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$ 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/ Icumwar 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