View original document

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

1945
OUR 50th YEAR

I“13®
,tt

fe sfsf
s ? S is ^
V .-

A Message to the American People from the
Leaders of our Armed Forces. See page 30.

FO.« VICTORY

BUY
UNITED
STATES

WAR
BO NDS
AND

STAMPS


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

How W e Make and Save Money in Our Bank
Page 16

-é

^

»- V » -V A» »

Tim e T ested
Hundreds of banks in the middle west feel that way about
Merchants National Bank correspondent service and for
dependable and time tested service, they recommend this
institution.

^

<fc <fc « ¿ - * « *

We believe good correspondent service must increase in
dependability from year to year.

« ff*

^

A CEDAR R A P ID S B A N K

CEDAR

SERVICING A LL IOWA

THE

MERCHANTS
& NATIONAL BANK
OFFI CERS
J ames E. H amilton, Chairman
S. E. Coquillette, President
H. N. B oyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S mith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
0 . A. Kearney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building1Manager

S

S

«

e

< r <■ í ' e - ^

¿

«f g

4 -i 4

4 ^

S

S ^

RADIOS

C e d a r R a p id s

Io w a

Member Federal Deposit Insurance Corporation

N orthw estern Banker, published m onthly by the De Puy Publishing Company, at 527 Seventh St., Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year.
Entered as Second Class Matter January 1, 1895, at the P ost Office at Des Moines, Iowa, under A ct of March 3, 1879.


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

3

Westinghouse
hands Uncle Sam
a *24,250,000
Tax Check
Post-Gazette Photo

E. M. Elkin (right) of VVestinghouse presents check to Collector Granger

*

' 'ITTSIII

,,A

«weh 13, lg¿

TH00Siro * > ooAoo M luœ
OF INTERNAL

on La Monte Safety Paper
M arch 15th, E. M. Elkin, g en era l tax attorney
lor W estin gh ou se Electric and M anufacturing
C om pany, turned over to C ollector of Internal
R evenue S ta n ley G ranger, a check for tw entyfou r a n d a q u a r te r MILLION d o lla r s — th e
first quarterly p aym en t o n 1944 taxes. » » That
check m a d e the h ea d lin es. It w a s not only the
largest ever receiv ed b y the Pittsburgh Bureau,
but represented the largest tax paym en t ever
m ad e b y W estin gh ou se. » » Such a transfer of

fu n d s to our n a tio n 's tr e a su r y in d ic a t e s th e
sco p e and im portance of that great com pany's
current contributions in the w ar w e are w a g ­
in g . » » A n d th e fa c t th a t th is c h e c k w a s
lithographed on La M onte Safety Paper is further
e v id e n c e of th e c a r e ta k e n b y o u ts ta n d in g
banks and b u sin ess organizations to
fu lly p r o te c t th eir c h e c k s a g a in s t
the hazards of fraudulent alteration
and counterfeiting.
r.7:t:lW:T:i

LA MONTE
GEORGE LA MONTE & SON

O UR 5 0 th YEAR


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

PAPER

Now A s Never
Before We Must
Not Fail!

NUTLEY, NEW JERSEY

Northwestern Banker

Mai] 19^5

4

TH E C H A S E
N A T IO N A L B A N K
OF

T H E C IT Y O F

S T A T E M E N T

|
l

|
|
|
?
!
|
\
}

$
|
|

OF

NEW

YORK

C O N D IT IO N , M A R C H

I

j

31, 1945

RESO U R C ES
C a sh a n d D u e fr o m B a n k s .........................................
U . S. G o v e r n m e n t O b lig a t io n s , d ir e c t a n d fu lly
g u a r a n t e e d ...........................................................................
S tate a n d M u n ic ip a l S e c u r i t i e s .........................................
O th e r S e c u r i t i e s .....................................................................
L o a n s, D is c o u n t s a n d B a n k e r s ’ A c c e p ta n c e s
A c c r u e d I n te r e s t R e c e i v a b l e .........................................
M o r t g a g e s ..................................................................................
C u s to m e r s ’ A c c e p ta n c e L i a b i l i t y ..................................
S to c k o f F ed era l R e s e r v e B a n k .........................................
B a n k in g H o u s e s .....................................................................
O th e r R e a l E s t a t e .....................................................................
O th e r A s s e ts
.
..............................................................

$

8 8 7 ,5 7 2 ,7 0 8 .2 7

|

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

$

\

!

C a p ita l F unds:
C a p ita l S t o c k .................................. $ 1 1 1 ,0 0 0 ,0 0 0 .0 0
S u r p l u s .................................. ......
1 2 4 ,0 0 0 ,0 0 0 .0 0
U n d iv id e d P r o fits . . . .
5 7 ,3 7 1 ,9 0 3 .8 7

!
;

!
/

!
;
;

L IA B IL IT IE S

1

;
j
;

j

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

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

;

t

R e s e r v e f o r C o n t i n g e n c i e s ................................................
R e s e r v e f o r T a x e s , I n te r e st, e tc .........................................
D e p o s i t s .........................................................................................
A c c e p ta n c e s O u ts ta n d in g
. . $
8 ,0 7 8 ,8 0 2 .8 4
L ess A m o u n t in P o r t f o lio
.
4 , 3 8 6 ,7 3 5 .5 6
L ia b ility as E n d o r s e r o n A c c e p ta n c e s
a n d F o r e ig n B i l l s ..............................................................
O th e r L i a b i l i t i e s .....................................................................

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

j

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

j

>
!
!

United States Government and other securities carried at $895,338,440.00 are pledged
to secure U. S. Government War Loan Deposits of $653,035,550.71 and other public
funds and trust deposits, and for other purposes as required or permitted by law.

1

M em b er F ederal D ep o sit Insurance C o rp o ra tio n

Northwestern Banker

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

May 1945

!

<|

O U R 50th YEAR

When you think of the kind of home
you can have tomorrow—think of these
practical, proved advantages that can be
yours
These actual developments are not
dream-children . . . nor the products of
starry-eyed designers of some “brave

new world” beyond the horizon . . . the
overwhelming majority are in existence
right now, only waiting for the mass de­
mand that will follow the war, plus
availablity of materials to make them
as practical a part of your daily life as
a loaf of bread!

The Roof over

Ration
v radiant h«
room evenl.
0f a sunny

CONSIDER

om floor, vw

colar radiatio^
radiation one-th
third-tnm
ly solar
ird --tn ^ &de
Kills as much
right nou>> , 4

mm.

•_iyv0—1
>f at VOVlT reahingnng
never nee
. in^es are
v aluminum same

Sactually
a l t e »in

neW kino

500 homes

“

« K ' ™ S « t o ' d o * * ' “ 8'

- t a few of *he de'

These are jus

tomorrow

\

1
.for now.

t the

home P* since 1933 * oU can affota
practice

convenían«

ofaplX
every te il-a * d

after th<
and at
anee co

O n d when they are yours, they
w ill be worth protecting with the
surest, most complete insurance
you can have . . . quality insur­
ance to equal the quality of your
living conveniences.

* THE HOME ☆
are not merely a definite help in winning the w a r bought systematically, they are an excellent means of saving
with interest to buy quality goods later. Why not maintain and
expand your regular purchases at pre-determined intervals?

War Bonds


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

NEW
FIRE *

automobile

YORK
.

marine in s u ra n ce

6

F ie l d

An Avenue

w a r e h o u s in g

toSound and Profitable Loans
Some of your present custom ers . . . as well as others
whose business you w ould like to have . . . m ay find
their w orking capital insufficient for th eir needs.
M any have inventories th a t offer sound o p p o rtu n i­
ties to you for W arehouse R eceipts Loans. Our Field
W arehousing Service enables you to m ake those
loans against inventories stored rig h t on th e b o r­
row er’s own premises.
W arehouse R eceipts m ake it possible for you to lend
in excess of open-line credit lim its, safely and p ro fit­
ably.
We are specialists in Field W arehousing. O ur experi­
ence is long . . . our responsibility recognized.
W e in v ite b a n k e rs to re q u e st o u r co u n sel w h e n e v e r th e y
a re in te r e s te d in le n d in g ag a in st in v e n to rie s— w ith o u t an y
o b lig a tio n o r co st on th e ir p a rt.

§s>t. $aul ^Terminal TOareöouöe Co.
ST. PAUL MINN.
IOW A OFFICE

O TH ER OFFICES

515 Iowa-Des Moines National Bank Building
DES M O INES

M IN N E A PO L IS
M ILW A U K EE
IN D IA N A P O L IS
D ET R O IT
CHICAGO
N EW YORK BO STO N P H IL A D E L P H IA
PITTSBU R G H
SYRACUSE
M EM PH IS
A TLAN TA CHARLOTTE ALBANY, GA.

T E L E P H O N E 2-1208
T. C. CANNON, D ISTRICT MANAGER

“T he on ly com pan y engaged in F ield W arehousing w ith an office in Iow a ”

Northwestern Banker

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

May 19^5

O U R 5 0 th YEAR

7

FIFTIETH Y E A R

N U M B ER 694

O ldest Financial Journal West of the Mississippi River

/ Q uestion: W h a t do you think
of the G l Bill of Rights and
has your bank made any
loans of this typ e?
H. H. P eters, president, B ank of
Yutan, Y utan, N ebraska: “T here w ill
be little dem and in th is com m unity for
GI loans. Most of o u r boys are send­
ing m oney hom e m o n th ly and w ill
have quite a stak e w hen th e y are dis­
charged. Some w ill be financed by
help of relatives. A few m ig h t w an t
a GI loan and for those w ho do th e
Bill of R ights is all rig h t, but, g en eral­
ly our people feel th a t th e less ‘gov ern ­
m en t h e lp ’ th ey get, th e b e tte r it is.”
E lm o Gardiner, cashier, B ank of
W ood Lake, W ood Lake, N ebraska:
“W e have not m ade any loans of th is
type. A ny loan th a t com es up to the
specification of th e g o v ern m en t w ould
not exceed $30 per head on range
cows in th is te rrito ry and we have
m ade a practice of loaning th is am o u n t
to a qualified b o rro w er in th e past and
are continuing to do so. N inety-nine
p er cent of our dem and for loans in
th is com m unity is for cattle loans and
I do not feel th a t th e GI Bill of R ights
is of any help w hatso ev er in our
m aking a loan. Also th e ra te of in­
te re st is not sufficient for a b an k of
th is size.”
G. M. R obertson, president, F irs t
N ational B ank of W inona, W inona,
M innesota: “I th in k ev ery th in g neces­
sary to be done in reh a b ilita tin g v e t­
eran s into civilian life is a resp o n si­
b ility th a t th e com m unity should be
glad to u n d ertak e. B anks, as financial
leaders in th e ir com m unities, w h eth er
or not th e y like th e seem ingly u n ­
necessary red tape req u ired in con­
nection w ith GI loans should assum e
th e resp o n sib ility of h andling all such
loans as can be pro p erly m ade. The
procedure certain ly could be sim pli­
fied to g re a t advantage b u t as m ore
experience is gained th e y should be

(T u rn to page 46, please)
O U R 5 0 th YEAR


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

IN THIS M A Y, 1945, ISSUE
Editorials
10

Across the Desk from the Publisher........ .................................

Feature Articles
7
9
14
15
16
17
18

W h a t Do Y o u T h in k o f th e G. I. B ill? .............................................................................
D e a r E d it o r .....................................................................................................................................
F r o n t i s p a g e ....... ........ ........................................ ......... .............................. ..................... ............
S ix T ip s f o r T r u s t e e S e rv ic e .....................................................T h o s. A . B e a c o m , J r .
H o w W e M a k e a n d S a v e M o n e y in O u r B a n k ...... .........................................................
S a n F r a n c is c o a n d A ro u n d th e B a y .......................................... M a r g u e r ite B r o w n
W h a t ’s A h e a d f o r B a n k e r s .............................................................. H e n r y H . H a y n e s
N e w s a n d V ie w s o f th e B a n k in g W o r ld ........................................C liffo r d D e P u y

20

Can an Executor Pay Claims?—Legal Department
Central National Observes 50th Anniversary..... .

28

22

Bonds and Investments
G ood M a n a g e m e n t W ill M a in ta in T a x a b le In c o m e ..............R a y m o n d T r ig g e r

33

Insurance
H o w to R e d u c e T ra ffic A c c id e n ts ............................................. ..............S . K . H a r g is

39

State Banking News
M in n e s o ta N e w s ...................................................... ................... .......................... .....................
T w in C ity N e w s ....................................................................................................................
S o u th D a k o ta N e w s ....................................................................................................................
S io u x F a l ls N e w s ...............................................................................................................
N o r th D a k o ta N e w s ....................................................................................................................
F a r g o N e w s ............................ ......... ................................................................................
N e b r a s k a N e w s ......................... ........ ..................... ......... ........................................................
O m a h a C le a r in g s ...............................................................................................................
L in c o ln L o c a ls ................................................................, .....................................................
Io w a N e w s ....................
D e s M o in e s N e w s ........................

45
47
51
51
54
54
57
59
61
63
68

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

69

N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9 , Iowa, Telephone 4 -8 1 6 3
C L IF F O R D DE PU Y , Publisher
R A L P H W. M O O R H E A D
Associate Publisher
E L IZ A B E T H C O L E
Advertising Assistant

H EN RY H. H A Y N ES
Editor
M A R G U E R IT E B R O W N
Office Supervisor

N E W Y O R K O F F IC E
Frank P. Syms, V ic e President, 505 Fifth A v e ., Suite 1806

RUTH K IL L E N
Associate Editor
S A D IE E. W A Y
Circulation Department
Telephone MUrray Hill 2-0326

Northwestern Banker

Mag 19^5

8

TO BANKS
W I T H O U T A FOREIGN DEPARTMENT

LETTERS OF C r e d i t — b o th d o m estic an d fo re ig n — are

in creasin g ly used as a fin an cin g m e th o d by business
to d a y — w h e th e r as b u y e r o r seller. T h e re are definite,
p ra c tic a l reaso n s fo r th is tr e n d — tim e saved, flexibility
p e rm ittin g q u ic k decisions in c o n c lu d in g a deal, and
re d u c ed tim e in v o lv e d in c re d it in v e stig atio n .
Y o u do n o t need a fo reig n d e p a rtm e n t to p a rtic ip a te
in this tre n d . Y o u p ro v id e th e ju d g e m e n t o f c re d it and
k n o w le d g e o f th e c h a ra c te r an d sta n d in g o f th e b o rro w e r;
w e p ro v id e th e m ech an ics o f issu in g th e L e tte r o f C red it.
Y o u r cu sto m er benefits, an d b o th y o u r in s titu tio n and
o u rs are ad eq u a te ly c o m p en sa ted .
W rite us a b o u t L etters o f C re d it and w e w ill e x p lain
h o w w e can " g e t to g e th e r” o n h a n d lin g such tra n sac tio n s.

THE PH IL A D EL PH IA
NATIONAL BANK
PHILADELPHIA
M E M B E R

N orthwestern Banker

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

May 19^5

F E D E R A L

1, PA.
D E P O S I T

*

ORGANIZED

I N S U R A N C E

1803

C O R P O R A T I O N

O U R 5 0 th YEA R

9
N o r th w esten B a n k e r .
It
you do n o t have a d d itio n a l
any are available we should
p re ciate your sending six o f

m ay be th a t
copies b u t if
very m uch a p ­
the p ictu res. ’ ’
E l e a n o r B i v a , Research D e­
p a rtm e n t, F ederal Reserve
B a n k o f Chicago, Chicago
90, Illinois.

"I Am Still Puzzling"
“ I

T he follow in g letters w ere received
from N orth w estern B anker readers.
Your vieivs and opin ion s on any su b­
je c t ivill be g la d ly p u b lish ed in this
colum n.

"Enjoying the Work"
“ I t is ju s t now possible to acknow ledge
some of th e th o u g h tfu l m essages received
fro m m y frie n d s follow ing th e announce­
m ent of m y asso ciatio n w ith th e M idw ay
N a tio n a l B ank.
‘ ‘ I am g ra te fu l fo r your frie n d ly note
a n d assure you I shall do m y b e st to m ake
th e m ost of m y o p p o rtu n ity .
M y days
a re very fu ll, b u t I am en jo y in g th e wTork
trem endously. ’ ’
C h a s . J . Rit t , Vice P resi­
d en t, The M idw ay N a tio n a l
B a n k o f S a in t P aul, S a in t
P aul, M innesota.

"Truman and I Were Buddies"
‘ ‘ M y old f rie n d o f 43 y e a rs ’ sta n d in g ,
th e H on. H a r r y S. T ru m a n , h a s now b e ­
come th e P re s id e n t of th e U n ite d S ta te s.
B eliev e it o r n o t, he a n d I w e re b u d d ies
to g e th e r a n d w o rk e d side b y side in th e
‘ O ld Z o o ’ dowTn in th e b a se m e n t of th e old
N a tio n a l B a n k o f C om m erce in K a n sa s
C ity, M issouri, in th e y e a rs 1903 to 1907.
D u rin g th o se y e a rs he a n d I w e n t to th e
n ig h t law schools, b u t I h a d to q u it as I
w o rk e d e x tr a a lm o st e v e ry o th e r n ig h t on
th e v a rio u s b o o k k e e p e r desks, p o stin g
th e ir books, fo r w hich I w as p a id 25 c en ts
a n ig h t p lu s m y su p p e r tic k e t. T h is e x ­
t r a ‘ s a l a r y ? ’ a u g m e n te d m y liv e lih o o d
m eans o f e x iste n c e , a n d g a v e me th e in ­
side in fo rm a tio n as to every account in
t h a t b a n k w h ic h w a s th e n th e la rg e s t b a n k
b e tw e e n C hicago a n d th e C oast— 36 m il­
lions d o lla rs. I b ecam e th e p a y in g te lle r
o f th e b a n k as th e re su lt, a n d H a r r y co n ­
tin u e d to h elp m e in m y w o rk . W h en
H a r r y h a d finished his law course he q u it,
a n d now look a t h im — th e top m an o f our
b e lo v e d c o u n try a n d , in re a lity , th e w orld.
I t is a n epic of th e y o u n g m an, b o rn on
a fa rm , w o rk in g h is w a y up th e la d d e r,
ro u n d b y ro u n d , eyes a lw a y s to th e sky,
— u n til now , a t th is tim e, he h a s becom e
ou r g u id e to le a d us a ll out o f th e w ild e r­
n ess a n d in to th e la n d of P e a ce a n d P ro s ­
p e rity .
O ur c o u n try re m a in s in good
h a n d s,— so m e w h a t ‘ B ig h t o f th e C e n te r ’—
so to sp e a k — so we h a v e a b rig h t fu tu re
a h e a d o f us. ’ ’
J a y I). B i s i n g , 5210 B u r t
S tre et, Omaha 3, N ebraska.

ju s t picked up your A p ril N o r t h ­
w ester n B an k er.
F e a tu re d on th e cover
w as the sta te m e n t: ‘ W e M ake I t Tough
fo r PC A . ’
‘ ‘ I tu rn to p a g e 16, as directed, an d ex­
pect to really find som ething. The a rticle
is read. No figures are given. H a s a sort
of ‘ p h o n y ’ rin g — you know how you re ac t
unconsciously —■sounded like
som ebody
m ig h t have ed ited a le tte r th is ban k er
w rote.
“ The N o r t h w e s t e r n B a n k e r is tossed
to one side. I am still puzzling over th is
b a n k w hich m ade ‘i t to u g h fo r P C A .’ So,
I tak e m y d irec to ry a n d look up P a rk e r,
In d ia n a . I find here a b a n k w ith one m il­
lion deposits an d $135,000 in loans (Ju n e ,
’44 ).
“ Yes, sir, th ey a re sure ra is in g hell w ith
the PCA .
‘ ‘ Checked a little fu rth e r on th is b a n k
an d I find its D ecem ber, 1942, sta te m en t
shows $101,000. T his b a n k er sincerely b e ­
lieves he is ‘ m ak in g it tough fo r the P C A ,’
b u t, as a p ublisher, you should know b e t­
ter.
I t is ju s t th is so rt of p ro p a g an d a
provided b y financial p ublications, b a n k e rs ’
associations a n d th e ir m agazines th a t en­
able the PC A s to go rig h t on in tre n ch in g
them selves and in creasin g th e ir volume of
loans w hile all b a n k loan volumes decrease.
You and your k in d th ro u g h o u t the b an k in g
field sim ply d e tra c t a tte n tio n fro m the real
evil— the u n fa ir, dishonest c h a ra c te r of
governm ent subsidized, tax -ex em p t com peti­
tio n — which we c o u n try b an k ers a re told we
m ust m eet.
A s the re su lt of sta te m en ts
such as th is one, we are view ing w ith less
and less confidence m uch of the m a te ria l
th a t a p p ea rs in financial p ublications. ’ ’
E . W . R o s s i t e r , P resident,
B a n k o f H a r tin g to n , H a r t­
in g to n , N ebraska.
E d ito r ’s N o te : The article by N . E .
Thornburg, assista n t cashier o f the P a rker
B a n k in g Com pany, P arker, In d ia n a , was
p u blished by the N o r t h w e s t e r n B a n k e r

ju s t as it was received and w as n o t edited
by us as M r. R o ssiter im plies.
The plan which M r. T h o rnburg has used
to com pete w ith the P C A e vid en tly had sa t­
isfa c to ry re su lts as he says in his article,
‘ ‘I t came back to us th a t the P C A repre­
se n ta tiv e was even sa yin g th a t we were g iv ­
ing them tough com petition. T h is w as some
o f th e best a d vertisin g we could g e t.”
M r. R o ssiter m u st also rem em ber th a t
P arker, In d ia n a , is a sm all tow n o f less
th a n 800 p o pulation w ith no fa cto rie s or
m ills and surrounded on three sides by
banks, one o f which is 10 m iles aw ay, an­
other one 11 m iles and another one fo u r
m iles. There are 12 banks in th e county
w hich cu ts down the trade te rrito ry con­
siderably.
A s fa r as the N o r t h w e s t e r n B a n k e r ’ s
positio n concerning P C A and other govern­
m e n t c o m p etitio n we have alw ays been op­
posed to it and still are as M r. R o ssiter or
any one else can see by reading ‘ ‘A cross
the D esk F rom the P ublisher, ’ ’ fro m m onth
to m onth.

"Will Try to Exceed Our Quota"
“ I n your A p ril N o r t h w e s t e r n B a n k e r
you gave a lis t of Iow a banks w inning
tro p h y prizes fo r best sales of bonds in
th e sixth w ar loan drive. T his lis t w as d i­
vided in to th ree classes. O ur dep o sits are
a ro u n d $4,000,000 so we would be in Class
2. W e n o te th a t in th is class th e F ir s t
S ta te B a n k of A udubon w as first w ith
111 per cent of th e ir q u o ta an d th a t th e
H a m p to n S ta te B a n k w as second w ith 95
per cent.
“ O ur q u o ta in th e s ix th w a r lo a n d riv e
w as $172,450 a n d our sales, according to
F e d e ra l B eserve to ta ls, am ounted to $193,783, or 112 p e r cent o f our quota. W e are
in te re ste d in know ning how th e w inners are
selected an d w hether th e re a re some special
requirem ents fo r com peting fo r th e trophies.
O ur quota fo r the seventh w ar loan drive
is $244,000 and we a re going to t r y to
exceed it. ’ ’
J . B . B o a t , Vice P resid en t,
The P ella N a tio n a l B a n k,
P ella, Iow a.
E d ito r ’s N o te :

"Like Colored Pictures"
“ T h ere a re se v e ra l people in our office
w ho w ould lik e th e colored p ic tu re of th e
h u n tin g dog shown on page 15 of the
O U R 5 0 th YEAR


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

figures which the
published were
com piled by the W ar F inance C om m ittee
and the trophies were aw arded th ro u g h th a t
office.

N

Y es, b u t t h e r e ’s lo ts of gu y s a ro u n d h e re
w ith c u rly h a ir t h a t d ress in b row n!

o r th w ester n

The

B

anker

Northwestern Banker

May Í9b5

10

Across the Desk
local investm ent companies to provide capital for
sm all business based on the term s w hich your re ­
p o rt outlined.
W e believe th a t your plan of providing capital
fo r sm all business should he given very serious
consideration and we sincerely hope th at, as you
have pointed out, your plan w ill be “ successful
in placing our N ational economy on a sounder
b a sis” .

jb e a b c J ia 'i'u j, S .

3 > ea > i [ J a litt f y . tf- e + in e lL f,:

As chairm an of the “ Sm all Business Com mit­
te e ” of the Investm ent B ankers A ssociation of
Am erica, the survey you m ade on capital for small
business has proved very interesting reading, and
some of your im p o rtan t points were these :
(1) Capital issues of less than 100 thousand
dollars cover the overwhelming- proportion of the
needs for outside capital on the part of small
business.
(2) The existing- investment banking- machin­
ery cannot be expected to handle capital issues in
such small amounts.
(3) Federal taxation on business has made it
exceedingly difficult for small enterprises to pro­
vide for their capital requirements out of ac­
cumulated earnings.
(4) The success of any small business depends
almost wholly upon the managerial ability of one
or two individuals.
(5) No centralized national authority can prop­
erly handle this problem, and most unsuited of
all is the federal government, because it is a
political organization and cannot discriminate ob­
jectively among management risks.
(6) The situation calls for the creation of new
institutional machinery in the form of a system
of decentralized investment funds under the man­
agement of local businessmen who are the only
persons well qualified to evaluate the merits of
small local enterprises.
You then suggest, Mr. Fennelly, the enactm ent
of fed eral legislation which would authorize the
establishm ent, u n d er p riv ate m anagem ent, of

Northwestern Banker

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

May 19'i5

You have entered the P residency und er very
try in g conditions.
You have entered the W hite House w ith the
Japanese w ar still to win and w ith the term s and
conditions of peace still to be settled.
You have become Commander-in-Cliief of the
U nited States, which now has the greatest arm y
and the greatest navy in the world.
You have become P resid en t when im p o rtan t
problem s will come piling on your desk w ith in ­
creased rap id ity .
B ut even w ith these trem endous problem s fa c­
ing you, we certainly believe you are off to a good
start.
Our sentim ents are very well expressed by w hat
S enator R obert T aft of Ohio, son of a form er re ­
publican P resident, said, when he visited you w ith
the delegation of eight republican senators soon
a fte r you became P resid en t: “ We are here, Mr.
President, to offer you our wholehearted support.
Although there w ill be times in the future when
we disagree over specific issues, you may be cer­
tain that we w ill be sincerely working with you
for the good of our country.”
So, we salute you, Mr. T rum an, as the 33rd
P resid en t of the U nited States, and wish fo r you
increased wisdom and ability to handle the daily
perplexing questions which face you as P resid en t
of the greatest nation on earth.

3 )eat A*n&>ilca*i

e.jxo.d.itan.'L:

As a m em ber of the A m erican fam ily of deposi­
tors, you saved 40 billion dollars durin g 1944
which was 10 tim es more th an in 1940.
We have ju st learned about this m arvelous
record from figures released hv the Securities and
E xchange Commission.
D uring the last two and a half years, you A m eri­
can depositors have been saving n early 25% of
your income.

O UR 5 0 th YEA R

11

From the Publisher
A t the end of 1944 your individual savings in­
cluded these ite m s: Cash and deposits— 22 bil­
lion dollars in currency, 39 billion in tim e de­
posits, 34 billion in dem and d ep o sits; U. S. gov­
ernm ent securities—29 billion in series A-E bonds,
eight billion in F and G bonds, and 16 billion in
other U. S. securities.
D uring 1944, currency and bank deposits in­
creased by 17 billion dollars; holding in govern­
m ent bonds by 15 b illio n ; equity in priv ate in su r­
ance (m ostly life insurance) by $3,300,000,000,
and investm ents in savings and loan associations,
900 million.
This is a rem arkable record and we hope this
“ back lo g ” will help to ca rry you th ro u g h w h at­
ever period of deflation m ay lie ahead.

3 ) e a s t G a n l M . tf- lo - ia :

As chairm an of the Consumer C redit Committee
of the A.B.A., your re p o rt on “ Home A ppliance
F in a n c in g ” is m ost interesting. As vice president
of the F irst N ational B ank of M ilwaukee, you
have also had m uch actual experience in the
han d lin g of consum er credit.
In your report, you have divided it into two
p a rts ; (1) “ R etail p aper p u rc h ased ” w hich ex­
plains steps tak en in tra n sfe rrin g tim e sales ob­
ligations from the m erchant to the bank, and (2)
“ W holesale floor p la n ” w hereby the bank p ro ­
vides financing to m eet dealer requirem ents for
m erchandise purchases.
The use of bank credit to finance fam ily p u r­
chases of such item s as w ashing m achines, re ­
frig e rato rs, vacuum cleaners, and other durable
appliances provides a convenient m ethod for sup­
plying household needs to an individual on a de­
fe rred paym ent basis and a t the same tim e bene­
fits the m erchant who receives cash on the sale
a t the tim e of delivery. Such business has proven
profitable to banks and, if properly conducted,
is a source of contacts for good relationships w ith
the public.
The bank and the m erchant agree in advance
as to the term s by w hich these tim e sales will be
financed, including the down paym ent, and in stal­
m ents to be paid by the purchaser. The bank pro­
vides the m erchant w ith certain form s, w hich may
be filled out a t the tim e the sale is m ade in the
store of the m erchant. A quick credit check is
mad6, an d if the obligation is acceptable, it is
subsequently sold by assignm ent to the financing
b an k a fte r the delivery of the m erchandise.

O U R 5 0 th YEAR


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

There is no question but th a t bankers can look
fo rw ard to a huge consum er credit business in
supplying th e ir custom ers w ith ready cash for the
purchase of durable goods which have not been
m anufactured for m ore th an 3 years since we have
been a t war.
It is estim ated th a t more th an one billion dol­
lars of consum er durable goods will be bought
every year for the first 10 postw ar years through
consum er credit alone.
Y our home appliance financing m anual, Mr.
F lora, is certainly a real contribution to banks'
w hich are either now in the consum er cred it lend­
ing field or which plan to enter this field.

PeteUf, W . /iidLwe.U:
Y our re p o rt on “ A Commercial Policy fo r the
U nited N a tio n s” , and w hich you prep ared fo r the
Com mittee on In tern atio n al Economic Policy, is
a very in terestin g study.
If we are to tak e advantage of our m any op­
p ortunities which now exist in the “ One W o rld ”
to which the late W endell AVillkie referred , we
m ust develop, im prove and increase our trad e
w ith foreign countries. W e m ust sell more goods
to them and we m ust buy more goods from them.
As you emphasize, Dr. Bidwell, “ E m erging from
the w ar w ith enorm ously expanded productive
capacity, the U nited S tates will have an obvious
in terest in the freest possible access to foreign
m arkets. W e shall be interested in the pro sp erity
of our custom ers and our debtors and of all the
countries w ith w hich they, in tu rn , are connected
by commerce and finance; and th a t m eans all the
world. B ut the interests of this country in in te r­
national cooperation in commercial policy, in
m onetary policy, in investm ent, and in other fields
go m uch deeper. These deeper interests of the
U nited States lie in the m aintenance of peace
am ong the nations and in the preservatio n in this
country of dem ocratic institutions. F o r these
reasons, if fo r none other, we should p artic ip a te
w ith other nations in fram ing common p ostw ar
policies w ith respect to money, investm ent, and
tr a d e .”
W e m ust establish a program of in tern atio n al
cooperation, n o t only because it will be beneficial
to us, b u t because only on such a prem ise can we
hope to avoid fu tu re wars.

Northwestern Banker

May 1945

12

A STO RY OF
50 YEA R S
(TOLD IN LESS THAN 5 M IN U TES)

Just

fifty

years ago on
May 2, 1895

forem ost

fin a n cia l in stitu tio n s

w ith

de­

p o sits in ex c e ss o f $70,000,000.00.

D u rin g the past h a lf-cen tu ry — perhaps the
m ost stirrin g and ev en tfu l in all w orld
h isto ry — th e C entral N a tio n a l has m oved

— the doors
of this institution swung

stea d ily forw ard.

T h rou gh wars and peace— boom s and de­

open to the public for

p ressio n s— it has exp erien ced a constant,

the first time.

m erger o r c o n s o l i d a t i o n .

norm al grow th , w ith o u t b en efit o f a sin g le
F ou n d ed by

Iow ans— and d ed icated to the fin an cial and

S ta rtin g w ith a m od est capital o f $50,000.00
and d e p o sits o f le ss than $5,000.00— it w as
the purpose o f th e C entral’s fou n d ers that

banking needs o f Iow an s— it has rem ained,
and w ill so rem ain, a str ic tly Iow a in s ti­
tu tion .

it sh ou ld be*an in stitu tio n d ed icated to pro­

Northw estern Banker

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

v id in g a sound, adequate and und erstan d ­

T h e C entral N ation al has alw ays adhered

in g ban k in g serv ice to D es M oin es and

to th e b e lie f that a bank can be safe w ith o u t

Iow a.

fou n d ers

b ein g “sta rch y ”— and stable w ith o u t b ein g

“b u ild ed w e ll” is the fact that tod ay the

“s to d g y ” . . . that it can com m and respect

C entral N a tio n a l ranks as one of Iow a’s

and hold public co n fid en ce and, at the same

As

May 1945

e v id e n c e

th a t

its

O U R 5 0 th YEAR

13

tim e, be warm , hum an and fr ie n d ly in its
cu stom er rela tio n sh ip s.
W . J. G O O D W IN
Chairman, Board of Directors
E. F. B U C K L E Y
President
F R A N K R. W A R D E N
V ice-President
A . T. D O N H O W E
V ice-President
L EH M A N PLUM M ER
Vice-President
J. R. C A PPS
V ice-President and Cashier
F R E D H. Q U IN E R
Vice-President
E M M E T T E. JO H N S
V ice-President
N O E L T. R O B IN S O N
V ice-President and Trust Officer
I. L. W R IG H T
Trust Officer
A L B E R T C. R O B E R T S
A ssistant Trust Officer
G EO R G E L. N IS S L Y
A ssistant Trust Officer
* IR W IN A B R A M S
A ssistant Cashier
G. W . B A R T M E SS, JR.
A ssistant Cashier
J. E. Q U IN E R
A ssistant Cashier
*D . R. W IT H IN G T O N
A ssistant Cashier
W. G. K A N E
A ssistant Cashier
C. M. L A R SO N
A ssistant Cashier
G. R. PA R K E R
A ssistant Cashier

U n d er n o r m a l p e a c e t i m e co n d itio n s w e
w ou ld fe e l ju s tifie d in p u b lic ly celeb ra tin g
our

G olden

A n n iversary.

H ow ever, our

C ountry is at W ar. W e are c o n sta n tly re­
m inded o f it by the fa ct that fifty -tw o of
our valued asso cia tes are serv in g in the
A rm ed

F orces

o f our

C ountry— tw o

of

w hom , L t. Col. J o h n C. P e tty and L t. D avid
G. G ault have en tered “E tern a l R e st” on
fo r e ig n so il.

It is im p o ssib le for us to reco n cile p ersonal
p leasu res for o u rselv es w ith the u n se lfish
sa c r ific e s b ein g m ade by our “a sso cia tes-in arm s.”

So— our F iftie th B irth d a y — fin d s us gra te­
fu l for the past— aware o f the p resen t—
alert to the fu tu re— and hum bly p u rsu ing
our ap p oin ted task s w h ich w e hope w ill
con trib u te, in som e sm all m easure, tow ards
retu rn in g th e w orld to th e w a y s o f Peace.

G. E. BR A M M E R
Brammer, Brody, Charlton & Parker
E. F. B U C K L E Y
President
HARRY GOLDM AN
President, C. C. Taft Co.
W M . J. G O O D W IN
Chairman, Board of Directors
♦R O B E R T K. G O O D W IN
President, Redfield Brick & Tile Co.
H. F. GROSS
Chairman of Board, Iowa Mutual Tornado
Insurance A ssociation
B. R E E S JO N E S
President, Town Mutual Dwelling Insurance
Company
M ARK L. JO H N S O N
Real Estate
G UY E. LO G A N
President, Standard Chemical
Company
W A L T E R E. M U IR
G E O R G E A. PE A K
Real E state
J U L IA N A. P E V E R IL L
President, Hudson-Jones
A uto Company
W A L T E R L. ST E W A R T
Gibson, Stewart & Garrett
♦On leave of absence, serving
in U. S. Armed Forces.

5 0 Y e a rs of Frien d ly Service

C EN T R A L N A T IO N A L B A N K & T R U S T CO M PA N Y
DES

MOINES,

O U R 5 0 th YEAR


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

IOWA

MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Northwestern Banker

May 1945

14

Northw estern Banker

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

May 1945

O U R 5 0 th YEAR

15

6 Tips for TfUStee Service
" A G re a t Field Is O pen to the C o rp o ra te Trustee Courageous
Enough to Enter It"

LL business is recognized as a
v en tu re, a speculation.
Life
itself is a sequence of risks.
W hen d eath interv en es, p ro p e rty risk s
are tra n sfe rre d , not ended. A de­
ced en t’s business v e n tu re becom es an
ad v en tu re in b u siness for those w ho
in h e rit th e payroll responsibilities.
By m eans of insurance, m en can p ro ­
tect them selves ag ain st m an y hazards,
such as fire, th eft, and p ersonal in ju ry .
These and scores of o th er dang ers can
be discounted at th e cost of a m odest
prem ium .
P erfect safety, how ever,
cannot be bought; absolute secu rity
cannot be secured. Insolvency is an
ever p re se n t risk. W ealth is su bject to

A

By Thomas A . Beacom, J r .
Vice President
First National Bank
Chic ago

At least one generalization can be
accepted as valid by th e business m an
who has m ost of his eggs in one bas­
ket: A testam entary p rovision m ay
not alw a y s be good, but an in testate
arrangem ent is alm ost a lw ays bad.

U nless a w ill is so im perfect as to
cause th e h eirs to dissipate th e ir for­
tu n e in fruitless litigation, it w ill cer­
tain ly be b e tte r th a n nothing as a
guide to th e in h erito r of a going bu si­
ness.
W hen a m an dies w ith no w ill b ut
w ith a good business, th e ad m in istra­
to r m u st decide (if liquidation is
n eith er necessary nor desirable)
w h eth er it is b e tte r to ru n th e busi­
ness or ru n from th e job. W h atever
th e decision, it m u st be m ade m ore or
less blindly. It is n ot com plicated by
an y sense of d uty owed to th e decedent
(such as an executor w ould feel) be­
cause it m ay be reasoned th a t if th e
p a rty dying th o u g h t so little of his
estate as to leave it to chance an d th e
statutes, no one b u t th e h eirs and the
tax collector need be v itally concerned
about it. Reasonable foresight on th e
p a rt of th e decedent w ould re su lt in a
will. A good w ill w ould provide a w ay

m any unpredictable and som e u ncon­

To m in i­
m ize th e dan g er of th in g s unforeseen
and unforseeable, a m an m ay elect to
tak e a p a rtn e r. He cannot hope to
alte r th e n a tu re of th e risk since th e
th re a t of failu re cannot be elim inated
b u t he can and does hope to affect th e
degree of risk. He th in k s of halving
his losses; in stead a p a rtn e r risk s
doubling them ; in short, m ay have and
not halve a t th e sam e tim e. Or a group
of m en m ay organize a corporation.
In th a t event, th e liabilities are spread;
so, too, are gains. S hareholders sh are
profits b u t th e y m u st also su stain
w h atev er losses are incurred. Red ink
tro lla b le adArerse influences.

is as im partial as b lack .

T hese aphorism s of th e business
w orld give pause to th e professional
tru ste e charged w ith th e responsibility
of m anaging a business enterp rise.
The fiduciary is exp ected to take
Charge of som eth in g started by som e­
one else and, in fair w eath er or foul,
operate it profitably. F a ilu re is not

readily condoned by th e courts. R isks
are su b stan tial. R eluctance to act is
u n d erstan d ab le. U nw illingness to act
can be explained. B ut th e courageous
and th e useful course is one of affirm ­
ative action. The thesis least m ain ­
tain ed is th a t corporate fiduciaries
should not only accept b u t should seek
o p p o rtu n ity to serve m en w ho own
pred o m in an t in te re sts in successful
business en terp rises. T his contention
deserves a g re a te r following. W h eth er
th e ta sk of directing a business is in ­
h erited or acquired by agreem ent, it is
one th a t a w ell-equipped co rporate fi­
duciary can hope to p erform success­
fully.
O U R 5 0 th YEAR


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

talent, and the p ossession of it is, in
the last an alysis, the b est safeguard a
p rofessional tru stee can have again st
co stly and disastrous m istakes.

T H O M A S A. BEA C O M , Jr.
“ B u s in e s s m e n w a n t tr u s t s e r v ic e ”

that an execu tor could follow . Cer­
tain ly a volu ntary tru st could be m ade
to m eet every anticipated difficulty.

T hen th e tru ste e at death of th e b u si­
ness ow ner could proceed w ith su p er­
vision of th e su rviving business v en ­
tu re w ith know ledge of th e policies,
objectives, and problem s of th e busi­
ness itself, as w ell as an u n d e rsta n d ­
ing of th e ow ner’s hopes and asp ira­
tions.
In th ree capacities, th erefo re—as ad­
m inistrato r, executor, and tru ste e (vol­
u n ta ry or te sta m e n ta ry )—th e profes­
sional fiduciary m ay have occasion to
ru n a business.

The credit experience of a bank p ro ­
vides invaluable source m aterial for a
stu d y of w h at can be done to m ake a
business profitable and w h at should
not be done if b an k ru p tcy is to be
avoided. E xperience is a g reat teach ­
er. In due tim e any reasonably good
professional corporate tru s t organiza­
tion should know th e advantages a
p rem editated will has over an in testate
gift and be able to co n trast th e effect
produced by each on a going business.
A fter acting as tru ste e u n d er m any
v o lu n tary agreem ents, and dealing
w ith successive able business m en,
such organizations can acquire a tech ­
nique (seldom m atched by a single
person) for judging and, if necessary,
finding and supervising com petent
m anagem ent. The ab ility to d istin gu ish

A dm itting th a t th e objections to a
policy of easy acceptance of m anage­
m ent responsibilities are form idable,
and g ran tin g th a t th e in h eren t risk s in
controlling a going business are sub­
stan tial, still th ere is good reason to
contend th a t a great field of oppor­

b etw een good and bad m anagem ent is
an acquired rath er than an inherited

tu n ity is open to the corporate tru stee
courageous enough to en ter it.

Northwestern Banker

May 1945

16

H ow W e

M ck6 and S(tVB

M o n e y in O u r Bank
Five Bankers Suggest Practical Ideas That H ave
Proved Profitable
H E N it comes to looking for
new and im proved m ethods of
o perating procedure, bankers
are no different from those engaged in
any o th er business. T hey are in te r­
ested in b e tte r and m ore efficient w ays
to p erform ro u tin e d uties incident to
b an k operation, th ey are in terested in
hav in g a satisfied staff of w o rk ers be­
cause an em ployee w ho likes his job
and is w ell paid in it does b e tte r w ork,
an d b an k s are in te re ste d in new ideas
to im prove th e ir public relations.
B anks m ake and save m oney th ro u g h
adoption of practical ideas.
H ere are som e ideas w hich b an k ers
have told th e N o r t h w e s t e r n B a n k e r
th e y have found profitable:

W

New W age Formula
P. A. DIETZ, President
Walcott Trust and Savings Bank
W alcott, Iowa

“T h ere are no tric k s in th e ban k in g
trad e th a t I know about, an d th e re g u ­
la r procedure of o p eratin g a profitable
and sound b an k m u st be w ell know n
to every ban k er. T he m ost im p o rtan t
foundation is clearly th e in v estm en t of
funds w ith o u t excessive risk. The
stru c tu re itself is th e building of in­
come from th ese sound loans, and from
charges for vario u s services p e r­
form ed, all co n sisten t w ith th e satis­
faction of y o u r custom ers an d condu­
cive to a steady flow of such incom e
into th e bank. T he “Saving M oney”
is sim ply th e p ay m en t of in te re st to
depositors and th e in c u rrin g of o th er
expenses according to y o u r income.
Is th e re any o th er way?
“W e have been q uite in terested in
th e problem of fair p ay m en t of salaries
and wages. You m ig h t be in terested
in th e form ula devised by our board of
directors. W ith w ages still in line w ith
those paid before th e w ar, th e follow­
ing schedule of bonus pay m en ts has
been set up.
“F irs t tak e th e com bined capital,
su rp lu s and undivided profits a t th e
beginning of th e y e a r an d su b tra c t th e
incom e ta x paid for th e previous year.
T his is th e stock h o ld er’s investm ent.
Northwestern Banker

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

May 1945

“If net earnings exceed 6 p er cent
sufficiently to pay 5 per cent bonus, it
shall be paid; 6% per cent sufficiently
to pay 7% p er cent bonus, it shall be
paid; 7 p er cent sufficiently to pay 10
p er cent bonus, it shall be paid; 7% per
cent sufficiently to pay 12% per cent
bonus, it shall be paid; 8 p er cent suffi­
ciently to pay 15 p er cent bonus, it
shall be paid; 8% p er cent sufficiently
to pay 17% p er cent bonus, it shall be
paid; 9 per cent sufficiently to pay 20
p er cent bonus, it shall be paid.
“No bonus shall be paid in excess of
20 p e r cent.
“W ith a few m inor changes in the
low er w age and salary groups to tak e
care of norm al advancem ents th e
above schedule seem s to us to be fair to
our stockholders and employes. I t is
also an incentive to every em ploye to
“m ake m oney” for th e bank, and to
“save m oney for th e b ank w herev er
possible since we have a personal stake
in th e n et profit of our in stitu tio n .”

rectors of th e b ank and w ives attended.
We m ixed them up to sta rt w ith —
asked each person to be ready to tell
w ho th e nex t person was, w here th ey
came from , som ething about th em —
this w as done ju st afte r th e first course.
T hey had to v isit and get acquainted.
“T hen we m oved th e w om en from
one table to an o th er—th ere w ere sev­
eral tables—and th u s m ixed them up
some more.
“T here w ere no speeches. I can’t
rem em ber th a t th e nam e of th e b ank
w as even m entioned. A fter th is slight
program , we all w en t to th e m ovies.
The date had been picked so th e movie
w as one th a t th e group w ould enjoy.
“W e did th e sam e th in g for th e REA
directors and officers and w ives—for
th e AAA—and w ill do it soon for th e
ratio n boards and d raft board and
w ives (or husbands).
“It is a chance to give a group some
recognition for com m unity service—
and it does create a lot of good w ill.”

Red uce Interest Rates

Get Customer Confidence

M. A. LUKKEN, President

H. W. CLARKSON, President

Alexandria S ta te Bank
Alexandria, Minnesota

First National Bank
Hettinger, North Dakota

“I th in k cuttin g dovffi on th e ra te of
in te re st paid depositors is responsible
for a good portion of our increased
profits, in addition to exchange and
service charges w hich m ake consider­
able m oney for a b ank our size. We
have no p articu lar ad vertising p ro ­
gram , n o r any set rules of operation.
Our business is done largely w ith
farm ers, w ho supply our m ain source
of incom e y ear in and y e a r out.”

“Our policy has been to give the
custom er a square deal. W e have his
confidence and he in tu rn has confi­
dence in th e bank, and th a t th e b an k
w ill do ev ery th in g possible to help him
m ake a profit in his business, w h eth er
he is a borrow er or n ot.”

G ood Publ ic Relations
WARREN GARST, Cashier
Home S ta te Bank
Jefferson, Iowa

“W e have done som ething recently
th a t m ight be of in te re st to o th er banks
—we have invited th e officers and di­
recto rs of th e F a rm B u reau and th e ir
w ives to a dinner. T he officers and di­

Smiling Service
S. R. DeCOU, Cashier
First National Bank
Woodbine, Iowa

“W e ju s t try to ru n a good bank,
giving our custom ers efficient and
p rom pt service w ith a smile. E v ery
person w ho comes in our door gets a
h earin g regardless of w h a t he or she
m ay w ant, and we alw ays try to give
a p leasan t “y e s” or “no” as th e case
seem s to w a rra n t.”
(T u rn to page 24, please)
O U R 5 0 th YEA R

17

San Francisco and Around the Bay
Seen and H eard Along the W a y From Iowa
to C a lifo rn ia — and Back
HAD an ticip ated th a t trav elin g d u r­
ing w artim e w ould be v ery difficult,
b u t found it did not differ g reatly
from tra v e lin g in o rd in ary tim es —
tra in s w ere a little m ore crow ded, pas­
sengers a little m ore frien d ly and co­
operative, and w estb oun d w ere about
70 p er cent in unifo rm s of various n a ­
tions. The dining cars w ere open for
b re a k fa st an d d in n ers only, and due to
scarcity of certain item s, th e m enus
w ere ra th e r lim ited. W e alw ays h ad a
choice of th re e b reak fasts—boiled eggs,
scram bled eggs or fried eggs. T he m ain
course for d in n e r usu ally consisted of
fish or fowl. B u tter w as served to

I

service m en and w om en only.

Topics of conversation varied: Mrs.
B. H. from B on g Island, N ew York,
on h e r w ay to a six w eek s’ Reno-vation, w as m ostly concerned about find­
ing h e r Long Islan d neighbor, Gloria

By M arguerite Brown
Asso cia te Ed ito r
The Northwestern Banker

E ditor's N o te :— Just previou s to
the opening of th e U nited N ations
Conference in San Francisco, M ar­
gu erite Brown, associate ed itor of
th e N O R T H W E S T E R N B A N K E R .
m ade a trip to San Francisco and
th e Pacific Coast and we are
sure th a t the readers of the
N O R T H W E S T E R N B A N K E R w ill
be in terested in her observations
m ade du rin g th e trip.
A s one ivriter recen tly said, ‘"The
cosm opolitan colossus called San
Francisco, w hich clim bs tirelessly
over 42 square m iles of California
hills, was born to be a c ity of h ead­
lines. H isto ry and San Francisco
have w alked hand in hand since
1769 when Don C aspar de P ortola
discovered San Francisco B ay.”
A rm y doc­
to rs and n u rses are attach ed to each
car. N ot all of th e w ounded w ere con­
fined to beds and th ey w ere all in good
sp irits and v ery happy to be back in
th e U nited States.
in place of th e u su al tw o.

A lc a tra z Isla n d

V anderbilt de Ciceo, also in Reno for

th e sam e purpose. F o r those of you
w ho m ay be interested , it seem s th a t
y o u r local a tto rn e y contacts th e N e­
vada atto rn ey , w ho in tu rn m akes all
arra n g e m en ts for you, including hotel
reserv atio n s, etc. The price ranges
from $25 to $500 p er week.
The Catholic Sister, w ho had ju s t re ­
tu rn e d from a six-year stay in China,
had p len ty of good advice for th e
young lady in civil service w ho h ad
ju s t signed up for tw o y e a rs’ w o rk in
H onolulu an d th e P hilippines. E v en
w ith th e precau tio n of m alaria and ty ­
phoid shots ev ery six m onths, condi­
tions in C hina m u st be appalling, and
m an y civilians and m ilita ry p ersonnel
die every day from th e dreaded fevers.
T h ere w ere th re e h ospital cars a t­
tached to o u r train . T hese cars are
sim ilar in con stru ctio n to a reg u lar
P ullm an, b u t have th ree tiers of b erths
OUR 5 0 th YEAR


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

tig h ter, San F rancisco’s m ost respected
citizenry m ay be its bridge sleepers.
B etw een service m en an d th e ir fam ­
ilies and shipyard w o rkers and th e ir
fam ilies, every spot of th e Bay area is
cram m ed and jam m ed w ith h ousin g
units, b u ilt on th e level and on th e
sides of th e hills lik e m illion s of m ush­
room s th a t sp ru n g up over night.

W ith all of th e people w ho m u st be
fed, th e re seem ed to be no shortage of
an y p artic u la r item of food. W hite
potatoes w ere not alw ays available in
grocery stores, b u t w ere p lentiful in
resta u ra n ts. F ried p otatoes w ere auto­
m atically served w ith all breakfasts.

A lthough California claim s 60 per cent
of th e oranges grow n in th e U nited
States, th ey w ere ap p aren tly on lendlease or shipped to F lorida as th e only
orange juice w e could get w a s poured
out of a can at 20c to 30c a glass. M eat­

less days are Tuesdays and T hursdays
and all re sta u ra n ts adhere strictly to
this rule.
One of th e g reatest th rills of the trip
w as w itnessing th e arriv a l of th e sec­
ond shipload of Cabanatuan heroes
(59 officers and 261

en listed

m en ),

w hose first glim pse of th e Golden Gate
bridge in m ore th a n th ree years, w as
th ro u g h a cold and w hipping rain. As
th e big battle-gray tra n sp o rt cleared

Orchids to th e R eno chapter of the
A m erican Red Cross. T hey have m et

every tra in since th e o u tbreak of the
w ar w ith h ot coffee, sandw iches and
hom e-made doughnuts, w ith plenty of
ev ery th in g for everyone. P ost cards,
stam ps and cigarettes w ere also avail­
able for those w ho desired them . E ven
th o u gh our tra in w as only in Reno for
tw e n ty m inutes, every service m an
and w om an on th e tra in w as served
and huge h am pers w ere d istrib u ted
th ro u g h th e hospital cars.

San Francisco
Tim e w as w hen only bum s and
K nights of th e Road slept on th e
bridges. T he m otley assem blage th a t
decorates th e spans today, if in v esti­
gated and polled, m ight reveal perso n ­
ages of rep u tatio n , intelligence and th e
w here-w ith-all to pro p erly pay for
lodgings w ere such th in g s still to be
had in th e W est’s No. 1 W ar City. If
th e c u rre n t housing squeeze gets any

F e r r y B u ild in g

th e G ate’s subm arine nets, scores of
launches, tugs and fireboats cut loose
w ith th e ir w histles, along w ith th e
F e rry B uilding’s scream ing siren. More
th a n a th o u san d relatives and friends
aw aited them on th e pier.
Lack of tim e, and because w e did not
have th e foresight to m ake th e neces­
sary reservations, m ade it im possible
(T u rn to page 24, please)
Northwestern Banker

Mai) 1945

.

A T T H E C E N T R A L S T A T E S C O N F E R E N C E — R e a d in g fro m
le f t to rig h t, 1— N. P. Black, P e rry , Io w a , vice p re sid e n t, Io w a
B a n k e rs A sso c ia tio n , a n d c ash ie r, P e r r y S ta te B a n k ; Ralph
R. Brubacher, Sioux C ity, Io w a, p re sid e n t, Io w a B a n k e rs A sso­
c ia tio n , a n d p re sid e n t, T oy N a tio n a l B a n k , Sioux C ity ; Frank
W arner, D es M oines, se c re ta ry of th e Io w a B a n k ers A sso c ia ­
tio n , a n d new p re s id e n t of th e C en eral S ta te s C o n fe ren c e;

W h at’s

A. G. Brown, N ew Y o rk C ity, A. B. A. d e p u ty m a n a g e r a n d
d ire c to r A g ric u ltu ra l C om m ission; W ilbur F. M cLean, D u lu th ,
p re sid e n t, M in n e so ta B a n k e rs A sso c ia tio n , a n d vice p re sid e n t,
M in n e so ta N a tio n a l B a n k , D u lu th ; a n d George A. B eito, Gonv ick , M in n e so ta, vice p re s id e n t o f th e M in n e so ta B a n k e rs A s­
so c iatio n , a n d p re s id e n t, N o rth e rn S ta te B a n k , G onvick.

A
ti6üdfor Bankers

M embers of C en tral States C o n feren ce Discuss Postwar
Problems at 34th Annual Meeting in C h icag o
RANK W A R N ER , secretary of th e
Iowa B a n k e r s A ssociation, w as
nam ed p resid en t of th e C entral
States B ankers A ssociation at th e th ir ­
ty-fourth an n u al conference held re ­
cently at th e P alm er H ouse in Chicago.
O ther officers nam ed a t th e m eeting
w ere E u gen e P. Gum, secretary of
th e O klahom a A ssociation, first vice
president; W all G. Coapman, W iscon­
sin, second vice p resident; and David
M. A uch, secretary of th e Ohio B ank­
ers A ssociation, secretary an d tre a s u r­
er. Mr. A uch is th e new com er on th e
official fam ily, w ith th e o th ers being

F

By H enry H . Haynes
Edito r
Northwestern Banker

advanced from th e ir previously held
offices. Mr. W arn er succeeds W illiam
B. H u ghes, N ebraska secretary, to the
office of president.
W ith a few ab sen t from its total
m em bership of forty-four, th e confer­
ence, com prising th e presidents, vice

AT T H E C E N T R A L S T A T E S C O N F E R E N C E — M ary A nn F lan agan, w ho re g ­
is te re d th e d e le g a te s to th e C onference, is s e c re ta ry to H arry C. Hausm an,
C hicago, s e c re ta ry o f th e Illin o is B a n k e rs A sso ciatio n .

Northwestern Banker

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

Mai) 19')5

p residents and secretaries of fourteen
m iddle w estern states, k ep t w ell w ith in
th e ODT ru lin g of fifty-or-less in a t­
tendance. H. R. Kibbee, Jr., presid en t
of th e South D akota A ssociation, and
p resident of the Com m ercial T ru st &
Savings Bank, M itchell, and W illiam
D uncan, Jr., M inneapolis, secretary of
th e M innesota A ssociation, w e r e
am ong those absent.
H eadliner on the p rogram w as W.
R andolph B urgess, presid en t of th e
A m erican B ankers A ssociation, speak­
ing on “The B retto n W oods Proposals.”
W hile A m erican delegates to B retton
W oods w ere in stru cted as to a p re ­
viously arran g ed program , th ey did not
have a free h and in th e m eeting, Mr.
B urgess said, and delegates from o th er
countries could give no prom ise any
of th e proposals m ade w ould be
adopted. C onsequently, according to
th e speaker, no agreem ent has been
reached by any one or any country.
The A m erican public has been given
no inform ation, nor its opinions asked.
Our people, said Mr. Burgess, should
have a chance to express them selves.
F ran k C. R athje, Chicago, vice p resi­
dent of the A m erican B ankers Associa­
tion, and chairm an of th e board and
presid en t of th e Chicago City B ank
and T ru st Company, extended g reet­
ings to th e conference from th e ABA.
Am ong o th er com m ents he declared
th e G. I. Bill inadequate and discrim i­
n ato ry —only a v ery few banks are
O U R 5 0 th YEAR

A T T H E C E N T R A L S T A T E S C O N F E R E N C E — R e a d in g from
le f t to rig h t, 1— Charles C. W attam , F a rg o , s e c re ta ry , N o rth
D a k o ta B a n k e rs A s so c ia tio n ; A. C. Id svoog, G ra fto n , N o rth
D a k o ta , p re sid e n t, N o rth D a k o ta B a n k e rs A sso c ia tio n , and
p re sid e n t, G ra fto n N a tio n a l B a n k ; W illiam B. H ughes, O m aha,
s e c re ta ry , N e b ra s k a B a n k e rs A s so c ia tio n , a n d im m e d ia te past-

pro p erly equipped to ad m in ister the
bill, an d m an y of its points should be
clarified.
W e have m ore b an k s th a n b an k ers
in th is country, according to H ugh H.
McGee, vice p resid en t of th e B ankers
T ru s t Com pany, New York, and ch a ir­
m an of th e C redit Policy Com m ission
of th e ABA, w ho spoke on “A Look
A head.” Our b an k e rs give lip service
only, he said; th e y ad v ertise th e ir abil­
ity to tak e care of all public needs
from th e cradle to th e grave, an d th en
are not able to m ake good. Too m any
b a n k e rs w a n t to be too safe — they
w a n t e v ery th in g g u aran teed —th e re is
such a th in g as carry in g safety to th e
point w h ere it h in d ers progress. C red­
it, said Mr. McGee, should be based
m ore on th e m an ag em en t factor and
less on th e old slide ru le m ethod of
m aking loans—-a prospective borrow er
w ith in te g rity and know -how deserves
every consideration. T erm loans will
be a g re a t lending vehicle d u rin g th e
recon v ersio n period, he said, and con­

cluded his rem ark s w ith th e statem en t
th a t th e fine job accom plished by the
correspondent banks of this co untry is
probably th e sole reason w h y we have
not had b ran ch b an king nationw ide.
C. AY. B ailey, ch airm an of th e ABA
A g ricultural Com m ission, and presi­
d en t of th e F irs t N ational Bank,
Clarksville, Tennessee, said country
b an k s hold in th e hollow of th e ir hand
th e fu tu re of A m erican agriculture.
He urged his listen ers to help to keep
ag riculture financially sound—to com­
b at g o vernm ent inroads into th e lend­
ing field. R ecovery of business by
co u ntry banks, he said, m u st come
from trav elin g in th e opposite direction
from th a t w hich caused th em to lose
th e business to th e governm ent. At
th e m om ent th e re seem s to be a feeling
am ong farm ers and o th er ag ricu ltu ral
in te rests th a t th ey can again tu rn to
th e banks for th e ir needs, and it is up
to th e banks to m eet th is tre n d in the
m ost constructive m an n er possible.
T he ODT ban on conventions and

A T T H E C E N T R A L S T A T E S C O N F E R E N C E — R e a d in g fro m
le f t to rig h t, 1— C. O. Gorder, v ice p re s id e n t of th e S o u th D a ­
k o ta B a n k e rs A s so c ia tio n , a n d vice p re s id e n t a n d m an a g er,
D eadw ood B ra n c h , F i r s t N a tio n a l B a n k of th e B la c k H ills ;
Mrs. L ois J. H alvorsen, H u ro n , S o u th D a k o ta , a c tin g se c re ta ry
o f th e S o u th D a k o ta B a n k e rs A s so c ia tio n ; W. G. A schenbrener,
R a cin e, W isco n sin , p re s id e n t of th e W isconsin B a n k e rs A sso­


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

p re s id e n t of th e C e n tra l S ta te s C o n fe ren c e; V. E. Dolpher,
D a v id C ity , N e b ra s k a , vice p re sid e n t, N e b ra s k a B a n k e rs A sso­
c ia tio n , a n d p re sid e n t, F i r s t N a tio n a l B a n k , D a v id C ity ; an d
E dgar M cBride, B lue H ill, N e b ra s k a , p re s id e n t of th e N e b ra s k a
B a n k e rs A sso c ia tio n a n d p re s id e n t of th e C om m ercial B a n k ,
B lue H ill.

o th er large m eetings has posed some
problem s for State A ssociations, espe­
cially in connection w ith election of
State officers and ABA groups w ith in
the States. Fred B ow m an , secretary of
th e K ansas A ssociation, says his state
has perm ission to hold divisional or re ­
gional m eetings, breaking up the
groups into w h at th e ODT calls T rade
Areas. G. Harold A\Telch, Connecticut
secretary and p resid en t of th e ABA
State A ssociation Section, urged execu­
tive m eetings to elect state ABA offi­
cers, and suggested th a t if no consti­
tutio n al provisions existed to perm it
such elections, th e constitutions of
S tate A ssociations affected be changed.
Charlie W attam , N orth D akota secre­
tary , explained “G roup Insu ran ce for
B anks” as th is recently-adopted project
now operates in his state. It has been
in effect in N orth D akota since last
July, and th e experience is proving
favorable. South D akota ban k s also
have group insurance, and Mr. W attam
(T u rn to page 55, please)

c ia tio n , a n d vice p re sid e n t, A m e ric a n B a n k & T ru s t C om pany,
R a c in e ; W all G. Coapman, M ilw a u k ee , second vice p re sid e n t,
C e n tra l S ta te s C o nference, a n d s e c re ta ry , W isco n sin B a n k e rs
A s so c ia tio n ; C. W. B ailey, C la rk sv ille , T ennessee, c h airm a n ,
A B A A g ric u ltu ra l C om m ission, a n d p re sid e n t, F ir s t N a tio n a l
B a n k , C la rk s v ille ; a n d Fred M. Bowm an, T o p ek a , K a n sa s,
s e c re ta ry , K a n sa s B a n k e rs A sso ciatio n .

20

N e w s a n d V ie w s
O F THE

B A N K IN G

W O RLD

By Clifford DePuy
a . W a l l a c e , S ecretary
of Commerce, expressed his
philosophy of gov ern m en t be­
fore a Congressional C om m ittee re ­
cently by saying, “In du stry has held
enry

H

to a philosoph y of scarcity. Industry
plow ed out one-half of its w ork ers in
1932. F arm ers adopted it on ly m inu te­
ly as a m atter of n ecessity .”

L egislation reducing reserve require­
m ents of F ederal R eserve B anks w on
house ban k in g com m ittee approval re ­
cently.
It low ers reserv es w hich m u st be
held from th e ir p resen t level of 40 p er
cent in gold certificates ag ain st F ed ­
eral reserve notes in circulation and
35 p er cent in gold certificates or law ­
ful m oney ag ain st deposits, to a u n i­
form m inim um of 25 p er cent in gold
certificates ag ain st com bined note and
deposit liabilities.
The legislation also rem oves th e au ­
th o rity of th e b anks to issue F ederal
R eserve B ank notes and m ake p erm a­
n en t th e ir a u th o rity to issue ord in ary
F ederal R eserve notes ag ain st th e de­
posit of govern m en t bonds.

of an y such b ank or tru s t com pany
w ho violates the provision of the Act
shall be guilty of a m isdem eanor, and
upon conviction thereof, shall be fined
not less th a n $5 nor m ore th a n $10
for each offense.
W alter B yron Sm ith died of a h e a rt
a tta c k at his office a t The N o rth ern
T ru st Company, Chicago, last m onth.
He w as a director of th e b ank and
ch airm an of the board of th e Illinois
Tool W orks.
Mr. Sm ith w as the second son of
B yron Laflin Sm ith, w ho founded The

E rnie P yle, colum nist and w ar co rre­
spondent, killed on Ie Jim a, left Mrs.
Pyle th e bulk of his estate and, in addi­
tion, she is to be paid $100 w eekly d u r­
ing h e r life from a tru s t fund, w hich
w as d raw n up D ecem ber 19, 1944.
The N ebraska legislature has passed
the bill by a vote of 16 to 11 to enforce
p ar clearance on checks in N ebraska.
The m easure w as introduced a t th e
req u est of th e A ssociation of Credit
Men and th e te x t of th e m easure is
as follows:
An A ct relatin g to b anks an d b a n k ­
ing; to provide for th e clearing at p ar
all checks d raw n on any b an k or tru s t
com pany organized u n d e r th e law s of
th is State; and to provide penalties.
Be it enacted by th e people of th e
State of N ebraska,
Section 1. All checks d raw n on any
b ank or tr u s t com pany organized u n ­
der th e law s of th is State shall be
cleared a t p a r by th e b an k or tru s t
com pany on w hich th e y are draw n;
Provided, th e foregoing direction shall
not be applicable w h ere checks are
sen t to b an k s or tr u s t com panies as
special collection item s.
Section 2. A ny officer or em ployee

Northwestern Banker

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

May 1945

W A L T E R B Y R O N SM IT H

N o rth ern T ru st Com pany in 1889. He
w as b orn in Chicago on D ecem ber 29,
1878. A fter grad u atin g from Yale U ni­
v ersity in 1899, he en tered th e b ro k er­
age firm of Jo h n H. W renn and Com­
p an y in 1900, in w hich concern he w as
a p a rtn e r from 1905 to 1910. In 1915,
Mr. Sm ith w as elected a d irector of
The N o rth ern T ru st Company, of
w hich his b rother, Solomon A. Sm ith,
is president.
A w ell-know n banker, W alter B yron
Sm ith w as likew ise pro m in en t in th e
in d u strial field th ro u g h his association,
as ch airm an of the board, w ith the

Illinois Tool W orks, a Chicago m an u ­
factu rin g com pany. A m an of great
public spirit, he particip ated actively
in the p h ilanthropic en terp rises of his
city.
H is passing is a g reat loss to the
banking in stitu tio n he served so w ell
for th irty years. His equable disposi­
tion, honesty and fo rth rig h tn ess w ere
byw ords, and endeared him to ev ery ­
one w ith w hom he had dealings. He
w as tru ly a well-loved individual—tol­
erant, kindly, possessed of sound ju d g ­
m en t and broad capacity. T he N o rth ­
ern T ru st Com pany has lost a d istin ­
guished m em ber of its board, his asso­
ciates a loyal, constant friend.
Jay D. R isin g of Omaha, w ho is a
form er vice presid en t of th e Chase N a­
tional Bank, an d now retired, sen t th e
N orthwestern B anker th e fo llo w in g
le tte r soon after H arry S. Trum an
took th e oath as P resid en t of th e
U nited States.
“Our g reat new P resid en t—and he
is going to be a real and g reat P resi­
dent—is not only m y boyhood friend,
b u t is a statesm an in every sense of
the w ord as, in m y sincere belief, th e
fu tu re w ill reveal.
“T here is a story for you in th e oldtim e association of th e young m en w ho
w orked to g eth er in th e old so-called
‘zoo’ of the Old N ational B ank of Com­
m erce in K ansas City in th e p articu lar
y ears from 1902 to 1908. H ere is the
sto ry w hich I have alw ays believed
w ould som etim e be told and—to me
a t least—it is an epic:
“T he follow ing young m en—-every­
one of th em —sta rte d at th e v ery b ot­
tom in th e above bank, and w ere g a th ­
ered to g eth er in th e so-called ‘zoo’
w here th e chief requisite for su rvival
w as the personal ability to use one’s
fists upon th e slig h test provocation—
usually every day:
“H on. H arry S. Trum an, now P resi­
dent of th e U nited States; Charles S.
Spencer, now president, F irs t N ation­
al, Boston; John H. S. H erbert, now
vice presid en t and director, J. C. P en ­
ney Com pany of New York; Claude H.
A lexander, vice president, Anglo-California Bank, San Francisco; W ilber H.
Scruby, now vice president, F irs t Seat­
tle N ational Bank, Seattle; E li P.
W heat, now vice p resid en t and secre­
tary , Commerce T ru st Company, Kan(T u rn to page 26, please)
O UR 5 0 th YEAR

21

' m

u

â

t

The Omaha
National Bank
/
OUR 50th YEAR

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

Member

Federal

Deposit

Insurance

Corporation

N orthwestern Banker

Mai; 19^5

Can an Executor of an Estate
Pay Claims W
NEBRASKA b an k held jud g m en t
ag ain st Jo rd an on a prom issory
note th a t had not been paid. W hile
the ju d g m en t w as in existence Jo rd an
conveyed certain p ro p erty to his wife
for one dollar. The b an k asserted the
conveyance w as fra u d u le n t and sought
to have th e p ro p erty sold to satisfy
its judgm ent. It developed th a t th e
p ro p e rty conveyed w as exem pt by law
from liability for Jo rd a n ’s debts.
Should th e b ank prevail?

A

No. P roperty w hich is exem pt by
law from liab ility for the ow n er’s
debts is not su sceptib le of fraudulent
alienation.
The N ebraska Suprem e
Court, in a recent decision, pointed out
th a t th is rule is w ell estab lish ed by
n um erous cases in that state.

The 17-year-old son of a South Da­
kota b anker, by m isrep resen tin g his
age, obtained a license and w as m a r­
ried. H is m other, in h er ow n nam e,
sued to set aside th e m arriage. Could
she m ain tain th e suit? T here w as no
sta tu te p e rm ittin g h e r to do so.
No. A parent of a m inor m arried
person can n ot sue to an nu l the m in ­
or’s m arriage in South D akota. The
m inor, appearing by h is general
guardian or a guardian ad litem , m ay
do so, but n eith er of h is parents, as
such, is a proper plaintiff in an an ­
n ulm en t action.

B roughton, a b an k director, decided
to erect a hotel. A fter a v ery su b sta n ­
tial p a rt of th e building w as erected
several radical changes w ere m ade in
th e con stru ctio n because he becam e
convinced th a t th e p ro ject w as not
sound as originally planned.
He
sought to deduct th e cost of these
changes as a loss in his federal incom e
tax re tu rn . Could he do so? .
No. The extra cost to a taxpayer of
the con stru ction of a hotel b uilding
due to radical ch an ges in the plans,
w h eth er the ch an ges w ere n ecessitated
because of a m istake or otherw ise, is
part of the cost of the b uildin g and is

Northwestern Banker

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

May 1945

ith o u t Couxi A p p ro v a l?

This and O th er Tim ely Legal
Questions A re Answ ered

By the
LEGAL DEPARTMENT

not deductible as a loss for federal in­
com e tax purposes.

A M innesota tru s t com pany was
tru ste e of a decedent’s estate for ten
years. It w as surch arg ed w ith certain
item s upon w hich it had acted in good
faith and upon advice of counsel.
Those item s w ere paid to th e bene­
ficiary in a lum p sum d uring one year,
w hich resu lted in increased taxes for
him . If th ey had been paid over the
several y ears previously, such tax lia­
b ility w ould not have been so great.
The beneficiary sought to have the
su rch arge increased because of this.
Could he do so?
No. The M innesota Suprem e Court
so h eld in a recent decision in v o lv in g
a con ten tion sim ilar to that outlined in
the q uestion. In doing so, the Court
pointed out that it is elem en tary that
the on ly m easure of dam ages for fa il­
ure to pay m oney is not the con sequ en ­
tial dam ages resu ltin g from the p ecu ­
liar circum stances of th e payee, but
the law ful in terest accrued upon the
am ount due.

W ilson, a form er L ouisiana banker,
w as in m ilitary service and stationed
abroad. H e had left his autom obile
w ith his father, w ho drove it occasion­
ally. He w as not, how ever, concerned
w ith th e m issions upon w hich his
fa th e r used th e car and did not ex er­
cise any control over its operation.
W ilson’s fa th e r w as involved in an
accident w ith th e car. T he d riv er of
th e o th er car asserted it w as being
driv en negligently and sought to im ­
pu te th e negligence to W ilson. Could
he do so?

N o. T h e n e g lig e n c e o f a fa th e r in
th e o p e r a tio n o f h is s o n ’s a u to m o b ile
ean n ot b e im p u te d to th e so n w h e r e
su ch so n is in m ilita r y se r v ic e an d
sta tio n e d ab road a n d is n o t c o n cern ed
w ith h is fa th e r ’s m issio n or e x e r c is in g
a n y c o n tr o l o v e r th e o p era tio n o f th e
a u to m o b ile .

M cCaster, a K entucky banker, w as
su rety on the bond of the sheriff of the
county in w hich both of them resided.
T he bond w as given to g u aran tee
p roper rem ittan ce of taxes by the
sheriff. A default occurred by the
sheriff. Notice th ereo f w as not given
to M cCaster w ith in th e tim e req u ired
by law and he w as released from lia­
bility on th e bond. W as the sheriff,
nevertheless, req u ired to m ake good
the default?
Y es. In K e n tu c k y a sh e r iff is not
d isc h a r g e d fr o m lia b ility fo r fa ilu r e to
d isc h a r g e h is d u tie s, th e p e rfo rm a n ce
o f Avhich is c o v e r e d b y a su r e ty b on d ,
b y r e a so n o f a fa ilu r e to g iv e th e
su r e tie s n o tic e as req u ired by sta tu te
w h ic h r e s u lts in th e su r e tie s b e in g d is ­
ch a rg ed . In o th e r w o r d s, th e sh eriff
Avas lia b le eAren th o u g h th e s u r e tie s on
h is b o n d h a d b e e n r e le a se d from lia ­
b ility .

A tru c k tra n sp o rtin g m oney and
o ther valuables w as negligently caused
to ru n over and kill a six y ear old girl
in Iowa. Suit w as filed against the
ow ner of th e truck. At th e trial, th e
ju ry b ro u g h t in a verdict for $8,000 for
h er w rongful death plus $1,200 for
doctor’s bills, expenses, and loss of
services du rin g m inority. The trial
judge considered the am ounts too
high and a re m ittitu r w as filed re ­
ducing th em to $4,500 and $1,000 re ­
spectively. On appeal th e defendant
contended
these
w ere
excessive.
Should such contention be sustained?
No. In a recent d ecision in v o lv in g
an alogous facts the Iow a Suprem e
Court held not excessiA^e allow an ces
of $4,500 for the w ron gfu l death of a

(T u rn to page 55, please)
O U R 5 0 th YEAR

23

7 7 Years of
Specialized Experience

H IS BA N K has been closely identified w ith the live

T

stock industry in C hicago fo r m ore than three-quarters

o f a century. We k n o w the im portance o f speedy tran sm is­
sion o f proceeds o f live stock sales and for years have had
these credits in the hands o f M idw est bankers the next day.
T his is only one o f o ur m any services used by bankers
th ro u g h o u t the M iddle West.

L IV E

ST O C K

B A N K

cßc(j/i

E S T A B L IS H E D 1 8 6 8

U N IO N S T O C K YARDS
D a v i d H . R e i m e r s , President
Member Federal Deposit Insurance Corporation

O U R 5 0 th YEAR


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

Northwestern Banker

Mai] 1945

24

How W e Make and Save Money
(C ontinued from page 16)

L. R. BASSETT, Cashier
Nevada National Bank
Nevada, Iowa

“The continuous tak in g of an n u al
custo m ers’ financial statem en ts is u su ­
ally a b u gbear to all b ankers. N ev er­
theless, cu sto m ers’ y early statem en ts
are found to be a foundation of b a n k ’s
cred it files.
“A custom recen tly established in
the N evada N ational B ank of N evada,
Iowa, is proving helpful to the officers
and m ost agreeable to th e N ational
B ank E xam iners. The officers place
all new ly ta k e n statem en ts in a special
folder, retain in g th em for th e a tte n ­
tion of the note com m ittee m eeting
once a week. E ach sta te m e n t is a n ­
alyzed m in u tely by th e com m ittee, and
a large ru b b e r stam p is im pressed on
th e face of th e statem en t, show ing th e
date acted upon, am o u n t of cred it es­
tablish ed by th e com m ittee, am o u n t
of loans on open note or by ch attel
m ortgage; also n u m b er of cars of cat­
tle th a t m ay be financed for such cus­
tom er d u rin g th e year.
“T hese statem en ts are th e n placed on

th e desk of each loaning officer who
checks them over and initials. A fter­
w ards these statem en ts are checked
ag ain st th e liability ledger sheets by
placing a ru b b er stam p on th e ledger
sheet en titled “Date of Statem ent,
am ount of credit line established by
open note or ch attel m ortgage.” Should
th e custom er use up th is line of estab­
lished credit and calls for additional
funds, his application is tak en and re ­
subm itted to th e note com m ittee, w ho
th e n eith er increase his line or de­
clines the increase.
“A fter becom ing accustom ed to such
a schedule or plan, it is found to be
useful to th e loaning officers, as well
as assisting th e exam iners in giving
th e b ank th e ir exam inations, and we
feel th a t our custom ers afte r becom ing
acquainted w ith such steps, experience
no ill effects in such a plan. I t is also
needless to say th a t w hen such a plan
is properly carried out, th e loaning
officers feel m ore sure of them selves in
g ra n tin g loans, and th e custom er is
pleased to know of th e am ount of
cred it set up for his use th ro u g h o u t
th e season.”

San Francisco and Around the Bay
(C ontinued from page 17)
to visit all th e places of in te re st we
w ould have liked. T he M ural Room
a t H otel St. F ran cis, nam ed in identifi­
cation of th e A lfred H erter w all decours, has grow n m ore en ch an tin g
w ith th e years. D ining and dancing
at th e M ural is definitely a h a b it w ith
those w ho know San Francisco.
The nam e is th e only E u ro p ean th in g
about th e Cirque a t th e H otel F a ir­
m ont—a good place for a cocktail and
a snack and a dance or two.
The Top of the Mark, w hile n o t th e
pop u lar spot of previous years, still af­
fords a glorious view of th e Bay—th e
m an y boats rid in g a t anchor; A lcatraz
Island, a F ed eral prison. T he island is
abo u t 20 acres in ex ten t an d com pletely
isolated by w ater. I t is su rm o u n ted
by one of th e m ost pow erful lights on
th e Pacific Coast, stan d in g 214 feet
above m ean high w a te r and acts as a
guide for ships en te rin g th e Golden
Gate. T reasure Island, once th e site
of th e San F rancisco W orld F a ir is
now know n to th e sailors as A lcatraz
No. 2.

N orthw estern Banker

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

May 19 b5

H otel Clarem ont, high in th e B erk­
eley Hills, w ith a settin g of 22 acres of
flow ery g randeur, is tru ly a m ost de­
lig h tful spot for a rendezvous. R uss
M organ and his o rch estra supply the
ly rical background.

M arvelous food, m arvelous service
and m arvelous e n te rta in m e n t a t Bal
Tabarin, San F rancisco’s m ost sophis­
ticated n ig h t spot. The Bal, an old
th e a tre converted into a supper club,
opened 14 y ears ago and th e sam e w ait­
ers w ho served th e guests on th e open­
ing n ig h t are still th ere and certain ly
know how to m ake th e ir p atro n s feel
at home.
A nother in trig u in g spot is Oscar’s in
Oakland. H ere, w hile you are w aiting
for y o u r table at C onfucious for th e
best Chinese food anyw here, you sit
com fortably in rocking chairs, placed
in a w ide circle aro u n d a ro arin g open
h e a rth fire (w hich, incidentally, w as
m ost cheering afte r having been out in
some of C alifornia’s u n u su al w eath er),
and sip y o u r tea (?) or b u tterm ilk (?).

A v ery delightful drive on Sunday
afternoon t o o k us to R ichm ond,
th ro u g h th e ship building industries;
across th e Bay on a fe rry to San Ra­
fael; p ast San Q uentin Prison; dow n
th ro u g h M ill V alley, w here the alm ond
and fru it tree blossom s w ere m ost pro­
fuse; over th e spectacular Golden Gate
Bridge, w here we got our first glim pse
of th e ocean; th ro u g h Golden Gate
Park, now a beautiful panoram a of
regal lillies, gladiolas, geranium s, and
num erous o th er flowers w ith w hich w e
w ere not fam iliar; to th e Cliff H ou se
w ith hu n d red s of lazy seals su n n in g
on th e rocks; dow n Grant A ven ue . . .
w ith its golden pagodas, Chinese lan ­
tern s, fascinating bazaars and tw istin g
alley ways; dow n to F ish erm a n ’s
W harf for an excellent seafood dinner,
if the odor from th e fishing boats did
not get you before you en tered th e
colorful atm osphere of any of th e m any
dining places located on th e W harf.
I t w as our good fo rtu n e to have
Paul R obeson, w ith his splendid sup­
po rtin g cast of Jose F errer and his
ch arm ing wife, U ta H agen, p o rtray in g
O thello at th e G eary T heatre. D inner
at Kit Carson’s, fam ous for th e ir man-

sized d rin k s and grilled beefsteak, be­
fore th e th e a tre m ade th e evening m ost
enjoyable.
A trip to V allejo, th ro u g h ' such
th riv in g com m unities as Rodeo and
Crocker, w here th e w o rld ’s larg est su­
g ar refining and gasoline cracking
plants are located, dow n th e beau ­
tifu l Sacram ento R iver and p ast M are
Island, com pleted a m ost delightful
trip to th e W est Coast.
A fter leaving th e su n sh in e of Cali­
fornia in th e m orning, we trav eled th a t
day th ro u g h th e m ajestic R edw oods
in an intense snow storm (14 inches of
snow in about six h o u rs), and believe
it or not, w ith apologies to R ip ley, th e
sight of th e glistening snow on those
g reat m onum ents of n a tu re w as one of
th e m ost m em orable ones of th e en tire
trip. California can be ju stly proud of
h e r Redwoods and w e th in k th e poem
by Joseph B. Strauss m ost ap tly de­
scribes them .
“Here, sow n by the Creator’s hand, in
serried ranks, th e R edw oods stand;
No other clim e is honored so—no other
lands th eir glory know .
To be like these, straight, true and fine,
to m ake our w orld, lik e th eirs, a
shrine;
Sink dow n, Oh traveler, on y o u r k n ees,
God stands before you in th ese
trees.”
O UR 5 0 th YEAR

25

YO U R CU STO M ER ’S I N V E N T O R Y CAN BE MADE B A N K A B L E

7« you* P O S T W A R P L A N N IN G , include
Modern FIEL D W A R EH O U SE I N V E N T O R Y LOANS
s e c u r e d by B O N D E D W A R E H O U S E R E C E I P T S
When your Customer’s Inventory (raw or finished) is collateralized
through the use of a sound and well operated Field Warehousing Com­
pany, this Inventory Collateral becomes a most acceptable security to
both Borrower and Lender.
The St. Louis Terminal Field Warehousing Division’s "sound and
economical method’’ of setting up actual warehousing operations right
on jthe premises of your Customer’s Business Establishment w ill enable
your Bank to make additional or larger Loans, SAFELY.
OUR RECORD STANDS:
N ever so much as one dollar of loss on a Field W arehousing
operation to Lending A gent, B onding Com pany or Ourselves.
W R ITE FOR COM PLETE IL L U ST R A T E D IN F O R M A T IO N .

c/ldd WaxcÁcaunúSmsicn
CIN CIN N A TI
KAN SAS CIT Y
CH ICA G O
M E M P H IS

OUR 50th YEAR

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

SERVING INDUSTRY FOR TWENTY YEARS

G E N E R A L O F F I C E S - S T * LOUI S M O
N orthwestern Banker

May 1945

26

*
,*

HAMMERMiLL
COLUMN

*
★

T w o m o n th s a fte r a so ld ier w a s killed
in N o r m a n d y o n D - D a y h is w id o w cam e
to th e U . S . S e c re t S e r v ic e a n d tim id ly
a sk ed w h y sh e h a d n o t r ec eiv e d a ch eck
from th e G o v er n m e n t. S h e h a d a d is ­
p o ssess n o tic e from h er la n d lo rd in her
p o c k e t.

*

★

★

Investigation showed that a check fo r the
six months’ p a y to which she was entitled
had been prom ptly sent her. B u t she had
never seen it. I t had been stolen from the
mailbox in her home. The thief had forged
her name to the check and cashed it at a
department store.

T h e files o f th e S e c re t S e r v ic e in th e
T r ea su r y D e p a r tm e n t b u lg e w ith su ch
c a se h isto r ies. G o v er n m e n t c h e c k s are
sto le n in m a n y w a y s, b u t m o st o f them
are lifte d from flim sily lo ck ed m a ilb o x es.
O ften th e y rep resen t fo o d a n d sh elte r for
th e p a y e e s. A p r e tty d ir ty a n d tr a g ic
bu sin ess!

★

★

★

A nd it’s likely to get worse. The Govern­
ment sends out checks at the rate of 300,000,000 a year today. They go by mail to
dependents of servicemen, to Social Secu­
rity beneficiaries, to farmers and others.
That’s a golden opportunity for the check
forgers.

★

★

★

B u t a ch eck is ju s t a p ie ce o f paper.
I t ’s no good to a crook u n less h e g e ts
so m e b o d y to g iv e h im c a sh for it. I f
sto rek eep ers an d o th ers w h o ca sh c h e ck s
for stra n g ers w o u ld ta k e e v e n th e s im ­
p le st p r e ca u tio n s, th is cru el r a ck et w ou ld
e v a p o r a te.

The Secret Service has done a magnifi­
cent job of prevention through its "Know
Your Endorser” campaign. So has the
A B A through its "Protective B u lletin ”
and other channels. B ut with the con­
stantly growing flood of Government
checks, they can reach only a few of the
prospective victims.

★

★

★

B a n k s, to o , fo rced to r e tu r n b a d ch eck s
to g ood c u sto m e rs, h a v e also ta k e n a
v ig o ro u s h a n d in th is e d u c a tio n a l ca m ­
p a ig n , c o n sid e r in g it p a r t o f g o o d p u b lic
r e la tio n s to do so .
★

*

*

M any of them have found that Hammermill’s little folder, "7 Cautions on
Cashing Checks,” distributed in cooperaion with the Secret Service, is very helpful.
★

★

★

M o re t h a n a m illio n o f t h e s e fo ld e rs h a v e
b e e n d is trib u te d b y o v e r 4 0 0 0 b a n k s to
t h e ir c u sto m e rs w h o c a s h c h e c k s . If y o u ’d
lik e a s u p p ly , le t us k n o w . T h e r e ’ s no o b li­
g a t io n . N o s a le s m a n w ill
c a ll. ( P le a s e
m e n tio n th is m a g a z in e .) H a m m e rm ill P a p e r
C o m p a n y , 1 5 2 4 E a st L a k e R o a d , E r ie , P a .

N orthwestern Banker

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

May 19j5

NEW S

AND

V IEW S

(C ontinued from page 20)
sas City; A rthur B. E isen h ow er, now
vice president, Commerce T ru st Com­
pany, K ansas City; Fred W. H arpst,
ro w vice president, Commerce T ru st
Com pany, K ansas City; Jam es S. Jackson, now president, C ontinental Bank
and T ru st Company, New York City;
Paul F. C ovington, form er assistan t
cashier, Chase N ational Bank, New
York, now retired; R ichard C. Piper,
form er a ssistan t cashier, Chase N ation­
al B ank of New York, now retired;
Fred AV. Groesbeok, form er m anager,
p ersonnel departm ent, C o m m e r c e
T ru st Company, K ansas City, now re ­
tired; John G. Carriker, now vice p resi­
dent, F irst N ational Bank, Boston; F ar­
ris Campbell, now vice p resid en t of the
N ational City B ank of New York; Ivan
Oleson, form er short-stop, B rooklyn
Dodgers, now retired, and Roy B. Mc­
Pherson, now vice president, F irst N a­
tional Bank, S hreveport, Louisiana.
“F ro m th e foregoing, one lesson th a t
can be tak en is th a t our P resid en t got
his first and possibly best train in g in
th e old ‘Commerce Zoo,’ w here he cer­
tain ly learned th e value of team w ork,
perserv erance, ability to take it and
also to han d it out—if necessary—and
now th a t some 40 y ears have elapsed
from those dynam ic years, th ere m u st
have been som ething un u su al th ro w n
over and around all of us boys in th a t
tim e and place th a t w ere m eant for
p rep aratio n for th e fu tu re events th a t
we all had to su rm o u n t an d overcom e
—possibly and in an u n certain w ay to
us th e n —for our u ltim ate usefulness
to our beloved country. To be sure
none of us ever th ou gh t that one of
us w ould som e day be P resid en t of
the U nited States. ‘Our F la g is still
th ere’ and the country rem ains in good
hands—p ossib ly an oth er A ndrew Jackson at the helm . One th in g sure, from
the early n ew s item s, the P resident
en joys th e real confidence of both
branches of C ongress, both D em ocrats
and R epublicans— even of the Chica­
go Tribune, w hich is som ething. Our
nation needs re-uniting as n ever be­
fore and H arry Trum an w ill do it and
do it in h is quiet, co n servative Avay,
just as he did his great w ork in the
Trum an C om m ittee of the Senate.”

Two new m em bers w ere w elcom ed
to th e La M onte Twenty-five Year
Club a t a d in n er at R obert T reat H o­
tel, N ew ark, New Jersey. \VTilbur D.
Clare and R aym ond Stoddart joined
38 o th er em ployes w ho have been w ith
George La M onte & Son of N utley,
New Jersey, 25 y ears or more. T hey
w e re
presen ted handsom e g o l d

w atches by George Y. La M onte, com­
pany president.
W ithin th e nex t few y ears the club
w ill experience considerable increase
in its m em bership. F orty -th ree other
em ployes are approaching th e quartercen tu ry m ark w ith th e com pany.
H enry J. H annen, w ho has com pleted
45 y e a rs’ service, is club president, and
George Capron, vice president, has
com pleted 43 y e a rs’ service. Com pany
officers m ay hold m em bership, b u t are
not qualified to be club officers. The
oldest m em ber in point of service is
A lbert E. H ow e, com pany treasu rer,
w ho has been w ith th e concern since
1896. Seven m em bers are em ployed
at th e com pany’s Toronto, Canada,
plant.
George La M onte & Son w ill observe
th e ir 75th an n iv ersary n ex t year. The
com pany w as founded in 1871 by
George La M onte, g ra n d fa th e r of
George V. La M onte, now president.
He invented and introduced th e first
practical safety p aper for checks and
o th er docum ents as a protection
against alteratio n and counterfeiting.
Robert E. Lee H ill of Columbia, Mis­
souri, has been nam ed vice ch airm an
of th e board of th e F ed eral H om e Loan
B ank of Des Moines. Mr. Hill, w ho
is secretary of th e M issouri B ankers
A ssociation, w ill fill the unexpired
term of E. A. Purdy of M inneapolis,
w ho died recently.
R obert J. R ichardson is p resid en t of
th e F ederal Hom e Loan B ank of Des
Moines, w hich serves th e building and
loan associations in Iowa, N orth and
South Dakota, M innesota and Mis­
souri.
L yn n G. F uller, executive vice p resi­
dent of th e M arquette N ational B ank
of M inneapolis, and Mrs. F u ller an ­
nounce th e m arriage of th e ir son, Pfc.
Lynn S. F uller, U.S.A.A.F., to M iss
K athryn R osnian, d au g h ter of Mr. and
Mrs. C. H. Stephenson of Des Moines.
Miss R osm an w as grad u ated from
Roosevelt H igh School and atten d ed
D rake U niversity, w here she w as a
m em ber of K appa K appa Gam m a so­
ro rity. P riv ate F u ller attended K em p­
er M ilitary A cadem y and is stationed
at L ow ry Field.
John J. O’Brien, 111, p a rtn e r of Jo h n
J. O’B rien & Company, Chicago, points
out th a t th e value of all securities
listed on th e New Y ork Stock E x ­
change am ounts to $56,500,000,000 and
th a t b ro k e r’s loans are approxim ately
$600,000,000, or about 1 p er cent of the
value of all th e listed stocks.
O U R 5 0 th YEA R

27

• Chinese characters meaning
"Another leading bank."

• Street scene in war-torn Chungking. At right
— Check issued by the Centra! Bank of China.

A no th er lead in g b an k using H am m erm ill S a fety
There is a dramatic story behind the
cashier’s check pictured above. It was
issued in Chungking by the Central Bank
of C h in a and d e liv e re d to the First
National Bank in Erie, Pennsylvania. The
paper— Hammermill Safety— on which it

O UR 5 0 th YEAR


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

¡sprinted was manufactured by Hammermill
in Erie. It returned to the city of its origin,
with speed unknown in pre-war times, to
complete its mission. This is another re­
minder that you will find Hammermill
Safety almost anywhere in the world.

Northwestern Banker

Mai] 19'i5

28

Central National Observes

50th Anniversary

w as the late J. D. W hisenand w ho re ­
m ained w ith the in stitu tio n u n til his
death in 1914. In 1909, Sim on Casady
was m ade presid en t of th e b ank and re ­
tained an active in te re st as p resid en t
and chairm an of the board u n til his
d eath in 1927. G rant M cP herrin came
to th e bank as cashier in 1913, and in
1918 w as elected president, w hich po­
sition he held u n til his re tire m e n t in
1936.
The chairm anship of the board re ­
m ained v acant from th e tim e of Simon

H E C entral N ational B ank and
T ru st C om pany of Des Moines,
Iowa, th is m o n th observed its F if­
tie th A nniversary. F ounded as th e
C entral S tate B ank by a group of able,
far-seeing Des Moines pioneer business
m en on May 2, 1895, w ith a capital of
$50,000 and deposits of $4,330 it has
grow n steadily in size u n til today it
ran k s as one of Iow a’s forem ost b a n k ­
ing in stitu tio n s, w ith p re se n t deposits
in excess of $70',000,000.
The original organizer of the b ank

T

C asady’s death in 1927, u n til Ja n u a ry
1934 w hen W illiam J. Goodwin, p resen t
chairm an of th e board, w as elected. In
Ja n u a ry 1935, E dw in F. Buckley and

W IL L IA M J. G O O D W IN
Chairman of the Board

J. R. Capps, p resident and cashier-vice
president, respectively, w ere added to
th e official staff. A national c h a rte r
w as g ran ted to th e bank on May 15,
1929.
The bank w as moved to its p re se n t

PEAK PRODUCTION
ITH the climax o f the war rapidly approaching, the
maintenance o f peak production remains a factor o f
suprem e im p ortan ce. Sm ooth w o rk in g , sound financing
arrangements are a necessary elem ent in achieving this objec­
tive and it is here that the banks o f the nation are playing
a vital part in the war effort.
T h e Am erican N ational, during the war years, has aided
many com panies, large and small, in the financing o f their
contracts and sub-contracts and m ore recently in the set­
tin g up o f contract term ination loans. Its broad experience
in this regard, covering many industries, is at the disposal
o f correspondent banks in connection w ith their service to
lo c a l customers. Inquiries are invited.

W

A M E R IC A N NATIONAL BANK
AND T R U ST COMPANY
E. F. B U C K L E Y
President

OF CHICAGO
LA S A L L E S T R E E T .

Member Federal Deposit

O U R

B U S I N E S S

Northwestern Ranker

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

Maij 19^5

I S

AT W A S H I N G T O N
JIS E

T

O

Insurance Corporation

H E L P

B U S I N E S S

site in December, 1913. In June, 1937,
a com pletely rem odeled and enlarged
bank building w as form ally opened to
th e public. The C entral N ational B ank
and T ru st Com pany w as am ong the
OUR 50th YEAR

29
<

A PARTIAL LIST OF B T Co.
SERVICES TO BANKS:
COLLECTION OF PAR AND NON-PAR CHECKS.
COLLECTION OF NOTES, DRAFTS, COUPONS,
MATURED BONDS AND OTHER ITEMS.
TRANSFER OF FUNDS, REMITTANCES AND
DOMESTIC MONEY ORDERS.
CREDIT INFORMATION.
COMMERCIAL PAPER PURCHASES.

HAVE YOU A
PENSION TRUST
PROBLEM?

SERVICING LOANS TO BROKERS AMD DEALERS.
PARTICIPATION WITH CORRESPONDENT BANKS
IN LOANS TO LOCAL ENTERPRISES.
DEALERS IN UNITED STATES GOVERNMENT, STATE
AND MUNICIPAL SECURITIES.
INVESTMENT INFORMATION.

Since 1913, B ankers T ru st
C om p an y has h ad its o w n
s e lf-a d m in is te re d

p e n s io n

RECEIPT AND DELIVERY OF SECURITIES.
SAFEKEEPING OF SECURITIES.

p la n fo r its em ployees. O v er

CONSULTATION ON PENSION AND
PROFIT-SHARING PLANS.

th e years, o u r P en sio n T ru st

CO-PAYING OR EXCHANGE AGENT, CO-TRANSFER
AGENT OR REGISTRAR, AND CO-DEPOSITARY.

D iv isio n has b een p riv ileg ed

TRUST AND RESERVE ACCOUNTS.

to act as tru ste e for m any

INTERNATIONAL TRADE AND FOREIGN
BANKING FACILITIES.

p en sio n funds co v erin g a
w ide

ran g e

o f industries.

T h is p ractical ex p erien ce is
at the disposal o f o u r b a n k ­
in g friends.

B a n k e r s Tr u s t
Company
NEW YORK
Member Federal Deposit Insurance Corporation

OUR 50th YEAR

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

Northwestern Banker

May I9'i5

30
first, if not th e first b an k in Iowa, to be
com pletely a ir conditioned and to in ­
stall m odern, fluorescent lighting. The
presen t q u a rte rs have been largely
out-grow n, and p ro p e rty to the n o rth
of the b ank stru c tu re has recen tly been

p u rchased w hich w ill p erm it fu rth e r
en larg em ent w hen conditions perm it.
E v er since its founding, th e C entral
N ational B ank and T ru st Com pany has
been a “strictly-Iow a” bank, owned,
officered and m anaged by Iow ans. It

has enjoyed a steady, norm al grow th
w ith o u t benefit of a m erger or consoli­
dation.
P resen t officers of th e b an k are: W.
J. Goodwin, chairm an, board of direc­
tors; E. F .Buckley, president; F ra n k
R. W arden, A. T. Donhowe, L ehm an
P lum m er, F re d H. Quiner, E m m ett E.
Johns, vice presidents; J. R. Capps, vice
p resid en t and cashier, and *Irw in
A bram , G. W. B artm ess, Jr., J. E. Q uin­
er, *D. R. W ithington, C. M. L arson,
G. R. P ark er, W. G. Kane, a ssistan t
cashiers.
T ru st d ep artm en t includes Noel T.
Robinson, vice presid en t and tru s t
officer; I. L. W right, tru s t officer, and G.
L. N issly and A lbert C. R oberts, as­
sistan t tru s t officers.
*On leave of absence, serv in g in
U. S. arm ed forces.

T O T H E A M E R IC A N
P EO P LE
(See Cover Photo)

90 Years of Banking Experience

M e m b e r F e d e r a l D e p o s it
Insuran ce C orpor ati on

In sp orts or in bu siness, the sm o o th perform ance
th a t seem s sim p le a ctu ally c o m es o n ly from lo n g
exp erien ce and co n sta n t practice.
T his is as true in the field o f corresp on d en t
b an k in g as it is anyw here else. S o in c h o o sin g a
corresp on d en t, w h y n o t select o n e eq u ip p ed
th rou gh exp erien ce an d practice to m eet you r
n eeds w ith skill? W h y n o t c h o o se M ississip p i
V alley T ru st C om p an y, w ith a b ack grou n d o f
90 years o f perform ance?

M I S S I S S I P P I V A L L E Y T RUST C O M P A N Y

S carborough ¿ C

• ST. LO UI S , MO

The pictu re and m essage on th e
cover of th is May issue of the N o r t h ­
w e s t e r n B a n k e r is the official govern­
m ent docum ent released to publicize
th e 7th W ar Loan, th e drive for w hich
begins th is m onth.
The m essage to th e A m erican Peo­
ple, u rging them to buy W ar Bonds,
comes from G enerals M arshall, MacA rth u r, E isenhow er, and Arnold, and
from A dm irals Leahy, King, and Nimitz. It reads as follows:
“Your sons, husbands and brothers
w ho are standing to day upon the battlefron ts are fighting for m ore than
victo ry in war. T h ey are fighting for
a new w orld of freedom and peace.
“ We, upon w hom has been placed
the resp o n sib ility of leading the
A m erican forces, a p peal to you w ith
all possible earnestness to invest in
W ar B onds to the fu llest ex ten t of
you r capacity.
“G ive us not on ly the n eeded im ­
p lem en ts of war, but th e assurance
and backing of a u n ited p eo p le so
necessary to hasten the victo ry and
speed the return of your fighting
m en.”

ompany

¿ f tlA u h a n c is ' (A uhmÙ d g v rß m i k i
First National Bank Building, Chicago

N o rth w estern B anker

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

May 19^5

Horace A. Smith, Iowa Representative
Des Moines, Iowa

OUR 5 0 th YEA R

3

I» I IK E « T O IK S
EDWIN M. ALLEN
Chairman, Mathieson
Alkali Works, Inc.

MANUFACTURERS
TRUST

COMPANY

EDWIN J. BEINECKE
Chairman, The Sperry &
Hutchinson Co.
EDGAR S. BLOOM
President, Atlantic, G ulf and
West Indies Steamship Lines

Condensed Statement o f Condition as at close o f business
March 31, 1945

LOU R. CRANDALL
President, George A.
Fuller Company
CHARLES A. DANA
President, Spicer
Manufacturing Corp.
HORACE C. FLANIGAN
Vice-Presiden t
JOHN M. FRANKLIN
New York City
CHARLES FROEB
Chairman, Lincoln
Savings Bank
PAOLINO GERLI
President,
E. Gerli & Co., Inc.
HARVEY D. GIBSON
President
JOHN L. JOHNSTON
President,
Lambert Company
OSWALD L. JOHNSTON
Simpson Thacher &
Bartlett

IK E S O IT I I C E S

Cash and Due from Banks . . . .
U. S. Government Securities . . .
U. S. Government Insured F. H. A.
M o rtg a g e s ......................................
State and Municipal Bonds . . . .
Stock of Federal Reserve Bank . .
Other S ecurities..................................
Loans, Bills Purchased and Bankers’
A c c e p ta n c e s ..................................
M o rtg a g e s ..........................................
Banking H o u se s..................................
Other Real Estate Equities . . . .
Customers’ Liability for Acceptances
Accrued Interest and Other Resources

JOHN T. MADDEN
President, Emigrant
Industrial Savings Bank
JOHN P. MAGUIRE
President, John P .
Maguire & Co., Inc.
C. R. PALMER
President, Cluett,
Peabody & Co., Inc.
GEORGE J. PATTERSON
President, Scranton &
Lehigh Coal Co.
HAKOLD C. RICHARD
Chairman, Genera: l
Bronze Corporation
HAROLD V. SMITH
President, Home
Insurance Co.

4,901,542.54
26,818,959.18
2,220,300.00
20,264,312.68
340,326,891.59
13,161,788.56
11,681,530.67
516,963.23
4,159,083.61
5,928,850.63
•$1,957,824,482.02

CHARLES L. JONES
The Charles L. Jones Company
SAMUEL McROBERTS
New York City

? 378,712,246.59
1,149,132,012.74

1 . 1 A IK I I. I T I E S

Preferred Stock . . . $ 7,712,300.00
Common Stock . . . 32,998,440.00
S u r p l u s ..................... 33,000,000.00
Undivided Profits . . 20,384,160.33

$94,094,900.33

Reserves for Contingencies, Taxes,
Unearned Discount, etc......................
12,731,266.15
Dividend on Common Stock
(Payable April 2, 1 9 4 5 ).....................
824,959.50
Dividend on Preferred Stock
(Payable April 15, 1 9 4 5 ) .................
192,807.50
Outstanding A cceptances.....................
4,522,578.17
Liability as Endorser on Acceptances
and Foreign B i l l s ..............................
240,323.58
D e p o sits ................................................... 1,845,217,646.79
$1,957,824,482.02

ERNEST STAUFFEN
Chairman, Trust Committee
GUY W. VAUGHAN
President, Curtiss- Wrigli t
Corporation
HENRY C. VON ELM
Vice-Chairman o f the Board

United States Government securities carried at $219,679,307.36 are pledged to
secure U. S. Government War Loan Deposits o f $188,142,748.31 and other public
fu n d s and trust deposits, and fo r other purposes as required or permitted by law.

Principal Office: 55 Broad Street, New York City
4SU H A N K I N G

OFFIC ES

IN

1« IKF A T E IK N E W

YO IKK

European R epresentative Office: 1, Cornhill, London, E. C. 3
ALBERT N. WILLIAMS
President, Western Union
Telegraph Company

Member Federal Reserve System
Member New York Clearing House Association
Member Federal Deposit Insurance Corporation
Preferred shares, all o f which are held by institutions and other investors, have a par value o f $20 and are
convertible into and have a preference over the Common to the extent o f $50 per share and accrued dividends.


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

32

Consults Bankers
T rue D. Morse, p resident of Doane
A gricultural Service, Incorporated, of
St. Louis, w as a recent Des Moines
visitor, com ing to the Iowa capital city
to consult w ith th e director of this
m iddlew estern area, Dean Trick, and

with
facilities J a c ts ,contaC
.

;t h c o m p le te , m o d e r n

.

C° n S ,n

°"-

,

e of Wisconsin

agriculture ...p\uscori‘esponAenl

—

dUS7

” 85% ofaUthebankstbrough-

c o ^ ^ T '^

Vour s e r v i c e - ^

out this State.
.
, t0 serve in many «ays t
ready to
(

*■

b u s i-

U?Ual U m ’tS
BUNKS

m e r e r o u tin e

b . nkkks

KHO

aW ‘
beyon(1

efficiency.

o.vts.o,

i/icc-Preside " 1

G eokce T. < ' m1'" FI L

y jce.presideni

R.CHM» )■ LkW,-ESS ’ , sst K ice-Prendr " 1
D o » « -» A. H » * - “

T R U E D. M O R SE
V is its w ith prom inent bankers

to visit w ith p ro m inent b an k ers and
farm ers in this territo ry .
Doane A g ricultural Service, In co r­
porated, w hich offers m anagem ent, ap­
praisal, research and consultation fa­
cilities w ith reg ard to th e business of
farm ing, is also publisher of th e Doane
A gricultural Digest, w hich is w idely
read am ong b an k ers and farm ers of
this area.

- ' 4” '

Form C re d it G ro u p

FIRST WISCONSIN NATIONAL BANK
OF MILWAUKEE

N o rth w estern Banker

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

•

M ay 1945

Wisconsin’s Bank for Banks

B usinessm en of St. Joseph, M issouri,
w ere assured recently of adequate
credit in the postw ar and reco n v er­
sion periods, w ith th e announcem ent
of th e form ation of a $7,250,000 ban k
credit group, set by all th e banks of
St. Joseph.
A nnouncem ent of th e credit group
w as m ade by F. L. Ford, presid en t of
th e St. Joseph Clearing H ouse Asso­
ciation. St. Jo sep h ’s ban k credit group
is one of 28 such groups located in
strategic points th ro u g h o u t the nation.
P urpose of th e credit group is to en­
courage th e extension of credit to St.
Joseph firms, individuals or corpora­
tions in th e sw iftly-approaching peace
era.

Q uarter C en tu ry M embers
Percy H. Johnston, chairm an of the
Chem ical B ank & T ru st Com pany an ­
nounces th e addition of tw o new m em ­
bers to th e Q u arter C entury Club of
the bank. T hey are F ra n k K. H ouston,
president, and N. B axter Jackson, first
vice president, both of w hom joined
th e bank on A pril 1, 1920.
OUR 50th YEAR

Good Management W ill Maintain
A High Level of Taxable Income
"It Is O nly the Net A fte r Tax That Counts, and the Present High
Taxes W ill Not Last Fo rever"
H E final liftin g of th e veil of the
half-kept secret of th e S eventh W ar
L oan “b a sk e t” took th e m a rk e t con­
siderably by su rp rise in spite of th e dis­
coun tin g of probable term s th a t had
been going on for w eeks. T he 2s of
Septem ber 1952-50, w hich re p re se n t th e
n e a re st com parable te rm to th e new
I V 2 S , gained 10/32 by A pril 5, or from
a 1.49 basis to a 1.44 basis, b u t even
th is w as exceeded by th e 11/32 gain of
th e 2s of D ecem ber 1954/52 and w as
equalled by th e net advance, of th e
2 V2S of M arch 1958/56 in th e sam e
period th ro u g h A pril 5. W ith th e 2s of
Septem ber 1952/50 selling aro u n d a
1.42 p er cent basis to th e call date, a
“w hen issu ed ” prem ium of about 8/32
is v irtu a lly indicated for th e new I V 2 S .
The im m ediate effect of th e dis­
closure of th e Ju n e 15, 1972/67 dates
for th e “ta p ” 2%s w as to cause con­
fusion and for som e tim e a fte r th e
opening of th e m a rk e t on A pril 3 th e re
w ere no q u otations for th e 2%s of Sep­
tem ber 1972/67. T h en a fte r som e h esi­
tatio n and easing, a buying m ove got
u n d e r w ay, a p p a re n tly on th e realiza­
tion th at, a fte r all, th e “long” 2%s are
now th e only u n re stric te d issue offer­
ing m ore th a n a 1.90% yield. N ev er­
theless, th e gain of th e long 2%s be­
tw een A pril 2 and A pril 5 w as only
6/32, or about in line w ith th e p erfo r­
m ance of th e th re e 1951/49 issues
w hich are now in th e “run-off” stage.
T he relativ e re s tra in t of th e long
2%s doubtless reflects precau tio n
ag ain st th e possibility of liquidation of
this issue by non-banking in stitu tio n s
w hich m ay succeed in g ettin g a good
ro u n d allo tm en t of th e new 2%s and
w hich m ay th e n execute a delayed ro ll­
over coup as p a rt of a “portfolio ad­
ju stm e n t.” L ittle early sh iftin g along
these lines is probable aside from w h a t
can be defended as “norm al portfolio
a d ju stm e n t,” since th is w ould not be
“crick et” a fte r th e req u ests for co­
operation th a t have been made. Be­
sides, an y sh ift before th e Ju n e 1 date
of th e new bonds w ould involve loss
of in terest.

T

Effect on Pacific G. & E.'s
A lthough th e new in te re st p a tte rn
is forcing in v estm en t m ore and m ore
O U R 5 0 th YEAR


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

By Raymond Trigger
Investment Analyst
New York C it y

This is a discussion of fa c ­
tors affecting your invest­
ment portfolio. If you have
any questions, or if you
find yourself in disagree­
ment with comments here­
in, your letters, addressed
to the N O R T H W E S T E R N
B A N K E R , w ill be w e l­
come and will be answered
here if the subject m atter is
of general interest. Under
no circum stances will the
editor of this column dis­
cuss specific securities.

into th e longer term s for adequate in ­
come, apprehension over th e effect
of th e new tap issues, and p articu larly
th e 2%s, on th e long te rm m arket
seem s to have been behind th e decision
to dissolve th e syndicate supporting
th e Pacific Gas & E lectric 3s of 1979.
It w as m ore th an m ere coincidence
th a t th e price restrictio n s w ere re ­
m oved at the opening of business A pril
3, or im m ediately following th e publi­
cation of th e final details on th e Sev­
en th W ar Loan basket. The reduced
price of th e Pacific Gas & E lectric 3s,
about % of a point u n d er th e offering
price of 107%, helped clean up d istri­
bution.

Where Do We Go From Here?
Now th a t th e changes w rought by
the new T reasu ry offering have been
digested, the question is “w here do we

go from h ere?” T here is not m uch left
on th e up-side for eith er th e long term s
or for th e issues w ith call dates un d er
five years. Yield on p resen t holdings
n evertheless is a ttractiv e and espe­
cially on those carried at book values
u n d er th e m arket. The disposition is
th u s m ostly for re ten tio n despite al­
lu rin g o pportunities to cash in profits
in m any instances. T his policy is sup­
ported in th e case of th e taxable 2s,
especially by th e ap p aren t price p ro ­
tection afforded by th e new p a tte rn
w hich places only a little h igher price
on the 2s of 1952/50 th a n in th e tax ­
able 2s of 1950/48. T his suggests
liquidity and a high c u rre n t re tu rn on
these issues for around 3% years.
F or banks on the b rin k of the excess
profits tax bracket, one reason for
cashing profits on low priced holdings
m ight be to increase th e capital funds
base w hile reducing E. P. T. income.
This, how ever, suggests the sam e ob­
jection as sh ifting to fully or partially
tax-free issues to th e e x ten t necessary
to reduce taxable income. It m eans a
“m arriag e” w ith reduced incom e for a
period th at, we hope, m ay extend far
beyond the era of high taxes. The
n a tu ra l im pulse is to set up a defense
against taxes b u t in m any cases, and
provided too m uch risk is not assum ed
in extending th e m atu rity , it could be
the essence of good m anagem ent to
m aintain a high level of taxable in ­
come and pay the h igher resu ltin g tax.
It is only th e n et after tax th a t counts
and th e p resen t high taxes w ill not last
forever.

The Trend to Corporates
The fight for incom e has become
m ore intense since th e first of th e year
and the rise of the “long 2% s” to a 2.35
basis is probably th e cause of the
noticeable sw ing of banks back to cor­
porates. The $54 m illion Chicago &
N orth W estern 3s w ere a “sell o u t” at
p ar and quickly w en t to a prem ium of
102. Not surprising, since this issue
would show 3.6 to 7.0 tim es coverage
of in te re st by adjusted pre-w ar ea rn ­
ings, including even 1932 and 1938.
V irginia R ailw ay sold, on A pril 27,
$60 m illion 3s of 1995 w hich w ere reNorthwestern Banker

May 19^5

34
offered a t 106/71 to yield 2.75 p er cent.
T he issue w as about half sold at th is
price and rem oval of price restrictio n s
w as follow ed by a drop of 105% (2.80
p er cent), followed in tu r n by a quick
rebound to 105%—106. S upport at th e
2.80 p er cent level m ay be significant
for long te rm high grade rail credits.

The "Cushion" Bond
One device w ith high yield possi­
bilities for a period is th e “cush io n ”
bond if available on a “no y ield” basis
or b etter, so th a t th e w o rst th a t could
befall w ould be no loss or a fair sh o rt

term rate if early call ensues. C u rren t
re tu rn is high, on the o ther hand, if
call should be delayed for several
m onths or more. Two such op p o rtu ­
nities m ay be found in C onsum ers
Pow er 3%s of 1965 and Indianapolis
U nion Ry. 3%s of 1986:
C onsum ers Pow er 3%, 1965, call
prices, p resen t 103% to 5/1/47, next,
103; no yield price, 105%; approxim ate
m arket, 105%; c u rre n t yield 3.31.
Indianapolis U nion Ry., 3%, 1986,
call prices, present, 108 to 3/1/47; next,
107; no yield price 109%; approxim ate
m arket, 111%; c u rre n t yield 3.04.

S p ecia lizin g in U n listed S ecu rities

BANK — INSURANCE
PUBLIC UTILITY — INDUSTRIAL —

REAL ESTATE

LUMBER & TIMBER
BONDS, PREFERRED AND COMMON STOCKS
BO U G H T — SOLD — QUOTED

REMER, MITCHELL & REITZEL, INC.
208 S o . L a S a lle S t ., C h ic a g o 4
R A N d o lp h 3736
BELL SYSTEM TELETYPE
CG-989

W ESTERN U N IO N
TELEPRINTER
“W UX”

T erm inal R. R. of St. Louis 4s of 1953,
callable at 110, is an o th er issue a ttra c ­
tive for “cushion” purposes.

The F. R. Ratio Reduction
The article on “The R eserve Position
of F ederal R eserve B anks” in th e
M arch F ederal R eserve B ulletin m akes
some significant observations in th e
course of an a p p aren t “apologia” for
the pending reduction in th e F ederal
R eserve Ratio. It cites “am ple prec­
edent for changing reserve re q u ire ­
m en ts” in th e case, not only of E n g ­
land, b u t also G erm any and France.
The la tte r w ere th ro w n in to be com­
forting w ith o u t a doubt, ju st in case
nobody rem em bers the d isastro u s in ­
flation both suffered following W orld
W ar I.
To th e ex ten t th a t the reduction in
th e F ederal R eserve Ratio is th e resu lt
of the financial stra in of the w ar econ­
omy, no apology is needed. As th e
article points out, how ever, increase
in cen tral bank deposits has been a
m inor factor and th e p rim ary reason
for th e decline in the ratio has been the
huge rise in curren cy circulation. This
m ay be a ttrib u tab le in some p a rt to
w ar conditions, legitim ate or o th e r­
wise, b u t m uch is due to th e fiscal
policy of low, and now lower, in terest
rates.
A sidelight on th e hoarding aspect
is found in the F e b ru a ry 1945 B ulletin
of th e A tlanta F ed eral R eserve Bank,
w hich notes th e decline of $4 m illion in
bills of $5, $10 and $20' denom inations
and a rise in the total for denom ina­
tions of $50 and up from 28 per cent to
32 p er cent of th e circulation figure of
th e d istrict betw een Ja n u a ry 1943 and
Ja n u a ry 1944. The la tte r kind of
m oney is n ot tak en to th e b u tch er or
the grocery store.

B O N D S

TH O M SO N &
M cK i n n o n

P u blic U tility
In d u stria l

STOCKS • BONDS
COMMODITIES

R a ilro a d

216-218 Empire Bldg.
des

M u n icipal

M OINES

Phone 4-2127
11 W a ll S t r e e t , N e w Y o r k
231 S. L a S a lle S t., C h ic a g o
B r a n c h e s in 34 C it ie s

A .C . A L L Y N and c

o

m

p

a

n

W rite fo r our w e e k ly S to ck S u rv e y

y

D IR E C T P R IV A T E W IR E

Incorporated

Laverne M. Barlow

100 W e s t M onroe S tr e e t. C h ica g o
N ew Y ork
R e p r e s e n t a t iv e s :

Northwestern Ranker

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

W a te r lo o

May 19b5

M ilw a u k e e
M in n e a p o lis

M anager

M em b ers N e w Y o rk S to c k E x c h a n g e
a n d o t h e r p r in c ip a l e x c h a n g e s

B o sto n
M oline

OUR 50th YEAR

35

St. Paul Terminal
W arehouse Report
F o u nded in 1916, th e St. P aul T e r­
m inal W arehouse Com pany, w ith its
hom e office in St. Paul, as th e larg est
op erato r in th e N o rth C entral states
has m ade available to b an k s and in ­
d u stries an unexcelled service for
loans ag ain st in v en to ries in th a t area.
T he Com pany o perates sixteen b ran ch
offices located in strateg ic centers. The
Iow a office, from w hich service to Ne­
brask a and South D akota as w ell as
th e H aw keye State is rendered, is lo­
cated in Des M oines w ith Tom C. Can­
non as m anager.
In its 29th a n n u al sta te m e n t a t th e
close of 1944 business, St. P au l T erm i­
nal W arehouse C om pany show s total
c u rre n t assets of $417,662, and total
c u rre n t liabilities of $102,371. Capi­
talized at $540,500, earn ed su rp lu s at
th e close of 1944 w as $159,190. Total
assets of th e Com pany are listed at
$890,289.

First M ajor Appointm ent
A St. L ouisan—Jo h n W. Snyder, a
vice p resid en t of th e F irs t N ational
B ank—received P re sid e n t T ru m a n ’s
first m ajo r ap p o in tm en t w h en he w as
nom inated as F ed eral L oan A dm inis­
tra to r, a job w hich m ay lead to a
cabinet post as S ecretary of th e T reas­
ury.
Snyder, a w arm perso n al frien d of
T ru m a n ’s since th e tw o served to ­
g eth er as a rtille ry officers in th e last
w ar, w ill succeed F re d M. V inson, w ho

w as m ade D irector of W ar Mobiliza­
tion by th e late P resid en t Roosevelt
a fte r Jam es F. B yrnes quit th e post.
It is predicted th a t Snyder, form er
executive vice p resid en t of the giant
R econstruction Finance Corporation,
m ig h t be groom ed for H en ry Morgenth a u ’s post as S ecretary of the T reas­
ury.

G . I. Loan C h a rt
A sim plified procedure ch art for
m aking G. I. loans is being m ailed by
th e City N ational B ank & T ru st Com­
pany, K ansas City, to all th e ir corre­
spondent banks. T his chart, designed

T he Chase N ational B ank is dis­
trib u tin g a four-page copyrighted
folder for d eterm ining “price from
yield” on bonds payable a t par, also
for ascertaining “yield from price”
on bonds callable at prem ium s and
bonds carry in g odd coupon rates.

Understanding
|

Institutional

|

Requirements
We offer to institutions the results of
years of experience in helping to meet

|

the special requirements of this type
|

of investor.

j

Because of our nationwide facilities
and knowledge of comparable security

IF

values and markets, our Institutional

Y O U IN V E S T

Department is utilized by many or-

YOUR M ONEY
|

ganizations in all parts of the country.
We cordially invite you to take ad-

|

vantage of these services.

|

M errill L y n c h , P ierce , F enner & B eane
Underwriters and Distributors of Investment Securities
Brokers in Securities and Commodities
70 P IN E STREET

George E. Virden, Secretary

New Bond Folder

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

No Market Losses

— in our 3% Fed­
erally insured cer­
tificates, w h i cli
have safety, li­
quidity and free­
dom from market
losses.

and w ritte n by Cyril J. Jedlicka, assist­
a n t cashier, is in a file folder design,
and contains, besides the step by step
directions for m aking th e loans,
sam ples of each of the form s necessary
to m ake each of th e th ree types of
G. I. loans.

|

I

N E W Y O R K 5, N . Y.

Offices in 87 Cities

1

The Russell County Building & Loan Association
R U S S E L L , KANSAS

OUR 50th YEAR

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

Northwestern Banker

May 19f5

36
George Holzm an, a ssistan t cashier in
th e Chase bond d ep artm ent, prep ared
th e tables and statistical m aterial for
th e folder.

farm m ortgage lending and w ill consist
of m orning, afternoon and evening
sessions for 5% days.

Again Named V. P.
H eaviest Production

CHECK YOUR
N E W C A P IT A L
N EED S!
To many industries, con­
version for peace means the
fast liquidation of one kind
of business and the imme­
diate organization of an­
other. Yet some industrial­
ists have not yet faced the
possibility that they may
need new capital in the
very near future.
If you have not looked
over your position with a
view to finding out whether
you will need new money
after the war, you should
do so now.
Never have times been
b etter for [corporations
to issue bonds, preferred
and common stocks . . .
never has money been so
cheap and prospects for
wide distribution so good.
Whatever the job ahead
. . . reconversion, reorgan­
ization, new products or
new markets.. .our Under­
w riting D epartm ent is
ready to serve you. We in­
vite you to inquire . . . in
confidence and without
obligation . . . of a Partner
at the nearest Hornblower
& Weeks office.

The N ational Cash R egister Com­
p any has ru n g up its heaviest produc­
tion of w ar m aterial since A m erica
en tered th e w ar, com pany officials re ­
vealed, pointing out th a t m ore th a n 26,367,560 m an-hours of production had
gone into th e m aking of carb u reto rs
for th e B-29, m otor sections and fuses
for sp in n er rockets, com puting gunsights and m any o ther item s. The
rev elation w as m ade to em ployes in an ­
nouncing th a t N ational Cash R egister
had been aw arded a fifth sta r to its
A rm y-N avy “E ” pennant, first received
in Ja n u a ry 1942.

Farm Seminar
In an effort to revive th e in te re st of
p riv ate lenders in farm m ortgage lend­
ing, th e M ortgage B ankers A ssociation
of A m erica, in cooperation w ith P u r­
due U niversity, w ill sponsor a M ort­
gage B ankers F a rm Sem inar at L a­
fayette, Indiana, Ju n e 25 to 30, L. E.
M ahan, A ssociation president, a n ­
nounced. The course w ill be the first
ever offered devoted exclusively to

Offices:

Of in terest to banks and o th er lend­
ers w ho extend credit on th e security
field w arehouse receipts is th e 1944
year end rep o rt of condition ju s t is­
sued by L aw rence W arehouse Com­
pany, nationw ide operators of field
w arehouses. In releasing the report,
Louis B enoist, president, said “The
resu lts of th e y e a r’s operations are
v ery g ratify in g in all respects, and
the Com pany finds itself a t th e end of
th e y ear in th e best financial condition

FEDERALLY INSURED CERTIFICATES
There is NEVER a fee of a n y kind and
NEVER a brokerage to b e paid b y an
Investor! You w ill obtain:
(a) Financial Statem ents;
(b) OPERATING STATEMENTS;
(c) ANALYSES OF LOAN PORT­
FOLIOS;
(d) HISTORY AND DIVIDEND
RECORDS;
(e) E ssential Service;
(f) A CONTINUING SERVICE.
W e offer approxim ately 400 A ssociation s.
Some are paying 3V2% , while others a re on
a 3 % basis.

40 Wall Street
New York 5, N . Y.

Adapted to Your Requirements

Law rence W arehouse Report

H ave ALL the facts, without cost, about
your Federally Insured S a v in g s & Loan
A ssociation s w hich issu e

HORNBLOWER
& WEEKS

Since 1 8 8 8 — Financial Service

Jesse W. Tapp, a nationally recog­
nized ex p ert in a g ricu ltu ral economy,
has been reappointed vice presid en t of
th e B ank of A m erica, according to an ­
nouncem ent by L. M. G iannini, p resi­
dent of th e bank.
Tapp, w ho re tu rn s to B ank of A m er­
ica afte r a leave of absence in w hich
he served as associate food adm inis­
tra to r in W ashington and la te r as
presid en t of A xton-Fisher Tobacco
Company, w ill cooperate w ith Califor­
nia ag ricu ltu re in th e re ad ju stm en t
problem s of th e future.

y o u W ill E n jo y :

(T)
(2)
(3)
(4)

Unquestioned Safety of Principal;
Cash Position;
Complete Freedom from Market Losses;
Income yield to 31/2%.

May we send you an O F F ER IN G of a group of S E L E C T E D A sso cia tio n s?

New York; Boston ; Chicago;
Cleveland ; Philadelphia; D etroit;
Portland, M e.; Providence;
Baltimore; Bangor.

A LLISO N W A U G H

Financial Developm ent Company
(NOT INCORPORATED)

105 South L a S a lle S tre e t

Northwestern Banker

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

May 19^5

C h icag o 3. Illinois

OUR 50th YEAR

37
in its m ore th a n th irty y e a rs’ history.
W orking capital is m ore th a n am ple,
w ith c u rre n t assets exceeding one
m illion dollars. G ross rev en u e for th e
y e a r of over six m illion dollars re p re ­
sen ts th e g re a te st volum e we have
ever hand led .”
As a t th e y ear end, th e C om pany’s
balance sh eet show s c u rre n t assets of
$1,052,609 ag ain st c u rre n t and total
liabilities of $407,461, leaving n e t w o rk ­
ing capital of $645,148 a fte r m aking

CONDENSED

STATEMENT

FIRST N A T I O N A L

BANK

IN ST. LOUIS
Ai the Close oj Business, M arch 20, 1945
L O U IS B E N O IS T
“ Greatest

volume

in

1944”

provision of $190,721 for accrued taxes.
T he sta te m e n t show s cash of $296,116
w ith accounts receivable of $714,735,
over 90 p er cent of w hich are said to
be secured by w arehouse liens on
m erchandise. T he C om pany’s capital
stock is listed as $593,895 w ith su rp lu s
rep o rted as $241,111. G ross rev en u e
of $6,295,890 is reported, on w hich th e
C om pany earn ed $91,663 a fte r p ro v i­
sion for taxes.

New C a p ita l fo r Airlines
L ending o p p o rtu n ities for th e n a ­
tio n ’s banks, in th e com m ercial a ir­
lines field, are hig h lig h ted in a study
en titled “A irline F in an ce,” conducted
by B an k ers T ru s t Com pany, th e Mu­
tu a l Life In su ran ce Com pany of New
York, th e Chase N ational B ank and
The N ew Y ork T ru s t Company. The
stu d y estim ates th a t th e new financing
req u ired by th e co u n try ’s com m ercial
airlin es w ill approxim ate $500,000,000
in th e n e x t five years.
The p re se n t re p o rt is th e first in a
con tin u in g stu dy of airlin e financing
m ethods. T he purpose of th e stu d y is
to m ake available to th e aviation in ­
d u stry , and to financial in stitu tio n s,
data concerning th e fu tu re financing
needs of th e airlin es and m ethods of
m eeting capital requirem en ts.
OUR 50th YEAR

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

RESOURCES
C ash a n d D u e from B a n k s
U. S. G o v e rn m en t Securities
L oans an d D iscounts
O th e r B onds an d S tocks
Stock in F e d e ral R eserve B a n k
B an k in g H ouse, Im p ro v em en ts, F u rn itu re
an d F ix tu re s
O th e r R eal E s ta te O w ned
C u sto m ers’ L ia b ility a /c L e tte rs o f C re d it,
A cceptances, e tc.
A ccrued In te re s t R eceivable
O v e rd rafts
O th e r R esources

$106,591,008.85
243,941,858.98
83,983,475.06
5,576,650.83
501,000.00
388,951.85
1,067,005.00
1,056,366.20
939,351.64
3,045.27
3,287.10
$444,052,000.78

LI ABI LI TI ES
C a p ita l S to ck
$ 10,200,000.00
S urplus
6,500,000.00
U n d iv id ed P ro fits
7,177,186.50
R eserve for C ontingencies
500,000.00
R eserve for T ax e s, In te re s t, etc.
1,339,066.49
U nearned D isco u n t
94,015.41
L ia b ility a /c L e tte rs o f C re d it, A cceptances, etc.
1,079,107.96
O th e r L iabilities
166,409.14
In d iv id u a l D ep o sits
$223,248,506.48
Savings D eposits
44,487,708.25
B a n k D ep o sits
107,107,991.29
U . S. G o v e rn m en t D ep o sits
38,263,167.49
C ity o f S t. L ouis a n d O th er
P u b lic F u n d s
3,888,841.77
T o ta l D eposits
416,996,215.28
$444,052,000.78

Broadway

*

Locust * Olive

M em ber F ederal D epo sit Insurance Corporation

Northwestern Banker

Map 1945

38

B E Y O N D
THE

L A W

We are not suggesting that you should live beyond the
law. We are not suggesting that you operate your
business beyond the law. We are suggesting, however,
that you sometimes need protection beyond the law and
we are in position to give it to you and your clients.
Now is the time that every business needs full protec­
tion against every hazard of nature and man. Let us
offer your clientele full insurance protection and pro­
tect your investment and their confidence in you.
Investigate our line of full insurance coverage for
dwelling and mercantile insurance. We also have a
complete line of Automobile coverage.

W E ST E R N M UTUAL
FIRE INSURANCE CO.
9 th & G ra n d

Northwestern Banker

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

Des Moines, Io w a

May 19^5

OUR 50th YEAR

How to Reduce

Traffic

Accidents

Insurance Interests Urged to G iv e Fullest C ooperation
to This Postwar Project
By S. K. Hargis
H E in te re st of th e insurance m an
b. C reating th e type of arte ria l tra f­ w idely used types of u rb an m ass tra n s ­
in local—and n atio n al—public w el­ fic lanes th ro u g h cities w hich will re ­ p o rt vehicles, w hich concern th e factor
fare alw ays has been logical, as duce risk by lettin g th ro u g h traffic of safety. A w rite r in The Am erican
City calls atten tio n to th e fact th a t a
well as profitable. It is to th e in te re st m ore easily by-pass local traffic.
public m ass tra n sp o rt vehicle occupies
of th e en tire in d u stry th a t concerted
c. W orking o u t im proved traffic sig­
efforts to th ro w g re a te r p rotection nal m ethods and codes—including pe­ 300 square feet of stre e t space, c a rry ­
ing 80 passengers, or four square feet
arou n d lives and w ell-being of th e
d e strian and d riv er rig h ts and ru les—•
m asses of people should receive active w hich w ill not only speed and facilitate of stre e t space per passenger. One
support. In fact, th e p rogressive a tti­ m ovem ent b u t also m ake it safer for autom obile, h o w e v e r , occupies 84
square feet p er passenger, b u t averages
tude of in su ran ce com panies, agents all involved.
only 1.3 passengers. T herefore, 61
and o th er personnel, especially in the
L et us consider th e all im p o rtan t autos use up 5,120 square feet of street
casu alty field in cooperating and fu r­
space.
th e rin g public p rotection m ovem ents, m a tte r of th e safest and all around
m ost acceptable type of m ass tra n sp o rt
W hen it comes to everyday casual­
has b ro u g h t w o rth w h ile re tu rn s d irect­
vehicle—th e trackless trolley coach. In
ties—disabling or fatal accidents—tra f­
ly or in d irectly in increased business.
p erh aps a score or m ore of cities and
fic engineers are in agreem ent th a t cer­
In this connection, th e re lately has
tow ns this new type of m ass tra n sp o rt tain v ery definite factors in th e situ a­
been a g re a t deal of in te re st show n by
vehicle has been tried out in recent tion are expected to w ork ag ain st or
m unicipal au th o rities, m ass tra n sp o rt
y ears w ith im pressive resu lts w hich
for them . F o r instance, th e findings as
com pany officials, and civic groups in
prom ise m uch for postw ar u rb an tra f­ generally rep o rted are:
th e developm ent of innovations and re ­
fic reform . Inasm uch as a vehicle
form s w hich w ill help reduce th e ra te
1. The trackless trolley coach is to
w hich m atches and exceeds in all the
of accidents in u rb a n and hig h w ay tra f­
points req u ired of a m odern vehicle is be m ore roomy.
fic a fte r th e w ar w hen, in a com para­
2. More easily heated.
a safer one, th e in surance fra te rn ity
tively sh o rt tim e our stre e ts w ill be
3. B etter lighted m ore easily.
w ill be in terested in this new vehicle.
clogged w ith m ore autos th a n ever be­
4. B etter ventilated.
A nd th ey w ill perh ap s be in terested
fore in h istory, and o u r u rb a n m ass
5. Few er, less severe jolts and jars
tra n s p o rt situ atio n m ay be expected to in some strik in g facts revealed in tests
be not only m ore com plex b u t m ore for p ostw ar reform in th e th ree m ost in motion.
dangerous to public safety and w ell­
being.
W ith o u t question th e in su ran ce m an
w ill w atch rem edies proposed w ith in ­
terest, n o t only from civic sp irit m in d ­
edness, b u t also from a p u rely business
standpoint.
The p a rtic u la r in te re sts of each
grouping of o u r citizens in th is subject
v ary considerably. The local m erch an t
w an ts speedier, m ore com fortable m ass
tra n s p o rt for shoppers in and out of
the dow ntow n section. T he school
teach er w an ts th e safest and m ost reli­
able form of tra n s p o rt for stu d en ts and
pupils. The p a re n ts w an t safety and
speed, w hile th e re are num ero u s o th er
groups who, above all, w ish to see
som e so rt of u rb a n tra n sp o rt reform
w hich w ill reduce to a m inim um th e
nu m b er and seriousness of fatal and
disabling accidents. Am ong th is group
th e in su ran ce fra te rn ity is prom inent.
T he w hole m a tte r resolves itself in ­
to ce rta in broad generalities.
a.
Type of m ass tra n s p o rt u rb a n ve­
hicle selected (th a t is, tro lley car, m o­
P o s tw a r s tr e e ts w ill be clogged w ith m ore a u to s t h a n e v e r b e fo re in h isto ry .
to r bus o r track less tro lley coach).
T he tra c k le s s tro lle y coach can h elp to re lie v e m uch o f th e traffic c ongestion.

T

O UR 5 0 ih YEA R


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

Northwestern Banker

May 19'i5

40

Many th o u sa n d s o f o v e r t i m e
workers are eager for checking
account services that elim inate the
waste of time, m oney and energy
involved in paying bills in person.
T hey’re w illin g to pay for such
co n v en ien ces. T h at m eans new
cu stom ers and extra p r o fits for
banks that provide the service.
You can share generously in this
business if you offer prospective
customers a l l the advantages they
want. The Todd Company w ill
help any customer bank* install a
profitable, bank-tested plan w ith
proved public appeal. Todd N oM in im u m -B a la n ce S erv ices are
flexible—tailor-made to fit a bank’s
local conditions and needs.
Send for booklet w ith check-list
to analyze your own situation.
* We regret that for the tim e being, due
to wartim e demands, our new installa­
tions must he confined to p re se n t users
of other Todd hank supplies.

4

N.B.—S- S

THE TODD COMPANY, INC.,
ROCHESTER 3, N. Y.

6. Safe—because it loads and u n ­
loads a t th e curb.
7. Can by-pass slow er vehicles m ore
safely.
8. E asier, sim pler to drive.
9. Odorless.
10. Makes less operating noise.
Yet th e vehicle itself isn ’t by any
m eans th e w hole problem . The in su r­
ance fra te rn ity w ill find it ad v antage­
ous to cooperate and become active in
any m ovem ent to m ake streets and
highw ays safer—as a business propo­
sition.
W. Y. Van Duzer, director of ve­
hicles and traffic, W ashington, D. C.,
and an ex p ert on th e subject sees,
am ong o th er things, the follow ing im ­
p rovem ents in postw ar traffic rules and
reg u lation as a m eans of reducing fatal
and disabling accidents: F irst, m ore
effectual ped estrian barricades against
traffic; second, m ore and b e tte r placed
neon one-way arro w signs of th e new ­
ly developed type w hich stand out
m ore clearly; third, street m ark ers for
traffic w hich w ill be m uch m ore indel­
ibly im pressed upon th e m ind, and
fourth, m ore scientific application of
electronics to traffic signaling and b et­
te r synchronization of sam e in any
given u rb an area.
If th e insurance agent w ill climb on
th e bandw agon of such local reform s,
he w ill not only be doing som ething to
raise th e quality of local risk s in th e
casu alty field, b u t also benefit from ef­
fort in behalf of a local popular civic
endeavor. I t has been a p p aren t in re ­
cent y ears th a t th e m ajo rity of agents
have not realized th e opportunities
w hich exist for business building in a
p ro p er and aggressive activ ity in be­
half of local reform s and im prove­

m ents w hich m ay n a tu ra lly associate
them selves w ith th e functions and
services of in su ran ce itself.

Honor Two Directors
M embers of the field force of N o rth ­
w estern N ational Life of M inneapolis
recently rounded out a m onth and a
half long trib u te to th e com pany’s two
senior directors, M essrs. C. T. Jaffray
and E. W. Decker, w hich resu lted in
record-breaking new ord in ary produc­
tion.
T heir efforts in M arch resu lted in the
largest volum e of o rd in ary new busi­
ness for any M arch in th e com pany’s
history. W ritten business for the F eb­
ru a ry 15-March 30 period covered by
the special observance ra n 33 p er cent
ahead of th e sam e period a year ago.
As a result, o rd in ary new business for
th e en tire year so far exceeds the first
q u a rte r of 1944 by approxim ately 25
per cent.
The honor paid to M essrs, Jaffray
and D ecker w as in recognition of th eir
com pletion of 40 years of service on
N w N L’s directo rate on A pril 1. Mr.
Jaffray is chairm an of th e board of
th e F irs t B ank Stock C orporation and
Mr. D ecker is head of Decker, B arrow s
& Company, M inneapolis in v estm en t
firm.

To C o o p e rate W ith Bankers
To th e end th a t loans and insurance
on autom obiles p resen tly ow ned and
bought in th e fu tu re m ay be retain ed
locally, the E m ployers M utual Cas­
u alty Company, Des Moines, has in ­
stru cted its agents th ro u g h o u t th is te r­
rito ry to w ork w ith th e ir local b an k er
in financing th e purchase of cars.
E m ployers M utual has sent out a

mmmmmmgiM mmmmmmmmmmmmmmwmmmmmmmmmmmymmmmmmm

Please send me your booklet on No-M inimumBalance Accounts, with suggestions for ana­
lyzing our own situation. W ithout cost or
obligation, of course.

Out-of-Town Banks

N am e______________________________________
T itle_______
Bank Name.

O u t-o f-to w n banks and bankers w ill find here

Address____
City_

c o m p le te b a n k in g f a c ilit ie s fo r p r o m p t a n d
e c o n o m ica l h a n d lin g o f accou n ts in C h icago. W e
w o u ld appreciate th e op p ortu n ity o f serv in g you.

C O M PANY, INC.
ROCHESTER
S A LE S O FF IC E S IN

N E W YORK
P R IN C IP A L CITIES

DI S TRI BUTORS T H R O U G H O U T

THE WORLD

I

WMMM

C

it y

N

a t io n a l

AND

TRUST

2 0 8

S O U T H

COMPANY

H

of Chicago

L A S A L L E

{Member Federal Deposit Insurance Corporation)
N o rth w e ste rn

B anker


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

M ay

1945

ank

S T R E E T
.

..

_

.

OUR 50th YEAR

41
m ailing piece to its agents to “help you
pro tect y o u r p o stw ar prem iu m s am ong
yo u r p re se n t policyholders, because
auto dealers are p lan n in g to sell in s u r­
ance at the tim e th e y sell th e car, a fte r
th e w a r.”
The folder suggests th a t agents sta rt
now to educate th e ir custom ers to fi­
nance th e ir new car th ro u g h th e ir
local bank, and to tra n sfe r th e ir p re s­
e n t in su ran ce to th e new car, w hen
bought, since th e old policy au to m ati­
cally covers th e new car for 30 days.

Second Issue of Booklet
On Field W arehousing
F ield w areh o u sin g is becom ing m ore
and m ore po p u lar w ith both b an k s and
b o rro w ers as a form of financing and
it prom ises g re a te r acceptance as a
m ean s of providing m ore w orking
capital for p o stw ar plans. In th is con­
nection th e St. Louis T erm inal W are­
house Com pany, St. Louis, M issouri,
has recen tly re p rin te d a 22-page book­
let on the im portance of field w a re ­
housing, in w hich th e y po in t out th e
ad v an tag es th is type of service has to
offer a le rt b an k ers and prospective
borrow ers.
As a safe, flexible m ethod of com ­
m odity financing, field w arehousing
th ro u g h th e ir collateralized in v en to ry
loans, provides th e basis for new prod­
ucts, new m a rk e ts and bro ad er dis­
trib u tio n . I t has gained considerable
favor w ith th e sm all b usinessm an as
w ell as w ith larg er business w ith sub­
sta n tia l in v en to ries—some m eet sea­
sonal
heavy
cash
req u irem en ts
th ro u g h th is type of loan. An in v en ­
to ry of raw m aterials, sem ifinished or
finished p roducts m ay be used as col­
lateral.
B anks have found th a t carefully se­
lected field w arehouse loans give them
secu rity eq u iv alen t to th e p rotection
of th e ir own vaults. T hey increase
th e ir loan portfolio and earn in g s and
form a su b stan tial backlog for com ­
m ercial accounts.
The St. Louis T erm inal W arehouse
C om pany’s booklet or illu stra te d data
w ill be gladly m ailed free of charge to
in te re ste d b ankers.

Few
Hail Insurance
Agencies Open
A

Des Moines, Iowa
B A N K E R
A G E N T S

You m ay be able to secure a
desirable agency connection
w ith the largest exclusive hail
insurance com pany operating
in Iowa and Missouri.

W A N T E D
A strong m utual com pany in its 53rd
y e a r offers liberal agency contracts
covering—
•

A U TO I N S U R A N C E

•

TORNADO INS UR AN CE

•

TOWN DWELLING INSURANCE

•

HAIL INSURANCE
on G r o w i n g C r o p s

This strong, w ell managed
com pany supplies hail insurance at low cost. Makes settlement prom ptly. Investigate.
S Q U A R E

Surplus to Policyholders
$1,621,561.22
52 y e ars of proven protection.

Insurance

a r

F

in

a

n

C o m p a n y

(Mutual!
DES MOINES, IOWA

Write for our liberal proposition to
bank representatives.

C

D E A L

c in

g

W ill loca lly purchased autom obiles be loca lly financed
w hen new cars b ecom e availab le?
Both you and A llied Mutual are interested in this. Let's
get together.
Write

ALLIED MUTUAL
C A S U A L T Y

C O M P A N Y

Harold S. Evans, President
Hubbefl Building

Des Moines, Iow a

S carborough ¿a Company
First N ational Bank Building, C hicago

OUR 50th YEAR

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

Horace A. Smith, Iow a R epresentative
Des M oines, Iow a

Northwestern Banker

May 19^5

42

Assistant Treasurer
At a recen t m eeting of the board of
directors of the B ankers T ru s t Com­
pany, New York, George S.. Schroth
w as elected an a ssista n t tre a su re r. Mr.
Schroth has been connected w ith the
note te lle rs’ d e p a rtm e n t at B ankers
T ru st Com pany since 1931.

A dd ress Two Meetings
Two m eetings w ere addressed by
officers of th e City N ational B ank and
T ru st Com pany of Chicago last m onth.
K. K. DuVall, vice president, spoke
before a b a n k e rs’ m eeting in Louisville

S t

L o u is

sponsored by the R obert M orris Asso­
ciates on th e subject—“B anks and
P o stw ar In stallm en t F inancing,” and
J. L. Chapm an, tru s t officer, addressed
a group of tru s t officers and insurance
executives at a m eeting in D etroit,
sponsored by th e D etroit Life In s u r­
ance and T ru st Council on the subject
“H um an R elations in the T ru st F ield.”

A ssistant Vice President
The F irst N ational B ank in St. Louis
has announced th e election of Clyde
B. Sm ith as an a ssistan t vice president,
in th e Soil P roducts departm ent. He

form erly w as presid en t and general
m anager of St. M ary’s Mill Company,
St. M ary’s, M issouri, and p rio r to th a t
w as secretary -treasu rer of Acme Mills,
H opkinsville, K entucky.

H eads Reserve Bankers
R obert M. H anes, presid en t of the
W achovia B ank & T ru st Company,
W inston-Salem , N o rth Carolina, w as
elected presid en t of th e A ssociation of
R eserve City B ankers. He succeeds
R obert V. Flem ing, presid en t of the
Riggs N ational Bank, W ashington,
D. C.
W illiam F. K riebel, vice p resid en t
and tre a su re r, The P en n sylvania Com­
pany for In su rin g Lives and G ranting
A nnuities, P hiladelphia, w as elected
vice p resid en t of th e A ssociation. He
succeeds W alter K asten, president,
F irst W isconsin N ational Bank, Mil­
w aukee.
F o u r directors w ere elected for
th ree year term s: T aylor S. A ber­
nathy, vice president, F irs t N ational
Bank, K ansas City, M issouri; Jo h n W.
Nichols, vice president, C ontinental
Illinois N ational B ank & T ru st Com­
pany, Chicago; D onald F. Valley, vice
president, The N ational B ank of De­
troit; and Menefee W irgm an, p resi­
dent, Citizens F idelity B ank & T ru st
Company, Louisville.

AND THE PACKING INDUSTRY

For years, one o f the leading
industries o f St. Louis has been
that o f wholesale meat packing.
W ith an annual output o f more
than $200,000,000, the St. Louis
area ranks t h i r d in the nation as
a center for such products.
The packing industry, like many
others, has recognized the stra­
tegic, central location o f St. Louis.
This has not only brought the
industry close to its natural
sources o f supply, but has pro­
vided unexcelled transportation

facilities that make possible the
swift, direct economical distribu­
tion so essential to an industry
whose products must move in a
continuous supply to the food
markets o f America.
Mercantile-Commerce is proud o f
its long association with the pack­
ing industry.. . one o f the many
examples o f the way in which
this bank has been able to con­
tribute to the growth o f business
in the great industrial territory
o f St. Louis and the Southwest.

M ERC
HANTS
MUTUAL

BONDING
COMPANY
In c o rp o ra ted 1933

Home Office
SO UTHERN SURETY BU ILDING

Des M oines, Iowa

•
T his is Iow a’s oldest surety com pany.
A progressive com pany w ith e x p eri­
enced, conservative m anagem ent.

COM M ERCE

M E R C A N T IL E
Baxtlc a n d

T r u s t C om pany
MISSOURI

ST. LOUIS 1

^GHTR'S*'
MEMBER

FEDERAL

DEPOSIT

I NS URA NCE

W e are p rou d o f o u r h u n d red and
fifty b an k a g en ts in Iow a.
T o be the exclusive re p re se n tativ e of
th is com pany is an asset to y o u r bank.

W rite to
CORPORATION

E. H. W A R N E R
S ecr eta ry and M a n a g er

Northwestern Banker

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

Mai] 1945

O U R 5 0 th YEA R

43

VJLear

after year hundreds of Ameri­

can banks use Central Hanover as their
New York correspondent because they
like the wide experience and care it
brings to the protection of their interests
and the handling of their business.

For example, 278 banking institutions
have been correspondents continuously
for more than half a century.

Central Hanover gives individualized
attention to individual needs.

CENTRAL HANOVER
BANK AND TRUS T COMPANY
NEW YORK
M em b er F ed eral D eposit In s u ra n c e C o rp o ra tio n

O U R 5 0 th YEAR


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

Northwestern Banker

May 19^5

44

One of our correspondents out in the dairy region
handles a number of large drafts covering shipments
of butter to a San Francisco concern. T h ey’re payable, of
course, through one of the banks out there . . . and
it was taking eight days and sometimes longer to get
funds from the coast.
We suggested that our correspondent let us take care of
those drafts . . . to see if we couldn’t speed things up a bit
And by airmailing the drafts to the San Francisco bank
(where w e are correspondents) and asking them to wire
us when the drafts had been paid and credited, we were able
to cut the time lag more than half!
Your problem may not be just like this one. Your drafts may
be on N ew York or Miami or Denver . . . or your problem may not be
long distance drafts at all.
B ut w h a t your problem is, doesn’t really matter. What d o e s matter
is simply that, as a correspondent of the First National Bank,
you ’ll find men here eager and willing to help you work out logical,
efficient solutions to your banking problems.

FIRST NATIONAL BAN K o f M inneapolis
L

ym an

E.

W

a k e f ie l d

,

President

D e p a r tm e n t o! B a n k s a n d B a n k e rs :
M . O . G r a n g a a r d , Vice P resident
C . B . B r o m b a c h , Vice P resident

W. A. V o l k m a n n , Vice P resident
J . J . M a l o n e y , A ssista n t Cashier
K. S B a n f i e l d , V ice P resident
K . T . M a r t i n , A ssista n t Cashier
•J. M D o w n e s , M anager of B a n k A dvisory D ivision

Member Federal Deposit Insurance Corporation
Northwestern Banker

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

May 1945

OUR 5 0 th YEAR

45
com pletely rem odeled to provide space
for a fireproof storage v a u lt for b ank
records, a d irecto rs’ room and a sto r­
age room for supplies.
A new system of lighting w ill be
installed and an air conditioning u n it
will be added as soon as it is available.
U pstairs, w orkm en have already re ­
modeled the old d irecto rs’ room.

M IN N E S O T A
NEW S

Joins M arquette National
W ILLIAM DUNCAN, Jr.
Secretary
Minneapolis

W ILBU R F. McLEAN
President
Duluth

Note 40th A nniversary
L ast m onth th e F irs t N ational B ank
celebrated its 40th a n n iv e rsa ry as an
in stitu tio n in Chisholm , M innesota, a
period w hich m ark ed th e g ro w th of
Chisholm from a sm all logging com ­
m u n ity w ith ju s t th e beginning of
m ining in d u stry to its p re se n t m odern
civic im provem ents.
D eposits th a t first day totaled $6,035
w hile today th ey are $3,622,737.93.
The young m an w ho served as first
cashier of th e bank, along w ith all the
o th er d uties of such an in stitu tio n , w as
George L. T rain, w ho has now served
m any y ears as p resid en t of th e F irst
N ational B ank of Chisholm.
P re se n t officers include: Mr. T rain;
J. J. H ayes, vice p resident; J. Osbolt,
cashier; E d W heelecor, Jo h n Hudy, O.
L. B aldrica, assistan t cashiers; D.
M aturi, H. K. Goldenberg, G ust A n­
derson, M ichael Baich, Mr. H ayes, Mr.
Osbolt, Mr. W heelecor and Mr. T rain,
directors.

Takes C ash ier Post
The new cashier at th e Citizens State
B ank of St. Jam es, M innesota, is P earl
P. H enning, form er a ssistan t cashier at
th e F irs t N ational B ank of Sleepy Eye,
w ho w as honorably discharged from
th e N avy recentty.
Mr. H en n in g w as affiliated w ith th e
Sleepy E ye b ank from 1928 u n til he en­
tere d service a y ear ago. He w ill be a
m em ber of th e board of d irectors of
th e St. Jam es bank.
W ith th e addition of th e new cashier,
th e staff at th e Citizens State Bank
now consists of A. W. A nderson, p resi­
dent; W alter Bugge, vice president;
Mrs. Floyd Penne, M arilyn K izer and
Mrs. R euben Kohn, clerks.

O ffice rs M ove Up
L ast m onth saw a change in th e posi­
tion of b an k em ployes of th e F a rm e rs
N ational Bank, M innesota Lake, M in­
nesota. “W oody” Beske, w ho w as em ­
ployed in th e b ank as head cashier, has
resigned his position and is now going
into business w ith his father, G. A.
Beske, of th e G. A. Beske Company.
OUR 5 0 th YEAR


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

E. L. K auffm ann has been elevated
to th e position of cashier, and th e other
em ployes have been m oved up a step.

Charles C. Rieger, for the p ast q u a r­
te r of a cen tu ry identified w ith th e
inv estm en t business in th e Tw in Cities,
w here he has been m anager of the
bond d ep artm en t of Jam ieson & Com­
pany, has been elected a vice president
of the M arquette N ational Bank, of
M inneapolis. Mr, R ieger can probably

O pen Branch O ffice
C.
O. Jam ieson, p a rtn e r in Jam ieson
& Com pany of M inneapolis, announced
last m onth th e opening of a new
b ran ch office, com plete w ith tick er and
tran slu x , in E au Claire, W isconsin.
The new b ran ch is u n d er the m anager­
ship of E. W. Diven, w ho has re p re ­
sented The M ilwaukee Com pany in
th a t te rrito ry for several years.

C e le b ra te G o ld en W edding
Mr. and Mrs. J. H. C. Schuldt w ere
honored on th e ir golden w edding an n i­
v e rsary at a d in n er a t th e H otel Owato n n a in O w atonna, M innesota.
D irectors of th e F irs t State B ank of
M eriden, of w hich J. H. C. Schuldt has
been p resident since it w as first organ­
ized in 1915, w ere am ong guests, all of
whom, w ith th e exception of W. P.
Jones, w ere original signers of the
articles of incorporation of th e bank.

C. C. R IE G E R
V ice President of M arquette N ational

M erge Minnesota Banks
The F irst S tate B ank of Bingham
Lake, M innesota, m oved its ch arter to
W indom recently. All legal m atters
connected w ith th e rem oval of the
b ank had been com pleted. At W indom
th e bank m erged w ith th e W indom
N ational Bank. The new b ank w ill be
know n as the W indom State Bank, and
J. A. R edding and Gladden Redding,
ow ners of the B ingham Lake Bank,
w ill be p resid en t and cashier respec­
tively. H. A. W icklund and A lfred
P recht, form erly of New Ulm, w ill be
vice p resid en t and assistan t cashier,
respectively.

Bank Expands
W ork w as to s ta rt on im provem ents
to the Columbia H eights S tate B ank
Building, Columbia H eights, M inne­
sota, m ade necessary by th e increased
volum e of business recently.
The basem ent of th e building w ill be

call every b an k er in the N inth D istrict
area by his first nam e, since he has
traveled th a t te rrito ry for m any years,
and has attended alm ost every ban k ers
convention held in th a t district. A
b an k er in N orth Dakota, he cam e to
M inneapolis in 1920 to en ter the securi­
ties business.
C. J. Rieger, b etter know n as
“Chuck,” has been nam ed m anager of
Jam ieson & Com pany bond departm ent,
to succeed his father.

Joins Rochester Bank
L atón A. Sm ith of R ochester, M inne­
sota, w ith th e K nox Reeves advertising
firm of M inneapolis for th e p ast two
years, has been added to th e staff of
the U nion N ational B ank of Rochester.
A R ochester high school graduate,
Mr. Sm ith w as graduated from the U ni­
v ersity of M innesota and the H arv ard
U niversity g raduate school of business
Northwestern Ranker

Mai/ 19^5

46

• M I N N
adm in istratio n before being em ployed
in th e m ark et research d ep artm en t of
th e K nox R eeves firm.

Bank Changes Hands
F o rm er State S enator N. A. Pederson
and his b ro th ers, P. A. and A lbert
P ederson have re tire d from ban k in g
afte r being associated w ith th e Peoples
S tate of Milan, M innesota, for alm ost
30 years. T h eir in te re s t in th e in s titu ­
tion has been purch ased by I. M.
Thom pson, w ho has been w ith the

E S O T A

N E W S *

b ank since Novem ber, 1921. He was
a ssistan t cashier u n til 1938 w hen he
w as elected cashier.
Mr. T hom pson has sold a sh are of
his in te re st in the bank to S. R. A nder­
son.
Officers and em ployes of Peoples
State B ank of M ilan now are: I. M.
Thom pson, presid en t and cashier; S. R.
A nderson, vice president; Inez S.
Thom pson, vice president; Hazel Olson,
assistan t cashier, and A lvina T hom p­
son, bookkeeper and teller.

Back at His Desk
E dw in Erickson, presid en t of the
A drian State Bank, A drian, M innesota,
last m onth retu rn ed from a th ree
m o n th s’ stay in Miami, Florida, and
is again at his desk. He is now ro u n d ­
ing out 53 y e a rs’ continuous bank
service, w hich began w ith E. H. Rich
at th e F irst N ational B ank of F o rt
Dodge, Iowa.

W H A T D O Y O U T H IN K ?
(C ontinued from page 7)

For Quicker Refund...

7 B *

2

T h is record form sh o u ld be

0 carried apart from th e w a l­

sa le sp e r so n sh o u ld d etach th e rec­
ord form at th e back o f th e w a l­
let, h a n d it to th e c u sto m er, an d
ask h im to fill in th e serial n u m ­
bers o f th e c h e q u e s im m e d ia te ly .

"M y w a lle t ’s b een sto le n !

^

0 W i t h $ 3 0 0 in t r a v e le r s

ch eq u es! I ’d better c a ll th e n e a r ­
est A m e ric a n E xpress O ffice, as
th e b an k te lle r sa id to d o . . . ”

let. I t’s im p o r ta n t th a t th e cu s­
to m er en ter th e d ate o n w h ic h
e a c h c h e q u e is s p e n t , o n t h is
fo r m .T h e n if a n y th in g h a p p e n s ...

U

c c w

"It’s a g o o d th in g th a t y o u
h ad a sep arate record o f th e
ch eq u es. It h e lp s us in s p e e d in g
u p th e r efu n d to y o u .”

t E x p /i&

TRAVELERS CHEQUES
Northwestern Banker

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

May 19'f5

C h a r le s T. D a n fo r th , president, The
F irst D akota N ational B ank & T ru st
Company, Y ankton, South Dakota:
“We have only processed tw o loans
u n d er the GI Bill of Rights. Our im ­
pression to date, is th a t these loans
are so w ound up in red tape th ey are
v ery difficult to make.

“One loan we m ade for a v eteran to
s ta rt farm ing, w as followed on th e
county ab stract of ch attel m ortgages
w ith a loan from a finance com pany
w hich carried th ree to five tim es th e
in terest we w ere p erm itted to charge.”

W it h m ore p eo p le tra v elin g than ever before, you h ave a
g o ld e n o p p ortu n ity to create g o o d w ill for your bank w ith
A m erican Express Travelers C heques. For inform ation or
a d vertisin g m aterial, w rite W . H . Stetser, V ice-P resident,
A m erican Express Co., 65 B roadw ay, N e w York 6, N . Y .

/¡ n t&

come easier to handle, m uch like the
experience we have all had w ith FH A
loans. GI loans, in conjunction w ith
FH A T itle II loans for financing hom e
building, should be v ery a ttractiv e to
both lender and borrow er. B usiness
and farm in g loans are m ore intricate.
All GI loans w ill take m ore tim e, m ore
patience and m ore sym pathetic u n d e r­
standing on the p a rt of b ankers th a n
ord in ary loans.

M

J . R . M c C lo u d , president, F irs t N a­
tional Bank, York, N ebraska: “I th in k
the GI Bill of R ights should be care­
fully and com pletely explained to all
those discharged from service so th ey
know th e ir rights. T hey should be en ­
couraged to seek the advice of b an k ers
and o th er successful business m en be­
fore going into debt to finance some
enterprise, because th e g overnm ent is
not h anding th em $2,000 on a silver
platter, b u t every cent m u st be repaid.
B ankers should go out of th e ir w ay to
be helpful and w hen it is necessary to
tu rn dow n a loan, th e reason for such
refusal should be plainly stated, or we
as b an k ers w ill be the victim s of a lot
of bad publicity. T he procedure should
be m ade as sim ple as possible and ap ­
plications acted upon w ith o u t delay.
W e m ight add th a t th e in te re st rate is
too low, and w e feel th a t the guaran tee
should have been w orked out sim ilar
to th a t of th e FH A .”

OUR 50th YEAR

47

Tw in C ity N ews

A LPH W. M ANUEL, w ho has been
associated w ith th e M arquette N a­
tio n al B ank m ore th a n 30 years,
has re tire d from active direction as
presid en t and has been elected ch a ir­
m an of th e board.
He has been succeeded as p resid en t
by R u ssell L. Stotesbery, already
know n in T w in Cities b an k in g circles

R

By E. W . Kieckhefer
Special C orre spon de nt
Northwest ern Banker

tending th e U niversity of M innesota at
th e tim e he en tered th e service, is now
w ith th e E ig h th arm ored division of
th e N inth arm y, also in Germ any.
L y nn F uller, form er Iow a banker, is
executive vice p resid en t of th e M ar­
q u ette N ational.
O. H. Odin, for m any y ears executive
vice presid en t of th e M arquette N a­
tio n al B ank of M inneapolis, died re ­
cently at P asadena, California, w here
he had gone w ith Mrs. Odin in an effort
to regain his health.

T he F irs t N ational B ank of M inne­
apolis has announced election of Dayton R ogers and K eith K. K eller as di­

R. L. S T O T E S B E R Y
P resident, M arquette N ation al Bank
M inneapolis

as p resid en t of th e U n iv ersity N ational
B ank and a d irecto r of th e ChicagoLake S tate B ank b u t b e tte r know n in
Iow a and Illinois b an k in g circles. He
is a d irecto r of th e Illinois N ational
B ank of Quincy, Illinois, a directo r of
Peoples Savings B ank of W aterloo,
Iowa, an d executive vice p resid en t and
a d irecto r of th e F ed eral D iscount Cor­
poration, D ubuque, Iowa.
S totesbery, 44, has tw o sons in th e
arm ed forces: Russell, Jr., 23, w ho a t­
tended th e U n iv ersity of M innesota
law school, is w ith th e T h ird a rm y in
G erm any; E dw ard, 21, w ho w as atOUR 50th YEAR

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

T H

C

0

rectors of the Bloom ington-Lake N a­
tional Bank, an affiliate of the F irs t Na­
tional. Rogers is p resid en t of the Dayton Rogers M anufacturing Company,
producers of die-cut m etal stam pings.
K eller is presid en t of th e K eller D rug
Company, and a d irector of th e N o rth ­
w estern D rug Company.
H arold G. M cConnell has been pro­
m oted by th e N in th F ed eral R eserve
B ank of M inneapolis from a ssistan t
vice presid en t to vice president. Mc­
Connell is in charge of credits and
loans and gu aran tees by th e b ank of
w ar production loans m ade as agent
for th e w ar and navy dep artm en ts and
the m aritim e com m ission.

The installm en t and personal loans
d ep artm en t of the F irs t N ational B ank
of M inneapolis is stepping out front.
The b ank is m oving th e dep artm en t

E

YTIYŒYTAL

BANK & TRUST COMPANY
OF M E W Y O R K
MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

May Î945

48
dozens of o th er durable goods item s
are available again afte r th e w ar. The
d ep artm en t w ill be enlarged to handle
th e added business.

from its fo u rth floor q u a rte rs to th e
ground floor in an ticip atio n of g reatly
increased activ ity w h en autom obiles,
w ash in g m achines, re frig e rato rs and

A new Sickness P olicy for Bankers pays $25.00 to $50.00 per week
and no reduction in the w eekly rate for non-confinement. All
diseases covered at the m axim um rate.
$4.00 pays for insurance in fu ll to the 15th of next September.
W RITE FOR A PPLIC A TIO N AND DETAILS.

Charles W . Cole, w ho last N ovem ber
w as elected p resident of th e p rin tin g
and publishing firm of H arriso n &
Sm ith, has been elected a m em ber of
th e board of directors of th e M idland
N ational B ank & T ru st Com pany of
M inneapolis. Cole is a native of W ater­
loo, Iowa.

D irectors have been elected for the
Second N o rth w estern N ational B ank
w hich w ill be th e successor to th e
Second N o rth w estern S tate B ank as
soon as m aterials are available to re-

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2550 Pillsbury Ave.

Minneapolis 4, Minn.

Guaranty Trust Company o f New \ ork
F ifth A ve. at 4 4 th St.

1 4 0 B r o a o vv a \

LONDON

PARIS

M adison Ave. at 6 0 th St.
BRUSSELS

C o n d e n s e d S ta te m e n t o f C o n d itio n , M a r c h 3 1 , 1 9 4 5
R ESO U RCES
Cash o n H and , in F ed eral R eserve B an k , and
D u e from B an k s and B an k ers . . . . . . $
U. S. G overnm ent O b l i g a t i o n s .
2 ,1 5 9 ,9 1 2 ,4 2 8 .5 8
6 9 1 ,1 6 3 ,6 3 8 .5 1
Loans and B ills P u r c h a s e d ........
P u b lic S e c u r it ie s ..................................$ 5 8 ,0 7 7 ,6 4 8 .5 4
Stock o f th e F ederal R eserve B an k
7 ,8 0 0 .0 0 0 .0 0
O ther S ecurities and O b ligation s .
2 5 ,9 7 6 ,1 5 2 .5 1
Credits G ranted o n A ccep tan ces .
1 ,2 3 1 ,8 8 4 .2 5
A ccrued In terest and A ccounts
R e c e i v a b l e ........................................
1 0 ,0 7 9 ,7 6 6 .8 6
R eal E state B on d s and M ortgages .
1 ,5 1 2 ,1 1 4 .9 2

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

1 0 4 ,6 7 7 ,5 6 7 .0 8
...................................................................
9 ,4 9 2 ,3 6 8 .1 9
B ank B u ild in g s
O ther R eal E s t a t e ..................................
...................... 8 5 0 ,1 1 5 .6 5
T otal R esou rces

.

.

.

.

.

.

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

L IA B IL IT IE S
C apital
............................................... $ 9 0 ,0 0 0 .0 0 0 .0 0
Su rp lu s F u n d .................................. 1 7 0 ,0 0 0 ,0 0 0 .0 0
U n divided P rofits
. . . .
■ 4 5 ,1 4 8 ,3 3 6 .2 5
T otal C apital F u n d s ........................................ $
G eneral C on tin gen cy R e s e r v e .
3 4 ,6 3 3 ,2 0 6 .1 5
D e p o s i t s ........................................... $ 3 ,1 0 6 ,6 4 8 ,0 8 0 .5 3
T reasurer’s C hecks O u tstan d in g ____ 7 ,6 0 4 ,3 5 7 .5 9
T otal D e p o s i t s ..............
3 ,1 1 4 ,2 5 2 ,4 3 8 .1 2
A c c e p t a n c e s ..................................$
4 ,3 4 7 ,2 9 3 .6 9
L ess: Own A cceptan ces
H eld for In vestm en t . . . _____3 ,1 1 5 ,4 0 9 .4 4
$
1 ,2 3 1 ,8 8 4 .2 5
L iability as E nd orser on A ccept­
ances and F oreign B ills • .
1 0 0 ,6 3 2 .0 0
F oreign F und s B orrow ed
. .
1 5 2 ,5 5 0 .0 0
D ividend P ayab le A pril 2, 1 9 4 5
2 ,7 0 0 ,0 0 0 .0 0
Item s in T ransit w ith F oreign
B ranches and Net D ifferen ce
in B alan ces betw een O ffices
D u e to D ifferen t Statem en t
D ates o f F oreign B ran ch es .
2 ,4 9 0 ,2 6 8 .6 6
A ccou nts P ayab le, R eserve for
E x p e n ses, T axes, etc. . . .
2 3 ,0 9 0 ,9 9 8 .9 4

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

2 9 ,7 6 6 ,3 3 3 .8 5
T otal L iab ilities

.

.

.

.

.

.

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

Securities carried at $799,236,912.68 in the above Statement are pledged to qualify for
fiduciary powers, to secure public moneys as required by law, and for other purposes.
This Statement includes the resources and liabilities of the English and French
Branches as of March 26, 1945, and Belgian Branch as of October 31, 1941.

Member Federal Deposit Insurance Corporation

Northwestern Banker

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

May 19k5

F R A N K C. O’B R IE N
P resident of N ew Bank

m odel new q u arters in th e T w in Cities
M idway district.
D irectors are H. Jack D ow , presid en t
of Louis F. Dow Company; A lbert E.
F loan, secretary of N o rthw est A irlines,
Inc.; C hristian A. Lund, p resid en t of
N o rthland Ski M anufacturing Com­
pany; Jam es W . Moore, a ssistan t vice
presid en t of Archer-D aniels-M idland
Company; F ran k C. O’Brien, vice p resi­
dent of N o rth w estern N ational B ank
and president of th e new bank; C. W.
Onan, p a rtn e r in D. W. Onan & Sons;
S tan ley L. W asie, presid en t of M er­
ch ants M otor F reig h t, Inc.; and J.
R ichard W ren, vice p resid en t and
cashier of th e new bank.
A. W . Sands, presid en t of th e W est­
ern S tate B ank of St. P aul and Miss
Pauline G usfenhoven, form erly a m em ­
b er of th e St. P aul F irs t N ational B ank
staff, w ere m arried recently and have
re tu rn e d to St. P aul after a trip to E x ­
celsior Springs, M issouri.
Cyrus P. B row n, 76, w ho served as
presid en t of th e F irs t N ational B ank of
St. P au l for II y ears u n til 1929, died
OUR 50th YEAR

49
• M I N N E S O T A
recen tly at his hom e in S aunderstow n,
R hode Island. He w as born a t P ro v i­
dence, Rhode Island, w here he becam e
presid en t of th e In d u stria l T ru st Com­
pany. In St. P aul he w as first vice
p resid en t of th e F irs t N ational and in
1918 w as elected president. He also
established an in v estm en t firm, B row n,
Lisle & M arshall Company.

NEWS

1922 afte r serving as a m ajor in the
A rm y A ir Corps du rin g th e last w ar
and becam e secretary of th e W ashburn-C rosby Company. He w as p resi­

•
dent of G eneral Mills, Inc., from 1934
u n til December, 1942, w hen he became
vice chairm an of th e W ar P roduction
Board. He re tu rn e d to M inneapolis

L ym an E. W akefield, p resid en t of
th e F irs t N ational B ank of M inne­
apolis, has announced th e election of
D onald D. D avis to th e b a n k ’s board of

r
D O N A L D D. D A V IS
On F irst N ation al Board

directors. Davis is executive vice p resi­
den t of th e M innesota & O ntario P ap er
Com pany. He cam e to M inneapolis in
l\
1 \ ____________

J am ieso n
&

Company
Members

N ew York Stock E xchange
and

Other Principal E xchanges

COURTEOUS
W h at a strange adjective to apply to
bank checks, and yet Personalized
Checks are courteous because those
w ho use them extend to those w ho
read them the courtesy o f legibility.
M ost p eople are courteous but there
are m illions w hose signatures can­
n o t be read and yet they sign letters
and checks w ith o u t realizing how
m u ch in co n v e n ien c e they cause
others. If they did realize they w ould
have th eir nam es typed on letters
and printed on checks.
A re such p e o p le " to u c h y ” a b o u t
th e ir sig n a tu re s? W o u ld th ey be
offended if it was p ointed o u t to
them that the printed name m ight
help? W e d o n ’t believe so, b u t it
w ouldn’t take lo n g to find out.
Ju st as a test . . . why n o t ask your
bookkeeping departm ent today to

★

BANK

CHECKS

pick out ten checks bearing signa­
tures that are hard to read and are
frequently m issorted. T hen frankly
explain to these depositors how
difficult it is to sort their checks and
ask them to invest $1.25 in 200
P e rso n a liz ed C hecks. W e p re d ic t
that there w o n ’t be one w ho will
take offense and w hen you get thru
you w ill have ten m ore depositors
whose checks w ill no longer create
bottle necks in your shop.
Thousands o f banks are now selling
Personalized Checks to their depos­
itors. T he tim e is approaching when
everyone w ill use them . T hey are
good for the depositor, they save
m oney for the bank and, to repeat,
they are courteous. W rite us for m ore
complete inform ation on the DeLuxe
Personalized Check program .

STOCKS
BONDS
COMMODITIES
★
MINNEAPOLIS
ST. PAUL
DULUTH

FARGO
GRAND FORKS
SIOUX FALLS

PRIVATE WIRES

OUR 50th YEAR

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

N orthwestern Banker

Man Í945

50
•
last October. He is also a directo r of
th e A m erican H oist and D errick Com­
pany of St. Paul.
S upervision over construction, equip­
m en t and re n ta ls of buildings owned
and occupied by b an k s and affiliates of
F irs t B ank Stock C orporation in 65
cities in M innesota, M ontana, N orth
and South D akota h as been placed in
th e h an d s of E. A. T yler w ho since
1929 h ad been re n ta l m an ag er of the
F irs t N ational B ank building in St.
Paul. T yler has been nam ed m anager
of th e d ep artm en t of buildings of the

MINN ESOT A

NEWS

F irs t Service C orporation, operating
affiliate of th e F irst B ank Stock Cor­
poration, w ith offices a t th e F irs t National-Soo L ine building in M inne­
apolis.
A. E. Giere, w ho has been operations
m an ager of th e F irs t N ational B ank
building in St. P aul w ill take over m an ­
agem ent of ren ta ls for th a t building
w ith P aul M. H a v en s as his associate.

•
ber of the board. H itchcock’s firm,
w hich he founded in 1916, m anufac-

The board of directors of th e M inne­
h ah a N ational B ank of M inneapolis has
elected R. C. H itchcock, general p a rt­
n e r in R. C. H itchcock & Sons, a m em ­

R. C. H ITC H C O C K
Named Bank D irector

tu res brass, alum inum and m agnesium
castings, being th e only m agnesium
foundry in th e N orthw est, its to tal p ro ­
duction now being used in w ar service.
A d ep artm en t devoted to business
developm ent, offering advice, inform a­
tion and financial assistance w here
needed, has been opened by th e Mid­
w ay N ational B ank of St. Paul. The
d ep artm en t is u n d er direction of C. J.
R itt, vice presid en t and b ro th e r of A.
L. R itt, president.

Minnesota Brief News
Dr. F . E. E lliso n of M onticello, M in­
nesota, has been elected p resid en t of
th e W rig h t County S tate B ank of Mon­
ticello, to fill th e vacancy m ade by the
recent death of Nie Scherm er. Dr.
E llison has been on th e board of direc­
tors and vice presid en t since th e bank
w as m oved from Silver Creek.
C harles T. P eterson , form erly cash­
ier of the State B ank of Mora, Mora,
M innesota, is assisting these days at
th e F irs t N ational B ank of B raham ,
M innesota. The fo rm er assista n t cash­
ier of th e F irs t N ational, George Olson,
is now located in D etroit as a civilian
m em ber of the A ircraft P rio rities
Board, w hich covers M ichigan, Ohio
and Indiana.

Coast G uard L ieu ten an t Oscar A.
Olson, Jr., presid en t of th e F irs t N a­
tional B ank of B raham , M innesota,
w as hom e recently on leave afte r 15
m onths in th e South Pacific.
N orthwestern Banker

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

May 1945

O U R 5 0 th YEAR

51

SOUTH
/~ < v

A

DAKO TA

*8»

H. R. KIBBEE, JR.
President
M itchell

NEW S
Acting Secretary
LO IS J. HALV O R SEN

Students G e t Experience
N o rth w est S ecurity N ational B ank
and th e S ecurity B ank and T ru s t Com­
pany, M adison, South D akota, are co­
o p eratin g w ith th e com m erce d e p a rt­
m en t a t E a ste rn to give stu d en ts real
business experience w hile th e y are
ta k in g com m erce courses a t E astern .
T his is a plan sim ilar to th e coopera­
tive w o rk plan used w ith engineering
stu d en ts and o th er technical tra in in g
program s.
In addition to w o rk being assigned
in the college offices, stu d en ts enrolled
in th e com m erce courses spend tw o
w eeks in actu ally w o rk in g in th e two
banks. T he plan has been w orked out
in connection w ith th e course in secre­
ta ria l tra in in g offered d u rin g the
sp rin g te rm at E astern .

Depository Banks
The tw o V erm illion, South Dakota,
banks, th e C itizens and th e N ational
B ank of South D akota, and th e Secur­
ity S tate B ank of W akonda w ere
nam ed by th e com m issioners last
m onth as th e depository b an k s for Clay
county funds.

Extend C h arters
E x ten sio n s of co rporate existence for
th re e sta te b an k s hav e been approved
by th e sta te b an k in g com m ission of
South D akota w hich also g ran ted th re e
applications for capital stock increases.
G iven 20-year extensions of incor­
p o ratio n w ere F irs t S tate B ank at
P ierp o n t, C om m unity S tate B ank at
L ake P resto n and F a rm e rs S tate B ank
a t M arion.
Increased capital stock th ro u g h
am en d m en t of incorp o ratio n articles
w as au th o rized for th e Jones C ounty
B ank, M urdo, from $15,000 to $25,000;
V ivian S tate B ank from $10,000 to
$15,000, and th e C om m unity B ank of
H a rtfo rd from $25,000 to $100,000.

O ffe r Farm ers Record Books
The Leola S tate Bank, Leola, South
D akota, has a n u m b er of farm record
books on h an d w hich, if p ro p erly kept,
O UR 5 0 th YEA R


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

GEORGE M. STARRING
Secretary-Treasurer
Huron

(In the Service)

w ill save th e farm er m uch tim e and
m oney w hen incom e tax rep o rtin g
tim e comes around. E v ery farm er
should have a copy of th is valuable
record book, and th e b an k urges them
to call for theirs.

Buy Time Saving M achine
T he F a rm e rs State Bank, Stickney,
South Dakota, has bought a re-built
posting m achine, a m uch later style
th a n th e ir old m achine, and it is a great
tim e-saver, A m aine D onker is th e ir
new bookkeeper.
Deposits have increased about $50,000 d u rin g th e p ast year, according to
E. G. B orm ann, cashier.

Honor Long Time Banker
In recognition of E. H. B enedict’s 60
y ears of continuous service to th e bank,
th e M ilbank branch, F irs t N ational
B ank of Aberdeen, South Dakota, and
th e Commerce and C om m unity Club of
M ilbank, South Dakota, joined in a
b an q u et of trib u te to him last m onth.
W. S. Given, form er p resid en t of the
bank, speaker of th e evening, com­
m ended Mr. Benedict on his re m a rk ­
able record w ith th e longest consecu­
tive period of service of any official in
th e N o rth w est B ancorporation group.
H e stated th a t Mr. B enedict had also
served continuously for 46 y ears as
tre a su re r of th e board of education of
M ilbank and had played an im p o rtan t
role in th e developm ent by th e M ilbank
te rrito ry w hich, it w as pointed out,
w as know n only as D akota w hen Mr.
B enedict began his ban k in g career in
A pril 1885—statehood w as still four
and a half y ears away. As a token of
esteem , Mr. B enedict w as presen ted by
his b an k associates w ith a sterlin g
silver, m onogram m ed cig arrette lig h t­
er.

Announce C a p ita l Increase
Jo h n L. Wood, presid en t of Com­
m u n ity Bank, H artford, South Dakota,
announces an increase in th e capital
account of th a t b an k to $120,000, w ith
capital of $100,000, su rplus of $10,000
and undivided profits of $10,000; and

w ith a new loan lim it of $22,000 to one
borrow er.
C om m unity B ank w as established on
Ju ly 15, 1925, w ith a capital of $25,000
and Mr. W ood has been m anaging offi­
cer of th e ban k du rin g th a t tim e.
In 1938 a b ran ch w as established at
H um boldt and in 1941 a b ran ch at Col­
ton, and C om m unity B ank w ill be the
first state b ank to com ply w ith th e pro­
visions of th e South D akota b ranch
b ank act. D eposits of th e b an k are
m ore th a n one and one-half m illion
dollars and th e ban k services nearly
th e w hole w estern half of M innehaha
county. N. F. Van V leet has been
m anager at H um boldt and W. J. Berdahl at Colton.

Ease Foot W o rk
The Springfield State Bank, Springfield, South Dakota, is having a new
floor laid in th e lobby and w ork room,
of asbestos tile, w hich w ill be a m arked
im provem ent in both appearance and
foot com fort for the employes.

Davison County Depositories
The tw o M itchell, South Dakota,
banks, th e Com m ercial T ru st and Sav­
ings and the M itchell N ational, w ere
approved as depositories for Davison
county funds, at th e m eeting of th e
county com m issioners recently.

Bankers G S D A Directors
In an outline for a program of w ork
for 1945 of th e G reater South D akota
Association, a n u m ber of ban k ers of
th a t state w ill take a p ro m inent part.
Am ong directors of the GSDA are:
J. M. Lloyd, vice president, A m eri­
can State Bank, Y ankton; T. M. Brisbine, cashier, Sanborn C ounty Bank,
W oonsocket; F re d L. Lewis, p resident
of th e F irs t N ational Bank, Lem m on,
and Jo h n N. Thom son, vice presid en t
of the B ank of Centerville.

Sioux Falls News
IOUX FA LLS b anking new s w as
highlighted last m onth by th e open­
ing of th e new Sioux V alley Bank,
u n d er th e presidency of E rlin g H augo,
form er South D akota banking su p erin ­
tendent.
In organizing the new bank, am end­
ed articles of incorporation w ere filed,
providing for th e establishm ent of the
Sioux F alls b an k w ith a b ranch at
H arrisb u rg , succeeding th e H arrisb u rg
S tate Bank.
A ppointed as cashier of H augo’s
ban k w as R oy H. F en ner, form er ex­
am in er w ith th e state b an king d ep art­
m ent. A Sioux F alls resident, F en n er
en tered th e banking business in 1918
at M ilbank. A fter serving in th e arm y

S

Northwestern Banker

May 19b5

52

The
N ew York Trust
Company
C a p ita l Funds O ver $50,000,000

IO O B R O A D W A Y
M A D ISO N AVENUE
AND 40T H STREET
TEN
R O C K EF E L LE R
PLAZA

★
BUY
W AR
BONDS
★

d u rin g th e first W orld W ar, F e n n e r
w as associated w ith a b ank at Minot,
N o rth Dakota, for tw o years, th en be­
cam e assistan t cashier of the F irst
State B ank at W ilm ot, South Dakota,
a position he held 17 years. He served
as state b ank exam iner u n d er Haugo
for six years.
H augo announced th a t H. G. Mosby
field secretary and business m anager of
th e South D akota E ducation associa­
tion since 1939, w ill be vice p resid en t
of th e Sioux Valley ban k and m anager
of th e H arrisb u rg office.
U nder th e am ended articles of in ­
corporation, th e b an k has a capital ac­
count of $67,500, w ith $50,000 common
capital. The increased capitalization
w ill p erm it a h igher loan lim it at the
H a rrisb u rg branch, Haugo said.
In addition to H augo and F enner,
th e Sioux Falls staff includes Milo
H ess, form erly w ith th e M adison
b ran ch of th e N orthw est Security N a­
tional Bank, w ho is serving as teller,
and M iss F ran ces K in n ey, stenog­
ra p h e r and bookkeeper.
M iss Marie Blue, w ho has been as­
sociated w ith th e H a rrisb u rg State
B ank for a nu m b er of years, continues
in th a t city as a ssistan t in th e b ran ch
office.

Member of the Federal Deposit Insurance Corporation

N ew s of in te re st to ban k ers here w as

Correspondent Service in

SO U T H A M E R IC A
• This bank offers valuable assistance to banks
having customers interested in the South American
field. In 18 important South American cities we
operate well-established branches. Our officers
speak the language, know the people, enjoy wide
and friendly business contacts. We invite inquiries
from banks seeking correspondent service in Latin «**!
America. Address inquiries to
Business Development Department
New York Agency, 68 William Street
tstsxmm

■'& s-,~.sessnm)»? #ssx&<sx

'-mmmmimtmmmmm

Branches in: Argentina Brazil British Guiana
Colombia
Peru
Uruguay
Venezuela
also in British Honduras, Cuba, Haiti, Dominican
Republic, Puerto Rico, and the British West Indies.

THE ROYAL BANK OF CANADA 1
HEAD OFFICE — MONTREAL

Business Link with Latin Am erica since 1899

Northwestern Banker

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

May 19lt5

th e fact th a t 25-year-old Ut. Col. W il­
liam D eP u y of Sioux F alls h ad been
given the assignm ent of guarding the
huge hoard of G erm an gold discovered
in caves at M erkers, G erm any. Lt. Col.
D ePuy is the son of Mr. and Mrs. R. M.
D eP uy of Sioux Falls, w ho m oved last
Ju ly from Brookings, w here Mr. D ePuy
w as b ran ch m anager of th e N o rth w est
Security N ational Bank.
Ten g rad u ates of an A m erican In sti­
tu te of B anking course in com m ercial
law-, conducted in Sioux F alls by Roy
W illy, attorney, w ere feted at a ban ­
quet at the C arp en ter hotel given by
R alph M. W atson, presid en t of th e
N o rthw est Security N ational Bank.
The group of g rad u ates included B.
F. B orgers and L ouise W . W oelk of th e
N o rthw est Security N ational Bank;
L illian Boyd, D orothy Cam pbell and
N. W. W ilson of th e U nion Savings
Bank; W . J. Corcoran, M arie Iverson ,
H enry C. L ehr and M ary A lice Sim p­
son of th e N ational B ank of South
Dakota, and M ilton R. Jacobs of th e
W estern S urety Company.
O thers atten d in g th e b an quet w ere
L. H. H ageii, presid en t of th e local AIB
chapter; A dolph L odm ell, form er p resi­
dent; T. S. H arkison, p resid en t of th e
N ational B ank of South Dakota; W il­
liam Duffy, presid en t of th e U nion Sav­
ings Bank; W . E. Perrenoud, cashier
of th e F irst N ational B ank and T ru st
Company; and P etrin e Horstacl, secre­
ta ry in th e W illy law office.
Sioux Falls b an k ers are p articip atin g
w holeheartedly in a cam paign to raise
a fund of $195,750 for th e construction
of a new, m odern YWCA building
th ere, and to cover c u rre n t YMCAYWCA expenses.
In th e team s’ section responsible for
solicitation of 5,000 prospects. C. A.
C hristopherson, ch airm an of the board
of directors of the U nion Savings Bank,
is one of four group leaders. Serving
as one of th e solicitors is H. O. E n gen ,
cashier and vice presid en t of th e U nion
Savings Bank, as is Mrs. P. H. Mc­
D ow ell, w ife of th e vice p resid en t and
tru s t officer of th e N o rth w est S ecurity
N ational Bank.
Am ong m em bers of th e p a tte rn gifts
com m ittee is Tom S. H arkison, p resi­
den t of th e N ational B ank of South
Dakota. Am ong m en soliciting ad­
vance gifts to th e fund are H arkison
and R alph W atson, p resid en t of th e
N o rthw est S ecurity N ational Bank.
South D akota b an k ers are m aking
plans for full p articip atio n in th e 7th
W ar Loan cam paign, according to T.
N. H ayter, vice presid en t of th e F irst
N ational B ank and T ru st Com pany and
South D akota ch airm an of th e A m eri­
can B an k ers’ A ssociation bond sales
O U R 5 0 th YEAR

53
com m ittee. He rep o rted th a t Shirley
Ford, p resid en t of th e N o rth w est N a­
tional B ank of M inneapolis, has been
nam ed regional ch airm an of th e ABA
com m ittee, superv isin g th e pro g ram in
M innesota, N o rth and South D akota,
and Iowa.
P. K. M cD ow ell, vice p resid en t and

A USEFUL HANDBOOK OF INFORMATION
ON U. S. GOVERNMENT SECURITIES

tru s t officer of th e N o rth w est S ecurity
N ational B ank, w ho has had charge of
naval officer p ro cu rem en t in South
Dakota, is a c h a rte r m em ber of th e re ­
cently-organized Sioux F alls council,
N avy L eague of th e U nited States. He
arra n g e d a chaplain re c ru itm e n t cam ­
paign w hen Lt. Comdr. A. J. McKelway, w ho served 20 m onths aboard the
E ssex a irc ra ft carrier, addressed Sioux
F alls m in isters. McDowell h as also
been active as a regional coordinator
of th e state w ar savings staff in o rg an ­
izing th e 7th W ar L oan cam paign in
so u th w estern South Dakota.
F red H ollister, chairm an of the
board of directors of the N o rth w est Se­
cu rity N ational Bank, re tu rn e d to
Sioux F alls a fte r 2% m o n th s in Florida,
ju st in tim e to catch a rag in g m id-A pril
blizzard.

CPO R odney 0. B ray of th e navy,
son of O. A. Bray, a ssista n t cashier of
th e N o rth w est S ecurity N ational Bank,
re tu rn e d hom e on leave a fte r tw o
y ears at Sam oa and 14 m o n th s in th e
P hilip p in e area. He w as m arried last
m onth to M artha Schnaidt, d au g h ter of
Mr. and Mrs. W illiam F. Schnaidt.

O k worthwhile help to banks interested in U. S. Govern­
ment Securities is this new Northern Trust Company booklet
containing charts, tables and information usually sought by
those interested in such securities. Write for your copy.
BOND DEPARTMENT

J. Cameron Thom son, p resid en t of

th e N o rth w est B ancorporation, M inne­
apolis, delivered th e com m encem ent
address a t H u ro n College on May 5th.
Am ong th e b an k ers in Sioux F alls
for th e opening of th e new Sioux V al­
ley B ank w as Don Crouley, vice p resi­
den t of th e N o rth w est N ational B ank
of M inneapolis.

Recom mends This Book
C. J. Claassen, p resid en t of th e
F a rm e rs N ational Com pany, of Omaha,
says th a t th e book “Two B illion Acre
F a rm ,” is th e k een est so rt of A m erican
h isto ry w ritte n in television tem po
th a t re tu rn in g w a r v eteran s, th e
M edical A ssociation, and city read ers
like too m an y folks are, w ill revel in—
h isto ry teach ers w ill like it, and even
Rosie th e R iv eter.”
Mr. C laassen says th is u n u su al book
will give its read ers a new, quick h is­
to rical glance a t th e presen t, and also
into Iow a and N ebraska in d u stria l fu ­
tu re. P ublish ed by Doubleday, D oran
—at $2.50.
O UR 5 0 th YEA R


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

THE NORTHERN
TRUST COMPANY
C H I C A G O 90, I L L I N O I S

BUILT TO CARRY HEAVY LOADS *••***
...........

KNOWS

HOW!

Tension Tie (the original button and
string fastener) envelopes are well
built of tough papers to carry heavy
loads. Can be opened and closed
many times and are serviceable in
dozens of ways. Carried in stock in
popular sizes.

1912 Grand Ave., Phone 4-4126, Des Moines 14, Iowa
Northwestern Banker

May 19^5

54
m em ber of th e state legislature, legis­
lation; C. C. W attam of Fargo, asso­
ciation secretary, g eneral problem s,
and John Graham of B ism arck, state
bank exam iner, problem s of banking
generally.
B ankers from areas su rro u n d in g
each of th e cities w ere invited to a t­
tend th e sessions.

NORTH
DAKOTA
NEW S

A. C. IDSVOOG
President
Grafton

Deposits N ear Three Million
M oving from Silva, N o rth Dakota, to
H arvey, N orth Dakota, in 1936, th e
F irs t State B ank of H arvey bou g h t th e
building and fixtures of th e F irs t Na­
tional B ank there, w hich liquidated at
th a t time. D eposits of th e F irs t State
recorded in 1938 w ere $334,714, and
have grow n from th a t figure to alm ost
$3,000,000 at th e close of 1944.

W a r Bond Q uota
N orth D akota’s W ar Bond quota for
the 7th W ar L oan D rive is $33,500,000,
and P resid en t A. C. Idsvoog has been
reap p o in ted as A m erican B ankers As­
sociation com m ittee ch airm an for
N orth Dakota.

Bank President Retires
J. J. Schmid, a fte r 20 y ears as p resi­
dent of th e F irs t N ational B ank of
W ilton, N orth Dakota, re tire d from
th a t office last m onth.

Final Hearings
In B ism arck, N orth Dakota, Judge
F re d Jan so n iu s set th is m onth for final
hearin g s on seven closed state banks
on w hich final rep o rts of liquidation
have been filed by L. R. B aird, state
receiver.
T hey include th e B ank of Zahl; Fortu n a State Bank; M erchants State
Bank, Velva; F irs t State Bank, Stady;
F irs t S tate B ank, R yder; F a rm e rs and
M erchants S tate B ank, Bowdon, and
F arm e rs State B ank of Driscoll.

Buys Bank
F irs t N ational B ank of W illiston,
N orth Dakota, has been purch ased by
a group of b usinessm en from P. M.
Johnson, w ho is retirin g .

Highest in 63 Y ears
Business
D eposits of th e F irs t N ational B ank
of M andan, N orth D akota, a t th e close
of business M arch 20th w ere $4,687,978,
th e larg est to tal of individual deposits
in th e 63-year h isto ry of th e bank, J.
N orthwestern Banker

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

May 19^5

C. C. WATTAM
Secretary
Fargo

R. M adsen, president, said recently.
It is one of th e pioneer in stitu tio n s
in th e city and one of th e early national
banks in th e state.

Fine C ro p Prospects
E xcellent subsoil m oisture condi­
tions prom ise a good s ta rt for 1945
crops in th e N inth F ederal R eserve
D istrict, th e F ederal R eserve Bank,
M inneapolis, points out to ban k ers
th ro u g h o u t the area relative to busi­
ness and ag ricu ltu ral conditions in the
north w est.
“Crop prospects . . . appear optim is­
tic, if a guess th is early in th e season
m ay be m ade,” th e b an k said.
It pointed out th ere w ill be a large
acreage planted w ith b e tte r seed, such
as h y brid corn and im proved varieties
of oats, w h eat and o th er crops, and it
added:
“A near-record production of fertiliz­
ers w ill aid crop production. G overn­
m en t price guaran tees of farm prod­
ucts and th e need for food w ill encour­
age continued m axim um efforts of
farm ers to produce to th e lim it.”

Fargo News

A series of six regional m eetings
for insurance m en, sponsored by the
N orth D akota A ssociation of In s u r­
ance A gents, w ere held recently.
All afternoon sessions, th e y w ere
held at Fargo, C harles A. D aw son,
chairm an; G rand F orks, A gnes Thom p­
son; Valley City, Thom as Yaeger;
Devils Lake, A. A. P ow ell; Minot, R. J.
D oehler and H. W. M ontgom ery; Bis­
m arck, J. D. B yrne and W. A. Harr.
Speakers scheduled w ere C. W.
H e w itt of Dorset, M innesota, prom i­
n en t b an k er and insurance man;
W alter J. L eM unyon of New York
City, agency su p erin ten d en t for the
F idelity a n d
C asualty Company;
Trim hle P. D avis of Fargo, state agent
for th e Phoenix In su ran ce Company,
and W allace O. R ogers of Chicago,
public relations rep resen tativ e of the
national association.
P urch ase of the F arm ers State B ank
at Crosby, N orth Dakota, w as m ade
by some of th e officers and directors
of th e F irs t N ational B ank of W illis­
ton, N orth Dakota.
Officers of th e Crosby b ank are:
Ben Bartz, president; H arold H an isch,
vice president; E. G. Johnson, cashier,
and R. G. R asm usson, director. B artz
and H anisch also are directors. Mr.
Joh n so n has been cashier several
years.
Mr. Bartz, m anager of T he Texas
C om pany’s plan t at W illiston, is m an­
ager of the bank, assisted by H anisch,
form erly w ith th e Case Company.

N D ER auspices of th e N orth Da­
kota B ankers A ssociation a series
Change of ow nership of th e Citizens
of group m eetings for discussion ofS tate B ank of E nderlin, N o rth D akota,
c u rre n t and p o stw ar problem s w ere took place recen tly w hen St. Olaf col­
scheduled last m onth, it w as announced lege of N orthfleld, M innesota, sold its
by C. C. W attam of Fargo, association
stock in th e bank. T he new ow ners
secretary.
w ere O. A. R efling of D rake, N orth
The m eetings, each w ith a d inner Dakota; Fred J. Mohr, of Fessenden,
a t 6:30, w ere as follows: V alley City, N orth Dakota; E. N ygren of Elbow
R udolph hotel; Devils Lake, G reat Lake, M innesota, and E. N. K ittelson,
N o rth ern hotel; Minot, C ountry club; R oy R asm usson, John A ustad and Mrs.
W . W. ShaAv, all of E nderlin.
B ism arck, P atterso n hotel.
A.
C. Id svoog of G rafton, association Refling, presid en t of th e new bank,
p resident, discussed th e association’s also is p resid en t of th e F irs t N ational
p a rt in th e S eventh W ar Loan; Jerry
B ank of D rake, th e F irs t N ational
B ank of B ottineau and th e F irs t N a­
M urphy of th e F argo U. S. V eterans
facility, th e GI Bill; P at O’B rien of tional B ank of F essenden. N ygren
th e R econstruction Finance C orpora­ is in th e m ercantile business a t Elbow
tion, M inneapolis, sm all business loans; Lake. K ittelson and R asm usson re ­
tain th e ir p resen t positions as cashier
G. A. K lefstad of th e S argent C ounty
B ank, Forem an, N orth Dakota, and a and a ssistan t cashier, respectively.

U

O U R 5 0 th YEAR

55
•

N O R TH

J. A. Graham, N orth D akota state
bank exam iner, announces th a t th e re
w ere no changes in th e state b an k s of
N o rth D akota as to new banks,
changes in b an k titles, m ergers, con­
solidations, closings or b an k s th a t
have voted to e n te r into v o lu n tary
liquidation, d u rin g M arch.

W H A T 'S A H E A D
BA N KERS

FO R

(C ontinued from page 19)
and L ois H alvorsen, acting secretary
for South D akota, an sw ered m any
questions abo u t th e plan.
The ABA is doing a p re tty poor job
of sending out new s from W ashington
as such affects th e b an k s of th e coun­
try , believes H arry H ausm an, secre­
ta ry of th e Illinois A ssociation. T here
is need of a b e tte r p a tte rn to follow so
th a t state secretaries can be inform ed
in advance of changes, giving th em a
b e tte r chance to know how to m eet sit­
uatio n s th a t arise.
W ith th e C onference held in Chicago,
Mr. H au sm an w as w h a t m ight be
term ed m a ste r of cerem onies for th e
occasion, and h ad arran g ed for th e
several luncheons and o th e r e n te rta in ­
m ent, and his efforts w ere hig h ly suc­
cessful.

LEG A L

Q U E S T IO N S

(C ontinued from page 22)
six year old girl and $1,000 for doctor’s
bills, exp en ses, and loss of services
during m inority. In so holding, the
Court pointed out that in earlier decision s of som e years stand in g low er
allow an ces w ere held not excessive,
but that, because th e le v el of personal
earnings has risen and in terest rates
have gone dow n, the allow an ces nam ed
in such d ecision s w ere no lon ger
proper.

Bolian, a young M issouri b anker,
was appointed executor of th e estate
of a deceased friend. H e had never
acted in such capacity before. Could
he, w ith o u t co u rt approval, pay such
claim s as w ere p resen ted to him
ag ain st th e estate of th e decedent.
No. U nder M issouri statu te, no ad­
m inistrator or execu tor has the right
to pay alleged claim s again st a de­
ced en t’s estate, u n less th ey are pre­
sented and allow ed by the court h av­
in g jurisd iction to do so, regardless of
the righ t and ju stice of the claim s.

H ess, a N o rth D akota farm er, held
certain land in th a t sta te subject to a
tru s t. H e sold th e land to Conn, a
OUR 50th YEAR

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

D A K O T A

NEWS

banker, for a cash price th a t w as
equivalent to its full value. Conn had
no notice of the tru st. Did Conn take
the p ro p erty subject thereto?
No. A tran sferee of real property
subject to a tru st takes it free of the
tru st if he is a p urch aser w ithou t
notice and for value.

A rm strong, an A labam a banker, ex­
ecuted, and had w itnessed, a w ill
w hich w as subsequently contested.
It w as contended at th e tria l of th e

*

w ill contest su it th a t th e in stru m e n t
w as n ot a p roper one because the
w itnesses w ho a ttested th e te sta to r’s
sig n atu re had n ot done so a t his p e r­
sonal request. If th e facts supported
such contention, w as the will, n ever­
theless, valid?
Yes. The attestation of a w ill in
A labam a n eed not be at the personal
req u est of the testator. It is sufficient
if done in th e testa to r’s presence w ith
h is k now ledge or con sent expressed
or im plied.

The First National Bank
of Chicago
Statement of Condition March 20, 1945
ASSETS

Cash and D ue from B a n k s ,.................................................$ 4 0 2 .3 3 0 ,8 1 7 .9 8
U nited States Obligations —Direct and fully Guaranteed,
U npledged,
.
.
.
.
$ 8 2 6 ,9 6 5 ,8 8 0 .7 0
Pledged—To Secure Public Deposits and
Deposits Subject to Federal Court Order, 3 3 6 ,5 4 1 ,0 8 8 .4 6
To Secure Trust Deposits,
.
.
29,053,761.25
Under Trust Act of Illinois, .
.
537,4 8 3 .8 3 1,193,098,214-24
Other Bonds and Securities,
.
.
.
.
.
107,913,269.26
Loans and D isc o u n ts,..........................................................
3 9 0 ,0 4 1 ,6 9 3 .8 0
Real Estate (Bank Building),
.
.
.
.
.
3 ,6 8 2 ,102.41
Federal Reserve Bank S t o c k , .......................................
3 ,0 0 0 ,0 0 0 .0 0
Customers’ Liability A ccount o f Acceptances,
.
.
1,677,423.71
Interest Earned, not C o l l e c t e d , .......................................
3 ,5 4 3 ,809.13
Other A s s e t s , ....................................................................
6 4 6 ,6 2 4 .5 7
$ 2 ,1 0 5 ,9 3 3 ,9 5 5 .1 0
L I A B I L I T I E S

Capital S t o c k , ................................................................... $
50,0 0 0 ,0 0 0 .0 0
Surplus,
.
.
.
.
.
.
.
.
.
5 0 ,0 0 0 ,0 0 0 .0 0
Other U ndivided Profits,
.
.
.
.
.
.
3,0 2 6 ,5 9 6 .8 8
D iscount Collected, but not Earned, .
.
.
.
762,691.81
Dividends Declared, but U npaid,
.
.
.
.
2,000,000.00
Reserve for Taxes, e t c . , ................................................
9 ,347,257.74
Liability A ccount o f Acceptances,
.
.
.
.
1,837,763.03
Tim e Deposits,
.
.
.
. $ 2 5 9 ,4 5 2 ,4 9 4 .7 8
Dem and Deposits,
.
.
.
1,368,121,057.50
Deposits o f Public Funds, .
.
3 6 1 ,385,888.75 1,988,959,441.03
Liabilities other than those above stated, .
,
. ___________ 204-61
$ 2 ,1 0 5 ,9 3 3 ,9 5 5 .1 0
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

May 1945

56

Stock Yards National Bank
O m a h a , N e b ra s k a
M E M B E R .


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

F .

D.

I-

C.

57

G . C . Benning

NEBRASKA
NEWS
EDGAR M cB R ID E
President
Blue Hill

Named to Board
W. H. Collett, vice p resid en t and
cashier of th e C rete S tate Bank, Crete,
N ebraska, atten d ed th e S tate W ar Con­
ference of th e N ebraska Ju n io r C ham ­
ber of Commerce, held at F re m o n t last
m onth, acting as ch airm an of th e
aw ards com m ittee.
Jam es E. P a lle tt of th e C rete State
B ank w as recen tly elected to th e board
of directors, to replace th e late O. G.
Miller. Mr. P a lle tt is a C rete m erch an t
and p ro m in en t in civic affairs.

Back from the South
T. T. V arney, p resid en t of th e B roken
Bow State B ank, B roken Bow, N ebras­
ka, re tu rn e d to B roken Bow after
spending a tw o m o n th s’ vacation a t St.
P etersb u rg , Florida.
The b an k w as low bidder on $16,000
city of B roken Bow a irp o rt bonds,
w hich w ere offered for sale by th e city
council last m onth.

Deposits Increase
Increase in th e deposits of th e Fairb u ry State Bank, F airb u ry , N ebraska,
d u rin g th e p ast y e a r up to late last
m onth w as $520,500, according to Irl
Else, p resid en t of th e bank. Mr. E lse
said th e b an k will have been in b u si­
ness for nine years A ugust 1, 1945. M.
B. W eaver, d irecto r and re tire d railw ay
conductor, died th e re recently.

Receives Legion Honor
E d g ar McBride, p resid en t of th e Ne­
brask a B ankers A ssociation and p re si­
den t of th e Com m ercial B ank, Blue
Hill, N ebraska, w as recen tly p resen ted
w ith th e A m erican Legion 25-year b u t­
ton. R. C. P atterso n , d e p a rtm e n t ad ju ­
ta n t of th e N ebraska A m erican Legion,
w rites in connection w ith th e p re se n ta ­
tion: “I ’d like to have you accept this
from th e W orld W ar II v eteran s of
N ebraska, as a slig h t to k en of a p p re ­
ciation for w h at you are doing for
them . I w an ted to send th is b u tto n to
you on behalf of th ese W orld W ar II
m en a fte r a tten d in g th e recen t m eet­
ing and seeing y o u r in te re st in g ettin g
th e in tric a te problem s of th e G. I. Bill
O U R 5 0 th YEAR


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

WM. B. H U G H E S
Secretary
Omaha

of R ights w orked out for them . T here
w ill be criticism by those who do not
u n d erstand, b ut I w an t you to feel
ev ery tim e you look a t this b u tto n th a t
you w ere th e one person in the state
w ho took th e m ove th a t really cleared
up a tho u san d and one problem s for
these men. It m ade me m uch m ore
p roud of th e Legion to know th a t one
of o ur m em bers w as doing the fine job
w hich you have u n d er your direction.”

C om pletes 30 Years Service
On Ju n e 1, 1945, H. G. T horley w ill
have com pleted th irty years of contin­
uous service at th e F irs t N ational B ank
of Springview , N ebraska, of w hich he
is now president. Mr. T horley also
serves th e Com m ercial N ational B ank
of A insw orth as president.

Veteran Banker
W ith Examiners
W alter J. K lutm an of Columbus, Ne­
braska, is assisting State B ank E xam ­
in er A. J. Jorgensen. He w as w ith the
F irs t State Bank, Lodgepole, N ebraska,
p rio r to en terin g the service in July,
1941, saw action in F rance, w here he
w as injured. He w as hospitalized in
th is country, and later, in December,
1944, w as discharged. He w as a second
lieu ten an t at the tim e of his discharge.

Bankers on Sick List
Jam es T. Shewell, vice president,
F a rm ers Bank, N ebraska City, N ebras­
ka, has been out of th e b ank since
October w ith a broken hip. He is now
g ettin g around the house on crutches.
J. R. Stevenson, cashier, has been out
of th e b ank since Septem ber w ith a
severe attack of asthm a. He has been
in A rizona since C hristm as and is
show ing some im provem ent. He hopes
to be hom e th e first of this m onth.
Mrs. Stella W yatt, rem ittan ce and
sta te m en t clerk in the b ank for the
p ast tw enty-six years, has retired, and
W anda M orris, form erly one of the
bookkeepers, has been advanced to h er
position, as well as p a rt tim e teller.
Mrs. M argaret Conley has been em ­
ployed as bookkeeper.

G ottlieb C. Benning, 61, cashier of
the B ank of Madison, Madison, N ebras­
ka, died last m onth a t his hom e in
Madison.
F ro m 1904 to 1906 he w as assistan t
cashier of th e M eadow Grove State
Bank, and from 1906 to 1915 w as cash­
ier of the B attle C reek Valley Bank.
He th e n took up ran ch in g in M ontana,
b u t re tu rn e d in 1916 to N ebraska to
become cashier of th e Monowi State
Bank.
F rom 1921 to 1925 he w as cashier of
th e B attle Creek Valley Bank, follow­
ing w hich he came to N orfolk to serve
for ten y ears as secretary and tre a su re r
of the N orfolk L ivestock Sales Com­
pany. F ro m 1937 u n til his death he
w as cashier of the B ank of Madison.

Buy Bank Interests
W. H. Sw artz and W. B. A braham son
have purchased th e T itus in terests in
th e F irs t N ational B ank of Loomis,
N ebraska.
All of tLe capital stock th a t had been
held by T itus in terests becam e the
p ro p erty of th e tw o men, w ho had al­
ready held a sizeable in te re st in the
stock of th e in stitu tio n , w hich th ey
have served for the p ast 38 years.
W. H. Sw artz, w ho has served as
president, and W. B. A braham son as
vice presid en t and cashier, w ill con­
tin u e in th e ir p resen t capacities.
The bank, at th e tim e of its last
statem en t on M arch 20th, had deposits
of $747,277.

New Bank at Sutherland
T he F irs t S ecurity B ank of S u th er­
land, N ebraska, replacing th e S u th er­
land Cooperative C redit Association,
opened for business last m onth, J. F.
P eters, state banking director, an ­
nounced.
C apital stock w as listed at $25,000;
surplus, $5,000, and undivided profits,
$2,500. Officers are: F. H. W hitlake'
p iesid en t; C. C. W Ritlake, vice p resi­
dent; A rch Leu, second vice president,
and R. E. W atson, cashier.

List Bank O ffice rs
In a recen t m eeting of th e board of
directors of th e F irs t N ational Bank,
F riend, N ebraska, P. O. Southw ick w as
elected president, and H. J. Southw ick,
ch airm an of th e board of directors. A.
H. F ra n tz w as elected vice p resid en t
and P. M. Rogers advanced to cashier.
Mr. R ogers w ill also occupy th e direc­
to rsh ip form erly held by Mrs. Lola
Southw ick-Funk, w ho lives in Cali­
fornia.
Mr. Rogers becam e associated w ith
th e b ank in April, 1919.
H. E. N unem aker rem ains a m em ber
of th e board of directors.
Northwestern Banker

Mai) 19^5

58

SOUND
BANKING SERVICE

U N I T E D

S T A T E S

fia i ion a l HtA X hü ofOmaha
M E M B E R

FDIC

«/

CO RRESPO N D EN T
F A C IL IT IE S

Northwestern Banker

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

May 19^5

59
Moore, H arry R ogers, A u stin V ickery,
E. N. Solom on, A lbert S tellin g, W ade
M artin and A. J. H allas.

The new loan program of th e Recon­
stru ctio n F inance C orporation is get­
tin g a “v ery favorable recep'tion” from
banks th ro u g h o u t N ebraska and W yo­
m ing, according to H erbert S. D aniel
of Omaha, RFC regional m anager.
T he program , announced to all state
and natio n al banks in th e tw o states,
provides RFC particip atio n w ith p ri­
vate lending in stitu tio n s up to 75 per
cent of com m ercial and in d u strial loans
w hich do n ot exceed $250,000.
“W e have received m any inquiries
about th e program ,” Mr. D aniel said.
T he program is designed to aid busi­
ness reconversion and in d u strial ex­
pansion.
MAHA b an k s h ad to tal deposits
of $379,375,732 on M arch 20, a
gain of $37,684,830 over th e
$341,690,902 rep o rted on A pril 13, 1944,
according to figures in response to a
b an k call by th e C om ptroller of C ur­
rency.
T otal loans w ere $46,544,511, an in ­
crease over A pril 13, 1944 ($39,869,438)
of $6,675,073.
D eposits w ere $7,493,910 less th a n on
D ecem ber 30, 1944, w hen th e figure w as
$386,869,642. L oans w ere $3,321,096
less th a n th e $49,865,601 D ecem ber 30
total.
The M arch 20 figures, by banks:

O

D eposits
Loans
Omaha N ation al ................ $141,503,215 $14,145,267
F irst N ational .................... 71,925,508
12,480,228
U . S. N a tio n a l........ 71,050,594
6,385,230
L ive Stock N a tio n a l.......... 55,838,671
8,257,589
Stockyards N a t io n a l.......... 21,030,420
2,511,376
Packers N ational .............
7,382,260
1,017,108
D ouglas County B a n k . .. .
5,486,400
654,570
N orth Side B a n k ....
3,637,495
232,047
South Omaha S a v in g s ....
1,521,169
629,046
T otals ................................. $379,375,732

$46,544,511

N ebraska bankers th in k th e GI Bill
of R ights h as th ro w n so m any safe­
g u ard s about th e re tu rn in g v eteran
seeking a loan th a t it is m aking it h ard
for him to get th e loan. The b an k ers
have m ade plans to tell the V eterans
A d m in istratio n th e ir views.
F ifty N ebraska b an k ers, including a
n u m b er from Omaha, m et in L incoln at
th e call of Sam W augh, Lincoln, ch a ir­
m an of th e GI Bill C om m ittee of the
N ebraska B an k ers A ssociation. T hey
req u ested m odification of th e re q u ire ­
m en ts for a v e te ra n ’s loan. One of th e
recom m endations w as a m ore flexible
in te rp re ta tio n of w h a t is a “reasonable

and norm al value of p ro p erty ,” in re ­
g ard to appraisals.
E dgar M cBride, Blue Hill, p resident
of th e association, and W illiam B.
H u ghes, Omaha, secretary, w ere chosen
to p resen t th e recom m endations to a
com m ittee of th e A m erican B an k ers’
A ssociation, w hich, in tu rn , w as to
p resen t th em to th e A m erican Legion,
and th e Legion w as to tak e th e m a tte r
up w ith th e V eteran s’ A dm inistration.
Am ong O m ahans at th e Lincoln
m eeting w ere D ale M atthew s, Jam es

Col. J. F ran cis M cD erm ott, on leave
from his duties as vice p resid en t of th e
F irs t N ational B ank of Omaha, ad­
dressed th e ann u al din n er of th e M en’s
class of th e F irs t P resb y terian church
of Omaha. H e is S eventh Service Com­
m and W ar Bond officer.
W alter V. R aynor, in th e securities
business since 1923 in Omaha, has
joined th e firm of Jo h n M. Douglas,
Omaha inv estm en t b ankers. He w as
originally w ith th e U nited States Na-

AT
YOUR
S E R VICE

The First N ational B ank
St. Joseph, Missouri
F . L . F o rd , P re s id e n t
G. E . P o rte r, V ic e -P re sid e n t
R. E . Jo n e s, J r ., V ic e -P re sid e n t a n d C ash ier
H . H. M ohler, A s s is ta n t V ic e -P re sid e n t
Jn o . J . W alsh , A s s is ta n t V ic e -P re sid e n t
W a lte r C a n te r, A s s is ta n t C ash ier
V. P . M e y e r, A s s is ta n t C ash ier

BANKS

Bought and Sold

L . A. W a lk e r, A s s is ta n t C ashier

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
40 Years Satisfactory Service

Member FDIC

THE CHARLES E. WALTERS CO.
OM AHA. N EB R A SK A

O UR 5 0 th YEA R


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

Northwestern Banker

May Ì9b5

60

N E B R A S K A
tional Com pany in charge of th e m u ­
nicipal bond d ep artm en t, and has been
active in th a t field ever since.
Ben F. D anbaum , fo rm er chief of de­
tectives in Omaha, has disposed of b u si­
ness in te re sts in Omaha, including th e
Om aha C urrency E xchange, an d has
m oved to Miami, Florida, w h ere he
expected to establish a beverage dis­
trib u tin g com pany.
T he C urrency E x change w as sold to
H enry A. H ovey, form erly connected

PUBLIC
NATIONAL
Bank
ancfTrust Ifo/npany
ofJfetífljork.
UlllllllIIIIII!l!l!llll!ilinilII!IIIIIIII!!lllllllllllllllllllllllllllll!llllllllillll

Northwestern Banker

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

May 19^5

NEWS

w ith th e Stock Yards N ational B ank of
Om aha and th e South Om aha Savings
B ank, w ho for th e last tw o y ears has
been presid en t of a b an k in San A n­
tonio, Texas. Mr. Hovey, son of F ord
E. Hovey, presid en t of th e Occidental
B uilding and L oan A ssociation of
Omaha, re tu rn e d recen tly from Texas.
Mr. H ovey is m oving th e C urrency E x ­
change from 305 South S ixteenth
S treet to 1414 F a rn a m Street.
Mr. and Mrs. A rthur L. Coad e n te r­
tained a t a tea in Omaha last m onth to
observe th e ir tw enty-fifth w edding an ­
niv ersary. Mr. Coad is president of
th e P ackers N ational B ank of Omaha.
T h eir daughter, Miss C atherine A nn
Coad, received w ith h er parents.

Six m em bers of th e new People’s
Pow er Com m ission in Omaha, ap­
pointed recently by M ayor Dan B utler
and confirm ed unanim ously by the
City Council, included:
C harles D. Saunders, vice president
of th e F irs t N ational B ank of Omaha,
fo rm er chairm an of th e D ow ntow n
R ation Board, tre a su re r of the Douglas
C ounty C hapter, N ational F oundation
for In fan tile P aralysis, and chairm an
of th e executive com m ittee of the
Om aha Cham ber of Commerce; Sam uel
L. Cooper, p resid en t-treasu rer of Or­
ch ard & W ilhelm ; D avid Goldman,
se c retary -treasu rer and m anager of
H erzb erg’s; J. M. H arding, in v est­
m ents; Clarence L. K irkland, general
m anager, Om aha In dustries, Inc.; C.
E. M etzger, firm m em ber of R oberts
B ro th ers & Rose L ivestock Commis­
sion Company.
Added to these w ere tw o m em bers
appointed by G overnor D w ight G ris­
wold of N ebraska: K arl C. Brow n,
Papillion, vice p resident of th e B ank­
ing H ouse of A. W. Clarke, and R oy
E. Bott, H ooper im plem ent dealer, Mr.
B ott succeeds E m il Wolf, N orth Bend

banker, and Mr. B row n succeeds Dr.
B. H. Baer, A shland.
H arry Coffee, presid en t of th e U nion
Stock Y ards Com pany of Omaha, an ­
nounced th a t th e board of directors de­
clared a q u a rte rly dividend of 75 cents
a share, payable last m onth on com­
m on stock of record M arch 21. The
com pany paid a to tal of $3.50 a share in
dividends du rin g 1944.

An A ssociated P ress W irephoto from
th e Navy, w hich appeared in the Oma­
ha W orld H erald, w as identified by
Mrs. A lv in E. Johnson of Om aha as
th a t of h e r son, Pfc. H ow ard M. Jo h n ­
son. Mrs. Johnson said several friends
called to tell h er th a t th ey also recog­
nized h er son in the picture. The
photo’s caption said th a t th e soldier
w as carrying a w ounded n ative child
to a first aid station for tre a tm e n t on
Okinawa. P riv ate Johnson, 21, m em ­
ber of an in fa n try division, w as
w ounded by sh rap n el in th e L eyte
cam paign. He w ent overseas last July.
His fath er is presid en t of th e Live
Stock N ational B ank of Omaha.

Beautify Bank
The A m erican N ational B ank of Sid­
ney, N ebraska, is doing a first class job
of decorating its b an king room. The
ceiling has been covered w ith an accoustical m aterial w hich m aterially re ­
duces noises and adds m uch in beauty
as well. The m etal grill w ork over th e
counter is being rem oved and fixtures
at the counter m odernized.
The en tire banking room is trim m ed
w ith Spanish m arble. A new addition
in th e w ay of a m arble shelf to m atch
is being extended th e en tire length of
th e b anking w indow s so th a t custom ­
ers m ay have a convenient shelf on
w hich to place th eir bundles and o th er
articles w hile being w aited on at th e
windows.

OUR 50th YEAR

61

N E B R A S K A

Lincoln
Locals

H E N ebraska legislatu re voted
dow n L ester H. A nderson’s am end­
m ent to LB 33, B abcock’s p ar check
bill by a vote of 15 to 25 and th e n o r­
dered th e m easu re from th e g eneral
file to en ro llm en t and review by a
voice vote w ith o u t fu rth e r con tro ­
versy. Some of th e sh a rp e st debate of
th e en tire session took place over th e
bill and th e resp onsibilities of th e
b a n k e rs and th e ir reasons for asking
th e rig h t to charge for cashing checks.
M em bers said th a t to com pel th e
ban k s to get along w ith o u t th is charge
w ould d rive m an y into th e federal
re se rv e system w h ere th e charge is
abso rb ed in th e system .

T

A loud crash and th e sh a tte rin g of
glass a ttra c te d m an y passers-by in
dow ntow n L incoln w hen a large dis­
play w indow on th e w est side of th e
C ontinental N ational B ank w as blow n
out by th e force of th e w ind.
“F o rtu n a te ly th e re w as no one going
by th e b an k on E lev en th stre e t at th e
m om ent th e w indow fell,” C. W . Battey, executive vice p resid en t of th e
bank, said, “and it w as also fo rtu n ate
th a t th e w indow did n o t fall inside as
it w ould probably have in ju re d em ­
ployes directly in line of th e w indow .”
One p asserb y w as n e a r th e p a th of
th e glass as it sh attered , b u t escaped
in ju ry .
The w indow w as n o t know n to have
been w eak, said B attey, and a p p a re n t­
ly th e w ind w as sufficiently stro n g to
dislodge it.
A lthough L incoln’s dow ntow n and
su b u rb an b an k s show su b stan tial in ­
creases in deposits as of M arch 20,
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
T IM ELO C K EXPERTS

NEWS

com pared to th e com parative call date,
A pril 13, 1944, th ey did not quite atta in
th e rem arkable show ing of D ecem ber
30, 1944. The to tal of all deposits on
M arch 20 w as $114,142,327.58. On De­
cem ber 30, th e am ount w as $116,100,630.32, an aggregate never before a t­
tain ed in th e h isto ry of L incoln b an k ­
ing.
B ank deposits in N ebraska since the
beginning of th e w ar have increased
137 per cent, for th e second largest rise
in th e nation, according to J. F. P eters,
state b anking director.
F lorida, w ith an increase of 151 per
cent from D ecem ber 31, 1941-June 30,
1944, leads th e states, he said. Oregon
stood th ird , w ith 136 per cent increase.
P e ters pointed out th e larg er states
gen erally rep o rted low er increases,
and cited New York, w ith a rise of 44
p er cent.

• ------------------------------------------------------------------------------------—

----------

as presid en t th e late B. C. M arquardt,
Avoca, who had been head of th e in ­
stitu tio n since 1912.

C ash ier Named C o unty C le rk
H orace W. T ravis, a ssistan t cashier
of th e F irs t N ational Bank, Ord, Ne­
braska, last m onth w as nam ed Valley
county clerk, to fill out th e unexpired
portion of th e te rm to w hich Ign.
Klima, Jr., w as elected, a little less
th an tw o years ago.
He w as to take office th e first of this
m onth.

Promote Three O ffice rs

A t a m eeting of th e directors of th e
F arm ers State Bank, held a t Plym outh,
N ebraska, recently, th e follow ing offi­
cers w ere elected: P resident, L u th e r
Bonham ; vice president, H. B. Je n ­
nings; vice president, George Apking;
cashier, Clarence H. Sixel; assistan t
cashier, E sth e r Lam m el. This is a
Straight Shooter
prom otion for George A pking, Clarence
O.
C. H inds, cashier, F irs t N ational Sixel and E sth e r Lam m el.
Bank, W eeping W ater, N ebraska, dem ­
o n strated his expertness as a stra ig h t
C . E. Samuelson
shooter last m onth w hen he killed th e
C.
E. Sam uelson, 80, form er state leg­
only wolf w hich lost its life du rin g th e
islator and a v eteran H ildreth, N ebras­
w olf h u n t east of Louisville.
ka, b an k er and m erchant, died recently
at his hom e after several m onths’ ill­
Hold Annual Election
ness.
F a rm e rs S tate B ank of Talm age, Ne­
In business th ere m ore th an 50 years,
braska, elected th e follow ing officers Mr. Sam uelson w as ow ner of the H il­
last m onth: Carrol Osborn, president;
d reth M ercantile Com pany and vice
B. M. Spencer, N ebraska City, vice p resid en t of th e State B ank of H il­
p resident; E rn e st F rerich s, director, to ­ dreth. He w as rep resen tativ e from
g eth er w ith th e others; and E. G. this d istrict in the legislature from
1912 to 1916.
Spencer, cashier. Mr. Osborn succeeds

Complete, state-wide corre­
spondent service is yours for
the asking at this bank in Ne­
braska's Capital City.

C o n t in e n t a l R a t i o n a l

B ank
°fLINCOLN
Member Federal Deposit Insurance Corporation

F. E. D A V E N P O R T & C O .
" * ' JÊ

OM AHA

OUR 50th YEAR

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

Northwestern Banker

Mai) 194-5

62

L ive S tock N ational B ank
OMAHA,

N E B R A S K A

In vites you to sen d y o u r
out - of - tow n item s
fo r cred it

C om plete co rre sp o n d e n t
b an k in g s e rv ic e

T R Y

U S

OFFICERS
ALVIN E. JOHNSON
P r e s id e n t

HENRY C. KARPF

R. H. KROEGER

V ice P r e s id e n t

V ic e

P r e s id e n t

PAUL HANSEN
V ice P r e s id e n t a n d

C a s h ie r

W. DEAN VOGEL

WADE R. MARTIN

V ice P r e s id e n t a n d T r u s t O fficer

V ic e

P r e s id e n t

H. H, ECHTERMEYER
V ic e P r e s id e n t

L. V. PULLIAM

C. G. PEARSON

A s s is ta n t C a s h ie r

A s s is ta n t

C a s h ie r

EARL R. CHERRY
A s s is ta n t C a s h ie r

W. WALLACE KEENAN
T ru s t O fficer

T h is B a n k Has N o A ffilia ted C om panies
M em b er o f F ederal R eserve S y stem and F ederal D eposit Insurance C orporation

Northwestern Banker

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

May 1945

O U R 5 0 th YEAR

63
m onth a 10 per cent dividend. This
p aym ent brings total dividends to 90
p er cent of th e certificates, and 95 per
cent of th e original deposit—50 per
cent being m ade available at th e tim e
th e tru s t w as established.

IO W A

N EW S
FR A N K W A R N ER
Secretary
Des Moines

R. R. B R U B A C H E R
President
Sioux City

A Postwar Plan
A building site has been p u rchased
and plans are being m ade for co n stru c­
tion of a new b an k b uilding for th e
U nion B ank and T ru st Com pany,
S traw b erry P oint, Iowa, w h en condi­
tions w ill allow new construction. F.
M oorm an & Com pany, M inneapolis,
M innesota, are m aking th e plans and
w ill have charge of construction.

Four Sons in Service
Of his sons in th e service, J. H.
B rekken, cashier of th e R andall State
Bank, R andall, Iowa, says, “T he w ar
d e p a rtm e n t w an ted m en to preserv e
L iberty. My four boys w an ted L ib erty
p reserv ed for A m erica for th e p resen t
and fu tu re and so th e y w en t overseas
to m eet th e aggressors. The m ost fo r­
tu n a te new s to th is w ritin g , is th a t
none of th em have been rep o rted cas­
ualties, although in dangerous spots at
tim es. W e hope th a t th e day is n o t far
d ista n t w hen th e y can re tu rn hom e to
relieve th e m anpow er shortage and
find tim e for m any o th er activities in
connection w ith banking, now being
om itted.”

M arshall C o u nty
Bankers M eet
A d in n er m eeting of th e M arshall
County B an k ers A ssociation w as held
at M elbourne, Iow a, last m onth. T his
m eeting w as called by H ugh McCleery,
presid en t of th e association, to m eet
w ith th e M arshall C ounty W ar F inance
com m ittee in reg ard to th e 7th W ar
Loan. G uests at th e m eeting besides
the M arshall C ounty W ar F inance
Com m ittee w ere M. W. Ellis, su p e rin ­
ten d e n t of banking; H. R. Jackson, dep­
u ty su p e rin te n d e n t of th e Iow a Des
Moines N ational B ank of Des Moines.
New officers elected a t th e m eeting
are: E. J. Paul, vice p resid en t of th e
F id elity Savings B ank at M arshall­
tow n, presid en t; C reston Ackley, assis­
ta n t cash ier of th e Com m ercial State
B ank of M arshalltow n, vice presid en t,
and B ertel L eth, cashier of th e ProO U R 5 0 th YEAR


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

Visits Banker

ducers Savings B ank of Green M oun­
tain, secretary-treasurer.

C ro ix de G uerre
S. Sgt. R obert A Gleeson, nephew of
A. G. Sam, presid en t of th e F irst N a­
tional Bank, Sioux City, Iowa, received
th e croix de g u erre from F ren ch Gen.
Koeltz a t a base som ew here in G er­
m any. Sgt. Gleeson is w ith th e N inth
A m erican arm y. A ccording to infor­
m ation received recently by relatives,
Sgt. Gleeson w as com m issioned as a
second lieutenant, and now is inside
G erm any.

Deputy Superintendent

Capt. F ra n k Jacobs, and wife and son
of Big Spring, Texas, last m onth made
a sh o rt v isit in th e hom es of Gust
Beeler, Lanesboro, and W alter Jacobs,
vice p resid en t of th e Lake City State
Bank, at Lake City, Iowa. Before en­
terin g the air force, Capt. Jacobs w as a
teller in th e Security N ational Bank,
Sioux City, Iowa.

Assistant C ash ier
E lm er G. K oehler is th e successor to
F ey F. M ieras, as a ssistan t cashier at
th e F irs t T ru st and Savings Bank,
Alta, Iowa. Mr. K oehler has recently
been discharged from th e arm ed forces
after h aving served his co u n try over­
seas. P revious to his en trance into th e
arm ed forces, Mr. K oehler w as associ­
ated w ith th e F irs t T ru st and Savings
Bank, A nthon, Iowa.

Opening Branch O ffice
M. O. Sagers, vice p resid en t of the
Jackson State Savings Bank, Maquoketa, Iowa, w ho has been at Rochester,
M innesota, recuperating, is now back
in M aquoketa and w ith in a few w eeks
w ill be atten d in g to his duties in th e
bank. Jo h n Jargo, cashier, is filling
his place at th e p resen t tim e. The
b ranch office, w hich opens th is m onth
in D elm ar, w ill be operated by Dewey
K uiken, w ho form erly operated th e
M aurice, Iowa, b ran ch out of Orange
City.

A p pointm ent has been m ade of H ugh
R. Jackson, v eteran exam iner, as Dep­
u ty S u p erin ten d en t of B anking for
Iowa, succeeding th e late R alph Bunce.
Mr. Jackson cam e to th e d ep artm en t
of b anking in 1924 and has been con­
tin u o usly w ith th e d ep artm en t since
then. He has long been th e dean of
th e staff of exam iners.
He w as born Septem ber 10, 1889,
and has served in various sections of
th e State, th u s becom ing w ell know n
to m any of th e bankers. In recent
y ears he has had his h ead q u arters in
Iow a City w here he has had charge of
th e exam ination of the banks in the
ea ste rn p a rt of the state.
In a letter from M elvin W. Ellis,
su p e rin ten d en t of banking, to the
N o r t h w e s t e r n B a n k e r in connection
w ith Mr. Jack so n ’s appointm ent, he
said, “He is m ost approachable, v ery
easy to like, su p er salesm an and
read ily pu ts over his ideas w ith o u t r e ­
so rtin g to th e au th o rity of his office.
“W hile w e are all going to miss
R alph Bunce trem endously, all will
learn th a t Jack is devoted to his ideals
of sound b an k supervision and w ill be
m ost cooperative w ith th e Iow a b an k ­
ers.”

The F irs t T ru st & U nion Savings
Bank, Sigourney, Iowa, opened an of­
fice last m onth at Keswick, Iowa, u n d er
th e office m anagem ent of M arion H.
B arnes, form erly a ssistan t cashier of
State B ank of W apello, W apello, Iowa.
Mr. B arnes has been m ade an assist­
a n t cashier of th e F irst T ru st & U nion
Savings Bank. The Sigourney b ank
also operates an office at K inross, Iowa.

Dividend Paid

President Convalescing

T rustees for the D epositor’s T ru st of
th e Palo Savings Bank, Palo, Iowa,
paid to holders of tru s t certificates last

J. F. Miller, a d irector in th e F arm ers
Savings Bank, Clerm ont, Iowa, since
th e b a n k ’s organization in 1913, and its

Rotary C lub President
M. A. A rneson, presid en t of th e Clear
Lake B ank and T ru st Company, Clear
Lake, Iowa, w as elected p resid en t of
th e Clear Lake R otary Club at the a n ­
nual m eeting last m onth. He is to take
office Ju ly 1, 1945.

Branch at Keswick

Northwestern Banker

May 1945

64

IO W A
p resid en t since 1927, has been seriously
ill since N ovem ber. He is convalescing
a t his hom e now. Mr. M iller is p ast 70

In

NEWS

years of age and has been a very active
m an in the com m unity th e last 35
years.

K A N S A S

C IT Y

S hortly after W orld W ar II w as de­
clared, Mr. M iller w as appointed ch air­
m an for th e bond drives in F ay ette
county and com pleted six of them suc­
cessfully. F ay ette county w as one of
the first to go over th e top in every
drive.
J. A. E rickson has been cashier of
the b an k since 1913.

Bank Changes Name
A nnouncem ent is m ade th a t th e
nam e of th e A ustinville Savings Bank,.
A ustinville, Iowa, has been changed to­
s ta te Savings B ank and th a t th e m ain
office w ill be located at A plington. A
b ran ch office w ill be m ain tain ed at
A ustinville.
The b a n k ’s officials rem ain th e same.
S. L. P atterson, president, w ill con­
tin u e in charge at A ustinville, w hile
W. J. Schw endem ann is cashier at Ap­
lington.

the B a n k fo r B a n k e rs
Is “Old 18 - 1”

There are no isolated banks among
Commerce correspondents. Our facili­
ties put each one in close touch with

R eady fo r More Business
The F irst N ational B ank of P erry ,
Iowa, recently started extensive re ­
m odeling of th e ir bank, in an ticip atio n
of expanding activity in the postw ar
period. The finished b ank w ill give
additional lobby space and te lle r’s
cages. The bookkeeping d ep artm en t
and safety deposit v au lt w ill be di­
rectly beneath th e m ain b anking room.
E n tran ce to th e b ank w ill be on the
ground or stre e t level, w ith a staircase
leading to th e m ain b anking room as
well as to th e safety deposits d ep art­
m ent.

the whole banking world.
There are no unfulfilled promises here.
The Commerce pledge of cooperation
means unstinted, whole-hearted co­
operation.
"Old 18-1" speaks your language and
cordially invites your business.

Double C a p ita l Stock
A t a special stockholders m eeting of
th e La P orte City State B ank of La
P orte City, Iowa, the capital stock w as
increased from $25,000 to $50,000. This
w as made by a 100 per cent stock divi­
dend tak en from th e su rplus fund.

(bin me rc e jr ust (b m p a n y
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
TIM E LO C K EXPERTS

M em ber Federal D ep o sit Insurance Corporation.

F. E. D A V E N P O R T & C O .
OM AHA

S carborough ^ C ompany
¿ 5 7 iJ iu h O M C V
First N ational Bank Building, Chicago

Northwestern Banker

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

May 19b5

H orace A. Smith, Iow a R epresentative
D es M oines, Iow a

O U R 5 0 th Y E A R

65

ALLEY
AYING
BANK
D E S

M O I N E S

Where thorough banking knowledge,
complete facilities and personal atten­
tion combine to furnish Iowa banks
the finest of correspondent service.

F red erick M. M orrison, P resid en t
W infield W. Scott, Vice P re sid e n t
J. E. A stley, C ashier
E d w ard P. K au tzk y , A ssistan t Vice P resid en t
Koy E. H uber, A ssistan t Vice P resid en t
F ra n k M. Thompson, A ssistan t Cashier
E ay Thompson, A ssistan t C ashier
Member Federal Deposit Insurance Corporation

O U R 5 0 ili Y E A R


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

Northwestern Banker

May 19^5

66

First G l Loan
F ran cis H. D arland, a ssistan t cashier
of th e F irs t N ational B ank of Mason
City, Iowa, has th e honor of having
com pleted th e first business loan u n d er
the G.I. Bill in th e state of Iowa, ac­
cording to a letter from th e V eterans
A dm inistration, St. Louis, M issouri.
Mr. D arland is in charge of th e P e r­
sonal L oan D epartm ent in the F irs t
N ational Bank.

Your Livestock Items
Many banks in the Sioux City area use the "First
in Sioux City" as their correspondent because it is
so well equipped to handle ALL their business.
For down-town transactions, this bank offers
prompt, dependable service. And since Sioux City
is also a great livestock market, we have perfected
our correspondent cooperation in that field, too.

Son Home on Leave
C orporal Jam es H. Koons, son of Mr.
and Mrs. V. D. Koons, recently spent
eight w eeks at hom e on furlough from
th e S outhw est Pacific. He has been
overseas for m ore th a n th ree y ears and
has now re tu rn e d to th a t area. His
fath er is p resid en t of th e F irs t State
Bank, B ritt, Iowa.
K enneth F. McNiel, C entral City, has
been em ployed at the F irs t State as
a ssistan t cashier.

You will find us experienced and capable, in the
livestock business. Try us—on your next market
transaction!

A. G. Sam , P resid en t
J. P . H a in er, V ice P resid en t
J. R. G raning, A ssistan t C ashier
F ritz F ritzson , V ice P res, and C ashier
E. A . Joh n son , A ssistan t C ashier
J. T . Grant, A ssistan t C ashier
W . F. C ook, A u d itor

On College Board
D.
O. Kime, presid en t of W estern
U nion College, Le Mars, Iowa, an ­
nounced the ap p ointm ent of C. L. E a st­
man, cashier of th e F irs t N ational
Bank, Le M ars, as a tru ste e of th e col­
lege to fill the u n expired term of the
late C. D. R oseberry.
T his gives th e F irs t N ational B ank
th e distinction of hav in g tw o of its
official fam ily rep resen ted on th e board
of tru stees of th e college. R. J. K oeh­
ler, presid en t of the bank, has served
th e college in the capacity of tru ste e
for several years. B oth Mr. K oehler
and Mr. E astm an w ill serve on th e
executive com m ittee.

Indianola Vice President

*

*

*

★

/ t l

S / O

U

X

C

/ f i f

Member FDIC-—Member Federal Reserve System

*

*

*

B.
R. L eitch of Indianola, Iowa, has
been elected to th e position of vice
p resid en t of th e Peoples T ru st and
Savings Bank, Indianola. Mr. L eitch
w as form erly w ith banks at H avelock
and C arpenter, Iowa, and of recent
years has been associated in field w ork

Mr. Banker:
D o you k n ow that recen tly , in this territory a lo n e, over 1 0 0 b an k s h ave su b scrib ed to the

D .A .S . A G R IC U L T U R A L D IG EST

/
N orthwestern Banker

May 19b5

T h ere is n o o th er a gricu ltu ral in fo r m a tio n service just lik e it.
F or sam p le relea ses and fu rth er in fo rm a tio n w rite to

You Should H a v e It!


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

Doane Agricultural Service, Inc.
B o x 3 0 2 , 2 0 5 P ly m o u t h B ld g .
O U R 5 0 th Y EA R

67

•
for F irs t T ru st Jo in t L and B ank of
Chicago. The p ast tw o y ears he has
been w ith th e F. S. A., w ith an office
in Indianola, w ith su pervision of W a r­
re n and M arion counties. Mr. L eitch ’s
new duties w ith th e b ank w ill be in
th e farm and personal loan division.

IO W A

NEWS

•

guest night. W. E arl Hall, editor of
th e Mason City Globe-Gazette, and edi­
to rial correspondent in the E uropean

T h eatre of O perations for tw o m onths
last faff, w as th e principal speaker.
T his w as som ething new for th e

G ift for Hospital
George J. Schaller, chairm an of th e
board of th e C itizens F irs t N ational
B ank, Storm Lake, Iowa, and form er
ch airm an of th e F ed eral R eserve B ank
Board of Chicago, has offered th e peo­
ple of B uena V ista county a gift of
$100,000 to obtain a county hospital.

“EV ERY TH IN G BUT TH E SQUEAL”
E fficiency is the k ey n o te in the m eat-packing in d ustry,

GEORGE J. SCHALLER
. . gives $100,000 for hospital

Mr. Schaffer’s offer provides th a t his
co n trib u tio n be used for eith er the p u r­
chase of a site and erection of a build­
ing or by purchase of existing grounds
and building. The hav en is to be
know n as th e “Schaffer M em orial Hosp ital,” in m em ory of Mr. Schaffer’s
p a re n ts and his fam ily.
Mr. Schaffer has stip u lated th a t th e
hospital m u st be com pleted by th e end
of 1946, e ith e r by constru ctio n or by
p u rch ase of existing facilities.

w h ere lite r a lly every part of the slau gh tered an im al “but
the sq u ea l” is u sed effe ctiv ely . T h e sp eed and efficiency
w ith w h ich liv e sto c k is u n lo a d e d , sold , slau gh tered ,
b u tch ered , co o led , and the final m eat and by-products
are tran sp orted to th eir d estin a tio n s, serves as an ex ­
am p le to m any other in d u stries. T h e returns from th ese
m eat b y-products, by offsettin g op eratin g costs, have
o ften en a b led the m eat p ack er to pay the farm er m ore
for h is liv e sto c k than he (th e p ack er) actu ally receiv ed
for the fresh m eat.
It is th is sam e efficiency, arisin g from years of sp ec ia l­
ized , fast, and frien d ly service to corresp on d en t banks
that ch aracterizes D ro v ers’ up-to-the-m inute b an k in g
service. Y ou r in q u iry is in v ited .

Sponsor Guest Night
R ecently th e F a rm e rs Savings B ank,
B eam an, Iowa, sponsored a public

A Few By-Products
M argarine
Fertilizers
Poultry Feed
Salad oil
Lard
Soap
Pharmaceuticals
Glue
Surgical sutures
Fatty acids (in
synthetic rubber)
Glycerine
Cooking oil
Cleansing powder
Gelatin
Glandular extract
Abrasives
Insulin

M em b e rs, F e d e ra l D e p o s it I n s u r a n c e C o r p o ra tio n

DROVERS NATIONAL DANN
DROVERS TRUST G- SAVINGS BANK
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

THE TOY NATIONAL BANK
TH E

B A N K E R S

B A N K

Southwest Corner of 4th and Nebraska Streets

In the
O U R 5 0 th YEAR


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

heart

of d o w n t o w n

Sioux

City

Northwestern Banker

May 1945

(“

•
bank in th e w ay of public relations,
but, from th e public’s reaction, th ey
feel sure th e y w ill sponsor a sim ilar
event, come an o th e r year.
A t th e an n u al m eeting last m onth
all directors w ere re-elected. The offi­

I O W A

NEWS

•

cial staff is: G. J. H u rlb u tt, president;
C. E. N ickerson, vice president, and T.
J. Neessen, cashier.
An 8 per cent dividend w as recently
declared and m ade payable.

When War Ends...
Times Change

Des Moines News
A. T. D onhow e, vice presid en t of
the C entral N ational B ank and T ru st
Company, last m onth purchased W.
R. S h u rtz ’ in te re st in th e City State
Bank, Ogden, Iowa. Mr. Donhowe has
been associated w ith the C entral N a­
tional B ank and T ru st for m ore th a n 20
years. He succeeded Mr. S hurtz as
presid en t of th e City S tate B ank last
m onth. Mr. Donhowe states th a t he
w ill not become active in th e ro u tin e
affairs of th e bank, and th a t th ere is
no change of personnel contem plated
at th is tim e.
Mr. and Mrs. B. F. Kauffm an have
re tu rn e d from th e ir w in ter hom e in
E ustis, Florida. Mr. K auffm an is p resi­
dent of th e B ankers T ru st Company.

HE GREAT MIDDLE WEST has contributed
much toward the building of our mighty war
machine. And when the time comes, it will
take a leading part in rebuilding for peace.

T

The low a-D es M oines N ational Bank
and Trust has on display in its' lobby
a captured w eapon of w ar aw arded for
sales of w ar bonds du rin g th e 6th loan
drive. It is an Italian carbine 6.5 mm,
model M-91 w ith a folding bayonet and
w as taken in th e cam paign against the
G erm ans in Italy.

As a business-minded bank, interested in a sound
prosperity, we shall keep abreast of changing times
and conditions.

New additions to the staff of
Iow a State B ank as announced
P resid en t G. A. Fram pton are as
lows: Mrs. Mary H edlund, L ois

This means that our correspondent banks will find
us prepared to assist them in meeting their changing
requirements during the reconversion period.

the
by
fol­

M.
Frazier, Mrs. Charlotte AViley, Mrs.
K athryn Green, Mary M artha Hanson
and B etty Brow n. T he bank reached

In other words, they can depend on us for out-of-theordinary attention to out-of-the-ordinary problems.

the $4,000,000 m ark in deposits for the
first tim e last m onth in tim e to cele­
brate the b a n k ’s fo u rth birthday.

SI NCE

C EC U Rm /

19 19

VJToF Sioux c its J t
M em ber F ed eral D ep o sit Insurance C orporation

P la n to u se an a d v e r t is in g p r o g ra m o f
w e ll
w orded
m e ssa g es
c r e a te d
by
W e s s lin g S e r v ic e s , D e s M o in e s , I o w a

lAJeóóiincf S e r v ic e ó
C

o

u

n
D

s

s

l

o n

B

a

n

k

P

u

b

l

i

c

R

e

l

a

t

i

o

n

s

Hawkeye Mutual Hail
Insurance Association
< a r \e r B id s.

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

Fort D o d g e, Iow a

liifj o in e i 9 , J lo w a

Northwestern Banker

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

May 19^5

O U R 5 0 th YEAR

69

*
Com m issioned recen tly as an ensign
in th e U. S. N avy a t a base in T exas
w as Jim H ubbell, Jr., son of Aice
P resid en t J. W. H ubbell of th e B an k ­
ers T rust.
An u n u su ally effective display in
connection w ith w ar bond sales is the
g ian t poster in th e V alley S avings
Bank. C hanging lights on a stop sign
flash red, yellow and green, calling
a tte n tio n to a natio n al plea to stop
cashing w ar bonds and go ahead and
buy more.

Through 4 wars and many
panics and depressions

IO W A

NEWS

*

Replacements
A m eeting of the board of directors of
the B enton C ounty State B ank at
B lairstow n, Iowa, w as held recently
and Leo Kelly w as elected as director
to fill th e vacancy caused by the death
of R. M. Sayers. George W olf w as
elected to com plete the unfinished term
as president of th e bank.

A Few Changes
E arl S trait of G arrison, form er m an ­
ager of the G arrison b ranch bank of
th e State B ank of Vinton, Iowa, has
accepted th e position as m anager of
th e L am ont office, F arm ers State Sav­
ings Bank. C. L. F iester, F arm ers
State Savings Bank, Independence, has
been acting m anager again th is year
since V ictor W h ite’s resignation, the
first p a rt of F ebruary.

Banks Sold or Bought!
quietly, quickly and in a personal manner

J A Y A. WELCH
BANK BROKER
IiudiLin. kan?a?
'"36 Years Practical B a n kin g E xperience”

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

O ldest In Des M oines
111 6th Ave.

BROTHERS

o ffice o u t f it t e r s ^

^ T T ^ ^

G rand Av e . at Fourth

doors

and

10:30-11 a . m , S u n d a y s

96

d e p o sit b o x e s a n d o n e m o n e y s a fe .
L ouis F. Spiker
P h on e 100

have weathered the storm. Today,
as in past years, we will continue to
successfully serve Iowa business
men to the best of our ability.

M ESTABLISHED
S T A T IO N E R S V
1889 S

SALE— T w o v a u lt

H U B E R T E. JA M E S
A sst. Sec.

FOR VOUR ENJOYMENT . . .
Listen to the
“WORLD OF MUSIC”
K R N T , 1350 KC

FOR

Dial 4-7119

E L M E R E. M IL L E R
P r es, and S ec.

G rant, I o w a

I am av a ila b le fo r p o sitio n as ca sh ie r
o r a s s is ta n t w ith tw e n ty -se v e n y e a rs of
c o u n try b an k ex p erien ce. C o u n try b ank
p re fe rre d . W rite C. E. O. c /o N o rth ­
w e ste rn B an k e r, 527 7th St., D es M oines,
Iow a.
FO R S A L E — F o u r y e a r old B u rro u g h s
C e n tra l P ro o f M achine S ty le, 41050 No.
A386825 an d sta n d . W rite D.C.L., c /o
N o rth w e ste rn B an k er, 527 7th St., Des
M oines, Iow a.

>

BOOK BINDERS
MACHINES

b u sin ess

De s M o in e s , Ia .

Index To 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 l l y n , A. C., a n d C o m p a n y ............................
A m e r i c a n E x p r e s s C o m p a n y .........................
A m erican N atio n al B an k and
T r u s t C o m p a n y ..................................................

41
34
46

71
29

C
C e n t r a l H a n o v e r B a n k a n d T r u s t C o . . . 43
C en tra l N ational B an k an d T ru st
C o m p a n y , D e s M o i n e s .............................. 12-1 3
C h a s e N a t i o n a l B a n k .....................................
4
C ity 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 , C h i c a g o ..................................................... 40
C o m m e r c e T r u s t C o m p a n y ......................... 64
C on tin en tal B an k and T ru st Com pany,
N e w Y o r k ............................................................... 47
C o n t i n e n t a l N a t i o n a l B a n k , L i n c o l n . . . 61
C r a d d i c k S e r v i c e .................................................. 49

I)
D a v e n p o r t , F . E . , a n d C o m p a n y .......... 61-6 4
D e L u x e C h e c k P r i n t e r s , I n c ................... 49
D es M o in es B u ild in g - L o a n &
S a v i n g s A s s o c i a t i o n ...................................... 69
D o a n e A g r i c u l t u r a l S e r v i c e s , I n c ......... 66
D r o v e r s N a t i o n a l B a n k ................................ 67
F a r m e r s M u t u a l H a i l I n s u r a n a c e C o . . . 41
F i n a n c i a l D e v e l o p m e n t C o m p a n y ....... 36
F i r s t N a t i o n a l B a n k , C h i c a g o ........................ 55
F i r s t N a t i o n a l B a n k , M i n n e a p o l i s .............. 44
F i r s t N a t i o n a l B a n k , O m a h a .......................... 60
F i r s t N a t i o n a l B a n k , S t. J o s e p h ................... 59

N orthwestern Banker

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

May 1945

G
G u a r a n t y T r u s t C o m p a n y ................................. 48

28

It

B a n k e rs T ru s t C om pany, Des M o in es..
B a n k e rs T ru st C om pany; N ew Y ork. . . .

F i r s t N a t i o n a l B a n k , S t. L o u i s .................... 37
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 ............... 6 6
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 .................. 32

H a m m e r m i l l P a p e r C o m p a n y ..................26 -27
H a w k e y e M u t u a l H a i l I n s u r a n c e A s s n . 68
H o m e I n s u r a n c e C o m p a n y ............................
5
H o r n b l o w e r &■ W e e k s ........................................ 36

I
I n v e s t o r s S y n d i c a t e ............................................. 37
lo w a - D e s M oines 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 ................................................ 72
J

K och B ro th e rs

49

K
69

L a M o n t e , G e o r g e a n d S o n .................................
3
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 .................... 69
L i v e S t o c k N a t i o n a l B a n k , C h i c a g o . . . . 23
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 .......... 62
L i v e S t o c k N a t i o n a l B a n k , S i o u x C i t y . . 50

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 a tio n al B an k a n d T r u s t
C o m p a n y , N e w Y o r k ......................................

21

31
42
42
2
35
48
30

8
60

K

H e m e r , M i t c h e l l & R e i t z e k , I n c ................. 34
R o y a l B a n k o f C a n a d a ...................................... 52
R u s s e l l C o u n t y B u i l d i n g & L o a n A s s n . . 35

S'
S t. L o u i s T e r m i n a l W a r e h o u s e C o ..........
St. P a u l T e r m i n a l W a r e h o u s e C o ............
S c a r b o r o u g h a n d C o m p a n y ............ 3 0 - 4 1 - 6 4
S e c u r i t y N a t i o n a l B a n k ...................................
S q u a r e D e a l I n s u r a n c e C o m p a n y ...............
S to ck Y a rd s N a tio n a l B an k , O m a h a . . . .

25
6
68
41
56

T

T e n s i o n E n v e l o p e C o r p o r a t i o n .................... 53
T h o m s o n & M c K i n n o n ........................................ 34
T o d d C o m p a n y ....................................................... 40
T o y N a t i o n a l B a n k ................................................ 67

l

M
M a n u f a c t u r e r s T r u s t C o m p a n y ..................
M ercan tile C om m erce B a n k and
T r u s t C o m p a n y ..................................................
M erch a n ts M u tu al B o n d in g C o m p a n y ..
M e r c h a n t s N a t i o n a l B a n k .................................
M errill L y n c h , P ierce, F e n n e r
& B e a n e ....................................................................
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 ..........

O

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

H

Jam ieson and C om pany

N
52
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 ................................. 53

U nited S tates N a tio n al B ank, O m a h a ..

58

V
V a l l e y S a v i n g s B a n k .................................

65

w

W a l t e r s , C h a r l e s E .....................................
W e l c h , J a y A ...................... .............................
W e s s l i n g S e r v i c e s ......................................
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 Co.

59
69
68

38

O U R 5 0 th Y E A R

70

I n t h e D IR E C T O R S ' R o o m

Has It in M ind

In B Sharp

Adeline: W hen is F lorence th in k in g
of g ettin g m arried?
L orraine: W hen is n ’t she?

“I love you—ouch!”
“I love you—ouch!”
And th ere you have th e song of tw o
porcupines necking.

A fraid
The S 1/c says th e first day out
you ’re afraid y o u ’re going to die; th e
second day, y o u ’re afraid you w on’t.

Different K in d
“H e re ’s a sto ry about Apollo chasing
a n y m p h and she tu rn e d into a tre e .”
“Lucky, th a t Greek. Most gals I
chase tu rn into a re s ta u ra n t.”

E v e rybody Else
1st: It isn ’t m y fa u lt I go into debt.
2nd: Yeah, I know —it’s all ow ing
to oth er people.

Situation W anted
“T he m an w ho m arries m y d au g h ter
will need a lot of m oney.”
“T hen I ’m th e m an.”

Paid in Full
A m erch an t h eard th a t the natives of
an island in th e South Seas had m ore
gold th a n th ey knew w h a t to do w ith,
so he decided to help th em out. He
sailed to th e ir island w ith a boatload
of onions. T he natives had never
tasted onions, and w ere delighted w ith
them ; th ey exchanged a shipload of
gold for th e onions.
The m erc h a n t’s business rival w as
enraged w hen he h eard of this, b ut
decided th a t if th e natives liked onions
th e y w ould su rely like garlic. He
th erefore took them a shipload of g ar­
lic, and, tru e enough, th ey w ere de­
lighted.
W hen he asked for gold in re tu rn ,
th ey told him th ey w ouldn’t th in k of
giving him an y th in g so common, and
insisted upon tu rn in g over to him th e ir
m ost prized possession—th e shipload
of onions!

“W h at happ en s w h en one m ind re a d ­
er has a date w ith an o th e r m ind re a d ­
er?”
“Oh, th e y ju s t sit aro u n d and blush
all evening.”

Located
“W here is the m an w ho doesn’t like
to see sm iling, cheerful faces around
him w hen th in g s go w rong?” asks a
w riter. You’ll find him on any golf
course.

On Its Way
Wife: J u s t th in k , th is chair goes
back to Louis XV.
H usband: Good—and th e sooner th e
better.

Thaw ed
Too Long Ago

Feverish Evening

Small B ut Often
L etter from G. I. arm y boy a t cam p:
“D ear Dad, le t’s h ear from you m ore
often, even if it’s only five or ten dol­
lars.”

A group of eighth grade girls
discussing th e ir autobiographies
w ritte n for a school assignm ent.
13, protested: “I don’t see how
w rite one. I don’t rem em ber a
about m y childhood.”

w ere
to be
One,
I can
th in g

Two g overnm ent w orkers un u su ally
fond of relax atio n w ere surp rised to
find them selves dism issed from th e ir
jobs.
“I th o u g h t we w ere frozen on th is
job,” grum bled one to th e o th er as th ey
re lu ctan tly w alked tow ard th e gate.
“W ell, w e’re defrosted now ,” replied
th e o ther gloomily.

Making It Easier
N ight fell and th e tw o tra m p s began
to look aro u n d for a place to lay th e ir
heads.
“W h at y e r going to use as a pillow ?”
asked W illie.
“T his b it of d rain pipe,” said Tim.
“D rain pipe?” echoed his com panion.
“W on’t th a t be a b it h a rd ? ”
“Course not,” said Tim. “I ’m going
to stuff it w ith som e stra w .”

N ot Quite
Jones: I h e a r you boys in the A rm y
get up b rig h t and early.
Sm ith: No—ju st early.

Something Is A d d e d
George Shelton, bragging about his
skill on ice on CBS “I t Pays to be
Ig n o ran t,” announced: “I do a figureeight th e h a rd w ay—tw o fours.”

W ondering

A n d Years

L ittle Girl: M um m y, com ing hom e
from school I w alked th ro u g h th e cem ­
etery and read all th e w ords on th e
tom bstones and w h a t I w a n t to know
is, w h ere do th e y b u ry all th e sinners?

Lips th a t touch w ine shall n ever
touch m ine, declared th e co-ed. And
afte r she w as g rad u ated she ta u g h t
school for y ears and y ears and y ears
and years.

Northwestern Banker

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

May 19^5

O U R 5 0 th YEA R

"Hr safe-keeping, can't we p u t
our bonds in some place where we
could g e t a t them more easily?"
"Let's use the Bankers Trust at
VesMoines. A good many iow a bankers
find the Bankers Trust safe-keeping
service is m ost convenient"

T h at’s the righ t an­
sw er! In safe-keeping
of securities — or

in

any of the other im­
portant ways in which
a Des Moines corre­
spondent can give val­
uable service to your
bank— we welcome an
opportunity

to

be

helpful.

B A N KER S T R U S T
r COMPANY It"? DESMOINES


https://fraser.stlouisfed.org
MEMBER
FEDERAL
INSURANCE CORPORATION
Federal
Reserve
Bank DEPOSIT
of St. Louis

WAR
BONDS
STAMPS

Our Help Is N eeded To Put Iowa
"O VER THE TOP" A fz m

N A T IO N A L

QUOTA:

14 billion dollars. Individual
quota, the largest to date, is
7 billions of which 4 billions
are in E bonds.

IO W A

QUOTA:

$189,000,000. Q uota for indi­
viduals in Iowa is $135,000,000
of which $82,000,000 a re in E
Bonds.
★

Buying W ar Bonds . . . the
best investm ent in the world
. . . is saving the patriotic w ay.
As Bankers it is our oppor­
tunity an d our responsibility
to do everything we possibly
can to encourage this form of
thrift . . . so im portant to the
present a n d the future w el­
fare of the United States of
America.


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

MAY 14 • JUNE 30 • 1945