ascertained by d eterm in in g the cost of
con stru ctin g a sim ilar fen ce and de­
d uctin g therefrom the depreciation
w h ich the old one had suffered by rea­
son of age and use.
F irth ow ned an in terest in a certain

tim b er lands in A rkansas. He exe­
cuted a q u it claim deed covering them
to W right. Subsequently, F irth ob­
tain ed from a source o th er th an
W rig ht a fu rth e r in te re st in th e lands.
Did th e q u it claim to W rig h t operate
to pass to W rig h t th e subsequently ac­
q uired interest?
No. A q uit claim deed does not con­
v ey a title su b seq u en tly acquired by
the grantor but does con vey all title
and an y in terest ow ned by th e grantor
at the tim e of its execu tion.

N eal, a banker, lived in A rkansas

and m ade a w ill in th a t S tate th a t re ­
cited th a t he w as an A rk an sas re si­
dent. Subsequently, he m oved his
dom icile to O klahom a and lived and
died there. A n a tte m p t w as m ade to
pro b ate th e w ill in A rk an sas ra th e r
th a n Oklahom a. Should such be p e r­
m itted?
No. A w ill m ust be filed for pro­
bate w h ere the testator resid es at the
tim e of h is death. The fact th at a testa ­
tor recites in h is w ill that he is a resi­
dent of som e state other than th e state
of h is actual resid en ce does not change
th is rule.
T hornhill destroyed a w ire fence on

th e farm of a South D akota banker.
Northwestern Banker

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

May 19^2

B row n died in Iow a and th e b an k er
in his hom e tow n w as appointed ad­
m in istra to r of his estate. B row n had
no creditors and, in the final settle­
m en t of th e estate, th e a d m in istrato r
and the h eirs agreed am ong th em ­
selves on th e am ount of th e adm in­
is tra to r’s com pensation. W as such
proper?
Yes. In Iow a, an adm inistrator of a
d ecedent’s estate and the d ecedent’s
h eirs m ay agree on the am ount of the
adm inistrator’s com pensation w here
creditors’ righ ts are not in volved .
Scherrer gran ted to Snow, in Texas,
a roadw ay easem ent across his land.
The easem ent w as silent as to w h eth er

Contract
Snow w as to receive a right-of-way
free from gates and bars. W as th e
g ra n t subject to such condition?
N ot n ecessarily. W h eth er a grantee
of a w a y under a con veyan ce has a
right to a w ay free from g ates and
bars depends upon the term s of the
grant, its purpose, the nature and sit­
uation of the property, and the m anner
in w hich it is used.
M axw ell, a K entucky banker, ow ned
a farm in th a t state th a t he leased for
oil and gas purposes. Oil production
w as had on certain adjoining land and
th e b an k er sued his lessee for dam ages
on account of drainage because his
lessee did not atte m p t to offset such
production. Before filing the suit, how ­
ever, he did not notify th e lessee th a t
he req u ired the drilling of offset w ells
and dem and th e ir establishm ent. Could
he recover for any drainage p rio r to
such notice?
No. The ow n er of a tract covered by
an oil and gas lease is n ot en titled to
dam age for drainage occurring prior to
n otice and dem and for offset w ells.
R osebaugh had a claim ag ain st a
b a n k e r’s estate in N ebraska. She em ­
ployed an atto rn e y to rep re se n t h e r in
prosecuting th e claim and g ran ted him
a lien on any recovery she m ight ef­
fect. Subsequently, she settled the
claim w ith o u t h er a tto rn e y ’s know l­
edge or consent. Did she have the
rig h t to do this?
Yes. A litigan t has an absolute right
to settle litigation but su ch a se ttle­
m ent, if m ade w ith o u t the k now ledge
or con sen t of her attorney, does not
affect an ex istin g a ttorn ey’s lien.
H aem m erle borrow ed $5,000 from an
A rkansas b ank and, as an incident to
th e transaction, F a rre ll en tered into
an agreem ent providing th a t he w ould
act as su rety for th e p aym ent of th e
indebtedness. It subsequently devel­
oped th a t H aem m erle w as m entally in ­
com petent at th e tim e. W as F a rre ll
n evertheless liable?
Yes. A lthou gh a principal lacks ca­
pacity to en ter into a contract made,
h is su rety is bound n ev erth eless, as he
m ay be said to w arrant the com pe­
ten cy of the principal.— T H E EN D .

23

IN STALLM EN T LO A N S

★

★

★

★

★

★

★

★

★

★

★

★

★

★

★

★

(C ontinued from page 18)
ing b y individuals from b an k s to ob­
ta in funds w ith w hich to pay taxes
is a g ain st th e b est in te re sts of th e
n atio n an d of th e tax p ay ers th e m ­
selves.
R egulation W h as v ery m aterially
affected th e volum e of T itle I pap er
available. Scarcity of m aterials is re ­
sponsible for th e ab an d o n m en t of
m an y p lan s to m odernize and im ­
prove. P ro b ab ly m ost of you have
read th e le tte r sen t out by th e F ed eral
H ousing C om m issioner on F e b ru a ry
28, suggesting th a t because of th e ex­
istin g n atio n al em ergency th e ex ten ­
sion of F ed eral H ousing T itle I credit
should be re stric te d to loans, th e p ro ­
ceeds of w hich are to be used e ith e r
in defense areas to create additional
dw elling u n its su itable for defense
w orkers, or to m a in ta in existing p ro p ­
erties in a h abitab le condition. Cer­
ta in ly th e b an k s have an obligation
to cooperate w ith th is plan and a re ­
sponsibility to m ake no m ore loans for
w hoopee room s or o th er im prove­
m en ts w h ich m ay w ell be d eferred
u n til a fte r th e w ar.
I hope th a t I have n o t created th e
im pression th a t I feel we should
liquidate o u r loans and go out of th e
in sta llm e n t lending field. W e have
ad v ertised for b u siness and encour­
aged m any people to establish th e ir
credit w ith us. W e have a m oral ob­
ligation to stay in th e business an d
m eet th e ir req u irem en ts on a sound
basis. W e have th e fu rth e r resp o n si­
bility of p o in ting out to th em th e n e­
cessity of liquid atin g th e ir debts, c u r­
tailin g th e ir p u rch ases and so a rra n g ­
ing th e ir affairs th a t th e y can pay
th e ir increased tax es and co n trib u te
th e ir fair sh are to w ard w in n in g th e
w ar by p u rch asin g defense bonds.
It is hig h ly im p o rta n t th a t we m ain ­
ta in our contacts w ith th e sources
from w hich we have obtained our
profitable business in o rd er th a t we
m ay secure a considerable po rtio n of
th e in stilm e n t p ap er created a fte r th e
w ar by th e A m erican public in th e ir
desire to obtain m erchandise th e y
have been denied in th e in te re st of
victory.
L et us so conduct o u r in stallm en t
lending o p erations th a t o u r losses w ill
be sm all, our records w ill be clean and
our directo rs w ill be eager to have us
expand our volum e w h en th e ap p ro ­
p ria te tim e arriv es.— T H E E N D .

How Your Bank Can Increase
Check Revenue During Wartime!

D e fe n se A c tiv ity C rea tes N ew P r o s p e c ts
A m o n g F a rm e rs a n d W a g e-E a rn ers
in Y o u r C o m m u n ity
P rotect Y o u r se lf A gain st L oss o f
In co m e b y G earing Y ou r B an k
to M eet V ital NEW N eeds!
Farm ers, wage-earners and m erchants
with increased income are looking for a
popular checking account service which
they feel they can afford.
You, as a banker, realize this need. B ut,
your checking account service m ust show a
fa ir and reasonable profit, as well. You’d
like to get some positive benefits.
And you are entitled to a reasonable
profit. A fter all, bank service, like tangible
m erchandise, m ust be sold profitably if you
are to rem ain in business.
Is there a checking plan which offers spe­
cial features for these people w ith increased
incomes? Is there a plan which will bring
in new business and not interfere in any
way with your present checking m ethod?
T here is!

Decide today to investigate the business­
building possibilities of “ PAYC” in your
bank. Ask a “U. S.” representative to show
you the facts based on the results which
“PA YC” has earned in other banks.

A bbreviated Facts A bout
“ PAYC”
1. An expensive investm ent in m ate­
rials is not required.
2. E x tr a bookkeeping is c o m p le te ly
avoided. Your “ PAYC” accounts are
handled simply and easily with regular
checking accounts.
3. Percentage of custom ers changing
over from regular checking to “PAYC”
plan is less than % of 1-percent.

N o-M inim um -B alance System
is th e A nsw er

4. You choose between two systems:
(a) in which customers are charged
$1.00 in advance for book of 20 checks;
(b) in which checks are free and cus­
tomers are charged 5c per item.

T he “ PA YC” ( P a y - A s - Y o u - C h e c k )
Checking Plan is accepted quickly by the
sizable portion of the public for which it
was especially designed. T hat this is true
has been proven by the results it has shown
in the many mid-western banks now using it.

A “ U. S ” R e p r e s e n ta tiv e
is a
“ P A Y C ” R e p re se n ta tiv e

You can increase checking revenue in
your bank and expose hundreds of new

Take a D eep Breath
Miss P o rter: “So you are on a su b ­
m arine. W h at do you do?”
Sailor: “W hen we w a n t to dive I
ru n fo rw ard and hold h e r nose.”

customers to all your bank services if you
bring them in with the “ PA YC” plan.

SINUS

CMÏ.CW BOO'S. COWPOkttY
In

Omaha

Since

Your “U. S.” representative has
been especially equipped with new
facts and inform ation concerning
latest “ PA YC” developments.
Ask him to show you this portfolio
the next tim e he visits your bank!

1916

Northwestern Banker

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

May 1942

24

☆

☆

P l e n t y of
FIELD HELP
H e l p s You
BUILD BUSINESS
Intelligent, trained field service men
always are at the disposal of Western
Mutual Agents. Investigate what this
extra service may mean to your agency.
Legal Reserve —N on-A ssessable
Fire and A uto Policies

Western
F i r e

Mutual

I n s u r a n c e

9th and G rand

^TITT7777?>>w

C o m

p a n y

Des M oines, Iowa

‘Over a T hird of a C entury of Safety and Service W ith Savings'

☆

☆
'Northwestern Banker

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

May 1942

"W ith M e the Answer Is—

Make Him fe e l Sorry'
"It Is Better to Close One Man Five Times Than Five Men One
Time— and a Lot More Profitable"
HAVE found th a t I m u st get com ­
m itm en t on th e fu n d am en tals of life,
not life insurance, in order to sell in
1942. W h at success I enjoyed in 1941
w as due to th is fundam ental, and it
alone.
The m echanics of life insurance,
such as cash value, dividends, ex­
ten d ed insurance, prem ium , and such
technical know ledge I n ev er w ork
w ith; ra th e r I let those te rm s w o rk for
the policyow ner. Such technical term s
do n o th in g b u t confuse th e m ind of th e
prospect and th erefo re th a t n a tu ra l re ­
su lt is he does not b u y from th e agent
th a t uses them . L ast y e a r I closed
th re e of m y larg est cases because m y
com petitor re so rte d to technical term s,
w hile I discussed th e correct solution
to th e hopes and am bitions th e pros­
pect w an ted m ost to accom plish.

I

By George R. Wilmot
A sso ciate General Agent
Gu aran te e Mutual Life Company
Omaha

G E O R G E R. W IL M O T

Emotional Selling
T here are certain u n d e rw rite rs I
know w ho h esitate to use, or are even
diam etrically opposed to em otional
selling. To me, since th is is co n trary
to life itself, it is c o n tra ry to th e p rin ­
ciple of selling life in su ran ce and life’s
situations.
A re you read ers ever
m oved by a b aby’s cry, a w ord of en­
couragem ent, a p at on th e shoulder,
th e desire to succeed, th e p lig h t of a
m an econom ically “dead”? If you are
not m oved by th ese em otions, you can
get no h e a rt into y o u r sales. If you
do feel a th rill of em otion to these
qualities, w h y not adm it o th er m en
feel th e sam e em otions and th erefo re
can be m oved into action by them ?
You m ight have sold cases by use of
th e m echanics of life insurance, b u t
no m an ever bought life in su ran ce be­
cause of its m echanics. W h eth er you
used em otion or not, he felt some em o­
tio n or he w ould not have bought.
L e t’s see how we can get into h arm o n y
w ith th e o th er m a n ’s em otions, am bi­
tions, and we w ill soon find th e need
because th e prospect w ill tell it to us.
“T h a t w hich you know , deal w ith it,”
said A. B. Olson, vice p resid en t of
agencies of th e G uarantee M utual Life
Com pany, one A pril in 1938, to a class
of som e tw e n ty m em bers assem bled to

learn some ru d im en ts of our business.
I w as a stu d en t in th a t class and since
have had occasion to use these w ords
to advantage.
W e all know th a t th e prospects we
call on know w h at prem ium s th ey pay
and how m any thousands of insurance
th e y own. W hen th ey see us com ing
it is only n a tu ra l th a t th ey defend
them selves by saying “I ’m insurance
poor,” or “I ’m p u ttin g all I possibly
can into life in su ran ce”. These and
p ractically all o ther excuses are born
of ignorance of w h at th ey now own,
or fear of being sold additional in su r­
ance. In term s of know ing these facts,
w ouldn’t it be foolish for us u n d e rw rit­
ers to call on these prospects from this
angle? Yet day a fter day insurance
m en call upon prospect after prospect,
and as a n a tu ra l re su lt ru n into an im ­
passable object, th e failure of th e pros­
pect to tak e action. It has been said
“A salesm an is one w ho sells”. Action,
therefore, by our prospect is m ost nec­
essary. “L et’s “deal” w ith w h at we
know.

ous. C uriosity will th en be changed
into in terest, in te re st into desire, and
desire into action. W hat is th e best
w ay to aw aken curiosity, th u s leading
to the pro sp ect’s interest? By actual
practice and record keeping, I have
found th a t an approach based upon
things th e prospect does not know
about his life in su ran ce is th e answ er.
“The answ er to w h at?” you ask. The
answ er to a successful approach. The
approach is 50 per cent of th e sale. The
o ther 50 p er cent is th e close.
W h eth er your prospects are totally
u n know n to you or w ell know n,
w h eth er you have a w ide acquaint­
anceship or none at all, w hich w as m y
situ atio n w hen I first m oved to Omaha
in th e fall of 1939, you w ill never sell
your m an unless you discover his m ost
likely need and solve it for him. This
is th e reason your approach is so im ­
portant.
The m ethod of approach used by
countless num bers of m illion dollar
producers is based upon a fact finding
in terv iew first, intelligent study of the
prospect’s im m ediate need and th e of­
fering of a possible solution. This I
have used constantly since arriv in g
in Omaha, a total stranger. It w orks,
so w hy should I abandon it?
You m ay say, “T h a t’s fine, George,
b u t how do you go about arousing this
c reatu re called m otivation, so your
prospects take th e necessary action?”
A w ell stated question. W ith me the
answ er is—m ake him feel sorry. This
one th o u g h t nearly doubled m y b u si­
ness in 1941. It has th e aspect of pow ­
erful m otivation because m an, as such,
unconsciously dream s of th e w onder­
ful things he is going to do in the
future. No financial house of security
w as bu ilt on dream s, b u t contrariw ise
upon a definite plan or plans of sav­
ings. How can we as salesm en do this
to best advantage? F o r me a dram atic
tre a tm e n t of th e p ro spect’s past, p res­
en t and fu tu re m otivates him into defi­
nite action!

The Approach

Dig Up the Past

Now th e problem resolves itself in
causing our prospect to become cu ri­

F irst, le t’s tak e up th e past. Say
y o u r m an has w orked 15 y ears and
Northwestern Banker


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

May 19^2

26
earn s an average of $200 a m onth.
T h at is $36,000 over a 15 y e a r period!
Get anyone to com m it him self on an
average y early incom e and let him
m u ltip ly by his y ears of h a rd w ork.
This re su lt w ill sta rtle th e average
m an regardless of th e size of his in ­
come. Ask th is Mr. A verage Man
w h e th e r he is going to be satisfied
w ith h is share, a t th e end of 15 m ore
y ears of h a rd w ork. H e w ill usually
an sw er a w eak "no,” or ask w h a t you
m ean. In th e la tte r case, since he is
asking, an sw er “W ho are you w orking
for, if a fte r 15 y ears h a rd w o rk th e
m erch an ts, grocers and landlords di­
vide up y o u r h a rd earn ed cash?” He
w ill have to agree he left him self out,
w on ’t he? T hey do. T his is m otiva­
tion. He w ill feel sorry.
Now tra n sla te into the p re se n t th is
sam e tre a tm e n t of his to d ay ’s incom e
and we find th e prospect is still suffer­
ing by giving up his incom e to others
faste r som etim es th a n he earn s it.
L et’s strik e th e problem a t its core by
a few sh o rt re m a rk s at th is stage, like:
“If y o u r firm took in v e n to ry like you

and I have ju st been doing, and found
th e ir condition th e sam e as yours, th ey
w ould do som ething about it p re tty
quick, w ouldn’t th ey ?” T his alm ost
in v ariab ly gets “y es” as an answ er.
T ry for a close a t th is point. “I t ’s
h a rd to save m oney, isn ’t it, Mr. A ver­
age M an?” “Yes,” he says. “Isn ’t
saving m oney ju st w h at you really
w an t to do?” “Of course,” he says,
and again you try to close him . “If
by saving this m oney and gettin g y o u r­
self on th e road to successful savings
you could a t th e sam e tim e th ro w
those stro n g arm s of protection aro u n d
those you love best, w ouldn’t you say
it w as a sm art move on y o u r p a rt? ”
Close again. It is b etter to close one
m an five tim es th a n five m en one tim e,
and a lot m ore profitable!
Five, tw enty-eight, sixty-seven, one
h u n d red m en now sixty-five! Five in ­
d ependent—tw enty-eight barely on th e
payroll b u t soon subject to th e “sack”
— sixty-seven dependent old men!
W hich group w ould you choose now?
“The five in d ependent?” L e t’s com­
plete th is g u aran tee h ig h t now! (P ush

Io w a C asu alty F ig u res lor 1941
T o tal
IO W A C O M PA N IES
P rem s.
A llied M u tu al ................................... Ê 838,212
A m erican R epublic ........................
52,212
B ankers L i f e .....................................
208
C olum bia M u tu al L if e ..................
6,327
Com bined C asu alty ........................
12,910
E m ployers M u tu al C a s u a lty ......... 1,449,951
H aw keye C a s u a l t y ..........................
558,420
I n te r s ta te B usiness M ens A c c.. . .
73,364
Iow a F a rm M u tu a l.......................... 482,449
Iow a M u tu al C a s u a lty .................... 366,706
Iow a M utual L ia b ility .................... 952,268
M erch an ts M u tu al B o n d in g .........
48,130
M idw estern C asu a lty .................... 175,366
M u tu al S u rety .................................
41,594
N a tio n a l T rav e le rs C a s u a lty ......... 134,376
N o rth e rn M u tu al B o n d in g ...........
7,471
P io n e e r N a tio n a l C a s u a lty .........
85,920
S e ntin el In s u ra n c e ........................
17,131
N O N -IO W A C O M PA N IES
A cciden t a n d C a s u a lty ..................
7,360
A e tn a C asu a lty & S u r e ty ...............
220,556
A e tn a L ife .......................................
220,477
A llian ce L i f e .....................................
2,889
A llsta te I n s u r a n c e ..........................
16,031
A m erican A u to m o b ile ....................
79,050
A m erican C red it In d e m n ity .........
16,085
A m erican E m p lo y e r s ......................
45,699
A m erican G u a ra n tee & L iab ility
2,544
A m erican M u tu al L iab ility . . . .
219,061
A m erican R e i n s u r a n c e ..................
16,341
A m erican S u r e t y ............................. 218,899
A nchor C a s u a lty ............................... 113,858
A rex In d e m n ity ...............................
2,478
A ssociated I n d e m n i t y ....................
652
B enefit A ssociation o f R ail E m p. 172,045
B itum in o u s C a s u a l t y ...................... 451,379
B usiness M ens A ss u ra n c e .............
48,471
C e n tra l S u rety & In s u ra n c e .........
78,178
C olum bia C asu a lty ........................
71,858
C olum bian N a tio n a l L ife .............
7,522
C onnecticu t G eneral L ife .............
20,358
C onnecticu t In d e m n ity ...............
8,119
C o n tin e n tal A s s u r a n c e ..................
6,598
C o n tin e n ta l C asu alty .................... 400,420
C ra ftsm e n I n s u r a n c e ....................
34,746
E a g le In d e m n ity .............................
45,391
E m ployers L iab ility A ssu r...........
98,065
E m ployers M ut. L ia b ility .............
344,281
E m ployers R ein su ra n c e ...............
172,590
E q u itab le L ife A ss u ra n c e .............
75,008
E u ro p ea n Gen. R e in su ra n c e .........
66,558
F e d e ra l L ife a n d C a s u a lty ...........
2,716
F e d e ra l L ife In s u ra n c e .................... 107,534
F id e lity a n d C a s u a lty .................... 411,206
F id e lity a n d D e p o sit........................ 138,706
F ire m a n ’s F u n d In d e m n ity ...........
44,307
F re e p o rt M otor C a s u a l t y .............
152,378
G eneral A ccid en t F ir e & L i f e . . .
43,325
G eneral A m erican L i f e .................
4,702
G eneral C asu alty o f W isc o n sin . .
G eneral R ein su ra n c e C o rp o ratio n 105,905

Northwestern Banker

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

N et
Losses
$334,369
12,052

May 19^2

1,430
70.310
101,587
749
4,763
35,520
2,844
15,611
975
106,538
2,379
19,122
55,569
996
59
84,334
209,200
20,661
36,131
11,749
2,195
8,163
3,332
2,436
178,212
15,618
11,780
45,949
147,383
45,763
45,650
11,558
732
50,544
127,912
10,537
9,162
62,430
15,004
3,664

Glens F a lls I n d e m n i t y ..................
Globe In d e m n ity .............................
G re a t A m erican In d e m n ity .........
Jo h n H ancock .................................
H a rd w a re M utual C a s u a lty .........
H a rtfo rd A & I .................................
H a rtfo rd L ive S to c k . ....................
H a rtfo rd S team B o ile r............. ....
H om e In d e m n ity .............................
H oosier C asu a lty ............................
Illinois B an k ers L ife ......................
Illinois C a s u a l t y ...............................
In d e m n ity In su ra n c e of N . A .. .
L ib erty M u t u a l .................................
London a n d L a n c a s h ire ................
L ondon G u a ra n tee a n d Acc...........
L oyal P ro te c tiv e L if e ....................
L u m b erm ens M utual C asu a lty . . .
M ary lan d C asualty ........................
M assach usetts B onding & I n s .. . .
M assach u setts In d e m n ity ...........
M assach u setts P ro tec tiv e A ss n .. .
M edical P ro tec tiv e ........................
M ercer C a s u a l t y ...............................
M etro p o litan L ife ..........................
M idw est L ife ...................................
M onarch L ife ...................................
N a tio n a l S u rety ............................
N ew A m sterd am C a s u a lty .............
N ew Y ork C asu alty ......................
N o rth A m erican A cc......................
N o rth W este rn N a tio n a l C asualty
O ccidental I n d e m n i t y ....................
O ccidental L i f e .................................
O cean Acc. —- G u a ra n te e .............
Ohio C asu a lty .................................
Old L in e L if e .....................................
P acific M utual .................................
P a u l R evere L if e .............................
P h o en ix I n d e m n i t y ........................
P re fe rre d A ccident ........................
P ro tec tiv e In d e m n ity ....................
P ro v id e n t L ife & A cc.....................
P ru d e n tia l .........................................
R elian ce L ife ...................................
R oyal In d e m n ity ............................
St. P a u l M ercury & In d e m n ity .
S e c u rity M u tu al C a s u a lty ...........
Shelby M ut. P la te G lass.............
S ta n d a rd S u rety & C a s u a lty . . . .
S u b u rb an A u to .................................
Sun In d e m n ity .................................
T rav e le rs In d e m n ity ....................
T rav e le rs In s u ra n c e ......................
U n ite d S ta te s C a s u a lty ..................
U . S. F id e lity & G u a ra n te e ...........
U n ite d S ta te s G u a ra n te e .............
W ash in g to n N a tio n a l ....................
W estern S u rety ...............................
W orld In s u ra n c e .............................

21,253

Z u rich Gen. Acc. & L i a b ili ty .. .

1,646
51
653,512
229,530
40,506
185,121
133,994
423,088
6,637
70,490
3,102
59,579
28,972
10,604

T o tal N e t
P rem s. Losses
36,249
53,767
100,887
52,086
26,909
27,506
45,758
22,668
184,559
55,898
392,991 160,693
37,466
21,739
71,837
11,889
18,323
10,846
61,062
27,172
9,306
2,716
57,823
25,028
122,170
33,119
423,505
86,642
4,738
1,755
32,054
13,354
30,577
12,522
66,450
23,500
110,460
46,761
155,591
66,015
822
164
300,853 148,252
39,099
6,256
46,525
25,452
136,999
74,850
2,745
979
71,700
40,916
130,561
13,351
69,940
34,425
30,420
2,071
134,497
50,233
103,927
27,155
5,281
353
27,949
10,149
52,525
20.591
259,030
88,279
206
571
75,870
60,341
67,685
28,308
15,756
3,901
41,435
9,428
2,086
345
89,624
32,644
49,131
31,561
1,939
127
34,361
18,557
194,018
52,935
54,370
31,973
16,730
7,035
1,058
363
71,221
36.915
16,513
12,577
316,907 108,851
630,302 354,606
42,718
27,849
424,912
87,642
18,373
1,772
192,006
87,012
73,111
2,184
253
12,257
7Ì
127,920
77,489

an application over for his O. K.)
Based on his p ast savings record he
should be a cinch to close, for he has
already adm itted his lack of ability
to save system atically and has alread y
spent a fo rtu n e m aking the m erch an t,
grocer and landlord richer.
F rien d s of N o r t h w e s t e r n B a n k e r , I
am only a hum ble u n d e rw rite r w ho
has found an idea th a t is w orking
daily, w eekly, m onthly, and an n u ally
for me! My sales philosophy is based
on sim ple stan d ard s of w h a t m y pro s­
pect w an ts to do (not w h at I w an t to
do), coupled w ith a plan to m ake him
feel so rry enough for his sp e n d th rift
w ay of life so th a t th e sorrow w ill
move him to do som ething for him self
and th e ones he loves th e best. T his is
not h a rd to do. W hy not try it on
y o u r b est friend and w atch him look
am azed at w here his sm all fo rtu n e
w en t over th e p ast few years? W h at
can you show for 15 y ears of effort?
W h at can he?
W h at can anyone
show? Is it enough? A re you satis­
fied? All an sw er “no,” so le t’s m ake
m ore people financially well, instead
of leaving th em financially sick. In
th is m an n er you benefit, y o u r com­
pany benefits, yo u r com m unity bene­
fits, your state and nation w ill once
again m old itself into financial h a r­
m ony and economic security.— T H E
EN D .

N EW S A N D VIEW S
(C ontinued from page 16)
tory, yes, and in th e home. A m erica
u n ited is A m erica invincible.
“T he o rder of th e day for soldiers of
Dem ocracy in and out of uniform is,
‘F ig h t w ith ev ery th in g you have for
ev ery th in g you hold dear.’ Only in
th a t g reat day of final victory w ill w e
have kep t our rendezvous w ith destiny
and be able to ‘look forw ard and m ove
fo rw ard to a fu tu re w o rth y of m en
w ith peace in our h e a rts.’ ”
L ieu ten an t C harles H. B ryant, Jr.,

26, son of C harles H. B ryant, presid en t
of th e Des M oines M orris P lan Bank,
lost his life recen tly in th e Canal Zone
w hen a plane in w hich he w as flying
across th e jungle h it some trees and
fell to th e ground. L ieu ten an t B ry an t
w as an observer in th e plane, and also
killed w ith him w as L ieu ten an t W il­
lard N. H end rickson of Millboro, South
Dakota.
L ieu ten an t B ry an t w as m arried and
had a two-year-old daughter.
R oger Topp, vice p resid en t of th e
Public N ational B ank of New Y ork
City, afte r a b rief illness, died recently.
B orn in Columbus, M ississippi, in
1885, Mr. Topp, after atten d in g public
and high schools in New Y ork City,

27
en tered S tan fo rd U niversity, Cali­
fornia, g ra d u a tin g in 1908. A fter v a ri­
ous activ ities w hich took him abroad
for extensive periods, he joined th e
official staff of th e N ational B ank of
Com m erce in N ew York, N ew York,
w h ere he rem ain ed from F eb ru ary ,
1923, u n til A pril, 1929. F ollow ing this,
he becam e a ssista n t vice p resid en t of
th e P ublic N ational B ank an d T ru st
Com pany of N ew York, and in 1931 w as
appointed vice p resid en t of th a t in sti­
tution.
H arold J. W ilson, p ro m in en t a tto r­
ney of B urlin g ton , w ho in his odd m o­
m en ts w rites p o etry for fu n an d re la x ­
ation, sen t us th e follow ing poem, e n ­
titled “T reachery”:
T hose perfidious Jappies can’t tru st
th eir ow n pappies;
D eceit m akes them y ello w clear
through;
W h ile p reten tiou sly faking,
P earl H arbor w as quaking;
It’s hard to b elieve, but it’s true.
A s w e tru sted th e ir friend sh ip, w e
m ade our first war-slip;
W e failed to be on th e alert;
A nd w ith S ingap ore’s fallin g,
A lthou gh it’s appalling,
T h ey ’ve w iped out B ataan to our hurt.
B u t M acA rthur is livin g, A ustralia is
g iv in g
A b low for a b low , fightin g on;
AVe are w ith them , en m asse,
A s th ey hold K h yber P ass,
A nd defend on th e Isle of Ceylon.
B ut the fight is n ot finished, our faith
n ot dim inished;
W e’re girdin g ou rselves for th e fray;
W h en our N avy starts churning,
A nd T ok yo’s burning,
T h ey w ill learn th at d eceit d oesn ’t
Pay.
Captain George M. P eterson , fo rm er­
ly vice p re sid e n t of P olk-P eterson Cor­
p o ratio n in Des Moines, has enlisted in
th e a ir service and has alread y left for
F lo rid a to tak e up his new duties.
C aptain P eterso n w as in W orld W ar I
an d saw m uch active service in F rance.
C harles S. M cK instry, vice p resid en t
of th e N ational B ank of W aterloo re ­
po rts one of th e b est y ears in th e h is­
to ry of th e bank, and an all tim e h igh
w as reach ed in th e deposits on A pril
4, 1942, w h en th e deposits w ere $9,807,000, w hich w as a gain of $1,626,000,
com pared w ith a y e a r ago on th a t sam e
date, a t w hich tim e th e deposits w ere
$8,181,000.
T he o th er officers of th e b an k in ad ­
dition to Mr. M cK instry are Jam es M.
Graham, p resident; R. L. P en n e, cash­
ier; H. F. Hoffer, a ssista n t cashier; R.

Airain
E m ployers M utual
L e ad s in Iow a!
/J (lecosid M a in ta in e d
lost, f6 yeaM ,
For 16 straight years, Employers Mutual of Des Moines
has led all Iowa companies in the writing of casualty in­
surance.
Employers Mutual has also stood first in premium income
for all Iowa companies (excepting life).
There's a reason for this outstanding record . . .
1
Prompt, cheerful p aym ent of all just claim s is a para­
m ount p olicy of the com pany.
2
A ssets of $5,044,899.18 are alm ost entirely in cash .
G overnm ent, M unicipal and School obligations.
3
Policyholders' surplus of over $1,000,000.00 for ADDED
security.

4

R einsurance protection on every p olicy— PLUS a guar­
an tee fund deposited voluntarily with the Iow a Department
of Insurance, totalling $200,000.00.

5
Em ployers insures only GOOD risks, p a ssin g on the
resultant sa v in g s to policyholders.
6

A ll p olicies are ab solu tely n o n -assessab le.

Banker agents are invited
to write for our attractive
agency proposition.

E mployers M utual
CASUALTY COMPANY • DES MOINES
AUTOMOBILE INSURANCE • WORKMEN S COMPENSATION • TOWN LIABILITY
GENERAL LIABILITY • ELEVATOR INSURANCE • PLATE GLASS

Northwestern Banker

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

May 19^2

28
L. K ilgore, a ssista n t cashier; and A. J.
Burk, a ssista n t cashier.
Jim H. P ullm an, vice p resid en t of the
F rem o n t C ounty Savings B ank at Sid­
ney, Iowa, in a recen t le tte r to th e
N o r t h w e s t e r n B a n k e r said, “You are
p u ttin g out a v ery fine publication and
I enjoy reading every issue of th e
N o r t h w e s t e r n B a n k e r .”

John L. L ew is and fam ily, according
to recen t rep o rts, seem to be doing all
rig h t financially. Jo h n L. L ew is’ sal­
ary is $25,000 a y e a r and exp en ses as
p resid en t of the U nited Mine W orkers,
and th e n adding in 10 o th er m em bers

8

of his fam ily, including in-laws, the
to tal sum paid to these m em bers of the
Lew is clan is $112,500 plus exp en ses
for services ren d ered by Jo h n L ’s little
fam ily group.
H arry C. H ausm an, secretary of th e
Illinois B ankers A ssociation, of Chi­
cago, has been w orking to defeat Sen­
ate Bill 1603, w hich am ends the N a­
tional B anking Act by au thorizing the
com ptroller of the curren cy to pro­
vide banking facilities at U nited States
m ilitary reserv atio n s and navy yards
and stations, n o tw ith stan d in g any pro­
vision of law to th e contrary.
T hus, according to H arry, th e bill

EXTRA

fees

IN ONE DAY
$ 7 2 .9 0 a veia ye foee
$ 5 8 3 . 2 4 total foaei
T h a t’s th e p r o fita b le ex p e r ie n c e o f one b a n k er,
w h o is also one o f o u r a g e n ts.

W orking under one of our SPEC IA L C O N ­
T R A C T S FO R BANKERS O N L Y this b a n k e r in a tow n of 2,500— wrote eight cases for $26,808
of life i n s u r a n c e , which earned him a total of
$ 5 83.24 in “ fees,” or commissions, as we say.
Moreover, he qualified for renewals w ith this one
block of business.
You too, can supplement your income through
exceedingly liberal commission and renewals— all
guaranteed direct by a mutual legal reserve company
forty years old, of exceptional financial standing.
A letter will bring full details regarding our
SPEC IA L B A N K ER ’S C O N T R A C T and our
specially prepared B A N K ER ’S K IT .
WRITE

US

IMMEDIATELY

Guarantee Mutual Life Co
O R G A N I Z E D — 1901

A. B. OLSON, Agency Vice-President

OMAHA,
Northwestern Banker

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

May 1942

NEBRASKA

provides for any n ational bank, upon
th e au th o rity of th e com ptroller of
th e currency, an yw here in th e co u n try
to establish a branch bank e ith e r w ith ­
in or w ith o u t its hom e state an d w ith ­
out regard for the state law applicable
to state banks in th e place affected.
I t is th e belief of the Illinois B an k ­
ers A ssociation th a t th ere is no need
for th is change in th e law, an d th a t
local banks are giving adequate serv ­
ice in every place w here A rm y and
N avy troops are stationed.
A ccording to recen t estim ates, th e
value of A m erican farm real estate has
advanced $2,360,000,000 d u rin g th e p ast
12 m onths. The total value of such
farm real estate is estim ated a t $36,000, 000, 000.

y

H arold P. K lein, a ssistan t vice p resi­
dent of th e Iowa-Des Moines N ational
B ank and T ru st Company, is ch airm an
for Polk County for th e Com m ittee for
th e N avy Relief Society, w hich had a
quota of $18,500. T his has already been
exceeded and the funds are still com ­
ing in.
W infield W . Scott, vice p resid en t of
th e V alley Savings Bank, w as ch air­
m an of th e B ankers D ivision w hich
looked after raisin g funds locally in
Polk County.
On May 10 th e big H ollyw ood Re­
vue of 30 actors and actresses w ill ap ­
pear at th e S hrine Tem ple, th e funds
from w hich w ill also be donated to th e
N avy Relief Society.
W illiam B. W hitm an, a ssistan t sec­
re ta ry of th e M anufacturers T ru st
Com pany of N ew Y ork City, and th e
handsom e and popular rep resen tativ e
of his com pany in the m iddle w est, in
req u estin g a copy of th e 1942 IowaN ebraska B ank D irectory, published
by th e N o r t h w e s t e r n B a n k e r , said:
“To have one of you r la test bank di­
rectories along w ith m e on a trip is
ju st as essen tia l as a clean sh irt or a
couple of spare tires.”
M. M. Taylor, p resid en t of th e Cen­
tra l N ational B ank of Columbus, Ne­
braska, has sent th e N o r t h w e s t e r n
B a n k e r a v ery in terestin g photograph
of a display w hich th e b an k has in its
w indow a p ain tin g of th e A m erican
eagle u n d e rn e a th w hich it says, “Buy
U. S. Defense B onds.”
In a n o th er place in th e display it
em phasizes th a t D efense Bonds earn
2.9 p er cent an n u ally and u n d e rn e a th
this it says “S upport th e Boys on th e
B attle Line and Hold Inflation D own.”

Lousy Joke
“L ittle boy, do both of y o u r dogs
have licenses?”
“Yes, sir! T h ey ’re ju s t covered w ith
th em .”

-if

29

W h y Farmers

Need

H a lli nsurance
Iowa, b u t extends over all the M issis­
sippi basin.
The g reat increase in th e acreage of
soybeans all over the co untry has in ­
troduced a new elem ent into th e in te r­
est in hailstorm s and th e ir influence
on grow ing crops, because th is crop is
easily h u rt by hail, and does not a l­
w ays rip en before frost. As tim e goes
on, it is predicted th a t m ore atten tio n
w ill be given to th e loss to crops
caused by hailstorm s and th e m ethods
of reducing th e destruction, or a t least
of m ost equitably d istrib u tin g th a t
loss.

O U R P R O O F DEPARTMENT
(C ontinued from page 13)

A bove, w h a t re m a in e d of a corn crop a f te r a h a il sto rm
n e a r H a rla n , Io w a , la s t y e a r.

ANY people have n o t u n til th e
last few y ears realized th e g reat
M
dam age done each season to grow ing
crops by hailstorm .
Those w ho have not seen fields a fte r
a severe h ailsto rm has passed over
th em can have little conception of th e
d estru ctiv en ess of such a storm . The
y e a r 1941 w as n o t rem ark ab le for one
of those w idespread, sw eeping h ail­
storm s like th e one of 1925 w hich,
sta rtin g in so u th east cen tral Iowa,
sw ept across Illinois and ended up in
K entucky; n o r th e one of 1932 w hich,
sta rtin g in South D akota, passed
t h r o u g h so u th e rn M innesota and
n o rth e rn Iowa, sw ept across Illinois,
passing ju s t n o rth of Chicago, ended
in L ake M ichigan. N or th e o th er pe­
riodical storm s w hich m ig h t be cited.
B ut th e re w ere alm ost countless sm all
storm s covering tw o or th re e or a
dozen tow nships, and literally ru in in g
th e crop in th e ir p ath, so th a t 1941
stan d s out as a severely destru ctiv e
y ear for h ailsto rm loss to farm ers.
Also, it w as a y e a r w hich aroused
the farm er and b ro u g h t hom e to him
th e n earn ess of th is m enace.
The state of Iow a is n o t th e state
w here th e w o rst n o r m ost severe dam ­
age is done, b u t it is alm ost in th e
exact cen ter of th e scope of these
storm s and th e abundance of its crops
m akes its loss fully equal to an y o th er
state. It w as of a cornfield n o t far
from H arlan , Iowa, th a t th e p hoto­
g rap h on th is page w as taken. T here
w ere probably a h u n d re d such fields
existed w h ere th a t sto rm hit, and it
w as considered only a sm all sto rm in
area.
Some of th ese storm s actu ally peel
th e b a rk from trees as m uch as six

inches through, and fifty feet high.
Some of th e th in g s th a t occur are al­
m ost unbelievable.
All the insurance com panies w ritin g
p rotection on grow ing crops w ill tell
you th a t th e dem and for hail in su r­
ance protection is alm ost u n p rece­
dented.
T he good prospects, the abundance
of m oisture, th e high prices, and th e
aid of th e governm ent has created an
u n usual in te re st in the crop.
W. A. R utledge, secretary of the
F a rm ers M utual H ail Insu ran ce Asso­
ciation of Iowa, w hich com pany is now
doing business in fo u rteen states, says
th a t th is in te re st is not confined to

The operator keeps up a continuous
proof, since she proves each individual
deposit as it is run. As a result, any
d ep artm en t desiring checks from th e
m achine m ay have them at th e end of
a proof of any deposit. If th e deposit
tick et is off balance, since each item
is listed in th e sam e order as on the
deposit ticket, th e errors, such as
listing incorrectly, addition, and m iss­
ing checks, are localized to th a t indi­
vidual deposit ticket, and all th e
operator has to do is check th e deposit
tick et back against th e m aster tape
to find th e error.
In th e case of th e operator m aking
a m istake in listing an item , she will
w rite th e am ount of th e e rro r on a
scratch pad and at th e end of th e day

SAME DAY SERVICE
for the ALLIED MUTUAL POLICYHOLDER
Policyholders p articularly appreciate the quick, conscientious,
fair-m inded m anner in which Allied M utual’s claim departm ent
functions when a claim develops.
Agents like this service, too, because it builds friends and
friends build business.
W orkm en’s Com pensation, P ublic Liability, and
Automobile Insurance

ALLIED

MUTUAL

c asualty c o m pa n y
H arold
DtS MOINES

y

H ubbell Bldg.

S. Evans, President
Des M oines, Iowa

Northwestern Banker

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

May 19k2

30
w ill correct th e m istake. F o r ex­
ample, if she lists an item on us tw o
cents long, she w ill w rite on th e pad,
“S ubtract tw o cents from co m p art­
m ent one.” W hen she to tals th e m a­
chine at night, she w ill m ake th e cor­
rections th a t she m ight have on th e
pad, and th e n th e m achine should be
in balance.
The average m achine o p erato r w ill
ru n about 1,200 item s an hour. In
our case th e o p erato r w ill average
appro x im ately 1,000 item s p er hour.
T he m achine is o perated about th re e
and a half hou rs a day and th e average
daily ru n is about 3,500 item s.
All in all, we believe th e m achine

has solved our problem in creating
accuracy and efficiency. It has w iped
out th e nervous stra in and tension of
th e bookkeeping d ep artm ent, and a
g reat deal m ore w o rk has been ac­
com plished in keeping all th e m iscel­
laneous filing and o th er duties of th e
d ep artm en t in good order. W e be­
lieve th e m achine has elim inated th e
services of about tw o employes.
The bookkeepers have expressed
them selves, since th e installatio n of
th is m achine, th a t th e ir w ork is really
p leasant and u n d er no circum stances
w ould th ey p erm it the m achine to be
rem oved.
A no ther im p o rtan t reason for select­

Why Vo People Buy Insurance?
So th a t th e u n e x p e c te d lo sses of th e few m a y b e
d is trib u te d a m o n g th e m a n y . T h e re 's o n ly o n e r e a l
test of a n y p o licy or c o m p a n y — w h a t h a p p e n s
w h e n th e loss o ccu rs.
E very five m inutes , d u rin g e v e ry d a y of e v e ry y e a r,
so m e S ta te A uto a d ju s te r p a y s a loss— and pays it
prom ptly, courteously and fairly.

surety Bono

ing th e In tern atio n al Machine, at least
from th e m anagem ent standpoint, is
because th ey are installed on a re n ta l
basis only, th erefore elim inating an
in v estm en t of approxim ately $3,000.
U nder th e ren tal term s, th e m achine is
serviced and kept in condition. Also,
any m echanical im provem ents w ill be
added w ith o u t any additional cost to
us — T H E E N D .

Sales Schools
The F a rm e rs M utual H ail Insu ran ce
Com pany last m onth held a series of
regional conferences and sales schools
th ro u g h o u t th e state of Iowa, and
m eetings w ere held also at E au Claire
and M adison, W isconsin.
The Iow a m eetings w ere held at
Cedar Rapids, W aterloo, M ason City,
M arshalltow n, Red Oak, Denison,
Sheldon, Storm Lake, and F o rt Dodge.
P rin cip al speakers a t these confer­
ences w ere P resid en t Carl P. Rutledge,
W. S. R utledge, tre a su re r and autom o­
bile d ep artm en t m anager, B ryan Con­
nell and J. D. M iller, b oth from th e
com pany’s hom e office in Des Moines.
Because farm prices are quite high
and heavy crop production is an tici­
pated, th is y ear F a rm e rs M utual H ail
officers re p o rt su b stan tial increase in
hail u n d erw ritin g .

One's Enough
A M issionary society m em ber ap ­
proached H enry. “We are h aving a
raffle for a poor w idow ,” she said.
“W ill you buy a tick et?”
“Nope,” said H enry, “m y wife w ould
not let me keep h e r if I w on.”

Division

Through affiliation with the Mutual
Surety Company of Iowa, a Surety Bond
Division has been added to State Auto
service. Right-now service upon all
types of Fidelity and Surety Bonds at
competitive rates, with Russell F. Lundy,
president of the Mutual Surety Company,
of Iowa and vice president of State
Auto, in charge.

THE STATE flUTOmOBILE
insuRuncE nssocmnon
Des Moines, Iowa

Des Moines, Iowa

BANKER
AGENTS
WANTED
T h e old est m utual com p an y o f its
kind in A m erica offers liberal
a g e n c y con tracts c overin g—
•

AU TO IN S U R A N C E

•

TORN AD O IN S U R A N C E

•

TOWN D W E LL IN G IN S U R A N C E

•

H A IL IN S U R A N C E
on G rowin g C r o p s

O ver $1,250,000 cash surplus—

1941 Premiums Over $1,800,000
L egal R eserve— A ll P o lic ie s N on assessab le

N orthwestern Banker

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

May 19^2

49 years of proven protection.
W rite fo r our lib e ra l p roposition to
bank rep resen tatives.

31

Short Term

G0 V6 tfltï]6fltS

for Banks

A . B. A . Has Recommended New Securities of One to Ten
Years Maturity Range

NOT all the n ew s
in A pril w as had—
hut the stock m ar­
k et looked upon it
as such. A nd the
m arket broke m ore
t h a n five points.
T his is especially
d isturbin g to hold­
JA M ES H. CLAR KE
ers of stock s, as
th is has been the
trend for m onths— in fact, if you d is­
regard som e fu tile rallies, stock s have
gone dow n sin ce Septem ber, 1939. B ut
A pril, 1942, proved to be one of the
w orst m onths in the lon g decline—and
the Aveakness appeared after n um er­
ous exp erts had pointed out that the
w orst w as over—th at the m arket had
discounted all th e bad n ew s.

Som e reports during the m o n th m ade
good reading. T he severe R. A. F. raids
on G erm any and the in d u stria l tow ns
of occupied countries w ere heartening.
The settin g up of a unified com m and in
A ustralia u n d er M acA rth u r — our
bom bing of Jap-held bases in the P h il­
ippines and th e m o st sensational of
all, the Jap reports th a t our air force
had bom bed T okyo, w ere good and
sufficient reasons fo r som e cheerfu l­
ness. T hen, of course, there w ere the
usual reports of u n re st fro m N o rw a y
to Greece, and H itler’s speech to the
R eichstag w as less confident. A n d our
ow n production of w a r m aterials is
really rolling.
B ut th e re w as new s w hich h u r t—
B ataan, a fte r m o n th s of g allan t de­
fense, suddenly fell on A pril 9th and
th e m a rk e t staggered u n d e r th e w eig h t
of it. L aval re-entered th e F re n c h cab­
in et on th e 14th — and again stock
prices w eakened. B rief re p o rts of th e
P re sid e n t’s m essage to Congress h it
W all S treet on th e 23rd—and th e spec­
tre of h ig h er tax es and low er profits
caused th e biggest b reak in w eeks.
The Ja p s continued th e ir m arch into
B u rm a and it w ill probably be th e 15th
of M ay before th e ra in s come—th e
only real help th a t E n g lan d an d China
can expect to offset th e N ipponese
stre n g th in th e air. B its of bad new s
such as th ese—plus th e gen eral confu­
sion in dom estic affairs d u rin g w a r
tim es—k e p t in v esto rs upset.

The Month's Market Maneuvers
Prepared for
The Northwestern Banker

By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Chic ago

We are w ritin g th is on T uesday
m orning, A pril 28th—to m eet our dead­
lin e— so w e sh all m iss the la st three
days of the m arkets for th e m onth.
W e sh a ll probably not see m uch
change in the basic trend, how ever, in
that sh ort period.
So fa r th e r e h a v e b een tw e n ty -tw o
d a y s o f tr a d in g , tAvelve in w h ic h lo s s e s
Aver«' reco rd ed — n in e AA'here g a in s Avere
sco red , a n d o n e w h e r e n o p e r c e p tib le
c h a n g e o c cu rred in in d u s tr ia l a v e r ­
a g e s. F o llo w in g th e d e c lin e s r e p o rted
in M arch , th e A p ril lo s s e s w e r e u n e x ­
p e c te d ly h e a v y in c e r ta in sto c k s.
A m e r ic a n T el. & T el., th e b lu e s t o f th e
b lu e c h ip s, c lo se d a t 106 y e ste r d a y (is
r e p o r te d a t 104 in th is m o r n in g ’s tr a d ­
in g ) — off te n p o in ts d u r in g th e m o n th
— E a stm a n K od ak Avas doA\Tn n in e
p o in ts d u r in g th e sa m e p erio d . S o m e
sto c k s, h o w e v e r , h a v e d o n e r e la tiv e ly
w e ll— n o ta b ly th e m o to r s an d th e ru b ­
b e r s w h ic h to o k su ch a h e a tin g in th e
s e llin g in D e c e m b e r . T h u s, w h ile th e
tr e n d h a s b e e n sh a r p ly d o w n w a r d ,
th e r e h a s b e e n so m e s e le c tiv ity in th e
m a rk et.

B onds in general w ere som ew hat
easier in A pril— although the softness
in m unicipals did not appear u n til late
in the m onth. The announcem ent of
$4,000,000,000 of n ew go vern m en t finan­
cing in the offing in M ay and June has
been a contributing factor to the m od­
erate d o w ntrend in go vern m en t prices.
T he long 2 V2 S of 1972 w h ich w ere sell­
ing at 101.4 on M arch 31st are quoted
100.20 this m orning— this is one exam ­
ple. In the face of large go vern m en t
borrow ings— ru n n in g at a rate of three
and a half to fo u r billion dollars a
m o n th a fter Ju n e 30th— this includes
w a r bond sales and other special
m o n ey raising m eans in addition to

public financing— it is n o t to be ex­
pected th a t govern m en t bond quota­
tions w ill im prove. B u t this is a m a t­
ter of only academic in terest to bank­
ers w ho are com m itted to a program
of buying and holding g o vernm ent
bonds.
M unicipal bonds w ere stro n g er for
th e first tw o or th ree w eeks of April,
b u t th e m ark et has become spotty
m ore recently. The discussions of gas­
oline ratio n in g had fu rth e r depressing
effects on roadw ay, toll bridge and
sim ilar projects. The P re sid e n t’s m es­
sage of y esterd ay w hich again m en­
tioned th e tax in g of m unicipal issues
also h u rt. Thus, afte r a recovery w hich
lasted over a m onth, w eakness has
again appeared—especially in revenue
bonds. P enn sy lv an ia T u rn p ik e 3%s
quoted 85 bid, and T riborough Bridge
S ^ s at 79 bid have acted v ery badly.
C orp orate b o n d s h a v e b e e n s lig h tly
e a sie r — th e o n ly la r g e o fferin g d u rin g
th e m o n th b e in g $100,000,000 A m erica n
T o b a cco 3s d u e in tAventy y e a r s. E a st
F r id a y , th e o ffe r in g d ay o f th e is su e ,
sa le s A\rere rep o r te d a t 101 Vi a g a in s t
an is s u e p rice o f p ar— to d a y (T u e s­
d a y ), hoAvever, d e a le r s qAiote th e b o n d s
p a r b id an d p a r a n d o n e-q u a rter a sk ed
— so th e p r e m iu m fa d ed aAvay in a
h u r r y . A t th is w r itin g , th e r e are n o
la rg e b its o f neAV co rp o ra te fin a n cin g
o n th e h o riz o n .

W h a t course or courses the n ew gov­
ern m en t financing w ill take is still a
m a tte r of great conjecture. N aturally
the T reasury is still anxious to place
a large part of its debt in hands other
than those of banks. The Federal R e ­
serve Board has recom m ended to the
T reasury certain changes, one of
w h ich suggests som e variations so that
registered issues m ig h t be sold, and
th a t instead of v e ry long and ve ry
short issues — securities va rying be­
tw een tw o and ten years be offered.
The board’s suggestion is th a t in stitu ­
tional and corporate savings should be
tapped by the T reasury by m eans of
these registered issues, unavailable to
com m ercial banks. T h en the A. B. A.
has recom m ended to the T reasury that
it should issue to the banks n ew securi­
ties w ith m a tu rities ranging fro m one
Northwestern Banker


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

May 19f2

32
to ten years— the T reasury is said to
be th in k in g over this suggestion. In
any event, the current outlook appears
to be fo r short and m ed iu m term bonds
fo r com m ercial banks.
W hile bonds in general and g overn­
m en t obligations in p a rtic u la r m u st be
of p aram o u n t in te re st to b a n k e rs—th e
c u rre n t w eakness in stock prices is
g ettin g th e headlines. T his m orning,
a fte r one h o u r of trad in g , th e DowJones in d u strial averages stan d at
93.47—com pared w ith 99.53 a t th e first
of th e m onth. T he continuous down
tre n d since Septem ber, 1939, has tak en
prices dow n over six ty poin ts—about

40 p er cent. Those w ho expected to
get rich in a w ar m a rk e t overlooked
th e fact th a t n eith e r th e people nor
th e ad m in istratio n favor such a devel­
opm ent—and taxes upon taxes are pro­
viding th e brakes.

Mid-Continent
Regional Conference
The eighth an n u al M id-Continent
R egional Conference of th e N ational
A ssociation of B ank A uditors and
C om ptrollers w ill be held in K ansas
City on May 21 to 23. T hursday, May
21, has been set aside as the day to
v isit local banks, for reg istration, and

for th e general reception of conven­
tion visitors. T he rem ain d er of th e
program is as follows:

Friday, May 22
9:00 a. m.
Convocation.
Call to O rder—Mr. E. G. A rm strong,
general chairm an.
Invocation.
A ddress of W elcom e—Mr. C. W.
A llendoerfer, President, F irs t N ational
Bank, K ansas City, Mo.
Response—Mr. E rn e st T. T anner,
A uditor, F irs t N ational B ank of Oma­
ha, Omaha, Neb.
“The A lternative M ethods for th e
A llocation of G eneral A dm inistrative
or ‘O verhead’ E x pense”—Mr. Jo h n G.
Blocker, P rofessor of A ccounting,
C hairm an of th e A ccounting D epart­
m ent, U niversity of K ansas School of
Business, Law rence, K ansas.
“The Use of G raphs and C harts in
A dm inistrative R ep o rts”—Mr. O. A.
Leam on, Com ptroller, F o u rth N ational
B ank in W ichita, W ichita, K ansas.
“A udit and Control of th e B an k ’s
S ecurities”—George J. R uhlm an, A udi­
tor, H ibernia N ational Bank, New
Orleans.

Afternoon Session

calls for full speed ahead —
in the production of materials needed
by our armed forces. Our steel mills,
factories, shipyards are building the
weapons and warcraft for use in the
air, on land and sea. From our farms,
groves, ranches come ever-increasing
quantities of dairy products, vege­
tables, fruits, meats, cereals, oils—food
to sustain the United Nations at war.
Local lending institutions contribute
materially to the war effort by help­
ing to finance expanding agricultural
V ICTO RY

activities.
In this process, notes —
endorsed by commercial banks, agri­
cultural credit corporations, livestock
lo an co m p an ies, production credit
associations, banks for cooperatives
— are rediscounted by the Federal
intermediate credit banks.
These twelve banks obtain required
funds by the sale of their consolidated
debentures — thereby en­
listing private investment
cap ital, throughout the
land, in the common cause.

THE F ED ERA L I N T E R M E D I A T E CR EDIT B A N K S
SPRINGFIELD, MASS.

LOUISVILLE, KY.

ST. PAUL, MINN.

BALTIMORE, MD.

NEW ORLEANS, LA.

OMAHA, NEB.

HOUSTON, TEX.
BERKELEY, CAL.

COLUMBIA, S. C.

ST. LOUIS, MO.

WICHITA, KAN.

SPOKANE, WASH.

F u r t h e r i n f o r m a t i o n r e g a r d i n g th e D e b e n t u r e s m ay be o b t a i n e d fro m

CHARLES R. DUN N, Fis ca l A g e n t

Northwestern Banker

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

May 1942

31 Nassau Street, New York, N. Y.

1:30 p. m.
“ ‘Y ardsticks’ for M easuring Efficien­
cy in O perations”—Mr. E. L. Stucker,
Cashier, N ational B ank of Tulsa, Tulsa,
Oklahoma.
“B reaking Old T rad itio n s”—A R ound
Table discussion on b ank operating
m ethods and problem s. L eader—Mr.
Jack Flem ing, A uditor, N ational B ank
of Commerce, H ouston, Texas. (The
m em bers of th is R ound Table and the
subjects for discussion w ill be an ­
nounced later.)
6:00 p. m.
Reception.
7:00 p. m.
B anquet—T oastm aster, Mr. E. G.
A rm strong, Com ptroller, Commerce
T ru st Company, K ansas City, M issouri.
“Some Problem s for th e B ank Comp­
tro lle r”—Mr. B enjam in E. Young, Vice
P resident, N ational B ank of D etroit,
D etroit, Michigan.

Saturday, May 23, 1942
Morning Session
9:00 a. m.
“Conversion of F u n d s C ontrol”—Mr.
A. P au l Thom pson, A uditor, C entral
N ational Bank, Cleveland, Ohio.
“A udit and C ontrol of P ersonal T ru st
A ccounts”—Mr. Louis R. Engel, A udi­
tor, M ississippi Valley T ru st Co., St.
Louis, M issouri.
“M eeting W artim e Problem s of B ank
M anagem ent”—Mr. Louis H. H am m erstrom , A uditor, C ontinental Illinois
N ational B ank and T ru st Company,
Chicago, Illinois.
12:00 Noon
Luncheon.

33
p resen t th e clearest and m ost construc­
tive explanation of our personnel prob­
lem .”

Service Pictures
A m ost in te re stin g v a ria tio n of th e
“service flag” or h onor roll, w ith w hich
business o rganizations have been h o n ­
orin g th e ir em ployes w ho have en tered
U nited States m ilita ry service, has
been developed by The F irs t N ational
B ank of St. Paul, M innesota. F eeling
th a t a service flag w ith plain w h ite
sta rs w as a ra th e r m u te and im p er­
sonal trib u te, and th a t a m ere listing
of nam es also left m uch to be desired,
th e F irs t N ational h it upon th e idea of
placing th e p ictu re of one of its service

h onor roll should be displayed in th e
arcade, w here th e larg est possible
nu m ber of people w ould see it. Id en ­
tify ing th e sta rs by including both
nam es and p o rtra its is a logical ex ten ­
sion of th is idea. The display already
has elicited m uch favorable com m ent
from relatives and friends of th e m en
included. W e feel, too, th a t should fu ­
tu re developm ents force some devia­
tio n from our p resen t stan d ard s of
custom er service, th e honor roll w ill

F. A . A . in Chicago
V ictor Cullin, presid en t of th e F in a n ­
cial A d vertisers A ssociation, has a n ­
nounced th a t its m em bers w ill get to ­
g eth er for a clinic for th e 27th y ear
in Chicago a t th e E dgew ater Beach
H otel on October 26th, 27th and 28th.
L. E. Tow nsend, vice presid en t of
th e association and a ssistan t vice p res­
ident of th e B ank of Am erica, San

BONDS
Public Utility
In dustrial
R a ilro a d
M unicipal

A.C.ALLYNandc o m p a n y
In corp orated
100 W e s t M onroe S tr e e t, C h ica g o

m en in each one of th e stars. E ach
sta r m easures four inches from tip to
tip, and is identified by th e nam e of th e
individual pictured, clearly p rin te d be­
low. T his three-dim ensioned honor
roll is placed in a cen trally located dis­
play w indow a t th e in tersectio n of th e
b an k b u ild in g ’s stre e t floor arcades,
w h ere it has been view ed by fellow
em ployes and th e public standing
“th re e deep” d u rin g h o u rs of heavy
traffic.
W hite sta rs and nam es are placed on
a th re e by five foot F ed eral blue panel,
and are arran g ed in row s of eight,
th e ir positions determ in ed by th e date
on w hich th e staff m em ber en tered his
n a tio n ’s service. The sixty-tw o sta rs
sh in in g on th e panel w h en it w as
placed on public view included em ­
ployes and officers from th e b an k itself
and th re e affiliates w hich also occupy
space in th e building.
In discussing th e o rigination of th is
u nique h onor roll, J. A. Oace, vice p re s­
id en t of th e bank, said, “Our first idea
w as a service flag to be h u n g in our
m ain b an k in g room. F u rth e r consid­
eratio n convinced us th a t th e em ployes
and officers of our affiliates should be
included in th is trib u te, and th a t th e

N e w Y ork
R e p r e s e n t a t iv e s !

M ilw a u k e e
W a te r lo o

O m aha
D e s M oin es

B o sto n
C edar R a p id s

Federal Home Loan Bank of Des Moines
Des Moines, Iowa
STATEMENT OF CONDITION APRIL 1, 1942
R E SO U R C E S
A dvances to M em bers........................................................................................................ $14,954,458.26
U . S. G overnm ent O bligations and Securities fu lly g u a ra n te e d by U . S ... 3,371,937.77
15,512.16
A ccrued In te re s t R eceivable.........................................................................................
9,620.26
D eferred C harges an d O ther A sse ts..........................................................................
Cash ......................................................................................................................................... 6,876,741.24
$25,228,269.69
L IA B IL IT IE S AND C A PIT A L
C ap ital Stock S u b s c rip tio n s ......................................................................................... $10,414,550.00
13,000,000.00
«D ebentures O u ts ta n d i n g ...............................................................................................
1,498.43
P rem iu m s on D e b e n tu re s...............................................................................................
801,562.57
D e p o sits— M em b ers an d A p p l ic a n t s .............................................................................
70,651.71
A ccrued In te re s t P a y a b le ...........................................................................................
S u rp lu s:
R eserves ..............................................................................................$654,119.99
940,006.98
U ndivided P r o f i t s ............................................................................. 285,886.99
$25,228,269.69
« P a rtic ip a tio n in $101,500,000.00 consolidated F ed eral H om e L oan B an k d ebentures o u t­
stan d in g , w hich a re th e jo in t and several oblig atio n s of th e tw elve F e d e ra l Home
L oan B anks.

N orthw estern Banker

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

May 1942

34
Francisco, w ho is general ch airm an of
th e convention th is year, states, “W ar
tim e is no tim e for en tertain m en t, golf
to u rn am en ts or o th er u su al convention
diversions. W hile th e F in an cial Ad­
v ertise rs A ssociation C onventions in
the p ast have been sessions of study
and w ork, in tersp ersed w ith a lim ited

am o u nt of en tertain m en t, th is y ear the
en tire th ree day program w ill get rig h t
dow n to real clinics and conferences
w h ere m en w ork w ith feverish heat
and produce resu lts.”
Guy W. Cooke, a ssistan t cashier of
th e F irst N ational B ank of Chicago, is
gen eral chairm an of th e Chicago group
to m ake all th e local arran g em en ts for
th e convention.

Assistant Vice President

STATE

T he M ercantile-Com m erce B ank and
T ru s t Company, St. Louis, has a n ­
nounced th e election of F ra n k J. Sain
as a ssistan t vice president. F o r the
p ast ten y ears Sain has been associated
w ith the St. Iouis office of th e Recon­
stru ctio n F inance C orporation, having
been m ade a ssistan t m anager in 1937,
and in active charge of th e office since
1940. P rio r to his RFC connection,
Sain has had some 15 y e a rs’ experience
in th e field of b an king w ork. He w ill
be connected w ith th e loaning division
of M ercantile-Com m erce and w ill take
up his new duties about May 1st.

AND

M U N ICIPA L

BONDS

Over-Counter Facilities
in All Markets

WHEELOCK & CUMMINS
I n c o r p o r a te d

Primary Markets in Iowa
Securities

McGuire, Welch it Co.

2 0 0 E q u ita b le B ld g.
P h o n e 4 -7 1 5 9

Bankers Trust Bldg.
DES MOINES

D E S M O INES

Out-of-Town Banks
O ut-of-tow n banks and bankers w ill find here
com plete banking fa cilities for prom pt and
economical handling of accounts in Chicago. We
would appreciate the opportunity of serving you.

C it y N ational B ank
A NO

TRUST

2 0 8

S O U T H

COMPANY

of Chi c a g o

L A S A L L E

(Member Federal Deposit Insurance Corporation)

N orthw estern B anker

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

May 19 Ï2

S T R E E T

National Conference
Recognizing th a t the n atio n ’s w a r­
tim e needs and problem s tran scen d all
o th er in terests in tim es like these, th e
A m erican B ankers A ssociation w ill
hold a N ational Conference on W a r­
tim e Finance in D etroit n ex t Septem ­
ber, in place of its an n u al convention,
it w as decided by th e executive council
of th e association a t its an n u al spring
m eeting here today. T he dates w ill be
Septem ber 28th-30th.
T he plan contem plates an intensive
shirt-sleeves conference on all phases
of w artim e finance in w hich field of
activ ity th e banks w ill m ake th e ir
g reatest co n tribution to th e w ar effort.
L eaders from banking and g overn­
m en t alike w ill be in atten d an ce to
co n trib u te to its deliberations and dis­
cussions.
The program w ill be cut dow n by a
day and a half. W hereas th e conven­
tion has in th e p ast ru n from M onday
m orning to T h u rsd ay night, th e con­
ference on w artim e finance w ill con­
clude at noon on W ednesday. E n te r­
tain m en t w ill be elim inated. T he usual
golf to u rn am en t w ill be om itted. A nd
th e in au g u ratio n of new officers of
divisions and of th e association itself
w ill take place a t th e close of th e final
session W ednesday m orning. As p a rt
of th e conference, it is hoped th a t an
o p p o rtu n ity w ill be given to th e dele­
gates to see som ething of th e operation
of w ar p lan ts in th e D etroit area.
A new type of m eeting for ban k ers
w ill be u n d ertak en on Sunday evening,
Septem ber 27th, preceding th e opening
of the conference. T his w ill tak e th e
form of an in sp iratio n al m eeting w ith
a background of A m erican m usic and
an address by an insp iratio n al speaker
of note. Com m ittee m eetings w ill be
held all day Sunday.
It is not contem plated th a t th e es­
sential business of the association w ill
be restricted. The five divisions, n a­
tional bank, state bank, savings and
tru s t divisions, and th e state secre­
taries section w ill have th e ir business
m eetings on th e first day, and th e b u si­
ness m eetings of th e association itself
w ill be held on th e m ornings of the
second and th ird days. The rem ain d er
of th e tim e w ill be devoted to clinic
sessions on w artim e b ank operations,
policies and service to th e public and
th e governm ent.
In announcing th e action of th e asso­
ciation’s executive council, H en ry W.
Koeneke, A m erican B ankers Associa­
tion president, said, “T hese a rra n g e ­
m ents recognize th e heavy bu rd en
restin g upon b an k ers as a re su lt of th e
w ar and th e im portance of not tak in g
th em aw ay from th e ir desks for a
period longer th a n is necessary. At

35
th e sam e tim e th e y recognize th e
n ecessity for counsel and conference
on th e n a tio n ’s needs and th e w ays in
w hich th e b an k in g system can serve
those needs.”

C arl Trout Dies
Carl T rout, w ell-know n and p opular
a ssista n t vice p resid en t of th e Live
Stock N ational B ank of Chicago, died
recen tly of a h e a rt atta c k a t his hom e
in La G range, Illinois.
Mr. T ro u t w as w ell-know n to h u n ­
dreds of Iow a bank ers, w as 54 y ears
of age, and had been fo rm er Iow a

PROLONG THE LIFE
OF YOUR
BURROUGHS MACHINES
W ITH B U R R O U G H S
M ECH AN ICAL S ER V IC E

OHU

B U R R O U G H S M E C H A N IC A l SERVICE
G IVES Y O U THESE A D V A N T A G E S

, Burroughs mechanical
' by factory-trained and "
salaried representatives whose
is guaranteed by Burroughs.
2

^

„
“

service p o in t has gen u in e
s to nteet any serv ice need
,

3 “

work

prvice is n ation al, co n v en ien tly
o g iv e prom pt, efficient atten tion to

every call.
u
ah s service m en are p rom ptly and

4 All Burroughs set

every improvement in

fully in fo rm ed » b o u
1
service, every new m acni
m ech a n ica l ch an ge.

^

and every

CARL T R O U T

D eputy S tate B anking S uperin ten d en t.
F u n e ra l services w ere held at N ew ­
ton, Iowa, S aturday, M ay 2nd.
Mr. T ro u t h ad alread y m ade re se rv a ­
tio n for th e Iow a G roup M eeting T rain,
to cover th e m eetings from M ay 12 to
M ay 22.
S urviving him are his widow; one
d au g h ter, Mrs. F re d M. L orenz of Des
M oines; a son, Carl T rout, Jr., of F r e ­
m ont, N ebraska; tw o sisters, Mrs. C lar­
ence Tool and Mrs. R obert B u tin of
R easnor, Iowa; and tw o b ro th ers, Roy
T ro u t of B urlington, Iowa, and Basil
T ro u t of F resno, California.

T he accessibility o f experienced Burroughs service
men . . . the quality o f their w ork . . . their eagerness
to do a g o o d job . . . all are major factors in h elp in g
Burroughs users to keep their m achines in un­
interrupted op eration — get m ore and better w ork
out o f them — and greatly p ro lo n g their life.
For com plete inform ation, telephone your local
Burroughs office, or w rite direct to —
B U R R O U G H S A D D IN G M A C H IN E C O M P A N Y
D E T R O IT , M IC H IG A N

Telephone Director
W a lte r W. Sm ith, president, F irs t
N ational B ank in St. Louis, w as elected
a d irecto r of th e S o u th w estern Bell
T elephone C om pany a t a m eeting of
stockholders held recently.

Burroughs
N orthw estern Banker


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

May 1942

36
■*

■ V

m

'ÊÊÊÊmm

.

» * & & £

lw

m

I

m W * -*

m

-

~

•

p --* »

■,

-

•* i..........1 ' *

F fX s tlH y e S 'V

Vf *■■•’î>h■
fÆ« P * ' ‘ V>
<.4 ■%

Food Will Help Win the War

H o m e o f th e N o r th w e s te r n
N a tio n a l B a n k a n d T r u s t
C o m p a n y ---- i n t h e f i n a n c i a l
c e n te r
o f M in n e a p o lis —
w h e re h ig h ly tr a in e d s p e ­
c ia lis ts
in
correspondent
b a n k in g s e r v ic e a r e r e a d y
to s e r v e y o u .

P roduce, P roduce, P roduce ! —
that is th e w atchw ord o f th e fa rm ers
o f th e N orth w est tod ay, as th e y jo in
th e “ F o o d fo r F r e e d o m ” p rogram o f
th e U n ited States D ep a rtm en t o f
A g ricu ltu re.
M ore im p o rta n t th an ev er th is
year, is th e s e le c tio n o f g o o d seed
fo r a ll p la n tin g o p e r a tio n s. S u ccess
in th e “ F o o d fo r F r e e d o m ” p rogram

d e p e n d s greatly o n g o o d seed .

We

th e r e fo r e u rge c o o p e r a tio n b etw een
b an k ers an d fa rm ers in p r o m o tin g
th e s e le c tio n o f b etter seed grain s.
W e are in te r e ste d in c o o p e r a tin g
w ith ou r c o r re sp o n d en t b an k s in
a ssu rin g th e su ccess o f th is p rogram .
W e in v ite b an k s to m a k e f u ll u se o f
ou r c o m p le te fa c ilitie s .

USE "NORTHWESTERN" SERVICES
D ep a rtm en t o f Banks and B ankers
W m . N. J o h n so n
Vice P r e s i d e n t

F. W . C onrad
Asst. Vice Pres.

D . E. C rouley
Asst. Cash ier

L. P . G isvold
Asst. Cash ier

N O R T H W E S T E R N N A T IO N A L B A N K
AND T R U ST C O M P A N Y
S ix th to S e v e n th S tr e e t on M a rq u e tte A ve.
M in n ea p o lis, M innesota
M e m b e r F e d e ra l D e p o s it In su ran c e C o r p o ra tio n
Northwestern Banker

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

May 1942

37
Peyton, all of D uluth, and Jo h n Pey­
ton, St. Paul, and th ree sisters-in-law,
th e M isses M artha and Alice P eyton
and Mrs. Jam es H u n ter, all of D uluth.

M IN N E S O T A

Elected to Bank Board

NEW S
O. G. J O N E S
P re s id e n t
R ed W in g

Banks Show Increase
E v e ry b àn k in F a rib a u lt county
show ed a su b sta n tia l increase in re ­
sources d u rin g th e last three-m onth
period, according to a su m m ary of th e
published re p o rts of these banks.
On J a n u a ry 15th, w ith th e re p o rt of
one b an k m issing, th e to tal resources
of the county financial in stitu tio n s w as
$8,492,050.39, w hile last m onth, w ith
th e re p o rt of one of th e sm aller
b an k s also m issing, th e county total
am ounted to $8,863,292.25, indicating
an increase in assets of approxim ately
$370,000.
The Blue E a rth State B ank heads
th e list as fa r as to tal resources are
concerned, w ith th e F irs t and F a rm e rs
of Blue E a rth second and th e F irs t
N ational of K iester a close th ird .

W IL L IA M DUNCAN, J r .
S ecretary
M inneapolis

ag ainst loss up to $5,000 each by the
in surance corporation, as in stru m e n ­
ta lity of th e U nited States governm ent.

Jasper Team Wins
The Jasp er B an k er’s bow ling team
sponsored and captained by Ted Arp,
p resid en t of th e Jasp er State Bank,
Jasper, M innesota, w alked aw ay w ith
th e P ipestone R ecreation S traig h ta­
w ay League C ham pionship for the
second successive year. T hey have a
rem arkable record d uring th is period,
w inning 134 gam es and losing only
28, all com petition being from scratch.
H igh team to tal w as 2,852, w ith high
single gam e of 1,057 actuals, Mr. A rp
h aving high single gam es of 242 and
243.

Prominent Banker Dies
Cashier G ets Three Years
Olaf A. Olson, 58, cashier of th e P al­
isades, M innesota, S tate B ank, w ho
w as accused of ta k in g $85,000 from
th e b an k in eight years, faces a threey e a r p riso n term . Judge George F.
Sullivan pronounced th e sentence last
m onth.

Make Large Home Loans
M innesota’s in su red savings and
loan associations m ade hom e loans
to talin g $436,300 d u rin g F eb ru ary , Os­
car R. K reutz, general m an ag er of the
F ed eral Savings and L oan In su ran ce
C orporation, announced recen tly in
W ashington.
The sam e group of associations
m ade loans am o u n tin g to $580,600 in
J a n u a ry and $864,913 in F eb ru ary ,
1941. H om e m ortgage loans on th e
books of th e 34 in su red associations in
M innesota now aggregate $60,806,400.
Mr. K reu tz said d u rin g F eb ru ary ,
$131,900 in loans w ere m ade on new
construction. H om e pu rch ase loans
am ounted to $131,000 and those for re ­
conditioning $34,300.
D uring F eb ru ary , th e public placed
$1,229,500 of new savings in th e in ­
su red associations, b rin g in g th e total
of such in v estm en ts to $49,690,100. The
association’s in v esto rs are protected

Algot W. Swanson, 58, pro m in en t
Cannon Falls resid en t w ho had been
identified w ith th e banking business
th e re th e p ast 41 y ears and w ho held
th e office of vice p resid en t of th e F irst
N ational Bank, died at his hom e last
m onth.

New "After Hour"
Depository
The G rand R apids State B ank has
ju s t com pleted th e in stallation of a
new “after h o u r” depository system
for th e accom m odation of business
concerns and individuals w ho w ish to
be rid of th e responsibility of keeping
m oney in th e ir possession over n ight
or over w eek-end and over holidays
w hen th e b an k is closed and cannot
receive deposits in the reg u lar way.

The Buffalo N ational B ank an ­
nounces th e election of George G ilbert,
pro m in en t farm er of R ockford to w n ­
ship, W rig h t County, to the board of
directors.
O ther m em bers of th e board are O.
W. L u ndsten of Excelsior, C. N. Lundsten of Delano, Glen Sw enson and M.
L. L u nsten of Buffalo.

Clearing House Meeting
A rth u r Reynolds of St. Paul, col­
lector of U nited States in tern al rev ­
enue and state a d m in istrato r of th e
federal w ar savings bond program ,
w as th e principal speaker at th e jo in t
m eeting of th e Red R iver V alley and
N orthw est Clearing H ouse Associa­
tions held in T hief R iver F alls re ­
cently.
The m eeting opened w ith a d inner at
six o’clock, following w hich Mr. R ey­
nolds spoke. Also a speaker w as Otis
P resto n of th e M inneapolis F ederal
R eserve Bank.
In addition to th e b an k er m em bers,
th ere w ere p resen t at th e session m em ­
bers of th e w ar bond com m ittees in
the various counties, as w ell as W ill­
iam D uncan, secretary of the M inne­
sota B ankers Association.
E. O. P eterso n of T hief R iver Falls
is p resid en t of th e N orthw est Clearing
H ouse A ssociation, w hile W illiam Ericson of C rookston heads th e Red R iv­
er Valley group.

"Million Dollar" Bank
A chievem ent of th e cherished dis­
tinction of being a “m illion dollar
b a n k ” w as announced recently by of­
ficers of the F irs t N ational B ank of
Bloom ing Prairie.
Total footings of th e ban k w en t over
th e m illion dollar m ark by several
thousand dollars—th u s p u ttin g th e in ­
stitu tio n in th e m illion dollar class
for th e second tim e in th e b a n k ’s 67
y e a rs’ of faith fu l service to this com­
m unity.
A m illion dollar footing w as also
enjoyed by th e b ank at one tim e about
twenty-five y ears ago.

Retired Banker Dead
R ussell B axter, 81 year old, ow ner
of th e b an k at Lake Nebagam on, W is­
consin, for tw enty-five y ears before he
re tire d five y ears ago, died recently in
a D uluth hospital. He had lived in
H otel D uluth for th e last tw o years.
B efore opening th e b ank a t Lake Ne­
bagam on he resided in Superior. S ur­
viving are four brothers-in-law , W. R.
Peyton, B. M urray P eyton and H. H.

"Bright" Business Spot
W inona, w ith a 30 p er cent increase
in volum e of b ank debits for th e first
q u a rte r of 1942 over th e sim ilar period
of 1941, w as classed as one of th e
“b rig h t” business spots in th e N o rth ­
w est in a rep o rt released by th e F ed ­
eral R eserve B ank of M inneapolis.
The total dollar volum e for the
period w as $23,789,000, com pared w ith
Northwestern Banker


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

May Í9b2

38

• MI NN ESOTA NE WS *
$18,289,000 for th e first th re e m o n th s
of 1941. T he M arch figure w as $8,155,000 com pared w ith $6,395,000 for
M arch, 1941, or a 28 p er cent increase.
R ochester show ed an increase of
nine p er cent for th e first th re e
m onths, E au Claire eight p er cent and
La Crosse 11 p er cent. T he M ankato
increase w as 19 p e r cent.
T he debits rep o rted from Lanesboro
for th e three-m o n th period w ere six
p er cen t h ig h e r th a n for th e first th re e

C

m o n th s of 1941, th e to tal period debits
th e re being $603,000 and $567,000.

action. T hom son is presid en t of N o rth ­
w est B ancorporation.

Heads Relief Fund Drive

Elected Assistant Cashier

J. C am eron Thom son, M inneapolis,
recen tly w as appointed by S ecretary
K nox as ch airm an of th e $102,000 M in­
nesota navy relief fund drive.
The M innesota cam paign w ill be
p a rt of a nation-w ide solicitation for
$5,000,000 to aid su rvivors and depend­
en ts of n avy m en killed or in ju red in

Miss M ary L ushene, form erly of
E v eleth and form er com m ercial teach ­
er in th e A urora high school, has been
elected a ssistan t cashier of th e A u­
ro ra S tate Bank. Miss L ushene began
h er duties at th e ban k last m onth.

o n t in e n t a l

N
and

I l l in o is

a t io n a l

Ba nk

T

om pany

r ust

C

Statement of Condition, A pril 4, 1942
RESO URC ES
Cash and Due from B a n k s.................................... $ 722,448,131.87
United States G overnm ent O bligations,
D irect and F ully G uaranteed...........................
730,752,296.50
Other Bonds and S ecu rities..................................
79,589,139.76
Loans and D iscou n ts................................................
286,385,806.90
Stock in Federal Reserve B an k .........................
3,000,000.00
C ustom ers’ L iability on A c ce p ta n ce s..............
795,947.85
Income A ccrued but N o t C o llec ted ..................
3,662,738.27
Banking H o u s e .........................................................
11,925,000.00
Real Estate O wned other than Banking H ouse
1,822,916.35
$1,840,381,977.50

l ia b il it ie s
D e p o s its....................................................... $1,701,347,123.86
A c c e p ta n c e s...............................................
849,366.13
Reserve for T axes, Interest and E x p e n s e s .. . .
6,635,483.52
Reserve for C o n tin g en cie s...................
17,223,907.22
Income C ollected but N o t Earned....
531,280.89
Com m on S to c k ..........................................
50,000,000.00
Surplus..........................................................
50,000,000.00
Undivided P rofits.....................................
13,794,815.88
$1,840,381,977.50

U n i t e d S t a te s G o v e r n m e n t o b lig a tio n s a n d o t h e r s e c u r i ti e s c a r r ie d
a t $229,671,450.30 a r e p le d g e d to s e c u r e p u b lic a n d t r u s t d e p o s its
a n d f o r o t h e r p u r p o s e s a s r e q u i r e d o r p e r m i tt e d b y law

Member Federal Deposit Insurance Corporation


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

May Í94-2

New em ployes a t th e S tate B ank of
Mora, replacing th e five young m en
w ho recen tly enlisted in th e arm ed
forces of our country, are R obert Nikodym and Miss V irginia Nelson, w ho
w ill w ork in th e bookkeeping d ep art­
m ent, and Miss M argaret K lam m er,
w ho is now em ployed a t th e F irs t N a­
tional ban k in H utchinson, and Jo h n
W ilson of M inneapolis, w ho is an em ­
ploye a t F irs t N ational B ank and
T ru st Com pany of M inneapolis, w ho
w ill be tellers.

Rush C ity Banker Dead

O F C H IC A G O

N orthw estern B anker

New Employes at Mora

Jo h n A Carlson, p resid en t of th e
R ush City State B ank and w ell know n
in th a t com m unity, died suddenly last
m onth.
Mr. Carlson h ad been connected
w ith various business en terp rises in
E a ste rn M innesota and elsew here for
m any y ears an d w as rated as a v ery
successful business m an. H e w as
presid en t of th e fo rm er S tate B ank of
M ora and had financial in terests in
o th er banks in th e state.

Increase Capital Stock
At a special stockholders m eeting of
th e A ustin S tate B ank held last
m onth, it w as voted to increase th e
b an k ’s capital stock from $75,000 to
$100,000 by declaring a stock dividend.
The increased volum e of business,
it w as pointed out, m ade necessary
the increase in th e b a n k ’s capital stru c ­
ture.

Gain in Deposits
R eflecting im proved trad e conditions
in D uluth du rin g th e p ast year, C lear­
ing H ouse association ban k s a t th e
close of business A pril 4th, show ed a
gain of $2,706,571.01 in deposits.
T he total on call w as $62,897,770.97,
com pared to $60,191,199.16 on A pril 4th
a y ear ago.
Total resources of th e five ban k s in
th e group increased $2,786,634.71 from
$67,486,093.37 to $70,272,728.08. Capi­
tal, su rp lu s and undivided profits rose
$125,551.64 from $6,682,502.80 to $6,808,054.44.

39

Twin C ity News

H E M inneapolis F ed eral R eserve
B ank has reduced by one-half p er
cent its discount ra te s to m em ber
banks on loans secured by U nited
States g o v ern m en t bonds and eligible
paper, and also its ra te on advances
to non-m em ber b an k s secured by di­
rect obligations of th e U. S. g overn­
m ent. T he new ra te s are one p er cent
p e r y e a r an d are in line w ith existing
m oney m a rk e t conditions in o th er F ed ­
eral R eserve districts.
1
E m m ett J. E rickson of F a rm e rs &
M echanics Savings B ank w as elected
p resid en t of th e M inneapolis chapter,
A m erican In stitu te of B anking, a t th e
an n u al election.
P aul W. P etterson of M arquette N a­
tional B ank w as nam ed first vice p re si­
dent; C hristian Hies of M inneapolis
F ed eral R eserve B ank, second vice
president, and A nthon y O. D okken,
N o rth w e ste rn N ational B ank & T ru st
Company, tre a su re r.
Selected for th e board of governors
w ere Ben C. S im onson of F a rm e rs &
M echanics, R uth Gale of N o rth w estern
N ational and Thom as M. K elly of F irs t
N ational B ank & T ru st Company.
E lected as delegates to th e conven­
tio n of th e In stitu te , to be held Ju n e
8 to 11 in N ew O rleans, w ere Clarence

T

M. Ostrum , A lven e W olff, A lbert G.
Carlson, M elvin B. H olm gren, E sth er
R oberts, E arl A. Carlson, Leonard A.
D ubay, L aw ren ce C. P eterson , P hilip
E rlander, H erbert Stolt, F loren ce M.
W ilw erd ing, Carl R. Johnson, H arry L.
T yson and Jerry Conard.

M inneapolis m en listed am ong those
atte n d in g th e A m erican B an k ers Asso­
ciation an n u al sp rin g m eeting in
F re n c h L ick Springs, Ind., late in A pril
included John B urgess, vice p resid en t
of N o rth w e ste rn N ational B ank &
T ru s t Com pany; W illiam D uncan, Jr.,
secretary , M innesota B an k ers Associa­
tion, an d J. Cam eron T hom pson, p re si­
dent, N o rth w est B ank C orporation.

By James M. Sutherland
Specia l C orre spon de nt

F a rm e rs & M echanics Savings Bank,
M inneapolis, w as th e first M inneapolis
firm to fly th e em blem aw arded first
h aving 90 p er cent or m ore of th e ir
em ployes signed up for purchase of
w a r bonds th ro u g h th e payroll deduc­
tion plan.
P a rticip an ts in the cerem ony at
w hich th e flag w as u n fu rled over the
b an k included A rthur D. R eynolds,
ch airm an of th e M innesota bond sale
com m ittee; H en ry S. K ingm an, bank
president, and John De L aittre, bank
tre a s u re r and head of its w ar bond de­
p artm en t.
The ban k is custodian for m ost ac­
counts opened for M inneapolis w o rk ­
ers u n d er th e payroll deduction plan.
More th a n 100 city firms have 90 p er
cent or m ore of th e ir w orkers enrolled
u n d e r th e plan.
O liver S. P ow ell, first vice p resident
of M inneapolis F ed eral R eserve Bank,
w as a p articip an t in a panel discussion
on w ar controls du rin g th e n in th a n ­
n u al m eeting of the M idw est E conom ­
ics A ssociation in D avenport, Iowa.
He discussed federal reserve b a n k s’
p a rt in th e w ar control of inflation.
Clarence A. M aley, vice presid en t of
A m erican N ational Bank, St. Paul, has
been elected p resid en t of th e St. Paul
W in ter C arnival Association.
John C. H ein es, m em ber of th e M in­
neapolis RFC agency organization,
died in A pril follow ing a sh o rt illness.
B orn in The Hague, H olland, he came
to M inneapolis in 1920, he joined th e
RFC staff in 1932. L ater he w as em ­
ployed by th e M inneapolis F ederal
R eserve B ank and Allison-W illiam s
Company, th en rejoined th e RFC.

N o rth w est B ancorporation directors
have voted a 25-cent dividend on 1,552,237 shares of stock outstanding. I t is
payable May 25th to stockholders of
record May 9th and w ill aggregate
$388,059.

An action program designed to p u t
the credit facilities of banks of M in­
nesota squarely behind th e w artim e
Food-for-Freedom program of th e gov­
ern m en t w as started in M inneapolis by
the banks of th e state at a m eeting held
u n d er the sponsorship of th e A gricul­
tu ra l Com m ittee of th e M innesota
B ankers A ssociation. R ural b ankers
from all over th e state as m em bers of
the A g ricultural Com m ittee of the
M innesota B ankers A ssociation, re p re ­
sentatives of the College of A gricul­
ture, rep resen tativ es of the A gricul­
tu ra l A djustm ent A dm inistration, and
officers of th e M innesota B ankers As­
sociation w ere in attendance.
W ays and m eans by w hich the banks
of M innesota can cooperate in th e
Food-for-Freedom program w ere dis­
cussed and plans w ere m ade for m eet­
ings in every county a t w hich th e pro­
gram and m ethods for its su p p o rt can
be laid before all th e banks of the
state.
In telling th e purpose of th e m eet­
ing, W in. D uncan, Jr., secretary of the
M innesota B ankers A ssociation, de­
clared th a t in his opinion “increased
ag ricu ltu ral production for w ar p u r­
poses is ju st as im p o rtan t as th e pro­
duction of m unitions, ships, planes and
tanks, and th a t it is the d uty of farm ­
ers and in stitu tio n s th a t finance farm ­
ers to fu rth e r th e Food-for-Freedom
program in every w ay th ey can. It is
our purpose,” he said,“to see to it th a t
production does not suffer for lack of
credit.”
U nder th e action program , it is
planned th a t th e banks w ill give
stre n g th and encouragem ent to th e
Food-for-Freedom program in every
Northwestern Banker


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

May 19^2

40
county. T hey w ill be fully inform ed
about how to proceed u n d er th e p ro ­
gram and w ill be urged to give it th e ir
fast m oving cooperation, according to
Mr. D uncan. T his it is planned to do
by m eetings held th ro u g h o u t th e state
and by th e use of lite ra tu re explaining
th e Food-for-Freedom program and
how the banks can help it.

Joseph G aare Dead
F u n eral services for Joseph Gaare,
57, fo rm er P erley resid en t w ho had
been an app raiser for th e Federal
L and B ank of St. P aul th e last tw elve
■W:

J A M IE S O N

&

I* T h is re p re se n ts y o u r D ra ft,
Cashier’s Check,Treasurer’s Draft,
or Bank Money Order. For your
safety, it is produced on paper
that has exclusive fraud-preven­
tio n featu res. U n o b ta in a b le in
blank form, crooks cannot coun­
terfeit it. N or can they alter its
unique alteration-defying surface.
Insurance guarantees this protec­
tion. Issuance is faster, easier and
more accurate because...

Raid Prinsburg Bank

COM PANY
Stocks
Bonds
Grain

Cotton
Butter
Eggs

q

Com m odity Brokers
•

Members

N ew York Stock E xchange
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•

G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER

2 . .. bound-in, one-time carbons
—always ready for instant use,
w ithout sm udging hands or rec­
ords —give y o u ...

Manager

Bond Department

3 . . one or more exact copies of
the original check. You elim inate
one or more posting operations
by using one copy as a register,
from which entries are made to
the general ledger. W hen filed
numerically the copy also serves
as an outstanding register. Upon
paym ent of the draft, the copy is
removed and filed according to
date of payment. The paid orig­
in al is filed n u m eric ally . T his
cross re fere n ce enables you to
trace items instantly; gives you
better control.

Minneapolis — Atlantic 8235
____________________________________

YOU ARE A SELECT
RISK
This m a k e s it p o s s ib le for y o u to s e c u r e
h ig h

grade

u s u a l co st.

in su r a n c e

at

about

h a lf the

T h o u sa n d s of b a n k e r s a ll o v e r

th e cou n try ca rry our a c c id e n t a n d h e a lth
a b etter c itiz e n w ith

you r in c o m e p ro te c te d .

In su ra n ce p a id u p

to S ept. 15th for o n ly $2.00.

W rite for lit­

eratu re a n d a p p lic a tio n s .

Minnesota Commercial
Men’s Association
2550 P illsb u ry A v e .

JEW Y O R K

RO C H ESTE
O FFIC ES

IN

.

Northwestern Banker

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

^I CI P A L

CITIES

May 1942

B urglars raided th e P rin sb u rg State
B ank recently, b u t escaped w ith only
sm all loot w hen th e ir attem p ts to b u rn
th ro u g h steel stro n g box doors failed.
P rin sb u rg is in K andiyohi county
about fifteen m iles south of W illm ar.
U sing cream can gang tactics, th e
yeggs stole a ta n k of acetylene gas
from a P rin sb u rg garage b u t th e ir a t­
tem pts to b u rn th ro u g h steel v au lt
doors w ere futile, rep o rts to th e state
crim e b u reau said.
Loot w as $225, all in silver.

Th ree Banks G et Deposits
The city council of R ochester re ­
cently designated the th ree R ochester
banks as depositories for city funds,
including th e F irs t N ational, $200,000,
U nion N ational, $150,000, and Olm sted
County, $40,000.

Elected Cashier

in su r a n c e . Y ou a re

4 . T he Blue Streak binding and
carbon snap away from the com­
pleted forms at a flick of the wrist.
More time saved!

years, w ere held last m o n th in th e
H ope L u th eran church, M inneapolis,
Rev. C. S. T horpe officiating, and in th e
K irkebo L u th eran church, Perley, Rev.
T hom as A nderson, Rev. A. J. Tjornhom, and Rev. J. J. Jacobson officiat­
ing. In te rm e n t w as m ade in th e fam ily
lot at B athania cem etery at Perley.
Mr. Gaare joined th e land ban k
staff in 1930, as field m an and ap p rais­
er. Also serving as field rep resen ta­
tive for th e FCA, he becam e w ell
know n to farm ers th ro u g h o u t the
n o rthw est. Since F ederal F a rm M ort­
gage corporation, w hich ad m inisters
land b ank com m issioner loans.
H is death in a St. P aul hospital w as
a ttrib u te d to a h e a rt attack caused by
over-exertion encountered in trav el
difficulties near Litchfield, M innesota.

M in n e a p o lis, M inn.

H arold L. Sm ith, w ho u n til recently
w as em ployed in th e offices of th e
F irs t B ank Stock corporation in M in­
neapolis arriv ed in P ipestone to take
over th e position of cashier in the
P ipestone N ational Bank, a post to
w hich he w as recen tly elected by the
directors of th a t organization.
Mr. Sm ith, w ho takes over th e post
form erly held by G. M. G rabow w ho
left in F e b ru a ry to serve in th e U nited
States navy, has been engaged in the
banking business for m any years.

Pay 5 Per Cent Dividend
All holders of tru s t certificates of th e
F arm ers & M erchants State B ank of
New Ulm are being paid a five per
cent dividend by H. E. Fay, tru stee.
T his is th e sixth dividend th a t hold­
ers of tru s t certificates of th is b ank
have been paid, am ounting in all to
55 p er cent.
A pproxim ately $10,000 is being dis­
trib u te d at this tim e to holders of
these certificates.

41

Changes in Personnel
The S tate B ank of B ricelyn a n ­
nounces several changes in p ersonnel
w hich have tak en place recently.
Miss A nna May Cook, w ho has been
em ployed by th e b an k for over a
year, has resigned to accept a position
w ith th e F irs t and F a rm e rs N ational
B ank of Blue E a rth . F re d Jo h n so n w as
elected a ssista n t cashier to tak e th e
place of Elw ood L und, w ho recen tly
enlisted in th e arm y. Jan ice H anson,
w ho has been em ployed by th e State
B ank of L uv ern e, Iowa, has re tu rn e d
to B ricelyn as a sten o g rap h er in th e
bank, and E llen H elgeson has recen tly
ta k e n u p d uties as sten o g rap h er and
bookkeeper.

A ccepts Position
Miss E lain e Jo h n so n has accepted a
position as bookkeeper of th e Belview
S tate B ank. Miss Jo h n so n recen tly
com pleted h e r tra in in g in St. Cloud.

Accident Fatal to Banker
M artin W eibye, 78, p resid en t of th e
Peoples S tate B ank of Frazee, passed
aw ay a t h is hom e in E agle B end r e ­
cently as th e re su lt of a fractu red
skull, received in an accident several
w eeks ago.

Install Night Depository
In stallatio n w as com pleted recen tly
of an after-h o u r depository service for
cu stom ers a t th e B ecker C ounty Natin o al B ank of D etroit Lakes. T h is is
som ething e n tire ly new in b an k in g
service in th a t city.
T his inno v atio n w as installed to tak e
care of th e needs of num ero u s b u si­
ness estab lish m en ts in D etroit L akes
th a t tak e in a considerable am o u n t of
cash a fte r b an k in g h o u rs d u rin g the
w eek days, and, especially on S a tu r­
days since th e b an k s ,close a t 12 noon.

Brief News
The Citizens S tate B ank of W alnut
Grove re p o rts several recen t changes
in its personnel, E v e ly n K oblegard has
accepted a position w ith th e C entral
N ational B ank of Des Moines, Iowa,
and C hristina W illiam son is ta k in g h er
place. Also, W illiam A. R upp, fo rm er­
ly of th e F irs t N ational B ank of W est­
brook, and recen tly of Slayton, has
been added to th e staff. The bank
re p o rts excellent business, p a rtic u la rly
in loans.

Centre
of Com m ercial
G ravity
P h il a d e l p h ia is in the centre
of one of the World’s greatest and
busiest manufacturing and industrial
areas, buzzing right now with the wid­
est activity in its history.
Business and banking transactions of
every sort and kind are drawn toward
it from all over the World.
If you need local credit information,
quick collections, foreign exchange,
or any of our complete commercial
banking facilities, an account with this
bank will prove to be a valuable asset
to you.

...

THE . . .

P H IL A D E L P H IA
NATIONAL

BANK

ORGANIZED 1803

P H IL A D E L PH IA , PA .

C apital, S u rp lu s an d U n d iv id e d P ro fits

$46,000,000
M em b er o f F ederal D eposit Insurance C orporation

E d w in B rickson, p resid en t of th e
A drian S tate Bank, has ju s t re tu rn e d
from a v e ry enjoyable vacation in
F lorida. Mr. B rickson re p o rts th a t
loans in his b an k have show n a nice
increase since th e first of th e y e a r—-

Northwestern Banker

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

May 19^2

42

• MI NN ESOTA NE WS *
the increase being due largely to real
estate and seed and feed loans.

H an sen of K anaranzi is cashier, and
AVayne U ntiedt is bookkeeper.

The F irst N ational Bank of W ilm ont
has recen tly rem odeled its q u arters.
The im provem ents include new floors,
new counter, added w indow space, and
an en larg em en t of th e w o rk in g space.
The b an k has also added som e new
equipm ent.

Leonard N elson, cashier of th e F a rm ­
ers S tate B ank of H untley, took ad­
vantag e of th e E a ste r vacation to take
a sh o rt trip aro u n d M innesota w ith his
fam ily.

T here has been several changes in
th e p ersonnel of th e F a rm e rs State
B ank of K anaranzi. E. H. W ellendorf
of E llsw o rth is now president, Eddie

Theodore K nutson, cashier of th e

State B ank of Sargeant, rep o rts th a t
his tow n w ill soon have a new sewage
and disposal system . H e also rep o rts
general business good in his territo ry ,
w ith good farm sales and prices.

L. A. Loosbrock, cashier of th e S tate
B ank of Lism ore, has recen tly been
confined to th e hospital at R ochester,
w here he u n d erw en t an operation.
Mr. Loosbrock is now at hom e and is
recovering v ery nicely.
E. E. Severaid, vice president, and
C. D. Olson, cashier, of th e S ecurity
S tate B ank of W anam ingo, are th e
proud holders of nam e plates carved
from th e lim estone of w hich th e new
$100,000 au d ito riu m and gym nasium ,
ju st com pleted a t W anam ingo, is built.

The F irs t N ational B ank of Le Cen­
te r has recently com pleted an ex ten ­
sive rem odeling job. T he layout, w hich
w as planned by C. C. Traxler, cashier
of th e bank, w as v ery w ell done, and
has added m uch to both th e ap p ear­
ance and th e convenience of th e bank.

“The B ank at the Yards”

From Sioux City
to Siberia!
Bacon— or beef— produced and financed in the
Sioux City area — m a y ev en tu ally reach its consum er
in S y d n e y — or Siam , or Siberia!
For with food
b ecom in g ever m ore important for Victory in war,
the great Sioux City market also w ill grow and d e ­
v elo p a s n ever before.
In the heart of this area— and in the heart of the
Sioux City Stock Yards— w e offer banks in Iow a,
N ebraska, South Dakota, and M innesota, com plete
and friendly correspondent service.
O F F IC E R S
C. L. F re d ric k s e n , P re s id e n t
M. A. W ilso n , V ice P re s id e n t
W . G. N elso n , A ss is ta n t V ice P re s id e n t
W . C. S chenk, C ash ie r
H . C. L in d u sk i, A s s is ta n t C ash ier
C. L. A dam s, A s s is ta n t C ash ier
J . S. H a v er, A s s is ta n t C ash ier
Jam e s L. S m ith , A u d ito r

D IR E C T O R S
C. R. M cK enna, P re s ., Jo h n so n B is c u it Co.
B. L. Sifford, A tto rn e y , S ifford & W ad d e n
G. F. S ilk n itte r, P re s id e n t, S ioux C ity
S tock Y a rd s C om pany
C. L. F red rick se n , P re s id e n t
M . A. W ilso n , V ice P re s id e n t
H . C. B osw ell, S e c re ta ry -T re a s u re r,
W e s te rn C o n tra c tin g C o rp o ratio n

E. S. H o ltm eier of V ictoria w as re ­
cently nam ed cashier of th e V ictoria
State Bank. Mr. H oltm eier w as form ­
erly connected w ith th is b ank in y ears
past.

RU BBER F R O M

TH E

M ID W E S T
(C ontinued from page 15)
gram , w ith th e expectation th a t by re ­
placing th e alcohol w ith th e glycol
process production can be doubled in
a y e a r or two. W e need to build about
70 or 80 alcohol p lan ts of 10,000 gallons
p er day capacity each to realize th is
production. W e have th e necessary
raw m aterials and th e skills, and can
certain ly find th e m etals for th e fac­
tories. We ought to be on o u r w ay
now b u t probably we shall be delayed
a little w hile longer by indecision and
argum ent. In th e m eantim e, research
is going forw ard, both on th e sy n th e t­
ics and on possible ru b b e r yielding
crops.
I t is becom ing m ore evident every
day th a t th e ru b b er prog ram we build
now will, w ith m odifications, be our
p erm an en t source of supply. So far as
cost and q uality are concerned, it
seem s definitely indicated now th a t the
new sy n thetics and guayule can be
produced a t not m ore th a n th e p rev ail­
ing price of n a tu ra l before th e w ar, and
th a t th e q uality w ill be fully as good.
T hus we have a basis for a new, big
chem ical in d u stry , and it should come
in large p a rt to th e m idw est w here we
have th e raw m aterials and o th er as­
sets needed to build a sound program .

Northwestern Banker

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

May 1942

43
charged w ith em bezzling $2,487.86 of
th e b an k ’s funds.
Mr. Johnson w as indicted at the
latest term of federal co u rt and his
rem oval to Sioux Falls a t th is tim e
indicates an in ten tio n to en ter a plea
of guilty.

SOUTH
DAKOTA

Addresses Meeting
L. T . M O R R IS
P re s id e n t
W aterto w n

NEWS

To Manage Branch Bank
A t a d in n e r m eeting of th e board
of d irecto rs of th e Ipsw ich State
Bank, C larence E. K nudson, Leola,
w as nam ed to succeed E. W. Hilgem ann, Jr., as m anager of th e Leola
B ranch B ank. Mr. H ilgem ann left
last m o n th for F o rt L eavenw orth,
K ansas, to join th e arm y. H e has
served as m an ag er of th e b an k for th e
p ast tw o y ears as w ell as conducting
his law practice. Mr. K nudson is
ow ner and m an ag er of th e K nudson
H otel in Leola and has had previous
experience in b an k in g in Glenham ,
South Dakota.

Form Salvage Committee
George A S tarrin g , secretary -treas­
u re r of th e South D akota B ankers
A ssociation, announced recen tly th a t
an in d u stria l salvage com m ittee is
being form ed in South D akota at th e
req u est of th e W ar P roductions Board.
Mr. S tarrin g , w ho is executive vice
presid en t of th e G reater South Da­
ko ta A ssociation, re c e n tly atten d ed
a m eeting a t Cleveland, Ohio, of a
salvage clinic conducted by th e W P B ’s
regional office a t Chicago.

Addition to Building
A t th e B lackpipe S tate B an k of
M artin w ork m en are g ettin g sta rte d
on th e w o rk of building an addition
to th e b an k building. A 12-foot ce­
m en t block ad dition w ill be erected
at th e back of th e b an k and w ill give
th em m uch needed space in th e v a u lt
and for o th er purposes. T he b an k
w as m oved to M artin from N orris a
few y ears ago and has been co n tin ­
ually grow ing since th a t tim e. O. A.
H odson is presid en t, Carl H icks, vice
presid en t, and E v ely n B arnes, cash­
ier.

Pledge Food for Freedom
H. C. Gross, cashier of th e Bowdle
State B ank, and p re sid e n t of G roup
Six of th e South D akota B an k ers A s­
sociation, last m o n th called a m eet­

G EO R G E M. ST A R R IN G
S e c re ta ry -T rea su re r
H u ro n

ing of th e b an k ers of his Group to be
held at Mobridge, th e object being to
call to th e ir atten tio n th e Food for
F reedom program . The response w as
excellent, w ith an attendance of n e a r­
ly one hundred, m any of th e b an k ­
ers b rin g in g along th e ir local county
agent, FSA supervisor, and farm p ro ­
gram chairm an. Mr. Gross rep o rts
th is to be one of th e best m eetings
held for m any m onths, w ith everyone
read y and w illing to do his part.
South D akota Group Six com prises
th e counties of Corson, Zebach, Dewey,
P erkins, W alw orth, Campbell, Mc­
P herson, E dm unds, F au lk and P otter.

G oes to Brookings
Miss M erle F ran cis of F lan d reau
recen tly accepted a position w ith th e
S ecurity N ational B ank in Brookings.
She w as form erly em ployed at the
F arm ers S tate B ank in F landreau.

G e t Perfect Rating
C hairm an R. M. Depuy, Brookings,
of th e com m ittee on ag ricu ltu re of
th e South D akota B ankers A ssocia­
tion, said th a t for th e seventh con­
secutive year South D akota b ankers
have been given a p erfect ra tin g for
ag ricu ltu ral activities by th e ag ri­
cu ltu ral com m ission of th e A m erican
B ankers Association.
T he aw ard, w hich w as recognized
a t th e sp rin g m eeting of th e execu­
tive council of th e A m erican B ankers
A ssociation at F ren ch L ick Springs,
Indiana, w as based on special activi­
ties, attendance at 1941 ag ricu ltu ral
m eetings and w ork w ith farm ers on
projects such as farm inventories,
cred it statem ents, farm budgets, soil
conservation, grasshopper control, 4-H
club w ork and F u tu re F a rm e rs of
A m erica activities.

L. H. Loken, vice presid en t of the
F a rm e rs and M erchants B ank of W a­
tertow n, and m em ber of th e agricul­
tu ra l com m ittee of th e South D akota
B ankers Association, addressed the
m eeting of th e W hetstone Valley
Clearing H ouse A ssociation at Milb an k recently.
Mr. Loken pointed out th e im por­
ta n t p a rt all ban k ers have in assist­
ing farm ers to expand th e ir produc­
tion of d airy products, p o u ltry and
victory gardens. He stated th a t th e
expanding of production in these de­
p artm en ts w ere necessary in th e p res­
ent w ar em ergency.
T he W hetstone Valley C learing
H ouse Association, consisting of G rant
and R oberts counties, m et in joint
session w ith th e w ar boards and
county extension d ep artm en t of th e
tw o counties.
Purpose of th e m eeting w as to co­
ordinate th e efforts of th e tw o banks
w ith th e w ar board and extension de­
p a rtm e n t to expand th e Food for F re e ­
dom program as m uch as possible.
F red Dosch, G rant county extension
agent, and E lm er Sanderson, R oberts
county extension agent, explained the
necessity of in creasing flax and soy­
bean acreage and had rep o rts for th e
fine cooperation th ey are receiving
from th e farm ers in th e ir respective
counties.
C. P eter Eggen, AAA ch airm an and
county w ar board ch airm an of Rob­
erts county, and Oscar M anning, in
th e sam e capacity of G rant county,
discussed th e im portance of th e AAA
in connection w ith th e w ar effort and
also outlined th e responsibility each
person has in m ark etin g all old iron
and tin from th e farm s and tow ns in
th e ir respective counties.
O ther speakers on th e program
w ere: A. W. Powell, Sisseton, and
C. A. Berg, Stockholm . T his is one
in a series of m eetings w hich are to
be held in Group F our, w hich is com­
prised of Brow n, M arshall, R oberts,
Day, Clark, G rant, Codington, H am ­
lin and Deuel counties.

Bank Teller Indicted

New Vice President

Tom Slattery, R apid .City, deputy
U. S. M arshal, recen tly arriv ed at
Sioux Falls w ith L eonard Johnson,
R apid City, teller of th e F irs t N ational
B ank of th e Black Hills, w ho is

A ndrew K opperud, form er vice p re s­
ident of th e F ederal L and B ank of
Omaha, has m oved to W aterto w n to
join th e staff of the F arm ers and
M erchants B ank as vice president.
Northwestern Banker


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

May 19^2

44

•

SOUTH

Mr. K opperud and his b ro th er, H a r­
m on of Lake P resto n , are m ajor stock­
holders of th e bank. H is b ro th e r is
president.

Burlew Passes Away
F u n e ra l services of H a rry K eith
Burlew , 43, w ere held recen tly a t th e
M ethodist ch u rch in A lexandria, w ith
Rev. H. D. C lark officiating. Mr. B u r­
lew passed aw ay in a M itchell h ospital
follow ing an operation.
“B arley ” B urlew , as he w as know n

DAKOTA

N EWS

to his friends, w as born a t A lexandria,
Ju n e 14, 1898. He received his educa­
tion in th e public school th ere g ra d u a t­
ing w ith th e class of 1915. He w as
em ployed by P itts B ro th ers at A lex­
an d ria u n til 1918, a t w hich tim e he
becam e a ssistan t cashier of th e b ank
in P a rk e r South Dakota. L a te r he
w orked in the banks at P u k w an a and
Kimball.

Pioneer Banker Dies
W alter I). M orris, Sr., 86, chairm an
of th e board of directors of th e F irs t
Citizens N ational B ank of W atertow n
and a pioneer W atertow n banker, died
recen tly at his hom e there.
Mr. M orris, w hose h ealth had been
failing for about tw o y ears had been
seriously ill for about a week.
He rem ained quite active u n til his
last illness going reg u larly to the
b an k nearly every day. His in terest
in daily affairs continued keen u n til
he w as finally stricken.

X-RAYS FROM 3 DAYS
(C ontinued from page 14)
Mr. L undy is vice
p resid en t in charge of th e new S urety
D ep artm ent of th e State A utom obile
In su ran ce A ssociation of Des Moines.
He w as form erly p resid en t of th e M u­
tu al S urety Com pany of Des Moines,
w hich recently becam e affiliated w ith
th e State A utom obile.
R ussell F. L undy.

The w rite r had th e pleasure of
luncheon as th e g uest of P h il B urget,
form erly of G rinnel, Iowa, and now in
charge of th e C redit D ep artm ent of
th e N o rth ern T ru st Company. T his
enjoyable luncheon w as in th e officers’
dining room of th e N o rth ern T ru st
Com pany w ith W infield W. Scott, vice
president, and Ray Thom pson, assist­
a n t cashier, th e Valley Savings Bank,
as honored guests of Mr. B urget.
T his is no tim e to sit back and say,
“I am going to stay in a stric tly cash
position to be ready for a depression
follow ing the w ar,” said K enn eth J.
M cDonald, presid en t of th e Iow a T ru st
and Savings B ank of E stherville, Iowa,
at th e Chicago Clinic. He said, “Let
m e ask you, is th a t patriotic? Is th a t
sound banking? L et’s analyze th is
th in g a little. Food m ust be produced.
C redit m u st be available for th a t p u r­
pose. D isregarding m erch an t credit,
b anks fu rn ish m ost of th e short-term
a g ric u ltu ral credit today, in some
states 90 p er cent of it. If banks do
not, w ho will? Can we ju stify criti­
cism of com petition from governm ent
N orthw estern B anker

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

May i9^2

•
agencies if we ourselves, refuse to su p ­
ply credit needs?”

On h and as u sual a t th e Chicago
m eeting w ere E. N. V an H orne, execu­
tive vice presid en t and C harles C.
K uning, vice presid en t of the A m eri­
can N ational B ank and T ru st Com­
pany of Chicago. Mr. K uning w as
p lanning to be a m em ber of th e Ne­
brask a G roup M eeting tra in th e fol­
low ing w eek and Mr. Van H orne w as
to ru n out to Lincoln for th e Lincoln
Group M eeting.
D elegates to th e Chicago “Clinic”
got a th rill out of th e te st of Chicago’s
air raid sirens, w hich w as held for a
10-minute period th e second evening
of th e m eeting. Some 400 new ly in ­
stalled sirens in th e Cook County area
and extending over into Indiana, w ere
tried out for the first time.
One of th e ou tstan d in g sessions w as
th e one presided over by John Bur­
gess, vice presid en t of th e N o rth w est­
ern N ational B ank and T ru st Com pany
of M inneapolis. T his included discus­
sions on th e “Soldiers and sailors’ civil
relief ac t” by L. K. T w in em , now of
New York, b u t form erly a N ebraska
attorney, “C onsum er credit in a w ar
econom y,” by B resident R ichard H.
Stout of th e M orris P lan B ankers As­
sociation, and “R egulation W ,” by Vice
B resident K. R. C ravens of th e Cleve­
land T ru st Company.
O. P aul D ecker, vice president, the
A m erican N ational B ank and T ru st
Com pany of Chicago, presided over
one of th e o u tstanding sessions in a
discussion of “Our W ar E conom y.”
Several u n iv ersity m en and W in. A.
Irw in, A. I. B. national director for the
A. B. A., took p a rt in th is discussion.

A Des M oines b an k er w ho appeared
on th e Chicago program w as H arry H.
S ivright, vice president, th e Iow a Des
M oines N ational B ank and T ru st Com­
pany. On th e sam e program appeared
R. O. B yerrum , executive vice p resi­
dent, the F irs t T ru st and Savings
B ank of D avenport.
The Iow a A ssociation w as w ell re p ­
resen ted at th e Chicago Clinic, by Vice
P resid en t C. F. H arris, w ho is execu­
tive vice presid en t of th e State B ank
of Gladbrook. Floyd has ju st recov­
ered from a ra th e r extensive siege of
influenza. P resid en t A rthur D onhow e
of th e Iowa A ssociation did n ot get to
th e Chicago m eeting, due to th e p res­
sure of o ther business«

45
N o rth east Group at Devils Lake on
M onday, May 4th; N o rth w est Group in
M inot on Tuesday, May 5th; South­
w est Group at B ism arck on W ednes­
day, May 6th; and S outheast Group at
V alley City on T hursday, May 7th.

NORTH
D A K O T A
NEWS
J . I. H EG G E
P re s id e n t
H illsboro

New Bank Opens
The F irs t S tate B ank of Goodrich
a t Goodrich, N. D., has received its
c h a rte r and is open for business, State
E x am in er Jo h n G raham announces.
The b an k succeeds th e F irs t N ational
B ank of Goodrich w hich w en t into
v o lu n ta ry liquidation.

Remodel Jamestown Bank

C. 0 . W ATTAM
S ec re ta ry
F arg o

T h ro u g h o u t N o rth D akota, th e first
q u a rte r’s gain over th e first th ree
m o n ths of 1941 am ounted to 29 per
cent, w hile for M arch, the state av er­
age increase w as 21 p er cent.
In th e N in th federal reserv e dis­
trict, th e q u a rte rly gain over 1941 w as
rep o rted a t 26 p er cent, w hile th e
M arch increase equalled 21 per cent.

Heads W ar Bond Workers

Fargo Business Good

More th a n 100 tow n sh ip and village
chairm en and o th er w o rk ers in th e
w ar bond and stam p sales program
atten d ed a m eeting at Casselton last
m o n th to h e a r an explanation of th e
com ing bond pledge.
C. C. W attam , county ch airm an and
secretary of th e N o rth D akota B ank­
ers explained th e purposes and aim s
of th e cam paign and delivered h a n d ­
books and o th er lite ra tu re p rep ared
by th e tre a s u ry d e p a rtm e n t for w o rk ­
ers.

B ank records show th a t F argo has
continued to do a record volum e of
business for th e first th ree m onths of
th e year, far su rpassing th e record
volum e of th e first th ree m onths of
last year.
The F ederal R eserve B ank of M in­
neapolis says th a t m easured by bank
debits—checks against individual ac­
counts in th e ban k s—F argo business
for th e first q u a rte r of 1942 stands 24
p er cent above th e sam e period in
1941. F o r M arch, th e debits ra n 22
per cent above those of M arch, 1941.
M oorhead’s gain is 33 per cent for
th e first q u a rte r and 32 p er cent in
M arch over the preceding M arch.
F argo debits in M arch w ere $26,982.000 com pared to $22,184,000 in the
sam e m onth last year; $78,108,000 for
th e first q u a rte r com pared to $63,724,000 last year.
M oorhead debits in M arch w ere $2,951.000 com pared to $2,239,000 in
M arch last year; $8,359,000 in th e first
q u a rte r of 1942 as against $6,291,000
last year.

Bank Redecorates
An in te rio r red eco ratin g job w as
com pleted recen tly a t th e N o rth w est­
ern B ank in Langdon.

Attends A . B. A . Meeting
C. C. W attam , secretary of th e N o rth
D akota B an k ers A ssociation, recen tly
w en t to F re n c h Lick, Indiana, to a t­
ten d th e sp rin g m eeting of th e A m eri­
can B an k ers A ssociation. Gordon H.
N esbit, vice p resid en t of th e F irs t N a­
tional B ank and T ru s t Com pany of
Fargo, and M artin Aas of New R ock­
ford also atten d ed th e m eeting.
Mr. W attam stopped off in Chicago
to v isit w ith his son, w ho h ad been
g ran ted a leave from his duties in the
aero n au tics engineering division of the
U. S. A rm y, statio n ed a t C hanute Field,
R antoul, Illinois.

Bank Debits Increase
B ank debits in M inot d u rin g th e first
q u a rte r of 1942 w ere 38 p er cent
g re a te r th a n in th e corresponding pe­
riod of 1941, th e F ed eral R eserve B ank,
M inneapolis, reports.
F o r M arch, M inot’s b an k debits w ere
21 p er cent ahead of M arch a y e a r ago.

Siegfried Passes Away
H a rry E. Siegfried, 67, Fargo, form er
p resid en t of th e F argo B uilding and
Loan A ssociation, now th e F irs t F ed ­
eral Savings and Loan A ssociation,
died recently.
A drug salesm an for years, he w as
connected w ith th e building and loan
association from 1922 u n til December,
1931, w hen he retired as president. He
w as first nam ed as d irector in 1922.

Group Meetings
G roup m eetings in N orth Dakota,
scheduled to be held in A pril b u t post­
poned because of poor road conditions,
w ere held recently as follows:

W orkm en recently began prelim ­
in ary w ork in th e rem odeling of the
Jam es R iver N ational B ank building
at Jam estow n.
One of th e city ’s oldest large stru c ­
tures, it has developed w h at w orkm en
term ed a “bulge”. The top floor of th e
three-story building w ill be rem oved
and a n u m ber of changes w ill be m ade
in the second floor arrangem ent. E. A.
Moline is th e contractor.

Show Definite Gain
B ank deposits and resources showed
a sh arp rise above a y ear ago in re ­
sponses by th ree G reater G rand F o rk s
national banks to th e recent b ank call.
R eporting to th e com ptroller of th e
cu rren cy at W ashington, the banks
show ed $9,049,468 deposits and $9,812,
503 resources as com pared w ith $7,385,935 deposits and $8,091,171 on th e
sam e date last year.
B ankers of G rand F o rk s a ttrib u te d
th e gain to h ig h er a g ricu ltu ral incom e
th e p ast year, notably on potatoes and
grain.
C om parative figures follow:
F irs t N ational Bank, in G rand F orks
—deposits $4,406,683; resources $4,813,371; last year, deposits $3,624,353; re ­
sources $3,996,516.
Red R iver N ational Bank, G rand
F o rk s—deposits $3,570,493; resources
$3,850,525; last year, $3,022,448 and $3,279,311.
M innesota N ational Bank, E a st
G rand F o rk s—deposits $1,072,292; re ­
sources $1,148,607; last year, $739,134
and $815,344.

Land Bank 25th Anniversary
Chris A rnt, one of th e original
founders of th e W illiston N ational
F arm L oan A ssociation in 1917, and
w ho has been in tim ately identified
w ith it since then, calls a tten tio n to
th e fact th a t th e federal land ban k
system celebrates its tw enty-fifth an ­
n iv ersary th is sum m er.
It is expected th a t th e associations
in W illiam s and McKenzie counties
w ill take special notice of th is an n i­
v ersary in th e ir an n u al m eetings in
Ju n e or Ju ly th is sum m er.
Mr. A rn t points out th a t the farm ers
in his te rrito ry have m ade a good
show ing, as, in spite of th e handicap of
drouths, th ey paid 40 of th e ir loans in
full in th e fall of 1941, and 23 crop and
in stallm en t contracts w ere paid in
full.
Northwestern Banker


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

May 19^2

46

E very D epartm ent and Facility of this
Bank is D esign ed to C o-operate
in the E ssen tial Job of

PR O DUC TIO N

Stock Y ards N ational Bank of South Om aha
OMAHA, NEBRASKA
M EM BER

Northwestern Banker

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

May 19^2

FEDERAL

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

47

NEBRASKA
NEWS
WM. B. H U G H E S
S e c re ta ry
O m aha

O. A. R IL E Y
P re s id e n t
H a stin g s

Guests of A . I. B.
George T. Newell, p re sid e n t of th e
A m erican In s titu te of B anking, and
D avid E. Sims, vice presid en t, visited
th e O m aha A. I. B. ch ap ter recently.
T hey lunched w ith officers an d h ad
d in n er w ith th e local board of th e lo­
cal chapter. Mr. N ew ell is vice p re si­
d e n t of th e M an u factu rers’ T ru s t Com­
p an y of N ew Y ork City and Mr. Sims
is associated w ith th e Salt L ake City
b ra n c h of th e federal reserv e b an k of
San Francisco.

Elected to A . I. B. Board
L ester E. Souba, of th e Live Stock
N ational B ank an d E u gene T. Rydell
of th e O ccidental B uilding an d Loan
A ssociation w ere elected to th e board
of g o vernors of th e O m aha chapter,
A m erican In stitu te of B anking. Louis
B arta, ch ap ter president, presided. V.
J. S kutt, city re g istra tio n ch airm an for
th e w a r savings drive, outlin ed cam ­
paign plans.
The din n er, atten d ed by 135, w as fol­
low ed by a dance, a tten d ed by about
th re e h u n d red , including 50 p riv ate
soldiers form F o rt Crook as special
guests.
M em bers of th e c h a p te r’s
w om en com m ittee w ere hostesses.

Benson to Grand Island
E. H. B enson began his new duties
in th e C om m ercial N ational B ank in
G rand Islan d recently. He has been
a ssista n t p o stm aster at W ood R iver
for th e p ast te n y ears and p rio r to th a t
held positions in b oth W ood R iver
banks.

New Banking Hours
T he b an k s of V alentine an d K ilgore
announce th a t beginning th is m onth,
th e y w ill adopt city closing tim e for
th e ir in stitu tio n s, and w ill sh u t th e ir
doors at 3 p. m. each business day. Of­
ficers of th e b an k s sta te th a t th is h o u r
is alm ost u n iv ersal now am ong b an k s,
an d th a t a sm all group in th is section
of th e sta te is th e only one w hich has
been holding out.

Bank W eather Station
V irtu ally an y th in g in th e w ay of
w eath er is now available a t th e Cen­
tra l N ational b ank of Colum bus
“w eath er statio n ”.
R ecently, b an k officials p u t into
place a T aylor storm oguide, a barom ­
eter w hich indicates likely changes in
th e w eath er for th e n ex t six to eight­
een h o urs an d also gives th e c u rre n t
b arom etric reading.
A t th e sam e tim e a c h a rt show ing
th e average m o n th ly rain fall in Colum­
bus over th e 30 y ear period from 1900
to 1930, and th e actual m onthly ra in ­
fall each m o n th from Ja n u a ry 1936 to
th e p resen t w as arranged.
T he tw o additions com plete th e
b a n k ’s “w eath er statio n ,” all located
on th e n o rth outside w all of th e b an k
building. The o th er tw o p a rts of th e
“statio n ” consist of a stan d ard th e r­
m om eter and a stan d ard ra in gauge.

Bank Deposits Gain
G rand Island b an k deposits on A pril
4th of th is y ear w ere seven p er cent
h ig h er th a n a y e a r ago.
S tatem ents of th e th ree banks, pub­
lished recen tly show ed total deposits
of $8,225,229.32 as ag ain st $7,658,024.80
on A pril 4, 1941, an increase of $567,204.52.
Loans and discounts in th e sam e
period increased from $2,865,172.23 to
$3,255,101.14, a to tal of $389,939.18, or
14 per cent.

Change in Officers
A nnouncem ent comes from th e
W achob-B ender C orporation, w e l l
know n in v estm en t ban k in g firm of
Omaha, of a change in th e official
p ersonnel of th e organization. New
officers are F ra n k J. B ender, presid en t
and ch airm an of th e board; J. Cliff Rahel, first vice p resid en t and treasu rer;
M. J. W arren vice president; E. T. Volz,
vice president; and E. A. F ricke, sec­
retary .

Night Banking
A ccording to an announcem ent
m ade recen tly th e F irs t N ational B ank

in W ahoo w ill open its doors from 6
p. m. to 8 p. m. on W ednesday and
S aturday nig h ts h ereafter.
R outine business w ill not be con­
ducted d u rin g these hours, as th e
service is solely for th e purpose of
cashing checks.
Doors w ill close as u sual a t 3 p. m.,
b u t w ill open again at six on these tw o
days for th e tw o hours.
F inances for th is service w ere con­
trib u ted by Wahoo, m erchants.

New Teller
Don Gamble of Scottsbluff, form er
teller a t th e Scottsbluff bank, began
his new duties recen tly as a teller at
th e C entral N ational B ank of Colum ­
bus.

Garhan Promoted
Mr. V. R. Mulig, executive vice p resi­
d en t of th e F arm ers S tate Bank, Ris­
ing City, N ebraska, recen tly resigned
to accept a position w ith th e P roduc­
tive C redit A ssociation at Beatrice, N e­
braska.
The board of directors has decided
to elim inate th e office of executive
vice p resid en t and H. F. G arhan has
been prom oted to th e position of m an ­
aging officer and cashier. Mr. F ra n k
M. B ottum , of St. E dw ard, N ebraska,
has been elected a ssistan t cashier.

Services of A . I. B.
T he services of th e 70,000 m em bers
of th e A m erican In stitu te of B anking
have been offered to th e U nited States
T reasu ry in connection w ith its n atio n ­
w ide savings bond pledge cam paign
by George T. Newell, n ational p resi­
den t of th e A. I. B., w ho is vice p resi­
den t of th e M anufacturers T ru st Com­
pany in New Y ork City. In a le tte r
addressed to Ted R. Gamble, consuls
ta n t to th e secretary of th e tre a su ry
a t W ashington, Mr. N ew ell said, “It
is our desire to supplem ent th e w ork
you are u n d ertak in g and I am th e re ­
fore volu n teerin g th e services of th is
b an king organization to assist you in
every w ay possible.
“I t is our th o u g h t th a t th e b est ap ­
proach we can m ake is to advise our
leaders th ro u g h o u t th e co u n try th a t
th is cam paign is being u n d ertak en and
ask th a t th ey place them selves at th e
disposal of th e state and local com m it­
tees of th e W ar Savings staff. W e
u n d erstan d th a t pledge cam paigns
have already been conducted in Ore­
gon, Iow a and M ontana and know th a t
a n um ber of In stitu te m en have played
an im p o rtan t p a rt in th e w o rk in Ore­
gon. W e have various n ational com­
m ittees such as P ublic Speaking, F o r­
um and Sem inar, Public R elations and
Publicity, w ho m ight also be found use­
ful in explaining y o u r objectives to the
various com m unities.”
N orthwestern Banker


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

May 1942

48

The

*42

Nebraska Group

Meeti

Profitable Programs arid Perennial Pleasure Prevailed at
Six State Conventions

HAT W ar M eans to N ebraska
B an k s”, th e th em e of each of
th e six G roup m eetings held
in N ebraska last m onth, we believe
served to b rin g forcefully to th e a t­
ten tio n of N ebraska b a n k ers not only
th e seriousness of th e econom ic situ a ­
tion b ro u g h t about by th e p re se n t w ar,
b u t also m ade th em realize th e im por­
ta n t p a rt th e b an k er plays to help
b ring th e w a r to a successful conclu­
sion. N ebraska b anks have qualified
one h u n d red p er cent to sell W ar Sav­
ings Bonds and Stam ps, and have been
aw arded a percentage of one thou san d
by th e A m erican B an k ers A ssociation
in cooperation w ith th e ABA agricu l­
tu ra l program , b u t as W ade M artin,
N ebraska su p e rin te n d e n t of banking,
said, ‘‘Q ualifying to Sell W ar Bonds
is not enough—b anks m u st sell bonds
to accom plish th e desired re su lt.”
A ttendance a t th e series of N ebraska
Group m eetings th is y e a r w as som e­
w h at below average, due to th e sh o rt­
age of tires, and because, w ith m any
of th e you n g er b an k ers in th e service,
the older ones w ho u su ally a tte n d
group m eetings w ere com pelled to re ­
m ain a t hom e to operate th e bank.
R egistration w as as follows: Lincoln,
210; G rand Island, 150; Schuyler, 150;
N orfolk, 200; A lliance, 125; and Benkelm an, 100.
Officers elected a t th e several m eet­
ings w ere as follows: G roup One—
P resid en t, W alter J. W underlich, p resi­
d en t N ehaw ka Bank; vice president,
O. J. M ayborn, cashier D iller State
Bank; se cretary and tre a su re r, Fred
S. A ldrich, vice p resid en t C ontinental
N ational Bank, Lincoln. G roup Five
—P resid en t, L. W. Langford, assistan t
cashier F irs t N ational B ank, N o rth
P latte; vice president, Glen T. Gibson,
presid en t E xchange B ank, Gibbon;
secretary and tre a su re r, F. R. H aggart,
vice p resid en t and cashier St. P aul
N ational B ank. G roup Tw o—P re si­
dent, V. E. D olpher, p resid en t F irs t
N ational B ank, D avid City; vice p resi­
dent, W. E. Moor, vice p resid en t F a rm ­
ers S tate B ank, E lk h o rn ; secretary and
treasu re r, C harles N ovak, p resid en t
B ank of B rainard. G roup Six— E. R.
Spray, cashier C raw ford State Bank;
vice president, E. M. K night, cashier
Alliance N ational Bank; secretary and
treasu re r, F. L. F errell, cashier Ne-

W

Northwestern Banker

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

Mai) 1942

and N orfolk m eetings, th e program
p a tte rn followed a t th e m eeting in
G rand Island, Schuyler, Alliance, and
Northwestern Banker
B enkelm an w as m uch the same. On
th e Group m eeting special tra in w ere
b rask a S tate Bank, Oshkosh. Group
O. A. R iley, vice p resid en t of th e
F o u r—P resident, A. J. K oelling, p resi­ H astings N ational Bank, and p resid en t
d en t City N ational Bank, H astings;
of th e N ebraska B ankers Association;
vice president, W. B. A braham son, W ade R. M artin, N ebraska d irector of
vice p resid en t F irs t N ational Bank, banks; O. P. Cordill, a ssistan t cashier,
Loomis; secretary and treasu rer,
F ederal R eserve Bank, Omaha; H. S.
George C. Soker, presid en t S tate B ank
D aniel, m anager, R econstruction F i­
of H ildreth.
nance C orporation, Omaha; Bernard M.
De Lay, a ssistan t cashier, th e D eLay
E. M. Gallagher, presid en t of the
N ational Bank, N orfolk, and president,
F irs t N ational B ank of O’Niell, w as
elected p resid en t of Group T hree at th e N ebraska Ju n io r B ankers Asso­
ciation; S tan ley M aly, vice president,
N orfolk. Jam es B. Cline, Jr., vice
p resid en t of th e F a rm e rs and M er­ F irs t N ational Bank, Lincoln; Edgar
ch an ts S tate Bank, Bloomfield, w as M cBride, president, Com m ercial Bank,
elected vice president, and Ole W. Blue Hill, and ch airm an of th e Asso­
ciation executive com m ittee; A. J. HalGladem, a ssistan t cashier of th e DeL ay N ational Bank, N orfolk, and W il­ las, vice president, Stock Y ards N a­
tional Bank, Omaha; J. O. Peck, vice
liam M achm uller, a ssistan t cashier of
president, C ontinental N ational Bank,
th e N ational B ank of N orfolk, w ere
elected secretary and tre a su re r, respec­ Lincoln; E. W. R ossiter, president,
B ank of H artington; and John A.
tively.
C
hangstrom , vice p resid en t Omaha N a­
Speaking on “The D evelopm ent of
N eb raska,” Lloyd C. T hom as, K earney, tional Bank. All these m en w ere
scheduled to speak at a nu m b er of
m an ag er of radio statio n KORN and
m eetings, and th e suggestions and in ­
KGFW , urged n o rth e a st N ebraskans
form
ation th ey conveyed to th e ir lis­
to organize a regional w ar in d u stry
ten ers w as of prim e im portance to th e
council, an organization th a t w ould
w ar effort. Dr. Leo M. C hristensen,
w ork as a d istrict to get w ar in d u stry
plants, instead of leaving individual w ho heads the C hem urgy D epartm ent
of th e U n iversity of N ebraska, spoke
tow ns seeking such industries.
at each of th e m eetings, and his ad ­
Such an organization, he said, w ould
dress appears on an o th er page of th is
be able to place valuable inform ation
issue of the N o r t h w e s t e r n B a n k e r .
about th e d istrict before th e w ar and
n av y departm ents, o ther governm ent
P a rtic u la r reference should be m ade
officials and Senator N orris w ho is as­ to th e talk by Mr. Daniel of th e R e­
sistin g N ebraska in such efforts.
construction F inance C orporation on
He u rged th e ban k ers to com m uni­ “F in an cin g th e Coal D ealer.” W ash­
cate w ith Senator N orris at W ashing­ ington is urg in g all b an k ers to im m e­
ton “and tell him th a t you are behind
diately take steps to finance all coal
him in his w ork of g etting w ar plants
dealers in th e ir com m unity w ho need
in N ebraska, and th e efforts being
such assistance, so th a t the fuel supply
of th e nation for th e com ing w in ter
m ade to get in d u strial alcohol and
o th er chem urgical p lan ts for th is state.
m ay be stored in bins and y ard s be­
Speaking at N orfolk on “Develop­ tw een now and A ugust first. W ith
m ents in N ational D efense,” J. R. K in ­ the tra n sp o rta tio n problem daily b e­
der, p resid en t of th e S tu art In v est­ com ing m ore serious, after A ugust
m en t Company, Lincoln, said he does first th e re w ill be no cars available
not believe “we w ill achieve victory
for th e tra n sp o rta tio n of fuel, and it
in th is w ar w ithout, as a nation and
is absolutely necessary th a t such fuel
as individuals, doing a g reat m any be acquired now and stored for use
things, and m aking a great m any sac­ n ex t w inter. If th is is n ot done, Mr.
rifices th a t th u s far we h a v e n ’t th o u g h t Daniel said, th e co u n try faces a fuel
necessary.”
fam ine of serious proportions. The
W ith th e exception of th e Lincoln
RFC w ill assist banks in th is financing

By Henry H. Haynes
Edito r

49

AT

THE

N EBRA SKA

P ic tu re d ab o v e a re a n u m b er of th e officers of se v e ra l N e ­
b ra s k a G roups e le c te d a t th e m ee tin g s h eld la s t m o n th . E e a d in g
fro m le f t to r ig h t th e y a re : 1— G roup One, W alter J. W underlich,
p re sid e n t, a n d p re s id e n t N e h a w k a B a n k ; Fred S. A ldrich, se c re ­
t a r y a n d tre a s u re r, v ice p re s id e n t C o n tin e n ta l N a tio n a l B a n k ,
L in c o ln ; a n d O. J. M ayborn, vice p re sid e n t, c a sh ie r of th e D ille r
S ta te B a n k . 2— G roup F iv e , Glen T. G ibson, vice p re sid e n t,
p re s id e n t E x c h a n g e B a n k , G ib b o n ; L. W. L angford, p re sid e n t,
a s s is ta n t c a s h ie r F i r s t N a tio n a l B a n k , N o rth P l a tt e ; a n d F. R.
H aggart, s e c re ta ry a n d tre a s u re r, v ice p re s id e n t a n d c a sh ie r St.

program , tak in g all of such a loan th a t
th e b an k feels it is u nable to carry.
L oan a rra n g e m en ts have been g reatly
simplified, and ev ery b an k should act
im m ediately. C ontact y o u r local RFC
office for p articu lars.
T he PCA and th e FCA are u n d e r­
m ining b an k business and u sing th e
ta x p a y e rs’ m oney to do it, according
to E. W. R ossiter of H artin g to n , w ho
said it is high tim e our gov ern m en t
is living up to its sta te m e n t th a t it
d oesn’t w an t loans th a t b an k s can
handle. B anks w ill be slow ly b u t
su rely p u t out of business if th is gov­
e rn m e n t tre n d is not stopped, Mr.
R o ssiter said, and b an k ers m u st fight
now to keep alive.
The cred it p ictu re of th e n atio n is
changing rapidly, W ade M artin told
m em bers of five groups. B anks m u st
re a d ju st accordingly, and m u st devel­
op plan s for rep ay m en t of loans, and
of course do some careful in v estig atin g

GROUP

M E E T IN G S

P a u l N a tio n a l B a n k . 3— G roup Two, V. E. Dolpher, p re sid e n t,
p re s id e n t F ir s t N a tio n a l B a n k , D a v id C ity. 4— G roup Six, F. L.
F errell, s e c re ta ry a n d tre a s u re r, c a sh ie r N e b ra s k a S ta te B a n k ,
O shkosh; E. R. Spray, p re sid e n t, c a s h ie r C ra w fo rd S ta te B a n k ;
a n d E. M. K night, v ice p re sid e n t, c a s h ie r A llia n c e N a tio n a l
B a n k . 5— S. P. D elatour, c h a irm a n of th e b o a rd F ir s t N a tio n a l
B a n k , L ew ellen. M r. D e la to u r is 94 y e a rs old, is a c tiv e ly o p e ra t­
in g h is ra n c h , a n d say s he e x p ec ts to a tte n d a t le a s t six m ore
N e b ra s k a G roup m eetin g s.

before th e loan is granted.
Keep
close w atch on y o u r borrow ers, cau­
tioned Mr. M artin, since if th ere is a
loss the ban k stands to lose as w ell
as th e borrow er.
No rep o rt of N ebraska G roup m eet­
ings w ould be com plete w ith o u t m en­
tion of th e Group m eeting special
tra in w hich for several y ears has been
one of th e high spots of Group activ­
ities. U nder th e direction of Asso­
ciation S ecretary B illy H u ghes, ably
assisted by Jam es Sharpe of the B u r­
lington R ailroad, every arran g em en t
for th e com fort and convenience of
th e passengers is provided.
Billy
calls it th e “Spring Tonic Special”,
and for th e first tw o or th ree days
tonic is a good w ord, b u t tow ard the
last of th e trip some of th e forty or
m ore passengers begin to w ilt dow n
a bit.
Two groups nam ed th e ir m eeting
cities for 1943—G roup One w ill m eet

at Falls City, and Group F o u r w ill
m eet at H astings.

Opening Day at Bruie
Mr. and Mrs. G. D. Adam s presided
at opening day of th e B ank of Brule,
recently.
The in terio r of th e b ank has recently
been rem odeled, a new oak floor re ­
places the m arble and red leath er and
chrom ium chairs add m uch to th e ap ­
pearance of th e b ank and pleasure of
custom ers and employes.
Over 200 signed th e guest book d u r­
ing th e afternoon. The ladies received
daffodils or calendulas as favors, pen­
cils for th e m en folk and balloons to
th e children.
The F irs t N ational B ank of Omaha
sen t congratulations and a bask et of
red and w hite carnations for the occa­
sion.
Northwestern Banker


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

Mai] 1942

50

* NEBRASKA NEWS

•

Addition to Bank Staff

Meet on 25th Anniversary

A ccepts New Position

Jo h n L a u ritse n of Om aha recen tly
began duties as an a ssista n t m em ber
of th e staff at th e W ashington C ounty
bank of Blair. He p lans to com m ute
to and from w ork daily.

T he an n u al stockholders m eeting
of th e F irs t S tate B ank of Johnson w as
held on th e date of th e tw enty-fifth
a n n iv e rsary of th e p u rchase of the
b a n k ’s assets by th e p re se n t officials.
P u rch ase w as m ade in 1917 from L. J.
L intz and P eter Berlet. Officers are:
A1 N. Dafoe, president; C. D. H ahn,
vice-president; Jam es P. Kelley, cash­
ier; Jo h n L. B linde is a ssistan t cashier,
and M avis Schuette, clerk. A su b stan ­
tial dividend w as issued to stockhold­
ers. The in stitu tio n w ill be fifty y ears
old in July.

Mrs. R u th B allou has accepted a
position a t th e F arm ers & M erchants
N ational B ank of A shland, tak in g th e
place of Miss U llstrom w ho w as m a r­
ried recently.

Mr. L au ritsen , fo rm erly of M inneap­
olis, has been assistin g J. F ran cis Mc­
D erm ott of O m aha’s F irs t N ational
B ank recen tly in prom oting th e sale of
U nited States defense bonds in N ebras­
ka, and also has been associated w ith
th e staff of th e N o rth Side B ank in
Omaha.

Charter No. 2 0 9

First National Bank
of Omaha
The
Oldest National Bank
From Omaha West
Nationalized 1863
OFFICERS
T . L . D a v is ...........................................P re s id e n t
A. H .
O. H .
F . W . T h o m a s ........................ V ice P resid e n t
J . F . M c D e r m o t t ......................................... V ice P re sC.
id e nHt.
E . N.
C. D . S a u n d e r s ............................................ V ice P re s id e n t
E. F.
J . T. S t e w a r t , I I I .V i c e P re s , a n d C ashier
H . A.
J. F.
D a v is ................................................ V ice P re sO.
id e nHt.

Ch i s h o l m .................................A ssista n t C ashier
E l l i o t t ..................................... A ssista n t C ashier
V e b e r ......................................... A ssista n t C ashier
S o l o m o n ................................... A ssista n t C ashier
J e p s e n ....................................... A ssista n t C ashier
A r n s b e r g e r ............ A ssista n t C ashier
H o l q u is t ..................................A ssista n t C ashier
W . E . S p e a r ................................... T ru s t Officer
E . G. S o l o m o n . . . .A s s ista n t T r u s t Officer

M em ber
F ed eral R eserve S ystem

Northwestern Banker

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

May 19^2

M em ber
F ederal D ep osit Insurance Corporation

New Officers
Officers w ere elected for th e ensuing
y ear at th e m eeting of th e Mid-W est
Regional Clearing H ouse A ssociation
held in th e Paw nee hotel, N orth
P latte.
E lected presid en t w as W. O. Collett
of Brady; vice president, L ester L ang­
ford of N o rth P latte and secretarytreasu rer, V irgil G raham of N orth
P latte.
D inner w as served preceding the
m eeting. The m ain sp eaker w as R udy
C. M ueller, presid en t of F ry e A ir­
craft corporation of Omaha. Covers
w ere placed for forty.

Fremont National to Remodel
A $25,000 building perm it w as issued
to th e F rem o n t N ational B ank recen t­
ly to reco n stru ct and rem odel th e ban k
building and office. A nother perm it
for $7,950 w as issued to th e b an k p re ­
viously au thorizing th e construction of
a vault.
Due to increased business th e b an k
has been operating u n d er difficulty b e­
cause of lack of room. T he co n stru c­
tion of th e ordnance p lan t so u th of
F rem o n t now m akes an increase in
space necessary, Jam es D. M illiken,
vice presid en t said.
The p artitio n sep aratin g th e p resen t
bank from th e building to th e w est
w ill be rem oved and th e floor of th e
p resen t b ank lowered. T his w ill m ake
possible th e installatio n of additional
w indow s to serve custom ers.
T he new w ork w ill be done w ith
brick and stone w hich is not a v itally
needed construction m aterial.

Bank President Dies
T hom as A. Jam es, 51, acting p resi­
dent and d irector of th e F irs t N ational
B ank of S trom sburg for tw enty-tw o
y ears died a t his hom e recently. He
had been in poor h ealth for several
m onths.

Veteran Banker Dead
E d w ard W. N orth, 80, early N e­
b rask a plainsm an and assista n t cash­
ier of th e C entral N ational B ank of
Colum bus since 1924, died recently.
P revious to his ban k in g experience he
w as chief deputy collector of in tern al
revenue a t Om aha tw enty-five years.

51
died recen tly w hile visiting in Los
Angeles. B urial w as a t Omaha. She
w as the b a n k ’s first w om an em ploye
and re tire d four year ago, after nearly
30 y ears of service.
W. D ale Clark, presid en t of th e Oma­
ha N ational Bank, has been nam ed re ­
gional co n su ltan t in th e orgainzation
of in d u strial co n sultants to assist in
expediting construction of p lants for
th e Defense corporation, it w as an ­
nounced recen tly by S ecretary of Com­
m erce Jesse Jones.

MAHA b an k deposits show ed a F u n e ral services w ere held in Omaha
a t th e H anscom P a rk M ethodist
gain of m ore th a n $1,000,000 and
C hurch. M asonic rites w ere conducted
loans decreased m ore th a n $6,000,000
b y N ebraska Lodge No. 1, A.F. & A.M.
betw een D ecem ber 31, 1941, and th e
S urviving are his wife, tw o daughters,
b an k call of A pril 4th.
T otal deposits A pril 4th w ere $163,- Mrs. Jam es W illiam son, New Y ork
City, and Mrs. K eith Adams, Long
645,483; on D ecem ber 31st, $162,491,504.
T otal loans A pril 4th w ere $56,725,447; Beach.
on D ecem ber 31st, $62,754,305.
E d w in C. W iggenhorn, 76, m em ber
B an k ers said th is follow ed a n a tio n ­
of a pioneer A shland, N ebraska, fam ­
w ide trend.
ily and retire d A shland farm er, died
F ig u res by individual b an k s for
recen tly at an Om aha hospital.
A pril 4th:
D eposits
L oans
He w as grad u ated from th e U niver­
O m aha N a t i o n a l ............ $ 6 1 ,1 2 5 ,5 3 4 $ 1 9 ,9 3 7 ,0 6 7
sity of N ebraska in 1887, from George­
3 3 ,5 3 6 ,8 8 8
6,815,497
U . S. N a tio n a l..................
F ir s t N a tio n al ...............
32,4 2 8 ,2 7 6 14,001,913
tow n U n iv ersity law school in 1889.
Live Stock N a tio n a l. . . 2 0 ,4 4 6 ,1 9 8
9,124,681
S to ck y ard s N a tio n al . .
9,9 7 6 ,3 0 7
3,794,382
F ro m 1889 to 1904, he w as a special
2 ,9 3 3 ,5 2 0
1 ,5 47,346
P a c k e rs N atio n al ..........
ag en t for th e g overnm ent b u reau of
D ouglas C ounty B a n k .
1,4 7 7 ,0 9 6
698,501
S. O m aha S av in g s B a n k
8 3 4 ,9 7 4
4 3 8 ,370
pensions, th en re tu rn e d to A shland to
N o rth Side B a n k .............
8 8 6 ,690
367,690
become cashier and a director of th e
T o ta ls .......................... $163,6 4 5 ,4 8 3 $56 ,7 2 5 ,4 4 7
Indiv id u al figures for D ecem ber 31, F a rm e rs and M erchants Bank. He re ­
tire d a few y ears ago. T he W iggen­
1941:
h o rn fam ily settled a t A shland in 1870.
D eposits
L oans

O

O m aha N atio n al ............$ 5 9 ,3 3 3 ,2 2 4 $2 0 ,9 6 7 ,8 3 2
U . S. N a tio n a l..................
34,7 4 5 ,3 2 1
7,434,382
F ir s t N atio n al ...............
32,8 8 5 ,8 7 8 1 5 ,3 4 7 ,6 4 1
L ive Stock N a t i o n a l .. .
18,8 0 8 ,7 1 9 1 1 ,6 5 2 ,9 5 4
S tockyards N a tio n a l . . . 10,3 5 9 ,5 2 7
4,131,613
P a c k ers N a tio n al ..........
3,0 5 0 ,3 7 7
1,699,313
D ouglas C ounty B a n k . .
1,560,828
644,256
S. O m aha S avings B a n k
869,535
456,125
N o rth Side B a n k ..........
878,095
4 2 0 ,198

A lvin E . Johnson recen tly re tu rn e d

from Jacksonville, Illinois, w h ere he
atten d ed D ad’s Day festivities a t MacM urray College, as the g uest of his
d au g h ter, M iss M yrtle L ou ise Johnson,
one of th is y e a r’s Ak-Sar-Ben p rin cess­
es. Miss Jo h n so n re tu rn e d w ith h er
fath er for a sh o rt stay in Omaha, ac­
com panied by a group of classm ates.

Mrs. L illiam M. Lantz, 70, re tire d em ­
ploye of th e Om aha N ational Bank,

D irectors of th e Occidental B uilding
and L oan A ssociation of Om aha r e ­
cently declared th e 182nd q u arterly
dividend on savings. Based on th e
p resen t ra te of 3 p er cent a year, th e
dividend am ounted to approxim ately
$35,000, according to Ford E. H ovey,
president.
P h il M. M ayer has resigned as p e r­
sonnel d irector of th e F ed eral L and
B ank of Omaha and has gone to W ash­
ington to accept a position w ith th e
office of em ergency m anagem ent.
M ayer’s assistant, Grayton W. Holm quist, Omaha, is acting personnel di­
rector, pending a p erm an en t ap p o in t­
m en t for th e job.
R esignation of M ayer w as said to
have had no political significance, a l­
though he w as said to have been a
factor leading to a split betw een dem o­
cratic organizations in N ebraska, Iowa,
W yom ing and South D akota (states
served by the FCA ), and w hich re ­
sulted in dism issal of P resid en t Chas.
M. McCumsey and Vice P resid en ts
A ndrew K opperud and H ugh E. Baird
of th e bank.
K opperud has been m ade vice p resi­
den t of th e F a rm e rs and M erchants
B ank of W atertow n, South D akota, of

THE H A S T IN G S NATIO NAL BANK
H A S T IN G S , N EB R A SK A
R ep o rt of C ondition A pril 4, 1942
RESO U RCES
Loans and D iscounts.......................................................................... ..............................................................ip-l ,3 5 9 ,6 5 3 .2 8
Overdrafts
..........................................................................................................................................................
34 7.11
Stock in Federal Reserve B ank . ....................................................................................................................
” ,4 0 0 .0 0
Bank B u ild in g .......................................................................................................................................................
2 2 .6 0 0 .0 0
Furniture and F ix tu re s.......................................................................................................................................
” '666-00
Interest Earned but Not Collected .......................................................................... '
1 8 ,9 b 3 .b b
United States Government B onds................................................................................S J6 7 .3 1 7 .& 3
Municipal Bonds and W arran ts..................................................................................... ' ' s l ’S n i n n
Cash and Sight Exchange............................................................................................. ..

8 3 8 ,3 6 5 .4 3

1 ,7 6 2 ,0 4 7 .7 ^
$ 3 ,1 7 7 ,6 1 1 .7 7

B ert A. W ilcox, form er vice p re si­
den t of th e Om aha N ational B ank, died
recen tly a t Long Beach, C alifornia.

Capital Account
common stock

L IA B IL IT IE S

................................................................................................ ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; 5
ourpius
................................................................*
*
Undivided Profits and Reserves...........................................................................................................

D e p o s i t s ..........................................................................................................................

. . . . . . ni,
1 | i; 8 o 8 : S o

70 070

oon n ao

2,889,918.26

$ 3 ,1 7 7 ,6 1 1 .7 7

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

O F F IC E R S A N D D IR E C T O R S
H . G. P R A T T , P resid en t
OHAS. E. D E E T S , Cashier
O. A. R IL E Y , Vice P resid en t
j LE O S W IG L E , A ssistan t Cashier
JO S E P H B A U E R , A ssistan t Cashier
C. E. B Y E R S
S T E P H E N S W IG L E
R- R . VANCE
M ember F ed eral D eposit In su ran ce C orporation

OM AHA

N orthw estern Banker

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

May 19b2

52

• NEBRASKA NEWS *
w hich he w as one of th e principal
stockholders.
K eeping of M ayer as p ersonnel direc­
to r w as said to have been dem anded
by L eon AV. P ow ers, g eneral agent and
general counsel for th e bank, in th e
face of insistence by Jam es E. Quigley,
N ebraska dem ocratic n atio n al com m it­
teem an, th a t M ayer be replaced by
H a rry Bane, fo rm er N ebraska em ploy­
m e n t director.
M ayer’s resig n atio n m ay resu lt, it is
believed, in a b e tte r u n d e rsta n d in g b e­
tw een b ank directo rs and th e dem o­
cratic organizations.

Gertrude K ountze S tew art, w ife of
J. T. S tew art, II, vice p resid en t of
M cF ayden-Stew art Company, died re ­
cently.
Born in Omaha, Mrs. S tew art w as
the d au g h ter of th e late H erm an
K ountze, pioneer banker. She attended
Miss H ersey ’s school in Boston, be­
cam e th e th ird queen of Ak-Sar-Ben
in 1897.
Besides h er husband, she is survived
by tw o sons, J. T. Stew art, 3d, cashier
of th e F irs t N ational B ank of Omaha,
and Gordon S tew art, Los Angeles; a
daughter, Mrs. Ira Couch, Chicago; one

A M E R IC A N N A T IO N A L B A N K
AND T R U ST CO M PA N Y
OF CHICAGO

JU AT W A S H IN G T O N
sSlin
plSS^r Insurance Corporation

LA S A L L E S T R E E T

Member Federal Deposit

w
S T A T E M E N T
AT

T H E

C L O S E

O F

O F

C O N D I T I O N

B U S IN E S S

A P R I L

Cash and due from b a n k s ............................................
U n ited S ta te s G overn m en t ob ligation s — direct
and fu lly g u a r a n te e d ..................................................
M unicip al and other m arketab le securities
L oans and d is c o u n ts ........................................................
F ed eral R eserve B an k s t o c k .....................................
C u stom ers’ liab ility on a c c e p ta n c e s .........................
A ccrued in terest r e c e i v a b l e .....................................
R eal e sta te o w n e d ........................................................
O ther a s s e t s ........................................................ ...... .

4,

1 0 4 2

$36,076,985.77
17,304,891.89
14,040,574.41
25,223,549.43
108,000.00
10,322.41
181,419.95
1.00
77,510.08
$93,023,254.94

r^ /fr/?rY r/r< ,i

—

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

C ap ital stock
p r e fer re d
C ap ital stock — c o m m o n
S u r p lu s
1 n d ivid ed p r o f i t s ..................................................
Preferred stock retirem en t f u n d
R eserve for ta x es, in terest, co n tin gen cies, etc.
U nearned discount
L ia b ility on a c c e p ta n c e s .........................
D eposits:

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

$ 600.000.00

1,000.000.00
2,000,000.00
793,418.92
250.000.00
970,621.81
322,555.19
10,322.41

D e m a n d ......................................$75,669,682.63
U n ited S ta te s G overnm ent .
5,425,4 1 2 .9 8
O ther pu blic fun ds
. . .
33,273.72
S a v in g s
5 .917.967.28
O ther tim e d ep osits . . .
30,000.00

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

87,076,336.61
$93,023,254.94

N orthw estern B anker

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

May 19^2

b ro ther, H erm an D. K ountze, Bedford,
New York.
Plans are being form ulated to com­
bine all Omaha drives for funds for
c h arity and w ar relief, including th e
C om m unity Chest, soldier and sailor
relief and USO, in one big cam paign
n ex t fall.
Sponsor of th e p lan in Om aha De­
fense F unds, Inc., a b usinessm en’s or­
ganization w hich w as form ed last Ju ly
to pass on th e m erits of fund-raising
cam paign and to determ ine O m aha’s
fair share of cam paign budgets.
Officers of Om aha D efense F unds,
Inc., include R oy P age, president; \V.
B. M illard, vice president. Mr. M illard
is vice presid en t of th e Om aha N ation­
al Bank.
E v ery n ational and state b ank in
N ebraska now is qualified as an issu­
ing agent for th e sale of D efense Sav­
ings Bonds, according to inform ation
received by th e N ebraska Defense Sav­
ings com m ittee from th e K ansas City
F ederal R eserve Bank.
N ebraska is one of th e first states in
the nation to com plete in stallatio n of
all banks as issuing agents. T his w as
com pleted th ro u g h th e N ebraska B ank­
ers A ssociation, w hose p resid en t is O.
A. R iley of H astings, and th e N ebraska
Ju n io r B ankers A ssociation, headed by
B ernard De L ay of Norfolk.
“The N ebraska D efense Savings com­
m ittee w ishes to co n g ratu late the
ban k ers of th e state, w ho have m ani­
fested th e ir patrio tism in an u n m istak ­
able m an n er,” said Orville Chatt, state
ad m in istrato r of th e defense savings
staff.
All Omaha banks and m an y o u tstate
banks are adopting th e b an k d ra ft plan
of defense savings b an k purchases for
th e ir patrons. U nder this plan the
depositor req u ests his bank to buy a
bond for him a t reg u lar in terv als and
deduct th e cost of th e bond from his
bank balance.
A ndy Iiopperud, 17, O m aha C entral
H igh School ju nior, son of Air. and
Mrs. A ndrew K opperud, is w in n er of
th e $100 first prize in an essay contest
sponsored by th e N ebraska In v e st­
m en t B ankers Association.
The contest, open to all N ebraska
high school students, w as for b est es­
says on “The Role of th e In v estm en t
B anker in th e D evelopm ent of A m er­
ican In d u stry .”
Tied for second place w ere Cathleen
Dolan, 13, Maxwell, N ebraska, and
B etty Steil, 17, A lliance, N ebraska,
high school senior. E ach received
$37.50. The association suggested w in ­
ners buy Defense Bonds.

53

Stockton Field, California, w hen he be­
cam e ill.
Young K ovanda w as em ployed by
th e C ontinental N ational B ank in L in ­
coln afte r graduation.
A six th and final dividend of 5 per
cent, to taling $6,611 w as paid creditors
of th e F irs t S tate Bank, Burw ell, re ­
cently, th e state b anking d ep artm en t
announced. The b an k w as declared
solvent in 1934. Claims w ere allow ed
to taling $136,920 and w ith th is divi­
dend a total of 85 p er cent or $115,053 has been paid.

New Bookkeeper

T A to tal of $54,856,266.41, depos­
its in L incoln s ~hree dow ntow n
banks on A pril 4tn, w ere said by b an k
officials to be a new all tim e h ig h m a rk
on a “call” day. T hey added a brief
th a t th e to tal is a new h ig h for an y
tim e.
T his w as revealed w h en th e rep o rts
w ere consolidated by R ay B ecker, sec­
re ta ry of th e L incoln C learing H ouse
A ssociation, in a call by th e com ptrol­
ler of th e cu rren cy for re p o rts on th e
condition of th e b an k s as of A pril 4th.
L oans also show ed a gain.
In th e opinion of th e officials th e re c ­
ord is due to th e fact th a t beginning
about th e first w eek in J a n u a ry th e
1941 crop of corn w as going to m a rk e t
on th e hoof, in th e form of fa t cattle
and hogs.
W ith defense in d u stries and activ i­
ties ju s t b eg in n in g here, it also w as
th e belief th a t th e re p o rts to th e com p­
tro lle r a t th e close of th e n e x t th re e
q u a rte rs of th e year, should show fu r­
th e r gains in both deposits and loans.
T his w ill be due to th e in creased p u r­
chasing pow er th a t w ill come from th e
m en w ho w ill be statio n ed a t th e a ir
base, and people w ho w ill come here
to live, w hile em ployed a t th e N e­
b ra sk a ordnance p la n t n e a r Mead.
The to tal deposits on A pril 4th com ­
pare w ith $46,328,852.70 on th e sam e
date in 1941, and $49,883,762.85 on last
D ecem ber 31st.

A

R etail cred it m en in L in c o ln , as w ell
as th e police and th e F B I are on th e
lookout for “D iam ond B ill” and his
blonde com panion, and a n o th e r cou­
ple, w ho sta rte d east from C alifornia

BANKS

Bought and Sold

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
37 Years Satisfactory Service.

THE CHARLES E. WALTERS CO.

a sh o rt tim e ago and have left a tra il
of co u tn erfeit tw en ty dollar travelers
checks in drug stores and filling sta­
tions en route.
“D iam ond Bill,” so-called because of
a large diam ond set in an u p p er left
tooth, and his blonde accom plice are
tra v e lin g in a 1936 Buick. T hey are
alleged to have 2,000 of th e tw en ty dol­
lar checks w hich are draw n on th e
N ational City B ank of San Francisco.
The o th er couple, trav elin g in a 1941
B uick sedan, are said to have 9,000 of
th e w orthless checks.
W illiam A. K ovanda, 23, basketball
le tte r m an a t th e U n iversity of N e­
b ra sk a th ree y ears and senior class
p resid en t in 1939, died recen tly in a
D enver hospital afte r a prolonged ill­
ness caused by a b rain abscess.
A flying cadet, he joined th e arm y
a ir corps in 1941 and w as stationed a t

Miss Jo y H edges of Indianola, who
has been em ployed in a b an k a t D u­
ran t, Iowa, has tak en a position as
bookkeeper at the F irs t N ational B ank
of F u llerto n . She fills a vacancy in
th e personnel of th e bank, left by the
resignation of W alter H artm an, w ho
w as a ssistan t cashier and w ho has en ­
listed in th e N aval Reserves.

Pioneer Banker Dead
W illiam M. Low m an, pioneer real
estate dealer and banker, died at his
hom e in H astings recently. He had
been a real estate m an in H astings
since 1878 w ith o u t in terru p tio n . He
w as director of th re e different banks
there, vice presid en t of one and p resi­
d en t of another.
H e w as active in com m ercial clubs
and th e cham ber of commerce.
“My wife told me to ask you for a
raise.”
“All right, I ’ll ask m y w ife is I can
give it to you.”

To Satisfy You
Correspondent service at the CONTINENTAL
NATIONAL BANK of Lincoln h a s but one g o a l—
the thorough satisfaction of our clients. Through
m an y y ears, stead ily grow ing in resources it h as
constantly delivered com plete service
to correspondents.
WE INVITE YOUR CORRESPONDENT ACCOUNT

C

o n t in e n t a l

N

a t io n a l

B a n k
°f

LIN CO LN
M em ber F e d e r a l D e p o sit In su ra n ce

C orporation

OM AHA. N EB R A SK A

N orthwestern Banker

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

May 1942

54

LIVE STOCK N A T I O N A L BANK
O

M

A

H

A

S ta te m e n t o f C ondition April 4, 1942

RESOURCES

LIABILITIES

Loans and Discounts

$9,115,291.03

$500,000.00

Capital Stock (Common)

Bonds and Other Securities

45,561.98

Surplus (Earned)

500,000.00

Stock in Federal Reserve Bank

30,000.00

Undivided Profits

391,703.20

Reserve for Taxes, Interest, etc.

204,985.34

Banking House and Fixtures

1.00

Other Real Estate

None

U. S. Gov. Securities $6,144,990.35
(L ess th a n M ark et V alue)

Unearned Discount

8,075.68

Dividends Unpaid

5,056.50

Deposits :
Banks

Cash, Sight Exchange
and due from
Fed. Res. Bank
6,715,118.28 12,860,108.63

$10,785,938.29

Other Deposits

9,655,203.63 20,441,141.92

$22,050,962.64

$22,050,962.64

CAPITAL, SURPLUS &

LOANS &

UNDIVIDED PROFITS

DISCOUNTS

DEPOSITS

April 4, 1933

$614,008.00

$1,885,786.91

$4,130,565.06

April 4, 1936

735.748.81

1,845,763.50

11,342,565.11

April 4, 1939

960.581.82

6,318,075.88

13,602,809.38

April 4, 1942

1,391,703.20

9,115,291.03

20,441,141.92

O FF IC E R S AND D IR E C T O R S
ALVIN E. JOHNSON

H. C. KARPF

W. P. ADKINS

P resid e n t

V ice P re sid e n t

C h a irm a n

HOWARD O. WILSON

R. H. KROEGER

V ic e P resid e n t

V ice P resid e n t

PAUL HANSEN
C a s h ie r

L. V. PULLIAM

C. G. PEARSON

A sst. C ash ie r

H. H. ECHTERMEYER

A sst. C a sh ie r

A sst. C a sh ie r

H. B. BERGQUIST
C oal a n d G ra in

L. S. BURK

JAS. J. FITZGERALD

C hicago

Secy. C om m ercial Sav.
& L oan A ssn.

T. E. GLEDHILL

LEO T. MURPHY

HERMAN K. SCHAFER

Farmer

M gr. A llie d M ills, Inc.

P res. M an e y M illing Co.

CARL A. SWANSON
P res. Jerp e Com. & C old S to rag e Co.

This Bank Has No Affiliated Companies
Member of Federal Reserve System and Federal Deposit Insurance Corporation

Northwestern Banker

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

May 1942

55

IOWA
A. T. D O N H O W E
P re s id e n t
D es M oines

FRA N K W A RN ER
S e c re ta ry
D es Moines

th e executive council of th e A m erican
B ankers A ssociation in F ren ch Lick,
Indiana.
The council, governing body of
ABA, consists of about 130 m em bers
and holds a m eeting each spring in
addition to its late Septem ber m eeting
in conjunction w ith th e an n u al ABA
convention, w hich th is y ear w ill be in
D etroit.
Iow a m em bers of th e council besides
M iller are B. M. McKee, M uscatine,
and C. A. Diehl, Des Moines.

Annual Forum Dinner
New Bank Building
More th a n 3,000 m en, w om en and
child ren p articip ated in th e open house
festivities in th e new A m es T ru st and
Savings B ank Building, w hich w as
opened for business recently.
F av o rs w ere given to all visitors,
w om en receiving roses, m en cigars
and child ren candy.
In a g en eral sta te m e n t th e b an k offi­
cials said “W e are h ap p y a t th e accept­
ance of th e new b uilding m anifested
by th e people of S tory county an d a p ­
preciate the cooperation in th e opening
extended by scores of firm s an d in d i­
viduals.”
The perso n n el and w ork in g force at
th e p re se n t tim e consist of th e follow­
ing officers and directors:
Officers: Clay W. Stafford, president;
L. B. Spinney, vice president; G. R.
Alley, cashier; O rrin H. Johnson, as­
sista n t cashier; H. P. McNeil, a ssista n t
cashier.
The d irecto rs are G. R. Alley, J. B.
Davidson, R. D. F eldm an, G. E. M cF ar­
land, C harles Reynolds, L. B. Spinney,
Clay W. Stafford, K. W. Stouder and
F. R. W hite.
O ther em ployes are: P au l K lingseis,
teller; Tom Youssi, teller; H elen Ma­
honey, secretary; R alph Bean, teller
and auditing; A llan Gibb, proof d e p a rt­
m ent; M ary M artin, tra n s it and collec­
tions; A gatha P an ten b u rg , statem en ts
and safety deposit vault; Lucille Col­
lins, bookkeeping dep artm en t; R u th
F a u lk n e r, bookkeeping d e p a r t m e n t ,
and George S horten, custodian.

B ank, and $100,000, F irs t F ed eral State
Bank.

A ccepts Bank Position
Noel T. Robinson, 37, has been ap ­
pointed a ssistan t tru s t officer of the
C entral N ational B ank & T ru st Com­
p any of Des Moines.
E. F. Buckley, C entral N ational p res­
ident, said Mr. R obinson assum ed his
new duties May 1st.
Mr. R obinson, a grad u ate of N orth
H igh School in 1923, atten d ed D rake
U n iversity one year and studied law at
Des M oines college of law four years.
He form erly w as associated w ith the
Iowa-Des Moines N ational B ank &
T ru st Company.

Attends Spring Meeting
J. J. Miller, cashier of th e W aterloo
Savings Bank, re tu rn e d hom e recently
a fte r atten d in g th e spring m eeting of

C ulm inating a w in ter series of lec­
tu re s on b anking problem s, th e annual
forum d in n er of th e Sioux City ch ap ter
of th e A m erican In stitu te of B anking
w as held last m onth a t th e M ayfair
H otel in Sioux City.
P residents, vice p residents and o th er
b an k officials w ho conducted th e lec­
tu re program w ere present.

Receives A . I. B. Training
Em ployes of th e Ames T ru st and
Savings B ank are receiving tra in in g in
th e A m erican In stitu te of B anking
studies, sponsored by th e educational
section of th e A m erican B ankers Asso­
ciation.
In th e Story county study group, six
em ployes of th e Ames T ru st and Sav­
ings have com pleted six y ears of study.
T hey are:
R alph Bean, Tom Yaussi, H om er Mc­
Neil, P aul K lingseis, O rrin H. Johnson
and Roger Alley.

Eight Banks G e t Deposits
E ig h t Des M oines b an k s have been
designated by th e city as depositories
for m unicipal funds th is year.
T he banks, and th e am ounts th a t th e
council has set as lim its for deposits
in each, are: $1,000,000 lim it each,
Iowa-Des M oines N ational B ank and
T ru s t Com pany, B an k ers T ru st Com­
p an y and C entral N ational B ank and
T ru s t Company; $500,000, V alley Sav­
ings Bank; $250,000 each, Capital City
S tate B ank and Des M oines B ank and
T ru s t Company; $150,000, Iow a State

NEW HOME OF L. W. ROSS
P ic tu re d a b o v e is th e new hom e re c e n tly o ccupied b y L. W. Ross, vice p re s id e n t
o f th e C itiz en s S ta te B a n k o f O a k lan d , Io w a. T he house is lo c a te d on a h ig h
h ill o v e rlo o k in g th e N ish n a b o tn a R iv e r v a lle y , w ith a n u n o b s tru c te d v iew fo r
m an y m iles. T he first sto ry o f th e house is c o n stru c te d fro m W isco n sin L a n n o n
stone, a n d th e second sto ry fra m e . T h ere a re firep laces a t th e en d s o f th e liv in g
room a n d also of th e re c re a tio n room . T he d in in g room a n d liv in g room a re
lo c a te d a t th e b a c k of th e d w elling.

Northwestern Banker

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

May 19^2

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

VERY DAY S E R VI C E
T O T H E PUBLIC T H R O U G H CHECKING,
SAVINGS AND SAFETY DEPOSIT
A s e v e ry e x p e rie n c e d b a n k e r c a n testify, th e good-w ill e n jo y e d b y a b a n k
is v ita lly a ffe c te d b y th e a ctiv itie s of th e s e th re e d e p a r tm e n ts — C h ec k in g ,
S a v in g s a n d S a fe ty D eposit.
T h ro u g h th e s e d e p a rtm e n ts , th e c u sto m e r u s u a lly h a s h is m ost fre q u e n t
c o n ta c ts w ith h is b a n k .

T he m o re p le a s a n t th e c o n ta c t, th e b e tte r th e

c u sto m e r likes th e b a n k .
" C o n ta c t w ith th e c u sto m e r" h a s lo n g b e e n a p o in t of s tu d y w ith us. To
o u r k n o w le d g e , w e h a v e m a d e n o s e n s a tio n a l d isco v e rie s, or s ta rtlin g in ­
n o v a tio n s.

But th e g r a d u a l im p ro v e m e n t in th e c o n d u c t of th e s e v ita l d e ­

p a rtm e n ts h a s c e rta in ly b e e n a v ita l force b e h in d th e s te a d y g ro w th in
re s o u rc e s — from $2,600,000 in 1917, to m o re th a n $26,000,000 in 1942.
C o n tin u a l s tu d y o n w a y s to im p ro v e se rv ic e h a s b e e n e q u a lly im p o rta n t
in th e c o n tin u a l g ro w th of o u r b u s in e s s w ith c o rre s p o n d e n t b a n k s — b u s i­
n e ss in w h ic h w e a r e a lw a y s p ro u d to n o te p ro g re ss.

M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N


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

58

• I OWA NEWS *
New Teller
C harles D. Thom ason, a teller a t th e
Iow a S tate B ank of Des Moines, has
enlisted in th e U nited States Coast
G uard and w ill be succeeded a t th e
b an k by M. J. Dwigans.
Mr. D w igans for 18 y ears w as asso­
ciated w ith W essling Services, counsel­
ors on b an k public relations. D uring
p a rt of th a t period, th e firm operated
the L y tto n Savings Bank, L ytton,
Iow a, an d la te r th e F irs t N ational
B ank of W est Des Moines. F o r th e
last tw o y ears D w igans has been office

m anager for W h itak er Auto E xchange
of Des Moines.

form er vice p resid en t of th e com pany
and co-defendant w ith C arpenter.

Cashier Acquitted

Former Banker Dies

H. M. C arpenter, cashier of th e Monticello State Bank, w as acquitted by a
F ed eral ju ry recen tly of securities act
violation and m ail frau d charges in
connection w ith th e affairs of th e in ­
solvent Com m ercial In v estm en t Corpo­
ration.
T he ju ry rep o rted to Judge C harles
A. Dewey th a t it w as still deadlocked
w ith respect to E v e re tt G. H orner,

J. P. K irby, 75, of E stherville, died
suddenly last m onth from a h e a rt a t­
tack, w hile rak in g his lawn.
Mr. K irby came to E sth erv ille from
E m m etsb u rg in 1887 and organized th e
F irs t N ational B ank there. T his in sti­
tu tio n w as later th e head of several
o th er banks, including th e form er
State B ank of A rm strong. In later
years, Mr. K irby w as m anager of th e
F o rd agency in E sth erv ille and since
1937 has sold insurance.

V

Elect County Officers

THE NATIONAL BANK
OF WATERLOO
------------------------------------★ ------------------------------------

STATEMENT OF CONDITION
as at the close of business A p ril 4, 1942

RESOURCES
Cash an d d u e fr o m b a n k s________________________ $ 3 ,9 7 4 ,1 4 3 .9 5
L oans and d isc o u n ts_______________________________
3 ,0 5 8 ,2 8 1 .6 8
U . S. G overnm ent se c u r itie s_______________________
1 ,0 1 4 ,3 5 9 .3 8
State, c o u n ty and m u n ic ip a l se c u r itie s___________
2 ,2 5 7 ,4 6 1 .2 2
O ther b on d s ______________________________________
1 4 0 ,4 8 2 .0 7
Stock in F ed eral R eserve B a n k ___________________
1 5 ,0 0 0 .0 0
3 ,4 4 6 .5 2
O v e r d r a f t s ________________________________________
F u rn itu re an d fix tu r e s ____________________________
8 ,4 1 6 .3 0
A ccrued in terest r ec e iv a b le _______________________
4 4 ,6 5 5 .0 5
$ 1 0 ,5 1 6 ,2 4 6 .1 7

LIABILITIES
C apital stock — c o m m o n _________________________ $
2 5 0 ,0 0 0 .0 0
S u rp lu s -----------------------------------------------------------------2 5 0 ,0 0 0 .0 0
U n d ivid ed p r o fits__________________________________
1 1 6 ,7 8 4 .4 9
R eserve fo r ta x e s, in terest, e tc .___________________
7 8 ,1 3 4 .6 2
In terest c o lle cte d bu t n o t e a r n e d _________________
1 3 ,8 2 5 .4 3
D e p o s i t s -----------------------------------------------------------------9 ,8 0 7 ,5 0 1 .6 3
$ 1 0 ,5 1 6 ,2 4 6 .1 7

★

OFFICERS
J ames M. Graham.......President
Chas. S. McKiNSTRY._._Fice Pres.
R. L. P enne......................Cashier

H. F. H offer....Hssistant Cashier
R. L. Kilgore...A.s-.sisiaiU Cashier
A. J. Burk.......Assistant Cashier

M e m b er F ederal R eserve S ystem
M e m b er F ederal D eposit Insurance C orporation

Northwestern Banker

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

May 1942

At th e an n u al election of th e B enton
County B ankers A ssociation held last
m onth a t V inton, P aul G roszkruger,
p resid en t of th e Citizens N ational
Bank, Belle Plaine, w as elected p resi­
den t for th e th ird tim e, and F. J. H os­
kins, cashier of th e K eystone Savings
B ank at K eystone, w as re-elected sec­
re ta ry and tre a su re r of th e organiza­
tion.

4.

Banking Office Opened
N. E. Kelley, cashier of th e F arm ers
& M erchants S tate B ank in W interset,
announces th a t his firm has opened a
b anking office in Boonville, u n d er th e
m anagem ent of E. E. Cushm an. C ush­
m an form erly m anaged th e sam e office
for th e Valley Savings B ank of Des
Moines, w hich closed its office a t
Booneville a m onth ago. The F arm ers
& M erchants B ank also operates offices
in St. C harles an d O rient, Iowa.

County Association Meets
T he Sioux County B ankers Associa­
tion m et a t M aurice recently. A big
d in n er served by ladies of th e F irs t
R eform ed C hurch w as followed by a n ­
nu al election of officers.
Lew is Ju n g ers of H ospers w as
elected president; Jo h n B. M eyer of
H ull, vice president. Dewey K uiken
of M aurice w as re-elected secretarytreasu rer. S peakers w ere P. B. Mouw,
W ar Savings Bonds, ch airm an for
Sioux county, and Rev. R obert Chapler
of H aw arden.

*

New Cashier
The E xchange S tate Bank, Springville, w hich w as recen tly c h artered u n ­
der th e Iow a law s to continue th e
b anking business established in 1878
by J. S. B utler, and know n as The
E xchange Bank, announces th e resig ­
n atio n of its cashier, Sam uel Jam es,
Jr., and th e election of Clifton M.

c

59

• I OWA NEWS *
P a rk e r to th a t official position. Sam,
as he is fam iliarly know n to alm ost
every one in L in n county, w ill ta k e a
w ell earned, and long delayed vacation.
It is hoped by h is m an y friends th a t
he m ay enjoy som e of those p leasures
w hich his fo rty y ears of active an d a t­
ten tiv e service to th e b an k m ay have
caused him to postpone u n til now.
Mr. P a rk e r com es to th e in stitu tio n
from Cedar R apids and is an ex p eri­
enced b an k executive, hav in g h ad
m an y y e a rs of successful b an k in g at
L aw ler, Iowa.
M argaret B u tler E m m ons, g ra n d ­
d a u g h te r of th e foun d er of th e E x ­
change B ank, is p resid en t of th e re ­
cently c h a rte red in stitu tio n .

To Meet in September

of th e H om e O w ners L oan C orporation
for th e last six and one-half years, is
th e new cashier a t th e F irs t State B ank
of S tate Center. Mr. W arnke, w ho w ill
also serve as secretary of th e board of
directors, w ill tak e th e place of A. M.
Sieh, w ho w ill be inducted into th e
U nited S tates A rm y soon. Mr. Sieh
has served as vice p resid en t and cash­
ier of th e local b an k for th e last six
years. H e w ill re ta in his position as
vice p resid en t of th e b an k and m em ­
b er of th e board of directors.

To Pay 10% Dividend
The U nion Savings B ank of D aven­

p o rt receivership recen tly w as g ran ted
a u th o rity by D istrict Judge W. R.
M aines to pay a 10 p er cent dividend of
$695,369.48 on or before May 13th.
The paym ent, according to th e appli­
cation, w ill be m ade out of $723,529.99
on h an d as of A pril 3rd, th e difference
to be retain ed for operating expenses
and as reserv es ag ain st certain o ther
claims.
P revious paym ents to depositors in ­
clude one of 40 p er cent a t th e tim e
th e receivership w as begun an d subse­
q u en t dividends of 10 and 15 p er cent
of th e rem ain in g 60 p er cent.

r

N ot only has th e Ju n io r Council of
A dm in istratio n , b u t also th e ju n io r
and senior b an k staff m em bers of
th e b an k s of Iow a voted to hold th e
n e x t Ju n io r B ankers C onvention a t th e
sam e tim e as th e senior convention,
nam ely, in Septem ber, 1942. T h ere­
fore, th e n e x t convention of th e Iow a
Ju n io r B an k ers A ssociation scheduled
to be held in Des M oines on Ju n e 7 and
8, 1942, is now postponed u n til Septem ­
ber, 1942. T his is in th e in te re st of
econom y on tire s an d cars an d tim e
d u rin g these w ar days.

This EXPERIENCE
may be useful to you
S in c e 1 8 6 8 th is i n s t i t u t i o n

h as

c o -o p erated w ith b an k s th ro u g h ­

Visit Excelsior Springs
Mr. an d Mrs. A rth u r Donhowe, vice
p resid en t of th e C entral N ational B ank
& T ru s t Com pany, Des Moines, and
p resid en t of th e Iow a B an k ers Asso­
ciation, and Mr. an d Mrs. R alph Bunce,
d ep u ty su p e rin te n d e n t of banking, Des
Moines, recen tly re tu rn e d from a
w eek ’s v isit a t E xcelsior Spring, Mis­
souri.

o u t th e m id d le w est in e x ten d ­
in g c re d it fa c ilitie s to s o u n d
co m m ercial b o rro w ers.
T h is experience is at y o u r disposal
w ith o u t o b lig a tio n .

Lectures at University
F ra n k W arn er, se cretary of th e Iow a
B an k ers A ssociation, Des Moines, w as
a speak er before th e classes on m oney
and b an k in g a t th e S tate U n iv ersity of
Iow a a t Iow a City last m onth. Mr.
W a rn e r talk ed upon “Some P h ases of
B ank A d m in istratio n .” F o r th e p ast
17 j^ears Mr. W a rn e r has been an a n ­
n u al le c tu re r before th e m oney and
b an k in g classes a t th e u n iv ersity .

M e

LIV E S T O C K
zAhticna/ B A N K
ESTABLISHED

1868

U N IO N S T O C K YARDS

Warnke Replaces Sieh
A. J. W arn k e of Des Moines, w ho
h as served as S tate Service S upervisor
Experienced banker desires connection
in one or two-man bank in Iowa or Min­
nesota. With present employer 30 years.
F ifty years old, married, Mason, Metho­
dist. Will purchase small interest. W rite
E. C. O., Northwestern Banker.

Member Federal Deposit Insurance Corporation

V
Northwestern Banker


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

May 1942

60

• I OWA NEWS •
15 Per Cent Dividend
The approxim ately 3,800 holders of
tru s t certificates in th e d epositors’
tru s t of th e old F irs t B ank & T ru st
Com pany of O ttum w a w ill receive
checks for slightly m ore th a n 15 p er
cent of th e am o u n t still due th em from
th e b ank about M ay 15th.

The face value of certificates on
w hich th e 15 per cent w ill be paid is
$624,834. The paym ent, to taling about
$93,000, w ill come out of th e $104,785
now held by th e receiver.

Check Adding Contest

The Des M oines ch ap ter of th e A m er­
ican In stitu te of B anking held its an ­
nual check adding and m oney counting
contest a t the Iowa-Des Moines N atio n ­
The final p aym ent w ill m ean the de­ al B ank and T ru st Com pany last
positors, w hose funds w ere frozen at m onth.
th e tim e of th e national bank holiday
The ch ap ter is com posed of ju n io r
of 1933, w ill have received about two- officers and em ployes of th e banks of
A nnouncem ent of th e p ay m en t w as
th ird s of th e ir original deposits. F ifty
m ade by Clyde E. Jones, a tto rn e y for
Des Moines.
th e receiver, a fte r a stip u latio n of p er cent w as paid w hen th e b an k re ­
The featu re event—th e adding m a­
pending differences of p arties in th e
opened and a 10 per cent p aym ent w as
chine contest, in w hich each contest­
action w as signed.
a n t added 150 checks—nearly ended in
m ade in 1936.
a dead h eat w hen Elw ood Compton,
B ankers T rust, finished in one m inute
38 2/5 seconds, and V ernon G rant of
the sam e bank w ent th e ro ute in one
m inute and 39 seconds.
Compton, w ho had w on th e event
five tim es in p ast years, received $15 in
prize m oney, and G rant got $10.
O ther w inners, in th e order th ey fin­
ished: A rnold D ressier, C entral N a­
tional; Don P ru n ty , C entral N ational;
O T T U M W A , I O WA
H arold K ester, B ankers T rust; E lm er
Olson, Iowa-Des Moines; Dale Sm ith,
Member of Federal Reserve System
C entral N ational; F ra n k Haag, B ank­
ers T rust; L. A. Rodenbaugh, Iow a
Statem ent of Condition as of A pril 4, 1942
State; F o rre st G albraith, Iowa-Des
Moines; M axine Costello, Iowa-Des
Moines.
A nother close race w as th e adding
RESOURCES
m achine relay race in w hich th ree
m em bers of a team each added 50
L o a n s and D is c o u n ts .................................................................. $2,355,325.44
checks.
B ank B u ild in g ..............................................................................
107,500.00
The C entral N ational B ank and
Furniture and F ix tu re s and S a fety D e p o sit V a u l t s ...
25,988.03
T ru st team , m ade up of A rnold D ress­
O ther R eal E s t a t e .........................................................................
7,000.00
ier, Don P ru n ty and A rt McClintic,
S tock in F ed eral R eserve B a n k ..............................................
15,000.00
finished in one m in u te 53 1/5 seconds
O verdrafts .......................................................................................
4,711.29
to w in a $6 prize. R ight behind w as
U . S. B o n d s .......................................................$ 288,276.75
th e B ankers T ru st team com posed of
M unicipal B on d s ............................................ 1,709,916.79
C harles W illiam s, V ernon G rant and
O ther M arketable B o n d s ............................
523,936.07
Elw ood Compton, w hose tim e w as one
Cash and E x c h a n g e ....................................... 2,802,763.99
5,324,893.60
m inute 54% seconds.

H i HI inMS! tO.

$7,840,418.36

L IA B IL IT IE S
Capital (C o m m o n ) .....................................................................$ 300,000.00
Surplus ..............................................................................................
200,000.00
U n divided P rofits and R e s e r v e s ............................................
122,755.23
D e p o sits ............................................................................................ 7,217,663.13
$7,840,418.36

O F FIC E R S
FR A N K VON SCHRADER, Chairman o f Hoard and President
H. L. POLLARD, V ice President
W. C. M ILLER, A ssistant Cashier
R. W. FU N K , V ice President
FRED DIMMITT, A ssistant Cashier
MAX VON SCHRADER, Cashier
FRANK M. POLLARD, A sst. Cashier
C. P . GLENN, A ssistant Cashier
C. G. M ERRILL, Trust Officer
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o ra tio n

Northwestern Banker

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

May 1942

F o rre st G albraith, Iowa-Des Moines,
counted correctly $454.21 in bills and
sm all change in one m in u te 4 seconds
to w in first prize of $5. Dale Sm ith,
C entral N ational, took second and $3
in one m in u te 17 seconds.
Iowa-Des M oines e n tra n ts m ade a
clean sw eep of th e adding m achine con­
test for em ployes w ith less th a n tw o
y e a rs’ experience. Bob P ersh in g w as
first in tw o m inutes 13 seconds to w in
$3. R osetta R inggenberg took second
and $2, and M ary M cCarthy, th ird , and
$ 1.

L. A. R odenbaugh, Iow a State, w on
$2 for guessing closest to th e n u m ber
of pennies in a glass jar.
E d Bliquez, p resid en t of th e chapter,
w as in charge of th e events, and the
B urroughs A dding M achine Com pany
provided th e prizes.

C

61

IOWA
A ccepts Bank Position
A rchie Gietz, C arroll county tre a s ­
u re r, ten d ered his resig n atio n to th e
board of su p erv iso rs recently, th e re s ­
ig nation to tak e effect May 1st.
T im othy J. Ryan, p re se n t deputy
tre a s u re r an d for m an y y ears county
tre a su re r, has been appointed by th e
board to fill out G ietz’s u n ex p ired term .
In an nouncing his resignation, Mr.
Gietz also announces he is accepting a
position as a ssista n t cashier of th e
C arroll C ounty S tate B ank of Carroll.

Heads New Department
W. K. B ram w ell, p resid en t of th e
H ard in C ounty Savings B ank of Eldora, an nounced recen tly th e election
of S. R. D yer of E ldora as vice p re si­
den t of th e b an k in charge of a new
d e p a rtm e n t designated as co n su m er’s
loans.
T he new d e p a rtm e n t w as created for
th e purpose of b e tte r serv in g th e
b a n k ’s custom ers along lines of sm all,
in dividual loans secured by personal
pro p erty , and w ill be located in th e
b an k building in th e offices fo rm erly
occupied by Dr. Jansonius.

NEWS

Cow, Sow or Hen to y o u r production
program .” The m ailing th e n w en t on
to say th a t th e F irst N ational B ank is
p repared to su p p o rt th e Food for F re e ­
dom program .

Hills Bank Remodels
S tarted in F eb ru ary , th e H ills B ank
and T ru st Com pany has com pleted an
extensive rem odeling program w hich
includes a new fro n t and new interior.
The fro n t is in glass block, light
brow n b rick and red granite, w ith th e
nam e of th e b an k inscribed in th e
granite.

Bank Founder Dead
J. J. (Doc) M aloney, founder of th e
La P o rte City B ank in 1937 an d p re si­
d en t of th e in stitu tio n for th re e years,
died suddenly of a h e a rt a tta c k last
m o n th w hile read in g a new sp ap er in
his hom e a t S pirit Lake, Iowa.
Mr. M aloney sold his in te re st in th e
b an k a t La P o rte City in 1940.

The in terio r is done in w hite oak. A
new ceiling has been installed and all
room s redecorated. L ighting is w ith
glass block and m odernistic fixtures.
A ru b b er com position is used for floor
covering. A ccom m odations include p ri­
vate office, directo rs’ room, w ork area,
lo b b y and vault.
Officers of th e b ank include: J. E.
Pechm an, president; LeRoy S. M ercer,
vice president; A. F. Droll, cashier, and
T. R. Jones, a ssistan t cashier.

Pioneer Banker Dies
Oscar Casey, 84, died recently of a

M IS S IS S IP P I VALLEY
T R U S T C O M PA N Y
ST.

LOUIS,

MISSOURI

Statement of Condition A p ril

19 f 2

RESOURCES:

New Assistant Cashier
E arle B row n has assum ed his duties
as th e new a ssista n t cashier of th e
F irs t N ational B ank of Colfax.

•

C ash a n d D u e fro m B a n k s .................................................. $ 56,132,059.97
U . S. G o v e rn m e n t S e c u r itie s .............................................. 34,905,030.04
( I n c lu d in g th o se p led g e d , $18,029,983.15)
In v e s tm e n t in M ississip p i V alley C o m p a n y , w h o lly
o w n e d su b s id ia ry , c o n s is tin g of o b lig a tio n s of
U . S. G o v e r n m e n t................................................................
3,800,000.00
B o n d s a n d O th e r S e c u r itie s ................................................
6,926,362.38
F e d e ra l R e se rv e B a n k S t o c k ..............................................
243,000.00
L o a n s an d D is c o u n ts .............................................................. 52,967,720.91
C u s to m e rs ’ L ia b ility on A c c e p ta n c e s a n d L e tte r s of
C re d it ..................
194,376.95
R eal E s ta te ................................................................................
870,030.69
A c c ru e d E a rn in g s R e ce iv a b le ( N e t ) ..............................
292,300.37
O th e r R e so u rc e s .......................................................................
61,816.07
$156,392,697.38

LIABILITIES:

Feeding the World

Capital

A d irect m ailing piece in th re e colors
w as recen tly p rep ared by R obert Weidenbach, cashier of th e F irs t N ational
B ank of Eldon, an d sen t out to h u n ­
dreds of persons in th a t com m unity.
T he poster, if it m ay be term ed such,
called a tte n tio n to th e N ational Food
for F reedom program , and addressed
th e fa rm e r by saying, “T he Cow, th e
Sow and th e H en have alw ays been th e
m ost stable farm incom e producers,
y e a r in and y e a r out, of all o th er class­
es of a g ric u ltu re —add an o th e r good

S u rp lu s a n d U n d iv id e d P r o f i t s .........................................
3,843,961.40
A c c ru e d In te re s t, E x p e n s e s a n d 1 a x es P a y a b le
(n e t) a n d O th e r R e s e r v e s ................................................
895,380.44
A c c e p ta n c e s an d L e tte r s of C r e d it..................................
194,376.95
O th e r L ia b ilitie s .......................................................................
29,640.67
D e p o s its :
U . S. G o v e rn m e n t an d O th e r
P u b lic F u n d s ............................$ 13,197,145.40
O th e r D e p o sits ............................ 132,232,192.52
145,429,337.92

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

$156,392,697.38

87 Years
of B a n kin g E xperience

M e m b er F ederal D eposit
Insurance C orporation

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

6, 000, 000.00

..

. -,

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker

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

May 1942

62
-»

—• I OWA NEWS • h e a rt a tta c k a t th e hom e of his d au g h ­
te r in Iow a City.
Mr. Casey organized th e F irs t N a­
tional B ank of D ysart, and served as
its p resid en t from 1904 to 1912.

Waterloo's Banks Grow
Deposits and resources of W aterloo’s
banks have increased 15 p er cent in
the last year, statem en ts of th e b anks
show ed recently.
Deposits as of A pril 4th w ere $17,829,016.81, a gain of $2,347,821.98 over

the figure for th e corresponding date
in 1941.
R esources increased $2,447,338.17, to
reach $18,960,117.62.
D eposits and resources gained 4 per
cent in th e period of a little m ore th a n
th re e m onths since th e last statem ent,
D ecem ber 31, 1941.

Speaks at Women's Club
B usiness and P rofessional W om en’s
Club m em bers h eard a discourse by
W esley Swiler, cashier of th e B u rling­

ton Savings Bank, on “B anking and
th e B anking System , at th e ir m o n th ly
d in n er m eeting in H otel B urlington
last m onth.
Mr. Sw iler told of the ban k in g b u si­
ness u n d er present-day conditions. He
urged th a t all buy Defense Bonds, s ta t­
ing th a t th e only w ay th e w ar can be
financed is by p u rchase of bonds. He
told the need for m oney to produce all
th in g s necessary for th e w ar. “B uying
bonds is th e A m erican w ay of doing it
and we m u st keep it on a v o lu n tary
basis,” Mr. Sw iler explained.

Clever Advertising
Ben S. Sum m erw ill, presid en t of th e
Iow a State B ank and T ru st Com pany
of Iow a City, w orked out a v ery clever
bank ad v ertisin g plan, w hich w as
based on a contest asking b ank custom ­
ers and prospective ones to give a title
to a pictu re of H ow ard Neil (Sonny)

GROUP MEETINGS!
Our Iow a Group M eetings g iv e u s a ch an ce to get
together— and to work together.

Officers of this bank are

a lw a y s h a p p y to take part in th ese helpful sessio n s.
Helpful and constructive, too, is First N ational Bank
correspondent service— w here yo u can sa fely entrust ALL
your Sioux City items.

V

Buy
U n ite d S ta te s
D e fe n s e B o n d s
a t th is B a n k

A. G. Sam, President
J. P. Hainer, Vice President
J. R. Graning, Assistant Cashier
Fritz Fritzson, V ice Pres, and Cashier E. A. Johnson, Assistant Cashier
J. T. Grant, Assistant Cashier
W. F. Cook, Auditor
M EM B E R F E D E R A L D E P O S IT IN S U R A N C E C O R PO R A TIO N

I N S IO U X C IT Y
Northwestern Banker

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

May 1942

A m erica, H e re I Come

M adsen, a four-year-old chap w ho h ap ­
pened to w alk into th e b an k one day
w ith his father. A pictu re of “S onny”
appears on th is page.
The contest w as a “n a tu ra l,” b rin g ­
ing in alm ost tw o tho u san d titles. The
w inning title, “A m erica, H ere I Come,”
was subm itted by Mrs. F. M. B ark er
and Mrs. Wm. M errim an, both of Iowa
City, hence th e b ank paid out $10 in
D efense Stam ps to each of them . Sec­
ond choice title w as “ ‘B ud’ of A m er­
ica” and th ird w as “G row n only on
A m erican Soil.”

«
y

-y

63

Exchange Bank Stock

Resigns Position

A m u tu al a rra n g e m en t for exchange
of b an k stock in te re sts w as consum ­
m ated recen tly w h ereb y C. J. O brecht
of H olstein an d his associates acqu ired
th e stock in te re st of F. R. Jones in th e
H olstein S tate B ank an d Mr. Jones h as
re tire d as p resid en t and d irecto r of
th a t in stitu tio n . A t th e sam e tim e Mr.
Jo n es has ta k e n over th e stock in te re st
of O brecht in th e Ida C ounty State
B ank of Ida Grove and th e F irs t N a­
tio n al B ank of Sibley, Iowa, an d from
w hich in stitu tio n s Mr. O brecht has re ­
tire d as vice p re sid e n t and director.
A t a m eeting of th e b o ard of d irec­
to rs of th e Ida Grove Bank, a t w hich
th e resig n atio n of Mr. O brecht w as ac­
cepted, B ruce Gemmill, a ssista n t cash­
ier, w as elected a directo r to fill th e
vacancy. T he vacancy on th e board a t
th e F irs t N ational B ank of Sibley w as
filled by th e election of L. V. Overholtzer, cashier of th e Ida Grove Bank.
I t is th e in te n tio n of Mr. Jo n es to
divide his tim e betw een th e Ida Grove
and Sibley in stitu tio n s.

Mrs. Carl Sowers has resigned h er
position a t the S tate Savings B ank of
Carson, to be effective th e first p a rt of
May. The vacancy w ill be filled by
B etty N eighbors.

Bi-County Meeting
The L ouisa-W ashington C o u n t y
B an kers A ssociation m em bers and
th e ir w ives m et a t th e T rin ity M ethod­
ist Church in R iverside for th e ir b i­
m o nthly m eeting.
A fter th e supper, served by the
W om en’s Society for C hristian Service
of th e church, th e business m eeting
w as conducted by W illiam O’Loughlin,

Correction in March
Advertisement of The
Drovers Banks of Chicago

presid en t of th e Peoples T ru st and
Savings B ank of R iverside, and also
presid en t of the association.

Van Gorder Dies Suddenly
E dw in S. Van Gorder, Jr., p resident
of the A udubon F irs t State Bank, died
suddenly last m onth at his hom e in
A udubon, victim of a h e a rt attack.
Aside from an ap p aren tly m ild a t­
tack of flue, he h ad been in seem ing
good health.
Judge—You are charged w ith voting
th ree tim es. W h at have you got to
say about it?
P riso n er—T hen I ’ve been gypped.
T hey only paid me once.

FAST SERVICE
IN 1882

T h ro u g h a p rin te r’s erro r, th e com ­
p arativ e prices of chickens on J a n u ­
ary, 1941, and Ja n u a ry , 1942, w as incor­
rectly listed in dollars in th e M arch
N o r t h w e s t e r n B a n k e r ad v ertisem en t
of th e D rovers N ational B ank of Chi­
cago. T he prices should have been
listed in cents as follows:
V alue each, Ja n u a ry , 1942 . . 83.2c
V alue each, Ja n u a ry , 1941
65.4c
T he D rovers ad v ertisem en t in our
M arch issue is a splendid exam ple of
tim eliness an d in te re st in ad v ertisin g
copy and we are so rry th a t th is e rro r
occurred.

BUT FASTER NOW
THAN EVER

CO LLECTIN G AND
TRANSMITTING
LIVE STOCK
PROCEEDS

County Bankers Meet
T he M itchell C ounty B an k ers Asso­
ciation held a d in n er m eeting recen tly
a t th e H om e T ru s t & Savings B ank of
Osage recreatio n room . The vario u s
a g ric u ltu ra l groups of th e county w ere
re p re se n te d a t th e m eeting. Carl Field,
re p re se n tin g th e AAA; H arlan Koch,
county agent, an d Jo h n B artlett, Sm ithH ughes in stru c to r a t th e local high
school, all told of th e ir activ ities in re ­
g ard to th e w a r effort and m ade sug­
gestions as to w h a t th e b an k s could do
to cooperate.
A v a ila b le —Man, 55, married, city and
country bank experience. Exceptionally
well fitted for livestock and farm loans.
Had experience in several departm ents
of large city banks and managed some
country banks. W rite R. W. M., N orth­
western Banker.

ria.

DROVERS
B AN KS

'.GICALLY LOCATED TO CI IICAGOX MOKI
SOUARF-MILE OF I ERRI! ORI
.. , .

[mKMBKKS,

, I . . I 1 i. I f i I

. I i lI I .L. I I i I I. i

.

,

. .

FKDKRAL DEPOSIT INSURANCE COKPORATlONj
...

DROVERS NATIONAL BANN
DROVERS TRUST & SAVINGS BANK
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

Northwestern Banker

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

May 1942

64

IO W A
FRO M

N EW S

H ERE A N D

TH ERE

R. A. S w eet, vice presid en t and cash­
ier, Story C ounty S tate Bank, Story
City, is devoting m uch of his tim e to
serving on th e d raft board. B ill P eter­
son, a ssistan t cashier here, is very
proud of his tw o young daughters.
One is four y ears old and th e o th er is
five m onths old and both cam e from
an Iowa orphanage.

By J . A . Sarazen, Associate Editor
The F arm ers Savings Bank, Garwin,
has com pleted redecorating th e in te­
rio r of the b ank and in stalled a new
stoker.
L. JOHNSON, vice p resid en t and
p a re n ts of a baby boy born A pril 19th,
I. B. B leeker, president, Citizens
. cashier of th e Iow a F alls State
w eight 7 pounds, 14 ounces. T hey have
S
tate
Bank, Iow a Falls, has been con­
Bank, and Mrs. Johnson, are th e proud
one o ther child, a little girl.
valescing at his hom e for th e p ast few
w eeks, b ut is expected back a t the
bank soon.
J. A. S A R A Z E N

B

American Banking Aids The
"Food for Freedom” Program

H obby of E. J. Johnson, cashier of
the F a rm e rs Savings Bank, Stratford,
is gardening. Mr. Johnson says he ex­
pects to have a bigger and b e tte r g a r­
den th a n ever th is year.
S tatem ent of The State Bank, F ort
D odge, as of A pril 4th, list deposits of
$3,609,700, w hich is an increase of
$100,000 over th e first of th e year.
Loans and discounts am ount to $1,900,000, w hich is about th e sam e as the
first of th e year.
The F arm ers T rust & Savings Bank,
Buffalo Center, recen tly reached foot­

T h is year the farm ers o f our country have been
c alled u p o n to p ro d u c e the la rg e st am ount o f
fa rm p ro d u c ts in history. T h e foods, oils, and
fibers to be produced are essential for stren g th ,
h ealth , and critical m ilitary supplies . . . they are
truly m unitions o f W ar and tools o f V ictory.
T h e financing o f this vast argicultural production
is an im p o rta n t contrib u tio n to A m erica’s W ar
E ffort. It has been, and should continue to be,
the legitim ate function o f the rural bank.
T h e Banks and Bankers Department of
M erca n tile -C o m m e rc e contains m en w ith actual,
practical e x p e rie n c e in the field o f agricultural
credits. T h e ir cooperation is always available to
our correspondents.

MERCANTILE-COMMERCE
B an k an d T ru st C om pan y
SAINT
MEMBER

FEDERAL

Northwestern Banker

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

DEPOSIT

May 1942

LOUIS
INSURANCE

CORPORATION

ings of $1,000,000. Capital is $25,000
and su rp lu s w as increased to $50,000
th e first of th e year. In addition, th ere
is a nice undivided profits account.
M arcella B erg has been added as a
new em ploye a t th e F irs t N ational
Bank, Dayton. She atten d ed business
college a t F o rt Dodge and previously
w as em ployed as bookkeeper for a lo­
cal telephone com pany.

G racing th e fro n t cover of th e A gri­
culturist for M arch w as com ely Verdene B oyk en , d au g h ter of Wm. Boyken, presid en t of th e T itonka Savings
Bank. Miss B oyken is atten d in g th e
Iow a State College at Ames.
The P alm er State B ank w ill be five
y ears old M ay 15th. T he b ank paid its
first dividend last Ju n e of 6 per cent.
D eposits are aro u n d $225,000.
An in terestin g and profitable hobby
of R. F . B u schin g, cashier, H udson
S tate Bank, is w oodw orking. He has
a com plete set of equipm ent in th e
b asem ent of th e bank, w here he spends
m an y of his leisure hours. Some of
his equipm ent includes a lathe, band
saw, jo inter-plainer and a shaper.
P ractical th in g s are m ade, such as fu r­
niture.

65

The D ysart N ational Bank discon­
tin u e d accepting an y m oney on an in ­
te re s t b earin g basis tw o m o n th s ago.
D eposits are aro u n d $770,000.
Ah W. Johnson, president, F irs t N a­

tion al B ank, Cedar Falls, is C aptain of
H ea d q u a rte rs Com pany, 3rd B attalion,
Iow a S tate G uard, w hich w as o rg an ­
ized th re e m o n th s ago. Mr. Jo h n so n
w as 1st L ie u te n a n t A d ju tan t P ro v o st
M arshall a t A dvance G eneral H ead­
q u arters, A. E. F., T rier, G erm any,
d u rin g th e last w ar. C harlie McKinstry , vice p resid en t, N ational B ank of
W aterloo, and also a v e te ra n of th e last
w ar, is C aptain of M Com pany, local
Iow a S tate G uard. AAh E. B row n, cash­
ier, F irs t N ational, Cedar Falls, is
pro u d of h is son, W. E. B row n, Jr.,
w ho w as ju s t com m issioned 2nd L ieu­
te n a n t an d is assigned to th e in stru c ­
tio n al staff of th e in fa n try school a t
F o rt B enning, Georgia.

THE TREND OF LOANS
(C ontinued from page 12)
No loss of loan volum e is being ex­
perienced by th e Iow a Savings Bank,
Dike, according to Lee Chandler, cash­
ier. One year ago, on A pril 23d, vol­
um e stood a t $256,000 and th e sam e
date th is year, volum e stood at $298,000, a nice increase. T his does not
include corn loans or com m ercial pa­
per. Real estate loans rem ain at about
th e sam e level as a y ear ago. C attle

feeder loans rem ain v ery satisfactory,
Local loans a t the AVaterloo Savings
Bank, on A pril 4, 1941, am ounted to
$3,108,647, and on th e sam e date th is
year am ounted to $2,845,000. I t is in­
terestin g to note th a t in th e sam e pe­
riod deposits w en t from $7,702,000 to
$8,021,500. The increase in cash re ­
sources w en t from $3,188,617 to $3,455,246.

...

R o u t e y o u r W isco n sin Ite m s

DIRECT TO THE PO UT
»( Prompt C o lle e t i Ä

A\T. E. M ooty, director, G rundy N a­
tio n al Bank, G rundy C enter, has given
up his law practice to serve U ncle Sam
for th e duration.
E v e ly n P eterson succeeds L enora
Joh n so n as bookeeper a t th e Iow a Sav­
ings Bank, Dike.

The a n n u al m eeting of th e F a rm e rs
Savings B ank, B eam an, w as held A pril
7th, w ith all officers and d irecto rs be­
ing re-elected. T he b a n k enjoyed a
good year, according to AV. E. AVhorrall, vice p re sid e n t and cashier. T he
m eeting w as held in th e evening th is
y e a r to p e rm it th e bu sy fa rm e r stock­
holders to atten d . Follow ing th e m eet­
ing re fre sh m e n ts w ere enjoyed a t a
local cafe.

"D irevt to the ;m int ” b ecom e
—
the Fir.it W isconsin serves
m M ilw au kee correspondent
f a r over 85 p e r cent o f a ll
W isconsin banks! UNIQUEsta te w id e "coverage"!

A F ir st W is c o n sin a c c o u n t is y o u r m a ste r

T he F arm ers S tate B ank, Hope, has
stream lin ed th e te lle rs’ cages by add­
ing new long box ty p e fixtures, w hich
add to th e app earan ce and conveni­
ence.
R ay K alow , a ssista n t cashier, Secu­
rity S tate Bank, W aterville, h as been
given a leave of absence to serve in
th e U nited S tates A rm y. M iss D oris
C lem ons has been em ployed to suc­
ceed Mr. Kalow.

k e y to p r o m p t, e ffic ie n t c o lle c tio n o f
W is c o n s in c h e c k s a n d d ra fts. T h is b a n k
is th e la r g e st in th e W is c o n s in -I o w a D a k o ta -M in n e so ta area . . . se r v in g m o r e
th a n 5 0 0 W is c o n s in c o r r e s p o n d e n ts , as
w e ll as h a n k s in k e y c it ie s o f n e ig h b o r ­
in g sta te s. Y o u r in q u ir ie s are in v ite d .

BAN K S and BANKERS DIVISIO N
G e o rg e T .

Succeeds Father
C lark A rnold, Sr., of A udubon re ­
cen tly w as nam ed vice p re sid e n t of
th e F irs t S tate B ank of A udubon, and
a m em ber of its board of directors, suc­
ceeding his fath er, th e late H a rry A r­
nold, in b o th positions.

C a m p b e ll..................................... V ic e P r e s id e n t

R ic h a r d

J . L a w l e s s ................A s s i s t a n t V ic e P r e s id e n t

D o n a ld

A . H a r p e r .................. A s s i s t a n t V ic e P r e s id e n t

M em b er of the F e d e ra l
D eposit In su ran ce C o rp o ra tio n

0 f

M
'

Northwestern Banker

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

May 1942

66

No change to speak of has ta k e n
place in th e loan volum e a t th e Titonk a Savings B ank in th e last year,
according to p resid en t W m . B oyken.
C. M. E van s, president, F irs t State
Bank, Conrad, says we have been ex­
perien cin g a dow nw ard tre n d in our
loan volum e d u rin g th e p ast few
m onths. On A pril 25th, volum e stood
a t $195,967 and th e sam e date th is

y e a r loans w ere dow n to $165,755, a
decrease of a little over $30,000.
Our loan volum e is holding up well,
says I. T. Park hurst, vice president,
F arm ers Savings Bank, G rundy Cen­
ter. Local loans on A pril 23, stood at
$490,000 w hich is an increase of $40,000 over last y ear on th e sam e date.
Of th is am ount $201,000 is choice
G rundy C ounty first farm m ortgages.

S ta te m e n t o f C o n d itio n as o f A p r il 4, 1942
ASSETS

L IA B IL IT IE S

L o c a l Lo a n s and Co rn L o a n s ............$

9 2 4 ,3 5 4 .6 1

B a n k B u i l d i n g ...........................

1 .00

Ca sh and E x c h a n g e ..................

8 5 1 ,3 0 1 .4 9

C a p ita l ........................................................ $
5 0 ,0 0 0 .0 0
S u r p l u s ........................................................
1 0 0 ,000 .00
U n d ivided P r o f i t s ....................................
4 8 ,6 0 3 .0 8
Reserves .....................................................
5 ,0 9 7 .8 4
D eposits:
C h eck in g . . . 8 1 , 2 7 1 , 5 9 9 . 4 4
T im e ...............
4 7 8 ,8 8 1 .4 1
C e rt. C h e c k s ..
4 9 2 .9 2
1 , 7 5 0 ,9 7 3 .7 7

$ 1 ,9 5 4 ,6 7 4 .6 9

$ 1 ,9 5 4 ,6 7 4 .6 9

U. S.

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

O th er B on d s

9 4 ,1 0 0 .0 0

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

8 0 ,4 1 7 .5 9

Fe d e ra l Reserve B a n k S to c k .

4 ,5 0 0 .0 0

F IR S T N A T IO N A L B A N K
H UM BOLDT, IOWA
C. W. G arfield, P re s id e n t

B. B. W atso n , C a sh ier

-QVALITYSERVICE

IOWA LITHOGRAPHING CO.
Edwin G . Ragsdale, Secy.— DES MOINES
Northwestern Banker

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

May 1942

AI Agena, at th e F a rm ers Savings
Bank, Garw in, em phasized th e w ord
“y e t” w hen he said our loan volum e
is not off yet. Loan volum e has re ­
m ained co nstantly around $160,000 d u r­
ing th e p ast year. D eposits have in ­
creased from $341,700 to $408,000.
The Lincoln Savings Bank, R ein­
beck, had th e h ig h est volum e of loans
in th e ir h isto ry on A pril 23, 1941,
w hen volum e stood a t $742,000. On
th e sam e date th is y ear liquidation had
reduced volum e to $653,500, a decrease
of $88,400. T his is still a v ery h ealth y
volum e of loans, considering th e de­
posits of th is bank of a little over one
m illion. P resid en t L. T. B ick et says
this is a heavy feeder te rrito ry for
both cattle and hogs and those need­
ing to borrow m oney are n o t going
back into th e m ark et so m uch at these
h ig h er prices.
C. F. H arris, president, State Bank,
Gladbrook, points out th a t th e tre n d
of loan volum e in his b ank is dow n­
w ard.
On A pril 25, 1941, loans
am ounted to $721,000 and on th e sam e
date th is y ear am ounted to $563,000,
a decrease of $158,000. M any feeders
no longer need assistance from th e
b ank to finance them selves and m any
feeders are som ew hat h e sita n t about
going back into th e m arket.
The
Production C redit C orporation has
nev er given us any trouble in th is
te rrito ry he says.
T he b ank has
financed m ore cheaper cattle th a n for
a long tim e w hich are being picked up
a t m ark et day sales, etc., a t a price of
aro u n d 10 cents p er pound. M any
farm ers are going stro n g er into hogs.
D eposits a y ear ago w ere $883,000 and
deposits on A pril 4th th is y ear
am ounted to $1,031,500, th e first tim e
over the m illion m ark on th e date of
call.
At th e G rundy N ational Bank, G run­
dy Center, loan volum e has show n a
norm al decrease. W hen w e visited
th e bank on A pril 23rd, volum e
am ounted to $327,000 and figures for
th e previous y ear am ounted to $398000.
The F arm ers S avin gs Bank, Traer,
is doing all right. The la tte r p a rt of
A pril a y ear ago loan volum e am ounted
to $459,800, and w hile th e volum e de­
creased to $413,000 by th e end of 1941,
it has again picked up to m ore th an
$434,000. The b an k has been paying
1 p er cent in te re st for th e la st five
y ears and in th is tim e deposits have
increased $300,000 and today are
aro u n d $855,000. Tim e m oney is neg­
ligible as it is only $155,000. In th is
five y ear period capital has been in-

67

—•
creased from $25,000 to $40,000 and th e
su rp lu s an d profits account has been
in creased from practically n o th in g to
m ore th a n $30,000.
W hen we called on R. F. B u sch in g
a t th e H udson S tate Bank, th e la tte r
p a rt of A pril, he said his loans to taled
$177,000, how ever, had w e stopped in
a day or tw o earlier, th e volum e w ould
have been som ew hat h ig h e r as a
couple of big feeder loans h ad ju s t been
paid off. L a st y e a r a t th e sam e tim e
volum e stood a t $202,000. T he cattle
feeders in his te rrito ry are cautious of
going back into th e m a rk e t a t these
h igh prices.

IOWA

NEWS

•-

ing held recen tly in th e P attee H otel
at P erry. All county banks w ere re p ­
resented.
O ther officers elected included N. P.
Black, cashier of the P e rry S tate Bank,
vice president; W. B. Crist, cashier of
th e local F irs t N ational Bank, secre­
tary -treasu rer, and O. D. E llsw o rth of
th e Dallas County S tate B ank a t Adel,

ch airm an of th e vigilante com m ittee.
Follow ing tran sactio n of business
m a tte rs discussions w ere held reg ard ­
ing the sale of D efense Savings Bonds,
in th e sale of w hich th e banks are co­
operating w ith th e U nited States gov­
ernm ent, and th e enocomic and finan­
cial aspects of th e w ar in relation to
banking.

RICH MANUFACTURING COMPANY
C L I NT ON, I OWA
---------1 9 Years---------

1923

1 942

Loans are up slig h tly a t th e F irst
N ational Bank, Cedar F alls, over a
y e a r ago, increasing from $382,000 to
$400,000.
D eposits have increased
$140,000 since th e first of th e year.
In th e course of th e y e a r loans have
decreased 12% p er cent a t th e F irst
N ational B ank, Traer, and are now a t
th e $175,000 level. This, how ever, is
an increase of $12,000 since th e first of
th e year. D eposits h ere are over
$800,000 and th is b an k has n o t paid any
in te re st on deposits since 1934.
Local loans are dow n n e a rly 20 p er
cen t d u rin g th e year, according to A.
C. T h o rn b u rg , president, Iow a F alls
S tate B ank.
D eposits am o u n t to
$904,000, w h ich is an in crease of $60,000
over a y e a r ago.
A t th e P a rk e rsb u rg S tate B ank, O.
A. Bailey, president, said his volum e
h as been holding fairly steady. On
A pril 22, 1941, loans and discounts
am o u n ted to $480,000 and on th e sam e
date th is y e a r volum e stood a t $450,000.

Manufacturing a complete line of
Houses—Rocking Horses—Educational Toys— Doll Furniture— Farm and
Animal Sets—Pull Toys— Garages—Sail Boats—Bath Tub Sets—Shooflies
Rich in Design
Rich in Appearance
They Bank With
Doll

NATIONAL

FIFTH AVENUE
SOUTH-226-

CLINTON, IOWA

Member Federal Reserve
System and Federal Deposit
Insurance Corporation

—THE END.

BANK PROFITS
(C ontinued from page 20)
T he “PAYC” plan is available in tw o
system s: (a) in w hich cu stom ers are
charged one dollar in advance for a
book of tw e n ty checks and (b) in
w hich checks are free an d th e custom ­
ers are ch arged five cents p er item .
B oth of th e plan s are good an d both
are profitable. Decision concerning th e
type to fit y o u r b an k is sim ply a m a t­
te r of p reference.— T H E E N D .

Johnson Elected President
C. S. Johnson, executive vice p resi­
d en t of th e F irs t N ational B ank, P erry ,
w as elected p resid en t of th e Dallas
C ounty B an k ers A ssociation a t a meet-

BANK

FIRST NATIO NAL BANK
CEDAR FALLS, IOWA

S ta te m e n t o f C o n d itio n as o f A p r il 4 , 1942
RESOURCES

LIABILITIES

Ca sh and D ue from B a n k s ..................$
U . S . G overn m ent B o n d s .....................
S ta te and m u n icip a l B o n d s ...............
O th er m ark eta b le B o n d s .....................
Stock in F ed era l R eserve B a n k . . . .
L o a n s and D is c o u n t s ..............................
O verd rafts ..................................................
B a n k in g H ouse, F u rn it u re and
F ix t u r e s ................................................
O th e r A s s e t s ............................................

7 2 4 ,7 8 2 .1 9
3 1 0 ,2 6 7 .8 4
4 3 4 ,4 8 3 .0 5
5 , 0 1 5 .5 0
3 ,6 0 0 .0 0
3 9 7 ,8 5 7 .6 7
3 5 .6 1

C a p ita l S t o c k .............................................$

1 0 0 ,0 0 0 .0 0

S u rp lu s, U n d ivid ed P ro fits, Reserves

D eposits

4 4 ,7 1 7 .2 5

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

1 ,7 8 3 ,5 1 9 .1 1

3 3 ,3 2 4 .5 0
1 8 ,8 7 0 .0 0

_______________________

S 1 ,9 2 8 .2 3 6 .3 6

8 1 ,9 2 8 ,2 3 6 .3 6

M ember F ed eral Reserve System
M ember F ed eral D eposit Insurance Corporation

Northwestern Banker

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

May 19^2

68
>

Story County Bankers W an t You
In A m es O n M ay

The P o st

Office B u ild in g in Ames

EM BERS of th e S tory C ounty
B ankers A ssociation extend a
cordial welcom e to come to
Ames on W ednesday, May 13th, to a t­
ten d th e an n u al m eeting of G roup Six.
A royal good tim e aw aits everyone, as
evidenced by an outline of the program
below.
Ames, th e “b ra in c e n te r” for Io w a’s
p a rt in th e fu tu re conduct of th e w ar,
is as busy as an y city in th e state, b u t
m aking less noise about its efforts to
w in th e w ar. As th e hom e of Iow a
State College, from w h ere Uncle Sam
has draw n, is d raw ing and w ill draw
a m ajo r portion of his m ilitary engi­
neers, chem ists, electricians and oth er
experts, Ames is w ork in g every h o u r
of every day of ev ery w eek to w in
th e w ar.
T here are no o u tw ard signs of such
effort visible, b u t to th e 12,555 censusrecord resid en ts of Ames and th e
6,500 resid en t stu d en ts h ere for all
or p a rt of each year, th e goals and
accom plishm ents are w ell know n.
W hile th e college is th e principal con­
trib u to r to the n a tio n ’s w ar effort,
th e Iow a State H ighw ay C om m ission’s
personnel is being called upon for
m ore and m ore m en tal and physical
co ntrib u tio n s in th e w ay of technical
advice and m anpow er.
T hen comes th e civilian coopera­
tion th ro u g h Red Cross first aid

M

Northwestern Banker

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

May 19^2

classes, life saying classes, n u tritio n
classes and alm ost every type of group
stu d y im p o rtan t to the safety of a
m unicip ality in a w arrin g w orld. The
nine public school buildings are be­
ing used alm ost n ig h tly for some type
of ad u lt education or training.
F inancially, Ames is believed to be
in a b e tte r position to face th e crisis
th a n th e average city of its size. Its
to tal bonded indebtedness is only
$169,250, believed to be th e low est
ag ain st any city of com parable size in
Iowa. The to tal area w ith in th e cor­
p orate lim its is 3,209.7 acres or 5.0
squ are miles. Of th is total, approxi­
m ately tw o square m iles or 40 per
cent is state ow ned property.
T he population of th e city of Ames
has increased 240 p er cent in th e last
40 y ears w hich is a ra te of grow th
exceeding th a t of an y o th er city of
su b stan tially th e sam e size in the
state of Iowa. It is th e th ird largest
city in Iow a operating u n d er th e coun­
cil-m anager form of g o vernm ent w hich
has been in successful operation in
th is city for th e p ast 21 years.
It
ow ns its ow n m unicipal light and w a­
te r facilities, hospital library, cem e­
tery , and all of these functions of the
m unicipal governm ent are well fi­
nanced and m aintained in first-class
condition.
T his city has a larg er m ileage of

13th
surfaced streets in relatio n to its
population th a n any o ther city of ap ­
proxim ately th e sam e size in Iowa.
The total m ileage of paved streets
w ith in the corporation lim its a t th e
p resen t tim e being 33.68 miles. In
addition to this mileage, th ere are
several m iles of surfaced drivew ays
on th e Iowa S tate College cam pus.
R ecreational facilities in Ames are
abundant, th ere being one 18-hole golf
course and tw o 9-hole golf courses.
The 18-hole gollf course m aintained
by Iow a State College and th e Homewood course, p riv ately owned, are
both available for public play. In tra ­
m u ral sports at Iow a S tate College
in w hich practically every stu d en t p a r­
ticipates are a d istinct con trib u tio n to
th e physical fitness program in p re ­
parin g these young people for w ar
work.
Two m ajor tran sco n tin en tal h ig h ­
ways, U. S. H ighw ay No. 30 (Lincoln
H ighw ay) and U. S. H ighw ay No. 65
(Jefferson H ighw ay), pass th ro u g h
this city. Rail and bus tra n sp o rta ­
tion facilities are excellent.

Ames Program
A. M.
9:15 R egistration — South Ballroom ,
M em orial Union. (Fee of $1.50
for m en and $1.00 for ladies cov­
ers re g istratio n and banquet;
$3.00 for all those n ot Iow a b a n k ­
ers or not associate m em bers or
guests of th e Iow a B ankers As­
sociation.

Conducted Tours
T ours of some of th e m ajor d ep art­
m ents of th e college listed below.
S tartin g p o in t of tours, W est Lounge,
M em orial U nion Hall:
(a) A nim al H u sb an d ry F arm s.
(b) A gronom y F arm s.
(c) D airy F arm s.
A. M.
10:00 F irst conducted tour.
11:00 Second conducted tour.
P. M.
12:15 L uncheon — South Ball Room,
M em orial Union.
M usical P ro g ram —F u rn ish e d by
M usic D epartm ent, Iow a State
College.
1:15 M eeting called to order.

i
t

69

----------* COME TO ----------

AMES
W e d n e s d a y — M a y 1 3 th
Members of the Story County Bankers Association are delighted
to have hankers of Group Six meet with us Wednesday, May 13th,
in Ames.
Here in the very heart of Iowa, the home of Iowa State College,
the outstanding agricultural college in the world, we are prepared
to give you a typical Story county welcome.
A splendid program has been arranged to make your Group meet­
ing profitable and pleasant. We look forward to your arrival,
anxious to make new friendships and to renew old acquaintances.
May We Count on Your Presence, W ednesday, May 13th?

S t o r y C o u n ty B a n k e r s A s s o c ia ti o n
M EM BER BA N K S
A m es T rust and S avin gs B a n k ________________________ A m es
C ollege S avin gs B a n k __________________________________ A m es
U n io n Story T ru st & Savin gs B a n k ___________________ A m es
C am b ridge State B a n k ___________________________ C am bridge
E x c h a n g e State B a n k _________________________________C ollin s
N evada N ation al B a n k _______________________________ N evada
State B a n k & T ru st C o m p a n y _______________________ N evada
Story C ounty State B a n k _________________________ Story City

Northwestern Banker

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

May 19^2

70

*

IOWA

NEWS

(a) N om inations.
(b) Resolutions.
T alk (20 m in u tes), “F inancing
F a rm O perations” — Dr. W. G.
M urray, professor, A gricultural
Econom ics, Iow a State College,
Ames.
T alk (20 m in u tes), “Keep ’Em
E a tin g ”—R. K. Bliss, head, E x ­
tension Service, Iow a S tate Col­
lege, Ames.
T alk (20 m in u tes), “W hat About
th e Supply of Beef C attle”—Rex
Beresford, E x ten sio n A n i m a l

R em arks—R ay O. Bailey, p resi­
dent, Ja sp e r C ounty Savings
B ank, N ew ton; chairm an, G roup
6.
Invocation—Dr. A rth u r R. Mc­
L aughlin, p astor, F irs t C ongre­
gational C hurch, Ames.
A ddress of W elcom e—C. A. Friley, p resid en t, Iow a S tate Col­
lege, Ames.
R esponse to A ddress of W elcom e
—Dr. F. E. Boyd, p resident,
F irs t N ational B ank, Colfax.
A ppointm ent of Com m ittees —
R ay O. Bailey.

CLEAR LAKE
w

W ELCOM E TO THE ANNUAL MEETING O F GROUP 3
THURSDAY. MAY 21ST!

Members of the Cerro Gordo County Bankers Association
extend a hearty invitation to all Iowa bankers and friends
to attend our annual meeting of Group No. Three to be held
in Clear Lake on Thursday, May 21st.
Here on the shore of one of Iowa's most popular lake resorts
you will find both profit and pleasure in the day you will
spend with your Cerro Gordo County bankers hosts.

By All Means Plan to Attend and Make This
an Outstanding Meeting!

C e r r o G ordo C o u n ty B a n k e r s
A s s o c ia tio n
M EM BER BANKS
C le a r L a k e B a n k a n d T r u s t C o m p a n y ..........................C le a r L a k e
F i r s t N a ti o n a l B a n k ..............................................................M a so n C ity
U n ite d H o m e B a n k & T r u s t C o m p a n y ..........................M a so n C ity
F a r m e r s S a v in g s B a n k ........................................................ R o c k F a lls
F i r s t S ta t e B a n k ..............................................................................T h o r n to n
V e n tu r a S ta t e B a n k ......................................................................."V en tu ra
P ly m o u th O ffice (M a n ly S t a t e B a n k ) ............................... P ly m o u th

Northwestern Banker

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

May 1942

*H usbandm an, Iow a S tate Col­
lege, Ames.
T alk (20 m in u tes), “How B anks
Can A ssist in th e ‘Food for F re e ­
dom ’ P ro g ram ”—K. J. McDon­
ald, president, Iow a T ru st & Sav­
ings Bank, E stherville; ch air­
m an “Outside F a rm R ep resen ta­
tive Com m ittee of Iow a B ankers
A ssociation.
T alk (20 m in u tes), “W ar-Tim e
P rices and F a rm e r C redit”—D.
Gale Johnson, D ep artm en t of
Econom ics and Sociology, Iow a
S tate College, Ames.
T alk (15 m in u tes), “The Job
A head”—M. W. E llis, S tate Su­
p erin ten d en t of B anking, Des
Moines.
T alk (20 m in u tes), “B alanced
P roduction in th e ‘Food for F re e ­
dom ’ P ro g ram ”—A. J. Loveland,
chairm an, State W ar Board, and
chairm an, S tate AAA Com m it­
tee, Des Moines.
T alk (15 m in u tes), “T he Iow a
B ankers W ill Do T h eir P a r t”—
A. T. Donhowe, vice president,
C entral N ational B ank & T ru st
Company, Des Moines; president,
Iow a B ankers A ssociation.
G eneral R ound Table D iscussion
—Please ask y o u r questions, if
any, on th is im p o rtan t “Food for
F reed o m ” p rogram —H. L. Bass,
executive vice president, City
S tate Bank, Ogden; secretary,
G roup 6, Iow a B ankers Associa­
tion.
R em arks—F ra n k W arner, secre­
tary , Iow a B ankers A ssociation,
Des Moines.
4:15 Com m ittee R eports—
(a) N om inations.
(b) R esolutions.
A ny o th er business.
4:30 A djournm ent.
4:35 Conference of th e County Asso­
ciation Officers of Group 6 w ith
G roup Officers and P resid en t A.
T. Donhowe in th is room . All
County A ssociation Officers are
u rged to a tte n d th is custom ary
an n u al conference.

Joins Federal Reserve System
The Ames T ru st & Savings B ank a t
Ames, Iowa, has been ad m itted to
m em bership in th e F ed eral R eserve
System , it w as rep o rted recen tly by
C. S. Young, p resid en t of th e F ed eral
R eserve B ank of Chicago, Illinois.
Officers of th e Ames B ank are Clay
W. Stafford, president; L. B. Spinney,
vice president; G. R. Alley, cashier,
and O. H. Jo h n so n and H. P. McNeil,
a ssistan t cashiers.

71

Come to

Clear Lake
O n M ay 21
N o rth S hore C o u n try Club, C lear L a k e , w h e re re g is tra tio n
a n d a ll sessions w ill be held.

OWA’S m ost p rogressive sum m er re ­
sort, Clear Lake, w ill be th e scene of
th e a n n u al d istric t convention of
G roup T h ree of th e Iow a B a n k e rs’ A s­
sociation on M ay 21st.
The N o rth Iow a vacation play ­
gro u n d w ill offer w ell-rounded facili­
ties for recreatio n to th e 250 b an k ers
and th e ir w ives expected to a tte n d th e
convention. Clear L ake first of all is
fam ous for its con sisten tly good fish­
ing, w ith ten different species of gam e
fish aw aitin g th e an g le rs’ w iles on th e
opening day of th e fishing season May
15th (and th e re a fte r).
E ig h t bo at liveries are located
aro u n d th e 21-mile shore line of Clear
Lake, and th e boats th e y house along
w ith p riv a te ly ow ned c ra ft to tal th e
larg est on an y Iow a lake, according
to a recen t su rv ey m ade for th e state
co nservation com m ission.
The Clear L ake Y acht club is a pop­
u la r in stitu tio n , accounting for the
presence on w eekends of b eau tifu lly
staged sailboat races. Speedboats, sail­
boats, and o th er c ra ft are available for
public use th ro u g h o u t th e sum m er.
C onvention delegates w ho b rin g the
child ren along to th e convention w ill
find B ayside p a rk on th e south shore
a h a rd place to stay aw ay from th is
year, for a new $20,000 ro ller coaster
has ju s t been com pleted there.
Of course, if th e child ren are th e
dancing age, th e y ’ll find lots of places
along th e cool lake shore for th eir
favorite recreatio n , n otably th e beau­
tifu l S u rf ballroom w hich is cooperat­
ing in staging th e convention dance.
T he N o rth Shore C ountry Club, a n ­
o th er b eau ty spot of C lear Lake, is a
fav o rite of diners and dancers and w ill
house th e m o rnin g business sessions
and evening b an q u et of th e conven­
tion.
Im m ed iately ad jacen t to th e
spacious co u n try club b uilding is a

I

sp o rting nine-hole golf course. Both
are ju st across th e highw ay from th e
lake shore and receive th e benefit of
refresh in g lake breezes.
Those w ho go in for sh o rt hikes w ill
probably find th e ir w ay to th e state
fish h atch ery and th e state p ark w ith
its attra c tiv e public lodge building.
The h atch ery is located on th e n o rth
shore, w hile th e state park, a favorite
spot of picnickers and sun-baskers is
on th e south shore.
Clear Lake in recen t years has real­
ized its p o tentialities as a y ear ’round
resid en tial center as w ell as sum m er
resort, and lovers of b eautiful hom es
w ill find m uch to appreciate in a lei­
su rely drive th ro u g h o u t th e city and
aro u nd the lake shores.

Clear Lake Proqram
A. M.
9:00 R eg istratio n —L akeshore Hotel.
10:00 N o rth Shore C ountry Club.
M eeting called to order by Al­
b e rt H alvorson, cashier, St. Ansgar Citizens S tate Bank, St. Ansgar; ch airm an Group 3.
Invocation — Rev. V erne Spindell, p a s t o r , C ongregational
Church, Clear Lake.
A ddress of W elcom e—Dr. A. B.
Phillips, m ayor of Clear Lake.
R esponse—E. C. Moody, p resi­
dent, F irs t S tate Bank, N ora
Springs.
A ppointm ent of Com m ittees.
(a) Resolutions.
G reetings from Iow a B ankers
A ssociation — A. T. Donhowe,
vice president, C entral N ational
B ank & T ru st Company, Des
Moines; president, Iow a B ankers
Association.
A ddress—Lee Loomis, publisher,
M ason City Globe Gazette, Ma­
son City.

R em arks—F ra n k W arner, secre­
tary , Iow a B ankers A ssociation,
Des Moines.
Noon
12:00 Recess for lunch.
P. M.
1:45 N o rth Shore C ountry Club—
M eeting called to o rder by Al­
b e rt H alvorson, cashier, St. Ansg ar Citizens State Bank, St. Ansgar; chairm an, Group 3.
A ddress—A. J. M ulroney, vice
president, F ed eral R e s e r v e
Bank, Chicago.
Talk, “Profits in 1942”—M. W.
Ellis, S tate S u p erin ten d en t of
B anking, Des Moines.
R eport of com m ittees.
A djournm ent.
4:15 Im m ediately follow ing close of
Group M eeting a conference w ill
be held in th is room of officers of
th e County B ankers Associa­
tions w ith Group C hairm an and
Group Secretary, P resid en t A. T.
D onhowe and S ecretary F ra n k
W arner.
4:30 Golf and Stag P a rty — N o rth
Shore C ountry Club.
6:30 D inner — N o rth Shore C ountry
C l u b , Clarence A. K nutson,
ch airm an of board, Clear Lake
B ank & T ru st Company, Clear
Lake, presiding.
A ddress, “Defense W ins the
W a r”—Dr. M elchior Palyi, eco­
nom ic and financial stu d en t of
w orld affairs, Chicago. Dr. P alyi
has been visiting P rofessor and
R esearch E conom ist of th e U ni­
v ersity of Chicago and a visiting
P rofessor of th e U n iv ersity of
W isconsin. He has given lec­
tu re s before m any o th er u n iv e r­
sities in th e country.
9:00 D ancing—Surf Ballroom , Iow a’s
m ost b eautiful ballroom .
Northwestern Banker


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

May 19b2

72

W e ’ll See You In Council Bluffs, M ay

T he D odge M em o rial in C ouncil B luffs

ANKS and b an k ers of P o tta w a tta ­
m ie county and Council Bluffs are
looking fo rw ard w ith pleasu re to
the privilege th e y w ill have of e n te r­
tain in g G roup F ive of th e Iow a B an k ­
ers A ssociation in Council Bluffs on
F riday, May 15th.
T he g ro w th and developm ent of
cities can usu ally be traced to th e ef­
forts of a few individuals. The destiny
of Council Bluffs w as m olded largely
th ro u g h th e activ ity of one m an —Gen­
eral G renville M. Dodge.
E ngineer, soldier, railro ad builder
and b anker, G eneral Dodge n o t only
built th e U nion Pacific Railroad, b u t
he convinced A braham Lincoln th a t
Council Bluffs w as th e logical eastern
term in u s for th is g re a t tra n sc o n ti­
nen tal ro u te in th e face of stro n g oppo­
sition from th e n u m b er of so u th ern
cities th a t w an ted th e railro ad to tak e
a m ore so u th ern ly course.

B

!N orthwestern Banker

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

May 19 k2

In 1856, G eneral Dodge w as th e co­
founder of w h a t is now th e Council
Bluffs Savings Bank. H is keen busi­
ness ju d g m en t did m uch to establish
th e b anking business in Council Bluffs
on a firm and p erm an en t basis. How
w ell he did th is job can b est be illus­
tra te d by th e slogan of th e Council
Bluffs Savings Bank: “A Strong B ank
Since 1865.”
Today, as a re su lt of th e early efforts
of G eneral Dodge, Council Bluffs is the
fifth largest railro ad center in the
U nited States and th e largest in its
population class. E ig h t m ain tru n k
line railroads, rad iatin g in all direc­
tions like the spokes of a w heel, p ro ­
vide direct connection w ith all m ajor
cities of th e mid-west.
Since th e infancy of th e city, Coun­
cil Bluffs banking houses have served
as a haven for th e depositors of so u th ­
w estern Iowa w ho desired a safe place

15th

in w hich to keep th e ir m oney. B ank­
ing facilities are m ore th a n am ple to
take care of every legitim ate need in
th e conduct of th e com m unity’s b u si­
ness and commerce. T he com bined
resources of the four banks here to tal
m ore th a n $12,000,000. D eposits in
these banks are over $11,000,000.
One of th e oldest cities along th e
M issouri R iver, Council Bluffs is
blessed by n a tu re w ith u n p aralleled
scenic beauty. N estled in th e rugged
bluffs overlooking th e panoram a of th e
M issouri R iver valley, th is city has
served as a source of m any delightful
h o urs for th e v isitor w ho likes to delve
into th e beauties of nature.
Yes, th e re ’s beauty in these historic
hills su rro u n d in g Council Bluffs! T hey
present, at th is tim e of th e year, robed
in th e ir im m ense carpet of green, a
delightful appearance. V isitors to th e
Group Five m eeting on May 15th are
urged to avail them selves of th e oppor­
tu n ity of view ing th is n a tu ra l w onder­
land.
Over one tho u san d acres of parks,
some still as n a tu re left them , aw ait
y o u r visit. These p ark s are connected
by m ore th an th irty m iles of scenic
boulevard. Hop into yo u r car and go
w inging along one of these scenic
drives w here each crest, each tu rn , u n ­
folds a panoram a m ore allu rin g in its
beau ty th a n th e last.
Add to these n atu ral advantages the
m any m an-m ade assets of Council
Bluffs and you have a tw en tieth cen­
tu ry city w ith fine hom es, hotels,
schools, churches, parks, playgrounds,
shops, hospitals and those th o u san d
and one nice th in g s you like to live
and be among.

Council

Bluffs Program

A. M.
10:00 R eg istration and V isiting, H otel
C hieftain
Noon
12:00 L uncheon, H otel C hieftain
P. M.
1:30 M eeting called to order: Oscar
H elgerson, cashier, H oughton
S tate Bank, Red Oak; C hairm an
Group 5
R em arks by C hairm an
A ppointm ent of Committees:
(a) R esolutions
1:45 G reetings from th e Iow a B ank­
ers Association: A. T. Donhowe,
vice president, C entral N ational
B ank & T ru st Company, Des
Moines; P resident, Iow a B ank­
ers A ssociation
2:00 Address: P rofessor K arl A rndt,

73

C o m e to
C o u n cil B lu ffs!
F r i d a y , M a y 1 5 th !
(A nnual M eeting of Group 5)
B an k ers of P o tta w a tta m ie C o u n ty an d C o u n cil Bluffs ex ten d
a w arm in v ita tio n to all b a n k ers to a tte n d o u r big a n n u a l m e e t­
ing of G ro u p Five to be h e ld in C o u n cil B luffs (H o te l C h ie fta in )
on F rid a y , M ay 1 5 th .
W e have a rra n g e d fo r you a p ro g ra m of real in te re st, in c lu d in g
several o u tsta n d in g speakers.

E v e ry th in g has b een a rra n g e d

to m ake y o u r visit h e re b o th p le a sa n t an d p ro fitab le.
In a d d itio n , as y o u r hosts, we w ant you to m ak e th is m eetin g
a day of frie n d lin e ss, w h ere y o u w ill m eet new frie n d s an d f u r ­
th e r cem en t old a cq u a in ta n ce .

Come to Council Bluffs
riday,May
F
CITY NATIONAL BANK
STATE SAVINGS BANK
FIRST NATIONAL BANK
COUNCIL BLUFFS SAVINGS BANK

Northwestern Banker

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

Mai] 1942

74

•

2:45

3:05
4:00
4:20

U n iv ersity of N ebraska, Lincoln,
N ebraska
“Stop In flatio n ”
Address: M. W. Ellis, S tate Su­
p e rin te n d e n t of B anking, Des
Moines.
“E a rn in g s in 1942”
“Q uestion B ox”: Jo h n A. Changstrom , vice presid en t, Om aha N a­
tional B ank, Omaha, N ebraska
R em arks: F ra n k W arn er, Secre­
tary , Iow a B an k ers A ssociation,
Des Moines
R eport of R esolutions C om m ittee

IOWA

NEWS

*

4:30 A djournm ent
4:45 Im m ediately follow ing close of
Group M eeting a conference w ill
be held in th is room of officers
of th e County B ankers Associa­
tions w ith Group C hairm an and
Group Secretary, P resid en t A. T.
Donhowe and S ecretary F ra n k
W arner.

Called to Army
D.
R. Lynch, cashier of th e F irs t
N ational B ank of W est Union, left

WAVERLY
W ELCOM ES YOU
G roup 7, W e d n e sd a y , M a y 2 0 th

M e m b e r s o f th e B r e m e r C o u n ty B a n k e r s A s s o c ia t io n w ill g r e e t
y o u w it h a h e a r t y w e lc o m e w h e n y o u

c o m e to

W a v e r ly

to

a tte n d th e a n n u a l m e e t in g o f G r o u p S e v e n .
Y o u w ill fin d i n B r e m e r c o u n t y o n e o f th e fin e s t c o m m u n it i e s
in I o w a , a f a r m a n d d a ir y in d u s t r y t h a t is k n o w n t h r o u g h o u t
A m e r ic a .
W e h a v e a r r a n g e d a n e x c e l le n t p r o g r a m f o r y o u , p lu s e n t e r ­
t a in m e n t t h a t y o u a n d y o u r f a m i l y w ill e n j o y .
w ith u s o n W e d n e s d a y , M a y 2 0 t h , a n d

B e s u r e to h e

e n j o y t h e h o s p i t a li t y

o f th e B r e m e r C o u n ty B a n k e r s A s s o c ia t io n a t W a v e r ly .

Bremer County Bankers Association
M EM BER BANKS
D e n v e r S a v in g ’s B a n k ........................................D e n v e r f f
F a r m e r s S a v in g s B a n k ........................ F r e d e r i k a
F a r m e r s S ta t e B a n k ............................... P la in f ie ld
R e a d ly n S a v in g s B a n k .............................R e a d ly n
F i r s t N a ti o n a l B a n k ..................................S u m n e r
A m e ric a n S a v in g s B a n k ...........................T r ip o li
F i r s t N a ti o n a l B a n k . ............................... W a v e r ly
S ta t e B a n k o f W a v e r ly ...........................W a v e r ly
W a v e rly S a v in g s B a n k ...........................W a v e r ly

Northwestern Banker

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

May 1942

recently for Ft. Chaffe, A rkansas, h av ­
ing been called to active duty. H older
of a cap tain ’s com m ission an d a m a­
jo r’s certificate in th e A rm y R eserve
Officers, he has been assigned to d u ty
as a ground in stru c to r in th e a ir serv ­
ice.
He w as g ran ted a m ilitary leave of
absence from th e bank. C. W. Grim es,
a ssista n t cashier, w ill serve as acting
cashier du rin g L y n ch ’s absence.

Bloomfield Program
T he Bloomfield C ountry Club is
h eadquarters.
P. M.
1:00 Stag D utch L unch — Bloomfield
C ountry Club.
1:304:30 Golf—C ourtesy of Davis County
Savings Bank, Bloomfield, E x ­
change B ank, Bloomfield.
4:30 A conference w ill be held in th is
room of officers of th e County
B a n k e r s A ssociations w ith
Group C hairm an and Group Sec­
retary , P resid en t A. T. Donhowe
and S ecretary F ra n k W arner.
3:005:00 R egistration — Bloomfield Coun­
try Club.
5:006:30 F o r late com ers—R eg istratio n —
Legion Hall.
6:30 B anquet — Legion H all (n o rth ­
east corner square).
6:30 Legion Hall, Bloomfield — In v o ­
cation, Rev. L. D. Thom as, pas­
tor, M. E. Church, Bloomfield.
Group Singing—H. B. W ilson,
leader.
A ppointm ent of C om m ittees—
(a) N om inations.
(b) Resolutions.
G reetings from Iow a B ankers
A ssociation — A. T. Donhowe,
vice president, C entral N ational
B ank & T ru st Company, Des
Moines; president, Iow a B ankers
A ssociation.
M usical P ro g ram — Professor
W alter Lake.
A ddress—Dr. S. N. Stevens, p res­
ident, G rinnell College, G rinnell.
Talk, “Profits in 1942”—M. W.
Ellis, S tate S u p erin ten d en t of
B anking, Des Moines.
R em arks—F ra n k W arner, secre­
tary , Iow a B ankers A ssociation,
Des Moines.
R ep o rt of Com m ittees—
(a) R esolutions.
(b) N om inating.
A djournm ent.

75

Group Seven
Bankers
to

"dairy Spot
o f /¡/nerica"
A D M IN IS T R A T IO N B U IL D IN G O F W A R T B U R G C O L L E G E
W a v e rly , Io w a

EM B ER S of G roup Seven of th e
Iow a B an k ers A ssociation w ill
be v isitin g one of th e o u tsta n d ­
ing d airy sections of Iow a w h en th ey
a tte n d th e m eeting in W av erly in
B rem er county, W ednesday, May 20th.
To back up h e r title of “T he D airy
Spot of Iow a,” B rem er county can
p o in t not only to th e fact th a t she has
tw e n ty cream eries, m ore th a n any
o th e r county in th e state, b u t to h e r
record of hav in g m ore d airy cattle p er
squ are m ile th a n an y o th er Iow a coun­
ty and to th e fact th a t only th re e coun­
ties, each m uch larger, su rp ass h e r in
total n u m b er of dairy cattle.
N ot only does th e county th ro u g h
these cream eries produce m ore th a n
4,000,000 pounds of b u tte r each y ear
(equal to 25 pounds for each in h ab i­
ta n t of Des M oines), b u t th e Plainfield
cream ery th is y e a r p lans to produce
200,000 pounds of cheese, and a t W av­
erly Iow a’s only C arnation processing
p la n t will, d u rin g 1942, produce m ore
th a n 600 carloads of ev aporated m ilk.
A nd a t S um ner th e P en n in g to n Supply
Com pany has for y ears fu rn ish ed
cream eries over a w ide te rrito ry w ith
th e ir essential supplies.

M

D airying isn ’t th e only farm ing in ­
d u stry, for B rem er county farm ers
also specialize in hogs—to such an ex­
te n t th a t a t W averly th ere are th ree
concentration p lants (W averly is one
of 16 Iowa hog-pricing points used by
th e USDA) and stock buyers all over
th e county do a good volum e in p o rk ­
ers.
C urren tly m uch em phasis is also be­
ing placed on tw o “w ar p ro d u cts”—
canned vegetables and beet sugar. The
T ripoli Canning Com pany a t T ripoli
and th e M arshall C anning Com pany at
W averly, to g eth er expect to can the
p roducts from m ore th a n 3,600 acres of
sw eet corn th is season, and th e W av­
erly p lan t w ill also can g reat q u antities
to feed 90,000 soldiers sw eet corn tw ice
a w eek for a year.)
A t th e W averly Sugar Com pany
plant, long idle, rep airs are u n d er w ay
now to handle beets from m ore th a n
5,000 acres—w hich are expected to p ro ­
duce m ore th a n 18,000,000 pounds of
w h ite sugar to supplem ent th e n atio n ’s
w ar-cut supply.
P lans are also being m ade for th e re ­
opening of th e W averly brew ery as an
in d u strial alcohol p lan t to produce

1,500,000 gallons a y ear for th e m aking
of m unitions.
W averly is also th e hom e of th e
L u th e ra n M utual Life In su ran ce Com­
pany, w hich has over 40 em ployes,
$77,000,000 in in su ran ce in force, and
$14,000,000 in adm itted assets; of W artburg College, th e four-year senior
W estern College of th e A m erican
L u th e ra n Church, w ith m ore th a n 200
stu d en ts of full college rank; and th e
Iow a L u th e ra n C hildren’s hom e, w hich
each y ear cares for m ore th a n 150
youngsters. ,
The city is v ery proud of its public
im provem ents, including t h e riv er
fro n t park, sw im m ing pool, golf course
and cem etery, all city-owned, and of its
u tility system . Long fam ous as one
of th e best-lighted of Iow a’s sm aller
cities, it boasts a $400,000 city-owned
hydro- an d diesel-powered electric
light p lan t w hich now is being en­
larged to p erm it in stallation of an addi­
tional 1,000 h.p. engine.
T he banks of th e county have a re la ­
tively high per capita deposits average;
th is figure is $487 for each of th e coun­
ty ’s 17,932 in h ab itan ts, w ith total b ank
deposits over $8,750,000.
Northwestern Banker


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

May 19^2

76

-•
A t a recen t m eeting of th e B rem er
County B an k ers A ssociation, a t w hich
plans w ere p erfected for th e an n u al
m eeting of G roup Seven a t W averly,
the B rem er C ounty A ssociation passed
a resolution en dorsing th e candidacy
of V ivian W. Johnson, p resid en t of
the F irs t N ational B ank of Cedar Falls,
for the presidency of th e Iow a B ank­
ers A ssociation for th e com ing year.
This follows a sim ilar action ta k e n re ­
cently by th e Black H aw k C ounty A s­
sociation m eeting in W aterloo.

W averly Program
A. M.
9:30 R eg istratio n —Legion Hall, east
end of bridge.
R egistration fees:
$1.50 for b an k ers and associates.
$3.00 for o th er th a n b ankers.
$1.50 for all ladies.

IO W A

NEWS

V isiting — Golfing — B oating —
Sightseeing Tours.
12:15 L unch—St. P a u l’s P a rish House.
M eeting called to order by Jo h n
L. Krall, cashier, F airfax State
Savings Bank, F airfax; ch air­
m an, Group 7.
✓
A ppointm ent of Com m ittees—
(a) Resolutions.
A ddress of W elcome.
Address, “P erso n ality Develop­
m en t as a B usiness G etter”—A r­
th u r H. B rayton, secretary, Con­
vention B ureau, D e s Moines
Cham ber of Commerce.
Address, “E arn in g s in 1942”—M.
W. Ellis, S tate S u p erintendent
of B anking, Des Moines.
G reetings from th e Iow a B ank­
ers A ssociation—A. T. Donhowe,
vice president, C entral N ational
B ank & T ru st Company, Des

FIRST NATIONAL BANK
HAMPTON, IOWA

at the close of b usiness April 4, 1942
RESOURCES
L o a n s a n d D is c o u n ts ....................... $ 609,571.13
1 s t M o rtg a g e R . E . L o a n s ..............
262,722.71
B a n k B u ild in g a n d R e a l E s ta te
15,000.00
F u r n i t u r e a n d F i x t u r e s ................
4,532.00
F e d e r a l R e s e rv e B a n k S to c k . . .
5,000.00
U n ite d S ta te s a n d M u n ic ip a l
B o n d s ........................ $374,386.63
C o m m e rc ia l P a p e r . . 15,000.00
C o rn L o a n s ................. 120,354.20
C a s h a n d D u e fr o m
B a n k s ..................... 969,846.22
1,479,587.05

L IA B IL IT IE S
C a p ita l

.$ 100,000.00

S u rp lu s

66, 000.00

U n d iv id e d P r o f its

15,321.49

D ep o sits ................................................... 2,195,091.40

$2,376,412.89
M e m b e r F e d e ra l R e s e rv e S y ste m

$2,376,412.89
M e m b e r F e d e r a l D e p o sit I n s u r a n c e C o r p o r a tio n

Officers and Directors
D. D. B r a m w ell, P r e sid e n t
J. H. B oeh m ler, V ice P r e sid e n t
J. M. B oots, C a sh ier
F red A . K ee p f, A s s is ta n t C ash ier
W . K. B r a m w ell
H . E . B oeh m ler
M. J. B r a m w ell
G. C. B ra m w ell
D r. H . H . J o h n sto n

The National Bank of Washington
W A SH IN G T O N , IO W A

Statem ent at the Close of Business, A pril 4, 1942
U n ited States D epository
R E SO U R C ES

L IA B IL IT IE S

L o a n s ........................................................... $ 3 3 5 ,3 9 9 .5 4
O verd rafts ..................................................
1 1 9 .4 7
O th er A s s e t s .............................................
2 5 .0 0
A ccru ed In terest P a id
S e cu ritie s P u rch ased ...........................
1 4 0 .5 8
Stock in Fe d e ra l R eserve B a n k . . .
3 ,6 0 0 .0 0
8 9 ,6 8 2 .0 7
M u n icip al and O th er B o n d s ...............
U. S . G overnm ent
B o n d s ..................$ 5 4 4 ,8 9 7 .6 4
Cash on H and and in
B a n k s .................. 9 6 3 ,7 1 6 .1 5
1 ,5 0 8 ,6 1 3 .7 9

C a p ita l S t o c k ............................................ $
Preferred Sto ck

8 0 ,0 0 0 .0 0

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

Com m on Stock . . . .

5 8 ,0 0 0 .0 0

S u r p l u s ........................................................

4 0 ,0 0 0 .0 0

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

9 ,4 2 1 .0 3

Reserve for C o n tin g e n cie s..................

5 ,0 0 0 .0 0

D E P O S IT S

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

$ 1 ,9 3 7 ,5 8 0 .4 5

1 ,8 0 3 ,1 5 9 .4 2
$ 1 , 9 3 7 ,5 8 0 .4 5

O F F IC E R S

R. E. D O U G H E R TY
P resident
C. P . W E L D IN
Asst. Cashier

F R A N K C. C RO N E
F R E D L. STEW A R T
Executive Vice P resident
Vice P resid en t
M. W H IT E H E A D
LUCY F. D EM PSEY
A sst. Cashier
Teller

M em ber of F ed era l R eserve System

Northwestern Banker

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

May 19^2

•-

E. F. M UCK
Cashier
R . M. A N D ER SO N
Teller

M em ber of Fed era l D eposit In su ra n ce Co rporation

Moines; president, Iow a B ankers
A ssociation.
R em arks—F ra n k W arner, secre­
tary , Iow a B ankers Association,
Des Moines.
R eport of R esolutions Com m it­
tee.
A djournm ent.
P. M.
4:30 Im m ediately follow ing close of
Group M eeting a conference will
be held in th is room of officers
of th e C ounty B ankers A ssocia­
tions w ith G roup C hairm an and
Group Secretary, P resid en t A. T.
Donhowe and S ecretary F ra n k
W arner.
6:30 Buffet L unch and R efreshm ents
—Legion Hall; 2,000 feet colored
m ovies of fishing and h u n tin g in
Canada.

Make Films of Records
Daily th e w ar in E urope, Asia and
A frica m oves closer to continental
A m erica in th e m inds of business m en
and b an k ers along th e eastern sea­
board. T h a t m ental condition is ap­
p a re n t in letters received recently by
W. A. Lane, presid en t of th e Security
Savings B ank and a m em ber of th e
board of reg en ts of th e grad u ate school
of banking, operated a t R utgers U ni­
v ersity by th e A m erican B anking Asso­
ciation.
E a ste rn in stitu tio n s are tra n sfe rrin g
th e ir p erm an en t records to film and
shipping th e film to inland storage
places against th e even tu ality of en­
em y raids.
R ichard W. Hill, secretary of th e
A m erican B ankers A ssociation, and
S terling R. W hitbeck, tre a su re r of th e
N onotuck Savings B ank of N o rth am p ­
ton, M assachusetts, have w ritte n Mr.
Lane, asking him if he can accom m o­
date cartons of th e ir filmed records in
the v au lts of his b ank in M arshalltow n.
The films are packed in cartons 10xl2x
1 2 V2 inches.
Mr. Lane said th ere is p len ty of
space in M arshalltow n for thousands
of such cartons as Mr. H ill described,
and said th a t “W hile th e U nited States
has become th e arsen al of dem ocracy,
M arshalltow n and Iow a m ight w ell be­
come th e safe depository of all the
records of dem ocracy should it become
necessary.”

DeWitt Group Program
Noon

May 12th
12:00 P ro m p t reg istratio n a t th e DeW itt H igh School.
P. M.
1:00 M eeting of officers of th e Coun­
ty B ankers A ssociation w i t h

77

•
G roup C hairm an and S ecretary
w ith P re sid e n t Donhowe.
1:30 M eeting called to order by Chas.
L u ett, G roup C hairm an.
Invocation—Rev. Chas. G. F ort.
A ddress of W elcom e — J. Yvo
F loerchinger, p resid en t of th e
Clinton C ounty B an k ers A ssocia­
tion.
R esponse to th e A ddress of W el­
com e—A. T. Donhowe, p resid en t
of th e Iow a B an k ers A ssociation.
A ppo in tm en t of C om m ittees—
(a) R esolutions.
(b) N om inations.
A ddress, “W h at th e Axis Is Up
A g ain st” — Dr. M elchior Palyi,
A dvisor to Chicago F in an cial In ­
stitu tio n s; P rofesso r of Econom ­
ics a t th e U n iv ersity of W iscon­
sin.
A ddress, “The C ountry B anker
and W ar F in a n c e ” — Jo h n K.
Langum , m an ag er of th e R e­
search and S tatistics D ep art­
m ent, F ed eral R eserve B ank,
Chicago, Illinois.
Talk, “Profits in 1942”—M. W.
E llis, S u p e rin te n d e n t of B an k ­
ing of th e S tate of Iowa.
T alk—F ra n k W arn er, secretary
of th e Iow a B an k ers A ssociation.
R eports — R esolutions Com m it­
tee, N om inating Com m ittee.
4:30 A djournm ent.
5:006:00 Social H o u r—Moose Hall.
6:30 C linton C ounty P rim e Beef B an­
q u et—Moose Hall.
A fter D in n er Speaker — “D ick”
How es, fo rm er M ayor of Clinton.
Special com m ittee to provide e n te r­
tain m e n t for th e ladies.

Spencer Group Program
May 22
A. M.
11:00 R eg istratio n —T angney Hotel.
Noon
12:00 S pencer has am ple fine eating
places.
P. M.
2:00 H igh School A uditorium .
M eeting called to ord er by J.
R obert Cornell, vice p resid en t
and cashier, F irs t N ational B ank,
S pirit Lake; ch airm an, G roup 2.
Invocation — Rev. W. K. W il­
liam s, pastor, F irs t Congrega­
tio n al C hurch, Spencer.
A ddress of W elcom e — W ilson
C ornw all, atto rn ey , Spencer.
Response to A ddress of W elcom e
—George J. Schaller, fo rm er gov­
ernor, F ed eral R eserve Bank,
Chicago, Storm Lake.

IOWA

NEWS

•-

A ppointm ent of Com m ittees—
(a) Resolutions.
(b) N om inating.
M usical P ro g ram —Spencer H igh
School Mixed Chorus.
T alk—A. T. Donhowe, vice p resi­
dent, C entral N ational B ank &
T ru st Company, Des Moines;
president, Iow a B ankers Asso­
ciation.
Talk, “E arn in g s in 1942”—M. W.
Ellis, S tate S u p erin ten d en t of
B anking, Des Moines.
A ddress, “W ar and th e Afterm a th ”—Dr. M elchior Palyi, eco­
nom ic and financial stu d en t of
w orld affairs, Chicago.

R eport of Com m ittees—
(a) Resolutions.
(b) N om inating.
R em arks—F ra n k W arner, secre­
tary , Iow a B ankers A ssociation,
Des Moines.
A djournm ent.
4:30 Im m ediately follow ing close of
Group M eeting a conference w ill
be held in th is room of officer of
th e County B ankers Associa­
tions, w ith Group C hairm an and
Group Secretary, P resid en t A. T.
Donhowe and S ecretary F ra n k
W arner.
6:30 D inner—Spencer Golf and Coun­
try Club.

H I G H L I G H T OF
CHICAGO'S H ISTO R Y
— landing o f Pere Marquette
a t Chicago in 1674. In the f e ld
o f finance, too, Chicago has her
historical highlights. Prominent
among them is the founding o f

HERE CORRESPONDENTS GAIN
FACILITIES OF VALUE TO
THEMSELVES AND THEIR CUSTOMERS
Upon establishing a connection with
The N orthern Trust Company, the
out-of-town-bank makes immediately
available to itself the full facilities of
this institution. These include the
efficient handling o f routine transac­
tions, and also a variety of special serv­
ices. O ur correspondents profit from
our many years o f sound banking ex­
perience. They welcome access to in-

formation, which is the result of up-tothe-minute fact finding. And they en­
joy, too, the opportunities to consult
with our friendly, informed personnel
on all banking and trust matters. By
utilizing these sources of information,
each correspondent of The Northern
Trust Company broadens and rein­
forces the scope of his bank’s service
to his customers and his community.

THE N O RTH ERN
TR U ST COMPANY
50 S O U T H LA SALLE STREET, C H IC A G O

ir

Member Federal Deposit Insurance Corporation
N orthwestern Banker


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

~k
Map 19 42

78

*

IOWA

N E W S --------

GLIMPSES OF OLD MEXICO

P ro b a b ly no one in th e s ta te of Io w a is b e tt e r a c q u a in te d w ith
M e x ica n custom s, sc e n ery a n d tra v e lin g c o n d itio n s th a n J . Dolliv er K ent, c h a irm a n o f th e b o a rd o f th e W e s te rn M u tu a l F ire
In s u ra n c e C om pany o f D es M oines, w ho h a s m ade a h o b b y of
tr a v e l in M exico. D u rin g re c e n t y e a rs he h a s m ade a lm o st a
score o f tr ip s to t h a t in te r e s tin g c o u n try .
A bove a re th re e sn a p sh o ts ta k e n on h is la te s t t r ip th e re , a
sh o rt tim e ago, a cc o m p a n ied b y h is son R obert K en t, Jack.
H ilm es, H arry M eredith, W alter F uller a n d Mr. and Mrs. M. S.
Stok ely, a ll of D es M oines. L e f t to r ig h t in th e first p ic tu re a re

(

tin ( j

C o u n s e l

B a n k

M r. K e n t re p o rts t h a t M e x ica n to u r is t tr a v e l fro m th e U n ite d
S ta te s h a s d ro p p e d to a b o u t o n e -fo u rth its u su a l tem po, due to
th e tir e s itu a tio n a n d t h a t a g re a t m an y h o tels a n d to u r is t
a cc o m m o d a tio n s a re now closed f o r th e d u ra tio n .

2 0 th y e a r p la n n in g a d v e r t is in g p r o g ra m s
f o r b a n k s a n d tr u s t c o m p a n ie s . M e m ­
b e r F in a n c ia l A d v e r ti s e r s
A s s o c ia tio n .

<Æ>E %<JLCE±
o n

J . D o lliv e r K e n t, H e rf M onroe o f T ex a s a n d J a c k H ilm es. C en­
t e r p ic tu re , M e x ic o ’s la rg e s t h a c ie n d a , S a n ta en G racia, in th e
s ta te o f T am u lip a s, w h ich covers 2500 acre s. A t one tim e i t
co v ered a m illio n acres. On th e r ig h t, M r. H ilm es, W a lte r
F u lle r a n d Mr. Kent.

P

u

b l

i c

R e l a t i o n s

D. R. W E S S L IN G , P R E S ID E N T

<^A/[oLn£±, & OBJa.

G roup singing.
M usic—“Camp Male Q u artet” of
L inn Grove, Iowa.
A ddress—H arlan M iller, editor,
“Over th e Coffee,” Des Moines
R egister, Des Moines.
M usical N um bers—M usical Saw
N um ber — W. H. K enderdine;
Piano Accordion — Mrs. H. H.
D ickinson.

Guttenberg Group Program
May 19

%

,- f r v o v W " ;

■ Ss»

o
I

K eep

■ - al * e
n / a c v A '65.

A" oU'd°otaW9 ''''oe' l
p \o s'« " ''9 °

\\e r f

,,

HC *

Northwestern Banker

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

May 1942

A. M.
9:30 R egistration — M unicipal B uild­
ing.
10:00 M unicipal building A uditorium —
M eeting called to order by I. G.
McQueen, cashier F a rm e rs State
Bank, R id g e w a y ; chairm an,
Group 4.
Invocation—Rev. H. C. Coovert,
m inister, St. P a u l’s L u th e ra n
Church, G uttenberg.
A ddress of W elcom e — C. J.
Adam, president, C layton Coun­
ty State Bank, G uttenberg.
R esponse to A ddress of W elcome
—Joe Menges, cashier, A lta V ista
S tate Bank, A lta Vista.
A ppointm ent of C om m ittees—
(a) Resolutions.
(b) N om inating.
R em arks—A. T. Donhowe, vice
president, C entral N ational B ank
& T ru st Company, Des Moines;
president, Iow a B ankers Asso­
ciation.
A ddress, “E arn in g s in 1942”—

79
M. W. Ellis, S tate S u p erin ten d ­
e n t of B anking, Des Moines.
Noon
12:00 Recess for lunch.
P. M.
1:45 M unicipal B uilding A uditorium —
M eeting called to ord er by I. G.
McQueen, ch airm an, G roup 4.
Music, C oncert T rio — Owen
P ufahl, Bob C harlesw o rth and
H ow ard B orrett.
A ddress, “F a rm e rs ’ P roduction
P roblem s in W a rtim e ”—C arl Ma­
lone, E x ten sio n Specialist in
F a rm M anagem ent, Iow a State
College, Ames.
Music, W oodw ind T rio—C harles
F e rris, D orothy G euder and Bill
Geuder.
A ddress, “B a n k e rs’ R elation to
P re se n t E m erg en cy ”—J. J. M at­
thew s, vice presid en t, U nion
B ank & T ru s t Com pany, S traw ­
b e rry Point; ch airm an, C layton
C ounty D efense Council.
Music, H o r n Solo — A udrey
K uem pel.
R em ark s—F ra n k W arn er, secre­
tary , Iow a B an k ers A ssociation,
Des Moines.
R eports of C om m ittees—
(a) R esolutions.
(b) N om inating.
A djournm ent.
4:30 Im m ediately follow ing close of
G roup M eeting a conference w ill
be held in th is room of officers
of th e C ounty B an k ers A ssocia­
tions w ith G roup C hairm an an d
G roup Secretary, P re sid e n t A. T.
D onhow e and S ecretary F ra n k
W arn er.
6:30 D in n er—M unicipal B uilding D in­
ing Room.
M usical P ro g ram —
C larinet Solo, “R igelletto,”
V erdi—C harles F erris.
H o rn Duet, “T yrole an F a n ta sie ”
—H olm es—A udrey K uem pel and
J e rry Donaldson.
C larinet Q uartet, “P relu d e and
Scherzo”—B en n ett—Chas.
F e rris, D orothy G euder, B ern ita
S chulte and C harlotte M inger.
A ddress, Dr. M elchior Palyi,
Econom ic and F in an cial S tu d en t
of W orld Affairs, Chicago.

Percy J. Ebbott President
Reserve C ity Bankers
No m ore p opular p resid en t could
have been selected for th e R eserve
City B an k ers A ssociation th a n P erry
J. E bott, vice p resid en t of th e Chase
N ational B ank of N ew York.
A t th e 38th a n n u al convention,
P ercy w as placed in th e “d riv e r’s se a t”
of th is group of high-pow ered, twelve-

cylinder financial dynam os w ho direct
th e b anking resources of th e nation.
Mr. E b b o tt is a native of F o rt A tk in ­
son, W isconsin, and a grad u ate of
O berlin College. He began his banking
career w ith th e N ational P a rk B ank in
N ew Y ork City in 1913. He w as ap ­
pointed an a ssistan t cashier in 1917
and an a ssistan t vice presid en t in 1920.
He resigned a year later to becom e a
vice presid en t of th e Seaboard Na-

MERCHANTS
MUT UAL

B O N D IN G
COM PANY
Incorporated 1933

Home Office
VALLEY BANK BUILDING

Des M oines, Iowa

This is Iow a’s oldest surety company.
A progressive company with experi­
enced, conservative management. We
are proud of our hundred and fifty
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.

Write to

E. H. W ARNER
Secretary and Manager

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION
P E R C Y J. E B B O T T

tional B ank and continued in th a t ca­
pacity w ith th e E quitable T ru st Com­
p any and the Chase N ational B ank
a fte r th e m ergers in 1929 and 1930.
O ther officers of th e R eserve City
B ankers A ssociation are as follows:
Vice president, John S. B roeksm it, vice
p resident, H arris T ru st & Savings
B ank, Chicago. T reasu rer, V ictor F.
R otering, vice president, F irs t N a­
tional B ank & T ru st Co., M inneapolis,
re-elected. The follow ing directors
w ere elected for a th re e y ear term :
F ran k F. B rooks, president, F irs t N a­
tio nal B ank at P ittsb u rg h ; W allace M.
D avis, vice president, Citizens U nion
N ational Bank, Louisville; Jam es S.
R ogan, president, A m erican N ational
B ank at Indianapolis, and L ang W har­
ton, executive vice president, F irs t N a­
tio nal B ank in Dallas. Joseph J.
Schroeder, secretary of th e Associa­
tion, w ith offices a t Chicago, is ap ­
pointed to th a t office.

O ldest and L argest
in Des M oines
411 6th Ave.
ELMER E. MILLER
Pres, and Sec.

D ial 4-7119
HUBERT E. JAMES
Asst. Sec.

Member Federal Home Loan Bank System

I o w a ’s L a r g e s t B u s in e s s T r a i n i n g S c h o o l

Many hanks, bond-houses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. FENTON, Director

American Institute of Business
T his year, as in an y o th er year, the
last w ord in airplanes is “ju m p .”

DES MOINES
10th and Grand
Tel. 4-4221

Northwestern Banker

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

May t9b2

80
*

Buys Partners’ Interests
W alter E. V ieth has purchased th e
in te re sts of Floyd C. D uncan and Lucien A. W ood in th e p artn ersh ip of
V ieth, D uncan & Wood, in vestm ent
ban k in g firm of D avenport, Iowa. The

Index
Advertisers
A

A l l i e d M u t u a l C a s u a l t y C o m p a n y .............
A. C. A l l y n a n d C o m p a n y ..............................
A m e r i c a n I n s t i t u t e o f B u s i n e s s ..................
A m e r i c a n N a t i o n a l B a n k a n d T r u s t Co.

29
33
79
52

It

B a n k e r s T r u s t C o m p a n y ............................. 5 6 -5 7
B r e m e r C o u n t y B a n k e r s A s s o c i a t i o n . . 74
B u r r o u g h s A d d i n g M a c h i n e C o m p a n y . . 35

MASON CITY, IOWA

*

C

C ental N ational B an k and T ru s t C o ....
C e r r o G o r d o C o u n t y B a n k e r s A s s n ..........
C h a s e N a t i o n a l B a n k ........................................
C i t y N a t i o n a l B a n k — C l i n t o n .......................
C i t y N a t i o n a l B a n k a n d T r u s t C o ............
C on tin en tal-Illin o is N atio n al B an k and
T r u s t C o m p a n y , C h i c a g o ............................
C in tin e n ta l N a tio n a l B a n k — L in co ln . . . .
C o u n c i l B l u f f s B a n k s ........................................

10
70
6
67
34
38
53
73

D
D a v e n p o r t , F . E . a n d C o m p a n y .............51-6 1
D es M oines, B u ild in g , L o a n & S a v in g s
A s s o c i a t i o n ............................................................ 79
D r o v e r s N a t i o n a l B a n k .................................... 63
E

E l m s H o t e l ............................................................... 78
E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 27
F

W ALTER

E.

V IE T H

firm w ill be continued by W alter E.
V ieth u n d er th e firm nam e of Vieth,
D uncan & Wood, and Mr. A. M. MacL au g h lin w ill be adm itted to p a rtn e r­
ship.

Resigns Position
P au l H. K innick, cashier of the F irst
State B ank of Coon Rapids, has re ­
signed his position there, afte r being
connected w ith th is b an k for th e p ast
eighteen years, to become associated
w ith G lenn C raw ford in th e livestock
buying business there.
E m ployed for ten years by th e Iow a
Savings B ank before becom ing affili­
ated w ith th e F irs t State, Mr. K innick
has been in th e b anking business in
Coon Rapids for 28 years.

Marshalltown Bank Remodels

F a rm e rs M u tu al H ail In s u ra n c e C o ....
F e d e r a l H o m e L o a n B a n k .................................
F e d e ra l I n te rm e d ia te C red it B a n k s . . . .
F i n a n c i a l A d v e r t i s e r s A s s o c i a t i o n ..........
F i r s t N a t i o n a l B a n k — C e d a r F a l l s .............
F i r s t N a t i o n a l B a n k — H a m p t o n ................
F i r s t N a t i o n a l B a n k ^ —H u m b o l d 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 ............
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 ..................

30
33
32
21
67
76
66
50
62
65

G

G u a r a n t e e M u t u a l L i f e C o m p a n y ............. 28

II

H a s t i n g s N a t i o n a l B a n k .................................
H a w k e y e M u tu a l H a il In s u ra n c e A ssn.
H o m e I n s u r a n c e C o m p a n y ............................
I
I o w a - D e s M o i n e s N a t i o n a l B a n k ...............
I o w a L i t h o g r a p h i n g C o m p a n y ....................
I o w a - N e b r a s k a B a n k D i r e c t o r y ...............
I r v i n g s T r u s t C o m p a n y ......................................

51
80
4
84
66
81
5

J

J a m i e s o n a n d C o m p a n y ...................................... 40

K
K l i p t o L o o s e L e a f C o m p a n y .........................
K o c h B r o t h e r s ........................................................
L
G e o r g e L a M o n t e a n d S o n .................................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L iv e . S t o c k N a t i o n a l B a n k — C h i c a g o . . .
L i v e S t o c k N a t i o n a l B a n k — O m a h a ..........
L iv e s to c k N a tio n a l B a n k , S io u x C ity . .

80
80
3
80
59
54
42

Northwestern Banker

May 1942

P

M
M c G u i r e , W e l c h a n d C o m p a n y ....................
M ercan tile C om m erce T ru s t C o m p an y .
M erch an ts M u tu al B onding C om pany. .
M e r c h a n t s N a t i o n a l B a n k ..............................
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ..........
M i s s i s s i p p i V a l l e y T r u s t C o m p a n y ..........

34
64
79
2
40
61

The F id elity Savings B ank of M ar­
shalltow n has recently been m odern­
ized by the in stallatio n of new fixtures
an d decorations, it w as recently a n ­
nounced by P resid en t W alter Light.
P rin cipal change w as th e discarding
of th e glass and m etal cages, replacing
them w ith an open type counter of
m odern design. The re a r of th e outer
lobby has been w idened and th e w alls
and ceilings com pletely redecorated.

Todd C om pany

Manage Bank Office

U n i t e d B a n k a n d T r u s t C o m p a n y ............. 60
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . 23

N

N a t i o n a l B a n k o f W a s h i n g t o n ....................
N a t i o n a l B a n k o f W a t e r l o o ............................
N e w Y o r k T r u s t C o m p a n y ..............................
N o r t h e r n T r u s t C o m p a n y .................................
N o rth w e ste rn N atio n al B an k an d T ru s t

76
58
19
77
36

O
O m a h a N a t i o n a l B a n k ......................................... 17

1*
P h i l a d e l p h i a N a t i o n a l B a n k .........................
P u b lic N ational B a n k an d T ru st C o ....

41
44

S

S t a t e A u t o m o b i l e I n s u r a n c e A s s o c i a t i o n 30
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 . . 46
S t o r y C o u n t y B a n k e r s A s s o c i a t i o n .......... 69
T

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

40

U

Mr. and Mrs. Chas. Ciner recently
V
took over th e m anagem ent of th e P ly ­ V a l l e y S a v i n g s B a n k ........................................... 83
w
m outh office of th e M anly State Bank.
W a n t A d s ................................................................ 5 9-6 3
C h a r l e s E . W a l t e r s C o m p a n y ....................... 53
T hey succeed Mr. H arley U rbatsch,
J a y A. W e l c h .......................................................... 80
w ho has gone to A nkeny to w ork in
W e s s l i n g S e r v i c e s ................................................ 78
W e s t e r n M u t u a l F i r e I n s u r a n c e C o .......... 24
a defense plant.
W h e e l o c k a n d C u m m i n s ................................... 34

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

I

á

81

NEW 1 9 4 2

louifi - Nebraska
BfllìK DiRECTORV
P u b lish e d by the N O R T H W E S T E R N B A N K E R
Des M oines

The new 1942 edition of the IowaNebraska Bank Directory is now off the
press. In it you’ll find the most com­
plete and latest information on Iowa and
Nebraska banks, including personnel,
capital, surplus, deposits, loans and
discounts, bond holdings, correspond­
ent banks and other valuable data.

" 7 %

jßlke,

9t"

“An excellent directory.”
B. C. Hewlett, cashier, First State Bank, Belmond, la.
“We substitute your excellent directory for the large directory.”
T. J. Poague, cashier, State Bank of Liberty, Nebr.
It’s the best directory published and just the right size so one
can carry it in the pocket daily.”
H. J. Lamp, vice president, Bennett State Bank, Bennett, la.
“Your bank directory is a very handy and complete book.”
Sim Bonsall, cashier, Lexington State Bank, Lexington, Nebr.

Iow a-N ebraska B ank D irecto ry
527 Seventh Street
Des M oines, Iow a

___________________________ , 1942

G entlem en:

Use the handy coupon at the right

Please se n d -----------------copies of y o u r 1942 Iow a-N ebraska B ank
D irecto ry to us, and we w ill re m it at the ra te of $2 p e r copy
u p o n re ce ip t of y o u r D irectory.
B a n k ___________________________________
Officer__________________________________
C ity------------------------------------------------State

Northwestern Banker

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

May 1942

82

In

the

DIRECTORS' Room

W atch Your Step!

W orth the Risk

The b attlesh ip w as in p o rt and v isi­
to rs w ere being show n around. The
guide w as exhibiting a bronze tab let
set in th e deck.
Guide: “H ere is w h ere our g allant
captain fell.”
N ervous Old Lady: “W ell, no w on­
der. I n e a rly trip p ed over it m yself.”

The ch urch service w as proceeding
successfully w hen a w om an in th e gal­
lery got so in terested th a t she leaned
out too far and fell over th e railings.
H er dress caught in a chandelier, and
she w as suspended in mid-air. T he
m in ister noticed he undignified posi­
tion and th u n d ered a t th e congrega­
tion:
“A ny person w ho tu rn s ro u n d w ill
be stru ck stone blind.”
A m an w hispered to his com panion:
“I ’m going to risk one eye.”

Give Him Air!
“Daddy, m ay I ask you a q u estion?”
“Yes, son, b u t it m u st be a sh o rt
one.”
“If a doctor is doctoring a doctor,
does th e doctor doing th e doctoring
have to doctor th e doctor th e w ay
th e doctor being doctored w an ts to be
doctored, or does th e doctor doctoring
th e doctor, doctor th e doctor th e w ay
he usu ally doctors?”

Value for M oney
M acpherson and his w ife w ere out
m otoring w h en th e ir car broke down
and it h ad to be tow ed to a garage.
All th e w ay his w ife com plained b it­
te rly of th e am o u n t it w as going to
cost them .
“I t’s scandalous!” she said. “F ifteen
dollars for tow ing th e car a m a tte r
of th re e or four m iles.”
“N ever m ind,” said M acpherson.
“I ’m m aking su re he earn s it—I ’ve
p u t on th e b rak es.”

Practice Makes Perfect
The recru it, keeping guard, heard,
th ro u g h th e darkness, th e sound of an
approaching horse.
“H alt! W ho goes th e re ? ” he chal­
lenged.
“The com m anding officer,” cam e th e
reply.
“D ism ount, sir, and advance to be
recognized,” called th e guard.
The officer did so, th e n he asked,
“By th e way, w ho posted you h ere?”
“No one, sir,” said th e recru it. “I ’m
ju st practicing.”

Stingy
T he stin g iest m an we ever h e a rd of
bought his bride a n ick el’s w o rth of
pep p erm in t lozenges and took h e r on
a trolley-ride honeym oon. W hen th ey
got off th e car he said, “H oney, su p ­
pose we save th e re st of th is candy
for th e child ren .”
Northwestern Banker

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

May 19^2

A n y Time, Now
O ld-Fashioned F ath er: “W hen I w as
y o u r age, John, m y p a re n ts never had
any tro uble w ith m e.”
M odern Son: “W ell, up till now, I
can ’t say th a t I have had an y trouble
w ith you, either, Dad.”

Just Watchin
Big Ships
A m erican Sailor: “B attleships! W hy,
th e flagship of our navy is so big th a t
th e captain goes around th e deck in
his au to.”
B ritish Sailor: “You ought to see our
flagship. H ave a look at th e kitchen.
I t ’s so large th e cook has to go th ro u g h
th e Irish stew in a subm arine to see
of th e potatoes are cooked.”

They Satisfy
“My w ife ra n off w ith th e b u tler.”
“W h at a sham e th a t is!”
“I ’m satisfied.
F u rth erm o re, my
house b u rn t dow n and I h av en ’t any
in su ran ce.”
“Too bad.”
“I ’m satisfied; and to cap everything
off business is so bad I ’m going b an k ­
ru p t, b u t I ’m satisfied.”
“H ow is th a t possible w ith all your
m isfo rtu n es?”
“I sm oke Chesterfields.”

Well, W hy Not?
T he stu d en t w as one of those lads
sh o rt on know ledge, b u t long—oh, so
long—on resourcefulness. F o r m any
m in u tes th e professor had been plying
him w ith questions in an effort to
b reak dow n his colossal self-assurance.
“You have h eard of cause and ef­
fect?” th e professor finally inquired.
“Oh, yes,” th e stu d en t replied.
“H ave you h eard of effect com ing
before cause?”
“Indeed, yes,” w as th e reply.
W ith an ill-concealed look of tr i­
um ph, th e professor dem anded, “Give
m e an exam ple!”
“A b arro w w heeled by a m an.”

V isitor: “I see you raise hogs al­
m ost exclusively here. Do you find
th ey pay b e tte r th a n corn and po ta­
toes?”
Hill-Billy: “W al, no. Y u’ see, s tra n ­
ger, haw gs don’t req u ire no ho ein ’.”

The H ard W ay
He rounded a bend a t close to forty.
A sudden skid and th e car overturned.
T hey found them selves sittin g to g eth ­
er, u n h u rt, alongside th e com pletely
sm ashed car. He p u t his arm aro u n d
h e r w aist, b u t she drew away.
“I t ’s all v ery nice,” she sighed, “b u t
w ouldn’t it have been easier to ru n out
of gas?”

Excuse Me, Lady!
F irs t Hobo—Tell me, H ank, w h y
don’t you ever take a bath?
Second—Because I ’m scared of b a th ­
tubs.
F irs t—Scared of b ath tu b s? H ow
come?
Second—My m o th er w as frig h ten ed
by a plum ber!

Still Learning
“Going aro u n d w ith w om en a lot
keeps you young.”
“H ow com e?”
“I sta rte d in going aro u n d w ith th em
four y ears ago w hen I w as a freshm an,
and I ’m sitll a fresh m an .”
No w onder w om en go for card
gam es. T hey are ju st like Love. T he
Queen alw ays follows th e Jack.
H e—Do you believe in free love?
She—Yes, b u t le t’s go to th e m ovies
first.

STATEMENT

OF C O N D I T I O N

•

A P R I L 4, 1942

sources
Loans and Discounts_______________________ $4,236,696.60
64,900.00
Other Bonds and Stocks____________________
76.83
O verdrafts________ ______________________
17,007.63
Furniture and Fixtures_____________________
35,103.04
Customers Liability on Acceptances_________
Government Obligations, Direct
and Fully Guaranteed________ $ 495,675.00
Municipal Bonds_______________ 139,883.17
Cash and Due from Banks______ 2,806,973.44 3,442,531.61
$7,796,315.71

-ei a b i l i t i e s
Capital Stock-Common
Surplus ______________
Undivided Profits______
Reserves ____________
Unearned Discount _________
Bank Liability on Acceptances.
D eposits__________________

200, 000.00
.
200 , 000.00
101,439.15
85,453.16
47,252.92
35,103.04
7,127,067.44
$

$7,796,315.71

ALLEY
A V IN G
DES MOINES
Member F ed eral D eposit Insurance C orporation


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

JLIGHTING under the "Food For Freedom"
banner, Iowa farmers are busy this Spring
increasing production of pork, beef, butter,
cheese, milk, soybeans, eggs and other food­
stuffs for this Nation and our Allies.
Food is essential for Victory. So Iowa's
job in 1942 is just as important as California's
production of planes . . . Michigan's output
of tanks and anti-aircraft guns . . : Pennsyl­
vania's tonnage of steel and ships.
Iowa Banks and Bankers are doing their
part to assist producers, processors and
distributors of food and other supplies
needed to win this all-out War. Correspond­
ent facilities of this Bank are available to
speed "Food For Freedom" production, and
to help meet the unusual demands of these
unusual times. May we serve you?

IO W A -DES MOINES NATIONAL BANK
& T r u st C o m pan y

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

Member of Federal Deposit Insurance Corporation