Full text of The Northwestern Banker : May 1946, 51st Year, No. 706

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M AY, 1946

How a Minnesota Bank
Helped Its Dairy
Farmers-Page 21

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Federal Reserve Bank of St. Louis

Uni

Graduate School of Banking Faculty Members Confer— See Page 32

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THEMEBCHMTSMTIOML BMR
CEDAR RAPIDS, IOWA
Member Federal Deposit Insurance Corporation

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

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Federal Reserve Bank of St. Louis

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1871 GeorS*
facture

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'To our V fa
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LA MONTE
GEORGE LA MONTE & SON

PAPER
N UTLEY, N EW JERSEY

IliilBIpii«:
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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1946

C o n t in e n t a l I l l in o is
N a t io n a l B a n k a n d T r u st C o m pa n y
of

C h ic a g o

C O M M E R C IA L B A N K IN G
C O R P O R A T E A N D PE R SO N A L T R U S T SERVICES
FO R E IG N B A N K IN G FACILITIES
U N IT E D STATES G O V E R N M E N T A N D
M U N IC IP A L SECU RITIES
S A V IN G S D E P A R T M E N T

M E M B E R

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

FEDERAI.

DEPOSIT

IN S U R A N C E

C O RPO RA TIO N

JEEPS
to South America
T h e se J eep s, on

their way to

Colombia, are the first large com
mercial shipment to be made since
the end o f the war.

Central Hanover’s Foreign Department brought the South American distributor and
American manufacturer together— and Central Hanover’s Letter o f Credit financed
the shipment.

W hether your interest is in exports or imports, you will find at this Bank every facility
for handling your foreign trade transactions

in any part of the ivorld.

W e welcome inquiries about your specific problems in the foreign field.

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Federal Reserve Bank of St. Louis

CEN TR AL H AN O VER
BANK AND TRUST COMPANY
NEW YORK
London Branch . . . 7, Princes Street, E. C. 2

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, May, 1946

OMES like this represent the real

Urging policyholders to keep pace with

ization of yesterday’s dreams . . .

value, alert Home producers today are

dreams that materialized as the result of

recommending new property appraisals,

thought, saving, and hard work . . . the

with new insurance adjustments wher

fulfillment of years of careful planning.

ever necessary, reflecting the sound judg

Part of the dream was protecting the
home . . . but the owner may find that
the fire insurance and other property
coverages he carefully planned are in
adequate today . . . that soaring replace
ment values would prevent rebuilding

ment and experience of The Home —
America’s leading insurance protector
of American Homes and the Homes of
American Industry.

☆ THE HOME☆

anything like his present home at its
original cost.

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Federal Reserve Bank of St. Louis

NEW
FIRE

YORK

AUTOMOBILE

MARINE

MANUFACTURERS

DIRECTORS

TRUST

E D W IN M . ALLEN
Chairman, Mathieson
A lkali W orks, Inc.

COMPANY

E D W IN J. BEINECKE

CondensedStatementofConditionasatcloseofbusiness

Chairman, T he Sperry &
Hutchinson Co.
E D G AR S. BLO OM

March 31, 1946

President, A tlantic, Gu//* arc*/
Indies Steamship Lines
A L V IN G. BRU SH
Chairman, Am erican Home
Products Corporation

RESOURCES

LOU R . CRA N D ALL
President, G eorge A .
Fuller Com pany

Cash and Due from Banks
$ 366,135,931.04
1,417,231,943.04
U. S. Government Securities .
U. S. Government Insured F. H. A.
M o r t g a g e s ......................................
4,117,598.72
State and Municipal Bonds
29,229,124.12
Stock of Federal Reserve Bank
2,475,000.00
Other S e c u r i t i e s ...............................
22,137,946.81
Loans, Bills Purchased and Bankers’
A cce p ta n ce s......................................
527,435,424.21
M o r t g a g e s ............................................
7,743,719.52
Banking H o u s e s ...............................
11,381,530.67
Other Real Estate Equities
324,003.73
Customers’ Liability for Acceptances.
6,840,417.05
Accrued Interest and Other Resources
6,380.908.53

CH ARLES A . D A N A
President, Spicer
M anufacturing Corp.
H O R A C E C . F LANIG AN
Vice-President
JOH N M . FRAN KLIN
President, United States
Lines Com pany
CHARLES FROEB
Chairman, Lincoln
Savings Bank
P A O LIN O G ERLl
President,
La France Industries, Inc.
H A R V E Y D . G IBSON
President
JOH N L. JOH NSTO N
President, Lambert Company

$2,401,433,547.44

O S W A L D L. JOH NSTO N
Simpson Thacher &
Bartlett

LIARILITIES

CHARLES L. JONES
The Charles L. Jones Com pany

Capital . . . .
Surplus . . . .
Undivided Profits .

SAM UEL M cR O B E R T S

JOHN T . M A D D EN
President, Emigrant
Industrial Savings Bank

$41,250,000.00
41,250,000.00
31,893,451.33 $

Reserve for Contingencies
Reserves for Taxes,
Unearned Discount, Interest, etc. .
Dividend Payable April 1, 1946
Outstanding Acceptances . . . .
Liability as Endorser on Acceptances
and Foreign B i l l s .........................
D e p o s i t s ............................................

JOH N P . M A G U IRE
President, John P .
M aguire & Co., Inc.
C. R. PALM ER
President, Cluett
Peabody & Co., Inc.
G EO RG E J. P A T T E R SO N
President, Scranton &
L ehigh Coal Co.
H A RO LD C. RIC H A R D
New York City

114,393,451.33
9,623,899.91
7,935,840.10
1,237,498.20
7,946,118.50

673,517.90
2,259,623,221.50
$2,401,433,547.44

H A RO LD V . SM ITH
President, Hom e
Insurance Co.

United Slates Government securities carried at $456,840,260.93 are

lodged to

secure U. S. Government War Loan Deposits o f $427,751,906.02 and other public

ERN EST STAUFFEN

funds and trust deposits, and f o r other purposes as required or perm itted by law.

Chairman, Trust Committee
G U Y W . VAU G H AN
President, Curtiss- W righ t
Corporation

Principal Office: 55 Broad Street, New York City

H E N RY C . V O N ELM
Vice-Chairman o f the Boai /

« »

RANKING

OFFICES

GREATER

NEW

Y O R K

ALBERT N. W ILLIAM S

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Federal Reserve Bank of St. Louis

E u r o p e a n R e p r e s e n t a t iv e O ffic e : 1 , C o r n h ill, L o n d o n , E . C . 3

Chairman, Western Union
Telegraph Company

Member Federal Reserve System
Member N ew York Clearing House Association
Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1946

H igh-Speed 2 4 -H o u r Service
This means day and night performance to serve our cor
respondents
payable.

better

presenting

their

items

wherever

Bankers Trust Company invites inquiry from

correspondent banks with a view to securing full benefit
of mail and express schedules, both rail and air, and
expediting the handling of transit items forwarded to us.

Ba n k e r s T r u st Co m p a n y
NEW
MEMBER

FEDERAL

DEPOSIT

YORK
INSURANCE

CORPORATION

A Partial List of Bankers Trust Company Services to Banks
Collection o f Par and Non-Par
Checks

Servicing Loans to Brokers and
Dealers

Collection o f Notes, Drafts,
Coupons, Matured Bonds and
Other Items (Domestic and
Foreign)

Investment Information

Transfer o f Funds, Remittances
and Domestic Money Orders
Credit Information
Commercial Paper Purchases
Dealers in United States Govern
ment, State and Municipal
Securities
Participation with Correspondent
Banks in Loans to Local
Enterprises

Nort hwest ern Banker, May, 7946

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Federal Reserve Bank of St. Louis

Receipt and Delivery o f Securities
Commercial and Travelers Letters
o f Credit
Safekeeping o f Securities
Consultation on Pension and
Profit-Sharing Plans
Co-Paying or Exchange Agent,
Co-Transfer Agent or
Registrar, and Co-Depositary
Trust and Reserve Accounts
International Trade and Foreign
Banking Facilities

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Federal Reserve Bank of St. Louis

TO BANKS
WITHOUT A FOREIGN DEPARTMENT

LETTERS

C r e d it —

both domestic and foreign— are

increasingly used as a financing method by business
today— whether as buyer or seller. There are definite,
practical reasons for this trend— time saved, flexibility
permitting quick decisions in concluding a deal, and
reduced time involved in credit investigation.
Y ou do not need a foreign department to participate
in this trend. You provide the judgement o f credit and
knowledge o f the character and standing o f the borrower;
we provide the mechanics o f issuing the Letter o f Credit.
Your customer benefits, and both your institution and
ours are adequately compensated.
W rite us about Letters o f Credit and we will explain
how we can 'get together” on handling such transactions.

THE P H IL A D E L P H IA
NATIONAL BANK
PHILADELPHIA
M E M B E R

F E D E R A L

PA.

D E P O S I T

★

O R G A N IZE D

I N S U R A N C E

1803

C O R P O R A T I O N

Northwestern Banker, May, 1946

W here There Is an Inventory

'There

Is a Potential Loan

And when secured by our W arehouse Receipts covering that inventory, stored
at the owner's own location, a sound and profitable loan will have been
created. . . .

Inventories are the basic assets of manufacturers, processors, producers and
dealers. . . .

Our Field W arehousing facilities place inventories in banking collateral form
and enable banks to extend larger loan accommodations to deserving cus
tomers and to others whose business they would like to have. . . .

Our W arehouse Receipts will solve the problems confronting bankers in meet
ing the financing needs of m any customers, or others, who maintain inventories
on hand. . . .

Every degree of safety surrounds our W arehouse Receipts. W e are specialists
in Field W arehousing . . . our experience is long . . . our responsibility
recognized. . . .

W e invite bankers to request our counsel whenever they are interested in
lending against inventories— without any obligation or cost on their part.

§s>t. $aul

terminal OTareJouöe Co.
ST. PAUL, MINN.

I O W A O FFIC E
515 Iowa-Des Moines National Bank Building
DES M O IN E S
T E L E P H O N E 2-1208
T. C. C A N N O N , D IST R IC T M A N A G E R

OTHER

OFFIC ES

M IN N E A P O L IS
M IL W A U K E E
IN D IA N A P O L IS
D E T R O IT
C H ICA G O
N E W Y O R K B O ST O N P H IL A D E L P H IA
P IT T SB U R G H
SYR A C U SE
M E M P H IS
A T L A N T A C H A R L O T T E A L B A N Y , GA.
JA C K S O N V IL L E

"The only company engaged in Field Warehousing with an office in Iowa”

Hort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

* This message is addressed to thoughtful
bankers and their architects. Each of you is
familiar with Herring-Hall-Marvin’s century of
leadership in metalcraft engineering. But today
we come to you with entirely new standards of
bank protection —

a new conception of archi

tectural beauty —

conveniences that are years

ahead —

with inbuilt standards of trouble-free

service never previously achieved. Many of these
improvements, now obtainable, are too far ad
vanced to publicize! W e’d prefer to tell you about
them.

Consult your local

Herring-Hall-Marvin

office — or write, wire, phone us direct.

HERRING-HALL-MARVIN SAFE CO
L
M anufacturers of Bank Vault Equipment • Bank Counters - Tellers' Buses and
Lockers - Safe Deposit Boxes • Night Depositories • Bank and Office Safes

BUILDERS

OF THE UNITED STATES SILVER STORAGE VAULTS AT WEST POINT

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Federal Reserve Bank of St. Louis

General Offices

HAMILTON,

OHIO

„
BRANCH OFFICES
In New York, Chicago, Boston, Washington,
St. Louis, Atlanta, Houston, Philadelphia,
Los Angeles, Detroit, Pittsburgh
OTHER

A G EN C IES

A LL

OVER

TH E

W ORLD

Nort hwest ern Banker, May, 1946

TOWARD SOUND
PORTFOLIO MANAGEMENT

The years ahead are likely to he difficult ones
in hank portfolio management. Never has there
been greater need for sound basic investment policy.
T o hanks interested in receiving outside counsel as
/

a check on their own investment judgm ent, we offer

—a portfolio review and conclusions in line
with what we believe to represent sound
policy in investing bank funds.
W e invite you to avail yourself o f this service.

” Bank Investm ent Portfolio M anagem ent Under
Current Conditions,” is the title of a helpful book
let recently published by the Irving. W e shall he
glad to send you one or more copies upon request.

Nort hwest ern Banker, May. 1946

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Federal Reserve Bank of St. Louis

í 'í i r

Way Williams, an associate in Iowa Loan &
Trust, and A. E. Cass.
‘ ‘ Grace and I very much enjoyed the let
ters of Evelyn and Emerson De Puy— both
very interesting and informative. Grace says
Evelyn looks so much like her grandmother,
but I think she more resembles her parents.
Anyway, she is mighty sweet looking and I
bet you are proud o f her. ’ ’
Leo Stevens, Reconstruction
Finance Corporation, 523
West 6th St., Los Angeles
14, Calif.

"A Shy Beggar”

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub
ject will be gladly published in this
column.

"Few Banks Have Done More"
‘ ‘ My attention has been called to the ar
ticle entitled "B a n k Service-— Heart of Your
Community” which appears in the April,
1946, edition of your splendid publication,
the N orthw estern B an k e r .
“ As president of our Chamber of Com
merce let me thank you for this courtesy
you have extended the Beresford community
by giving us this publicity. Incidentally,
the First National Bank of Beresford, South
Dakota, and its vice president, Arthur P.
Olson, have certainly earned the compliments
you gave them. Few banks or for that mat
ter any other institution have done more than
ours has to help build a community.”
I. A. Nichols, President,
Beresford Chamber o f Com
merce, Beresford, South Da
kota.

‘ ‘ Keep an eye on dear Winston Churchill.
He is spreading it on pretty thick. He wants
something. He is quite a shy beggar. In
olden days when our country was blessed
with patriots instead o f politicians, they
dumped the tea in the ocean and stood for
rights and independence. Now they fete
the same John Bull when he comes over with
the sole intention of legally depriving us of
a few billion $! ! !
‘ ‘ Call on the ghosts of a few patriots
and kick that whole royalty outfit of England

and sundry other foreign countries into the
ocean. In that way we would protect our
people, preserve our independence and up
hold our dignity.
He would never have
amounted to a hill of beans had we not come
out from amongst them decades ago and
remained separate. D on’t let the foreign
wolves in sheep’ s clothing fool you.”
Dr. F. C. Lunger, President,
Soldier Valley Savings Bank,
Soldier, Iowa.

"Counteract Lending Agencies"
‘ ‘ Thanks for your interest in what we
have been doing out here to stimulate loans
for small business, as shown in your ‘ Across
the Desk’ letter to me in the N orthwestern
B an k er of March, 1946.
‘ ‘ You may be interested in a few cold
facts showing what Bank of America has
been doing in a practical way to counteract
the ‘ lure of the siren call’ o f the political
lending agency.
‘ ‘ At the height of war production activity,
regional offices for the Smaller War Plants

(Turn to page 82, please)

tJ. S. N a tiu n a l’s 2 .1 Y e a r Club

"Outstanding in Appearance"
‘ ‘ Your new styling in the N orthwestern
B an ker , plus the return o f the fine coated
paper made your April issue outstanding in
appearance and readability.
‘ ‘ The treatment of the article by Ken
Wells was, I thought, excellent both as to
physical appearance and as to editorial dis
cernment in picking for sub-captions the
two parts of the article that would be of
particular interest to your readers and would,
therefore, intrigue them to read the ar
ticle. ’ ’
Robert Lindquist, Assistant
Vice President, American
National Bank and Trust
Co., Chicago, III.

"I Wonder About Them"
‘ ‘ I could not find anything in the March
issue of the N orthw estern B an k er to
throw any light on the old timers per your
letter of February 12th. By the way, why
were you working on the holiday? You say,
‘ Of course, as you know, many o f these have
now gone to their reward,’ etc. No, I did
not know that any o f those I listed were
dead. I think o f a lot of old convention goers
from day to day and wonder about them.
The N orthw estern B an k e r locates some
for me in nearly every issue— latest, George

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Federal Reserve Bank of St. Louis

FIRST ROW— LEFT TO RIGHT. Elizabeth M. Kolb, Myrtle L. Johnson,
Lucille R. Massie, Luludell Kern, Linnea A. Pearson and Katherine C. Wilbur.
Back row— L eft to right, Harold Y. McLean, Carl H. deWaal, Nels L. Sholin,
Austin L. Vickery, Leo M. Brown, Herbert M. Bushnell, Elmer A. Wenberg,
Ellsworth Moser, Victor B. Caldwell, Richard M. Brown, Arthur D. Anderson,
Thomas F. Murphy, Mathias 8. Sehicker and James L. Shields.

T A recent meeting of the 25-Year
Club of The United States Na
A
tional Bank of Omaha, the twenty offi
cers and employes who make up the
present club membership were pre
sented with Hamilton wrist watches,
delivery of which had been delayed
by wartime restrictions.
At the time of its organization in
January of 1944, a policy of three
weeks’ vacation and presentation of a
wrist watch to incoming members was
established. New members are ad
mitted in January of each year, at
which time club officers are elected for
the ensuing year. The vacation pol
icy, also delayed by the war, is to be
inaugurated this year.

The twenty members have a com
bined service record of 622 years, one
month. Leading is Thomas F. Murphy,
a vice president, with 40 years, ten
months continuous service.
Club officers elected for the 1946
term are Elmer A. Wenberg, presi
dent; Carl H. deWaal, vice president,
and Katherine C. Wilbur, secretarytreasurer.
The above picture was taken on the
occasion of the presentation of the
watches by Ellsworth Moser, executive
vice president of the bank. The only
member of the club not shown in the
picture was Harry E. Rogers, assistant
vice president.
Northwestern Banker, May, 1946

THE CHASE
NATIONAL BANK
O F THE CITY O F NEW Y OR K
S T A T E M E N T OF C O N D IT IO N , M A R C H 30, 1946

RESOURCES
Cash and Due from B a n k s ........................................... $
U.

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

S. Government O bligations...................................

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

State and Municipal Securities.....................................

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

Other S e c u r i t i e s .............................................................

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

Loans, Discounts and Bankers’ Acceptances . .
Accrued Interest R e c e i v a b l e .....................................

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

M o r t g a g e s ..........................................................................

7 ,6 0 4 ,9 3 7 .8 4

Customers’ Acceptance L i a b i li t y ...............................
Stock o f Federal Reserve Bank.....................................

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

Banking H o u s e s .............................................................

3 3 ,6 4 6 ,6 7 3 .4 0

Other Real E sta te.............................................................

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

Other Assets

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

$ 5 ^ 4 9 8,51 0,64 2.80
L IA B IL IT IE S
Capital Funds:
Capital S t o c k ............................$ 1 1 1 ,0 0 0 ,0 0 0 .0 0
S u r p l u s .....................................
Undivided Profits . . . .

1 3 9 ,0 0 0 ,0 0 0 .0 0
56 ,7 9 2 ,4 5 9 .4 1
$

Dividend Payable May 1, 1946

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

Reserve for C o n tin g en c ie s...........................................

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

Reserve for Taxes, Interest, etc.....................................

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

D ep o sits................................................................................

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

Acceptances Outstanding
. . $ 1 0 ,557 ,86 5.65
Less Amount in Portfolio .
1 ,0 2 6 ,3 6 5 .4 9
Liability as Endorser on Acceptances
and Foreign B i l l s .......................................................
Other L i a b i li t i e s ..............................................................

9 ,5 3 1 ,5 0 0 .1 6
1 3 0,37 6.6 1
7 ,7 0 0 ,0 2 2 .1 7
$5749 8 ,5 1 0 ,642780

United States Government and other securities carried at $1,398,010,096.94 are pledged
to secure U. S. Government War Loan Deposits of $1,080,690,772.86 and other public
funds and trust deposits, and for other purposes as required or permitted by law.

Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, May, 1946

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

W hat
Do
You
Think?
Question: How far do you think
banks can 90 in the consumer
credit field?
R. A. Schneider, vice president and
cashier, Security State Bank, Sheldon,
Iowa: “ I think that banks should go
the limit on consumer credit loans.
To get this business, banks must take
care of the dealer’s current needs, take
his floor plan financing as well as the
installment paper. To get this busi
ness, we must set up reserves for the
dealers, meet their rates and make it
profitable for the dealers to give this
business to their local banks, instead
of out-of-town finance companies. The
public would rather deal with their
own banks and it is up to the banks
to tell their dealers that the local
hanks want this business and that the
dealer will also benefit from that re
lationship.”
M. H . Johnston, cashier, Sawyers
Savings Bank, Seymour, Iowa: “ I
think banks can go as far in the credit
field as security will permit, and there
after should be careful.”
J. A. Allen, president, First National
Bank, Milaca, Minnesota: “ Our experi
ence in the consumer field has been
very good. I am rather inclined to
feel that there are no real limits. If
it is possible to get quality installment
financing, one should take all that is
available. However, as far as our own
bank is concerned, we cannot expect
to get any more than 20 per cent of
our deposits or approximately $400,-

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Ivi
TO.

DES MOINES
Oldest Financial Journal West of the Mississippi

•

51st Year

N o. 706

IN THIS MAY, 1946, ISSUE
EDITORIALS
Across the Desk from the Publisher............................................................. 16

FEATURE ARTICLES
Dear Editor .........................................................................................................
What Do You Think?.............................
Frontispage .....................................
What Bankers Should Know About the Wage-Hour Law........ ........
How a Minnesota Bank Helped Its Dairy Farmers..............................
News and Views of the Banking World....................... Clifford De Puy
How Does an Officer Apply for a Loan?.............. Walter T. Robinson
Service Charges That Are Fair to the Banker and the Customer......
About Bankers You Know— Arthur W . McCain....................................
Is a Second Mortgage on a Home Loan Valid?— Legal.......................
Your Bank andthe Postwar Savings Program.........................................
Announce Program for A .B .A. Savings, Mortgage Conference........

13
15
19
20
21
22
23
24
25
26
28
32

BONDS AND INVESTMENTS
Stay With Long Term Governments— But Don’t Chase Them..........
................................................................................... ...Raymond Trigger 39

INSURANCE
My Best Selling Aid Is the Telephone............................Werner Kraft 45

STATE BANKING NEWS
Minnesota News ...................................................................................-.............. 49
Twin City News.....................................................E. W. Kieckhefer 51
South Dakota News........................................................................................... 55
Sioux Falls News.......................................................
56
North Dakota News........................................................................................... 57
Fargo .......
57
Nebraska News — ......
59
Nebraska Group Meetings and Pictures....H enry H. H ayn es 69, 61
Omaha News ...........................................................
63
Lincoln Locals ........................................................................................... 65
Iowa News ............................................................................................................. 67
Des Moines News...............
76

IN THE DIRECTORS’ ROOM
Gorden Maxam, vice president and
cashier, Community State Bank, Lake
Preston, South Dakota: “ I think that
it would be dangerous for the banks to
go too far into the field of consumer
credit for it might cause disastrous re
sults in later years through over pur
chase on the part of many who could
obtain articles and pay for them on
the installment basis who could not
obtain them otherwise.”
(Turn to page 81, please)

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Federal Reserve Bank of St. Louis

Conventions ............. ....... ......... -....... —-................... —................-................. - 85
A Few Short Stories to Make You Laugh................ ................................ 86

NORTHWESTERN BANKER
527 Seventh S t., Des Moines 9, Iowa, Telephone 4-8163
CLIFFO RD DE PUY, Publisher
RALPH W . M OORHEAD
A ssociate Publisher

HENRY H . H AYN ES
Editor

BEN J. H ALLER, JR.
A ssociate Editor

ELIZABETH CO LE
Advertising Assistant

H A ZEL C. H ADLEY
Auditor

SADIE E. W AY
Circulation Department

NEW YORK O FFIC E
Frank P. Syms, Vice President, 505 Fifth A v e ., Suite 1806

MUrray Hill 2-0326

Nort hwest ern Banker, May, 1946

taken as a whole, is greater today than it has
ever been before.
We must face the fact, Dr. Williams, that the
government, with its huge national debt which
makes it the biggest borrower in the world, will
probably continue for some time to come its
policy of low interest rates and therefore, bank
ers and investors must take this fact into con
sideration in their future plans.

jbean, GUe.'ite'i Bautlei:

Across the Desk
From the IHihlisher
3 )e a 4

4 . ¡fa it

cM .

fW illia + y i'i:

In your discussion of “ Economic Trends” be
fore the first postwar conference sponsored by
the Federal Reserve Bank of Minneapolis, you
emphasized that ‘ ‘ when the government fixes low
interest rates, there is a tendency for all rates to
go down. We see the effects in the stock market
as people with money to invest seek a higher rate.
“ The combination of declining interest rates
and redundant money supply tends to push money
into the market with an inflationary effect.”
As vice president and economist of the Federal
Reserve Bank of New York, we know you have
given this question much thought and we also
know that cheap money is an inflationary force.
Low interest rates on the other hand have per
mitted the Treasury to borrow cheaply and have
kept the public debt burden lighter than it other
wise would have been.
Also, corporations and railroads have been able
to reduce their fixed charges by refunding at
lower rates. Another group, the owners of mort
gaged homes, have been benefited.
On the other side of the picture, low interest
rates have not been welcomed by individuals, de
pending on income from bonds, mortgages, sav
ings deposits and other forms of fixed investment.
Commercial banks, although they have suffered
from lower bond yields, have increased their earn
ing assets and the bond income of individuals,
Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

While most of us associate you with OPA, since
March of this year you have been head of the
Office of Economic Stabilization, the main function
of which is to coordinate the various parts of the
economy to keep it moving along on as even a keel
as possible.
The job you have is a big one because you must
help to protect the 181 billion dollars in liquid
assets which the United States Treasury estimates
is the amount of funds held by the public at the
end of 1945.
Whether the public speculates with this money
or whether it saves it, will depend to a large extent
upon the stabilization of our government economy
which is basically the job you now have.
Figures from the Treasury report indicate that
the public has their 181 billion dollars invested
as follows:
Thirty-one billion in E Bonds.
Twelve billion in F and G- Bonds.
Twenty-one billion in all other forms of govern
ment securities.
Total, 64 billion in government securities.
That leaves 117 billion dollars as follows:
Thirty-seven billion in checking accounts.
Twenty-six billion in currency.
Twenty-nine billion in savings accounts in com
mercial banks.
Twenty-five billion in other savings.
In your new department, Mr. Bowles, we wish
you every success. As we see it, you are now try
ing to protect the billions held by the public where
before you were trying to regulate the price of
butter.
3 ) e a 4 3 )4 ,. cM a/ ia ld t G .

f y 'i e y :

Your discussion of the use we should make of
atomic energy is most interesting and thought
provoking.
As a member of the faculty of the University
of Chicago and because you were winner of the
1934 Nobel Prize in chemistry, you were chosen
as one of the men to make the atomic bomb.
Therefore, what you have to say is very pertinent.

In a recent speech you said :
“ We must decide which type of atomic energy
we want. It is absolutely impossible to have
both. The atom can be used wholly for peace or
wholly for war.
“ If no effective control of the atom bomb is
developed, the next step would be a race to see
who could produce the most bombs and use them
first.
“ If you see any move to put the military in
control of atomic development—fight it.”
First of ah, it has seemed to us that atomic
energy, which has long been a known factor to
scientists, should in some way he harnessed and
used for peaceful and industrial development.
Electricity, when it was first discovered, was a
great new force and while it is still used today to
ignite weapons of war and destruction, its main
purpose has been to help increase the benefits
which mankind could enjoy.
This same atomic energy should be corralled and
brought under control to drive power plants and
help the wheels of industry to turn more rapidly,
rather than to be used for the creation of atomic
bombs which can destroy mankind completely.
Therefore let us hope, Dr. Urey, that atomic
energy will be used wholly for peace and not
for war.

2 )e a *

tf-n & d A .

V ln b a n :

Under $1,000..........
$2,000
$1,000 to
3,000
2,000 to
4,000
3.000 to
5,000
4,000 to
10,000
5,000 to
25,000
10.000 to
100,000
25,000 to
100,000 to 200,000
200.000 to 500,000
500.000 to 1,000,000
.000,000 and over
Totals

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Federal Reserve Bank of St. Louis

Am ount, 1943

000.

4. Taken by percentages of the total taxes paid
, 2,, 3 order the figures are these
1. $ 1,000 to $ 2,000 21.14%
2. 25,000 to 100,000 14.26%
3,000 11.64%
2,000 to
3.
25,000 11.55%
4. 10,000 to
4,000 10.37%
3,000 to
5.
The figures plainly show that those in the lowest
brackets pay the largest aggregate amount of the
taxes because there are more of them and because
in the higher brackets where the percentages are
practically confiscatory there are very few per
sons in the millionaire class.
And again, Mr. Vinson, we suggest that gov
ernment expenses be reduced so that taxes may
he reduced.

5bea* Man/une'i <S. £ celeb:

An analysis of “ who pays the freight” in Fed
eral taxes shows that it is the citizens in the
$1,000 to $2,000 group who pay 21.14% of the
total which is the largest amount.
So as Secretary of the Treasury, Mr. Vinson,
you will help the greatest number of taxpayers
when you reduce taxes in this group.
The figures for all classes based on 1943 esti
mates which are the latest available are as follow s:
N et Incom e
Class

Here are some interesting facts which we also
noted, Mr. Vinson, from the Treasury figures:
1. The highest income tax return was for the
year ending June 30, 1945, and amounted to
$18,600,000,000.
2. The estimate income tax return to the Fed
eral government for the year ending June
30, 1946, is $14,866,000,000, but this amount
may be exceeded.
3. Federal income taxes are expected to “ level
off” at about $10,000,000,000 to $12,000,000,-

P er Ct.
1943

$ 359,000,000
2,534,000,000
1,395,000,000
1,243,000,000
874,000,000
1,233,000,000
1,385,000,000
1,710,000,000
570,000,000
395,000,000
180,000,000
111,000,000

2.99
21.14
11.64
10.37
7.29
10.28
11.55
14.26
4.75
3.30
1.50
0.93

$11,989,000,000

100.00

As Chairman of the Board of Governors of the
Federal Reserve System, we are interested in the
report in your recent Bulletin which indicated
that, “ member banks made a net profit after taxes
of $749,000,000 in 1945 and that the ratio of net
profits to invested capital was 11 per cent. About
one-third of the net profits was paid out as divi
dends to stockholders and the remainder was
added to capital accounts. ’ ’
The article further pointed out that, “ nearly
all of the wartime growth in bank earnings is the
result of income and profits from United States
Government securities. Earnings from other
sources remained almost unchanged over the war
period, while income from Government securities
increased rapidly and now constitutes almost
half of gross earnings.”
Your prediction, Mr. Eccles, that, “ Profits re
ported for the first half of 1946 may, however,
exceed the 1945 average,” is most encouraging.

Northwestern Banker, May, 1946

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Nort hwest ern Banker, May, J 946

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

W h a t H ankers Should K n ou m
A boat the
Wafjo-iLaw
Executive and Administrative Exemptions
Present Difficult Problems to Many Banks
ANY violations of the Fair La
bor Standards Act seem to re
sult from misunderstandings
of both the requirements of the Act
and its applicability.

A Federal Court decision last sum
mer holding a Georgia bank porter
under the protection of the law be
cause part of his time was spent as a
messenger—a decision that received
wide publicity—has served to clarify
the thinking of many people on cov
erage under the Act: it depends not on
the job title, but on the actual work
done by the individual employe. If
he is engaged in interstate commerce
or in work necessary to the production
of goods for commerce, he is covered.
Under court interpretations this in
cludes most employes of most banks.
Some of the banking activities re
garded in interstate commerce and
therefore covered by the Act include
such work as receiving and trans
mitting in interstate commerce checks,
notes, drafts, commercial paper of va
rious kinds and evidences of indebted
ness and other articles or subjects of
commerce; receiving and transmitting
of communications, documents and in
struments relative to transfer of tang
ible and intangible property in other
.states; interstate activities related to

membership in the Federal Reserve
System or in the Federal Deposit In
surance Corporation. These activities
listed are merely illustrative and are
by no means exhaustive. Where any
doubt exists on this or other questions,
consultation is urged with the regional
offices of the Wage and Hour Division,
U. S. Department of Labor, in Minne
apolis or in Kansas City, which will
furnish interpretations based on the
decisions of the Courts.
Pending further court clarification,
the Division does not seek to enforce
the Act for those employes of banks
who are wholly engaged in mainte
nance, such as washing, cleaning or
removing waste.
If an employe
spends part of his time in such work,
however, and the remainder as a
watchman, guard or messenger, among
many other duties, he comes clearly
under the protection of the law. This
and other lines of demarcation under
the Act are established by court de
cisions and not by the Wage and Hour
Administrator.
As has been noted, the executive and
administrative exemptions from the
minimum wage and overtime provi
sions of the Act sometimes give dif
ficulty in specific banking situations,
especially as to tellers and cashiers.

Many of them may be exempt. Fre
quently, however, a teller or a cashier
in a small bank may be the only em
ploye or one of few employes and
will of necessity perform a large
amount of non-exempt work. In such
a case, unless the employe is in sole
charge of the establishment and is in
other respects qualified as an execu
tive under the regulations he would
not ordinarily be exempt as an execu
tive employe.
The administrative
exemption does not, in general, apply
to employes who perform any non
exempt (non-administrative) work.
However, the performance, as an in
cident of an administrative job, of
some routine work which is function
ally related to the carrying on of the
employe’s exempt administrative du
ties (duties involving the exercise of
discretion,
independent judgment,
etc.), would not defeat the exemption.
Since responsibility for making a cor
rect classification is assumed by the
employer claiming the exemption, he
may wish to consult the Division if
the status of an employe is not en
tirely clear.
There is a distinction between an
executive and an administrative em
ploye under the regulations (Part
(Turn to page 81, please)

EXECUTIVE EMPLOYES

ADMINISTRATIVE EMPLOYES

1. Must have as his primary duty the management of
an establishment or a customarily recognized de
partment or subdivision, and

1. Must, with the exercise of discretion and indepen
dent judgment;

2. Must customarily and regularly direct the work of
other employes and exercise discretionary powers;
must have authority to hire or fire or make sugges
tions and recommendations which will be given
particular weight, as to the hiring, firing, ad
vancement and promotion of the subordinate em
ployes, and
3. Must not perform nonexempt work {work of the
same nature as that performed by non-exempt em
ployes) more than 20 per cent of the number of
hours worked in the workweek by the non-exempt
employes under his direction, except where the
employe is in sole charge of an independent estab
lishment or a physically separated branch estab
lishment.
4. And must receive minimum pay of $30 per week,
on a salary basis.
* ~* 5
a
Northwestern Banker, May, 1946

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Federal Reserve Bank of St. Louis

(a) regularly and directly assist an executive or
administrative employe, where such assistance
is non-manual in nature, or
(b) perform under only general supervision, re
sponsible non-manual office or field work, di
rectly related to management policies or
general business operations, along specialized
or technical lines requiring special training,
experience or knowledge, or
(c) execute only under general supervision nonmanual assignments and tasks directly related
to management policies or general business
operations.
2. And must receive minimum pay of $200 a month or
$50 a week on a salary or fee basis.

H ow a
JMinaesotaHunk
H elped its H a iry F arm ers
The Project Now Operates Throughout Eleven Counties
And This Year Will Breed 10,000 Dairy Cows
HAT many banks throughout
the nation are doing to promote
the prosperity of the communi
ties they serve is well illustrated by
the experience of the Minnesota Valley
Breeders Association, with h ead
quarters in New Prague, Minnesota.
This Association was originally spon
sored and financed by the State Bank
of New Prague, of which A. G. Sirek
is vice president and cashier, and
from its small start five years ago has
grown into a project covering several
counties. The man who organized the
Minnesota Valley Breeders Associa
tion was Wallace Miller, at that time
county agent for Scott County, and
now manager of the Association.

nesota Livestock Show at New Prague.
The 20 sires are housed in a barn 100
feet by 60 feet. A modern laboratory
and office is also located at the head
quarters.
Every other day semen is shipped to
the technicians, from New Prague,
who provide service to the members
located within the local unit.

Financial Success
Anyone who joins a business organ
ization is interested in its financial

tunity to use choice sires that should
result in greatly improving the type
and production of the offspring.
Farmers who take advantage of
artificial insemination are likely to
have an excellent market for their
surplus stock for several years fol
lowing the war.
The cost of breeding cattle artifi
cially is usually less than natural
breeding, as an extra cow can be kept
in place of the sire. The income from
butterfat and sale of calves from the

Association History
From a small beginning of 1,200
cows signed up in the fall of 1941, the
Minnesota Valley Breeders Associa
tion has grown until there are now be
tween 9,000 and 10,000 cows to be bred
this coming breeding season.
The members of the Minnesota Val
ley Breeders Association are located
in Scott, Le Sueur, Rice, Dakota, Hen
nepin, Carver, Wright, Meeker, Sibley,
Nicollet and Waseca counties.
On August 1, 1945 the Minnesota
Valley Breeders Association consisted
of five units with a technician located
at New Prague, Wayzata, St. Peter,
Waterville and Dassel.
When the breeding season starts
this fall there will be two new units—
one at Glencoe, which will include
McLeod county, and one at Fairfax,
which will include part of Renville
county.
It is assumed that many
farmers will desire to join this fall.
Anyone desiring to make use of arti
ficial insemination service should sign
up as soon as possible, as there is only
a limited number that can be taken
care of with the present number of
sires at the headquarters.
There are 14 Holstein, 4 Guernsey
and 2 Jersey sires. Almost threefourths of the cows bred artificially
are Holsteins.

THE ABOVE PUREBRED HOLSTEINS are the result o f artificial breeding
as practiced by the Minnesota Valley Breeders Association.

success. When the Minnesota Valley
Breeders Association started business
it was necessary for the members to
sign notes amounting to the breeding
fees for the first year. The notes were
used as credit to borrow money from
a local bank. The money was used to
remodel buildings, purchase equip
ment, supplies and sires.
The obligations have all been paid.
The organization owns the sires, con
siderable farm equipment, five acres of
land and several cars.
At present the membership fee (for
which members paid $5.00) is worth
several times that much.
The notes the original organizers
signed were returned after the first
year of operation. New members now
join without signing notes.

Headquarters at New Prague
The headquarters of the Minnesota
Valley Breeders Association is located
in the buildings of the Southern Min

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Federal Reserve Bank of St. Louis

Advantage of Breeding Artificially
Through artificial insemination of
dairy cattle, dairymen have an oppor

extra cow will usually more than off
set the cost of breeding artificially
the entire herd.
The real benefits to members, how
ever, come after several years, when
the herd is largely made up of off
spring from the association sires. The
average production of butterfat should
be much greater and the surplus ani
mals should have a greater sale value..
Where artificial insemination is
practiced, sires are not kept on farms
and there is no danger of members of
the family getting injured by the ani
mals.
Diseases of cattle that are spread
through the sires can be entirely con
trolled.
Artificial insemination is much more
efficient than natural breeding. In
stead of breeding 10 to 20 cows to a
sire, through artificial insemination
a well bred sire may have 500 and
more calves each year. # #
Northwestern Banker, May, 1946

N ew s a m i V iew s
OF THE BANKING WORLD
By Clifford De Puy

ONALD R. RICH BERG, former

National Recovery Administrator
and a former active New Dealer,
describes some of the labor leaders of
today in these terms:
“William Green, president of the
American Federation of Labor, is
a ‘drifter who never leads but fol

what I want when I want it.” His
United Mine Workers,’ ” asserted
Mr. Richberg, “is an industrial
union which has been trained to
accept the law laid down by John
L. Lewis as superior to any other
law.”

though years ago Mr. Green had
‘denounced Lewis in scathing
terms.’
Philip Murray, president of the
Congress of Industrial Organiza
tions, ‘plays a most unhappy part

When you leave the Stork Club,
3 East 53rd Street, New York City,
you find one of their post cards in
your coat pocket which is the only
thing FREE you get while there,
where cocktails are 90 cents apiece.
The Stork Club received its name from
a lady who was one of the original
group who financed the corporation
and who at the time was pregnant.
However, the only “babies” you see at
the club wear diamonds and not dia
pers and drink martinis not milk.

as captive of the underground in
his Communist-infested organiza
tion.’
John L. Lewis is a ‘great trage
dian in the title role of “I want

Pierre’s at 15 Elm Street, New
Canaan, has no connection with the
famous and fashionable hotel in New
York by the same name, but is oper

lows carefully the wishes of the
labor politicians,’ and under or

ders, Mr. Green recently welcomed
the return of John L. Lewis and
his United Mine Workers to the
A. F. of L. ‘with all the enthusiasm
of a rabbit welcoming a bulldog,’

in sta lls

N ew Loan

ated by Izzy Cohen, who made his
place popular by issuing memberships
in the “NEW CANAAN MARCHING
AND CHOWDER CLUB” with his res
taurant as headquarters and since
there are more Harvard men in New
Canaan per capita than any other town
in the country, he makes them “pay
double entry fee ($1.00) and they may
call no non-Harvard members by their
first names for a period of one year.”
Also members must have “ IN THEIR
ANCESTRY A MINIMUM OF ONE
HORSE THIEF OR THE EQUIVA
LENT.”
As the “war brides” arrive from
Europe we were interested, as perhaps
you will be, in a paragraph from a
letter sent by Evelyn Depuy who is
attached to the 16 Port Headquarters
of the American Red Cross, Clubmobile Service in Le Havre, France. In
her letter she said: “There are 1C»
Frenchmen waiting passage home who
are married to WACs and now we’re
starting the ‘Get the Bridegrooms
Home.’ As the first ship of French
brides sailed, there was much ex
citement in port over them since 40
of them were sent home because they
had (V. D.) venereal disease and 16 of
them are registered prostitutes. Many
of them have adopted their younger
brother or sister to take to the States
as ‘their’ child—what darling girls our
boys have married. It costs $4,000 to
take those motley girls home as
they’ve had to rebuild the whole ship,
with compartments for each one—
plus interpreters—plus nurses— plus
recreation, and care for the babies.”

At the “Chesterfield Supper Club”
radio show at the National Broadcast
ing Studio in Rockefeller Center, we
enjoyed Jerry Colona as the guest star.
He can roll his eyes and mustache as
well as sing in a style he has made
famous.
The United States Senate Restau
rant is no longer open to the public in
To provide personal, friendly, financial service, the Live Stock National Bank
of Omaha has made the second step in the postwar expansion of its service by
establishing a personal loan department. Earlier in the year it announced an in
augural step o f 24-hour transit service for correspondents.
Marvin Werve will be in charge o f the new department. Mr. Werve, a gradu
ate o f Creighton University Law School, joins the Live Stock after six and onehalf years o f experience in the personal loan field.
The personal loan department will share newly remodeled quarters with the
savings department to facilitate banking service. Pictured above at the counter
are the three members o f the savings department and they are from left to right
Vlasta Kadavy, Eleanor McDonough and Anna T. Olsson, head of the department.
Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

Washington, D. C., owing to the food
shortage, but we had luncheon in the
room reserved for members of the
PRESS and which has the same menu
and included among other things a
“60-cent Luncheon” of “ Barbecued
Spareribs, Sauerkraut, Parsley Pota
toes, Assorted Breads, Choice of Des(Turn to page 82, please)

G. I. LOAN QUESTION BOX—

H int' D oes an Officer
A p p ly for a Loan?
By WALTER T. ROBINSON
Iowa Loan Guarantee Officer, who
answers the things you want to
know about the Servicemen's
Readjustment Act
Q.
What form of separation paper is be endorsed and handled as if it were
an officer required to furnish the lend an original discharge certificate.
ing institution in connection with ap
Q. How can an officer obtain a loan
plication for loan?
while on terminal leave?

A carbon copy of Certificate of Serv
ice, Notice of Separation or Certificate
of Satisfactory Perfomance of Duty
provided that it is signed, in ink, by
the commanding, officer of the separa
tion center and countersigned by the
officer. Typewritten signatures are
not acceptable.

Lender will submit the signed car
bon copy of separation paper with
Loan Report for prior approval. Cer
tificate of Approval will be issued sub
ject to confirmation at expiration of
terminal leave, upon submission of
original separation certificate.

Q. If the above forms are submitted,
can a Loan Guarantee Certificate and
Certificate of Eligibility be issued?

Q. How may a Certificate of Eligi
bility, FA Form 1870, be issued to
veterans hospitalized pending final dis
charge?

No. They cannot be issued until the
expiration of terminal leave at which
time the officer must submit his orig
inal separation certificate which will

By presenting a statement from the
commanding officer of the institution
in which he is hospitalized that the
veteran had ninety days active service,

I f Off

or, in cases of less than ninety days
active service that his disability was
incurred in line of duty and that the
veteran at the time of such statement
may be eligible for discharge other
than dishonorable.
Q. What procedure should be fol
lowed in the event of a lost discharge
certificate?

Veteran is required to apply for a
“ Certificate in lieu of Discharge” or
other authenticated copy of his separa
tion papers from the branch of service
from which he was discharged.
Q. Is a loan for the purchase of a
Trailer eligible for guaranty if the
trailer is to he occxipied as a home?

Only if the trailer is dismounted and
(Turn to page 80, please)

H o m e Imitons A r e M0ro eesseii

l. AUTOM ATIC GUARANTY W ITHOUT
PRIOR CONFIRM ATION— SUPERVISED
LENDERS ON LY:
A. Within 30 days after loan has been made and
funds disbursed Lender will submit the follow
ing forms:
(1) Form 1820, Home Loan Report
(2) Form 1803, Appraisal Report
(3) Original Discharge or Form 1870, Certifi
cate of Eligibility
(4) Note, if endorsement of guaranty is desired
8 . Veterans Administration will prepare and for
ward Form 1861-a to New York for reservation
of guaranty and report of loan closed.
C. When Form 1861-a is returned from New York,
Veterans Administration will issue Form 1899,
Guaranty Certificate, or endorse the note. If
Insurance has been requested, Certificate of
Insurance Credit will be issued instead of Loan
Guaranty Certificate.

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Federal Reserve Bank of St. Louis

W alter Robinson discusses loan
procedure with a veteran

II. WHEN PRIOR CONFIRMATION HAS
BEEN REQUESTED:
A. Lender will submit:
(1) Form 1820, Home Loan Report
(2) Form 1803, Appraisal Report
(3) Original Discharge or Form 1870
B. Veterans Administration will send Form 1869,
Request for Reservation to New York. When
Form 1869 is returned from New York, Form
1866 Certificate of Approval will be issued and
Form 1870, Certificate of Eligibility and original
discharge returned to lender.
C. Lender will send to the Veterans Administra
tion, Form 1876, Certificate of Disbursements.
D. V. A. will send to lender Form 1899, GUAR
ANTY CERTIFICATE, or Form 1871, CERTIFI
CATE OF INSURANCE CREDIT.
Northwestern Banker, May, 1946

Service Charlies That A r e
Fair to the ttaah and the Custom er
A Manual That Will Aid Country Banks to Provide the
Widest Possible Checking Account Service in Their Communities
OLLOWING up on its cost analysis
service to country banks now in
its second year, the Commission on
Country Bank Operations of the
American Bankers Association has
sent to the country banks of the na
tion a manual, “ Checking Account
Service Charges for Country Banks,”
designed to help banks adopt service
charges based on a thorough study of
their individual costs. What the com-

mission has done has been to evolve a
simplified service charge program for
country banks which will enable them
to give the widest possible checking
account service in their communities
on a profitable basis that is fair alike
to the customers and the banks.
The plan does not recommend uni
formity of service charge rates. The
commission realizes that there is a
wide variation of operating costs and

IN THIS M A N U A L the Commission says: “ The first requirement of a successful
service charge program is that it be equally fair to both customer and the bank.”
Northwestern Banker, May, 1946

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Federal Reserve Bank of St. Louis

income as between individual banks,
and it states that uniformity as be
tween banks should be limited to the
method used and that the individual
bank should adopt rates applicable to
its own operations.
In making the study on which the
manual is based, the commission cor
responded with many of the country’s
leading authorities on bank operations,
interviewed numerous bank deposi
tors, and made use of material from
the cost analysis reports prepared by
the commission covering operating
costs of approximately 3,000 country
banks. From this study was form
ulated the simplified service charge
plan, which has been tested by time
and experience in large and small
banks in all parts of the country and
which any country bank can use
readily and easily.
Even before the turn of the century,
the subject of service charges and ac
count analysis came up for discussion
at meetings of bankers. Much prog
ress on this problem was made by the
larger banks which organized depart
ments to analyze accounts and which
charge for their services in cases
where accounts do not earn enough to
cover the cost of their maintenance.
Some of the smaller banks, on the
other hand, attempt to solve this prob
lem through the use of old-fashioned
flat service charges or measured (met
ered) plans.
In recommending use of the simpli
fied analysis service charge plan, the
A. B. A. commission says: “ It is gen
erally recognized that the complete
analysis plan reaches the highest point
of equity between depositors and the
bank. However, in view of the rela
tively complicated and intricate detail
involved in complete analysis, it is not
considered practical for use by coun
try banks. The added expense would
be entirely out of proportion to the re
sulting benefits to the banks. The de
positor would also lose the advantage
of the lowest possible operating costs
consistent with fairness to him and
the bank.”
The plan recommended by the com
mission provides for the following:
(1) a maintenance factor, (2) same per
item rate for ledger entries, including

checks paid and deposits made, and
out-of-town items in deposits, and (3)
an earnings credit or allowance based
on the minimum monthly balance.

A b o u t Itanl.i’rs You K n ou '

“ There’s a basic cost in the handling
of every account irrespective of size
or activity,” the commission points out
in discussing maintenance charges.
“ This cost includes rendering state
ments, balancing ledgers, ledger sheets,
pass books, portion of vault expense,
portion of rent, heat, lights, deprecia
tion and other overhead, administra
tive expenses, and cost of maintaining
personnel ready to serve at all times.
“The handling of deposits is one of
the most costly factors in servicing
checking accounts,” the manual con
tinues. “ Transit or remittance items
are the most costly of those items on
which deposit rates are established.
“ The first requirement of a success
ful service charge program is that it
be equally fair to both the customer
and the bank,” the commission says.
It recommends that the banker be in
formed as to what his costs are by a
cost analysis of his bank, and that his
hank’s directors and entire bank staff
should be completely familiar with the
service charge plan and should also be
convinced of its fairness to both the
customer and the bank.
“The millions of Americans who use
the services of country banks want
strong banks. They recognize that to
be strong the banks in their commu
nities must operate at a fair profit.
The facts of your bank’s costs, when
clearly and accurately explained, give
your bank the customer understand
ing necessary to the successful selling
of a service charge plan,” the commis
sion asserts.
The A. B. A. Country Bank Opera
tions Commission is headed by Chair
man William C. Rempfer, president of
the First National Bank, Parkston,
South Dakota. The Service Charge
Committee of the commission, respon
sible for the new checking account
service charge manual, includes R. A.
Bezoier, vice president, First National
Bank, Rochester, Minnesota, chairman;
R. H. Britton, vice president and cash
ier, First National Bank, Rochester,
New Hampshire; J. W. Brown, Jr.,
president, First National Bank, Sylacauga, Alabama; S. A. Neilson, presi
dent, Bank of Gowanda, Gowanda, New
York; T. E. Burch, president, Security
State Bank, Wewoka, Oklahoma; How
ard Hambleton, vice president, Citi
zens National Bank, Waxahachie, Tex
as, and C. D. Tedrow, president, Citi
zens First National Bank, Princeton,
Illinois.

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Federal Reserve Bank of St. Louis

ARTHUR W ILLIA M SO N M cCAIN
President, Chase National Bank of New York
“ He began as a bank clerk in Jonesboro, Arkansas’ ’

r ROM a clerkship in the Bank of Jonesboro, Arkansas, to the presidency
I of the world’s largest bank, the Chase National Bank of New Y ork, is
the record accomplished in just 32 years by Arthur \\ illiamson McCain.
He was elected president of the Chase National last month at the regular
meeting of the board of directors. Mr. McCain has served as a vice president
in the comercial hanking department of the bank since 1929.
Arthur W . McCain was born in Little Rock, Arkansas, on April 26, 1894.
He was graduated from the high school at Jonesboro, Arkansas, and from
Washington and Lee University at Lexington, Virginia, where as an under
graduate he was elected a member of Phi Beta Kappa, honorary fraternity.
After completing his college course in 1914, he began his banking career
as a clerk in the Bank of Jonesboro. He worked there for two years and then
was selected in 1916 to become a member of the student training class of the
National City Bank of New York. Following a brief period at the head office,
he was assigned to the bank’s foreign department, operating in South Amer
ica. It was here he received some of his most valuable training. In 1918 he
became sub-manager of the Santiago, Chile, branch, and later held the same
position in Rosario, Argentina. Four years later he joined the b irst National
Bank of Boston as assistant manager of the branch in Buenos Aires, Argen-

(Turn to page 54, please)
Northwestern Banker, May, 1946

LEGAL

Is a Soeond yiovttjatjv on
a H om o
Q. Burdensome owed Jacobs $5,000
which was secured by a mortgage on
his home in North Dakota.
The
mortgage went into default and Bur
densome refinanced it through a $4,000
first mortgage with the Federal Home
Owners’ Doan Corporation and a $1,000
second mortgage with Jacobs. The re
financing transaction occurred in 1933
and was entirely open and above
board. The Home Owners’ Loan Cor
poration knew of the second mortgage
and was not defrauded in any way by
the dealings of Burdensome and
Jacobs. Was the second mortgage
good?
Yes. A second mortgage, taken by
a mortgagee with the knowledge of the
Home Owners’ Loan Corporation, in
an amount not exceeding the differ
ence between the amount of the orig
inal mortgage debt and the new
mortgage debt running to the Corpo
ration, is not against public policy,
violates no state or federal statute, is
based on sufficient consideration, and
will be enforced in the absence of a
secret agreement between the mort
gagee and the mortgagor as to the
second mortgage or fraud on the loan
corporation. The North Dakota Su
preme Court so held in a recent de
cision.

Q. Morris became indebted to Smith.
As security therefor Morris assigned
to Smith certain life insurance policies.
Morris paid his indebtedness to Smith
and shortly thereafter died without
securing a reassignment of the poli
cies. The assignment was absolute on
its face and Smith sought to collect on
the policies. Could he do so?
No. Although an assignment of an
insurance policy is absolute in form,
it may be shown to have been intended
to serve only as collateral security. In
a case of such showing the assignee’s
rights in the policy are limited to the
amount of the debt secured, plus in
terest and premiums, if the latter were
paid by the assignee. Since there was
Northwestern Banker, May, 1946

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Federal Reserve Bank of St. Louis

Loan Valid?
This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT

no debt to Smith involved here, he
could not take anything under the
policies.

Bradley executed a mortgage in
favor of a Nebraska bank covering cer
tain property in that state in good
faith and for a valuable consideration.
Through oversight the mortgage was
not recorded promptly. Schommer
obtained a judgment against Bradley
for $2,000. He commenced proceedings
to levy on and sell the property. Be
fore a sheriff’s deed was issued the
bank recorded its mortgage. Did the
mortgage take precedence over the
judgment?

Yes. Under Nebraska statutes a
prior unrecorded deed or mortgage,
made and delivered in good faith for a
valuable consideration, will take prece
dence over a judgment, provided
such deed or mortgage is recorded be
fore any deed to the realty is recorded
which is based on the judgment.

Brannon fraudulently prevailed
upon Sell to sign a negotiable promis
sory note for $5,000. Sell could not
read and the character of the instru
ment had been misrepresented to him.
He was not negligent in signing it.
Clamp subsequently became a bona
fide holder of the note through appro
priate endorsements. Did Sell have a
good defense against a suit by Clamp
on the note?

Yes. It is established law, with a
few comparatively minor exceptions,
that fraud as to the character of the
paper signed is a good defense against
a bona fide holder of negotiable paper,

if the signer was free from negligence.
Decisions supporting this may be
found in Indiana, Iowa, Kansas, Min
nesota, Mississippi, Missouri, Nebras
ka, Ohio, Oklahoma, Texas, Wisconsin,
and other jurisdictions.

Suppose that, in the preceding
question, Sell was able to read but did
not read the note and signed it in re
liance upon representations by Bran
non that the instrument was of an
other character. Would Sell, as an
ordinary proposition, have a valid de
fense against Clamp in such circum
stances?

No.
As an ordinary proposition,
one who, being able to read, signs a
negotiable instrument in reliance upon
representations of the person dealt
with that the instrument is of another
character is guilty of negligence as a
matter of law and is precluded from
asserting a defense of fraud as against
a bona fide holder of the paper. There
are decisions supporting this rule in
Illinois, Indiana, Iowa, Kansas, Michi
gan, Minnesota, Mississippi, Missouri,
Ohio, Texas, and other jurisdictions.

An Iowa banker and his wife con
veyed certain property owned by them
to a trustee for their children. The
trust deed was silent as to whether it
could be revoked. Subsequently the
transferors changed their minds about
the trust and sought to revoke it and
have the property returned to them.
Could they do so?

No. Unless the power of revocation
is expressly reserved in a conveyance
creating a trust estate the instrument
is irrevocable. There are several de
cisions supporting this legal principle
in Iowa and, for that matter, in other
jurisdictions, including California.

Q. A South Dakota banker and his
wife were divorced. They had three
minor children and the divorce was
granted in line with an elaborate
(Turn to page 78, please)

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Federal Reserve Bank of St. Louis

Member

Federal

Deposit

Insurance

Corporation

Northwestern Banker, May, 1946

1 7our ninth

antin»
Postum r Savings P rogram
The Promotion of Thrift Is of Benefit to All,
As Well as a Matter of Self-Interest to Bank and Bankers
T IS generally conceded that the
management of the public debt is
one of the foremost problems facing
our nation today. It is important to
the returning G. I., the corner drug
store owner, the home owner and the
laborer as it is to the banker with
the million dollars or a hundred mil
lion dollars now on deposit in his
bank. This problem is of the utmost
importance to every American. If we
face the issue and give it proper con
sideration it can be handled and man
aged for the benefit of all concerned—
if not managed properly it will give
us plenty of headaches and constant
trouble.
At least two committees and prob
ably more are making an exhaustive
study of the $275,000,000,000 national
debt and its effect on the welfare of the
country as a whole. I do not know, of
course, what these committees will
recommend but I am confident that all
groups will agree on two points:
(1) The necessity of maintaining
widespread ownership of the public
debt, and
(2) The necessity of continuing sale
of Savings Bonds to individuals and
other non-bank investors and to grad
ually reduce the amount of Bonds held
by banks.
The United States Savings Bonds Di
vision of the Treasury is being con
tinued for the purpose of performing
these two functions, among several
others. No one, the banker or the in
dividual of the nation, can afford to
take a passive attitude toward the op
erations of the Savings Bonds Pro
gram.
The soundness of our national econ
omy will depend to a degree on how
well we are able to carry through this
program.
We of the Savings Bonds Division
are not a bunch of bureaucrats seeking
to interfere with the operations of
your business but from the beginning
this division and its predecessor, the
War Finance Committee, have sought
to operate efficiently and at a minimum
cost to the tax-payer and in coopera
tion with banking, industry and labor.
The success of the Savings Bonds
Program will depend to a great degree,
Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

as in the past, upon the cooperation re
ceived from bankers. Therefore, we
ask your cooperation in a plan which
I am confident will be mutually ad
vantageous:

The Job Ahead
As we view the task ahead I would
like to suggest these specific ways in
which bankers can be most helpful to
the Savings Bonds Division of the
Treasury:
i • Will you urge upon the employers
in your community the continuation of
the Payroll Savings Plan for the pur
chase of Savings Bonds? A recent
survey made for the Treasury indi
cates that 90 per cent of the people of
the country already on the Payroll
Savings Plan wish to have it con
tinued. This plan is most important
in encouraging habits of thrift and
regular savings that many people first
acquired during patriotic buying of
War Bonds.
£ • We particularly request that the
banks continue as issuing agents and,
wherever possible, maintain a special
window or booth for over-the-counter
sale of Savings Eonds.
•£• We ask that bankers cooperate
with our education program to reach
school pupils with the thrift plan for
Savings Bonds and Stamps. Regular
savings by our youngsters will re
dound to the benefit of banks in years
to come.
/ • We ask your assistance in bring
ing to the attention of farmers in your
community the availability and de
sirability of Savings Bonds. The ma
jority of the farmers of the nation pre
fer to buy Savings Bonds through
their banker. Ownership of Savings
Bonds will make the farmer a better
credit risk.
We should like to have all bank
ers allocate at least one line in all
their advertising to the support of this
program. The line could be as simple
as this: “Buy and hold United States
Savings Bonds.”

a . We urge that you stress the ad
vantages of Series F and G Bonds,
particularly the latter, to trust officers.

By MORRIS M. TOWNSEND
Director Banking and
Investment Section, U. S.
Savings Bond Division
Washington, D. C.

Prevailing low interest rates make it
very difficult for trust accounts, in
surance companies, savings and loan
associations and other non-bank in
vestors to find suitable outlets for
their funds. You will be doing these
customers and investors a favor by
recommending Series G Bonds.
Some bankers are worried about re
demptions. The smart banker will see
in his redemption window an oppor
tunity to make temporary personal
loans to tide over a situation which
would otherwise force the unnecessary
redemption of bonds. An understand
ing person at the window, or a sign to
the effect:
“ Consult us about a personal loan
before cashing your bonds”
would, I believe, produce business for
your bank and at the same time re
duce the unnecessary redemption of
Savings Bonds. # #

A.B.A. Executive Council
More than 400 bankers from all parts
of the country attended the annual
spring meeting of the Executive Coun
cil of the American Bankers Associa
tion held at the French Lick Springs
Hotel, French Lick, Indiana, last
month. The administrative commit
tee of the association also met at
French Lick.
Last year the spring meeting of the
Executive Council was not held be
cause of wartime travel restrictions,
and in lieu of this a meeting was called
in New York of the administrative
committee and chairmen of the vari
ous commissions, committees and coun
cils.
The Executive Council is the govern
ing body of the association and is
made up of 124 bankers representing
the banks of the 48 states and the Dis
trict of Columbia.

This Money
travels fast
M ore than three-quarters o f

ask their com m ission men

a century’s experience has

to route their money through

taught us to appreciate the

this Bank, the advice o f credit

value o f speed in the trans

goes to you on the day o f

mission o f proceeds

receipt.

from

T he

Stock Yards

the sale o f live stock in Chi

post o ffice is just across

cago. W hen your customers

the street and no time is lost.

We w ill be pleased to send you in
struction cards to give your shippers.
fj/ l€

LIVE STOCK
BANK
U N IO N

ESTABLISHED

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

1868

STOCK

YARDS

D A V I D H. REIM ERS, Pres.

M em ber Federal Deposit Insurance Corporation

Northwestern Banker, May, 1946

it.U1iH i*.i.

* HAMMERMI LL
C O L U M N

Payroll bandits have adopted a new
technique. They have given up violence
and a racing getaway for a sedate and
subtle approach. Instead of forcibly
shooting it out with police as they relieve
a messenger of the payroll, they now allow
the bank to give them the money. Yes ,give!

★

The plan is brand new. The perpetrators
are being sought. But the scheme is so
simple that there is a chance of its spread
ing from cityto city—perhaps to your own.

The episode opens with a routine bank
ing transaction. A man goes to a teller’s
window posing as an employee of one of
the bank’s substantial customers. He
makes a deposit to that firm’s account.
★
★
★
The deposit consists of checks, most of
them drawn on out-of-town banks. A s is
customary, the depositor presents two
slips to the teller. One is for the bank rec
ords, the other is stamped by the teller and
returned to the depositor to show his office
that the deposit was made.

★

There is nothing about the phony em
ploy ee’ s actions to arouse the teller’s
suspicion. H e’s friendly. He may remark
casually that his boss has added this
banking chore to his other duties. He
leaves with a cheerful smile.

L o a n s in

Of the 117,234 G. I. loans approved
in the United States as of April 5th,
nearly 8 per cent were processed in the
states of Minnesota, Iowa, Nebraska,
North and South Dakota, E. R. Benke.
Deputy Administrator of Branch-8, in
Minneapolis, has revealed.
The figures show that the veterans
in our area are taking advantage of
the benefits provided them, as the
present and potential veterans popu
lation in the five states represents 5.3
per cent of the nation’s veteran popu
lation, or 1,016,886, Mr. Benke said.
Total loans approved in the area
reached 8,662 on April 5th, an increase
of 2,581 over March 2nd.
Types of loans processed in the area
are as follows:

NEBRASKA
Home . . .............. .......... 1,011
Farm . .
124
Business .........................
86

1,514
213
128

1,221

1,855

NORTH DAKOTA
Home . . ......................... 120
Farm . . .........................
69
Business .........................
43

172
112
73

232

357

SOUTH DAKOTA
Home . . ......................... 115
Farm
......................... 124
Business .......................
62

193
195
95

301

483

MINNESOTA
As of
March 2

As of
April 5

Home ......... ................... 1,274
Farm . . . ................... 179
Business . . . ................... 211

1.729
232
287

1,664

2,248

IOWA
Home ....... ................... 2,194
Farm ....... ................... 326
Business . . . ................... 143

2,978
512
229

2,663

3.719

Loan Chart in Demand
A revised version of its highly de
manded G. I. Loan Procedure Chart
has been sent by City National Bank
and Trust Company of Kansas City,
Missouri, to all its correspondent bank
customers and to a selected list of
banks in its territory. Other banks
wishing this simplified procedure chart
may obtain one by writing City Na
tional. The original chart was in such
demand that four printings were nec
essary.

ÊAHthintf **3§iruge

* *

The deposit has been timed so that it is
made a day or so before the firm custom
arily draws cash for its payroll. Later
that day the phony employee appears
again at the same teller's window. This
time he presents a payroll check—a clever
forgery. Since he has made a large deposit
that same day, the teller has no doubt that
he is employed by the firm, and he cashes
the check.

★

The theft is not discovered until a bona
fide employee of the firm presents the real
payroll check—or until the checks de
posited by the forger return with the
notation that no such accounts exist. This
is a very smooth trick —as nearly fool
proof as any that have come to light in a
long time. But a very simple precaution
would nullify it—just a rule that any
teller must positively verify the identity
of any depositor unknown to him.

For t h e g e n e r a l p ro te c tio n o f y o u r cu sto m
e r 's c h e c k s , w h y n o t h a v e th e m p ro d u ce d on
H a m m e rm ill S a f e t y ? T o d a y , w ith m a n u fa c tu r
in g r e stric tio n s e a s e d , t h is fin e c h e c k p a p e r
is b e t t e r th a n e v e r . W e ’d lik e y o u to se o its
im p ro v e d q u a lity a n d c o lo r r a n g e . A n o te on
y o u r b a n k le t t e r h e a d w ill b rin g s a m p le s.
Ju s t a d d r e s s H a m m e rm ill P a p e r C o m p a n y ,
1513 E a st L a k e R o a d , E rie , P e n n s y lv a n ia .

Nort hwest ern Banker, May, 1946

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

LIKE THE SIGHT OF A LIMPID SPRING in a desert to a thirsty traveler, is
this attractive bungalow front to the home-wanting customers in the lobby o f City
National Bank & Trust Co. of Kansas City, Missouri. But, mirage-like, it isn ’ t really
a house, but the almost life-sized replica of the front of one on the b a n k ’s balcony
tioor, behind which is a free Home Planners’ Inform ation Center that has proved
popular with the ba n k’ s customers past all expectations. Co-sponsored with the
American Builder magazine, this display of plans and booklets and catalogs of
equipment for prospective home builders and remodelers has had a hard time
keeping stocked with literature, so great has been the demand. Even the few not
interested in a new or modernized home agree that i t ’s a pretty decoration for
the ba n k ’ s balcony.

Another leading bank using Hammermill Safety
Republic National Bank of Dallas was estab
lished in February, 1920. Since that time its
resources have grown from $500,000 to more
than $300,000,000!
Today it is the sixty-third largest bank in
the United States— recognized as one of the

MANUFACTURED

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Federal Reserve Bank of St. Louis

BY H A M M E R M I L L

most influential institutions in the Southwest.
W e are proud that its checks are on Ham
mermill Safety paper. The sample check shown
below is on chainline Hammermill Safety with
a reproduction of the bank and its emblem as
part of the surface design.

PAPER

COMPANY,

ERIE,

PA. ,

FOUNDED

1898

Northwestern Banker, May, 1946

A n munteli P ra t/ra m fo r A . it. A .
Sarint/s. .M arIt/aye
OME of the leading authorities in
S
the fields of savings management
and mortgage financing will speak at
the Mid-Western Regional Savings and
Mortgage Conference sponsored by the
savings division of the American Bank
ers Association at Des Moines, Iowa,
May 27th and 28th, according to My
ron F. Converse, president of the sav
ings division, who is also president of
the Worcester Five Cents Savings

Bank, Worcester, Massachusetts.
In a letter announcing the complete
two-day program, mailed to the 3,000
banks of Iowa, Missouri, Minesota,
North and South Dakota, Kansas and
Nebraska, which have been invited to
participate in the conference, Mr. Con
verse says: “As you can see from the
attached completed program, we have
secured some of the leading authori
ties in the country to discuss many of

The Seal of Approyal —
Constant Cirowlli
That banks find our service eminently satisfactory
is evidenced by the steady growth o f our roster
of correspondent banks. It is a source o f gratifica
tion to us that much o f this progress is the result
o f recommendations o f satisfied customers.
W e offer to your bank a quality service suited
to your special requirements. Our objective will
be to cooperate with you so closely and efficiently
that you will unhesitatingly recommend us to
other banks. Y our inquiries will receive our
prompt and interested attention.

A M ERICAN NATIONAL BANK
AIMD T R U S T

COMPANY

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

AT W A S H I N G T O N

----------------- ------------------------Member Federal Deposit ’g B a lp S y ’ Insurance Corporation

Nort hwest ern Banker, May, 1946

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

the most pressing problems confront
ing our banks today.
“Morning and afternoon sessions on
Monday, May 27th, will be devoted pri
marily to savings management. Mort
gage merchandising will be empha
sized at the Tuesday morning session.
Tuesday afternoon will be devoted en
tirely to loans to veterans, including
credit for business and modernization
as well as home and farm mortgages.
“ Most of the addresses will be short
so that there will be plenty of time
for a full and free discussion from the
floor. It has been our experience that
often the best results of the conference
come from the ideas presented by those
in the audience.”
Members of the Des Moines confer
ence committee include: Herbert L.
Horton, president, Iowa-Des Moines
National Bank and Trust Company,
Des Moines, Iowa, chairman; E. F.
Buckley, president, Central National
Bank and Trust Company, Des Moines;
C. A. Christopherson, A.B.A. Savings
Division state vice president, and
chairman of board, Union Savings
Bank, Sioux Falls, South Dakota; W. R.
Courtney, A.B.A. Savings Division
state vice president, and president,
Mexico Savings Bank, Mexico, Mis
souri; John de Laittre, A.B.A. Savings
Division state vice president, and vice
president and treasurer, Farmers and
Mechanics Savings Bank, Minneapolis,
Minnesota; William Gough, A.B.A. Sav
ings Division state vice president, and
cashier, Bank of Commerce, Chanute,
Kansas; B. A. Gronstal, A.B.A. Savings
Division state vice president, and pres
ident, Council Bluffs Savings Bank,
Council Bluffs, Iowa; B. F. Kauffman,
president, Bankers Trust Company,
Des Moines; Frederick M. Morrison,
president, Valley Bank and Trust Com
pany, Des Moines; F. E. Stewart, A.B.A.
Savings Division state vice president,
and cashier, American State Bank, Williston, North Dakota; R. O. Wagner,
president, Capital City State Bank,
Des Moines; Frank Warner, secretary,
Iowa Bankers Association, Des Moines;
C. F. Witt, A.B.A. Savings Division
state vice president, and president.
South Omaha Savings Bank, Omaha,
Nebraska.

Graduate School Makes
Plans for 1946 Session
(See Cover Photo)

Meetings in New York City last
month for its annual spring conference
was the nationally representative 52man faculty of The Graduate School of
Banking of the American Bankers
Association. This group, unique in
the banking field, comes from all sec
tions of the country and meets in April

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Federal Reserve Bank of St. Louis

33-

T he Public N ational B ank
A N D T R U S T C O M P A N Y OF N E W Y O R K
37 B r o a d S t r e e t

CONDENSED

STATEM ENT

OF CONDITION

March 31, 1946
RESOURCES
Cash and Due from Banks---------------------------------------------------------

$ 94,657,209.30

U. S. Government Securities-------------------------------------------------------

300,499,780.86

State and Municipal Securities---------------------------------------------------

9,445,795.06

Other Securities_________________________________________________

2,799,586.74

Loans and Discounts____________________________________________

145,508,341.91

Customers’ Liability for Acceptances----------------------------------------

1,597,773.48

Stock of the Federal Reserve Bank-----------------------------------------Banking H o u s e s --------------------------------------------------------------------------

660,000.00
1,891,844.90

Other Real Estate------------------------------------------------------------------------

20,143.66

Accrued interest Receivable------------------------------------------------------Other A s s e t s --------------------------------------------------------------------------------

1,048,412.50
292,816.23

$558,421,704.64
LIABILITIES
Capital

______ ______________ $ 9,625,000.00

Surplus

_____________________ 12,375,000.00

$22,000,000.00
Undivided P ro fits_________________________________

5,276,2/3.90

$ 27,276,273.90

Dividend Payable April 1, 1946--------------------------------------------------

226,875.00
498,284.50
4,223,163.55

Unearned D isco u n t---------------------------------------------------------------------Reserved for Interest, Taxes, Contingencies----------------------------A ccep tances_______________________________________ $ 3,697,928.25
Less: Own in Portfolio-----------------------------------1,770,300.78
Other Liabilities
D ep o sits___________________________________________________________

1,927,627.47
178,111.47
524,091,368.75

$558,421,704.64
Securities carried at $ 7 6 ,0 5 3 ,9 6 8 .8 0 are pledged to secure U. S. Government War Loan
Deposits o f $ 7 3 ,5 6 6 ,8 9 1 .7 0 and other public and trust deposits, and fo r other purptpses
as required or permitted by law.
MEMBER:

N. Y. CLEARING HOUSE ASSOCIATION • FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, May, 1946

each year for a conference devoted to
the purpose of completing plans and
the teaching program for the summer
resident session, which is held at Rut
gers University during the last two
weeks in June.
Three of the Graduate School of
Banking faculty members are pictured
on the cover page. From left to right,
they are O. Howard Wolfe, vice presi
dent of the Philadelphia National
Bank; Howard E. Randall, vice presi
dent of the First National Bank of
Boston; and Eugene E. Agger, profes
sor of economics of Rutgers Univer
sity at New Brunswick, New Jersey.
The original faculty of The Gradu
ate School of Banking, when it opened
in 1935 with 200 students, consisted of

WHO

10 men. Seven of these men are still
on the faculty. The other three have
left the banking and teaching profes
sions.
The opening of the 1946 resident ses
sion will mark the beginning of the
G. S. B.’s twelfth year. Beginning
with a student enrollment of 200, it
soon reached a capacity of 600, drop
ping somewhat during the war. This
year the student body will be the
largest in the history of the school.
The new or freshman class this
year will consist of 270 men. The
junior class will consist of 258. And
the senior or graduating class will
have 176. This makes a total student
body of 704.
The Graduate School of Banking

was inaugurated in 1935. Its first class
was graduated in 1937. With its com
mencement exercises next June, it
will have graduated 1,546 bank officers.

Celebrates Anniversary
Safety paper for bank checks and
drafts is celebrating the 75th anniver
sary of its invention by George La
Monte in 1871. It is a significant mile
stone in American banking.
In that year, three-quarters of a
century ago, George La Monte, then
engaged in the paper business in New

DEAL ABRO AD
GEO RG E V. LA M O N T E
“ G eorge the Third”

For several decades correspondent banks have
provided services to their customers through
our Foreign Banking Department. These estab
lished facilities again are being used by our
customer banks. The long and wide experience
of our Foreign Department is at your disposal.

THE N O R T H E R N
TRUST COMPANY
50 S O U T H LA S A L L E S T R E E T , C H IC A G O 90, IL L I N O I S
Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

York, obtained the basic patents for a
scientifically protected paper that
would safeguard negotiable instru
ments from alteration. He called it
National Safety Paper.
Mr. La Monte, after much experi
mentation, patented a simple idea but
a fundamental one. Because of its
effect in freeing checks and drafts from
the fetters of suspicion and delay and
thus facilitating payments in national
trade and inter-state commerce, pos
sibly his invention should rank with
other more dramatic developments
such as the telegraph and the tele
phone. The importance of the La
Monte invention has been rather over
looked in economic history, but it may
be doubted whether the speed and
efficiency and economy with which
14,500 banks throughout the United
States now serve their 90,000,000 de
positors in making 90 per cent of their
total payments by check could ever
have come about without it.
In the first three months of 1946,
payments by check in the United
States totaled $250 billion, indicating

I N V E N T O R Y

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THE

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SA

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t i o n a l W o r k in g
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a p

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Through the FIELD W AREHOUSING SERVICE of the St. Louis Terminal Warehouse
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or finished goods (remaining on the premises of the business location) may be
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Federal Reserve Bank of St. Louis

•

CINCINNATI

•

DALLAS

•

K A NS A S

CITY

•

MEMPHIS

Nort hwest ern Banker, May, 1946

36
a check turnover at the rate of $1,000,000,000,000 a year, the greatest in our
history.
The manufacture of safety paper at
the La Monte plant in Nutley is con
stantly under careful control. Every
sheet is accounted for, and extreme
care is taken to avoid having any
sheets fall into irresponsible hands.
All spoiled sheets are shredded to
make them unfit for printing or litho
graphing. Thus, the banks and cor
porations who use individualized La
Monte Safety Paper containing their
own trademarks or designs are as
sured of additional protection against
counterfeiting.

The substantial growth of bank de
posits and growing number of bank
depositors is steadily expanding the
safety paper requirements of Ameri
can banking. Throughout its seventyfive years it has always had a George
La Monte at its head. The original
George La Monte actively headed the
business until 1904 when he was suc
ceeded by his son, George M. La
Monte. In 1927 the third generation,
George V. La Monte, succeeded to the
presidency of the company and is still
its head. George V. La Monte, Jr., has
now rejoined the company after a tour
of naval duty in World War II during
which he saw action in the Pacific.

Opens New Office
E. Chester Gersten, president of The
Public National Bank and Trust Com
pany of New York, has announced the
opening of the bank’s new office at the
southeast corner of Fifth Avenue and
Forty-second Street.

M \ C t ‘ s r e q u ir e d

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Thomas M. Keefe, vice president,
who comes from the main office of The
Public National Bank and Trust Com
pany at 37 Broad Street, heads the new
office. Prior to his joining The Pub
lic National, Mr. Keefe was associated
with the uptown office of The New
York Trust Company. Associated with
Mr. Keefe are Henry S. Sanders, vice
president, who was a senior credit
officer for many years, supervising the
lending activities of a large branch
group, and James P. Walsh, assistant
vice president, who was chief oper-

C o^V

MEMBER

FEDERAL

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

DEPOSIT

INSURANCE

CORPORATION

Public National’ s New Office

ating officer at the Broadway and 24th
Street office. In addition to these offi
cers, the office will be staffed with
highly experienced and efficient per
sonnel, many with long service in the
bank, including several who are re
turned veterans.
The new central location is the cul
mination of a long search for suitable
banking quarters in the Fifth Avenue
area. The bank’s steady growth and
extension of its banking facilities over
the past few years have made it in
evitable that such a location would be
needed. The new office will serve the
interests of its many depositors in the
midtown area and provide Public Na
tional service for new accounts.
The office, which comprises 15,000
square feet of banking space, is re
garded as one of the finest banking
quarters in the city. The spacious and
conveniently situated quarters were
especially designed for banking oper
ations. Adequate safe deposit facili
ties are provided.
The most recent statement of condi
tion, March 31, 1946, of The Public Na
tional discloses capital, surplus and
undivided profits totalling $27,276,000,
deposits
$524,091,000, and total re
sources $558,422,000.

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Home Cost Up 44 Per Cent
It costs 44 per cent more to build a
home today than in 1940; the house
that could be built for $5,000 in 1940
costs $7,200 today, and will cost still
more six months from now, according
to a study by Northwestern National
Life Insurance Company of Minne
apolis.
Questionnaire surveys have disclosed
that four out of five veterans want
homes costing $6,000 or less. By
shoddy construction, popularly known
as jerrybuilding, a house can be thrown
together for close to 15 per cent less
than the cost of good, sound construc
tion; thus the house costing $7,200
could be cut to just about $6,000. Vet
erans and all prospective home buy
ers need to beware of a possible epi
demic of jerrybuilding, the survey
warns. The vast postwar home con
struction field is likely to attract a cer
tain proportion of “slick” operators.
Therefore the prospective b u y e r
should deal with a well established,
reputable concern, or at least be as
sured of expert inspection during con
struction. by the mortgage concern
which finances the home.
Average rise in home building costs
in 26 principal United States cities
since 1940 has been 44.4 per cent, ac
cording to the report, which is issued
by the insurance company’s Family
Economics Bureau.

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Federal Reserve Bank of St. Louis

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FIRST WISCONSIN NATIONAL BANK
OF MILWADKEE • W i s c o n s i n ’s B a n k f o r B a n k s
MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Northwestern Banker, May, 1946

Guaranty Trust Company o f New York
FIFTH AVE. OFFICE
Fifth Ave. at 44th St.

MAIN OFFICE
140 Broadway

MADISON AVE. OFFICE
Madison Ave. at 60th St.

To b e o p e n e d : R O C K E F E L L E R C E N T E R O F F IC E , 10 R O C K E F E L L E R P L A Z A

LONDON • PARIS • BRUSSELS

Condensed Statement of Condition, Marcii 31, 1946
RESOURCES
Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers
. . . .
U. S. Government O b l i g a t i o n s ............................................................................. ' ..............................
Loans and Bills P u r c h a s e d ....................................................................................................................
Public S e c u r itie s.................................................................................................$
8 5 ,5 8 3 ,9 2 0 .3 2
Stock o f the Federal Reserve B a n k ..........................................................
7 ,8 0 0 ,0 0 0 .0 0
Other Securities and O b lig a tio n s.................................................................
1 6 ,8 4 1 ,5 4 3 .8 1
Credits Granted on A c c e p t a n c e s .................................................................
2 ,8 8 2 ,9 3 6 .4 5
Accrued Interest and Accounts R ece iva b le.............................................
1 0 ,9 4 0 ,5 0 2 .9 4
1 ,5 8 5 ,2 4 9 .9 0
Real Estate Bonds and M o r t g a g e s ..........................................................
Items in Transit with Foreign Branches and Net Difference in
Balances between Various Offices Due to Different Statement
Date o f Foreign Branches .......................................................... ......
6 ,6 9 4 .4 3

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

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

Bank Buildings
Other Real Estate
Total Resources
LIABILITIES
C a p i t a l ....................................................................... .............................................
Surplus F u n d .......................................................................................................
Undivided P r o fits.................................................................................................
Total Capital Funds ..............................................................................
General Contingency R e s e r v e .......................................................................
D e p o s i t s ..............................................................................................................
Treasurer’s Checks O u ts ta n d in g .................................................................
Total D e p o s i t s ............................................. ...... ......................................
Bills P a y a b l e ........................................................................................................
A c c e p t a n c e s .......................................................................................................
Less: Own Acceptances Held for I n v e s t m e n t .......................................

9 0 ,0 0 0 ,0 0 0 .0 0
1 7 0 ,0 0 0 ,0 0 0 .0 0
5 4 ,8 6 5 ,9 4 0 .9 7
$

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

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

Liability as Endorser on Acceptances and Foreign Bills .
Dividend Payable April 1, 1 9 46
.................................................................
Accounts Payable, Reserve for Expenses, Taxes, etc...........................

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

Total L iab ilities....................................................................................

Securities carried a t $989,985,381.40 in th e above S ta te m e n t are pledged to qu alify for fiduciary pow ers, to secure p u blic m on eys
as required by law , to secure Itills P ayable, an d for oth er purposes. T h is S ta te m e n t includ es the resources and liabilities o f the
E n glish , F ren ch , an d B elgian B ranch es as o f M a rch 26, 1946.

EUGENE W. STETSON
Chairman of the Board

W. PALEN CONWAY
Chairman of the Executive Committee
WILLIAM L. KLEITZ
Vice-President

J. LUTHER CLEVELAND
President

DIRECTORS
GEORGE G. ALLEN
Director, British American Tobacco Company, Limited,
and President, Duke Power Company
WILLIAM B. B ELL
President, American
Cyanamid Company
F. W. CHARSKE
Chairman, Executive
Committee, Union Pacific Railroad Company
J. LUTHER CLEVELAND
President
W. PALEN CONWAY
Chairman of the
Executive Committee
CHARLES P. COOPER
Vice-President,
American Telephone & Telegraph Company
WINTHROP M. CRANE, JR.
President,
Crane & Co., Inc., Dalton, Mass.
STUART M. CROCKER
President,
Columbia Gas & Electric Corporation

JOHN W. DAVIS

of Davis Polk Wardwell
Sunderland & Kiendl
ARTHUR C. DORRANCE
President.
Campbell Soup Company
CHARLES E. DUNLAP
President,
Berwind-White Coal Mining Company
GANO DUNN
President, The J. G.
White Engineering Corporation
WALTER S. FRANKLIN
Vice-President,
The Pennsylvania Railroad Company
LEWIS GAWTRY
JOHN A. HARTFORD
President,
The Great Atlantic & Pacific Tea Company
CORNELIUS F. K ELLEY Chairman of the
Board, Anaconda Copper Mining Company

MORRIS W. KELLOGG
Chairman of the
Board, The M. W. Kellogg Company
CHARLES S. MUNSON
President, Air
Reduction Company, Inc.
WILLIAM C. POTTER
Retired
GEORGE E. ROOSEVELT of Roosevelt & Son
EUGENE W. STETSON Chmn. of the Board
ROBERT T. STEVENS
Chairman of the
Board, J. P. Stevens & Company, Inc.
THOMAS J. WATSON
President,
International Business Machines Corporation
CHARLES E. WILSON President, General
Electric Company
ROBERT W. WOODRUFF
President,
The Coca-Cola Company

M em ber Federr 4 Deposit Insurance Corporation

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

IN V E S T M E N T S
'

Stuff With Mjortff Term Governments—
Mint Don ’t Chase Them
It Looks Like a Modest, Carefully Controlled
"De-Flation" Is in the Making
By RAYMOND TRIGGER
Investment Analyst
New York City
NCE again the actual course of
events has crossed-up the ex
perts. Bond prices resumed
their upward trend in the closing days
of March. In high disrepute is the
rough and ready, over-simplified art
of forecasting long-term bond prices.
The credit base has been narrowed, in
significantly thus far, but a trend
emerges. In the few weeks from the
end of February to early-April, Fed
eral Reserve credit shrank $830,000,000, and excess reserves fell by $320,000,000. In sum: The ever-expanding
money supply in the country has con
tracted a little. Nothing like deflation
is in the cards, but a modest, carefully
controlled “de-inflation” is in the mak
ing.
There will be a smart reduction of
total Federal obligations outstanding
by the end of this fiscal year. Already
close to $5,000,000,000 have been paid
off and the total should be $7,400,000,000 by July 1st. Left with little choice,
in view of the pressing need for even
a modest return, investors, banks and
non-banks have been rolling over into
the higher-yield, albeit longer-term,
obligations.
Two to six-year terms have weak
ened notably, in relation to long non
bank 2%s in recent weeks. Thus yield
on the 2s of December 1951/49 to call
date has risen 17 basis points while
that provided by long, non-bank 2V2s
fell seven or eight basis points. Most of
this is the result of operations by non
bank investors since the long “bank”
2V2s rose, price-wise, no more than a
single basis point.
Inevitably, relative changes in yield
create opportunities. At the moment,
the most appealing buys are in the
two-three year bracket. The 2s of
March 1950/48 yield almost 1 per cent
and the 2s of December 1951/49 will

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Federal Reserve Bank of St. Louis

This is a discussion of factors
affecting your investment port
folio. If you have any questions,
or if you find yourself in dis
agreement with comments here
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
column discuss specific securities.

return 1.15 per cent. The longer 2s
have held up better, marketwise, and
are relatively less interesting. There’s
little justification for reaching out
three years further to call date for a
yield betterment of only 0.15 per cent.
Shifting forces just reported have
had little effect on Certificates and the
one-year stuff. They’ve been rela
tively firm. One-year Certificates gave
way one basis point, net, between
early March and April 3. Briefly,
while adjustments to the 5 per cent
war loan call were being made in the
closing week of March, they were
somewhat heavier, but came back en
couragingly in later trading.
It may be that this short-lived un
settlement, due to a call for cash to
care for the mid-March and later debt
retirement operations, has set a pat
tern that will prevail for the next sev
eral months. If so, the concern from
here out will once again be for a place
to invest the existing plethora of
funds. This naturally expresses itself
in renewed confidence in the level of
long-term interest rates.
Reviving demand for commercial
loans has had no disturbing effect.

For the moment, at any rate, the mem
ber banks and larger financial insti
tutions have the market comfortably
in hand. Admittedly, the potential
control powers of the authorities have
been in no way impaired and will
doubtless be invoked as and when and
if the times seem to call for such
action.
There is, however, ample
justification for making haste slowly
at this time.
It is enough at present to keep a
weather eye cocked on the longerterm effects of waning excess reserves
and waxing demand for commercial
loans.
Official policy is as yet undefined.
Not too much weight should be at
tached at this time to widely publi
cized remarks made by Treasury’s Vin
son some three months ago. A lot has
happened since the date of the Secre
tary’s Annual Report—January 21st.
The Treasury has heard, with however
little relish, the strong voice of Federal
Reserve’s Eccles and has listened, at
least to the extent of not slashing the
rate on Certificates. For the nonce,
then, our “easy money” advocates
have been gently rebuffed.
All this boils down to the likelihood
that a “middle of the road” policy will
prevail. Stay with long terms; but
don’t chase them. Look to the shorter
terms for the investment of new
money.
The corporate market has been with
out particular feature in the past sev
eral weeks, firming only in line with
the “bank” 2V2s. This, however, has
been due more to call prices which
now place a virtual ceiling on high
grade corporates with such notable ex
ceptions as the Union Pacific 2V2s and
2%s, the currently non-callable Vir
ginian Ry. 3s and Kansas City Ter
minal 2%s of 1974. Another issue was
Northwestern Banker, May, Ì946

Investments

added to the unrestricted category by
the offering of $125,000,000 Shell Union
Oil 2Mis of 1971 at 101% on April
15th. This 2A issue, yielding some
45 basis points more than the bank
2%s without being restricted by a
nearby call price, is relatively attrac
tive. Sinking Fund will retire 67 per
cent of the issue. The initial sale was
nevertheless on the slow side.
Giving evidence of greater selectiv
ity, a number of recent syndicates have
had to be terminated. Among these
are the Union Pacific 2%s of 1991 and
the Great Northern 2%s of 2010. Union
Pacific 2%s are still only moderately
attractive, fractionally under the of
fering price of 102.19, but Great Nor
thern 2%s are a buy at the 1% point

hwest ern Banker, May, 1946
Digitized for Nort
FRASER
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Federal Reserve Bank of St. Louis

concession now prevailing and yield
ing more than Sopac 2%s of 1996. The
$25,000,000 Great Northern 214s of 1961
are still on the sticky side at the syndi
cate price of 100 and may be due to
break in view of the 2.33 per cent yield
from Southern Pacific 214 s of 1961, es
pecially since long Great Northerns
failed to stand up relative to long
Sopacs. The better Great Northern
credit has not been reflected pricewise.
The $30,000,000 issue of Pennsylvania
Company Serial Notes met selective
buying with easy going for the most
attractive maturities. The issue has
been well placed, but not completely,
and that mostly because of withdrawal
of over a third of the total amount by
underwriters for their own retail dis

tribution.
Longer maturities have
plainly been priced to reflect the status
in respect to the State of Pennsylvania
4 mill tax, and are thus not generally
attractive to investors in other states.
United Biscuit 2%s of 1966, with a
3B rating and offered at 102 to yield
2.61 per cent quickly went to 103% to
yield 2.53 per cent. This makes the
recently offered Tennessee Gas &
Transmission 2%s of 1966, with a 1A
rating look particularly attractive at a
price only fractionally higher to yield
about 2.50 per cent. # #

Selling 46,000 Shares
Knapp and Company, Cedar Rapids,
Iowa, investment securities dealers,
the partners of which are Russell F.
Knapp, Henry I. Gundling, Sam S.
Johnson and Lowell M. Taylor, were
instrumental in forming an underwrit
ing group to sell 46,050 shares com
mon stock of Curtis Companies, Inc.,
Clinton, Iowa. Upon authorization by
the principal stockholders of Curtis,
an underwriting group composed of
Cruttenden & Company, Chicago; First
National Bank of Lincoln, Nebraska,
and Knapp and Company was organ
ized. The sale of this stock is in be
half of certain stockholders with Cur
tis Companies receiving no proceeds
and the Curtis family retaining the
majority of the outstanding stock.
Organized in Clinton, Iowa, in 1866
by C. F. Curtis and G. M. Curtis, Curtis
Companies has grown from a small
planing mill into one of the largest and
best known manufacturers of a com
plete line of stock woodwork used in
home building.
Curtis Companies own and oper
ate seven thoroughly modern, wellequipped woodworking factories, in
Clinton, Iowa, and Wausau, Wiscon
sin, with others located in Chicago,
Lincoln, Minneapolis, Sioux City, Iowa,
and Topeka, Kansas.
During the early years of the war
the company produced woodwork used
in prefabricated homes and later manu
factured wooden ammunition boxes.

Elections Announced
S.
Sloan Colt, president of Bankers
Trust Company of New York, has an
nounced the election of Edmund F.
Ebert, formerly assistant treasurer, as
an assistant vice president. Mr. Ebert
will be associated with E. S. Chappelear in the commodity division of the
banking department. Edgar C. Earle
also was elected an assistant vice presi
dent and will assist W. F. Rutherford
in the personnel department. Edgerton P. T. Jennison and Harry F. Tappen were elected assistant treasurers
and will continue their association
with the credit and security research
department.

Investments

G. L. Todd Named President
George L. Todd, executive vice
president, was elected president of
The Todd Company, Inc., of Roches
ter, New York, disbursement-equip
ment manufacturer, at an annual
stockholders and directors meeting
held recently. He replaces Walter L.

merchandising activities and organi
zation procedures for the company.
Walter L. Todd, the former presi
dent, has been associated with the
organization since 1909. Following
training in various departments of the
business, he became active in sales
work and from 1912 to 1917 was gen
eral sales manager. In the Navy De
partment in Washington during World
War I, he returned to devote himself
to general management, research, and
product development activities. He
became president in 1931.
Other officers of the company, re
elected, are: A. Richard Todd, vice

president in charge of manufacture;
Charles E. Bradford, secretary; and L.
S. Callaghan, treasurer and comptrol
ler.

Handles Veterans Loans
John Pisarkiewicz, who recently re
turned to the Mercantile-Commerce
Bank and Trust Company of St. Louis,
after four and one-half years of mili
tary service, has been appointed man
ager of the bank’s war veterans’ loan
department. He will handle all inter
views in connection with loans to vet
erans under the provisions of the serv
icemen’s readjustment act.

pilll!!llll!ll!!ll!l!!l!ll!IIIIIIIIIIIII!lll!!l!lll!lll!llli:illi:il!lll!IlllllllllIllllll!llll!l!II!ll!Illi:!llll!l!!UII!ll!!l!ll!l!lllllllllllllllll!l!III!l!ll!!llll!lll!!llllllllllllllll]!ll!llllllllllllll!lill!l!llll!l!lllllll!lllllll!IIIIIIIIIIIIIII!llll!llg

W A L T E R L. T O D D
Now Board Chairman

GEORGE L. T O D D
Becomes President

Todd, who has become chairman of
the board of directors.
Simultaneously a n n o u n c e m e n t s
were made of the promotion of L. S.
Callaghan to the post of treasurer, a
responsibility formerly held by George
L. Todd in connection with his duties
as executive vice president, and of the
election of Raymond H. Barr, manager
of the company’s machine division, to
the board of directors.
A graduate of Cornell in 1926,
George Todd spent a year at Princeton
where he took post-graduate work and
immediately thereafter, in June, 1927,
joined the company established in
1899. In his early years he served
chiefly as director of sales and became
executive vice president in 1938. In
that capacity he has been in charge of

Nationwide
In s titu tio n a l S erv ice
Banks, insurance companies and other large in
stitutional investors find the nationwide facilities
of our Institutional Department of great ad
vantage. Through our 90 offices, strategically
located throughout the country and connected
by direct private wires, we are able to secure in
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In addition, the members of our staff are well
acquainted with all types of securities and vari
ous market activities, and are competent to pro
vide valuable assistance in the many investment

1 9 1 3 _______

problems facing the institutional investor.

THOMSON &

In view of prevailing market levels, the services
of such a well-rounded Institutional Department

M cK i n n o n

more than ever may prove to be helpful and con
structive. W e shall be glad to discuss the facili

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COMMODITIES

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D E S M O IN E S

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venience and in confidence.

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Branches in 34 Cities

Write for our weekly Stock Survey

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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1946

Investments

Joins Bankers Trust, N. Y .
C. A. Hemminger has become a
member of the newly created Develop
ment Department of Bankers Trust
Company of New York as advertising
manager.
For the last three and a half years
Mr. Hemminger has been director of
the New York State Bankers Associ
ation’s news bureau and editor of the
New York State Banker.
Prior to joining the New York State
Bankers Association Mr. Hemminger
was director of public information for
the Taxpayers Federation of Illinois,
director of publicity for the State of

Illinois Department of Public Works
and Buildings and editor of several
Illinois newspapers.

Americans Eating Better
Despite the current crisis in the food
situation, the American public has
been eating better than is generally
appreciated, and the food outlook is
relatively promising for this year, ac
cording to The Northern Trust Com
pany of Chicago’s “Business Comment”
for May.
Annual per capita food consumption
from 1942 through 1945 averaged
about 8 per cent over the 1935-1939

average, with a 1944 peak of 11 per
cent above 1935-1939.
“ The fact that all foods were not
equally in good supply led many peo
ple to the erroneous conclusion that
scarcities predominated in the over
all pictures. With the exception of
butter and sugar, however, civilian
allotments of most major categories of
food were either equal to or exceeded
prewar supplies,” the article points
out.
A factor causing distortion of the
over-all picture was the tremendous
demand generated by increased pur
chasing power. Income payments to
individuals more than doubled, while
food prices rose only 40 per cent.

Joins Trust Department
The board of directors of the First
National Bank of Omaha has elected
John Shelton Bundy assistant trust
officer. Mr. Bundy went to Omaha

B O N D S

JOHN S. B U N D Y
Assistant Trust Officer

after serving three years with the
army finance department in the Pacific
Theatre. Prior to that time he was
in the investment department of the
Michigan Trust Company at Grand
Rapids, Michigan. He had previously
spent five years with Halsey Stuart
Company, investment bankers in Chi
cago.

Public Utility
Industrial
Railroad
Municipal

Baseball Party

A .C .A L L Y N a^ c o m p a n y
Incorporated
10 0 W e s t
N ew

Y ork

M ilw a u k e e

O m aha

or th w es te rn Banker,
Digitized for NFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

W a te r lo o

May,

1946

M onroe

S tr e e t, C h ic a g o
B o sto n

K a n s a s C ity

M in n e a p o lis
M o li n e

Four hundred correspondent bank
ers from five states attended a base
ball party last month, when the Kan
sas City season opened, as guests of
City National Bank & Trust Company
of Kansas City, Missouri. City Na
tional was host at a banquet at the
Hotel Muehlebach the evening follow
ing the game.

Investments

Foreign Trade Boom
The export business of the middle
west will reach around four billion
dollars annually, or about 38 per cent
of the total, after normal trade rela
tions are resumed, A. M. Strong, vice
president and head of the foreign de
partment of the American National
Bank and Trust Company of Chicago,
told members of the American Insti
tute of Banking at their forum last
month in the Chicago Bar Association
quarters.
“ In 1939 total manufactures of the
United States were approximately 57
billion dollars. The central west pro
duced over 21 billion, or 37.6 per cent.
The Chicago industrial region almost
trebled its output of goods since the
beginning of the war, rising from 4.3
billion dollars in 1939 to 11.9 billion
in 1944.”
He said official estimates are for ex
ports of goods and services reaching
10 billion dollars a year and “since
about 38 per cent of our exports come
from this area, the middle west ex
ports will be close to four billion dol
lars.”
The foreign trade outlook for the
United States was never brighter and
for the next few years will exceed all
previous records. He added, however,
that business men in the central west
must get rid of the erroneous impres
sion that foreign trade is complicated
and hazardous.
“There is no basic difference be
tween a foreign and a domestic trans
action. An export to Brazil or an
import from Australia, if competently
handled, can be as simple and as safe
as a sale in Indiana or a purchase in
Michigan. Our traders must under
stand that foreign business is as safe
an enterprise as domestic transactions,
that the credit loss on foreign trans
actions is extremely small, and that if
ordinary safeguards are applied it is
as safe to sell in Uruguay as it is to
sell in Chicago.

Elected Vice President

association of lending institutions
which hold mortgage investments in
Greater New York.
Mr. Kilpatrick returned to the bank
recently after serving as a lieutenant
colonel in the Engineers Corps during
the war.

fl i / e

Thomas J. McCullough has been
elected vice president of the First St.
Joseph Stock Yards Bank of St. Joseph,
Missouri, and will also continue as
cashier, a position he has held for
some time.

Ojfen.. .

G. I. 501 MORTGAGE LOANS
For Immediate and Future Delivery from the
Following States
A rkansas.......................... $150,000 Michigan .......................... $300,000
Iowa .................................. 150,000 Missouri............................ 300,000
Louisiana.......................... 200,000 Tennessee ........................ 250,000
Texas ...............................$400,000

Write, wire or phone for details
W e A re Interested in Buying F. H. A . Title 6 or Title 2 Loans From A n y State

DON McMURRAY
Phones: 4-8173 or 5-4279

*7Ae National Qomizautf, c/
Masonic Temple Buildins, Des Moines 9, Iowa

I N F O R M E D ACTION IS T H E KEY TO S U C C E S S F U L I NVESTING

Fora Balanced
Investment Structure
T o m a in t a in a s o u n d , b a la n c e d i n v e s t m e n t f u n d ,
e a c h n e w s e c u r it y p u r c h a s e d s h o u l d f it p r o p e r ly
a m o n g t h o s e a lr e a d y h e l d —i n p o i n t o f m a t u r it y ,
t y p e , g e o g r a p h i c a l l o c a t i o n a n d m a r k e t a b i li t y .
I n a d d i t i o n , i t s h o u l d c o n f o r m t o y o u r o v e r a ll
i n d i v i d u a l r e q u i r e m e n t s . T h i s a n a ly s is c h a r t
p r o v id e s a s im p le f o r m f o r c la ssify in g an d
o r g a n i z i n g e s s e n t ia l i n f o r m a t i o n c o n c e r n in g
t h e s t r u c t u r e o f y o u r b o n d a c c o u n t . I t w i ll s h o w
w h e t h e r y o u r a c c o u n t is w e l l b a la n c e d , s u it e d
t o y o u r n e e d s , p r o p e r l y d iv e r s if ie d . I t w i l l reveal
h o w m u c h ta x e x e m p t io n y o u h a v e , h o w
m a t u r i t i e s are d is t r ib u t e d . I t m a y g u i d e y o u t o

Returns to Chemical Bank
Colonel Alfred G. Tuckerman has
returned to the Chemical Bank & Trust
Company of New York after four years
service with the United States Army.
He is an assistant manager at the
bank’s Madison Avenue and 46th
Street office.

a d v is a b le c h a n g e s o r su ita b le fu r th e r p u rc h a se s.

Send for this Handy
Investment Analysis Chari
HALSEY, STUART & CO. I n c .
123 S. La Salle Street, Chicago 90, Illinois

F o r i n f o r m e d a c t i o n i n m a i n t a i n i n g a b a la n c e d

Gentlemen : Please send me, without cost or
obligation, "Investment Analysis Chart.”

c h a r t. M a n y f in d i t u s e f u l n o t o n l y in c l a s s if y

Name __________ ,--------------------:----------------------------------

Elected Director
Harry C. Kilpatrick, vice president
of Manufacturers Trust Company of
New York, in charge of the real estate
and mortgage management depart
ment, has been elected a director of the
Mortgage Conference of New York, an

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Federal Reserve Bank of St. Louis

f u n d s t r u c t u r e , u t i l i z e t h i s h e l p f u l a p p r a is a l

i n g b u t in m a i n t a i n i n g a r e f e r e n c e r e c o r d
o f b o n d s , sto ck s a n d m o r tg a g e s . A c o p y
w ill b e se n t u p o n re q u e st, w ith o u t o b lig a tio n .

Address_
City-

Use this request form—at no cost.

-State-

NC-5

H A L S E Y , S T U A R T &. CO. I n c .
C H IC A G O

90, 1 2 3 SO UTH

LA S A L L E

STREET • NEW

YORK

5, 3 5 W A L L

STREET • AND

OTHER

PR IN CIP A L

C ITIES

Nort hwest ern Banker, May, 1946

FOR
YOUR
PROTECTION
How many loans would you make on the homes in your com
munity if they were not protected by insurance?
How many automobiles would you loan money on if they
were not insured?
The answer, of course, is "Very few if a n y !"
For your own protection, why not prepare yourself to offer
your clients the best protection available at the most reason
able rates?
W e offer a complete line of FIRE - WINDSTORM - AUTOM O
BILE and PLATE GLASS INSURANCE
Your inquiry concerning an

Agency

Contract will receive

prompt attention without imposing any obligation on you.
Write us today.

WESTERN MUTUAL
FIRE INSURANCE CO.

Nort hwest ern Banker, May, Ì946

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

IN: SU
RANC
E
y
-iù- l'"'''î: 'y-'-r
•-. .•\t.-’■

My
Best
Is the Telephone

How Co!d Canvass by Telephone Brought
Top Production in One Year
HEN I decided in the spring of
1943 to go into life insurance in
New York City I hardly knew
anybody in town to be approached as
a prospect or prospective “center of
influence.” Thus, I felt that cold can
vass should be tried first.
My home was situated in Jackson
Heights, a good middle-class suburb
with apartments and two - family
houses, the right section to start with,
but not a section for ringing doorbells.
It was a heavy decision which I then
made—SELLING BY PHONE.
I rented the geographical telephone
directory for my county, as it exists
for all urban territories, which lists
the subscribers by streets. I absorbed
all that was written about selling by
phone and prepared a very brief ap
proach. I checked it with the watch
until I had it down to two minutes.
Then I rehearsed it in front of a mir
ror in order to learn to keep constantly
smiling. The gist of my speech was
that as a licensed life insurance man
I was giving in this section a free pub
lic service regarding the Social Secur
ity benefits.
I realized that most men could be
reached at their home only at night.
But that short time was needed for
the actual visit. So, in order to utilize
the daytime I had to phone the wife,
try to arouse her interest and make
through and with her a tentative ap
pointment with the husband for after
dinner.
It was a Tuesday at 10 a. m. when
I sat down at my desk, took a deep

By WERNER KRAFT
College Point, N. Y.
breath, gathered all my courage and
started. That morning I phoned for
two hours and dialed about 30 times.
Ten of these calls were useless; the
wife wasn’t in. Ten wives either re
jected or volunteered the information
that the husband was a civil servant,
in the army, a self-employed person or
whatever other reason eliminated So
cial Security.
The husbands of 10 wives, who were
at the phone, were eligible. From
them I got varying replies and reac
tions, for example:
“My husband knows all about Social
Security.”
So I replied: “That’s fine, but sup
pose something happens to him be
tween now and tonight, then his
knowledge would be of no use to you.
And it is mainly for the benefit of the
wife and the children that this service
is given. And since there is no charge
anyway, there is no harm in discussing
it for half an hour tonight, is there?
When are you through with your din
ner?”
From this morning’s calls I arranged
for five appointments spread over two
evenings and one morning. All these
appointments were, of course, very
loose. Some wives had not understood
what it was all about. Some forgot to
tell their husband about it. But all
that did not matter. The main thing
was that when I came in that evening
I had reason for coming and I could

“ The

W E R N E R K R A FT
Telephone Is M y Friend”

state that I had arranged this visit
with the wife.
Most men were first very reserved.
But in almost all cases they asked me
in and hardly any visit lasted less than
an hour. Sometimes I parted close to
midnight after refreshments had been
served. Needless to say that when a
man has finished his day’s work, had
a good dinner and is then willing to
chat with you he is relaxing and in a
more favorable mood than at any office
time.
On Saturday of my first week I sold

Didyouknow

that our Cash Letter Policy not only gives protection
but enables you to cut operating expenses substantially?
Ask us for details. You will not obligate yourself.

Scarborough & Company
In s u r a n c e C ounselors

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Federal Reserve Bank of St. Louis

F IR ST N A T IO N A L B A N K B L D G . • C H IC A G O

, IL L . • STATE

4 3 2 5

to B anks
Nort hwest ern Banker, May, 1946

Insurance

my first policy, $5,000 ordinary life.
Since that time I have sold that same
customer two more $5,000 life policies.
A year later I acquired the broker’s
license, and before I had notified my
clients, this first customer happened to
phone me for household fire and bur
glary insurance and a fur floater. A

few months ago he bought a car and
bought the auto insurance from me.
Long before I had finished phoning
all Jackson Heights prospects, I had
picked up through these contacts most
valuable business contacts. To give an
example, I had made a tentative ap
pointment with a wife. When I came

in the evening the husband had an air
raid-warden meeting. When I tried
the third time I caught the couple leav
ing the house for an informal afterdinner visit at friends. The man and
I sat down for a few minutes in the
lounge of the house and chatted about
the Social Security benefits, where
upon he became so interested that he
asked his wife to go out alone while he
took me back to his apartment. In two
visits I overhauled his entire life in
surance program and told him that in
consideration of his entire situation he
need not buy more insurance.
I still have his voluntary letter of
thanks written on the stationery of his
firm, of which he was then a junior
executive.
It is not always important to sell to
the first prospect. It can be more im
portant to build up a “Center of Influ
ence” and an executive of one of the
leading industries is certainly a most
desirable center of influence.
When after four months I was
“through” with phoning J a c k so n
Heights homes, I had built up not only
valuable direct business, but also con
tacts with the Manhattan business sec
tion of New York. These I followed
up thereafter and supplemented by
telephone-canvassing of Manhattan
offices.
In Jackson Heights, contacting the
home for an evening visit, the Social
Security approach as a bridge to life
insurance was ideal. When contacting
offices by phone I found that anything
related to life insurance was hamper
ing—on the phone only.
That was the instigation for me to
take out the broker’s license in order
to have a wide variety of ways of ap
proach. When phoning offices I found
the comprehensive personal liability
policy an ideal starter—for three rea
sons:
A small matter as far as size of pre
mium is concerned.
A complex of risks which everybody
understands and w h i c h concerns
everybody.
A field which is neglected to an

Sorry,

Nort hwest ern Banker, May, 7946

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

sir,

the family’s away for the
week-end !

Insurance
amazing extent.
In brief, just the ideal door or con
versation opener.
Just before I became a broker my
first 12 months in life insurance ended.
My paid-for production during this
period would have qualified me for the
top club of any company had I sided
with one company exclusively.
If I had to start all over again I
would not mind the place nor any lack
of acquaintances.
One dependable
friend who will bring me sufficient
business everywhere I shall always
have—The Telephone. # #

Bank Has Legion Post
Initiation and installation ceremo
nies of the recently-organized FirstChicago Post No. 985 of The American
Legion were held in the main banking
lobby of The First National Bank of
Chicago last month. The state cham
pion ritual team of Naval Post No. 372,
under the direction of Clarence Har
per, chairman of the State Ritual Com
mittee, conducted the initiation cere
monies. Perce Brautigam, past Cook
County Commander, was the installing
officer. The bank’s orchestra of 50
pieces and choral club of 75 voices
provided suitable patriotic music and
songs for the occasion.
The First-Chicago Post was organ
ized in February by employes of The
First National Bank of Chicago, of
whom 567 served in World War II, and
to date has 310 members.
The Post plans active participation

A Few
Hail Insurance
Agencies Open
You may be able to secure a
desirable agency connection
with the largest exclusive hail
insurance company operating
in Iowa and Missouri.
This strong, well managed
company supplies hail insur
ance at low cost. Makes settle
ment promptly.
Investigate.

SQUARE DEAL
Insurance Company
(Mutual)
DES MOINES, IOWA

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Federal Reserve Bank of St. Louis

in welfare, Americanism, veterans’ re
habilitation, and other Legion activi
ties. The officers of the Post are:
Commander, John S. Gleason, Jr.;
senior vice commanders, Edward H.
Martin and Ross A. Munn; junior vice
commanders, James H. McGrath and
Robert C. Nordell; adjutant, William J.
Korsvik; finance officer, John A. Foy,
and sergeant-at-arms, Joseph A. Crow
ley.

Diebold Elects
At the 87th annual meeting of the
stockholders of Diebold, Incorporated,
held at the executive offices in Canton,
Ohio, last month, three new members
were elected to the board of directors
and six members were re-elected. Of
the three new members, two are from
New York City, Daniel Maggin and
John R. Barry, and one, James C. Gruener, is from Cleveland. The nine men
elected to the board of directors are:
John R. Barry, New York City;
George H. Bockius, Canton, Ohio; Or
ville H. Foster, Jr., Detroit, Michigan;
James C. Gruener, Cleveland, Ohio;
Wm. C. Knorr, Cleveland, Ohio; Daniel
Maggin, New York City; Eliot Ness,
Cleveland, Ohio; J. Brenner Root, Can
ton, Ohio; and Loren E. Souers, Can
ton, Ohio.
At the meeting of the new board of
directors immediately following the
annual stockholders’ meeting, the fol
lowing officers were named to lead the
company through the ensuing year:
Eliot Ness, chairman of the board of
directors; George H. Bockius, presi

Des Moines, Iowa

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dent; Daniel Maggin, vice president;
A. W. Jackson, vice president in charge
of sales; Lyman H. Clark, vice presi
dent in charge of industrial relations;
John P. Paca, vice president in charge
of product engineering; John E. Raber,
vice president in charge of production;
Ramon Wyer, treasurer; Loren E.
Souers, secretary, and John W. Kemp
er, assistant treasurer and assistant
secretary.
Mr. Maggin’s post as vice president
is a new one in which he will serve as
industrial and financial consultant.

Longer life for people
past 40
If you are forty today, your chance
of celebrating your 70th birthday is
excellent. Even this comforting picture
may soon change for the better, as
geriatrics adds extra years to the prob
able life span.
“ Geriatrics?”
We call it “ the science of helping
older people enjoy life longer.” It em
braces preventive medicine as well as
remedies . . . diet, exercise, mental and
physical adjustment to advancing years.
Its aim is to make the last half of life
a time of fulfillment, years of pleasure
and accomplishment.
Perhaps its most welcome boon is the
allaying of fear and misgivings that
come in later life. True, illnesses tend to
multiply with age. But geriatrics prom
ises to make them less threatening.
Indeed, among the two hundred or
more drugs discovered yearly, s o m e such as sulfa, penicillin, and strepto
mycin— may some day rout completely
diseases long believed the almost in
evitable fate of the elderly.
But health is only half the prescrip
tion for a happy old age. The other
is financial solvency, based on a sound
savings and life insurance program.
Such a program demands the best
advice you can find. Because your
NWNL agent is paid not for the amount
of insurance he sells you bu t f o r the
a m o u n t y o u k eep i n f o r c e , he has a prime
interest in providing you with the right
kind and amount of insurance, measured
by what you need and can afford.
He can help you to peace of mind
and a happier life, through all its years.

N orthwestern JV ation cd Life
INSURANCE

CO M PA N Y

W r it e fo r our lib era l p rop osition to
bank rep resen ta tives.
This is an adaptation o f NwNL 's latest national advertisement

Nort hwest ern Banker, M ay, 1946

This is NORTHWESTERN Bank's
Six-Man Team for Complete Bond Service

W E N D E LL T . BURNS
V ic e -P r e s id e n t

E. RO SS COLBURN
A s s is ta n t S e c r e t a r y

O . JA C K T A L B O T
R e p r e s e n t a t iv e

W IN S T O N L. M O L A N D E R
A s s is ta n t S e c r e t a r y

T. W . PELTON
R on d T ra der

JO H N H . M ID D L E M IS T
R e p r e s e n t a t iv e

These are the men who are ready and willing to assist our Correspondent
Banks with every type o f problem concerning their Bond Portfolios.
Their specialized experience and their wide market contacts, together with
our library of investment information, are at your disposal. Ask us for
assistance in reviewing and planning your portfolio.
W e specialize in the sale and purchase o f Municipal and Government Bonds.
Joseph F. Ringland, President

DEPARTMENT OF BANKS AND BANKERS
P.* E* Cr<m ley
rice President

L. P. Gisvold
Asst. Vice President

Carl F. Wieseke
Asst. Cashier

A. F. Junge
Asst. Cashier

Keith M . Barnett
Representative

Morrow Peyton.
Representative

j NORTHWESTERN NATIONAL BANK of Minneapolis
Marquette Ave.— Sixth to Seventh St.
M em ber Federal Deposit Insurance Corporation

I---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1
Northwestern Banker, May, 1946

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Federal Reserve Bank of St. Louis

M in n e so ta

N EW S
GEORGE A. BEITO
President
Gonvick

W ILLIAM DUNCAN, Jr.
Secretary
Minneapolis

Meet in Moorhead

the banking profession for the past
15 years.
The Farmers & Merchants Bank is
now in the midst of an expansion pro
gram and is moving into new quarters
which are being remodeled across the
street from the present location.

ier. Mr. Roehl has just left for the
army. In addition to the officers men
tioned above, H. F. Hughart completes
the board of directors.

Announce Promotions
The board of directors of the Sibley
County Bank of Henderson, Minnesota,
voted Edwin B. Maurer in as president
from his old position of cashier, which
he held for eight years. E. H. Schrupp
is now vice president and cashier.
Two new directors have been added
and they are R. A. Hendrickson and
L. A. Schreiber. Other directors are:
Joe Wiest, Bernard Maurer, C. F. Whitford, Mr. Schrupp and Edwin B. Maur
er.

Representatives of 23 Park Region
Clearinghouse Association banks met
in Moorhead, Minnesota, Country Club
last month, with O. M. Alme, president
of the association and vice president of
American State Bank of Moorhead,
Becomes Cashier
presiding. The association includes
Vance Weaver was elected cashier
banks of Clay, Becker, Wilkin and Duluth Veteran Returns
of the Buffalo National Bank of Buf
William C. Lontz has returned to his falo, Minnesota, at a recent board meet
Otter Tail counties.
Following a dinner, the association duties as assistant cashier of the Bank ing. He succeeds M. L. Lundsten, vice
was addressed by G. N. Reppe of of Commerce and Savings of Duluth, president and cashier, who died last
Grand Meadow, Minnesota. Mr. Reppe, Minnesota, after three and one-half month. Mr. Weaver had served as
who is chairman of the G. I. loan years service in the army finance de assistant cashier for many years be
committee of the Minnesota Bankers partment at Camp Ripley, Minnesota, fore his promotion.
Association, discussed the work of his and a prisoner of war camp at Atlan
committee and stressed the responsi tic, Nebraska.
Joins St. Michael Bank
bility of bankers in proper administra
R.
E. Sims has joined the Security
tion of the G. I. bill. He urged bankers
Elected Cashier
to give wise counsel and courteous
Russell Gilbert, just back from the State Bank of St. Michael, Minnesota,
treatment to veterans and to encour army, was elected cashier of the Stur on his return from 32 months of active
age them in sound business invest geon Lake State Bank of Sturgeon duty with the U. S. Navy. He saw
ments.
Lake, Minnesota, by the board of di service in Okinawa, and many other
Other speakers at the meeting in rectors at the last meeting. Before points in the Pacific. Before entering
cluded Jerry Murphy of Fargo, North entering the army, Mr. Gilbert held the navy, Mr. Sims was cashier at
Dakota, loan guarantee officer of the the position of assistant cashier. Doro the Farmers State Bank of Darwin,
Fargo Veterans Facility Office, and thy Anderson, who took over Mr. Gil Minnesota. He holds the same posi
George M. Beito, president of the Min bert’s duties during his service, is tion now with the Security State Bank
nesota Bankers Association.
after his election to that post by the
assistant cashier.
Next meeting of the association will
J.
Monroe Cunningham, president of board of directors.
be in July at a place to be named. Be the bank, has retired but no successor
sides Mr. Alme, other officers of the has been named as yet.
Back With Madison Bank
association are J. Score, Vergas, Minne
Alden R. Chester has returned to
sota. vice president, and B. C. Barrett,
the
Klein National Bank of Madison,
Advanced
to
Presidency
Detroit Lakes, Minnesota, secretaryAt the last meeting of the board of Minnesota, to his job as teller and
treasurer.
directors of the Arlington State Bank bookkeeper after three years of army
of Arlington, Minnesota, O. H. Schwirtz duty.
Lengthy Naval Tour Ends
George Povey, discharged from the was elected president. E. M. Besch, a
U. S. Navy after four years of service, stockholder in the bank, was elected Named Cashier
is now back with the Cherokee State vice president to fill the vacancy left
L. R. Barker has been elected cash
by Mr. Schwirtz’s appointment. All ier of the First State Bank of BrownBank of St. Paul as teller.
other officers remain the same.
ton, Minnesota, upon his release from

Elected Assistant Cashier
H. E. Krog, recently discharged from
the army, has been elected assistant
cashier of the Farmers & Merchants
State Bank at Stillwater, Minnesota.
William D. Klapp, formerly an as
sistant National Bank examiner, with
headquarters in Minneapolis, has also
joined the staff of The First National
Bank as an assistant cashier.
Mr. Klapp is a veteran, having served
in the European area for about a year
and terminating his service last No
vember. He has been connected with

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Federal Reserve Bank of St. Louis

New Officers Named
Advancement of H. J. Dorweiler
from the position of vice president to
president was announced recently by
the Farmers State Bank of Hamel,
Minnesota. D. D. Dorweiler, who is
back from more than three and onehalf years of service in the North
Atlantic and European waters, has
been named vice president. Other offi
cers of the bank are Eugene Morin,
vice president; C. O. Dorweiler, cash
ier, and Robert Roehl, assistant cash

the army after 47 months of active
duty. Prior to his entry into the army
Mr. Barker was with the First State
Bank of Medford, Minnesota.

Cashier at Little Falls
James A. Irving of Milaca, Minne
sota, was elected cashier of the Ameri
can National Bank of Little Falls,
Minnesota, it was announced by Frank
L. Hartmann, president.
Albert A. Barton, who has been serv
ing as vice president and cashier, will
Northwestern Banker, May, 1946

Minnesota News

relinquish the latter office and will
continue as vice president.
Born at Milaca, Mr. Irving attended
school there and also business college
at Fargo, North Dakota. He began his
banking career at Fargo in 1934 and
since 1939 has been assistant cashier
of the First National Bank at Milaca.
The American National is an affiliate
of First Bank Stock Corporation.

Directors of Northwest Bancorporation declared a dividend of 40 cents
per share on 1,548,767 shares of stock
outstanding, payable May 25, 1946, to
stockholders of record as of the close
of business May 10, 1946.

Ja m ie so n

Election of John L. MacDermond,
former North Dakota and Minnesota
banker, as assistant cashier of the
First National Bank of Lewiston, Mon
tana, has been announced by A. W.
Johnson, president. R. S. Baker, who
has been vice president of the bank,
becomes vice president and cashier.

Company

Elect Assistant Cashier

New York Stock Exchange
Other Principal Exchanges

★

STOCKS
BONDS
COMMODITIES
MINNEAPOLIS
FARGO
ST. PAUL
GRAND FORKS
DULUTH
SIOUX FALLS
EAU CLAIRE
P riv a te W ir e to A ll P rin cip a l M a rk ets

In 1929 he was employed by Law
rence Stern & Company, Chicago, as
a security analyst in the research de
partment of the company. In 1932 he
entered the employ of Moody’s In
vestors Service as a junior adviser,
later being advanced to senior invest
ment adviser for a group of banks
served by the company from its Chi
cago office.

Frank S. Mayer
Frank S. Mayer, 65, banker and civic
leader in Young America, Minnesota,
died at his home last month. Mr.
Mayer had been cashier of the Young
America Bank since 1900.

G. I. Committee
Joins Midland Bank

Members
and

Forty Cent Dividend

Albert W. Gray, who for fourteen
years has been a member of the staff
of Moody’s Investors Service, has been
elected vice president of Midland Na
tional Bank of Minneapolis, according
to Arnulf Ueland, president.
Mr. Gray began his banking and in
vestment career as a clerk in the Trust
Department of Northern Trust Com
pany, Chicago, upon graduation from
Way land Academy in 1923. He left
this position in 1924 to enter Knox
College at Galesburg, Illinois, from
which he was graduated in 1928.

S.
R. Kirby, Jr., vice president of
the Northern National Bank of Duluth,
Minnesota, has been named to a sevenmember G. I. loan committee of the
Minnesota Bankers Association. Other
members of the committee are: G. N.
Reppe, Grand Meadow, chairman; W.
O. Johnson, Minneapolis; N. N. Tallakson, Willmar; George W. Werstlein,
Thief River Falls; W. H. Williams,
Minneapolis, and Ralph H. Comaford,
Minneapolis. The committee has been
set up to give advice and guidance to
war veterans on financial matters con
cerning the G. I. Bill of Rights.

Six-County Meeting

SERVICE
It has been a lon g time since we
dared write an advertisement about
service. O f course, in a relative sense
we had good reason to brag a little
throughout the wartime period, but
we felt that to speak relatively about
service w ould, in effect, dilute its
meaning. But now we really are on
the ball and our service is the good
old pre-war standard.
Our workmanship is getting better
too. During the war it slipped a little
but it is bouncing right back. Some
materials still are not so good but they
also appear to be improving and before
long should be back to normal. Our
machinery naturally has taken a beat
ing and some o f it is operating on
"borrowed time” , but the new stuff is
beginning to trickle in and it certainly
looks wonderful.
Another thing that peps us up is the
new crop o f clean-cut youngsters who
have just been added to our sales staff.

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

They are earnest and wholesome and
we think you will like them just as
much as we do. All but one o f our
veteran salesmen are back on the job,
so for the first time in many years we
will have full coverage in the field.
So what more could we ask for? A
good product to sell; a good gang to
sell it; a top-notch group to produce
it; tested methods and specialized
machines to speed up the flow in five
plants; and a far-flung market that
needs and can use what we have to
offer. W e’re out after business and we
can deliver the goods.
Whether you are interested in large
or small quantities o f lithographed
checks or whether you want to insti
tute a planned merchandising program
for the sale o f imprinted checks to
your customers, we would like you
to consider us as your source o f sup
ply. W e know how to make only one
thing, but we do mean "know how” .

Approximately 60 members of the
Six-County Regional Clearing House
Association had dinner and held a
meeting at the Princeton Hotel in
Princeton, Minnesota, last month. The
subject under discussion was the re
vised regulations of the veterans ad
ministration in the G. I. Bill of Rights.
Twenty-seven banks in the following
six counties are included in the mem
bership of this region: Benton, Isanti,
Kanabec, Mille Lacs, Pine and Sher
burne.
C. S. Morton, who is president of
the association this year, presided at
the meeting. L. H. Sherf of Isle is
vice president. Leonard Machart of
Pine City is secretary-treasurer.

Truman Banks Merge
The Peoples State and the First Na
tional banks of Truman, Minnesota,
have merged under the name of the
Peoples State Bank with total assets
of over $2,000,000. Officers of the new
bank are as follows: President, B. J.
Dallman; vice president, L. J. Hinton;
cashier, E. A. Fenrick; assistant cash
iers, E. H. Breunning and R. L. Krause.
Directors are Mr. Dallman, Mr. Hinton,
Mr. Krause, J. H. Wolf and A. M. Hin
ton.

Minnesota News

More than 1,200 bankers of the
Northwest attended the Ninth District
Conference of the Minneapolis Federal
Reserve Bank to hear reports on the
banking situation and outlook and to
take part in the program of entertain
ment.
Among the speakers was Dr. John
H. Williams, economic adviser to the
Federal Reserve Bank of New York,
who said he expects up to five years
of business prosperity after labormanagement troubles are settled and
then a stretch of several years in
which business will hold a stable and
a profitable level.
Paul W. McCracken, Federal Re
serve research director at Minneapolis,
outlined the outlook for deposits in the
Northwest in much the same manner
as his recent FRB publication on the
subject. Franklin Parsons, agricultural
economist of the bank, reviewed the
farm trends and Oliver S. Powell, first
vice president, led a panel discussion
on banking.
William Duncan, secretary of the
Minnesota Bankers Association, has is
sued a 19-page booklet on on-the-job
training for use by state bankers.
W. E. Brockman, vice president of
the Midland National Bank of Minne
apolis, has been re-elected president of
the Minneapolis Civic Center Develop
ment Association which is seeking to
improve the city’s lower loop area with
a parkway and public buildings.
Arnulf Ueland, Midland president,
speaking at the first annual meeting of
the association, said Brockman would
devote all time necessary to the proj
ect.
Among directors elected were Rus
sell Li. Stotesbery, president of the
Marquette National; William N. John
son, vice president of Northwestern
National; Guy W. LaLone, vice presi
dent of the First National.

The Minnesota Commerce Commis
sion, which earlier had approved the
application of Commercial Credit Plan,

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Federal Reserve Bank of St. Louis

By E. W. KIECKHEFER
Special Correspondent
Northwestern Banker

Inc., to do loan and savings business at
Bemidji, Minnesota, has denied appli
cations by the firm to do business at
Austin, Faribault and Brainerd. Bank
ers of those three cities had opposed
the applications.
Dexter L. Andrews, vice president
and general manager of F. H. Pfunder,
Inc., has been appointed a member of
the advisory board of the Northwest
ern National Bank’s Lincoln office in
Minneapolis. He was a Red Cross field
director during the war and is chair
man of the industrial division in the
1946 Red Cross campaign.

Deposits during the first day of oper
ation of the Highland Park State Bank
—newest in St. Paul—totaled $100,000,
according to President A. L. Ritt, who
also is president of the Midway Na
tional Bank, and Cashier G. M. Olson.
The bank has capital of $50,000 and
surplus of $10,000.
Members of the Midwest and Lake
divisions of the Association of Bank
Women celebrated their 25th anniver
sary at their April meeting. On the
program were Joseph F. Ringland,
president of the Northwestern Na

tional of Minneapolis; Henry E. At
wood, president of the First National
of Minneapolis; John De Laittre, vice
president and treasurer of Farmers &
Mechanics Savings Bank; Charles E.
Harmon, assistant vice president of
the Northwestern National, and Miss
GeneAdeve Nevin of the Northwest
Bancorporation.
Albert W. Gray has been elected vice
president of the Midland National
Bank of Minneapolis to head that
bank’s bond and investment depart
ment. He was a member of the staff
of Moody’s Investors Service for 14
years at Chicago.
Other changes at Midland included
promotion of Clifford C. Sommer from
assistant cashier to be assistant vice
president after three years in the navy;
assignment of Richard W. Peavey to
the department of banks and bankers;
appointment of John P. Knutson to be
assistant manager of the credit depart
ment and of Everett J. SAAanson and
Don R. Wyard to the same department;
selection of Silas Olson to assist in the
mortgage loan department, Ralph
Spearing to be assistant to Vice Presi
dent W. E. Brockman in the new busi
ness, commercial credits and special
services division, and John S. Irons to
be assistant manager of the instalment
loan department.
Midland held a reception recently
for 23 returned members of the armed
forces.

SPECIAL OFFER TO BANKERS
S ick n ess o r A ccid en t P o licies

p ay in g u p

$ 5 0 .0 0

a w eek

p aid u p in fu ll to the m id d le o f Ju n e, 1 9 4 6 , f o r the sm all
m e m b e r sh ip fe e .
N o m e d ica l ex a m in a tio n and n o red tape— S im p ly w rite f o r
a p p licatio n and literatu re to

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2 5 5 0 Pillsbury Ave. So.

Minneapolis 4 , Minnesota

Nort hwest ern Banker, May, 1946

Minnesota News

Yet at Marshall Bank

Hurbert Jansen

Advisory Board Members

A new employe at the First National
Bank of Marshall, Minnesota, is How
ard School, assistant cashier, former
ly of Hankinson, North Dakota, and a
discharged veteran.

Hurbert Jansen, cashier of the Rog
ers State Bank in Rogers, Minnesota,
died after a lingering illness recently.
He had been associated the past 18
years with the State Bank as clerk,
then as cashier, ever since his gradua
tion from business college 18 years
ago.

J. F. Ringland has announced the
appointment of three new members to
the advisory boards of Northwestern
National Bank offices. Richard E.
Crawford has been named to the board
of the Lake Street office. He is presi
dent of the Minnesota Valley Natural
Gas Company.
Dexter L. Andrews and DeWalt H,
Ankeny have been named to the ad-

Oakland Bank Liquidates
Stockholders of the State Bank of
Oakland, Minnesota, have voted to liq
uidate their holdings and arrange
ments have been made for the First
National Bank in Austin to assume the
deposit liabilities of the Oakland bank.
The bank has been in operation for
35 years. G. N. Reppe has been presi
dent of the State Bank.

Takes Six Months Leave
Wallace McMillan, vice president of
the Houston State Bank of Houston,
Minnesota, is enjoying a six months
leave of absence from his duties by
visiting his summer home in Hokah
where he is looking after his stock
business.

C h e m ic a l ,
b a n k
Sc

T R U S T COM PANY
Founded 1824

165 Broadway, N ew Y ork
C O N D E N SE D ST A TE M E N T O F C O N D IT IO N
At the close o f business, M a r c h 3 1, 1946
ASSETS
,528,634.46
Cash and Due from Banks---------1,489,185.98
U. S. Government Obligations.
',133,177.82
Bankers’ Acceptances and Call Loans
,147,085.23
State and Municipal Bonds------------------,368,645.54
Other Bonds and Investments-------------1,234,091.16
Loans and Discounts------------------------- 284,793.50
*Banking H ouses-------------- ------------------10,194.37
*Other Real Estate------------------------------ 213,992.68
Mortgages.
,821,501.38
Credits Granted on Acceptances.
Accrued Interest and Accounts
1,625,031.58
Receivable------------------------,117,291.62
Other Assets--------------------------$1,424,973,625.32
LIABILITIES
_____
$25,000,000.00
Capital Stock_____
65,000,000.00
Surplus______
.
11,468,497.47
Undivided Profits.
,871,444.53
Unallocated Reserves—
4,402,947.06105
Reserves for Taxes, Expenses, etc.
Dividend Payable April 1, 1946
Acceptances Outstanding $3,154,539.39
(Less own acceptances
held in portfolio )
164,040.83
Other Liabilities ------------ ---------------- -----Deposits (including Official a nd Certified
C h eck s

O u tsta n d in g

7 768, 100. 18)

$ ,

,187,459.25
,125,000.00

,990,498.56
711,342.93

1,309,087,880.05
$1,424,973,625.32

329 841 788.16

Securities carried at $
,
,
in the foregoing
statem ent are deposited to secure public funds
and for other purposes required by law.

* 1 Assessed Valuation $843,083.00
C h a r t e r M e m b e r H e u t York C l e a r in g H o u s e A s s o c ia t i o n
M e m b e r F e d e r a l Reserve System
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

D E X T E R L. AN D R EW S
On Advisory Board

visory board of the Lincoln office. Mr.
Andrews is president and general man
ager of F. H. Pfunder, Inc., and Mr.
Ankeny is vice president of Theo.
Hamm Brewing Company and vice
president of The Emporium, Inc.

Granted State Charter
Permission for the establishment of
the Plummer State Bank in Plummer,
Minnesota, has been granted by the
Minnesota state banking department.
Principal stockholders in the new in
stitution will be George Beito of Gonvick, who is also president of the Min
nesota Bankers Association, and E. B.
Lanager, Carl Swanson, Paul Schoenauer, O. L. Skatvold and F. J. Mack
of Plummer. The building occupied
by the former First State Bank has
been purchased and it is hoped the
new bank will be open early this sum
mer.

James B. Hove
Douglas county, Minnesota’s oldest
banker, James B. Hove, died recently
at the age of 73 years. At the time of
his death he was president of the
Carlos State Bank of Carlos, Minne
sota, an institution he organized a
number of years ago. Previous to this
he was associated with banks in South
and North Dakota and in Minnesota.

How would you solve
these banking problems?
THE

O U R

PROBLEM

S O L U T IO N

B U T T E R . It was taking 8 days to get funds from
San Francisco on drafts covering shipments of
butter.

Drafts were airmailed by the First National to the
San Francisco bank which in turn wired us when
they had been paid and credited. Tim e lag cut
more than half.

S A W D U S T . A correspondent bank’ s customer
had a chance to sell a pile of sawdust to the U. S.
Department of Agriculture as an ingredient for
grasshopper poison. He didn’ t have enough money
to finance loading and shipping, yet wouldn’ t get
paid until sawdust was delivered.

First National cooperated to provide necessary
funds. As each shipment was loaded we received a
covering order, and the government made pay
ment to us on the assigned contract until the loan
was liquidated.

C A T T L E . A rancher needed $20,000. His local
bank could lend him only $7,000.

The balance of $13,000 was supplied by the First
National, thus making it possible for the local bank
to fill its entire line and keep a customer happy.

L U M B E R . Owner of a lumber yard knew where
he could get about half a million feet of rough
green lumber, but needed credit to buy, store,
plane, saw and truck it. Am ount exceeded lending
limit of his local bank.

The local bank advanced as much of the loan
as it could, and the First National made up the
remainder. The loan was secured by trust receipts
as provided under the Uniform Trust Receipt Act.

O IL . Distributor of a specially treated oil used in
road construction developed a volume of business
requiring credit in excess of the lending limits of
his bank.

When loans exceeded local bank’s limit, the First
National advanced additional funds on the dis
tributor’s notes endorsed by his bank without
recourse.

FIRST NATIONAL BANK OF MINNEAPOLIS
H e n r y E. A t w o o d ,

President

Department of Banks and Bankers
M . O. G rangaard , Vice President
C. B. B rombach , Vice President
W . A. V olkmann , Vice President

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Federal Reserve Bank of St. Louis

R . S. B anfield , Vice President
J. J. M aloney , Assistant Vice President
K . T . M artin , Assistant Cashier

J. M . D ownes , Assistant Cashier

G. S. H enry , Assistant Cashier j
C. E. C orchran , Assistant Cashier

Member Federal Deposit Insurance Corporation
Nort hwest ern Banker, May, 1946

Minnesota News

New Personnel Director

Named Vice President

The First National Bank in St. Louis
recently announced the election of Ray
J. Miller as personnel director. Mr.
Miller, an assistant vice president, has
been connected with the First National
and the former Third National Bank
since 1912. He began his banking ca
reer as a clerk in the clearing house
department of the Third National, and
later served in the transit and bill of
lading departments of the First Na
tional. In 1929 he became assistant
manager and in 1934 manager of the
transit department. In 1938 he was
elected an assistant cashier and in Jan
uary, 1945, an assistant vice president.

Roger F. Murray has been elected a
vice president of Bankers Trust Com
pany of New York, in charge of the
credit and security research depart
ment, it was announced by S. Sloan
Colt, president of the bank.
Mr. Murray has been associated with
Bankers Trust Company since 1932.

C. L.

GROUP ME E T I N G S

F R E D R IC K SE N
President

M . A. W IL S O N
Vice President

As Iowa banks resume their
May Group Meetings in the
postwar period, this bank ex
tends warm greetings to every
Group.

W . G. N E L SO N
Assistant Vice President
W . C. SCH EN K
Cashier
H. C. L IN D U S K I
Assistant Cashier

W e were happy to be one
of the hosts at our Group One
Meeting in February. W e will
be egually glad to attend and
share in your meetings to be
held this month.

C. L. A D A M S
Assistant Cashier
J. S. H A V E R
Assistant Cashier
JAM ES L. SM IT H
Auditor

L
N

Let’sPretend

When your bumper is itching to budge,
A walker who simply won’t budge,
You’ll think better my friend,
If you’ll only pretend
That the walker’s his honor, the judge!

ive

SIOUX

CITY,

M E M B E R

'//r e

(Continued from page 25)
tina, where he remained until 1928.
In 1928 Mr. McCain’s graphic
knowledge of the details of foreign
hanking led to his appointment as
vice president in charge of the Na
tional Park Bank of New York. A
year later this was merged with the
Chase National Bank where he con
tinued as vice president and handled
foreign loans on cotton, wheat and
other commodities. His extensive ex
perience with business in South
America made him the logical choice
to supervise the Chase’s business in
those countries.
His next position brought him into
contact with hankers in the eleven
states of the far west. Commercial
banking relations with banks in these
states have been his responsibility
the past twelve years in addition to
the states of New York and New Jer
sey.
Mr. McCain’s diversified knowledge
of banking has made his grasp of
finance world wide in scope, a prime
requirement for the man who must
keep a watchful eye on the more
than 5 billion dollars in deposits of
people from all over the world.
The need for swift expansion of war
plants and the production of military
supplies found Mr. McCain taking a
leading part in arranging credits for
many industrial concerns. He has
often been identified with the financ
ing of aircraft manufacturing and air
transport companies.
Mr. McCain was married to Marion
Vinsonhaler of Little Rock, Arkan
sas, in 1924, and they have two daugh
ters and one son. They live in Scarsdale, New York, where the family
attends the Scarsdale Congregational
Church. Mr. McCain is a member of
the St. Andrew’s Golf Club, the Ma
n u rin g Club at Rye, New York, and
the University Club in New York
City.

t o c k

a t ì o n a l
OF

ABOUT BANKERS YOU
KNOW

a n k
IOWA

R D. 1. C.

n / t/te
I

Northwestern Banker, May, 1946

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Federal Reserve Bank of St. Louis

want

to complain about not being able
buy anything to complain about.

S o u th D a k o ta

N EW S
C. O. GORDER
President
Deadwood

Joins Vermillion Branch
Appointment of Harry N. Dirks, re
cently returned from three years’ serv
ice in the U. S. Navy, as assistant man
ager of the Vermillion branch of the
National Bank of South Dakota, is an
nounced by T. S. Harkison, president.
Following his graduation from the
University of South Dakota, Mr. Dirks
joined the bank at Sioux Falls in 1934.
From 1941 until May, 1943, when he
entered the navy, Mr. Dirks served in
a supervisory capacity on the examin
ing staff of First Service Corporation,
operating affiliate of First Bank Stock
Corporation.

Two Banks Chartered
Verne W. Abeel, superintendent of
banks for South Dakota, has an
nounced the opening of two new banks
in South Dakota during the past
month. They are the Rushmore State
Bank in Hill City and the Farmers
State Bank in Irene.
The Rushmore State Bank opened
April 9th with a capital of $25,000, sur
plus of $5,000 and undivided profits of
$2,500. Officers of the bank are John
E. Loberg, president; H. M. Belmont,
vice president, and R. L. Hockridge,
cashier.
The Farmers State Bank opened
April 20th with a capital stock of
$25,000, surplus of $5,000 and undivided
profits of $2,500. Officers of this insti
tution are C. H. Gunderson, president,
and A. E. Diefendorf, vice president
and cashier. The branch office for
merly operated at Irene by the Secu
rity State Bank of Wakonda has been
discontinued as of April 20th.

C. H. Barrett
C. H. Barrett, 87, founder of one of
the first banks in South Dakota and
a leading citizen of Vermillion for
nearly 60 years, died last month.
Mr. Barrett went to Vermillion in
1887 with L. T. Swezey and the two
founded the Clay county bank. In
1904 it became the Vermillion National
Bank.
He served as cashier until 1912
when, on the death of Mr. Swezey, he
became president.
In 1929 upon
merger of the Vermillion National and

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Federal Reserve Bank of St. Louis

GEORGE M. STARRING
Secretary
Huron

the First National banks Mr. Barrett
was named president of the merged
banks and served in the capacity until
his retirement in 1931.
He is survived by his widow and
one son, Charles, of Pittsburgh, Penn
sylvania.

Convention Plans
Plans for the annual convention of
the South Dakota Bankers Association
in Rapid City are practically complete.
Topnotch speakers have been selected
for the annual dinner and business
sessions June 14th and 15th. Regis
tration will be June 14th with golf
facilities of the Meadowbrook Country
Club available to all those attending.
Requests for hotel reservations should
be mailed to H. R. Browning, general
chairman of the convention and vice
president of the First National Bank
of the Black Hills in Rapid City.

Agricultural Program
A streamlined program for 1946 was
adopted at a meeting of the agricul
tural committee in Brookings, South
Dakota, recently. The meeting was
held in cooperation with the staff of
State College and the Extension Serv
ice.
The importance of an aggressive pro
gram on soil conservation for South
Dakota was recognized by the commit
tee in naming this as one of the main
projects for 1946. S. W. Jones, secre
tary of the Greater South Dakota Asso
ciation, attended the meeting and told
committee members about the South
Dakota Soil and Moisture Conservation
Achievement Program being spon
sored by that association, the South
Dakota Press Association, South Da
kota State College, and the State Soil
Conservation Committee, and invited
the organization to be a co-sponsor.
The committee unanimously endorsed
participation in this contest and sub
scribed to the award fund.
Support of youth activities programs
also headlines the program for 1946.
This is not a new project but one
which has had the support of bankers
for many years. New methods of in
creasing cooperation between club
leaders, members and bankers will be
developed.

Warren Garst, cashier, Home State
Bank, Jefferson, Iowa, and member of
the American Bankers Association
Agricultural Commission, talked on
the need for more effectively carrying
on outside programs such as 4-H Club
work.
A. G. Brown, deputy manager of the
American Bankers Association and di
rector of its Agricultural Commission,
addressing members of the committee,
stated that farmers and bankers have
many common interests—both are vi
tally interested in a democratic Amer
ica and should work together in main
taining private enterprise. Mr. Brown
reviewed briefly the 1946 program
adopted by the A.B.A. Agricultural
Commission.

Eleven Veterans Programs
Loan features of the veterans bene
fit program were discussed with South
Dakota bankers in a series of eleven
meetings last month scheduled by H.
A. Bowman, chief of the loan guaranty
division of the veterans administra
tion, with the cooperation of the state
bankers association. All banks and
lending agencies in the area of each
meeting place as well as all county vet
erans service officers were invited to
attend the discussions which were con
ducted by Mr. Bowman.

Heads Loan Department
Richard P. Peterson, well known
throughout western South Dakota, has
accepted a position as manager of the
installment loan department of the
First National Bank of the Black Hills.
His activities in this capacity will
cover the entire Black Hills region.
Mr. Peterson was for many years
connected with the Securities Credit
Corporation of Deadwood and has re
cently been discharged from the army
after four years service.
Mr. and Mrs. Peterson are making
their home in Rapid City.

Increase Capital
Stockholders of the Farmers State
Bank of Canton, South Dakota, have
increased the capital stock of the bank
from $75,000 to $100,000, E.M. Dean, Sr.,
president of the bank, stated. The
decision to do so was made at a special
meeting of the stockholders.
The increase will be accomplished
by the present stockholders investing
an additional $25,000. The decision
was made in order that the capital
structure might be increased in propor
tion to the increasing bank deposits.
The Farmers State Bank will now
have a total capital structure of $166,000, including $100,000 capital stock,
$50,000 surplus, and $16,000 undivided
profits.
Northwestern Banker, May, 1946

South Dakota News

Heads Civic Group
W. P. Jones, president of the Citi
zens Bank of Mobridge, South Dakota,
was re-elected president of the Mo
bridge Civic Association at a meeting
of the new board of directors.

what
makes
a check

Resigns as Cashier

R ea lly
safe?

Resignation of Gloyd 0. Haugen as
cashier of the Citizens State Bank in
Clark, South Dakota, was accepted by
the bank’s board of directors at a re
cent meeting. The board immediately
appointed C. R. Price to the position
made vacant by the decision of Mr.
Haugen.

Safety paper alon e can’t do it.

S iou x F u lls

Guarded manufacture—as in the
production of currency —alone
can’t do it. Invisible inks that
give sharply visible warning of
attempted chemical alteration
alone can’t do it. Alone, the fin

est of checkwriters can’t do it.
N or can the finest of check sign
ers. Nor scientific methods of
handling, counting, controlling,
cashing and reconciling checks.
But take these safeguards t o
g e th e r — (only in the Todd pro

gram of check protection will
you find them a ll) and they form
a barricade that stops check
crime—pro or amateur, internal
or external. Stops it cold.
A review of your own dis
bursement procedure by one of
our specialists may reveal ways
of elim inatin g risks, cutting
costs and simplifying routine. It
w ill be made on request; no
obligation.

lo J d

C O M PANY, I N C .
ROCHESTER

SALES OFFICES IN

N E W YORK

PRINCIPAL CITIES

DISTRIBUTORS T H R OU GH OU T THE WORLD

THE TO D D C O ., R o c h e s t e r 3 , N . V.
Please give us facts about how to eliminate
check-disbursement risks, cut costs, and sim
plify routines. We understand this entails no
obligation on our part.
Name_______________________ Title_________
Bank_______________________________________

.—--------------- County
----------------------—
State

~pr

City

NWB-6 - 4 6
---------------------------------------------—
Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

South Dakota, announced a plan for
enriching the musical life of Sioux
Falls through organization of a Leg
ionnaires’ chorus, band and drum and
bugle corps. Members of the contem
plated groups, he said, will be properly
equipped and uniformed. “We have
an excellent amount of talent in our
ranks,” Harkison declared.
Workmen have finished construc
tion of a marble front for the new lo
cation of the Union Savings Bank at
118 South Main Avenue in Sioux Falls.
C. A. Christopherson, chairman of the
board of directors, expects interior
fixtures to be installed within another
six months. The bank has been in its
new home since November 1, 1945.

LECTION of S. H. Finger as a di
George Rice, Jr., Flandreau, an army
rector and vice president and man returnee, has accepted a position in
ager of the Huron branch of the Nathe main office of the Northwest Se
tional Bank of South Dakota was an curity National Bank in Sioux Falls.
nounced by T. S. Harkison, Sioux
Falls, president of the institution.
Frank McCormick, athletic director
Mr. Finger succeeds A. E. Schnad at the University of Minnesota, ad
who resigned to become cashier of the dressed the Sioux Falls Rotary club at
Commercial National Bank at Boze the invitation of its president, P. H.
man, Montana. He has been in Huron McDowell, vice president and trust
since April 22nd.
officer of the Northwest Security Na
A native of Mankato, Minnesota, Mr. tional Bank.
Finger began his banking career there
in 1924 with the First National Bank. Country Bankers Help A.B.A.
He later served for a period in 1940
Thirty-six country bankers, each a
with the credit department of First specialist in some phase of agriculture,
Service Corporation, operating affiliate assisted the advertising department
of First Bank Stock Corporation in of the American Bankers Association
Minneapolis.
in preparing 12 short series of news
He then went to the Merchants’ Na paper advertisements on selected
tional Bank at Fargo, North Dakota, types of agriculture, which have been
where he became assistant cashier. made available to A.B.A. member
Since May, 1942 he has held a super banks.
visory position on the examining staff
While the advertisements stress the
of First Service Corporation.
credit services with which banks are
Mr. Schnad has been an officer of prepared to aid farmers in crop pro
the Huron bank since 1935. Prior to duction, they also promote interest in
that he was assistant cashier of the well-balanced farming, soil conserva
First National Bank at Miles City, tion, and farm youth movements. The
Montana, his home city.
committee of 36 country bankers se
All the aforenamed banks are affili lected 12 farming subjects such as
ated with First Bank Stock Corpora wheat, hogs, cotton, fruit, sheep, corn,
tion.
poultry, and tobacco, and suggested to

Sioux Falls bankers in attendance at
a Federal Reserve Bank conference in
Minneapolis last month were Ralph
M. Watson, president, and P. H. Mc
Dowell, vice president and trust offi
cer, Northwest Security National
Bank; T. S. Harkison, president, and
Frank J. Cinkle, vice president and
cashier, National Bank of South Da
kota; William C. Duffy, president,
Union Savings Bank; and William W.
Baker, president, First National Bank
& Trust Co.
Commander
T. S.
Harkison
of Sioux
,
.
.
,
Falls post, American Legion, who is
president of the National Bank of
_

the A.B.A. advertising department
what banks should say in advertise
ments on each particular subject. Then
Nicholas A. Jamba, manager of the
agricultural department of the Na
tional Bank and Trust Company of
Norwich, New York, collaborated in
writing and editing the copy, and in
selecting illustrations. The newspaper
advertisements, which are available in
mat form, are informative in charac
ter and emphasize the services country
banks offer to their farm customers.

Cut-Up
What did the moron say as he cut
open the mattress? “Spring is here.”

N o r t h D a k o ta

p w s
A. C. IDSVOOG
President
Grafton

State Convention

C. C. WATTAM
Secretary
Fargo

month. The 84-year-old pioneer was
the first Dunn county commissioner,
helping organize the county in 1884
when he moved from Henderson, Min
nesota.

Many applications for reservations
for the North Dakota Bankers Con
vention to be held in Fargo on June
17th and 18th have been coming in and
in many cases hotels have notified
applicants that they were unable to R. R. Wolfer
take more reservations. Fargo Clear
R. R. Wolfer, executive director of
ing Houses have appointed a commit the war finance committee for North
tee consisting of O. J. Boyle, Dakota Dakota, died in Jamestown, North Da
National Bank, chairman; M. W. Lof- kota, recently after a lingering illness.
fer, First National Bank and Trust He was 62.
Company; Ryan C. Harrington, Mer
Mr. Wolfer had been prominent in
chants National Bank and Trust city, county and state activities for
Company, and Lester Smith, Fargo many years. At the time of his death
National Bank, as a hotel reservations he was vice president of the Greater
committee and it is suggested that any North Dakota Association.
hankers or other people who plan on
Mr. Wolfer was president of the
attending the convention and who Jamestown National Bank for many
have not as yet made their reserva years and currently had been chair
tions, write to the chairman of the man of the board of directors. He
committee or any member thereof. established and operated the James
Plans for the convention are progress town Insurance Company. He is sur
ing. Assurance has been received vived by his wife, two daughters, his
from President Frank J. Rath je of the mother, a sister and a brother.
American Bankers Association and
General Louis R. Pick, the co-author
of the Pick-Sloan plan for the develop
ment of the Missouri River Basin, that
Gate City Building and Loan Asso
they will address the convention. Pres
ident A. C. Idsvoog of Grafton has also ciation of Fargo, North Dakota, has
appointed a committee to arrange for purchased the O’Neil Block at the cor
a half day’s session for a discussion of ner of Broadway and First Avenue,
consumer credit and installment lend North, a portion of which it has occu
ing. There wifi be other interesting pied since 1939. The property includes
two buildings, 58x150 feet in area, with
features.
full basement. At the time of the pur
chase there were two basement ten
La Moure Bank Moves
ants, six ground floor tenants and six
The First State Bank of La Moure, tenants in second floor offices.
North Dakota, has moved its offices to
The company plans to expand their
the first floor of the building and has own space to include floor space re
expanded those quarters through re cently vacated by a dress shop which
modeling.
has moved to other quarters. Other
tenants will not be disturbed for the
Attend Conference
present. The Gate City Building and
Nearly a score of North Dakota bank Loan Association was established in
ers attended the federal reserve dis 1923.
trict conference in Minneapolis. Rep
resentatives of the State Bankers Asso
Clarke Bassett, president of Mer
ciation and of banks in large towns chants National Bank and Trust Com
were in attendance.
pany of Fargo, North Dakota, and
member of the executive council of the
American Bankers Association, at
William Connolly
William Connolly, vice president of tended a meeting of the council in
the Bank of Killdeer, North Dakota, French Lick Springs, Indiana, April
died at his ranch near Killdeer last 14th to 16th. He was accompanied by

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Federal Reserve Bank of St. Louis

1 7 /17/ « V /'ii'.s

Charles C. Wattam, Fargo city attor
ney and secretary of the North Dakota
Bankers Association. Only routine
matters were discussed at the council,
Mr. Bassett reports.
Melvin C. Goodwin, who was associ
ated with First International Bank of
Watford City, North Dakota, when he
entered service three years ago, and
who had previously been associated
with the First National Bank of Williston, North Dakota, has been visiting
his mother, Mrs. A. G. Goodwin, Fargo,
North Dakota, and his wife in Ray,
North Dakota, since his discharge from
the army in March. He has not yet
decided whether he will return to the
banking business.
James A. Irving, who was clerk in
the First National Bank and Trust
Company, Fargo, North Dakota, from
1936 to 1939, and who left in the latter
year to become assistant cashier of the
First National Bank of Milaca, Minne
sota, was elected cashier of the Ameri
can National Bank of Little Falls, Min
nesota, Frank L. Hartman, president
of the Little Falls bank announces.

Issued Financial Report
The Lawrence Warehouse Company,
nation-wide operators of field ware
houses, has just released its financial
report for the year ended December
31, 1945, which shows the most suc
cessful year’s operations in the com
pany’s more than thirty years’ history.
Louis Benoist, president, said, in re
leasing the report, “ The fact that our
gross revenue increased $1,029,000, or
more than 16 per cent over the preced
ing year, which marked at that time
the most Successful year we had expe
rienced, is evidence of the fact that
field warehousing is playing a vital
part in the return to peacetime activi
ties. There is every indication that
banks and finance companies are ex
panding their interest in inventory fi
nancing and are relying on field ware
housing as their major vehicle in this
expansion program.”
At the year’s end the company’s bal
ance sheet showed current assets of
$1,111,000 against current and total lia
bilities of $435,000, leaving a net work
ing capital of $676,000, after making
provision for taxes aggregating $205,000. The company’s statement showed
cash of $215,000, with receivables to
taling $834,000, over 90 per cent of
which are secured by warehouse liens
on merchandise. Capital stock was
shown as $586,545, with surplus of
$269,431. Gross revenue was reported
as $7,325,000, on which the company
earned $93,000 after provision for
taxes.
Northwestern Banker, May, 1946

A n oth er forward step in
N inety Years of Progress
“ Clear view counters” are the basis of the new
quarters of the Savings Department of the United
States National Bank in Omaha.

tones of gray.
Each window is equipped with automatic coin

The counters, with clear glass partitions and
fronts, are believed to be the first of their kind
for bank use.

The new department is decorated in harmonizing

Latest type air conditioning, fluor

machines. New model posting machines are being
installed to further speed up service.
The Savings Department is located on the first

escent lighting and sound absorbent walls further

floor of the bank building, the heart of the Omaha

add to the comfort and convenience of customers.

downtown business district.

U N IT E D
S T A T ES
N a tion a l B A N K of Omaha
MEMBER FEDERAL DEPOSIT I NSURANCE CORPORATION

Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

N eb rask a

N EW S

collided with a transfer truck one-half
mile out of Tekamah, Nebraska, last
month. Mr. Pond was en route home
from Omaha where he had been on a
business trip. He was taken to St.
Joseph Hospital in Omaha.

Files for Board of Regents
V. E. DOLPHER
President
David City

Elected Trustee
Kenneth G. Harvey, president of the
Douglas County Bank in Omaha, has
recently been elected to the board of
trustees of the Nebraska Children’s
Home Society.
Mr. Harvey suffered an accident last
month while riding one of his horses
at his home west of Omaha and was
confined to Methodist Hospital with a
severely broken left leg.

Boeius Bank in A.B.A.
The Boeius State Bank of Boeius,
Nebraska, was one of 21 banks which
joined the American Bankers Associa
tion recently, according to R. L. Domi
nick, president of the Traders Gate
City National Bank of Kansas City,
and chairman of the organization
committee of the A.B.A. Harry Ericksen is president of the Boeius State
Bank.

Walter T. Waldron
Walter T. Waldron, 65, vice presi
dent of the Arlington State Bank of
Arlington, Nebraska, died at his home
last month following a heart attack.
Mr. Waldron was born July 9, 1880,
in Cass county, near Plattsmouth. He
was a graduate of the Fremont Normal
and entered the banking business at
the Citizens Bank at Waterloo. He
was connected with several banks
throughout the state before going to
Omaha where he lived for a number
of years. He went to Arlington State
Bank as vice president 16 years ago.
Survivors are his widow; three chil
dren, Mrs. Joseph Eaton of Louisville,
Kentucky; Mrs. Robert Finley of Oma
ha, and Kenneth of Arlington; two
grandchildren; a sister, Mrs. Grace
Parker of Lincoln, and a brother, H. B.
Waldron of Omaha. A son, Wendell,
was killed in an automobile accident
six months ago.

Now an "Admiral"
J. A. Novak, president and cashier
of The Howells Bank of Howells, Ne
braska, has been appointed Admiral
in the Great Navy of the State of Ne
braska, an honorary organization, by
Governor Dwight Griswold. The com

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

CARL G. SW ANSON
Secretary
Omaha

missions of appointment, signed by
state officials, are given in recognition
of special trust and patriotism.

Donates Scholarship
The Stephens National Bank of Fre
mont, Nebraska, was donor of one of
the 52 new $150 scholarships sub
scribed for the summer camp for boys
to be held at the University of Ne
braska School of Agriculture at Curtis,
Nebraska, this summer.

Three More Employes
York State Bank of York, Nebraska,
has added three new members to its
clerical staff. Shirley Norton, a former
assistant cashier, has returned to the
bank after his discharge from the
armed forces, to take charge of the
farm management department. Hollis
Gewecke, formerly connected with the
bookkeeping department of Consumers
Public Power District, has become a
teller. Harold Meyer joined the bank
to take over the insurance department.

Assistant Cashier Home
Master Sergeant Donald H. Ander
son, former assistant cashier of the
City National Bank of Hastings, Ne
braska, was to arrive home last month
after service in Europe.
In service since 1942, Mr. Anderson
has been overseas 17 months, serving
with the 239th General Hospital in
France, Germany, Italy and Switzer
land.

Resigns County Post
Bryan Watzke, who recently re
signed as assistant county treasurer,
has taken a position at the Richardson
County Bank of Falls City, Nebraska,
and assumed his new duties. With
the exception of two years during
which he served in the army, Mr.
Watzke had been assistant county
treasurer for the past seven years.

Lyons Banker Injured
Matt D. Pond, president of the First
National Bank of Lyons, Nebraska,
suffered serious head and chest in
juries when the car he was driving

Merl C. Townsend, vice president of
the Fremont National Bank of Fre
mont, Nebraska, and former Dodge
county agent for eight years, has filed
for the third district’s position on the
University of Nebraska board of re
gents.
The district includes Antelope, Burt,
Boone, Cedar, Colfax, Dakota, Dixon,
Cuming, Dodge, Knox, Madison, Mer
rick, Nance, Pierce, Platte, Stanton,
Thurston and Wayne counties.

Charter Crofton Bank
The Crofton State Bank of Crofton,
Nebraska, first bank to be chartered in
the state in 1946, began business April
5th with $25,000 capital paid in, and
an authorized capitalization of $50,000. Directors are: B. N. Saunders,
president; M. A. Wakeley, vice presi
dent; August Mueller, True Gobel and
C. M. Stenberg, cashier.

Heads Columbus Chamber
Howard Burdick was revealed as the
new president of the Columbus, Ne
braska, Chamber of Commerce at the
annual banquet of the organization
held at the Columbus city auditorium
last month.
Mr. Burdick is cashier at the Central
National Bank in Columbus and a vet
eran of more than two years in the
armed forces, having returned from
overseas some weeks ago.

Vice President Returns
C. F. Coffee, III, vice president on
leave of absence from First National
Bank of Chadron, Nebraska, has re
turned following three years in naval
service. He has been separated from
the service after hospitalization for
pneumonia at Corona, California.
Mr. Coffee, a lieutenant (j.g.) was
operations officer for a squadron flying
remote controlled aircraft in experi
mental flights.

Files for State Treasurer
W. T. Thompson, president of the
First National Bank of Cozad, Ne
braska, has completed filing for the
Democratic nomination for state treas
urer.
Mr. Thompson received his party’s
endorsement for the office at the pre
primary convention.
Nort hwest ern Banker, May, 7946

Nebraska News

Nebraska Rankers Learn
A bout 1m. i . Loans
How to Best Serve Veteran Tops All Other Subjects
at Six Nebraska Group Meetings
By HENRY H. HAYNES
Editor
The Northwestern Banker
NDER the capable direction of provisions of its Blue Sky Law, and
Carl Swanson, secretary of the J. F. Peters, director of banking, urged
Nebraska Bankers Association, bankers to be alert to such violations
group meetings in the Cornhusker in their communities and report imme
state were held last month with the diately to his department the opera
usual hospitality and goodfellowship tions of any individuals which ap
that characterized such gatherings peared contrary to sound investment
during prewar days. Beginning on policy. This particularly applies to
April 22nd with meetings at both Fre the attempt to get persons to sell their
mont and Norfolk, other sessions were war savings bonds and invest in some
held at Hastings, Lexington, Alliance, little known enterprise.
closing at Lincoln on April 26th. The
Two hundred and ten banks in the
Nebraska Group Meeting Special Train Nebraska territory are now partners
was resumed this year, in which bank with the Reconstruction Finance Cor
ers and investment men visited the poration in making loans, according to
cities above. A list of those on the A. J. Eggers, district head of the cor
special train appears at the conclusion poration. Requirements for such loans
of this report.
are no different than any other kind,
V.
E. Dolpher, president of the Ne he said; they must be made on a sound
braska Association, spoke at all the basis and have reasonable assurance
meetings. He outlined the aims and of liquidation.
accomplishments of the association
William A. Fowler, representing the
during the past few months, and sug John Hancock Life Insurance Com
gested several new projects to be un pany, explained in detail the bank em
dertaken. President Dolpher urged ploye insurance plan as it is operative
all Nebraska banks to continue to sell for Nebraska. Ninety-one Nebraska
the public on the purchase of savings banks are now participating in the
bonds, and to urge their customers to plan, 65 per cent of them on the non
keep the bonds they already have.
contributory basis, which means that
The sale of questionable securities the bank pays all the premiums.
is not permitted in Nebraska under the
The subject that topped all others

at the Nebraska group meetings was
the discussion on each program of the
G. I. Bill of Rights with respect to
loans, and no two men could have bet
ter led the discussion than did Sam C.
Waugh, executive vice president of the
First Trust Company of Lincoln, and
Chester H. Grau, Nebraska loan guar
antee officer of the Veterans Admin
istration. Mr. Waugh opened the sub
ject with a thorough and comprehen
sive presentation of the recently
amended G. I. Bill, together with his
suggestions on the several types of
loans as such applied to banks. Then
the subject was turned over to Mr.
Grau, who was a veritable Informa
tion Please when it came to answering
clearly and concisely the many ques
tions proposed to him.
Here is what Mr. Waugh said in
part:
“What about the picture right here
on the home front in Nebraska? Frank
ly, we got off to a slow start, but since
the first of the year the Veterans Ad
ministration loan division at Lincoln
has been going like a house afire. Here
are the impressive figures. For the
term ending March 30th, a volume of
loans of $6,000,000, plus a volume of

AT THE NEBRASKA GROUP MEETINGS ------ ^
The

pictures

the

opposite

page

were

taken

the

N orthw estern B an k er camera during the several Group Meet

ings held last month in various vities of Nebraska. Pictures
o f individuals are identified as reading from left to right.
1 and 2— These pictures were taken aboard the Nebraska
Bankers Special Group Train, just as it was pulling into Alliance
for the meeting of Group Six. The two groups are sitting in
either end o f the club-lounge car, and represent the majority of
those making the train tour.
3—
Here are three officers of the Nebraska Bankers Associa
tion, Carl Swanson, secretary; Glen Gibson, vice president, Gib
bon, and V ic Dolpher, president, David City.
4—
All those on the Group Train were guests o f the Lexington
Chamber o f Commerce at breakfast the morning the Special
arrived in that city. Here is a part o f the crowd waiting for
the dining room doors to open.
5—
Verne Bartling, assistant vice president o f the First Na
tional Bank, Chicago, and C. H. Sudman, vice president of the
Guardian State Bank, Alliance.
6— N. L. Sholin, assistant cashier, II. S. National Bank, Omaha ;
Nort hwest ern Banker, May, 1946

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Federal Reserve Bank of St. Louis

Richard McMullen, cashier, State Bank o f Stella; C. M. Asa,
cashier, Bank of Talmage, and A. L. Vickery, cashier, U. S.
National Bank, Omaha.
7—
Charles Kuning, vice president, American National Bank,
Chicago, and Alvin Johnson, president, Live Stock National
Bank, Omaha.
8—
H. A. Schneider, president, Plattsmouth State Bank, and
Otto Kotouc, Sr., president, Home State Bank, Humboldt.
0— E. M. Black, cashier, First National Bank, Fullerton, and
Group Two president, and Charles Novak, president, Bank o f
Brainerd, and vice president of Group Two.
10—
Visiting bankers gathered around the hopper and drying
cylinder of an alfalfa mill near Lexington. The green alfalfa
is pulverized, dried and sacked in only five minutes.
11—
L. Boyd Rist, vice president and cashier, Wymore Na
tional Bank; H. H. Echtermeyer, vice president, Live Stock
National Bank, Omaha; George R. Froelich, executive vice pres
ident, First National Bank, Falls City; George Woods, presi
dent, First National Bank, Council Bluffs, Iowa, and F. E. Slusser, cashier, Bank of Clarks.

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Federal Reserve Bank of St. Louis

Nebraska News

1,792 individuals loans with a total
amount of $6,602,496, with guaranties
of $3,233,308, has been approved. The
average loan in Nebraska is $3,685,
and the average guaranty is $1,805.
“ In Nebraska our loans bear a lower
average than nation-wide—$4,350 na
tional average and $3,685 for Nebraska.
Our percentage of guaranty of the
loans is higher. For example, 48.9 per
cent in Nebraska as compared with
42 plus per cent nation-wide.
“Of the total of 1,792 loans guaran
teed in Nebraska up to March 30th,
only 475 loans were in last year’s busi
ness. In other words, 1,317, or 73.4
per cent of the total loans, have been
made during the last three months.
“ One week in March the Nebraska
Veterans Administration loan division
processed 182 loans, involving a total
of $750,000, with $328,00 of guaranties.

Since March 28th up to April 19th
there were 453 loans processed—350
homes, 53 businesses, and 50 farms.
“Now I should like to be just a
little personal. When I returned from
a meeting of the veterans committee
in the late fall of 1944 and started to
talk about the coming importance of
G. I. loans, and more particularly the
treatment the veteran should be ac
corded, I was a trifle discouraged,
speaking mildly, with the attitude of
some of the lenders with whom I
talked. There was a noticeable lack
of interest. I have had a banker tell
me as recently as a month ago, ‘I
haven’t had time to study the damn
plan.’ I bite my tongue to keep from
asking in reply W here would we be
today if the men who gave from one
to five of the most important years of
their lives had said, “Mr. Banker, I

officers, with their m an y
y o u in this area.

contacts,

CITY NATIONAL
18th & GRAND
KANSAS CITY, MO.

Northwestern Banker, May, 1946

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

BANK

can

op en

"KiutteU

& TRUST

d oors

for

'?<uwute ‘Semi
COMPANY

Member Fed. Dep. Ins. Corp. Resources Over $125,000,000.00

haven’t time to go out and fight for
you and your damn business” ?’
“At the same time I am very sym
pathetic toward the country banker,
not quite so much sympathy for the
city folks. The country banker worked
during the war shorthanded with in
experienced help and was called upon
to take part in War Loan drives, Red
Cross campaigns, in addition to being
beset with ration banking and what
have you. Now that is largely passed
and we do have an opportunity both in
the city and country to pay in a small
measure our debt by giving the best
advice and counsel we are capable of
giving to the men who have returned.
“When a veteran comes in to talk
to me I like to feel this man and those
like him saved our country, saved our
business, if you please. We can im
agine the lending of money is not a
very pleasant business today in Berlin
or Tokyo. This very veteran had the
time to work for me and my family
and for the business I represent. Sure
ly I can take the time to talk to him
and to see if I can be helpful in a
measure in re-establishing him in civil
ian life.
“ I hope I have not been too personal
or too realistic in my approach. I
feel sincerely if we deal fairly and
patiently with these men, and I know
they are not all good risks, who repre
sent a cross-section, an entire genera
tion, a most important segment in our
future social and economic life, the
future of our banking and lending
business will be safe, but if we fail
the future of private banking, to me,
does not look too bright.”
Among the full-time passengers on
the Nebraska Bankers Group Meeting
Special Train were the following:
Fred S. Aldrich, vice president, Con
tinental National Bank, Lincoln; A. A.
Held, vice president, National Bank of
Commerce, Lincoln; S. C. Waugh, vice
president, First Trust Company, Lin(Turn to page 64, please)

Nebraska News

Other cities besides Omaha in the
Chapter are Sioux City, Des Moines,
Kansas City, Wichita, Tulsa, Oklahoma
City, and St. Joseph.
Matt D. Pond, president of the First
National Bank of Lyons, Nebraska,
was in St. Joseph’s Hospital at Omaha,
following severe injuries suffered in
an auto accident south of Takamah,
Nebraska. He was returning home
from Omaha when his car crashed into
a parked truck.
m o ser ,
executive
vice president of the United States
National Bank of Omaha, has been
named chairman of the Advisory Com
mittee of the Mayor’s Citywide Im
provement Committee of Omaha.
llsw orth

One of his first activities following
the appointment was to outline the
program before the Omaha Real Estate
Board at a luncheon. The Advisory
Committee will co-ordinate all activi
ties in the campaign to further recom
mendations of the city wide committee.
Members of Mr. Moser’s advisory
committee include Linn P. Campbell,
president of the Byron Reed Company;
Ray R. Ridge, vice president of the
Omaha National Bank; and Russell J.
Hopley, president of the Northwestern
Bell Telephone Company.
Two Omaha bankers were elected re
gents of Creighton University in
Omaha recently.
They are W. B. Millard, Jr., vice
president of the Omaha National Bank,
and J. F. McDermott, vice president of
the First National Bank of Omaha.
Others elected regents include
Frank P. Fogarty, vice president of
Paxton & Gallagher and former gen
eral manager of the Omaha Chamber
of Commerce, and Ambrose J. Seitz,
vice president of the Union Pacific
Railroad.
The four fill places on the board va
cated by William Jeffers, who retired
recently as Union Pacific president;
William Coad and D. B. Woodyard;
and by the vacancy caused by the
death of William Diesing.
For the second time since it was
founded in 1927, the Federal Land
Bank of Omaha is paying its own way
without using a single cent of Federal
money.
“The soundest, most solid, most
prosperous condition ever” is the way
President E. N. Van Horne described
the institution’s current condition.
At one time, during the depression,
the Bank was in debt to Uncle Sam to
the tune of $40,000,000, mainly through
funds advanced to carry farmers

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Federal Reserve Bank of St. Louis

through the hard times without los
ing their land.
But Midwest agriculture came back
with a bang. After several years of
high production and good prices, the
Bank paid back the last of the Govern
ment funds in 1945 and is now adding
to its reserves.
John F. Davis, a vice president of the
First National Bank of Omaha, is out
of the Navy after two years of service.
He has returned to his desk at the
bank. A lieutenant in the Naval Re
serve, his last post was with the
Twelfth Naval District at San Fran
cisco. He is the son of T. L. Davis,
president of the First National Bank
of Omaha.

The first to arrive home, of a sixsome who stayed at the Shoremede
Hotel in Miami Beach, Florida, during
a winter vacation, were Mr. and Mrs.
Lawrence Brinker of Omaha. They
were gone five weeks. Mr. Brinker is
head of the Omaha investment bank
ing firm bearing his name.
Gordon 1). Taft, former Omaha in
vestment banker, has been given the
War Department’s highest civilian
award, the Gold Emblem for Excep
tional Civilian Service.
Assistant Secretary of War Howard
Petersen presented the emblem to Mr.
Taft. For three years Mr. Taft has
been chairman of the War Department
Central Deferment Board.
Mr. and Mrs. David Davis recently
had a visit from their son, Hospital
Apprentice lc David Davis, Jr., who is
stationed at the Naval Hospital, Great
Lakes, Illinois. David Davis, Sr., is a
vice president of the Omaha National
Bank.
O. H. Elliott, a vice president of the
First National Bank of Omaha, was
elected president of the Missouri Val
ley Chapter of the Robert Morris Asso
ciates at a recent meeting in Kansas
City. Five hundred banks are repre
sented in the group.

E. J. Connors of the Union Pacific
Railroad was recently added to the
12-man Ak-Sar-Ben Council at Omaha
as aide to Ak-Sar-Ben Governor W. B.
Millard, Jr. Mr. Millard is vice presi
dent of the Omaha National Bank.
Mr. Connors also served as councillor
to William M. Jeffers, former Union
Pacific president, when Mr. Jeffers was
a member of the Ak Board of Gover
nors.
Reports from Omaha banks have
coincided with a story from Washing
ton that people are cashing War Bonds
at a greatly accelerated rate.
Those in charge of bond redemptions
at the banks said that people aren’t
asked why they are cashing bonds, but
they usually volunteer the informa
tion. They need the money mostly to
pay hospital and doctor bills, funeral
expenses, for shelter and to tide them
over until they get new jobs, accord
ing to the reports from bankers.
Those who cash the larger denomi
nations of bonds usually do so because
they want to buy homes and to pay as
much as possible in cash, the reports
showed.
Miss Lorraine Landeryou, a Delta
Gamma at the University of Nebraska,
has returned to Lincoln after her
spring vacation in Palm Springs, Cali
fornia, with her parents, Mr. and Mrs.
Harold Landeryou. Mr. Landeryou is
recovering from a recent illness. Mr.
and Mrs. Landeryou had been at a
hotel in Palm Springs since the first
of the. year and returned to Omaha
May 1st.
J. R. Cain, a vice president of the
Omaha National Bank, who was born
and reared in Falls City, Nebraska,
was one of the Omahans given a special
welcome at Falls City recently when
the Omaha Chamber of Commerce
Tribe of Yessir made a good will trip
there. With Mayor George Lyon of
Falls City, also a banker, Mr. Cain had
a spirited ride in an old buggy.
D. L. Diamond, former Omahan, has
been decorated with the Legion of
Northwestern Banker, May, 1946

N ebraska N ew s

Merit at San Francisco, where he is
assistant vice president of the AngloCalifornia National Bank.
The citation is in recognition of his
services as lieutenant-colonel in the
Overseas Branch, Supply Division, at
the Los Angeles Port of Embarkation.

He was stationed there from Febru
ary, 1943 to October, 1945.
Colonel and Mrs. Diamond live at
Atherton, California.
People with $2,500 already on de
posit in the Postal Savings Depart-

Banker and Hankers
With our added new equipment we are able to handle
your Lincoln account more efficiently.

Complete financial

service for correspondent banks is offered by the National
Bank of Commerce.

W hen in Lincoln come in and see us.

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L IN C O L N , N E B R A S K A
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Member of Federal Deposit Insurance Corporation

FOR
SATISFACTORY
CORRESPONDENT

BANK

SERVICE

36-1

The First National Hank

ment look puzzled and disappointed
when they are told at the Omaha Postoffice: “We can’t take your money.”
Then it is explained to them that
the limit on Postal Savings deposits is
$2,500.
According to William L. Eckhardt,
assistant postmaster at Omaha, there
has been a considerable increase in
Postal Savings investors, because they
can get 2 per cent interest instead of
1 per cent or none at all at most com
mercial banks. # #

NEBRASKA BANKERS
(Continued from page 62)
coin; J. F. Peters, director of banking,
Lincoln; Carl Ganz, vice president, Na
tional Bank of Commerce, Lincoln; E.
U. Guenzel, vice president, First Na
tional Bank, Lincoln; Edward Gillette,
state treasurer, Lincoln; Chester H.
Grau, loan guarantee officer, Lincoln;
Lyle Stoneman, assistant cashier, First
National Bank, Lincoln; John Lauritzen, assistant cashier, First National
Bank, Omaha; J. A. Changstrom, vice
president, Omaha National Bank; A. L.
Vickery, vice president, U. S. Nation
al Bank, Omaha; John McCumber, vice
president and cashier, Stock Yards
National Bank, Omaha; Wade R. Mar
tin, vice president, Live Stock Nation
al Bank, Omaha; H. H. Echtermeyer,
vice president, Live Stock National
Bank, Omaha; Alfred Eggers, assistant
manager, RFC, Omaha; John M. Doug
las, investments, Omaha; Fred Liles,
National Surety Company, Omaha; L.
M. McCague, The National Company
of Omaha; Homer Peterson, U. S.
Check Book Company, Omaha; John K.
Friedebach, cashier, Omaha Branch,
Federal Reserve Bank of Kansas City;
Charles A. Masilko, assistant cashier,
Stock Yards National Bank, Omaha;
John F. Davis, vice president, First
National Bank, Omaha; Howard Miller,
U. S. Check Book Company, Omaha;
Ray E. Stanley, cashier, Packers Na
tional Bank of Omaha; N. L. Sholin,
assistant cashier, U. S. National Bank,
Omaha; James H. Moore, vice presi
dent, Omaha National Bank; L. Dale
Matthews, c/o Kirkpatrick-Pettis Com
pany, Omaha; E. F. Jepsen, assistant
cashier, First National Bank, Omaha;
Dale R. Ainsworth, vice president, City
National Bank and Trust Company,
Kansas City; G. A. Gregory, assistant
vice president, Federal Reserve Bank
of Kansas City; Arden Bruch, vice pres
ident, Stock Yards National Bank,

St. Joseph, Missouri

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

Member Federal Deposit Insurance Corporation

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker, May, 1946

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Nebraska News
Kansas City; Jack Nielsen, City Nation
al Bank and Trust Company, Kansas
City; Karl Sagl, assistant vice presi
dent, Commerce Trust Company, Kan
sas City; Chas. C. Kuning, vice presi
dent, American National Bank and
Trust Company, Chicago; W. E. Resseguie, vice president, Continental Illi
nois National Bank and Trust Com
pany, Chicago; W. R. Mesenbrink, as
sistant cashier, Continental National
Bank and Trust Company, Chicago;
Verne L. Bartling, assistant vice pres
ident, First National Bank, Chicago;
Henry H. Haynes, editor, Northwest
ern Banker, Des Moines; T. C. Cannon,
St. Paul Terminal Warehouse Com
pany, Des Moines; Geo. W. Woods,
president, First National Bank, Coun
cil Bluffs, Iowa; R. W. Yerg, Chase Na
tional Bank, New York City; Win. N.
Mitten, president, Stephens National
Bank, Fremont; Howard W. Pierce,
president, First National Bank, Shel
by; Edgar McBride, president, Com
mercial Bank, Blue Hill; Glen T. Gib
son, vice president, Nebraska Bankers
Association, Gibbon; V. E. Dolpher,
president, Nebraska Bankers Associa
tion, David City, and Carl G. Swanson,
secretary, Nebraska Bankers Associa
tion, Omaha. # #

U. S. National Remodels
Banking efficiency and customer con
venience were the two guiding prin
ciples followed by architects and build
ers while remodeling the savings de
partment of the United States Na
tional Bank in Omaha.
The new quarters were recently
opened after remodeling. Something
believed to be entirely new in the
banking rooms are the “clear view
counters” which have caused favor
able comment among customers. These
counters of clear glass partitions and
parts were designed by personnel of
the bank and have been installed at
each of the nine savings department
windows.

Total for the first quarter this year
showed a gain of $10,247,197 over the
corresponding period in 1945 when the
clearings aggregated $53,752,691.
The March, 1946, clearings exceeded
the February figure by $3,795,752.
Approximately 45 persons attending
a dinner meeting given by the First
National, Continental National and the
National Bank of Commerce for all
Lincoln members and building and
loan association members at the Lin
coln Hotel heard an address by Sam
Waugh, chairman of the service to
veterans committee of the Nebraska
Bankers Association.
“The purpose of the service to vet
erans
committee of Nebraska Bank
TATE banks may legally invest in
federal land bank bonds, for a sum ers Association is to bring to every
banker and supervised lender in the
in excess of 20 per cent of the paid-up
capital and surplus of the bank, Assist state the story of the G. I. Bill of
Rights and its recent amendments,”
ant Attorney General Edwin Vail has
Mr. Waugh stated. “ Over six million
ruled.
dollars in G. I. loans have already been
The seven-page opinion, requested
guaranteed by the veterans adminis
by the state banking department, said
tration in Nebraska, and the majority
“while the bonds of federal land banks
of these loans have been approved
may possibly not be regarded as com since the first of January, 1946,” he
mitments or agreements to take over explained.
or to purchase the same, still all fed
Mr. Waugh and Chester Grau, chief
eral land banks are liable for the pay
of the loan guarantee division of the
ment of each bond, and the same pro
veterans administration, held a discus
vision applies also to consolidated
sion on the new amendments. Carl
bonds issued by all of the federal
G. Swanson of Omaha, secretary of the
land banks.”
Nebraska Bankers Association, and J.

Lincoln bank clearings for March
totaling $23,218,186, rose $3,909,562 over
the figures for the same month a year
ago, Clearing House officials reported.

F. Peters, superintendent of banking,
state of Nebraska, attended the meet
ing. The purpose of the meeting was
to study the service men’s readjust
ment act of 1944.

Send us your Lincoln items for
prompt,

All shadows are eliminated by the
latest type of fluorescent light, and
sound-absorbent walls cut down noise
and increase customer and employe
comfort. The statement department
for delivery of monthly statements to
commercial customers shares quarters
with the savings department.

person al

invited.

o n t in e n t a l

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B a/ k

Bought and Sold

LINCOLN

Confidentially and with bec om ing dignity

BANK EMPLOYEES PLACED.
40 Years Satisfactory Service

atte n tio n .

Your correspondence cordially

C
BANKS

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Corporation

THE CHARLES E. WALTERS CO.
OMAHA.

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NEBRASKA

Northwestern

Banker,

May,

1946

2 4 HOUR TRANSIT SERVICE
SPEEDS ITEMS FOR CORRESPONDENTS
Night and day—around the clock—our messengers rush transit
items from the post office to our Transit Department where they
are immediately processed, then promptly returned.
In most cases, a day's service is gained.
That's why more and more correspondents are turning to Live
Stock's continuous 24-Hour Transit Service. It's the answer to
faster service—better service—on all collection items.
Try 24-Hour Transit Service the next time you want A-C-T-I-O-N
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Northwestern

Banker,

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Federal Reserve Bank of St. Louis

B A N K

May,

1946

O F

F R I E N D L Y ^

S E R V I C E

Agricultural Meeting

Leaves New Hampton
A. C. Thiel, cashier of The Security
State Bank of New Hampton, Iowa,
has resigned his position and has gone
to Warsaw, Illinois, to take a position
as cashier with the Hill-Dodge Bank
ing Company.

the recent death of Melvin W. Ellis
of Charles City. The appointment is
effective immediately.
Mr. Black is president of the Dallas

Director at Grand Mound
Fred Bousselot has been elected a
director of the Union Savings Bank of
Grand Mound, Iowa. He fills the va
cancy caused by the recent death of
Marcus Kallenbach, a director since
the bank opened in June, 1926.

Security National Moving
As this issue goes to press, the Se
curity National Bank of Sioux City is
moving into its new banking home
and, according to President C. R. Gos
sett, the formal opening of their new
quarters will take place about the
third week in May.
Banks throughout the middle west
which are interested in the formal
opening will be advised as to the date
of the big event, and Security National
officers are looking forward to seeing
many of their friends in the new bank
building.

Retires After 47 Years
After 47 years in the banking busi
ness, Fred Durbin has retired as presi
dent of the Malvern Trust & Savings
Bank of Malvern, Iowa, because of ill
health.
He has sold his interest in the bank
to Eugene W. Burdic of Plattsmouth,
Nebraska, who becomes the new presi
dent. Mr. Burdic has been actively
associated with the country banking
business in Nebraska for the past six
teen years and is well known in Ne
braska banking circles. He was just
recently retired to inactive duty from
service in World War II, having held
the commission of lieutenant in the
United States Navy, and served as a
gunnery officer in the Atlantic theater
of operations.

Iowa Bank Superintendent
N. P. Black has been appointed Iowa
State Superintendent of Banking by
Governor Robert D. Blue.
He will fill the vacancy created by

The Iowa Bankers Association agri
cultural committee and 99 county agri
cultural planning committeemen met
at Iowa State College in Ames last
month. Warren Garst, cashier of the
Home State Bank of Jefferson, Iowa,
and chairman of the Iowa Associa
tion’s agricultural committee and a
member of the American Bankers
Association agricultural committee,
was in charge of the one day confer
ence.
Panel discussions dealt with the sub
jects, “Outside Bank Farm Programs—
Is There Need for Uniformity?” ,“ Farm
Accounting — New F a r m Record
Books,” “Soil Conservation in Iowa,”
“Agricultural Credit School for Bank
ers,” “Five One-Day Agricultural Re
gional Meetings for Bankers,” and
“Youth Work Among Young Iowa
Farm People.”

N. P. B L A C K
Iow a State Superintendent o f Banking

Assistant Cashier Resigns

County Savings Bank at Minburn and
cashier of the Perry State Bank at
Perry, both of which he organized and
controls. His home is in Perry.
Mr. Black organized the Minburn
bank in 1914 and the Perry bank in
1927. He was vice president and treas
urer of the Iowa Bankers Association
last year.
The superintendent’s salary, which
is set by the state banking board, has
been $6,600 a year.

H. L. Roberts, who has held the posi
tion of assistant cashier of the Randall
State Bank of Randall, Iowa, since last
fall, has resigned and accepted a sim
ilar position with the Manning Trust
and Savings Bank at Manning, Iowa.
Stanton H. Jacobson, recently dis
charged from the armed forces, having
served about three and a half years
in the South Pacific, has been elected
assistant cashier to fill this vacancy.
Mr. Jacobson was employed at the
county auditor’s office prior to accept
ing the assistant cashiership at the
Randall State Bank.

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Federal Reserve Bank of St. Louis

FIRST

NATIONAL

BANK

BUILDING

Scarborough
& Company
• CHICAGO

ILLINOIS

Northwestern

• STATE
Banker,

4325

May,

1946

Iowa News

Joins A.B.A.
The Lee County Savings Bank of
Fort Madison, Iowa, has become a
member of the American Bankers
Association, according to an announce
ment from A.B.A. headquarters. Alto
gether twenty-one banks in nine states
joined the association in March.

Completes Alterations
R. A. Sweet, cashier of the Story
County State Bank of Story City, Iowa,
announces completion of remodeling
and alteration of the bank’s quarters.
New fixtures and a complete new front
have been installed.

G roup F ive in C ou n cil B lu ffs
PROGRAM
10:00 a. m. Registration and Visiting
—Hotel Chieftain Lobby.
12:30 p. m. Luncheon — Hotel Chief
tain.
1:30 p. m. Call to Order—Don C. Dougan, chairman, Group 5; president,
Iowa State Bank, Hamburg.
1:35 p. m. Welcoming R em ark s —
George W. Woods, on behalf Council
Bluffs Banks.
1:40 p. m. Response — H. E. Ross,
president, City National Bank, Shen
andoah.

THE SIOUX CITY AREA
Sioux City is the heart of a great farm and
livestock market. Serving this market which
extends into Iowa, Nebraska, South Dakota
and Minnesota, is the First National Bank in
Sioux City.
Our broad knowledge of farming and live
stock, makes this bank your logical Sioux City
correspondent. Let us serve you here, where
you will find the best of Collection service at
all times.

1:50 p. m. Naming Committees—Res
olutions and Nominations.
1:55 p. m. Observations—Don C. Dougan, chairman.
2:10 p. m. Remarks—F. L. Sawyers,
president, Iowa Bankers Associa
tion; president, Centerville National
Bank.
2:20 p. m. Address—“G. I. Loan Law,”
—Walter T. Robinson, Loan Guaran
tee Officer, Veterans Administration,
Des Moines, Iowa.
2:40 p. m. Discussion from the floor.
3:00 p. m. Address—Ernest R. Rosse,
Philadelphia, Pennsylvania.
3:40 p. m. Remarks — N. P. Black,
State Superintendent of Banks; cash
ier, Perry State Bank, Perry, Iowa.
3:50 p. m. Explanation Iowa Bankers
Association Insurance Plan—E. L.
Jenkins, Des Moines, Iowa.
4:00 p. m. Report of Committees —
Resolutions and Nominations.
4:15 p. m. Comments — Frank Warn
er, secretary, Iowa Bankers Associa
tion, Des Moines.
4:30 p. m. Adjournment.

W. J. McGrath
Dr. W. J. McGrath, 74, president of
the Central State Bank and Trust Com
pany of Elkader, Iowa, died last
month. Dr. McGrath was past presi
dent of the Clayton County Medical
Association and held various positions
in medical groups. He also served as
physical examiner for the Clayton
County Draft Board in both World
Wars.

County Meetings
A . G . S a m , P r e s id e n t
J. P . M a in e r , V ic e

P r e s id e n t

F r it z

F r itz s o n , V ic e

G ra n t,

P res, an d

A s s is ta n t

E . A . Joh n son ,
C a s h ie r

C a s h ie r

J. R . G r a n in g , A s s is ta n t

C a s h ie r

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R . E . G le e s o n , A s s is ta n t
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May,

/ft S / o u x (7/ f t / * * *
1946

At least seven county and inter-coun
ty bankers meetings were held during
the past month. The most recent meet
ings reported to state association
headquarters include meetings of Poca
hontas; and Webster county bankers
at Pocahontas; Marshall County Bank
ers Association at Marshalltown; Alla
makee, Clayton, Fayette and Winne
shiek County Bankers Associations at
Postville; South Central Iowa InterCounty Bankers Association at Albia;
Louisa-Washington County bankers at
Ainsworth; Adair-Guthrie county bank
ers at Adair, and Webster county
bankers’ regular meeting at Gowrie,
in connection with Gowrie Kiwanis
Club.

New Cashier at Tingley
Forrest P. Galbraith of Des Moines
began his duties in the Tingley State
Savings Bank of Tingley, Iowa, as
cashier recently. He is taking the
position vacated by D. L. McClure who
resigned because of poor health.

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Federal Reserve Bank of St. Louis

SER V IC E
Efficient, Personal
Handling Assures the
Finest of Service
on Your Des Moines
T ransactions.

\iiLEYBankandTrust Company
AT FOURTH AND W ALNUT, DES MOINES

Frederick M. M orrison, President
W infield W . Scott, Senior V ice President
J. R. Astley, V ice President
Edward P. Kautzky, V ice President
R oy E. Huber, V ice President
F. M. Thom pson, Cashier
R ay L. Thom pson, A sst. V ice President
Carl W . A ltm an, Asst, Cashier
George W . Gill, A sst. Cashier
M e m b e r

F e d e r a l

D e p o s i t

I n s u r a n c e

C o r p o r a t i o n

Northwestern

Banker.

May.

1946

Iowa News

foriivoup (i 31eetin f/
ers Association; cashier, Producers
Savings Bank, Green Mountain.
Response to Address of W elcom eClay Stafford, president, Ames
Trust & Savings Bank, Ames.
Appointment of Committees — (a)
Resolutions; (b) Nominating.
Talk—F. L. Sawyers, president, Iowa
Ba nk e r s Association; president,
Centerville National Bank, Center
ville.
Talk — Frank Warner, secretary,
Iowa Bankers Association.

May 8th, Marshalltown, Hotel Tallcorn
PROGRAM
9:00 a. m. Registration— Hotel Tailcorn (registration fee $2.00).
10:00 a. m. Meeting Called to Order—
Hugh McCleery, chairman, group 6;
cashier, Peoples Savings B a n k ,
Laurel.
Invocation—Rev. George M. Thom
as, pastor, First Congregational
Church, Marshalltown.
Address of Welcome—Bertel Leth,
president, Marshall County Bank

12:15 p.m. Luncheon—St. Mary’s Au
ditorium, 200 South First Street.
1:00 p. m. Address — Ernest Robert
Rosse, Philadelphia, Pennsylvania.
2:00 p. m. Talk—N. P. Black, State
Superintendent of Banking.
Address—Phil Hanna, financial edi
tor, Chicago Daily News.
Address—Walter B. Garver, agricul
tural economist, Federal Reserve
Bank of Chicago.
Talk—Walter T. Robinson, Loan
Guarantee Officer, Veterans Admin
istration, Des Moines.
4:15 p. m. Committee Reports— (a)
Resolutions; (b) Nominating.
4:30 p. m. Adjournment.

Celebrates 60th Year

" F

i r s t ”

f o r

a n

k s

F o r more than 80 years promptness, efficiency,
and friendly contacts have characterized The
First National Bank of Chicago relationship with
correspondent Banks.
These qualities have been developed by an
intimate knowledge and appreciation of the
problems and the needs of out-of-town banks.
How successfully The First of Chicago has met
the requirements of correspondent banks is
attested to by the ever increasing number of
banks that take advantage of the complete facili
ties available to them at The First.
Your bank is cordially invited to make this bank
your Chicago correspondent.

The First1 National Bank
of Chicago
Growing with Chicago and the Nation Since 1863
MEMBER

Northwestern

B anke r, M a y ,

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Federal Reserve Bank of St. Louis

FEDERAL

1946

DEPO SIT

IN SUR AN C E

CO R POR ATION

The First National Bank of Paullina,
Iowa, celebrated its 60th anniversary
on April 1st, with the largest total as
sets since it was organized in 1886,
amounting to $3,087,133.
The president, Albert H. Meyer, has
been with the bank for over 40 years.
His untiring efforts and good banking
sense have played no small part in the
consistent growth and well being of
the bank. Mr. Meyer started working
in the bank in December, 1905.
When the charter was first issued
the bank was known as the Farmers
State Bank. It was originally organ
ized by Stephen Harris, Ralph Dodge,
L. N. B. LaRue, George Hakeman and
William W. Johnson. In 1901 the late
James F. Toy of Sioux City purchased
the controlling stock in the bank, and
in 1916 it was changed from a state
bank to a national bank. Later in
1935 local stockholders purchased the
Toy interests and it became a home
owned institution.
The officers and directors of the bank
are: A. H. Meyer, president; A. C.
Fintel, vice president; C. G. Kislingbury, cashier; A. C. Horstman, assist
ant cashier; John Ginger, William
Hellmann, H. J. Hibbing and O. J.
Strampe, directors.

New Cashier at Wellman
W.
L. Phillips, formerly of Baxter,
Iowa, has begun work as cashier at
the Wellman Savings Bank of Well
man, Iowa, it was announced by S. P.
Sandy, vice president.
Mr. Phillips’ home originally was in
Conrad. He has been in the banking
business for eight years.

Branch Office
A branch office of the Peoples Sav
ings Bank of Waterloo, Iowa, will be
established in Dunkerton, Iowa, some
time in May, it was announced by
George E. Allbee, bank president, fol
lowing approval by the Iowa Banking

Iowa News
Department and the Federal Deposit
Insurance Corporation.
The office will be located in two
rooms on the first floor in the rear of
the postoffice building, Mr. Allbee
stated, and hours will be established
in agreement with local merchants
and farmers.

Sponsors Soil-Saving
Prizes amounting to $140 are listed
in a county-wide soil conservation con
test sponsored this year by the Iowa
State Bank and Trust Company of
Iowa City, in cooperation with the
Johnson County Farm Bureau. Indi
vidual prizes from first to fifth are $50,
$35, $25, $20 and $10.
Cash awards are offered for the six
best major practices of sound land
use and soil conservation carried out
on any farm in the county between
September 1, 1945, and September 1,
1946.

Sioux County Election

P rogra m

f o r t i r o 7

May 9th, Cedar Rapids, Hotel Montrose
PROGRAM
10:00 a. m. Registration and Visiting,
Montrose Hotel. (Registration fee
$2 for bankers, associates and ladies;
$3 for non-bankers.)
1:00 p. m. Meeting Called to Order
and Remarks—Presiding, E. G. Engelbrecht, chairman, Group 7; cashier,
Waver ly Savings Bank, Waverly,
Iowa.
Invocation—Dr. Marvin B. Kober,
pastor, St. Paul’s M. E. Church,
Cedar Rapids, Iowa.

Address of Welcome—S. E. Coquil
lette, chairman of the board, Mer
chants National Bank, Cedar Rap
ids, Iowa.
Response—W. W. Blasier, president,
Farmers State Bank, Jesup, Iowa.
Appointment of Committees— (a)
Resolutions.
Address—“Report of Our Associa
tion,” F. L. Sawyers, president,
Iowa Bankers Association; presi
dent, Centerville National Bank,
Centerville, Iowa; president, Saw
yers Savings B a n k , Seymour,
Iowa.

SIOUX CITY NEWS

The annual meeting of Sioux County
Bankers Association was held at the
Town Hall in Alton, Iowa, following
a dinner served by the ladies of the
Presbyterian Church.
New officers elected for the coming
year are: President, S. G. Vanden
Brink, vice president and cashier of
the Farmers Savings Bank of Boyden,
Iowa; vice president, C. A. Slife, cash
ier of the Farmers State Bank of Hawarden, Iowa, and secretary, Earl
Slife, assistant cashier of the Farmers
State Bank of Hawarden.

Edgar R. Cochrane
Edgar R. Cochrane, vice president
and cashier of the Security State Bank
of Keokuk, Iowa, died very suddenly
at his home last month.
Mr. Cochrane had been a resident
of Keokuk since 1897 when he came
from Indiana to work with his brotherin-law, the late W. C. Maxwell, for the
Burlington Route. He remained in
the railroad business until 1905 when
he transferred to the Keokuk National
Bank, with which he has been asso
ciated since.
In 1924 he was elected vice presi
dent, a position he retained when the
National and Security State Banks
merged and which he held at the time
of his death.

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Federal Reserve Bank of St. Louis

Date of Formal Opening
Will Be Announced Later

☆

Our new home at Sixth and
Pierce Streets will be as modern
as tomorrow. It will mean more
room for us and better service
for you.

CECU R irV
V J of Sioux Citv JL
Northwestern

Banker,

May,

1946

Iowa News

Address — “ My New Job,” N. P.
Black, Iowa Superintendent of
Banking.
Address—“G. I. Information to Date,”
Walter T. Robinson, loan guaran
tee officer, Veterans Administra
tion, Des Moines, Iowa.
Remarks—Frank Warner, secretary,
Iowa Bankers Association, Des
Moines.
Report of Committees— (a) Resolu
tions.
4:30 p. m. Adjournment.
4:30 p. m. Conference of officers of
county bankers associations with
Group Chairman E. G. Engelbrecht,
President F. L. Sawyers and Sec
retary Frank Warner.
5:00 to 6:00 p. m. Social hour — The
Stables, Mezzanine Floor.
6:30 p. m. Banquet — Crystal Ball
room, Montrose Hotel, E. G. Engel-

brecht presiding; chairman Group 7.
7:30 p. m. Masonic Choir, under di
rection of Wm. Rinderknecht, vice
president, Peoples Savings Bank, Ce
dar Rapids, Iowa.
8:00 p. m. Address—“What’s Wrong
With America?” , Ernest Robert
Rosse, humorist and philosopher,
Philadelphia.

Bernard A. Bohlke
Bernard A. Bohlke, 68, president of
the Farmers Savings Bank of Remsen,
Iowa, and vice president of the Poca
hontas State Bank of Pocahontas,
Iowa, died at his home recently.
Mr. Bohlke was born February 21,
1878, at Oledenburg, Germany. He
came to Remsen at the age of 7 with
his parents and had resided there
since.
He had been associated with the

Farmers Savings Bank since its found
ing.
Survivors include the widow; two
daughters, Mrs. 0. J. Raveling of Remsen and Mrs. LeRoy Jones of Sioux
City; a son, Arnold of Remsen, and
a grandchild.

Old "Business Calculator"
A few days ago a farmer called at
the Hardin County Savings Bank of
Eldora, Iowa, to have its president fig
ure the number of bushels of corn in
a circular crib, and the amount of oats
in two bins.
The president, James Nuckolls, took
from his desk an old “Business Calcu
lator” issued with the bank’s compli
ments in 1901, and noticed the ad on
the back cover boasting of deposits
of $450,000, and a list of officers and
directors. The present daily statement
of the bank shows deposits of over
$5 000,000 and all the 1901 officers and
directors are now dead except P. S.
Davis, retired, and Mr. Nuckolls, then
assistant cashier, now president.

Earle D. Bellamy

experience to meet your correspondent

Earle D. Bellamy, 60, of Knoxville,
Iowa, a banker and utilities executive,
died at a Des Moines hospital recently.
He was a director and one of the
organizers in 1933 of the Community
National Bank & Trust Company,
Knoxville.
Mr. Bellamy and his brother, Her
bert, in 1919 established the Knoxville
Electric Company, which later was re
named the Marion County Electric
Company. Since 1936 he had been a
director of the Iowa Power & Light
Company.
Since 1926 he had been manager and
secretary-treasurer of the Bellamy
Telephone Company, Knoxville. He
was a director and was president three
times of the Iowa Independent Tele
phone Association.
Surviving are his wife, two sons,
Earl and James, and a daughter, Mary.

requirements in the St. Louis area. You

Appointed Director

Henry K iel Auditorium, facing, Mem orial Plaza in the heart o f the
downtown section o f St, Louis, represents an investment o f nearly
$7,000,000 and is outstanding among convention halls in the country.

I he personnel, facilities, resources and

are cordially invited to use our services

Judge Richard F. Mitchell has been
appointed a director of the Fort Dodge
National Bank of Fort Dodge, Iowa,
it was announced by officials of the
bank. He fills the vacancy on the
board created by the recent death of
R. P. Doud. Appointment is made by
the board. Other members of the
board are: M. F. Jeffries, J. B. Marsh,
Frank C. Moeller, L. L. Pfaff, F. M.
Rankin and E. H. Zuerrer.

H igh T ide
MEMBER

Northwestern

FEDERAL

Banker, May,

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

1946

DEPOSIT

IN SURAN CE

CO RPO RATIO N

Did you hear about the little moron
who flooded his kitchen to see the
kitchen sink?

Tuesday, May 7
GROUP FIVE
Bankers of Council Bluffs and Pottawat
tamie County are delighted to act as
hosts to the 1946 Annual Group Meeting
of GROUP 5. We have arranged a fine
program and we cordially invite your
attendance.
May we count on your presence
here Tuesday, May 7th?

★

City National Bank
State Savings Bank
First National Bank
Council Bluffs Savings Bank
GROUP 5

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Federal Reserve Bank of St. Louis

MAY 7th
Northwestern

Banker,

May,

1946

Iowa News

l*roi/rom

May 10th, Ottumwa, Hotel Ottumwa
PROGRAM
10:00 a. m. Registration at Hotel Ot
tumwa.
12:15 p.m. Luncheon at Hotel Ottum
wa.
1:30 p. m. Meeting Called to Order—
Julien Frost, chairman, Group 10,
I.B.A.; vice president, Decatur Coun
ty State Bank, Leon.
Invocation—Dr. Theodore H. Leon
ard, D.D., pastor, First Methodist
Church, Ottumwa.

dent of Banking, Des Moines.
fìrouIO M
r e tim j
Address — “What and What Not,”

Address of Welcome — Merrill Gil
more, attorney, Ottumwa.
Response—S. H. Watkins, president,
Iowa State Bank, Stockport.
Appointment of Committees by
Chairman— (a) Resolutions; (b)
Nominating.
Talk—“Two and Two Make Four,”
F. L. Sawyers, president, Iowa
Bank e r s Association; president,
Centerville National Bank, Center
ville.
Talk—N. P. Black, State Superinten-

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Two employes of the Muscatine
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Ernest Robert Rosse, humorist
and philosopher, Philadelphia.
Talk—“Livestock Industry of South
east Iowa,” R. G. Plager, manager,
Agricultural Service Department,
John Morrell Company.
Talk—“G. I. Lending in Iowa—Iowa
Banks,” Walter T. Robinson. Iowa
Loan Guarantee Officer, Veterans
Administration, Des Moines.
Talk—“Over-all Insurance Program
for Officers and Staffs of Iowa
Banks,” E. L. Jenkins, supervisor
in charge, Iowa Bankers Insurance
Program for Iowa Bank People,
sponsored by the Iowa Bankers
Association, Des Moines.
Remarks—Frank Warner, secretary,
Iowa Bankers Association, Des
Moines.
Report of Committees.
Adjournment.

Resources exceed

$2,000,000,000

Harold White, cashier of the First
Trust and Union Savings Bank of
Sigourney, Iowa, has moved to his
farm north of Sigourney, and intends
to take things a little easier from now
on. His position at the bank is being
filled by Marion S. Barnes, who will
become the new cashier of the bank.
Mr. Barnes has been the First Trust
and Union Savings Bank’s manager at
the Keswick office, and was assistant
cashier in the firm.
K.
F. McNiel of Lynnville will as
sume the duties of manager of the
Keswick office, he formerly having

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You Should Have It!
N o r th w e s te r n

Banker,

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Federal Reserve Bank of St. Louis

M a y ,

1946

Des Moines 9, Iowa
H o m e O ffic e — S t. L o u i s

Iowa News
been cashier of the First State Bank
of Lynnville.
The changes have now taken place
and each man is working at his new
position.

l* r o ijr iitii

fo r (¿ro 2

May 15th, Fort Dodge, Hotel Warden
PROGRAM

10:00 a. m. Registration and Visiting—
G. W. Evans
Warden Hotel (no registration fee).
G.
W. Evans, 77, vice president and
Ladies’ headquarters, second floor
cashier of the Commercial Savings
parlor, Warden Hotel. Hostesses—
Bank of Lohrville, Iowa, and banker
Wives of the bankers who are mem
there for 43 years, died at his home
bers of the Pocahontas County Bank
last month.
ers Association.

M. E. Toothacre Resigns
Mark E. Toothacre, 80, has retired
as president of the Farmers & Mer
chants Savings Bank of Burlington,
Iowa, a post he has filled for 25 years,
and has been succeeded by Harry Si
mon, former cashier, who has been
identified with the bank since its or
ganization in 1916.
Other changes announced list pro
motion of Charles H. Walsh from as
sistant cashier to cashier, succeeding
Mr. Simon, and Herbert Wittkamp
from teller to assistant cashier, suc
ceeding Mr. Walsh. H. Cosgrove
Walsh was named to the board of
directors.
Mr. Toothacre, although he has re
signed as president, will continue as
a director.

12:00 Noon—No luncheon scheduled.
1:15 p. m. Ballroom, Warden Hotel.
Meeting Called to Order and Re
marks—Ben W. Olson, chairman,

Group 2; president, Security Savings
Bank, Eagle Grove.
Invocation—Rev. W. T. Paden, pas
tor, First Presbyterian Church,
Fort Dodge.
Address of Welcome—H. O. Beneke,
president, Pocahontas C o u n t y
B a n k e r s Association: cashier,
Palmer State Bank.
Response to Address of Welcome—
George J. Schaller, former presi
dent, Federal Reserve Bank of
Chicago; chairman of board, Citi-

Elected Director
Dean McLain, farm operator of the
Champion Hill neighborhood south of
Emerson, Iowa, was elected to the
board of directors of the Emerson
State Bank at its regular monthly
meeting.
Mr. McLain fills a vacancy on the
board caused by the death of M. W.
Ellis of Des Moines.

Goes to Sioux City
B.
E. Holtdorf, mayor of Ireton,
Iowa, the last ten years, has accepted
an executive position with the Morningside Savings Bank of Sioux City,
Iowa, and began his duties May 1st,
H. H. Epperson, bank president, an
nounced recently.
Mr. Holtdorf has been assistant cash
ier of the Security Savings Bank at
Ireton the last 12 years. He was dep
uty clerk of district court at Orange
City. Iowa, from 1932 to 1934. He has
been with the Ireton bank a total of
20 years, and has served as president
of the school board and secretarytreasurer of the chamber of commerce
there.

C h i c a g o C l e a r i n g H o u s e in A c t i o n .
E a c h b u s i n e s s d a y a t 1 0 :3 0
e x c h a n g e d q u ic k ly a n d e ffic ie n t ly b e t w e e n d ir e c t m e m b e r s .

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It supplies
credit information on firms located anywhere in the
United States.
Transmitting of livestock proceeds is
geared to save time— often a full day.

Your Inquiry Regarding the Advantages of
Drovers Service for Your Bank Is Invited

Veterans Manage Bank
Eldon Hess and Leo Schweers are
in charge of the bank at Arcadia, Iowa,
officials of the Carroll County State
Bank have announced. The change in
management became effective April
1st. The bank at Arcadia is a branch
of the Carroll institution. Both Mr.
Hess and Mr. Schweers are army vet
erans.

a. m . t h o u s a n d s o f c h e c k s
A n d a l l in 12 m i n u t e s !

M em b er F ederal D ep o sit Insurance Corporation

DROVERS RATIONAL BARK
DROVERS TRUST B- SAVINGS BANK
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

Northwestern

Banker,

May,

1946

Iowa New:

zens First National Bank, Storm
Lake.
Musical Program—Music by Fort
Dodge High School Choir.
Appointment of Committees— (a)
Resolutions; (b) Nominating.
1:45 p. m.
Talk—F. L. Sawyers, president, Iowa
Banke r s Association; president,
Centerville National Bank, Center
ville.
Talk — Walter T. Robinson, Iowa
Loan Guarantee Officer, Veterans
Administration, Des Moines.
2:55 p. m.
Address—Ernest Robert Rosse, con
structive humorist, Philadelphia.

Talk—“Postwar Installment Lend
ing by Medium-Sized Iowa Banks,”
C. F. Cadwell, member, Install
ment Loan and Consumer Credit
Committee of Iowa Bankers Asso
ciation; president, Union Story
Trust & Savings Bank, Ames.
3:50 p. m.
Remarks—N. P. Black, State Super
intendent of Banking.
Talk—E. L. Jenkins, supervisor in
charge, Iowa Bankers Insurance
Program for Iowa Bank People,
sponsored by the Iowa Bankers
Association, Des Moines.
Remarks—Frank Warner, secretary,

Curtis Companies incorporated
Iowa Corporation
Common Stock
Principle Exempt from
Iowa Monies and Credits Tax

Organized 1866.
This Common
Stock should be bought now for
appreciation possibilities

One of the largest and best known manufacturers of all interior
and exterior woodwork used in modern home building.

Iowa Bankers Association, Des
Moines.
4:15 p. m. Committee R eports— (a)
Resolutions; (b) Nominating.
4:30 p. m. Adjourn.
4:35 p. m. Conference of County As
sociation Officers.

DES MOINES NEWS
Opening of a new G. I. loan depart
ment to specialize in loans authorized
by the government for returned serv
ice men was announced last month by
the Valley Bank and Trust Company.
Frederick M. Morrison, president of
the bank, announced J. Don Wissler
was appointed to head the new depart
ment.
Mr. Wissler returned to Des Moines
several months ago after 2 years serv
ice in the Navy. Prior to joining the
bank, he resumed his position as mort
gage credit examiner for the Des
Moines office of the Federal Housing
Administration where he had been
associated since 1939. Mr. Wissler is
a graduate of Drake University law
school.
E. R. Bowlin has been elected an
assistant cashier of the Central Na
tional Bank and Trust Company. He

Sale by prospectus only, copies of which m ay be obtained from
the undersigned.

KNAPP AND COMPANY
Russell F. Knapp
Henry Gundling

Lowell M. Taylor
Sam S. Johnson

325 Merchants National Bank Building
Dial 5189
C ed ar Rapids, Iowa

B la n k s

a n d

H a n k e r s will find this

institution especially well equipped to handle
their Chicago accounts. Our complete facilities
are at the disposal of all in need of this service.

City N

ational

H ank

AND T R U S T C O M P A N Y o f C h ic a g o
208

SOUTH

(M EM B ER

Northwestern

B anke r,

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

FED ERAL

May,

1946

LASALLE
D E P O S IT

STREET

IN S U R A N C E

C O R P .)

E. R. B O W L I N
N ew A ssistant Cashier

has been in the budget loan depart
ment of the bank the past two years
and formerly was credit manager of
the Amana society. Mr. Bowlin at
tended the Massachusetts Institute of
Technology, Northwestern and the
University of Iowa.
He succeeds Gurdon R. Parker, who
resigned to become manager and sec
retary-treasurer of the newly organ
ized Homestead Securities, Inc., a
finance company which specializes in

Iowa News
automobile, household and signature
loans.
Herbert L. Horton, president, and
Albert J. Robertson, vice president, of

the Iowa-Des Moines National Bank
and Trust Company, attended the Re
serve City Bankers convention in
Palm Beach, Florida, last month.
B. F. Kauffman, president, and J.
G. Gamble, director of the Bankers

Trust Company, have just returned
after vacationing in Florida. Mr. Kauff
man has spent most of the winter in
Florida and Mr. Gamble was there a
few weeks.
Des Moines banks have announced
new business hours for Saturdays
starting May 4th. Banks will open at
9:30 a. m. and close at 12 noon. Pre
viously they were open on Saturdays
until 1 p. m.
Warren Ferguson, head teller at the

Iowa State Bank, is returning to the
bank after two years service in the
Navy.

P r o g r a m fo r lìrtnip it M o o tin g

Bank Robber Sentenced
Iowa’s first bank robbery since May
9, 1942, ended in a life term sentence
for Clark Cummings, 25, just four days
after he held up the Denmark, Iowa,
office of the Farmers Savings Bank of
Wever on April 23rd. He was appre
hended in Rock Island, Illinois, one
day after the robbery and was taken
to Fort Madison, Iowa, where he
signed a confession.
Quick thinking on the part of Mrs.
Lois Woodroffe, branch office manager,
saved the bank $2,450. Cummings
handed her a paper sack and demanded
her to fill it up. She gave him the
$79 from the cash drawer, then said
the rest in the safe was under time
lock, although the safe was really un
locked at the time. He then left but
was arrested in a box car in Rock
Island the next day.

Greetings—F. L. Sawyer, president,
Iowa Bankers Association.
Address—Ernest Robert Rosse, Phil
adelphia.
Iowa Bankers and Postwar Banking
—Hon. N. P. Black, Iowa Superin
tendent of Banking.
Veterans Loans—Walter T. Robin
son, Iowa Veterans Loan Guaran
tee Officer.
Remarks—Frank Warner, secretary,
Iowa State Bankers.
Committee Reports — Resolutions
and Nominations.
4:15 p. m. Adjournment.

May 17th, Muscatine, Hotel Muscatine
PROGRAM
9:30 a. m. to 1:00 p. m. Visiting and
registration at Muscatine Hotel. Ad
journ to Elks Club Room where C.
H. Haesemeyer, chairman, Group 8,
will preside, beginning at 1:30 p. m.
Invocation—Rev. Stanley M. Fullwood, rector, Trinity Church.
Welcome—Mayor Elmo Ferguson.
Response—Bruce Townsend, secre
tary, Group 8.
Appointment of Resolutions
Nominations Committee.

and

W ELCOM E TO
MASON CITY

Adds 576 Safety Boxes
The First National Bank of West
Des Moines, Iowa, has completed in
stallation of 576 additional safety boxes
which brings the total number to 960
boxes available to bank customers.
During the past three years too many
people had to be turned away, but
R. M. Messerschmidt, president, be
lieves there are now enough available
for all in the community.

MAY 14th
■

The banks oí Cerro Gordo County are happy to act
as hosts to the Group 3 annual meeting in M ason
City, Tuesday,

M ay

14th.

promise you

enjoyable and profitable day.
Every detail has been arranged for your profit and
pleasure, and we are anticipating a large attend
ance.

Come and enjoy our Group 3 meeting, M ay

14th!

CERRO GORDO COUNTY BANKERS ASSOCIATION
CLEAR LAKE BANK & TRUST C O M P A N Y ............. .......Clear Lake
SHEFFIELD SAVINGS BANK BRANCH.................... .........Dougherty
FIRST NATIONAL BANK OF M A S O N CITY.......... ......Mason City
UNITED HOME BANK & TRUST C O M P A N Y ..... .... M ason City
FIRST STATE BANK BRANCH..................................... .......... M eservey
M AN LY

STATE BANK

BRANCH............................... .......... Plymouth

FARMERS SAVINGS BANK OF ROCK FALLS. .. ........Rock Falls

Ju st K ibitzin g
Teacher: “That’s the third time
you’ve looked on Bob’s paper.”
Pete:
“ I know—his writing is
awful.”

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

FIRST STATE BANK OF THORNTON..................... ........... Thornton
VENTURA STATE BANK................................................... ............. Ventura

Northwestern

Ba n ke r , M a y , 1946

Iowa News

5:00 p. m. to 6:15 p. m. Cocktail Hour,
Hotel Muscatine.
6:30 p. m. to 8:00 p. m. Buffet Supper,
Hotel Muscatine
9:00 p. m. to 12:00 p. m. Dance, Ho
tel Muscatine.

Woodbine Bank Host
One hundred and ten men, includ
ing cattle feeders from Harrison, Shel
by, Monona and Crawford counties
and bankers and newspaper men from
Omaha and Council Bluffs, were pres
ent at a dinner and program in the
Legion Hall in Woodbine, Iowa, last
month.
The meeting was given under the

auspices of the First National Bank
of Woodbine, the extension service of
Iowa State College, and Paul W. Watts,
Harrison county extension director.
Dinner was followed by an interest
ing program, with S. R. DeCou, cash
ier of the First National Bank, as toast
master.

Bank Building Goes Up
The new State Savings Bank Build
ing in Council Bluffs, Iowa, was given
the green light on construction despite
a civilian production administration
order drastically curtailing commer
cial construction. Local officials and
the Bank Building and Equipment

Company of St. Louis believe the bank
has priority to be built since all mate
rials were ordered before the recent
cutback in materials for this type of
construction. Clyde Blanchard, execu
tive vice president of the bank, said
he is going to let interpretation of the
CPA’s order be done by the construc
tion company and hope everything
works out.

IS A SECOND MORTGAGE
VALID?
(Continued from page 26)
stipulation that made detailed pro
visions for the support and custody of
the children. As a matter of fact, the
divorce decree outlining the terms of
the divorce followed such stipulation.
Later on, due to a change in circum
stances, the banker sought to have the
decree modified. Could he do so even
though it was based on a stipulation
previously entered into by him?

Yes. A decree of divorce providing
for the custody and support of the
children of the divorced parents may
be modified as circumstances require
even though it is based upon an agree
ment or stipulation of the parties. In
South Dakota the jurisdiction of the
court in a divorce action to make
suitable provision for children is a con
tinuing one and it may from time to
time vacate or modify previous decrees
with reference thereto to meet chang
ing conditions.

Q.
R oom in ess •••sm ooth n ess •••silent com fort

a t e y o im o n T h e f f j m
T T ’S hard to beat a Milwaukee Road
train for comfort and satisfaction.
Consider a few of the many advan
tages of travel on the Speedlined
HIAW ATHAS.
Com plete facilities— Step into the
celebrated Tip Top Tap for a sand
wich or beverage. Appetizing dining
car meals at low cost.
R oom to m ove around— you get not
just a deep-seated reclining chair, but
a whole car— or train— to stroll through.
Roomy lounges; clean, well-equipped
wash rooms.
Smooth com fort— modern train de
sign and a seasoned, well-ballasted
roadbed assure a smooth, silent ride.

t h llé

Scenic charm— wide windows give
you an unobstructed close-up of the
rivers, forests, fields and villages.
W eatherproof reliability — storms
hold no discomfort, fog doesn’t delay.
You get there on time on the HIA
W ATHAS.
Speed ivith econom y— your trip on
the H IAW ATH AS starts and ends at
downtown stations, you travel at high
speeds, yet round trip coach fares are
less than two cents a mile.
W e’re still busy carrying veterans
home, hut there’ll he room for you on
one of the H IAW ATHAS. See your
nearest railroad ticket agent for
friendly travel counsel.

F. N. Hicks, Passenger Traffic Manager, Chicago

t h

ru e

u i a \/l a t u a c

TH l

H IA W A T H A S :

Northwesfern

Banker,

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

il w

p t i

a i"1r »

a u k e e

R o a d

i Milwaukee—LaCrosse— St.

Paul — Minneapolis

C H lC A b U | Des Moine8_ 0m aha_ Sioux C it y _ Sioux Falls
May,

1946

Caldwell, a banker, was ap
pointed guardian of the estate and
person of Hobart, an incompetent. The
estate was a substantial one that pro
duced more income than was required
to care for Hobart. Some of Hobart’s
relatives were poor and, prior to the
guardianship, Hobart had aided them
financially. He would probably have
continued to do so had he remained
of sound mind. Could Caldwell, with
court approval, assist them from the
income funds of Hobart’s estate?

Yes. The general rule on matters
of this kind is that surplus income
from the estate of an incompetent
may, with the approval of the court
having jurisdiction, be applied for the
benefit of those the incompetent would
probably have aided if of sound mind.

Suppose that, in the precedingquestion, the problem presented was
an Iowa one of whether the guardian
could, with court approval, contribute
on behalf of his ward to a charity to
which the incompetent had formerly
been in the habit of contributing.

Iowa News
Could the court having jurisdiction of
the ward’s estate validly approve such
action?

Yes.
The Iowa Supreme Court
recognizes that the court having juris
diction over an incompetent’s estate
may authorize donations by the guar
dian for charitable purposes to which
the incompetent had formerly been in
the habit of making contributions.
Q . Baker borrowed $3,000 in Minne
sota from Nuttall and Firth giving
them as security a mortgage covering
certain real estate owned there by him.
The indebtedness was not divided as to
any particular amounts, or otherwise,
between Nuttall and Firth. When it
came due Baker made payment to Nut
tall of the entire amount and Nuttall
gave Baker a release in full of the
mortgage. Did the release operate to
satisfy and cancel the mortgage?

Yes. Where an undivided debt se
cured by mortgage is owed to two or
more creditors, it may, when due or
thereafter, be paid to either or any one
of such creditors, and the one or ones
to whom it is paid may effectually dis
charge the debt and mortgage. It has
been so held in several cases in Min
nesota.

OLD WAY-Slow,Wasteful,Tedious

Assistant Secretaries
At a meeting last month of the board
of directors of Bankers Trust Company
of New York, G. Ronald Ince, Frank
J. Jones, Joseph C. Kennedy and Rob
ert P. Ulm were elected assistant secre
taries, and will continue their associa
tion with the Corporate Trust Depart
ment.
Charles A. Frank was elected an
assistant treasurer and will be as
signed to Division III of the Banking
Department.
Joseph C. Bickford and Gordon
Woodward, formerly assistant treasur

ers, were elected assistant vice presi
dents and will continue their associa
tion with the Credit and Security De
partment. Effective May 1st, Mr. Bick
ford took charge of answering in
quiries and providing investment serv
ice for correspondent banks and other
institutional investors. Mr. Woodward
will continue to supervise the credit
work of the department.
W hat a F o o l A in 1
Making a fool of yourself isn’t such
a bad mistake if you have sense
enough to know who did it.

EIGHT BANKING DIVISIONS ARE
ALWAYS AT Y O U R S E R V I C E
The correspondents o f Mercantile-Commerce enjoy the
counsel and services o f any or all o f the following com
pletely staffed departments:
COMMERCIAL LOANS • TRUST • BOND
FOREIGN • SAVINGS • REAL ESTATE
CONSUMER CREDIT • SAFE DEPOSIT

ACCURATE-

HanéHng of loose Coins

The DOWNEY
CHANGE TRAY
THE MODERN WAY
H IS aluminum Tray holds 10
coins each of pennies, nickels,
dimes, quarters and halves in each
of 68 staggered pockets for quick
handling. Raised black figures on
border mark pockets. Teller can make
change with speed. Size of Tray:
12y8 in. by 9 in. May be placed on
counter, mounted on pedestal to
save space or on short legs for
nesting and storage in vault.

In the operation o f these divisions it is likely we have
met and solved many problem s which, perhaps, may
confront you for the first time.
W e invite you to take advantage o f all o f our facilities,
knowledge and experience, .for these eight departments are
always at the service o f our correspondent banking friends.

MERCANTILE
B a n k and

COMMERCE
T ru s t C o m p a n y

ST. LOUIS 1 ¡

MISSOURI

W R I T E T O D A Y , t o DE PT. G

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

MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Northwestern

Banker,

May,

1946

Iowa News

iw . M . I ,

tutu (¿uestion H ox
(Continued from page 23)

installed on a permanent foundation
on real estate owned or to be owned
by the veteran.
Q. May a veteran and his wife take
title as joint tenants and not as ten
ants in common?

Yes. The value of the interest owned
by veteran and wife in property to be
encumbered is the value on which the
extent of the guaranty is to be predi
cated and the amount thereof is not to

be limited to value of interest owned
by veteran exclusive of spouse’s in
terest acquired by virtue of relation
ship only.
Q. May real estate mortgage loans he
refinanced?

Only if delinquent.
Q. May contracts representing equi
ty in real estate he refinanced regard
less of date?

Yes.

DIRECT SENDING OF ITEMS
Unequaled in the United States
Commerce sends more items direct for
collection than any bank in the United
States.
This unexcelled service speeds up the
handling of your transit items by saving
you one day or more.
This pioneer 24-hour transit bank main
tains night operations in the Kansas City
Union Station.

Mail is received at and

delivered to the Post Office every 30 min
utes d ay and night.
Here is unmatched swiftness and effi
ciency ready to serve you any time— and
we are glad to serve you

all w ays—

alw ays.

(ommercejrtist (oinpany

Q. What is there in the Act or Regu
lations to prevent a veteran from buy
ing real estate on contract at a price
which obviously would exceed any ap
praisal which might he made, pay the
difference in cash, and after a few
months apply for a loan to refinance
the contract, thus evading the provi
sions of the act intended to protect
him from inflated values?

It is evident that this creates an eva
sion of the intent of the Act. Central
Office advises that new instructions
are in the process of preparation
which will supplement Sec. 36.4306 (2)
of the Regulations. Apparently no
hard and fast rule can be established
which will furnish benefits to meri
torious cases and at the same time
serve to overcome any attempted eva
sions. Where it is apparent to the
lender or Loan Guarantee Officer that
evasion of reasonable value is indi
cated, the case will be disapproved.
Q. Who is responsible for soundness
of the loan?

Under the amendment the responsi
bility is largely delegated to the lender
subject to reasonable value as deter
mined by a designated appraiser. It
now becomes the responsibility of the
lender along with the appraiser to
know that the value is reasonable and
that the veteran’s present and antici
pated income bear a proper relation to
the contemplated terms of payment.
Q. May loans which have been pre
viously guaranteed now he placed
under the Insured Plan?

No. Insurance must be requested at
time Loan Report is submitted. Other
wise the loan is not eligible for insur
ance. Three per cent discount may be
charged only in the case of insured
loans on personal property.
It is essential and required that
questions be answered. Forms have
been shortened and simplified for bene
fit of lender but required information
must be furnished. Automatic Guar
anty or Request for Prior Approval
must be indicated. “ Has been” or
“will be” answers whether guaranty
is automatic or prior approval is re
quested. Save time and effort by sub
mitting Loan Reports complete and
correct.

GofUioi tf-uttcLl S'X.ce&d 2.0 Million. ^boilosU

KANSAS CITY'S LA R G EST BANK
Established 18b5

Northwestern

Banker, Ma y ,

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

1946

În SUR ANC E^COFF^ORAH O N

All Over
She: You mustn’t, Bill. You’re an
officer and a gentleman.
He: Not me! I was discharged yes
terday.

Iowa News

WAGE-HOUR LAW
(Continued from page 20)
541, Code of Federal Regulations). The
requirements for exemption in each
of these classifications are separate and
distinct. In no event can the employe
meet the requirements for exemption
as an executive employe if his salary
is less than $30 a week or as an ad
ministrative employe if his salary is
less than $200 a month or $50 a week.
Compensation is not the only test,
however, nor is it correct to say that
because a man manages an establish
ment or a recognized department, he is
an executive and necessarily exempt.
Before an employe can be classed as
an executive or administrative em
ploye, he must meet all the basic re
quirements for such exemption. # #

W HAT DO YOU THINK?

chandise, but have been reluctant to
make a formal complaint—merely dis
cussing it with members of the price
panels who were powerless to act
without a formal complaint.
“ I certainly favor price control, but
I mean real price control—-to be con
tinued, but easing off gradually as
production increases.”

A Safe Bet
A big-time gambler had just died.
The funeral was well attended by his
professional friends. In eulogy, the
speaker said, “Spike is not dead. He
only sleeps.” From the rear came a
voice, “ I’ve got $100 that says he’s
dead.”

THE

0 \Ti\II\TlL
B A N K & T R U S T COM PANY

(Continued from page 15)
Ray A. Nold, executive vice presi
dent and cashier, Rock Rapids State
Bank, Rock Rapids, Iowa: “ I think
banks could take all the consumer
credit business if made on a proper
basis comparable to the requirements
of Regulation W.”
.1. P. Schutt, president, Valley State
Bank, Rock Valley, Iowa: “ I think
small community banks such as ours
should take on only such consumer
credit as is reasonably needed in their
own particular communities. I still
believe that we should not be too
active in promoting instalment buying
as cash buying is still the best for all.”

OF NEW YORK
M EMBER O F T H E FED ER AL DEPO SIT IN S U R A N C E C O R P O R A T I O N

First Trust & Savings Bank
CEDAR RAPIDS. IO W A
Statement of Condition, December 31, 1945

Frank H. Trueblood, Bedford, Indi
ana: “ I think the black market in my
community is as bad, if not far more
serious, than we are led to believe. My
conviction is based upon instances
that have happened personally, and
upon information reliable beyond a
doubt. Retail violators have been
fined, but this information has not for
some reason become public informa
tion—such as a news item in our one
and only daily newspaper. Too, re
tailers in their desire to procure mer
chandise for resale have paid over
the ceiling prices to secure such mer-

RESOU RCES

L IA B IL IT IE S

L o a n s a n d D i s c o u n t s .....................$ 7 2 7 ,9 4 3 .5 7
S ta te , C o u n ty , M u n ic ip a l an d
o t h e r b o n d s ....................................
4 9 0 ,3 4 8 .5 6
O v e r d r a f t s ............................................
8 7 2 .9 5
B a n k in g H o u s e a n d F ix t u r e s
4 4 ,2 0 0 .0 0
E l y O ffic e B a n k in g H o u s e
a n d F i x t u r e s ..................................
1.00
U . S. G o v e r n m e n tS e c u r it ie s
2 ,4 0 2 ,6 2 1 .7 5
C ash o n h a n d an d du e
f r o m b a n k s .........................
1 ,0 3 9 ,8 8 5 .6 3

C a p i t a l S t o c k ( C o m m o n ) .......... $
5 0 .0 0 0 .
S u r p lu s ....................................................
R e s e rv e fo r C o n t in g e n c ie s ....
6 0 .0 0 0 .
O th e r R e s e r v e s a n d U n d iv id e d
2
5 ,2 9 3 .2 4
P r o f i t s .................................................
4 ,1 2 0.9 1
U n e a r n e d D is c o u n t
D e p o s i t s ................................................. 4 ,4 6 6 ,4 5 9 .3 1

$ 4 ,7 0 5 ,8 7 3 .4 6

100,000.00
00
00

B ank op ened fo r b u sin ess N o v em b er 5th, 1934
F. S. M IT V A L S K Y , President
D R . JO H N 0 . P E T R O V IT S K Y , Vice President
F R A N K J. D V O R A K , Cashier
L. W . S T R IT E S K Y , A sst. Cash and Trust Officer
F R A N K J. STASTN Y, Asst. Cash, and A sst. Trust Officer
MEM BER

FEDERAL

D E P O S I T IN S U R A N C E

CORP.

D id you know there’s a gap in your Cash Letter protection
that you could “ drive a truck th rou g h ?” A sk us how to bridge it
without costing you a cent.

Scarborough & Company
In s u r a n c e C ounselors

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

FIRST N A T I O N A L BA N K BL D G . • C H IC A G O 3 , ILL . • S T A T E 4 3 2 5

to B a n k s
Northwestern

Banker,

May,

1946

Iowa News

DEAR EDITOR

fo r

(Continued from page 13)
C o r p o r a tio n

o p e r a tin g

fo r

to ta l

$ 3 ,3 0 0

$ 1 1 ,5 0 0 ,0 0 0 ;

N e

average

m ade

ty p e s o f b u s in e s s e s .

d iffe re n t

a d d itio n m a n y h u n

v a d a , A r iz o n a a n d a p a r t o f E a s te r n O re g o n ,

d r e d s o f t h o u s a n d s o f d o lla r s w o r t h

d u r in g th e fir s t s ix m o n t h s o f

lo a n s

329

in q u ir ie s , m a d e

$ 5 ,2 9 9 ,8 4 9 .

1 9 4 4 , r e c e iv e d

1 4 1 lo a n s , d o lla r v o lu m e

lo a n s

ty p ic a l

“ In

A p r il,

v e r s io n
T erm

a g g r e g a tin g

$ 6 1 ,0 0 0 ,0 0 0

That

m o n th .
1945,

a id

p o stw a r

recon

o f s m a ll b u s in e s s , w e in tr o d u c e d
Loans

p u rp oses.

over

$ 1 0 ,0 0 0

have

been

‘ ‘ P r iv a te

fo r

s m a ll

U nder

b u s in e s s

th a t p la n

fo r

a ll

th e

w ay

needs

c o n v in c e

m ent

o f th e

th is

th re e

in fo r m .

e n te r p r is e

b a n k in g

sou n d
b o th

tru th
w ord

can

b u s in e s s .
b u s in e s s

o f th is

c la im

p re ce p t:

s u p p ly

The

and

b est

govern

is to

fo llo w

P e r fo r m ,

th en

V ice

w e h a v e a lr e a d y

M a ttiso n ,
P re sid en t,

E x ec u tiv e
Panic

A m eric a , San F ra n cisco, Cal.

m a d e 3 ,5 0 0 lo a n s f o r a m o u n ts u p to $ 1 0 ,0 0 0 ,

UNITED HOM E BANK & TRUST CO,
MASON CITY, IOWA
Statement of Condition at Close of Business December 31, 1945

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

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

L IA B I L I T I E S
C a p ita l
$ 100,000.00
S u r p lu s
50 000.00
U ndivided P rofits
97,874.78
R ese rv e fo r C on tin gen cies
30,000.00
R ese rv e for In co m e T ax
27,023.94
D e p o sits
9,279.297.85

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

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

$9,584,196.57

O F F IC E R S
E . W . C la r k , P r e s id e n t
W . E . G ild n e r , V i c e P r e s id e n t
R . A . P o tte r , C a s h ie r
W . H o w a r d S te w a r t, A s s t . C a s h ie r

F .F . P o t t e r , V i c e P r e s i d e n t
J. A . V a n N e s s , V i c e P r e s i d e n t
C. F . W e a v e r , A s s t . C a s h i e r
C l a u d e E . S in n e t t , A s s t . C a s h i e r

M EM BER FE D E R A L R E S E R V E BANK
M EM BER FE D E R A L D EPO SIT INSURANCE CORPORATION

A GOOD TRICK

TENSION
TIE
ENVELOPE

TWO B U TTO N S W

* S TR IN G !

A good trick and anyone can do it
— one simple twist o f the string
’round the low er button o f the
Tension Tie envelope and everything’s
u n d e r c o n t r o l —and lo c k e d in.
Popular sizes carried in stock. Made
in any size and paper.

1912 Grand Avenue

Phone 4-4126

P u y:

has been
te e

fo r

s u b m itte d

s ilv e r

n ific e n t c o o p e r a tio n
B

our

m edal

a n k e r

C ita tio n

aw ard

fo r

ex ten d ed b y

th ro u g h

F in a n c e D iv is io n o f th e

you

U. S.

v ertisin g ,

th e N
to

th e

m ag
o r th

W ar

T reasu ry. ’ ’

S a vin gs

p a rtm en t, W a sh in g to n , D . C.

Des Moines 14, Iowa

Consumer Credit Service
Bankers Trust Company of New
York announces the opening of a con
sumer credit department, which will
make personal loans from $60 to $3,500
to individuals, which are repayable out
of income, and home modernization
loans with repayment terms as long
as 36 months. This service is offered
in all Bankers Trust Company offices.

Elected Honorary President
Frederick E. Hasler, chairman and
president of The Continental Bank &
Trust Company of New York, was
elected honorary president of The Pan
American Society of the United States
recently after having served the limit
of six consecutive terms as president
of the society. The election took place
at the 34th annual meeting of the so
ciety which was held at the University
Club. Thomas W. Palmer, counsel of
the Standard Oil Company of New
Jersey, was elected president.
The six years Mr. Hasler served as
president were among the most active
the society has enjoyed since its found
ing in 1912. During this period its cul
tural and educational influence was
materially increased and its member
ship strengthened.

NEWS AND VIEWS
(Continued from page 22)
serfs, Tea or Coffee.” Must be the
Chester Bowles influence to keep
prices down.
Drove by the Pentagon Building as
we didn’t have time to go in and get
lost. The estimated cost was 30 mil
lion but when completed it cost 101
million.
When at “war strength”

In t he h e a r t o £ d o w n t o w n S i o u x C i t y
1946

C o m m it
th e

B o n d D ivision , T rea su ry D e

Specializing in Service to
Correspondent Banks

N o r t h w e s t e r n B anke r, M a y ,

very

E lih u E . H a rris, C h ief, A d

THE TO Y NATIONAL BANK

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

our

y o u th a t y o u r n a m e

’’

our

c a p ita l

R E S O U R C ES
Loans and D iscou n ts . . $1,741,409.96
U. S. G overnm ent and other
B onds
4,877,999.25
S to ck in F ed era l R ese rv e Bank
4,500.00
S afe D ep osit V ault
. . .
10,144.83
Furniture and F ix tu res . .
6,992.78
O verdrafts
1,121.42
Cash on Hand and D ue from
Banks
2,942,028.33

M r.

g r e a t p le a s u r e to i n fo r m

w e ste r

B y c o n tr a s t, in th e s in g le m o n th

th e s a m e c a te g o r ie s o f s m a ll b u s in e s s .
w as

a m o u n ts

o f term

m ade.

o f J u n e , 1 9 4 4 , B a n k o f A m e r ic a m a d e 1 3 ,0 0 0
u n secu red

"Silver Medal Award"

‘ ‘ D ear

‘ ‘ T h e s e lo a n s w ere

C a lifo r n ia ,

p e r lo a n .

Iowa News
there were 40,000 persons employed in
the building and 300 telephone opera
tors handled the “calls.”
There is one “Officially Unknown
Soldier” at Arlington Cemetery, but
there are 4,000 other unknown dead
buried there. The only president of
the United States buried in Arlington
is William Howard Taft. His wife is
also buried with him. Head stones of
Confederate soldiers are pointed and
head stones of other soldiers are
rounded.
Attended a 2:00 p. m. session of the
States Senate and counted
about 15 senators in their places and
“ on the job” and among them was
Senator Robert H. Taft of Ohio.

the F. B. I. and we found additional
evidence of it on our visit through his
department. We were especially in
terested in the material his agents
secured from the German saboteurs
who came over in a German submarine
and planned to blow up a dozen war
plants and railroads but were appre
hended in 14 days.
Rev. Roelif H. Brooks is rector of
Saint Thomas church, New York
City, which was founded in 1823, but
he evidently still feels that there are
some “wayward souls” in each con

gregation who do not fully believe in
the efficacy of religion, as the Church
Bulletin suggests to the parishioners,
“May we remind those coining to the
altar for Holy Communion not to
leave their purses in the pews.”

The University of Virginia at Char
lottesville, Virginia, was founded in
1819 and has an enrollment of 3,000
students. A bronze plaque on one of
the buildings says “Woodrow Wilson,
Student 1879-1883, President, United
States, 1913-1921. Founder League of
Nations, 1919.”

United

For your traveling clients

Saw the Supreme Court in action
and heard a colored lawyer present
his case for a client who had been
put off a bus because he was a negro
and sat in the “white section” instead
of the Jim Crow part of the car. All
members of the court were present
except Justice Robert Jackson who
was at the Nuremberg trials.
J. Edgar Hoover is still doing a
wonderful piece of work as head of

MERCHANTS

"Mr. Wooding, may I sug
"W ill you cash this check
gest that you carry your
• for $500, please? I’m about
travel funds in American Express
to start on another business trip.
Travelers Cheques? They’re as
Seems to me all I do is travel,
spendable as cash —and safer.
these davs.”

MUTUAL

B O N D IN G
COM PANY
Incorporated 1933

Home Office
SO U TH E R N S U R E T Y B U ILD IN G

Des Moines, Iowa

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

Write to

E. H. WARNER
Secretary and Manager

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

'T f any of these cheques are w i "The amount of your loss
9 will be quickly refunded.
9 lost or stolen, you simply
More and more businessmen are
report your loss to the nearest
using these Travelers Cheques.”
American Express office.

u s i n e s s m e n making trips, and other travelers, w ill'w e l
come a suggestion to safeguard their travel funds. For infor
mation about American Express Travelers Cheques and for
advertising material, write W . H. Stetser, Vice-President,
American Express Co., 65 Broadway, N ew York 6, N . Y .

A m erican E xp r e ss
T r a v e le r s C h eq u es
Northwestern

Banker,

May,

1946

Iowa News

At Monticello, the home of Thomas
Jefferson, you realize again how di

C eleb ra te F ifth A n n iv ersa ri/

versified the interests of this great
man were for during his 83 years
before he died on July 4, 1826, he had
been an architect, an inventor, a law
yer, a violin player and a great states
man.
At Williamsburg, Virginia, we vis
ited again the restored buildings

T he
N e w Y o r k T rust
Co m p a n y
COMMERCIAL
BANKING
DOMESTIC AND
EOREIGN

THE IOWA STATE B A N K ’S
w iv e s

c e le b r a te d

D e s M o in e s C lu b .

o ffic e r s a n d

a n n iv e rsa ry

e m p lo y e s

la s t m o n th

and
at

T h e o r ig in a l s t a ff o f th e b a n k w a s n in e .

d ir e c to r s a s th e y a tte n d e d

★

th e b a n k ’s fifth

th e d in n e r :

From

ton, p r e s i d e n t , A. E. Sargent, William A. Broquist;
George O’Dea, v i c e p r e s i d e n t a n d c h a i r m a n o f t h e
rep ort

A p r il

16 th

$ 6 ,3 2 5 ,7 5 8

com p ared

at
w ith

th e

end

fir s t

day

h u sban ds

d in n e r

th e

and
E ast

P ic tu r e d a b o v e a re th e

G-. A. FrampHugh N. Gallagher,
Ed O’Dea, a b r o t h e r

l e f t to r ig h t , b a c k r o w ,
b o tto m

row ,

b oard, an d

o f G e o r g e O ’ D e a b u t n o t d i r e c t ly a ffilia te d w ith th e b a n k .

100 B R O A D W A Y

th e ir

fiv e
a ssets

years
of

T h e Io w a S ta te B a n k ’s

o p e r a tio n

$ 1 2 5 ,0 0 0 .

sh o w s

P resen t

a sse ts

d e p o s its

of
are

O t h e r o f f i c e r s a r e George H. Borg a n d J. Hamilton Dawson, v i c e p r e s i
L. A. Rodenbaugh, Jr., c a s h i e r , a n d M. J. Dwigans, a n d Carl W. Moody,

$ 6 ,1 1 4 ,0 7 8 .

MADISON AVENUE
AND 40TH STREET

TEN
ROCKEFELLER
PLAZA

★
Member o f Federal Deposit Insurance Corporation

d e n ts,

a s s is ta n t

c a s h ie r s .

which so effectively “tell the story” of
this capital and metropolis of the Vir
ginia Colony during the 18th century.
The project was started in 1927 by
John I). Rockefeller, Jr., and so far has
cost $20,000,000, but this amount does
not appear anywhere in the literature
about the place, but the plan is re
ferred to as “ Colonial Williamsburg,
Inc.”
Among many interesting facts are
these two—Venetian blinds were in
vented in 1770 and used in the build
ings of that time. Also in the “Raleigh
Tavern” in the Apollo room the Phi
Beta Kappa fraternity was founded
in 1776.
In Dover, Delaware, is this sign,
“Jimmie’s

Submarine

Sandwiches.”

We assume you eat one and sink.

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

JAY A. W ELCH
BANK BROKER
Haddam, Kansas
“ 37 Years Practical Banking E xperien ce”
N o r t h w e s t e r n B anke r,

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

May,

1946

While in Cambridge, Mass., we had
lunch with Prof. Dan T. Smith at
the “Faculty Club” of the Harvard
Business School. The school costs
about $1,000,000 per year to operate.
This year they have had over 4,000
requests for information about the
school and 1,400 applications received
from which only 300 can be accepted
for the next term.

Harvard University was founded in
1638 by John Harvard, a minister.
One of the fine buildings of the Uni
versity is the Widener Library which
is a memorial to Harry Elkins Wide
ner, who was killed on the Titanic in
1912. The library contains over 3,500,000 volumes. The total books in all
the Harvard libraries is 5,000,000, in
cluding 250,000 volumes in the Busi
ness School alone.
Roland C. Irvine, vice president,
Chase National Bank, New York, let us
sample again the very fine cuisine in
the bank’s private dining room. Ro
land, who is a most delightful host
and one of the best story tellers we
know, also seemed to feel that his in
stitution, which is the largest in the
world, was in good shape with de
posits of $5,140,000,000 as of March 30,
1946, and with $3,000,000,000 of their
deposits invested in government
bonds.

To Reserve Meeting
C. Hobart Chase, vice president,
First National Bank in St. Louis, at
tended the annual meeting of the Re
serve City Bankers Association held in
Palm Beach, Florida, April 8th to 10th.

Iowa News

C O N V E N T IO N S
May 7-17, Iowa Group Meetings.
May 20-22, Missouri Annual Conven
tion, St. Louis, Jefferson Hotel.
May 23-25, National Association of
Bank Auditors and Comptrollers,
Ninth Annual Mid-Continent Re
gional Meeting, Milwaukee, Hotel
Schroeder.

May 27-28, Regional Savings and Mort
gage Conference, Des Moines,
Hotel Fort Des Moines.
June 11-14, American Institute of
Banking, Cincinnati.
June 12, Iowa Junior Bankers, Des
Moines, Hotel Fort Des Moines.
June 12-13, Minnesota Annual Conven
tion, Minneapolis, Hotel Nicollet.
June 14-15, South Dakota Annual
Meeting, Rapid City, Hotel Alex
Johnson.
June 17-18, North Dakota Annual
Meeting, Fargo, Gardner Hotel.
June 19-20, Wisconsin Annual Conven
tion, Milwaukee, Hotel Schroeder.
July 28-August 10, Central States
School of Banking, Madison.
September 9-11, Iowa Annual Conven
tion, Des Moines, Hotel Fort Des
Moines.
September 22-23, A. B. A. Annual Con
vention, Chicago, Hotel Stevens.
October 7-10, Financial Advertisers
Annual Convention, San Fran
cisco.

Farmers Mutual Hail Insurance Com
pany of Iow a.................................................47
First National Bank— Chicago................... 70
First National Bank— Minneapolis........... 53
First National Bank— Omaha...................... 62
First National Bank— St. Joseph................ 64
First National Bank— St. Louis.................72
First National Bank— Sioux C ity............. 68
First Trust and Savings Bank— Cedar
Rapids .............................................................. 81
First Wisconsin National Bank.................. 37

DES MOINES BUiLDING-LOAN &
SAYINGS ASSOCIATION
Oldest In Des M oines
210 6th Ave.
Dial 4-7119
ELMER E. MILLER
Pres, and Sec.

Guaranty Trust Company...............................38

HUBERT E. JAMES
Asst. Sec.

FOR Y O U R E N JO YM E N T . . .

Listen to the

Halsey, Stuart and Company, Inc............. 43
Hammermill Paper Company................30-31
Herring-Hall-Marvin Safe Company. . . . 11
Home Insurance Company........................... 6

“ W O R L D OF M U SIC”
KRNT, 1350 KC

1 to 1:30 p.m. Sundays

1
Iowa-Des Moines National Bank and
Trust C om p an y..............................................88
Irving Trust Company................................... 12
J

Jamieson and Company.................................50
K

Koch Brothers ..................................................85
Knapp and Co..................................................... 76
L

LaMonte, George and Son............................ 3
Lessing Advertising Company.................... 84
Live Stock National Bank— Chicago . . . . 29
Live Stock National Bank— Omaha........ 66
Live Stock National Bank— Sioux C ity .. 54

M
Manufacturers Trust Company................. 7
Mercantile Commerce Bank and Trust
79
Company ..................................................
Merchants Mutual Bonding C om pany... 83
Merchants National B ank........................... 2
Merrill Lynch, Pierce, Fenner and Beane 41
Minnesota Commercial Men’s Ass’n ........ 51
Mississippi Valley Trust Company.......... 36

INDEX OF
ADVERTISERS

National Bank of Commerce....................... 64
National Company of Iow a............................ 43
New York Trust Company........................... 84
Northern Trust Company..............................34
Northwestern National Bank..................... 48
Northwestern Life Insurance Company. .47

MAY, 1946

Old Republic Credit Life Ins. Co..................46
Omaha National Bank..................................... 27

Bankers:

o
A

Allied Mutual Casualty Company..............46
Allyn, A. C. and Company...............................42
American Express Company........................ 83
American National Bank and Trust Co.. .32

H
Bankers Trust Company— Des Moines. . .87
Bankers Trust Company— New York. . . . 8
C

Central Hanover Bank and Trust C o .... 5
Central National Bank and Trust Co........ 18
Central Sta-tes Mutual Insurance A ssn ... 85
Cerro Gordo County Banks.......................... 77
Chase National B ank..................................... 14
Chemical Bank and Trust Company. . . . 52
Chicago, Milwaukee, St. Paul and Pacific 78
City National Bank and Trust Company
— Chicago ........................................................ 76
City National Bank and Trust Company
— Kansas C i t y ................................................62
Commerce Trust Company.............................80
Continental Bank and Trust Company.. 81
Continental-Illinois National Bank and
Trust Company............................................... 4
Continental National Bank— Lincoln . . . . 65
Council Bluffs Banks....................................... 73

1)
Davenport, P. E. and Company..............64-71
DeLuxe Check Printers, Inc..........................50
Des Moines Building, Loan and Savings
A sso cia tio n ...................................................... 85
Distributors Group, Inc.................................. 40
Doane Agricultural Service........................ 74
Downey, C. L ., Company.................................79
Drovers National B ank...................................75

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

Philadelphia National B ank....................... 9
Public National Bank and Trust Co........33

specialize

automobile

and

writing

fire insur

ance.

Remer, Mitchell & Reitzel, Inc..................42
Royal Bank of'C anada...................................74

Special

S
St. Louis Terminal Warehouse Company 35
St. Paul Terminal Warehouse Company 10
Scarborough and Company............... 45-67-81
Security National Bank— Sioux Ci t y . . . . 71
Square Deal Insurance Company..............47

bank

service

attractive p r o p o s it io n

and
for

banker agents.

★

Tension Envelope Company........................ 82
Thomson and McKinnon.................................41
Todd Company .................................................56
Toy National Bank........................................... 82

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION

U
United Home Bank and Trust Company
-—Mason C i t y ..................................................82
United States National Bank— O m a h a ...58

Mt. Pleasant, Iowa

E. A. HAYES, President

Valley Bank and Trust Company..............69

O. T. WILSON, Secretary

W
Walters, Charles E., Company.................... 65
Welch, Jay A ....................................................... 84
Wessling Services ........................................... 85
Western Mutual Fire Insurance Co........44

% {J e ô ô (in ÿ
C

Established 1929

Plan to use an advertisin g program o f
w ell w orded
m essa g es crea ted
by
W es slin g S erv ices, D e s M o in es, Iow a

S ^ e r u ic e ö
l

o n

B a n k

i o n s

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

2 )eâ

l/ ïjo in e i

9 , J ^ o tva

Following Orders

Huhha, Hubha!

Not Present

Then there was the moron who ran
away while he was making a cake.
The directions said, “Put one egg in,
then beat it.”

“Watchogotna packidge?”
“Sabook.”
“Wassanaimuvitt?”
“ Sadickshunery, fullinaims. Wife’s
gonna gettaplecedog angottagettanaimferim.”

“ I wonder what people wear in
heaven,” mused Mrs. Smith.
“ I guess you’ll want to wear the
most expensive things,” said Mr.
Smith, “just like you do here on
earth!”
“Well, dear, that shouldn’t worry
you! You won’t be there to pay for
’em!”

Harem Squeal
A sultan got sore at his harem
And invented a scheme just to scare
’em:
He caught a small mouse,
Turned it loose in the house.
(The confusion he called haremsearem.)

A Bit Too Much
A woman lay very ill. Having
brought up a clever orphan girl, the
sick woman called the orphan to her
and said: “ I shall soon leave my little
children motherless. They know you
and love you, and after I am gone I
want you and my husband to marry.”
The young woman, bursting into
tears, said, “We were just talking
about that!”
The wife recovered.

Coaster Brake and All
It was a fashionable wedding. The
bridegroom had no visible means of
support save his father, who was rich.
When he came to the stage of the serv
ice where he had to repeat:
“With all my worldly goods I thee
endow,” his father said in a whisper
that could be heard all over the
church:
“ Heavens! There goes his bicycle!”

Super Salesmanship
The Judge: “ The lady says you tried
to speak to her at the station.”
Salesman: “ It was a mistake. I was
looking for my friend’s sister, whom
I had never seen before, but who’s
been described to me as a handsome
blond with classic features, fine com
plexion, perfect figure, beautifully
dressed and—”
The Witness: “ I don’t care to prose
cute the gentleman. Any one might
have made the same mistake.”

Full House
He: I’ll bet you wouldn’t marry me.
So she called his bet and raised him
five.
Northwestern

Banker, May ,

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

1946

“By Their Deeds . . .
Some men are known for their
deeds, others for their mortgages.

Almost the Same
Prof.: Young man, didn’t you have
a brother in this class last year?
Student: No, ’twas I. I’m taking
this course over again.
Prof.: My! My! Extraordinary re
semblance!

Some Speed
Lawyer (to gorgeous witness): “An
swer me, Yes or No!”
Witness: “My, you’re sure a fast
worker, aren’t you?”

Take It Easy
“ I fell and hit my head against the
piano.”
“ Didn’t you hurt yourself?”
“No, I hit the soft pedal.”

Empty Victory
It was pouring. Two men who had
quarreled went out in the rain to settle
their differences. They fought until
one got the other on his back and held
him there.
“Will you give up?” he asked, and
the reply was “No.”
After a time the question was re
peated, but again the reply was “No.”
“ Then,” said the other, “will you
get on top for a while and let me get
under? I’m getting soaked.”

Following Directions
Two ants were racing at great speed
across a cracker box.
“Why are we running so fast?”
asked the first ant.
“ Don’t you see—it says Tear along
this dotted line,’ ” replied the second
ant.

Model Bum
One evening a seedy looking beggar
approached James Walker, New York’s
former mayor, and whined:
“ Mister, could you give a fellow the
price of something to eat?”
“You poor man,”
sympathized
Walker. “Come on, I’ll buy you a
drink.”
“ I don’t drink.”
“ How about a cigar?”
“ Look, mister, I’m hungry and be
sides I never in my life smoked.”
“ How would you like me to place $2
for you on a sure-winner horse tomor
row?”
“Maybe I’ve done lots of things
wrong, but I never gamble,” remarked
the tramp. “ Can’t you cut all this talk
and give me a dime for a cup of
coffee?”
“Tell you what, I’ll stake you to a
whole dinner if you let me introduce
you to my wife,” suggested Walker.
“ I’d like to show her what becomes of
a fellow who doesn’t smoke, drink or
gamble.”

How Shocking
“What you need is an electric bath.”
“ Oh, no, Doc, I had a brother drown
that way at Sing Sing.”

Maybe Yes , Maybe No
“What kind of chickens do you like
best, Rastus?”
“Well, white ones is easiest to find;
but black ones is easiest to hide after
you gits ’em.”

Unromantic
“ So you met your wife at a dance,
did you? Gosh, that must have been
romantic.”
“Naw, embarrassing. I thought she
was home taking care of the kids.”

do you think
our margin rules
on real estate

loans need
revision?

Let's review them with

Bankers Trust,

during

recent years, they've

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right

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had wide experience in

real estate loans.

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helping solve basic problems on
m ortgage loans— or in any o f the
other im portant ways in which
an alert Des Moines correspond
ent can give valuable service to
your bank— we welcom e an op
portunity to be helpful.

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

Mem b e r

F e d e r a l D e p o s i t I n s u r a n c e Corp .
M e m b er F e d e r a l R e s e r v e S ys te m

BANKERS T R U ST
C O M PAN Y its? DESM
OINES

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

Can We Help You With
INVESTMENT PROBLEMS?
The total of United States Government securities owned by Iowa Banks
stands near an all-time high.

Prudent management of investment port

folios, therefore, is an increasingly important Bank activity.
A s a large owner of Government bonds, this Bank, through its officers
and directors, is giving continuing study and attention to this subject.
If problems arise in your Bank regarding distribution of maturities, the
relationship of bond holdings to taxes, or other investment questions, a
discussion of such matters with one of our officers m ay be helpful to you.
Your inquiry is invited.

STRONG,

DEPENDABLE

o in e s

CORRESPONDENT

CONNECTION

a t io n a l

& TRUST COMPANY
n b e r F e d e r a l D e p o sit In su ra n ce C o rp o ra tio n

ank