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M AY
194»

How Machines Save
Time and Money for
Banks — Survey— Page

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Federal Reserve Bank of St. Louis

22
EMIL SCHRAM, PRESIDENT NEW YORK STOCK EXCHANGE— Page 15

M ay— and Group Meetings
Again, with the advent of the month of May, bankers
of Iowa are holding their annual Group Meetings.
Officers and directors of this bank join in best wishes
for the success of these yearly conferences.
Merchants National officers look forward also to active
participation in these meetings in Clinton, Oskaloosa,
Perry, Council Bluffs, Estherville, Charles City, Vinton
and Waukon.

THE
MERCHANTS NATIONAL
= = IBANK[= =
O F F I C E R S
JAMES E. HAMILTON, Chairm an Executive
Committee
S. E. COQUILLETTE, Chairm an of the Board
JOHN T. HAMILTON II, President
H. N. B OYSON, V ice President
MARK J. MYERS, V ice President
GEORGE F. MILLER, Vice President and
Trust Officer
M ARVIN R. SELDEN, V ice President
FRED W . SMITH, Vice President

l* * * « s * .
'

J

r

R. W . M AN ATT, V ice President
L. W . BROULIK, Vice President
PETER BAILEY, Cashier
R. D. B RO W N, Assistant Cashier
O. A . KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, A sst. Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W . BRYANT, Assistant Cashier
JAMES E. COQUILLETTE, A ssistant Cashier

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published m onthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class M atter January I, 1895, at the Post Office at Des Moines, Iow a, under A c t o f March 3, 1879.


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Federal Reserve Bank of St. Louis

3

S T IC K IN G TO IT

Perseverance is an attribute of success.
N a t i o n - w i d e re c o g n itio n of La M o n te
Check Paper as the leader in its field
is doubtless due in no small part to the
fact that George La Monte & Son have
m ade one product and only one product
— safety

paper — for more than

three

quarters of a century.

■

mm

1*8

SAFETY PAPER FOR CHECKS

U.S-'V

GEORGE LAMONTE & SON, NUTLEY, NEW JERSEY

CO" “ ,* C‘ vB O O U P tl° ' i

s y i'U > ^ 'v L 1

—

P*"*

TO,,„ll

,p'ä HONORS—--

THOUSMiOjSA Check Paper All Your Own
Thousands of banks and many of the larger corporations
use L a Monte Safety Papers w ith their o w n trade-mark or
design made in the paper itself. Such INDIVIDUALIZED check
paper provides maximum protection against both altera­
tion and counterfeiting — makes identification positive.


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Federal Reserve Bank of St. Louis

N orthw estern

B a n ke r, M a y ,

1948

4

Traditionally
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Among Chase services to correspondent banks are:

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tel lï fegsfesi^I

Issuance of commercial and travelers’ letters of credit

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Information and advice regarding banks’ investments

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iliiiilliiiliil

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Complete facilities for the safekeeping of securities
Collection of checks, drafts and other bank documents

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Transmission of funds abroad and shipment of currency
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Participation in local loans when desired by correspondents
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Information on credit standing of firms and individuals

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The performance of a broad range of incidental services

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THE C H A S E N A T I O N A L B A N K

♦¿¿si | |
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OF THE CITY OF NEW YORK

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Member Federal Deposit Insurance Corporation

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N o r t h w e s t e r n B a n ke r, M a y , 1948

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

I

“

ill ' f e â ■ < /Æ -

THE H O M E OF

CRUSADER FOR FREE INQUIRY

House was started about 1793 by Campbell's father-in-law from lumber grown and whipsawed in the vicinity

T A G E C O A C H and Ohio steam­
boat were the main methods of
transportation a century ago in what is
now W est Virginia; communication
was also slow and uncertain. Neverthe­
less, in spite of these and other obstacles
in 1840 Alexander Campbell founded
Bethany College, dedicated to "develop­
ment of character, education of the
heart, opportunity for free inquiry.”
Now one of the older colleges west of
the Alleghenies, Bethany offers endur­

S

ing evidence of the founder’s achieve­
ments as first president and energetic
builder of its endowment.
The Irish-born Campbell emigrated
to the United States in 1808. Deliver­
ing his first sermon in a grove, he rap­
idly made a reputation as a preacher
and actively identified himself with the
current religious reform movement.
When Campbell married Margaret
Brown in 1811, the bride’s father gave
them his home and farm in Bethany,
West Virginia, in order to
induce the young couple to
remain with him. Thus
Campbell ran the farm in
addition to preaching, es­

Guests Clay, Davis, Garfield and Lee slept on this rope bed


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Federal Reserve Bank of St. Louis

tablished a seminary and
published magazines from
his own press. So extensive
was his printing business
that the Federal Govern­
ment established a post
office for him and made
him postmaster for some
thirty years. His popularity
as a speaker resulted in
numerous journeys both

Campbell often worked till
midnight in this quaint study

here and abroad where he gained ideas
on the subject of education later used
in his own college.
Though 'Campbell’s home was en­
larged by various additions, the oldest
section was built by his father-in-law,
John Brown, about 1793. A skillful
carpenter, Brown constructed so sturdy
a dwelling that even today the floors
are still sound and the door is as solid
as the day it was hung. Now under the
joint control of the Disciples of Christ
Historical Society and Bethany College,
the Campbell home near the campus is
open to visitors the year round.

The Home, through its agents and
brokers, is America’s leading insurance
protector o f American Homes and the
Homes of American Industry.

a THE

HOME ☆

NEW Y O R K
FIRE • AUTOMOBILE • MARINE INSURANCE

6

THE NATIONAL CITY BANK
OF N E W Y O R K
H ead Office

•

55 W A L L STR E E T

•

N ew York

Condensed Statement o f Condition as o f March 31, 1948
Including Domestic and Foreign Branches But Not Including T h e Affiliated City Ba nk Farmers Tr us t Com pany

( In Dollars Only— Cents OmittedJ

ASSETS
Cash and Due from Banks..................................
Gold Abroad or in Transit...................................
United States Government Obligations (Direct
or Fully Guaranteed).......................................
Obligations of Other Federal Agencies...............
State and Municipal Securities...........................
Other Securities....................................................
Loans, Discounts, and Bankers’ Acceptances.. .
Real Estate Loans and Securities.......................
Customers’ Liability for Acceptances................
Stock in Federal Reserve Bank..........................
Ownership of International Banking Corpora­
tion.....................................................................
Bank Premises....................... ..............................
Other Assets..........................................................
Total ......................................................

DIRECTORS

$1,289,461,435
15,551,346

WM. GAGE BRADY. JR.
Chairman of the Board
W. RANDOLPH BURGESS
Chairman of the Executive
Committee

1,846,680,036
22,274,298
248,241,489
77,668 206
1,275,144,519
2,803,644
27,555,294
7,200,000

HOWARD C. SIIEPERD
President

SOSTHENES BEIIN
Chairman and President, Inter­
national Telephone and
Telegraph Corporation
CURTIS E. CALDER
Chairman of the Board, Electric
Bond and Share Company

7,000,000
28,310,012
2,490,341

GUY CARY
Shearman & Sterling & Wright

$4,850,380,620

EDWARD A. DEEDS
Chairman of the Board, The
National Cash Register
Company

LIABILITIES
Deposits.................................................................
(Includes U.S. War Loan Deposit $38,448,698)
Liability on Acceptances and Bills. . $38,867,644
Less: Own Acceptances in Port­
folio.............................................
9,771,078

Total ......................................................

A. P. GIANNINI
Founder-Chairman, Bank
of America National Trust
and Savings Association

29,096,566
9,054,304

Items in Transit with Branches
Reserves for:
Unearned Discount and Other Unearned
Income...........................................................
Interest, Taxes, Other Accrued Expenses, etc.
Dividend............................................................
Capital............................................. $ 77,500,000
Surplus............................................. 162,500,000
Undivided Profits............................ 32,010,807

CLEVELAND E. DODGE
Vice-President, Phelps Dodge
Corporation

$4,507,009,250

JOSEPH P. GRACE, JR.
President, W. R. Grace & Co.
JAMES R. HOBBINS
President, Anaconda Copper
Mining Company

5,212,057
25,672,636
2,325,000

AMORY HOUGHTON
Chairman of the Board,
Corning Glass Works
ROGER MILLIKEN
President, Deering, Milliken &
Co. Incorporated

272,010,807

GERARD SWOPE
Honorary President, General
Electric Company

$4,850,380,620

Figures of Foreign Branches are as of March 25, 1948.

REGINALD B. TAYLOR
Williams ville, New York

$274,726,280 of United States Government Obligations and $2,822,350 of
other assets are deposited to secure $229,907,678 of Public and Trust Deposits
and for other purposes required or permitted by law.

(.M e m b er Federal D eposit Insurance Corporation)

N orthw estern

B a n ke r, M a y ,


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

1948

ROBERT WINTHROP
Robert Winthrop & Co.
X

7

The First National Bank
o f Chicago
Statement of Condition April 12, 1948
ASSETS

Cash and Due from Banks, .

.

.

.

.

.$

490,994,367*05

United States Obligations—Direct and fully Guaranteed,
Unpledged,

.

.

.

.

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

Pledged—To Secure Public Deposits and
9 6 ,7 9 2 ,0 0 0 .0 0

Deposits Subject to Federal Court Order,
To Secure Trust Deposits,

*

.

67,106,514*26

Under Trust Act o f Illinois,

.

•

5 2 4 ,4 8 0 .0 0

Other Bonds and Securities,
Loans and Discounts,

.

.

.

.

.

.

.

Real Estate (Bank Building),

.

Federal Reserve Bank Stock,

.

.

.

.

..

.

.

108,5 4 1 ,9 7 6 .7 3

.

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

.

Customers’ Liability Account of Acceptances,
Interest Earned, not Collected,

.
.

.
.

718,2 7 2 ,7 9 9 .4 2

2 ,7 3 2 ,92 1 .34

.
.

.

3 ,7 5 0 ,00 0 .00
.

2 ,0 3 7 ,63 9 .77

.

5 ,0 1 7 ,0 8 1 .0 9

Other A s s e t s , ..................................................................... ............... 5 4 0 ,8 3 3 .5 7
$ 2 ,0 8 3 ,0 7 9 ,2 7 1 .2 6
L I A B I L I T I E S

Capital Stock,

.

.

.

.

.

.

.

.$

6 0 ,0 0 0 ,0 0 0 .0 0

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

6 5 ,0 0 0 ,0 0 0 .0 0

Other Undivided P r o f i t s , .................................................

8 ,4 7 8 ,23 6 .02

Discount Collected, but not Earned,

1,298,245.27

Dividends Declared, but Unpaid,

.

.

.

.

.

.

.

.

1,200,000.00

Reserve for Taxes, e t c . , .................................................
Liability Account of Acceptances,
Time Deposits,
Demand Deposits,

.

.

.

.

.

.

.

.

.

Deposits of Public Funds,

.
$

.

.

2 ,699,620.11

3 8 1 ,8 9 4 ,7 4 5 .7 4
1,446,480,386.72
106,775,760.82 1,935,150,893.28

Liabilities other than those above stated,


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

.

9,2 5 2 ,25 0 .81

.

.

.

25.77
$ 2 ,0 8 3 ,0 7 9 ,2 7 1 .2 6

MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

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

1948

8

TOUR Bank Has Particular
Collection Needs
The N ew York Trust Company accurately adapts its 24-hour
collection service , with direct sending by high-speed air
and rail transit, to each correspondent bank's actual needs.

Each bank’s business is different.
There is a unique flexibility in

y

every type o f recognized
connections, nation-wide

T
N

he

Y ork T

ew

The New York Trust Company realizes this.
' \ its modern facilities, which include
banking service, with top-ranking
and world-wide.

Commercial Banking
and Loans

rust

Foreign Banking
Executor and Trustee

C

Services

ompany
Investment Review
io o

Broadway

Accounts
Custody Accounts

M a d iso n A v e n u e and 4 0 th S treet
T en R o c k e fe lle r P laza

Member oj Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, M a y , 7948

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Federal Reserve Bank of St. Louis

Corporate Trusteeships
and Agencies

can handle these 7 basic banking jobs
1.

Posting depositors’ accounts

2.

Posting loan and discount records

3.

Posting any type o f mortgage records

4.

Posting trust ledgers

5.

Writing checks and posting related
payroll records

6.

Posting the general ledger

7.

Posting statement of condition


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Federal Reserve Bank of St. Louis

And in just a matter of seconds you can have it working for you on any
one of the seven! For the removable form-bars of this National MultipleDuty Accounting Machine lift off, or snap on — no screws, catches, or
fittings to fuss with.
If your bank is a small one, one machine may handle all seven jobs.
If it is larger, separate machines may be assigned to handle one, or
more, of these specific jobs. The functional flexibility of these National
Multiple-Duty Accounting Machines permits them to handle any shifting
overloads promptly as they occur, and they are kept busy right through
the banking day.
They will prove a great help in any bank — as will any of the many
other National machines and systems designed to save time and money
for you. Have your National representative study your situation, and
work out the best way of meeting it.
Or, write to The National Cash Register
Company, Dayton 9, Ohio. Sale:- and
Service Offices in over 400 cities.

j j
[

Q

m m f

CASH m n U R S • ADDING MACHINÍS
ACCOUNTING MACHINÍS

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

1948

10

D O T HE

FINANCIAL

NEEDS

OF

LOCAL

Public Utilities
OFTEN

B

ank

POSE

UNUSUAL

r e l a t io n s

PROBLEMS?

and investor relations are now

recognized by many local utility operating com ­

panies to be vitally important due to the universal
need for financing extensive construction programs.
Serving the financial needs of such electric and gas
utilities often requires highly specialized banking
service.
T o banks desiring assistance in any phase of this
operation, the Irving offers the facilities of a D epart­
ment devoted exclusively to Public Utility matters.
Directed by an executive who has been active in the top
management of utility companies for more than thirty
years, this Department supplies unusually broad
practical experience in dealing with this industry.

J S T

O M : W A LL M U L L I

.

N EW

V O K K

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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


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

1948

15, A . ¥ .

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

11

C ontinental I llinois
N ational B ank
and T rust C ompany
OF C H IC A G O
Statement of Condition, April 12, 1948

RESOURCES
Cash and Due from Banks............................................................. $

571,430,085.87

United States Government Obligations....................................

1,097,986,763.24

Other Bonds and Securities...............................................................

76,672,068.76

Loans and Discounts............................................................................

426,652,280.91

Stock in Federal Reserve B an k......................................................

4,050,000.00

Customers’ Liability on Acceptances...........................................

778,290.68

Income Accrued but N ot C ollected..............................................

5,910,864.10

Banking H o u se .......................................................................................

10,125,000.00
$2,193,605,353.56

L IA B IL IT IE S
Deposits.......................................................................................................$2,002,333,255.97
Acceptances.............................................................................................
Reserve for Taxes, Interest,

778,290.68

andE xp en ses..............................

8,992,301.38

Reserve for Contingencies................................................................

18,110,837.60

Income Collected but N ot Earned.................................................

533,893.20

Capital S to c k ..........................................................................................

60,000,000.00

Surplus.......................................................................................................

75,000,000.00

Undivided Profits..................................................................................

27,856,774.73
$2,193,605,353.56

U n ited States G o v e r n m e n t o b lig a tion s ca rried at $197,852,083.57 are
p ledged to secure p u b lic and trust d ep osits and fo r oth e r p u rp oses as
required o r p erm itted b y law

Mem ber Federal Deposit insurance Corporation

N orthw estern

B a n ke r, M a y ,

1948

12

A Bank Is K n o w n .. .

. . . by the prompt, dependable attention
it gives to the day-by-day needs of its
correspondent banks.

CENTRAL HANOVER
BANK AND TRUST COMPANY
NEW

YORK

Member Federal Deposit Insurance Corporation

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


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

1948

13

First Wisconsin
National Bank of Milwaukee
CHARTER

NO.

64

S ta te m e n t o f (C ondition a s o f ^ y lp ril 1 2 th , I Ç f 8
d ir e c to r s
W

il l ia m G. B r u m d e r
Vice President

W

il l ia m

M

e r r ill

C h est e r

President-Treasurer,
T. A. Chapman Company
E. J. D

a l t er

G eist

President,
Allis-Chalmers M fg. Co.
Jo s e p h F. H eil

President, The Heil Co.
W

a l t e r V . Jo h n s t o n
Industrialist

W

alter

$156,452,170.03

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

288,460,479.43

Other Bonds and Securities....................................................................

President
President, Koehring Co.
Er n st M

ahler

Executive Vice President,
Kimberly-Clark Corp.
R o b er t E. Pabst
C y r u s L. Ph il ip p

President,
Union Refrigerator Transit Co.
a r o ld

H . Se a m a n

Industrialist
L a w r e n c e F. Se y b o l d

m

600, 000.00

Loans and Discounts.................

92,872,998.76

Accrued Income Receivable. . .

1,446,565.41

Bank Buildings.............................

3,309,324.84

Other Resources...........................

1,089,048.06
$559,426,386.23

L 1A B 1L 1T 1 E S
Capital............................................................................

$10,000,000.00

Surplus...........................................................................

10,000,000.00

Undivided Profits.....................................................

7,343,823.62

Special Reserves (includes amount sufficient
to am ortize U . S. G overn m ent and all
other securities to p a r )....................................

7,927,836.08

Deposits.........................................................................

512,569,800.46

W a r Loan Deposit Account..................................

9,732,442.53

457,235.21
$559,426,386.23

President, W

Executive Vice President

E r w i n C. U ih l e in

President,
Jos. Schlitz Brewing Co.

alter

K asten

Executive V ice President, W

m

. T aylor

Vice Presidents
W

il l ia m

C a r l M . Fl o r a

G . Brum der

Jo h n S. O w e n

Ed w i n B u c h a n a n

Pierre N . H au se r

C h est e r D . R a n e y

G eorge T . C a m p b e l l

W

Jo se p h W . Si m p s o n , Jr .

E d w a r d R. D

Jo se p h U . L a d e m a n

roppers

il l ia m

J. K l u m b

R o y L. St o n e

E d w i n R. O r m s b y

Jo se p h E. U ih l e in

Banker

Cashier, A . G . C asper
Comptroller, C l a r e n c e H . L ic h t f e l d t

Jo se p h E. U i h l e i n . Jr .

President, Glenogle Co.
R o b er t A. U ih l e in

Banker
R o b e r t A. U i h l e i n , Jr .

Jos. Schlitz Brewing Co.
il l ia m

522,302,242.99

Other Liabilities..........................................................

. T aylor

President,
Pal-O-Pak Insulation Co.

35,271,659.70
1,395,248.33

Reserves for Interest, Expenses, Etc.....................

C h a r l e s O. T h o m a s

W

15,195,799.70

Stock in Federal Reserve Bank

Executive Vice President,
Wisconsin Electric Power Co.
W

444,912,649.46

K asten

G eorge E. L o n g

H

Cash and Due from Banks....................................

em psey

Attorney, Oshkosh
W

RESOURCES

D. V

90 per cent of all banks in Wisconsin — the First Wisconsin offers unparalleled
statewide banking service.

ogel

Real Estate and Investments


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Federal Reserve Bank of St. Louis

UNP A R A L L E L E D STATEWI DE S E RVI C E
Through affiliated banks and correspondent bank relationships — embracing over

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

N orthw estern

B a n ke r, M a y ,

7948

14

FIELD WAREHOUSING
This company’s long-, practical service in field ware­
housing is your assurance that our warehouse receipts
are dependable collateral for inventory loans. W e invite
you to consult with our experienced, responsible representatives and learn the complete service we give.

THINK OF

St. Paul Terminal Warehouse Co.
ST. PAUL, MINNESOTA
Iowa Office
515 Iowa-Des Moines National Bank Building
Des Moines
Telephone 2-1208

Other Offices:
Minneapolis
Milwaukee
Chicago
Detroit
New York
Boston
Buffalo
Indianapolis
Philadelphia
Pittsburgh
Syracuse
Dallas
Memphis
Atlanta
Albany, Ga.
Charlotte
Jacksonville
Shreveport
N orthw estern

B a n ke r, M a y ,


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Federal Reserve Bank of St. Louis

Ï 9 48

15

It ear Editor

DES MOINES
O ldest Financial Journal West of the Mississippi

The following letters are from
Northwestern Banker readers. Your
views and opinions on any subject
are welcome in this column.

•

53rd Year

•

No. 730

IN THIS M AY, 1948, ISSUE
EDITORIALS
Across the Desk from the Publisher........................................................ 16

FEATURE ARTICLES
"Swell Job"
“ You did a swell
Cincinnati meeting of
Relations Association
w e s t e r n B a n k e r and
thanks a million.”

job in covering our
the Financial Public
in the April N o r t h ­
I just wanted to say

Preston E. Seed, Executive
Vice President, Financial
Public Relations Association,
Chicago, III.

"Exceptionally Good"
“ My

congratulations upon the
for February and
I was very much pleased with the picture
of George W ashington.
I notice that you
make this one of your features of the m aga­
zine. I believe, if I am not mistaken, that
you have some outstanding portrait of some
outstanding individual carried in the maga­
zine each month, and I imagine this is a
very popular feature. It adds color to the
magazine and brightens up, so to speak, the
entire magazine. I wonder what has been
N

sincere

o rthw estern

B anker

(Turn to page 43, please)

ON THE COVER
Emil Schram, president of the New
York Stock Exchange, is pictured on
our cover as he was eating lunch last
month during the third day of the
financial workers’ strike. While near­
ly 300 pickets plodded along outside
in the rain, Mr. Schram and the rest
of the workers inside the building
were keeping the exchange in opera­
tion.
Mr. Schram is a native of Peru,
Indiana, having been born there No­
vember 23, 1893. He worked in Peru
five years after high school, then from
1915 to 1933 was a business executive
in Hillview, Illinois. In 1933 he joined
the RFC, winding up as chairman of
the board from 1939 to 1941. In July,
1941, he became president of the New
York Stock Exchange. He is also a
director of the Export-Import Bank of
Washington.

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Federal Reserve Bank of St. Louis

Dear Editor ............................................................................................
Frontispage ............................. -...................................................................
How to Increase Service Charges Yet Keep Your Customers
H a p p y ................................................................... Osmond T. Jamerson
How Machines Save Time and Money for Banks—
A N o r t h w e s t e r n B a n k e r Survey.................................................. 22,
News and Views of the Banking W orld................. ... Clifford De Puy
Bankers You Know— George W. Holmes....... ........................................
Selling Savings Bonds a Part o f Debt Management..............................
........ ..................................................................... Morris M. Townsend
Did I Do My Best?.............................................................. Lloyd L. Coon
Does Cancellation of a Purchase Void the Broker’s Commission?—
Legal .... .....................................................................................................
Nebraska Group Meeting Story and Pictures........ .........................32,

15
18
21
23
24
25
26
28
30
33

BONDS AND INVESTMENTS
The Prudent Bond Buyer Should Plan for the Near Term...............
............ ............................. .......................................... Raymond Trigger 39

INSURANCE
Life Insurance Is In a Favorable Position....... Donald B. Woodward 45

STATE BANKING NEWS
Minnesota News .................. ........................................................................ 49
South Dakota News.............. .............................. -...................................... 55
Sioux Falls News.................................................................................. 55
North Dakota News...................................................................................... 57
Nebraska News ..... ........................................................................... .....—. 59
Omaha News .......... ............................. ...................................-.........- 61
My Opinion .....................................................
Iowa News __________ _____ ___ ___ ______ ___ __ ____ __ __________ - 67
Clinton Becomes Big Business (Group 8 M eeting)____ _______ 70
Group 10 Program atOskaloosa...................................................
71
Perry— Proud and Progressive (Group 6 M eeting)..................... 73
Group 5 Meets at Council Bluffs.. ................................................... 74
Estherville Is Big Trade Center (Group 2 M eeting)................... 77
Charles City Typifies Iowa (Group 3 M eeting)....................... .
79
Industry in Vinton Is Varied (Group 7 M eeting)....................... 81
Group 4 Program in Waukon............................................................ 82
Des Moines News.... .............................................................................. 83
Coin Collectors’ Column ...................................................................
85
Conventions .... .......................... ................................................... ........ 85

IN THE DIRECTORS' ROOM
A Few Short Stories to Make You Laugh ........................
N O RTH W ESTERN

.......... 86

BANKER

527 Seventh S t., Des Moines 9, Iow a, Telephone 4-8163
CLIFFO RD DE PUY
Publisher

RALPH W. MOORHEAD
Associate Publisher

HENRY H. H AYN ES
Editor

BEN J. H ALLER, JR.
Associate Editor

MALCOLM K. FREELAND
Associate Editor

ELIZABETH CO LE

HAZEL C. HADLEY

SADIE E. W AY

N E W yORK OFFICE
Frank P. S ym s, V ice P re sid e n t, 505 Fifth A v e . , Suite 1806

DE PUY PUBLICATIONS:

Northwestern

Banker,

M LIrray H ill 2-0326

Underwriters

Review,

Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.

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

1948

ir;

Across the Desk
From the Publisher
(D&W i JJw m aA i l (p ah km & M i:
President, the Equitable Life Assurance Society of the

Is the United States on a sound money basis?
Will an increase in our national debt by the
sale of more “ U. S. Security Bonds” prove a wise
move ?
Is being “ off” the gold standard a help or a
hindrance to our fiscal policies?
Will the “ next administration” help to solve
these problems which have been created by the
“ borrow and spend” theorists of the New Deal
era ?
^ ou have partially answered some of these
questions, Mr. Parkinson, in your very interest­
ing discussion of “ Sound Money Is Good Politics. ”
In your remarks, you said “ Never since 1896
when Free Silver was the issue has the question
of money and the soundness of our currency been
so important in a Presidential Campaign as it
will be this year. And this time it will not be the
bankers but the average man who, if he has any
regard for his own interests, will be on the side
of sound money. It is the average man who is
in for the licking if unsound money policies
prevail.
“ It is interesting to note that even in 1932
the Democratic Platform declared, ‘ We advocate
a sound currency to be preserved at all hazards,’
and the Republicans paralleled that statement to
N o r t h w e s t e r n B a n k e r, M a y ,


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Federal Reserve Bank of St. Louis

1948

the effect that they would ‘ continue to uphold the
gold standard and will oppose any measure which
will undermine the Government’s credit or im­
pair the integrity of our national currency.’
These were fine generalities. They were followed
quickly with devaluation of the dollar, confisca­
tion of all gold and abandonment of conversion
of paper money into gold. At that time the
President declared that our paper currency would
be managed so that its stability for a generation
would be assured. Perhaps it is significant that
there was no money plank in the Democratic Plat­
form of 1940 or of 1944.
“ The time has come when it will not be the
bankers or wealthy interests who will be demand­
ing- sound money but the average man. Even
the most extreme Liberal or Leftist Administra­
tion could not satisfy the people of this country
in the years to come unless it provided a sound
currency. It is up to someone to devise and put
into execution ways and means of accomplishing
that result.”
Tf we continue to have increased borrowing by
the government which simply means the increased
sale of bonds, we are bound to have a continued
inflationary aspect in our financial picture, al­
though the theory of selling the new U. S. Se­
curity Bonds is to absorb the extra money which
people would otherwise use for bidding up prices.
We all know that even before World War II
the administration had gone on a “ borrow and
spend” spree which was greatly increased when
we did have to borrow for war purposes.
Certainly a strong and steady hand is needed
at the political wheel in Washington to help guide
ns fbrough the period which lies immediately
ahead.
The United States is still the greatest and most
powerful nation on earth, but if it is to remain
so, its financial structure must be built on a
sound foundation.

(bsucUi (p a id (Rjobsi&xm:
Singer— A ctor— Communist Sympathizer

For many years, we were one of your great ad­
mirers. We admired your singing ability, your
acting ability and your fine intellectual back­
ground.
Since you have been “ singing the praises” of
the socialistic and communistic forms of govern­
ment, we can no longer follow your reasoning
nor understand your point of view.
In a recent speech you said, “ I don’t want my
boy, who is growing into a fine American, to die
for the directors of Standard Oil in Arabia. The
advancement of the common man has come in
different ways. In England socialism came into
being. In Scandinavian countries they did it by

17
co-operatives. Other countries did it by enlarged
socialism— or communism. There are many ways
to achieve full freedom.”

Do you think for one minute, Mr. Robeson, that
“ the achievement of full freedom” has come un­
der communism?
Do you still think that the 16 to 20 million Rus­
sians in their own concentration camps are en­
joying “ full freedom” ?
Do you think any one of the dozen countries
which Russia has recently taken under her dic­
tatorship are enjoying “ full freedom” ?
As far as your boy dying for directors of Stand­
ard Oil in Arabia, that simply sounds like the
blabberings of a demagogue, and not the intelli­
gent reasoning of your Phi Beta Kappa mind.
As far as oil in Arabia is concerned, would you
prefer to have the Russians get it and put it in
their airplanes and their submarines for use in
destroying the United States which is still the
only country in the world which has achieved
“ full freedom.”
By the way, Mr. Robeson, if Russia is such a
wonderful country, why not continue your per­
manent residence there?
You lived in Russia on a collective farm in
1934, and in 1936 you put your 9 year old boy in
school in the communist controlled country about
which you said after returning to Moscow from
London, “ It is good to breathe the free air here
in Russia.”

So we say to you and all like you “ get out”
and stay out of the United States instead of try­
ing to undermine it with your communistic third
party.
Be gone.

O&jcUi Jismhy G. (tfallaxx:
Presidential Candidate Third Party

If we “ took time out” to answer all the mis­
statements which you have made in your recent
political speeches as candidate for president on
the Third Party ticket, we wouldn’t have time
for anything else.
However, we were a little more than surprised
as well as amused when in a speech you made be­
fore the “ Steel Workers for Wallace Club” of
CTO United Steel Workers at Gary, Indiana, you
said that, ‘ ‘ the steel industry is making' a fabulous
profit but the workers employed by the U. S.
Steel do not share in this prosperity. ’ ’

It just happened that the very day you made
this speech, Irving S. Olds, Chairman of the Board
of Directors of the United Steel Corporation, had
mailed the Northwestern B anker a copy of their
annual report, so we took the opportunity to

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Federal Reserve Bank of St. Louis

look it through and see if what you were saying
was true.
The Northwestern Banker holds no brief for
the U. S. Steel Corporation, because it can prob­
ably take care of itself, but we are “ fed u p”
with misstatements of facts by politicians and
“ others.”

If you will read this report yourself, Henry,
you will notice how the U. S. Steel sales dollar
was divided and here are the figures:
1.
2.
3.
4.
5.
6.

Wages and Salaries
42.6%
Services and Products Bought 39.6%
Taxes for Government
6.4%
Wear and Exhaustion
5.4%
Dividends for Owners
3.3%
Reinvested in business
2.7%

The Northwestern Banker is just as anxious
as anyone that all employes shall make as much
money as they possibly can, but as this report
shows, wages and salaries amounted to 42.6 per
cent of the sales dollar and dividends amounted
to 3.3 per cent, so we hardly think the workers
are being treated unfairly. But keep right on
giving “ industry hell” because that is considered
“ good politics,” but remember that whenever we
need planes, tanks and equipment for our na­
tional defense, it will be the industrial genius
and organization of America that will be called
on to help us just as they did before.

CDsucUi W illiam $ay& Shady, Qh.:
President National City Bank, New York

When you became president recently of your
5 billion 200 million dollar National City Bank,
we were interested in your “ philosophy of bank­
ing” when you said “ What we want is to build
a bank on service. We keep our organization
simple. We are interested first of all in how
strong we are and how good we are, and only
secondarily in how big we are.”

We think, Mr. Brady, that this same “ plat­
form ” would be good for every bank in the United
States to follow whether large or small.
As the Northwestern Banker has emphasized
many times, a bank does not sell a “ commodity”
—it does not sell a “ package of goods” which
you can wrap up with a label on it, but it pri­
marily sells service, and therefore it is more im­
portant for banks than perhaps for any other
group of institutions to give the very best service
they can, and as you say, “ keep strong” and
only secondarily be interested in “ how big you
are. ’ ’

18

I f you would lik e ex tia co p ies o f this p ictu re w e w ill be glad to sen d them to you w ith our com p lim en ts.— The N orth w estern B anker.

N orth w estern

B a n ke r, M a y ,


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

1948

19

C e n tra l
National Bank and Trust Company
Fifth and Locust Street — Des Moines

STATEMENT OF CONDITION AT CLOSE OF BUSINESS APRIL 12, 1948

ASSETS
Cash and due from
Federal Reserve and
other banks ............$24,440,469.07
United States Govern­
mental Securities.... 19,857,681.02
Obligations of United
States Governmental
Agencies ................. 2,263,949.45 $46,562,099.54
Municipal Securities ..........................

7,588,322.01

Market Bonds .....................................

1,123,926.39

Other Investments ..............................

260,001.00

Loans & Discounts.............................. 27,345,867.00

D I R E C T O R S

G. E. BRAM M ER
Brammer, Brody, Charlton, Parker
& Roberts
E. F. B U C KLEY
President

Overdrafts ...........................................

3,636.07

Stock Federal Reserve Bank............

75,000.00

Accrued Interest Receivable.............

226,537.03

H A R R Y GOLDM AN
President, C. C. Taft Co.

Bank Premises and Equipment........

574,453.99

W M. J. G O O D W IN
Chairman, Board of Directors

TOTAL..................................... $83,759,843.03

H. F. GROSS
Chairman, Iowa Mutual
Tornado Insurance Assn.

Common Stock .......... $ 1,250,000.00

B. REES JONES
President, Town Mutual Dwelling
Insurance Company

1,250,000.00

Undivided Profits.......

864,114.87

Other Reserves..........

986,137.07

RO B E R T K. G O O D W IN
President, Redfield Brick & Tile Co.
W. J. G O O D W IN , JR.
President, Des Moines Clay Co.

LIABI LITIES

Surplus ........................

A. T. D O N H O W E
Vice-President

$4,350,251.94

Reserves for Taxes, Interest

EDW . A. K IM B A L L
Exec. Vice-President
Iowa Manufacturers Assn.
GUY E. LOGAN

and Other Expense..........................

161,307.02

W A L T E R E. M U IR
President, Window Devices, Inc.

Discount Collected ..............................

188,532.35

GEORGE A. PEAK
Real Estate

Deposits ............................................... 79,059,751.72


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Federal Reserve Bank of St. Louis

TOTAL..................................... $83,759,843.03

U . S . G o v e rn m e n t a n d o th er se c u ritie s c a r rie d
a t $ 8 ,7 5 4 ,5 5 7 .2 8 a r e p le d g e d to se cu re U . S .
W a r L o a n D e p o sit a c c o u n t, P u b lic F u n d s, a n d
Tru st D e p a rtm e n t Fu n d s.

JU L IA N A. P E V E R IL L
President, Hudson Jones Auto Co.
W A L T E R L. STEW A R T
Gibson, Stewart & Garrett
FR A N K R. W AR D E N
Vice-President

M em b e r F e d e ra l D ep o sit
In s u ra n c e C o rp o ra tio n

N orthw estern

B a n ke r,

May,

1948

Those who are waiting for Allen-W ales adding
m achines have the assurance of obtain in g
the sam e fin e standards of A C C U R A C Y ,
SPEED and D E P E N D A B IL IT Y for w h ich
A lien -W ales has always been distinguished.

ALLEN W WALES
ALLEN-WALES ADDING MACHINE DIVISION
OF
THE NATIONAL CASH REGISTER COMPANY

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Federal Reserve Bank of St. Louis

4 44
NEW

MADISON
YORK

AVENUE
22,

N.

Y.

21

If off*

t o

Êur reuse

Y et K eep Your

t'uHupp y

Six Guideposts for Your Banks'
Public Relations Program When Raising Rates
HE proper public relations ap­
proach is only one of the factors
to be considered in any plan to
inaugurate or increase service charges.
Of equal importance is the adoption
of a charge that will be fair and under­
standable to customers. It is obvious
that, no matter how excellent your
publicity, it will be difficult to make a
sale unless the product itself is at­
tractive.
Hence, before attempting to plan
any publicity program, it would seem
wise to devote considerable attention
to the product itself. What kind of
a service charge do you propose to
introduce? Probably no subject is
more fraught with confusion than that
of the proper type of service charge.
It seems clear that, to be equitable
to all. a charge for checking account
service should amount to no more than
the difference between the cost of th"
service rendered and the amount
which a bank can earn on the in vestable portion of the money which the
users of its services leave on deposit.
Having settled upon a plan which
is believed to be fair and readily un­
derstandable, the next problem is how
to present it to the public in the most
logical and palatable way. The ap­
proach which says, in effect, “here is
the new schedule—take it or leave it”
is not successful. Sometimes a bank
may get by without much obvious
public protest, but too many people
invariably remember and resent this
technique as arbitrary and dictatorial.
On the other hand, an elaborate treat­
ment consisting of three or four in­
volved and lengthy mailings seems to
he relatively ineffectual.
It would appear that too much pub­
licity can be just as bad as too little
and. in this'connection, I would strong­
ly advise against the use of newspaper
display ads and, particularly, those
put out over the signature of local
clearing houses.
The objection to individual newspa­
per ads is that they call the attention
of many people who would not other­
wise be concerned to the rise in rates.
Publicity should be directed only to­
ward these concerned. If vour charges
are reasonable and understandable,
your customers will readily go along
and you can get to them very easily

T


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Federal Reserve Bank of St. Louis

by direct mailings. When you adver­
tise in the newspapers you merely ask
for trouble because, first, it is almost
impossible to tell the whole story in
the limited copy of a good ad and, sec­
ondly, you stir up a lot of people who
are not concerned and, particularly,
non-customers who, for some peculiar
reason, generally are more vociferous­
ly critical than customers.
Barring special local c o nd i t i o ns
which make other steps necessary, the
general opinion appears to be that the

OSM OND T. JAM ERSON
“ Use plain, human interest terms”

best course to pursue in increasing
service charges is something along the
folowing lines:
1. About two months before the
change is to be made, send depositors
a statement enclosure in the form of
a folder which skillfully sells the
value of a checking account.
2. The following month mail a state­
ment enclosure which outlines the
new schedule and explains, briefly and
forcefully, the conditions which make
the change necessary. If there are
any beneficial or compensating factors
to make the pill more palatable, they
should, of course, be included in this
mailing. For example, point out how
little the costs of bank services have
risen as compared to the costs of ev­
erything else. Either a folder or a
letter may be used for this mailing.

By OSMOND T. JAMERSON
Vice President, National Bank of
Commerce, Norfolk, Virginia
3.
The next month the service
charge should be applied and a simple
explanatory slip should be enclosed
with each monthly statement which
sets forth exactly what the charges
are and how they are applied so that
no one will be confused.
In summary the following points
seem to be the main ones to observe:
1. The service c h a r g e schedule
should be made as simple and fair as
possible. Always aim for simplicity
in your plan—it will save you consid­
erable operating expense and selling
cost. Generally speaking, the public
doesn’t mind paying when the prin­
ciples are plain and understandable—
but it will kick like a Mississippi mule
when it is baffled, no matter how pre­
cise and accurate the plan. By and
large, the simplified formula plans
mentioned earlier meet every basic
requirement. They are fair—and they
are easily understood.
2. The bank should make up its
mind to impose a set of charges which
will be adequate for several years to
come. The public reacts most unfa­
vorably as a rule when banks come
back every two or three years for
another bite.
3. Over-explanation and over-justifi­
cation are just as bad as the arro­
gance of no explanation at all.
4. Avoid the use of newspaper pub­
licity.
5. School all officers and employes,
not just a few selected individuals, to
answer logically a n d convincingly
questions which customers may put
to them. Nothing irritates a customer
more than to be told “ I don’t know—
you’ll have to see Mr. Smith.” Fur­
thermore, Mr. Smith will be a wreck
after a few days if you throw the en­
tire burden on him.
6. Make your publicity folders as
novel and attractive as possible. Use
colors and tell your storv in plain
human interest terms. When letters
are used, make them chatty and frank.
Public understanding is the most im­
portant tool to use in putting across
service charges successfully. — The
End.
N o r t h w e s t e r n B a n ke r, M a y ,

1943

M ach ines S a w Tim e
and $ionet§ /'or Hanks
Users of Modern Equipment Tell How They Have
Speeded Up Clerical Operations and Reduced Overhead
A NORTHWESTERN BANKER
SURVEY
NE of the main problems con­
fronting bankers everywhere
today is cutting internal oper­
ating costs. Through a survey made
recently among Middle West banks of
average size, outside metropolitan
areas, the N o r t h w e s t e r n B a n k e r has
found that banks which have installed
improved mechanized banking and
bookkeeping methods since the end of
the war are now discovering that their
operating expenses are showing a de­
cline, overtime costs are being cut,
faster, more efficient service is being
given to customers, and bank em­
ployes are a more contented group.

which will show how modernized
banks are cutting operating costs.
The initial installment of this sur­
vey appears on these pages. If you
have equipment in your bank which
has proved its time, money and laborsaving values, we invite you to write
the N o r t h w e s t e r n B a n k e r , giving de­
tails of operation and the savings to
you, so that other bankers may bene­
fit ffom your experience. The first
replies are as follows:

The N o r t h w e s t e r n B a n k e r realizes
that many bankers who are contem­
plating the installation of newer equip­
ment would like to have the expe­
rience of those banks which have
made this forward step. Since it is
rather difficult for bankers to inter­
view all those throughout the Middle
West who are operating highly mech­
anized b a n k s , the N o r t h w e s t e r n
B a n k e r is presenting a survey on this
subject in several installments, to give
information to officers and directors

“ Our volume of checks and deposits
requires three Burroughs posting ma­
chine operators the greater part of a
day, after which all checks and depos­
its must be filed under each customer’s
file until statement day. Our machines
are the latest models with analysis
features to count and total the items
posted.
“ Our latest installation is the Central
Control and Proof machine, which is
highly appreciated, as it does away
with many a headache. Separate list­

O


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

L. J. TITUS
President, First N ational Bank
(Population 4,500— Deposits $7,329,000)
H oldrege, N ebraska

ings are made of checks on this bank,
remittance or out-of-town items, cream
checks, money orders, general debits
and credits, as well as all the deposit
slips for the day, and totals taken at
the end of the day. In from 10 to 15
minutes after the bank is closed the
last-minute transactions have passed
through the machine, totals taken and
each teller is handed the figures show­
ing the actual cash each cage must
have at the end of the day.
“As to cutting the cost of our oper­
ations, our overtime, which was run­
ning an average of $200 a month and
some months as high as $300. is now
never over $50. We are able to get
the employes out of the bank usually
an hour after we close and have saved
at least one employe whom we used
continually for typing remittance. We
think the biggest time-saver, as far
as our new equipment is concerned, is
the Proof Machine.”

J. M. PATTON
President, M itchell N ational Bank
(Population 10,000— Deposits $9,500,000)
M itchell, South Dakota

“While we do have a large number
of machine operations and some of the
latest machinery available, yet we are
still a long ways from the ultimate
goal we hope to reach. Equipment
has been scarce since the war years
and now that it is available it is quite
expensive and, of course, there is only
so much that can be allowed each year
for equipment.
“At the present time we have a Na­
tional Cash Register proof machine,
through which all deposits, mail items
and items cashed in the windows are
run. As a result of this operation we
obtain lists for our princinal corre­
spondents. We attach these lists to
a simple cash letter heading. Through

BANK MACHINES — In banks
throughout the world figuring and
accounting work is constantly be­
coming more mechanized. The Bur­
roughs posting machines shown at
the left represent a type that is
being installed by an ever increasing
number of banks.

the use of Recordak we eliminate all
descriptions.
“Our bookkeeping department con­
sists of two Burroughs front side and
two National posting machines. The
National machines have been in oper­
ation approximately six months. We
are very much pleased with them.
“With the Recordak we have a com­
plete picture of all our transit items,
all checks drawn against individual
accounts and photographs of all depos­
its. We use the Recordak single post­
ing system, whereby our statement
becomes the ledger and at the end of
the month it is photographed, the pho­
tograph being retained as our ledger
sheet. I believe we are about the only
bank in South Dakota who returns to
the customer his checks and deposits
with the monthly statement. We are
very much satisfied and pleased with
this operation.
“ In addition to this equipment, we
have individual small type electric
Burroughs adding machines in all the
windows.
“ Since we have some 3,300 accounts,
we have installed a Class 1900 Addressograph, which we use to head up
the statements and envelopes in the
bookkeeping department, to make in­
stallment loan coupons in the install­
ment loan department and to print the
safety box notices and receipts. Be­
cause of the number of changes that
we have during the month, we have
a graphotype so we can make the
plates here in our own bank.
“To make a specific answer to your
question, ‘How much and to what ex­
tent have you been able to cut your
operating costs?’ is indeed difficult to
answer, but in comparisons that we
have made with other banks, and the
number of employes, and the total
amount of deposits, we believe that
we are doing very well. We have 19
employes, which includes a part-time
janitor. Many banks our size, and
smaller, have more employes than
that. We also believe that machine
operations can do the job better, and
if you have the proper type of equip­
ment, you have a more contented
group of employes.”

HOWARD BURDICK
C a sh ie r, C e n tra l N ational Bank
(Population 8,500— Deposits $10,543,000)
Columbus, N ebraska

“We have found that the combina­
tion bookkeeping machine with type­
writer has effected great savings for
us. We use this machine to post our
general ledger, savings accounts, time
certificates of deposit, and our note
ledger. The big saving for us has
come from the note ledger posting, for
in one operation we post the note ledg­
er, the loan journal, and note notice,
with the use of carbons. We then

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Federal Reserve Bank of St. Louis

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;

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:

SA VIN G S OF $150 to $250 a month for the First National
B ank of H oldrege, Nebraska, have resulted from the use of
mechanized bookkeeping methods, according to L. J. Titus,
president. One reason is the National Cash Register Central
Control and Proof machine shown above in operation at the
F irst National Bank.

file the note notices by maturity dates
and use them as a maturity tickler.
Thus, in one operation, we do what
formerly required three operations,
since formerly we had to post the note
ledger, then post the notes in a bound
journal by pen and ink method, and
prior to the maturity of the loan we
had to post the loans in a maturity
tickler and make out the note notices.
This machine has paid for itself sev­
eral times over in labor saved, in the
handling of our loan records alone.
“We like the Ediphone. It saves the
time of a stenographer taking short­
hand notes, and eliminates the neces­
sity of calling a stenographer to an
officer’s desk perhaps several times a
day. While the subject is fresh in
our minds, we dictate it to the ma­
chine, and the operator types the let­
ters from the machine in an orderly
fashion so they are ready before the

end of the day. It is also useful for
after-hour work when an officer may
dictate to it in late afternoons or eve­
nings, when no stenographer would
be available.
“Very recently we purchased an
electric check perforator. It looks like
a good solid machine which should
last a long time, and if it does not pay
for itself in time saved over the old
hand-operated perforator we had, it
will at least nay for itself through in­
creased satisfaction derived from it
by the bookkeepers. By amortizing
out the cost over a period of from ten
to twenty years, it will cost us very
little.
“We are quite proud of our recent
Addressograph installation. We pur­
chased the Graphotype with it, and
make our own plates. We have pre­
pared a plate for each checking ac(Turn to page 54, please)
N o rthw estern

B a n ke r, M a y ,

1948

24

News

und Views
OF THE BANKING WORLD
By C L IF F O R D

ILLIS B, CONNER, JR., assist­

W

ant vice president of the Mer­
chants National Bank and the
Indiana Trust Company of Indianap­
olis, Indiana, has prepared a report on

“What State Bankers Associations are
Doing in Public Relations,” and this

has been issued by the Financial Pub­
lic Relations Association, 231 South
La Salle Street, Chicago.
Any banker who is interested, and
everyone should be, in creating better
public relations for his own hank, can
find out what other hanks and other
associations are doing in this regard
by writing for a copy of this report.
Ernest G. Shinner, president and
chairman of the board of the South
Shore National Bank of Chicago an­
nounces the election of John F. Keeley
to the office of executive vice presi­
dent. Mr. Keeley presently occupies
the position of vice president of the
Lake Shore National Bank of Chicago
with which institution he has been
identified for the past 21 years.
He is widely known in banking
circles in the middle west having
served as a member of the executive
committee of the Installment Lending
Division, Illinois Bankers Association
since its organization three years ago.
He is also former chairman of the Con­
sumer Credit Committee, Chicago Dis­
trict, Illinois Bankers Association.
Joseph M. Dodge, president of the
American Bankers Association, be­
lieves that “ Some way must be found,
short of forced saving, to slow down
the spending which is forcing up
prices and reducing the rate of savings
accumulations of the people.”
Total bank deposits in the nation’s
banks have increased nearly 5 billion
dollars in the past year, Polk’s Bank­
ers Encyclopedia revealed in its 107th
edition. Total deposits were $163,917,229,918 as of December 31, 1947, as
compared with $158,156,498,000 as of
December 31, 1946.
Reporting on the condition of the
nation’s 14,834 banks and their 4,375
branches, the March, 1948 issue of the
Bank Directory shows that chartered
banks have a total capital account of
$12,471,638,238, as compared with $11,698,081,000 for the comparable period
a year ago. Total resources of banks
are $177,450,146,262, as compared with
$170,933,862,000 for 1946. The figures
N orth w estern

B a n ke r, M a y ,


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Federal Reserve Bank of St. Louis

1948

DE P U Y , P u b lish er

reflect a better ratio of capital accounts
to deposits, the ratio today being 1
to 13.2, as compared with 1 to 13.5 in
1946, and 1 to 15 in 1945.
Within the past year 150 banks were
closed as a result of mergers, liquida­
tions, reorganizations or changes in
title, while 160 new banks were
opened.
Richard W . Trefz, president of the
Beatrice State Bank of Beatrice, Ne­
braska, spoke before the Florida Bank­
ers Association last month, about the
cost of doing business and the fact
that financial institutions have not
been informing the public of the cost
of operations.
Mr. Trefz puts it this way, “One

While the dollar volume of residen­
tial contracts was maintained at a
level equal to the first quarter of last
year, nonresidential contracts were up
42 per cent and heavy engineering
awards increased 46 per cent over the
comparable period of 1947.
The Home Loan Bank Board has
issued a report showing that the re­
sources of all the savings and loan
associations in the country at the end
of 1947 amounted to over $11,800,000.-

000.
The association’s mortgage holdings
now amount to 9 billion dollars and
was due largely to increased lending
volume for construction and other pur­
poses.

thing we country bankers should do
is to ascertain our cost of doing busi­
ness. I am amazed when I contem­
plate the volume of business we do
without knowing our costs. At times
Î feel embarrassed when I think how
we consistently tell our patrons, even
our farmers, that they must learn
their costs, and then we sit back and
hope to have something left at the
end of the year for our efforts, and
if we don't, we cannot see why it
should be that way.”

Henry H. Byers, president of the
Bankers Service Company of Des
Moines has issued volume No. 1 of his
“Bank Stock News,” which gives in­
formation about the buying and sell­
ing of bank stocks throughout the
middlewest.
On the front page of the publication
the policy of the company is stated as
follows:
1. “ To offer sound, practical advice
and counsel, without charge, to those
who contemplate the sale or purchase
F.
W. Dodge Corporation reports of a bank.
that a new first-quarter high mark in
2. “To treat as confidential all infor­
dollar volume of construction con­ mation so received and insist that
tracts has been set in the 37 states others do likewise.”
east of the Rocky Mountains with a
total of $1,986,936,000. This volume
Personal incomes reached a record
surpasses by 23 per cent the previous
total of 197 billion dollars in 1947. This
first-quarter record established last
topped 1946, the previous record, by
year.
20 billion dollars.
Personal incomes include: wage and
salary receipts, which accounted for
$120,700,000,000 of the 1947 total, plus
net incomes of business owners and
partnerships, dividends and interests,
net rents received by landlords, veter­
ans benefits and relief payments.
W. R. K. Mitchell, president of the
Provident Trust Company, in discuss­

BUY BONDS TODAY!

ing the Federal Reserve System and
its relation to the purchase of Gov­
ernment bonds, said: “ It appears clear
that the Open Market Committee has
ample powers over interest rates and
the real question is not what they can
do in this respect, but what they are
likely to do from time to time in in­
telligently using these powers for
(Turn to page 56, please)

25

tianiiors 1 ou K noir

G eorge
fl7» H ohnes
President, Pirst National Bank
Lincoln, Nebraska
“ Customers will be thankful for sound credit advice’ ’
I T H George V . H olm es, presi­
dent o f the First N ational Bank
of Lincoln, Nebraska, business is a
pleasure. H is unusual interest in vis­
iting and dealing with people, his
natural business ability and keen in­
tellect have given h im a most versatile
life. A n d bis activities have not been
confined solely to the operation o f the
First National Bank where he has
been president since 1927.

W

M r. H olm es’ varied business, civic,
social and educational activities, are
evidence enough of the pleasure he
derives from contact with other peo­
ple. These projects range from a life­
long interest in w ildlife to operating
the largest bank in the Cornhusker
state’s capital city. Deposits of the
First National Bank of Lincoln are
over $48,600,000, which makes it the
largest bank in Nebraska outside of
Om aha.
Banks o f all sizes must solve m any
com m on problem s, and chief among
these, M r. H olm es believes, “ is m aking
sound loans at reasonable rates of in­
terest. Losses which banks m ay face


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Federal Reserve Bank of St. Louis

in the future,’ lie continues, “ will be
the accum ulation of today’s opera­
tions. There will be a future when
every ban k’s customers will be thank­
ful for having received sound credit
advice through this period.”
M r. H olm es began his business ca­
reer in 1900 as owner of the George
W . H olm es Real Estate and Invest­
ment Firm . H e operated this business
for slightly more than a decade and
from 1911 to 1925 was secretary and
managing officer for the First Trust
C om pany in Lincoln. In 1927 he was
elected president of the com pany and
the first part of 1948 was named chair­
man of the board. He became presi­
dent of the First National Bank also
in 1927, which position he still oc­
cupies.
George Holm es was born February
29, 1880, in Lincoln. He attended the
University of Nebraska and the U n i­
versity o f Notre D am e before starting
in business in 1900. In 1905 he was
married to Sarah Burnham and they
have a daughter, Joan.
H is various contacts have resulted

in M r. H olm es’ appointm ent as a N e­
braska Trustee for Ducks U nlim ited,
an international organization for the
prom otion of increasing the duck and
w ildlife population in the United
States and Canada. He is a past vice
president o f the United States C ham ­
ber of Com m erce, a past director of
the Om aha Branch of the Federal
Reserve Bank of Kansas City, and
more recently retired from the A th ­
letic Board of Control at the U n i­
versity of Nebraska, after receiving a
Distinguished Service Award in 1940.
At present he is a director of Beatrice
Foods C om pany, trustee for the M id ­
west Research Institute and the A m er­
ican Cancer Society, and chairman of
Governor Peterson’s H ighw ay A dvis­
ory Com m ittee.
Outside activities, such as owning
and operating a farm near Lincoln,
keep Mr. H olm es busy also, as he
maintains a feed lot and prepares
feeder cattle for market. His intense
interest in w ildlife has led to one of
his hobbies— training retriever dogs.

(Turn to page 43, please)
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B a n ke r, M a y ,

7948

26

Svilitili Sa t'in y s Hands
A P a rt at

IPvbt

Bankers Urged to Give Full Support
to the Savings Bond Campaign
By MORRIS M. TOWNSEND
Treasury Department
Washington, D. C.
MADE a statement to bankers in
1946 which was a new idea then,
but commonly accepted now. I said,
“ The soundness of our national econ­
omy depends much upon the owner­
ship of the public debt by individuals
and other non-bank investors. This
can only be insured through the con­
tinuation of a Savings Bond program.
Every dollar placed by individuals in
Savings Bonds lessen the threat of
runaway inflation — a danger very
much present with us now.”
I hardly need remind you that
events have borne this out. I ap­
pealed to the bankers of the nation
for all-out support of the Savings
Bond program. I am happy to report
that you have done a splendid job
of it.
The banking system held $116.7 bil­
lion or 41.9 per cent of the federal debt
in February, 1946, when the debt
reached its all-time high. By the end
of December, 1947, this had been re­
duced to $91.1 billion or 35.8 per cent.
The amount now held by commercial
banks is $68.6 billion or 26.9 per cent,
against a high of $93.8 billion or 33.7
per cent.
During the same period individual
ownership of government securities in­
creased from $63.5 billion or 22.8 per
cent of the debt, to $65.3 billion or 25.7
per cent. Nearly all of this increase
is due to the buying and holding of
Savings Bonds by individuals, for
there has been no marketable bond
offered since the Victory Loan.
The American people were quick to
grasp the necessity for lending their
funds to their government during the
years when we were battling ruthless
enemies for our existence in a shoot­
ing war. The necessity for an ex­
panded drive to sell Savings Bonds
now is hardly less urgent.
Specifically, this Savings Bond pro­
gram constitutes a major attempt to
spread the national debt without in­
creasing the over-all total. There are
many factors that affect the impact of
the public debt upon our economy.
Distribution is one of them. Large
N orthw estern

B a n ke r, M a y ,


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Federal Reserve Bank of St. Louis

1948

holdings of United States bonds in the
banking system may, under certain
conditions, provide a base for greatly
expanded credit, which in our present
inflationary situation could be danger­
ous to the economy.
But a successful sales program of
Savings Bonds to individuals can have
an even more direct effect in reducing
dangerous inflationary pressure. Dol­
lars thus taken from the spending
stream cease to compete for scarce
goods, with attendant bidding up of

try, what’s good for his community,
what’s good for his customers is good
for the bank and the banker.
No business group has a greater
stake in sound government finance and
a sound national economy. Selling
Savings Bonds contributes to both.
Under present conditions, anything
that can be done to check spiraling
prices will help all financial institu­
tions. The fight to stabilize the econ­
omy is your fight! One of the most
effective fronts on which bankers can
fight is in the Savings Bond campaign.
Each Savings Bond that Mr. and
Mrs. America buys and holds is stored
up purchasing power for the future.
In Series E or F Bonds, this buying
power will grow with each six months
the security is held. Since G Bonds
bring interest checks into your com­
munity each six months. The value
of those bonds held by individuals
today is $46 billion. It will grow if
we keep promoting and selling bonds
with all our skill and all our might.
—The End.

Elected to Second Term

prices. Such dollars, as savings, are
held available for future spending un­
der conditions more advantageous to
the individual, and more advantageous
from the standpoint of the national
economy.
Such thrift constitutes a bulwark for
business stability; it is a contribution
to the happiness and well-being of the
investor. America has grown great
under the tenets of personal thrift.
The financial executive has the right
to ask what he can expect to gain
from the promotion of Savings Bond
sales. Will it strengthen his position
businesswise? Will it pay off in a
tangible way?
Considered in the broader sense, the
answer to the first question is an ob­
vious one. What’s good for the coun­

David M. Auch, executive manager
of the Ohio Bankers Association, was
elected to the presidency of the ren ­
trai States Conference of Bankers
Association officers at the recent an­
nual meeting. This is the second time
Mr. Auch has been elected president,
having had the same office in 1932-33.
Since he was named second vice presi­
dent two years ago, the normal course
of succession to office moved him into
the presidency, against his desires,
however.
Moving into the first vice presidency
was Robert E. Lee Hill, secretary of
the Missouri Bankers Association;
Ralph Fontaine, secretary of the Ken­
tucky Bankers Association, was named
second vice president, and the new
officer taking over as secretary-treas­
urer was C. C. Wattam, secretary of
the North Dakota Association. Mr.
Wattam also has served as president,
his term being in 1936-37.

V

27

OVERNIGHT
'
•

C O LLEC TIO N
a n d
TRANSIT
S ER V IC E .

AIRM AIL- Coast to Coast
RAIL MAIL-Within 500 Miles


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Federal Reserve Bank of St. Louis

i f Our central location and mail facilities enable us
to provide quick service on your collection and
transit items.
i f Evening departures of air and rail mail give over­
night delivery to east and west coasts, and to points
on both borders.

The Om aha National Bank by virtue of these advan­
tages has developed unusual speed and efficiency
in handling items for correspondents.
Inquiries are invited.

The Omaha
National Bank
Member, Federal Deposit Insurance Corporation
N o r t h w e s t e r n B a n k e r, M a y ,

1948

28

Did I » «

M,iHost?

At Day's End Each Person in the Bank
Should Ask Himself This Question
By LLOYD L. COON
Safe Deposit Officer, Mutual Bank
and Trust Co., St. Louis

A

t n o r t h w e s t e r n u n iv e r ­
s i t y , in Patten Gymnasium,

one finds this plaque in a con­
spicuous spot in the corridor:
EDW A R D

W . SPEN CER

First N orthwestern Life Saver. A t the wreck
of the Lady Elgin off Winnetka, Septem ber
8, 1860, Spencer swam through the heavy surf
sixteen times, rescuing seventeen persons in
all.

Following this beautiful demonstra­
tion of courage, his only question was:
“ Did I do my best?”
Let’s all try asking ourselves this
question, especially when we come to
the close of the day’s business. Let’s
see if we can come even near “our
best.”
Let’s all ask ourselves why Spencer
was able to accomplish this remark­
able work! Why was he able to dem­
onstrate that even the impossible can
be achieved? What are we overlook­
ing? What are we neglecting? Why
are we indifferent?
What about this morning? Did we
give out with a cheerful “Good morn­
ing” or did we grudgingly say, “ Morn­
ing—what’s good about it?”
How did we answer that telephone?
Did we answer pleasantly and tell our
inquirer he was connected with the
safe deposit department? Were we so
undeniably courteous he was pleased
to be on the list of our safe deposit
customers?

Personal Contact
And how about our customers who
called in person? Were we affable no
matter what they reflected? Gloom!
Friendliness! Mood for complaint!
Was an effort made to engage them in
their favorite topic? How about the
golf score, the garden, church, lodge,
or what have you?
Did we answer politely and humor­
ously when the disgruntled customer
charged us with using “post office”
pens? Show them the safe deposit
department is even human?
And the new customers? Did we
take time to show them all abodt how
to proceed when they wanted to get
into their safe deposit boxes? Show
them the coupon booths; explain the
strength of the vault, its prospective
features? What about the fellow who
uses his box “too” much, in our opin­

N o r t h w e s t e r n B a n ke r, M a y , 1948
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ment taste and experience? Let’s check
that! Is dignity reflected with pro­
tection for valuables?
Let’s check
that, too!
And when we lose a box, are we
displeased to lose the business or does
our grace suggest we are sorry but
awaiting a second opportunity to
serve? That’s important!
And when that estate box was finally
under consideration, was it the legal
administrator’s impulse to “forget us,”
or was he here to stay? Lots of busi­
ness which could be retained is lost
through our acceptance of the possibil­
ity that we may lose it anyway. On
the other hand, we may not, and we
may get some other boxes like that:
be on guard!
Showing the customer how safe the
place is, what invaluable protection is
offered through very small cost, that
assurance which is theirs through the
protection offered, is highly important
and should not be overlooked. He
may not even know how safe it is,
keeping his really important things
“under the mattress” but only wanting
to hide these few things. Let him see
that it’s the place for “everything.”
And let’s be just as polite about past
dues as we are about all business mat­
ters. Maybe there’s a very good rea­
son. You may get a year’s rent in
advance.
Let’s try to give our services, when
possible, to all departments. Maybe
L LO Y D L. COON
our own co-worker would like a little
“ Are we doing our best?”
information on boxes, etc. Let’s in­
And that young “thing” who wanted
quire.
to rent a box? Or perhaps her boy
And let’s all remember as members
friend? Were we patient in explain­
of the Safe Deposit Association or in
ing the whys and wherefores? Sure?
safe deposit work at all, “every man
And that elderly little lady, who re­
owes something to the upbuilding and
quired so much attention? Did we
expansion of the profession to which
show annoyance or were we unusually
he belongs.”
helpful and gracious?
Are we doing our best?—The End.
What about all those questions to
which we didn’t really know the an­
swers! Did we attempt to find them, With La Salle National
Roy E. (“ Pat” ) Kileen was elected
or simply show it was too much trou­
assistant vice president of the La Salle
ble to find out?
National Bank of Chicago last month
Show Good Taste
How about the stationery and usual and will serve in the bank’s corre­
supplies? Are they handy and effi­ spondent bank department. Mr. Kileen
ciently arranged for speed and ac­ has been associated with Chicago bank­
curacy? Does everything from the ing for the past thirteen years, having
furniture arrangement to the vault previously served as bank examiner
door show good safe deposit depart­ for the state of Wisconsin.

ion? We did not permit him to feel
that way, did we?
And the fellow who doesn’t like our
rules. Did we indicate “there was a
safe deposit department in the bank
over yonder,” or did we graciously
admit our shortcomings and try to
overcome them through consideration
for his requirements?
How did we try to counteract that
crowded admission desk annoyance?
Especially when we heard audible
complaints about our “ service” and
what have you?

The money your depositors re­

the day o f receipt.

ceive from the sale o f live stock
in

trans­

shippers to instruct their com ­

ferred to their credit in your

mission firms to route the pro­

Bank if routed through us. The

ceeds o f their live stock sales

Stock Yards post office is just

through this Bank. We shall be

across the street and the advice

glad to supply you with instruc­

o f credit is mailed to you on

tion cards for this purpose.


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Federal Reserve Bank of St. Louis

Chicago

is

speedily

A ll you have to do is ask your

L IV E S T O C K
*A a/ifJita / B A N K

f ^ Z / t i f 'f f f j o

ESTABLISHED

1868

U N I O N S T O C K YARDS

M em ber Federal Deposit Insurance Corporation

N orthw estern

B a n ke r, M a y ,

1948

30

LEGAL

D oes

0'a n eeU a tio ii o í a I* u r e b a s e

Y o itl th e
Q.

An Iowa bank director, as a li­
censed real estate broker, was em­
ployed, on a commission basis, by
Bradley to sell a farm in that state.
The broker interested Schommer in
the property. Schommer and Bradley
entered into a mutually satisfactory
and binding agreement to buy and sell
it respectively for $10,000 and as a part
of the deal Schommer made a down
payment of $500. Shortly thereafter
Bradley, for $100, agreed with Sebommer to cancel the purchase agreement.
Was Bradley liable to the broker for
his commissions on the $10,000 agreed
price?

Yes. When a real estate agent pro­
vides a buyer acceptable to an owner
of property who has employed him to
find a purchaser and the owner and
the purchaser enter into a mutually
satisfactory and binding contract of
purchase, the agent becomes entitled
to his commission. As an incident
thereto, the broker is entitled to a
commission on the full purchase price,
and such commission will not be re­
duced by a mutual cancellation of the
contract of sale. The Iowa Supreme
Court has so held in a recent decision,
pointing out that such holding is in
accordance with the weight of author­
ity throughout the country.

Q

. Brown made a verbal agreement
in January with Matthews, a banker,
to lease a house belonging to Mat­
thews. The lease was to run for eleven
months commencing the first day of
the next July. In their state oral
leases for a term not exceeding a year
are valid. Where the term is longer
they must be in writing. Was the lease
here involved legal and binding?

Yes. An oral lease for a term of
not more than a year is valid even
though the term is to commence at a
future date. It follows that, even
though the lease in question did not
become effective until s o m e five
months after it was entered into, it
was valid and binding because, once it
became effective, it was to run for
only eleven months.
N o r t h w e s t e r n B a n k e r, M a y , 1948

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Federal Reserve Bank of St. Louis

D ro h erm
s
This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT

Q. i.

is not uncommon in banking
circles to run across situations where
a person, to defraud his creditors, will
give to another an option to buy cer­
tain of his property at a figure much
lower than its value, a note and mort­
gage thereon, or some other executory
contract covering his assets upon
which performance is to occur at a
later date. Does the fact that the pur­
pose of such a contract is to defraud
creditors make it unenforceable in the
courts between the parties thereto?

An executory contract in fraud of
creditors is unenforceable as between
the parties in most jurisdictions. There
is, however, a minority view taken
by a number of the courts which holds
that although fraudulent executory
contracts may be void or voidable as
to creditors, they are valid as between
the parties themselves and will be en­
forced by the courts. Illinois, Iowa,
Kentucky, Michigan, Missouri, Nebras­
ka, Ohio and Texas take the majority
view and Mississippi and Tennessee
the minority. There are some states
that have taken both views.

Q.

Senn borrowed $5,000 from his
bank and gave to it a promissory note
for that amount together with a mort­
gage on certain business property
owned by him. The mortgage, in ad­
dition to covering the $5,000, provided
in clear and unmistakable terms that
it would stand as security for any in­
debtedness of Senn to the bank which
should be created thereafter. An addi­
tional $5,000 was borrowed by Senn
and that amount, along with the orig­
inal $5,000 loan, was ultimately repaid
by him and the mortgage satisfied.
Prior to the satisfaction did the mort­
gage actually secure the entire $10,000?

Yes. As to mortgages containing
“dragnet” clauses similar to the one

here involved, unless there is some­
thing in the wording of the instrument
which would confine the operation of
the cause to advances made or debts
already existing at the date of the
mortgage, the security of the mortgage
will, under such a clause, embrace ad­
vances made or debts created subse­
quent to the execution of the mortgage
and before its satisfaction or fore­
closure. Decisions so holding may be
found in Alabama, Georgia, Iowa, Ken­
tucky, North Dakota, Oklahoma, Texas
and other states.

Q.

Bokien, a banker, conducted a
furniture jobbing business. As an in­
cident thereto he contracted with
various individuals to sell merchan­
dise, their relations with him being
those of independent contractors. One
of the individuals was inducted into
military service and, on his return
from such service, sought to require
Bokien to give him a selling contract
equivalent to the one he had before he
left, under the reemployment provi­
sions of the Federal Selective Service
Act. Since he was an independent
contractor should he prevail?

No. The provisions of the Federal
Selective Service Act which require
employers to give back to returned
employe veterans their old jobs or the
equivalent do not apply in cases where
independent contractors are involved.
The United States Circuit Court of
Appeals, Ninth Circuit, has so held in
a recent decision.

Q.

Dopf, a banker, executed and ac­
knowledged a deed in favor of Schnetzer covering certain real estate in Iowa.
There was never any valid delivery
of the deed by Dopf to Schnetzer but,
through inadvertence, the deed got out
of Dopf’s hands and it was duly re­
corded on the public records. Did the
fact that the deed was recorded make
it a binding instrument even though
it had not been delivered?

No. The recording of a realty deed,
in itself, does not constitute a delivery
of the instrument and, where no deliv(Turn to page 38, please)

31

How world trade is reflected in a bank statement...
commercial letters of credit to firms with international busi­
ness . . . furnishing travelers’ letters of credit to individuals
. . . and making possible personal remittances to relatives
and friends abroad.
Many of these transactions help pro­
vide foreign countries with the purchasing power to buy
American products.
This is but one phase of Manufacturers Trust Company’s
many activities designed to serve the needs of individuals
and the larger interests of your community. It is another
chapter in the story of money at wo r k— worldwide; it re­
flects your bank’s part in the promotion ofworld commerce.

Today, when you enjoyed your morning coffee, it may not
have occurred to you that because of that coffee, or tea, or
other imported product that you use every day, some per­
son in a foreign country may buy bread tomorrow. Such
exchanges of goods between countries are facilitated by
your bank!
In the statement below, under the items “ Loans, Bills
Purchased, etc.,” “ Outstanding Acceptances,” and else­
where, is reflected the fact that Manufacturers Trust Com­
pany handles millions of dollars of foreign banking trans­
actions: Financing the export of a cargo of wheat flour . . .
aiding in the import of a scarce raw material . . . issuing

“ t ii iM ii ii iii iii ii iii iiM i iii M iiM i iii in i iii ii iii iii ii iH n ii ii iii iii ii n ii iii M iii n ii iii ii iii iii ii iii iii ii iii iii ii iii im ii iin iii ii iii iii ii iii im ii ii iii iii im ii ii iii iii ii iii iii m im ii im ii im im i iii im ii ii iii iii ii im ii iim i iii m iii ii f

III H E C T O R S

!

CONDENSED

\

STATEMENT

OF

EDWIN J. BEINECKE

CONDITION

As at close o f business March 31, 1948

Chairman, TheSperry & Hutchinson C< .

|

RESOURCES

Products Corporation

LOU R. CRANDALL
President, George A . Fuller Company

CHARLES A. DANA
President, D ana Corporation

HORACE C. FLANIGAN
Vice-Chairman o f the Board

JOHN M. FRANKLIN
President, United States Lines Company,

PAOLINO GERLI
President, Gerli & Co., Inc.

HARVEY D. GIBSON
President

FREDERICK GRETSCH
President, Lincoln Savings Bank

JOHN L. JOHNSTON
President, Lambert Company

OSWALD L. JOHNSTON
Simpson Thacher & Bartlett
KENNETH F. MacLELLAN
President, United Biscuit
Company o f Am erica

LI A R I C I T I E S

C a p i t a l .................................................................. $41,250.000.00
S u r p l u s ..................................................................
60,000.000.00
Undivided P rofits...................................................
24,005.172.09
Reserve for C ontingencies.............................................................
Reserves for Taxes, Unearned Discount, Interest, etc..................
Dividend Payable April 1. 1948 .......................................................
Outstanding A cceptances..................................................................
Liability as Endorser on Acceptances and Foreign Bills . . . .
Deposits
...........................................................................................

|
E

Chairman, Atlantic , G u lf and
W est Indies Steamship Lines

ALVIN G. BRUSH
Chairman , Am erican Hom e

Cash and Due from B a n k s.............................................................$ 558,277,393.49
U. S. Government Securities............................................................. 1,080,513,834.90
3,073,067.99
U. S. Government Insured F. H. A. M ortgages..............................
State and Municipal B o n d s .............................................................
30,359,954.29
Stock of Federal Reserve B a n k ........................................................
3,037,500.00
Other Securities
............................................................................
23,271,935.68
Loans, Bills Purchased and Bankers’ A cceptances....................
496,448,941.01
Mortgages
......................................................................................
13.810,195.57
Banking Houses
............................................................................
10,257,443.85
Other Real Estate E q u ities.............................................................
233,980.73
Customers’ Liability for Acceptances..............................................
7,019,647.19
Accrued Interest and Other Resources .
5,578.025.98
$2,231,881,920.68
=

EDGAR S. BLOOM

$125,255.172.09
6,880,063.00
4,346,684.14
1,237,500.00
7,365,435.51
1,113,798.55
2,085,683.267.39
$2,231,881,920.68

United States Government and other securities carried at $64,334,653.75 are p led g ed to secure
public funds and trust deposits and f o r other purposes as required or perm itted by law,

JOHN T. MADDEN
President, Emigrant Indus­
trial Savings Bank

JOHN P. MAGUIRE
President, John P. M aguire & Co., Inc.

C. R. PALMER
President, Cluett Peabody & Co., Inc.

GEORGE J. PATTERSON
President, Scranton & Lehigh Coal Co.

WILLIAM G. RABE
Vice President

|

HAROLD C. RICHARD
New York C ity

HAROLD V. SMITH
President, H om e Insurance Co.

=

ERNEST STAUFFEN
Chairman, Trust Committee

L. A. VAN BOMEL

Manufacturers Trust Company
Head Office: 55 Broad Street, New York 15, N. Y.
MORE THAN 75 COMPLETE BANKING OFFICES IN GREATER NEW YORK

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

Member Federal Deposit Insurance Corporation

President, National D airy
Products Corporation

GUY W. VAUGHAN
President. Curtiss-Wright Corporation

HENRY C. VON ELM
Chairman o f the Board

ALBERT N. WILLIAMS
President, W estinghou se
A ir Brake Company

Nort hwest ern Banker, May,

1948

32

Guaranty Iriisl (ompnnv oí New York
i 4 0 Broadway
Fifth Avenue at 44th St.

Madison Avenue at 60th St.
London

•

Paris

*

40 Rockefeller Plaza

Brussels

Condensed Statement of Condition, March 31, 1948
RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and Bankers . . . . . . . .
U. S. Government O b lig a t i o n s ......................................
Loans and Bills Purchased
. ......................................
Public Securities . .
$
8 5 ,3 9 0 ,3 9 9 .1 0
Stock o f Federal Reserve Bank
.
9 ,0 0 0 ,0 0 0 .0 0
Other Securities and Obligations .
10 ,7 3 2 ,2 2 9 .5 5
Credits Granted on Acceptances .
1 2 ,2 0 3 ,5 9 4 .9 3
Accrued Interest and Accounts
R e c e i v a b l e .....................................
7 ,2 8 7 ,6 2 6 .3 4
Real Estate Bonds and Mortgages ,
1,3 24,9 92 .0 2

$

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

1 2 5 ,9 3 8 ,8 4 1 .9 4
4 ,8 6 5 ,7 7 3 .7 8
10 5 ,7 2 4 .0 2

Bank Premises .
Other Real Estate
Total Resources

.

.

.

.

.

.

.

.

.

.

$2,760,369,125.00

LIABILITIES
C a p i t a ! ........................................... $ 1 0 0 ,0 0 0 ,0 0 0 .0 0
Surplus F u n d ...................................... 2 0 0 ,0 0 0 ,0 0 0 .0 0
Undivided Profits . . . . . .
6 2 ,5 5 2 ,2 2 4 .3 2
Total Capital Funds ............................................ $
3 6 2 .5 5 2 ,2 2 4 .3 2
Deposits . . . . . . . . .
$ 2 ,3 0 4 ,4 3 7 ,6 4 7 .0 7
Treasurer’ s Checks Outstanding
28 ,398,1 71.11
Total Deposits ......................................................
2 ,3 3 2 ,8 3 5 ,8 1 8 .1 8
A c c e p t a n c e s ................................ $
19 ,361,611.72
Less: Own Acceptances
Held for Investment
. . . ^__ 7 ,0 8 6 .6 3 7 .4 2
$
12 ,2 7 4 ,9 7 4 .3 0
Dividend Payable April 1, 1948 .
3 ,0 0 0 ,0 0 0 .0 0
Items in Transit with Foreign
B ranches...........................................
2 ,1 9 6 .6 0 8 .5 3
Accounts Payable. Reserve for Ex­
penses, Taxes, etc............................
1 7 ,5 0 9 ,4 9 9 .6 7
6 1 ,9 8 1 ,0 8 2 .5 0

$2,760,369,125.00

Total Liabilities

Securities carried at $93,605,186.01 in the above Statement are pledged to qualify for fiduciary powers, to
secure public moneys as required by law, and for other purposes.

J. LUTHER CLEVELAND
Chairman o f the Board

W ILLIAM L. KLEITZ
President

DIRECTORS
GEORGE G. ALLEN
Director, BritishAmerican Tobacco Company, Limited,
and President, Duke Power Company
WILLIAM B. BELL

President,
American Cyanamid Company

F. W. CHARSKE
Chairman, Executive
Committee, Union Pacific Railroad Company
J. LUTHER CLEVELAND

Chairman o f the Board

LEWIS GAW TRY
JOHN A. HARTFORD
President, The Great
Atlantic & Pacific Tea Company
CORNELIUS F. KELLEY Chairman o f the Board,
Anaconda Copper Mining Company
MORRIS W. KELLOGG
Chairman o f the Board,
The M. W. Kellogg Company
WILLIAM L. KLEITZ

W. PALEN CONWAY

President

CHARLES P. COOPER
Vice-Chairman o f the
Board, American Telephone and Telegraph Company

CHARLES S. MUNSON
Chairman, Executive
Committee, Air Reduction Company, Inc.

WINTHROP M. CRANE, Jr.
President,
Crane & Co., Inc., Dalton, Mass.

GEORGE E. ROOSEVELT

STUART M. CROCKER
President,
Columbia Gas & Electric Corporation

EUGENE W. STETSON
Chairman,Executive
Committe, Illinois Central Railroad Company

JOHN W. DAVIS

ROBERT T. STEVENS
Chairman o f the Board,
J. P. Stevens & Company, Inc.

o f Davis Polk Wardwell
Sunderland & Kiendl
CHARLES E. DUNLAP
President,
Berwind-White Coal Mining Company

WILLIAM C. POTTER

Retired
o f Roosevelt & Son

THOMAS J. WATSON
President,
International Business Machines Corporation

GANO DUNN
President,
The J. G. White Engineering Corporation

CHARLES E. WILSON

WALTER S. FRANKLIN
Vice-President,
The Pennsylvania Railroad Company

ROBERT W. W OODRUFF
Chairman,
Executive Committee, The Coca-Cola Company

M em ber F ederal Deposit Insurance Corporation

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


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Federal Reserve Bank of St. Louis

Ì9 4 8

President, General
Electric Company

The Nebraska
Group Meetings
Including bankers, their wives, em­
ployes, and those on the Special Train,
a grand total of more than 1,500 reg­
istrations was recorded at the six
Group Meetings of the Nebraska Bank­
ers Association held from April 19th
to 23rd, inclusive. While attendance
at one or two of the meetings was
not quite up to former years, there
was no lack of enthusiasm and inter­
est in the meetings by those who were
privileged to participate.
With the exception of the Group
Three meeting at Norfolk, which was
held on the same day as the Group
Two meeting at Fremont, programs
for the sessions were the same at all
towns. J. 0. Peck, as association pres­
ident, addressed all meetings. J. V.
Johnson of Omaha spoke for the Re­
construction Finance Corporation, and
Delos James, Washington, D. C., man­
ager of the agricultural department of
the United States Chamber of Com­
merce, gave a long-range view of the
prospects for agriculture. Charles Z.
Meyer, comptroller of the First Na­
tional Bank, Chicago, talked on the
“ Reserve Method of Accounting for
Bad Debts,” and answered many ques­
tions from bankers. After - dinner
speaker was William E. Johnson of
Omaha, who seemed to have a bottom­
less bag of jokes, with no repetition.
The Bankers’ Group Special Train,
with its many genial hosts as passen­
gers, has become over the years a
necessary part of Nebraska group
meetings, and the brand of hospitality
daily in the lounge car is of the A-l
variety. To Messrs. Carl Swanson and
Ernie Thompson of the Nebraska
Bankers Association go orchids for an­
other well arranged and successfully
completed trip.
There were some newcomers on the
train this year, among them Bruce
Thomas, Commerce Trust, Kansas
City: Guy S. Fadsell, City National
Bank. Kansas City; B. M. I,amberson.
Commerce Trust, Kansas City; Doug­
las McAvity, Manufacturers Trust,
New York: Robert Priborsky, Omaha
National Bank: J. K. Spafford, Chase
National, New York, and Glenn Yaussi.
National Bank of Commerce, Lincoln.

New Trust Officer
Winston H. Comfort was elected as­
sistant trust officer of Mississippi Val­
ley Trust Company of St. Louis at
a recent meeting. Mr. Comfort, prior
to his election, was manager of the
real estate division of the trust depart­
ment.
Always active in the local A.I.B.
chapter, he twice served two-year pe­
riods on the board of governors of this
organization.

A t th e W 4 H
N e b r a s k a G r o u p M e e t in g s
(A ll captions reading from left to right)

] — Austin L. Vickery, assistant vice president L nitecl States
N ational Bank, Omaha, and treasurer Nebraska Bankers Associ­
ation ; Carl G. Swanson, Omaha, Association secretary, Ernest
Thompson (sta n d in g ), Omaha, Nebraska Bankers A ssociation;
J. O. Peck, president Central N ational Bank, Columbus, and Asso­
ciation president; and J. R. Kenner, president Thayer County
Bank, Hebron, and Association vice president.
2— Some of the Group Trippers: J. Q. Adams, Jr., assistant
cashier Continental, Chicago; H . H. Echtermeyer, vice president
L ive Stock N ation al, Om aha; T. C. Cannon, district manager St.
Paul Terminal W arehouse Co., Des M oines; Fred S. Aldrich, vice
president Continental N ational, L incoln; John McCumber, vice
president Stock Y ards National Bank, Om aha; L. M. McCague,
vice president National Company, Om aha; and Burnham Yates,
vice president First N ational Bank, Lincoln.
3—
E. B. Ottoman, vice president S tockm en ’ s N ational Bank,
Rushville, Group Six secretary; and E. M. K n igh t, vice president
Alliance N ational Bank, president of Group Six.
4—
V. L. Bartling, assistant vice president First National Bank,
Chicago; O. W Johnson, vice president Bank of Burwell, and past
president Group F iv e ; Charles Z. Meyer, comptroller First National
Bank, Chicago; and Clark Weckbach, president First N ational
Bank, Ord.
5—
William E. Johnson, Johnson & Associates, Omaha, banquet
speaker for all the group m eetings; Mrs. A . C. Hove, M inden; and
A . C. Hove, cashier Minden Exchange N ational Bank, and new
president Group Four.


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Federal Reserve Bank of St. Louis

BIOGRAPHY OF AN IDEA
The 20th Anniversary story
of an idea which has revolutionized record-keeping procedures
in banking, retailing, manufacturing, and many other fields

T h e ID EA W AS BORN IN THE 2 0' s. Early

in the 20’s a banker, George L. McCarthy
— seeking to bring new protection and
speed to the recording of check transac­
tions—came up with the unique idea of
using photography.
He knew that nothing matched photog­
raphy for complete and accurate repro­
duction at great speed . . . knew it to be
basically a simple process.
But to translate his idea into an effective business ma­
chine, the banker had to turn inventor. In co-operation
with Eastman Kodak Company—foremost producer in
the photographic field—he developed the first automatic
microfilming equipment. . . the Recordak Microfilmer.
With it, a clerk having no knowledge of photography
could record checks and other documents on film as fast
as he could feed them into the machine. Focus, timing,
lighting were fixed, automatic . . . and the items were
photographed at a fraction of their actual size.
FIRST SUCCESSFUL IN B A N K IN G . In 1928, the first Re­
cordak Microfilmer made its bow in a bank. It proved
a tremendous success. As the basis for the Recordak
Transit System, it enabled the bank to make a photo­
graphically accurate and complete record of checks


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Federal Reserve Bank of St. Louis

passing through its hands . . . brought new efficiency,
new economy to transit operations. Other great system
triumphs were to come . . .
In 1931, the unique Recordak Single Posting System
was installed in the nation’s largest bank bookkeeping
department. It brought about great economies—in time,
stationery, and machines —by eliminating duplication.
(Only one record to post . . . only one posting a day
. . . with the Recordak Single Posting System.) It also
brought new protection to bank, depositor, employee
. . . by providing a photographic record of every trans­
action.
So important were Recordak’s contributions, that it
soon became the acknowledged leader in photographic
banking systems. Today 900 of the 1000 largest banks
in the country use Recordak microfilming—as do thou­
sands of the smaller ones.
THEN SUCCESSFUL IN RETAILIN G . Taking their cue from
banks, retail stores were quick to see the advantages
of Recordak microfilming. By adopting the Recordak
Salescheck Billing System, their accounts receivable
departments were able to eliminate time-consuming,
costly description . . . send out the original sales checks
with their bills . . . yet retain a photographic record for
accounting and adjustments.

Because this reduced operating costs materially and
improved customer relations, Recordak Salescheck Bill­
ing became the basic system with leading department
stores all over the country.
N O W SUCCESSFUL IN FIELD AFTER FIELD. Today, the idea
pioneered by George L. McCarthy 20 years ago has
come into its own in many fields besides banking and

retailing. For example:

The U. S. Government is using it to give Census,
Social Security, and millions of other records maximum
protection in minimum space. In the war, Recordak
provided the Government with the equipment used in
the V-Mail System familiar to every American with
relatives overseas. It also provided a major part of the
equipment enabling the military, and industry, to safe­
guard vital records . . . to “condense” plans, maps, and
drawings for speedy transmission to far-off places.

Railroads are using Recordak microfilming to turn
the recording of waybills at junction points into a
speedy photographic operation.

Hospitals are using it to make case history records
readily available for reference and, at the same time,

Four hundred leading newspaper publishers are put­
ting perishable newsprint back issues on Recordak
microfilm for protection against the toll of time and the
wear-and-tear of daily reference in city rooms, and for

Business and industry are using it to provide branch
offices and plants with duplicate records, parts and in­
ventory lists . . . to condense inactive files so that bulky

to save needed space.

original documents may be destroyed.

distribution to public libraries.
Engineering firms are putting acres of blueprints on
small rolls of film that can be carried in a brief case and
flown to construction and repair points.
Libraries are using it to preserve rare literary treas­
ures . . . to make them available to scholars in photo­
graphically exact reproductions . . . to offer readers
complete files of newspapers taking only 2% of the

A CO N TIN U IN G SUCCESS STORY. Far as it has gone in
its first 20 years, Recordak microfilming has a future
limited only by the ingenuity with which it is applied.
For as long as business history is written, there will be
a need to record it as only photography can: with accu­
racy and completeness . . . at great reduction, high
speed, and low cost.

That is the Recordak idea.

space bound volumes require.

RECORDAK

CORPORATION

(Subsidiary of Eastman Kodak Company) • 350 Madison Avenue, New York 17, N. Y.
ATLANTA • BOSTON • CHICAGO • CINCINNATI • CLEVELAND • DALLAS • DENVER
DETROIT * HOUSTON • KANSAS CITY, MO. • LOS ANGELES • NEW ORLEANS • NEW YORK • PHILADELPHIA
PITTSBURGH • PORTLAND, ORE. • ROCHESTER, N. Y. • ST. LOUIS • SAN FRANCISCO • WASHINGTON

^ P £ C C P £ f i /(
(Subsidiary of Eastman Kodak Company)

originator of modern microfilming—and its application to banking systems


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Federal Reserve Bank of St. Louis

‘ Recordak" is a trade-mark

36

Guaranty Officer Advanced

Me e t
"otajvuf " UaJudaman

Guaranty Trust Company of New
York announces the appointment of
J. Brougham Wallace, Jr., as a vice
president. He continues his associa­
tion with the banking department
group that embraces the company’s
business in the states of New York,
New Jersey, Delaware, Maryland and
the District of Columbia.
Mr. Wallace is a graduate of Dart­
mouth College. He has been with the
Guaranty for 20 years, was first ap­
pointed an officer in 1937. and has been
a second vice president since 1943.

To Address Bankers
Ray J. Miller, vice president and
personnel director, First National
Bank in St. Louis, will address the an­
nual educational conference of the
Junior Bankers Section, Arkansas
Bankers Association, to be held at Hot
Springs, May 29th-31st, on the subject,
“Employe-Employer Relations.”

Pay Second 1948 Dividend
NEW EXECUTIVE VICE PRESIDENT
STATE BANK OF WAPELLO
L. H. "Larry" Vardaman is the
new executive vice president of the
State Bank of Wapello.
The Board made a very careful
check, sending representatives in
person to the State Banking Depart­
ment and also to Keosaugua and
Emerson, Iowa, where "Larry" had
previously served as a bank officer.
What they learned was "music to
their ears" and completely substan­
tiated our judgment and recommen­
dation.
If you feel so inclined, ask Presi­
dent W . P. "B ill" McNeil of the State
Bank of W apello about our service.
Don't look for him at the bank. He
is the farm implement dealer in
W apello. W e found "B ill" and his
Board to be a fine cooperative group
to work with. They will give strong
support to "Larry" in his new en­
deavors.
W e predict that "Larry" will do at
W apello the same efficient, outstand­
ingly successful, business building
job he did at Emerson. W e are
happy to have had a part In mak­
ing his selection possible.
If you have a "management prob­
lem " and can provide a substantial
block of stock for a high-class
executive, we can help you too. Our
President, Henry H. Byers, has had
over 20 years of experience in solv­
ing bank management problems.
Write us in confidence and without
obligation, about your problem.

Bankers Service Co.
Box 1435

Tel. 2-7800

D es M oin es 5, Iow a
(Offices in the Register & Tribune Bldg.)

N orthw estern

B a n ke r, M a y ,


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Federal Reserve Bank of St. Louis

1948

The board of directors of Investors
Stock Fund, Inc., open-end investment
company, have declared a quarterly
dividend distribution of 14 cents a
share for the second quarter of the
current fiscal year, according to E. E.
Crabb, president and chairman of the
board. This compares with a 12 cents
per share dividend for the correspond­
ing quarter of the last fiscal year.
The current distribution, derived ex­
clusively from net interest and divi­
dend income, is payable May 21, 1948.
to shareholders on record as of April
30, 1948.

Joins City National
The board of directors of The City
National Bank and Trust Company of
Kansas City, Missouri, announces the
election of Hoyt Purcell as trust offi­
cer. Mr. Purcell will work in the fields
of new trust business and trust invest­
ments. He was a partner in the firm
of Martin - Holloway - Purcell, Kansas
City investment dealers in corporate
and municipal securities, from 1933
until his connection with The City
National. He had banking experience
in the investment department of the
Fidelity National Bank and Trust Com­
pany after he graduated from Kansas
State College, in Manhattan, Kansas,
which was his home.
City National’s other trust officers
are Earl Deputy and Richard Pendle­
ton.

Credit Man Elected
Arthur L. Olson, vice president of
the Federal Reserve Bank of Chicago,
has been elected a director of the
Chicago Association of Credit Men.
Mr. Olson became associated with
the Federal Reserve Bank of Chicago
in 1918 and has served in various de­
partments of the bank since that time.
He has been active in the Chicago
Association of Credit Men for many
years and has served as president of
the Chicago Chapter of the Robert
Morris Associates, the national bank
credit group of the National Associa­
tion of Credit Men.

Northern Trust Ups Two
The board of directors of The North­
ern Trust Company, Chicago, an­
nounced two staff changes last month.

Here’s help for your Farmer Customers
1 ou can advise them wisely on which enterprises are safest and
most profitable; you can make sound loans by keeping in close touch
with changing agricultural conditions, through the use o f the

DOANE AGRICULTURAL DIGEST
Prepared by the oldest and largest farm management and appraisal
organization— the results of its wide experience (in operating f o r
profit hundreds of farms, ranches and plantations) are contained in
the Digest. This is a 450-page cumulative reference volume, in strong
loose-leaf binder, tab-indexed. It is kept up-to-date by twice-monthly
releases, which interpret trends and predict outlook on production,
markets, surpluses and shortages ahead. Particularly important each
month are the releases on “ When to Sell and Buy,” “ Important This
Month, and "Business and Agriculture.” . . . Bankers, farmers,
ranchers and business men in every State, in Canada and in Mexico,
use the Digest because it pays. . . . It saves you time— gives you quick
answers to questions constantly asked by farmers.
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RELEASES

DOANE AG R ICU LTU R A L SERVICE, INC.
Box 601, 203 Plymouth Bldg.
Des Moines 9, Iowa

37
Norman McClave was promoted from
assistant secretary to second vice pres­
ident and Robert L. Fisher was elected
assistant secretary. Both are officers
in the trust department.
Mr. McClave joined the hank in
1934 in the messenger division follow­
ing graduation from Princeton Univer­
sity. Mr. Fisher became associated
with the bank in 1941 following thir­
teen years’ experience with banking
and insurance.

New Regional Manager
Lloyd Beall, who was previously
district manager for The St. Louis
Terminal Warehouse of the Memphis

mont Branch; Wallace Kincaid, assist­
ant cashier, Downey Branch, and Miss
Marian A. Jordan, Los Angeles Head­
quarters.

Issue New Stock
William H. Regnery, chairman of
the board of the Central National Bank

in Chicago, has announced that the
directors have approved the sale of
50,000 additional shares of new, $10
par, common stock at a price of $20
per share, adding $1,000,000 to the
bank’s capital structure. Capital will
be increased to $1,300,000, surplus to
$1,000,000, and undivided profits to ap-

A

r

N U M B ER ED P R IN T IN G
There is something impressive
abou t n u m bered prin tin g.
Whether the numbers appear on
football tickets, or tax stamps, or
currency, or credit cards, or bonds
or bank checks, they seem to say,
" W e have been counted, we are
recorded, treat us with respect.”
And so all DeLuxe Personalized
Checks are consecutively num­
bered. It eliminates waste. It
sim p lifie s re co n c ilia tio n . It
encourages orderliness. It sets up
better control all the way along
the lin e and it is w orth the
trouble.
Naturally numbering presents an

additional chance for error in
printing, and it necessitates care­
ful maintenance o f temperamental
machines and requires somewhat
more skill on the part o f the
press operator, but it provides
the plus factor that Personalized
Checks need to give them the
dignity which they in turn give
to financial transactions.
Printed numbers are as much a
part o f DeLuxe Personalized
Checks as the high-grade safety
paper, the top quality printing,
the attractive gold-stamped cover
or the striking red box. They
complete our package. They cost
you nothing extra.

Manufacturing Plants at:
L LO Y D B E A LL
Regional Manager in Chicago

office, has been transferred to the
firm’s office in Chicago, due to its con­
tinued expansion program. Mr. Beall
will be serving in the capacity of re­
gional manager. Before moving to
the St. Louis Terminal he was con­
nected with the Industrial Bank in St.
Louis for several years. Office space
has been increased in the First Na­
tional Bank Building in Chicago.
Succeeding Mr. Beall as district man­
ager in the Memphis territory is James
Jackson, Jr., who, prior to joining the
St. Louis Terminal Warehouse Com­
pany, was connected with the Union
Planters National Bank and Trust
Company in Memphis.

Quarter Century Members
New members of the Bank of Amer­
ica’s Quarter Century Club include:
C. S. Dandridge, assistant vice presi­
dent, Los Angeles Headquarters; W.
H. Goodrich, assistant vice president,
Los Angeles Headquarters; Philip
Neal, manager, La Jolla Branch; M.
W. Dwyer, manager, Washington-Ver
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N EW Y O RK , CLEVELAND, CHICAGO,

KANSAS C ITY, ST. PAUL

E f f e e t i v a c o - o r d i n a t io n
of all departments assures rapid, efficient han­
dling of every type of banking transaction, ^ou
are invited to use any or all o f our facilities.

City N a t io n a l B

ank

1 M » T i l l S T C O M P A N Y o f C h ic a g o
208
<M

SOUTH

LA S A L L E

STREET

E M B E R F E D E R A L D E P O S I T IN S U R A N C E C O R P .)

N orthw estern

B a n ke r, M a y ,

1948

38
proximately $437,500. In addition, the
bank has contingent reserves in excess
of $552,000.
Mr. Regnery stated that the addi­
tion of this new capital was considered
desirable because of the investment in
new banking quarters now under con­
struction to replace the old premises
at 728 Roosevelt Road which were de­
stroyed by fire last year.

Adds to Field Staff
Newest addition to the Des Moines
office staff of the St. Paul Terminal
Warehouse Company is John M. Rei­
ser, according to an announcement by
T. C. Cannon, district manager.
Mr. Reiser is a native of Iowa, born

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h is California - w ide

correspondent service
brin gs you efficien cy
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N aturally you want speed and efficiency in the handling of
your California transactions. Through its C alifo rnia-w id e
service (yours through one account in Los Angeles or San
Francisco) this bank gives you direct routing to more than
300 communities.
O f equal importance is”the human touch"in your corre­
spondent relationships. Bank of America's correspondents
will tell you that this bank has personalized its services in
a manner which adds an important extra value for banks
and bankers everywhere.

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Bank of America Travelers Cheques are known
the world over.

S e ll them to y o u r cu s to m e rs

Northwestern Banker, May,


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

1948

W ill

JOHN M. K EISER
Travel Iowa and Nebraska

in South English 29 years ago and he
completed high school there. Follow­
ing attendance at Iowa State Teachers
College at Cedar Falls, Mr. Reiser was
employed by the Shores Pharmaceuti­
cal Manufacturing Company of Cedar
Rapids, from which position he en­
listed in the Navy. H » was discharged
as a Chief Pharmacist’s Mate.
The addition of Mr. Reiser to the
Des Moines district office staff is in
keeping with the expansion program
instituted by St. Paul Terminal during
the past year, and will enable the com­
pany to better serve the needs of field
warehousing in the Iowa-Nebraska
territory.

LEGAL QUESTIONS
(Continued from page 30)
ery occurs, the conveyance is not valid
and binding. Recording, however, is
evidence of, and creates a presumption
of, delivery. While this presumption
is rebuttable, it is so strong and per­
suasive that only clear, satisfactory
and convincing proof that there was
no delivery will defeat the presump­
tion. There are numerous Iowa Su­
preme Court decisions supporting this
view.

39

INVESTMENTS

The Hroden I
Should

ISoml
1*1uu

for

the Term

Insofar as Governments Are Concerned, Advice Is
to Stick Close to Shore and Take No Chances
By RAYMOND TRIGGER
Investment Analyst
New York City
NHAPPY must be the plight of
many a commercial banker to­
day. His first consideration, as
always, is the safety of the funds en­
trusted to his care by his depositors.
But, if his deposits are at, or close to
an all-time high, that responsibility
is all the greater. Next, he has to con­
sider the welfare of his workers. None
knows better than the commercial
banker that living costs have risen
and that bank employes have fam­
ilies and want to eat the same as any­
one else. Still, where is the money
to come from to pay the wages the
banker would like to pay?
Incidentally, the prudent banker
will hesitate to permit his bank to
become under-staffed or, worse, in­
competently staffed. There is not only
the question of inefficient service;
there is also the added possibility of
error and loss when a bank is inade­
quately and incompetently manned.
The easy way out is to let costs rise,
come what may. But what comes of
it is an unreasonably low return to
shareholders of the bank — a some­
times forgotten or ignored group.
Additionally, surplus cannot be built
up as rapidly as it should for the pro­
tection of depositors. Again, unless
earnings are reasonably good, how can
a bank get additional capital? And,
there are always voices raised insist­
ing that the capital funds of the coun­
try’s commercial banks are less than
they should be in relation to the bank’s
deposits. One way of swelling earn­
ings is to make border-line loans at
as high a rate of interest as the traf­
fic will bear. The examiners will
have something unpalatable .to say
about such expedients and, of course,
all commercial bankers are being told,
in and out of season, not to make any
but the most prudent and productive
loans lest more fuel be added to the
inflationary fire now raging.

U


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Federal Reserve Bank of St. Louis

be after the initial appropriation has
evaporated, or even whether or no
further contributions to European re­
covery will be authorized; nor is it
possible to guess how much the armed
forces will be asking for a few months
hence; and, again, whether or no the
Congress will be receptive to further
outlays for defense; nor, assuming a
change in the national administration
in November, whether or no the new
administration will rely on the discov­
ery of a new crisis every few weeks
as standard procedure, all involving
additional powers and more money;
In any case, though, commercial nor, finally, whether or no a differ­
loans are probably about as high as ent set of money managers will choose
they should be, with some of the to remain indefinitely wedded to a 2 V2
country’s leading banks reporting to­ per cent long-term borrowing rate by
tals not matched for many years. Ac­ the government.
cordingly, the management of the in­
Plan for Near Term
vestment portfolio assumes increasing
Accordingly, the prudent managers
importance. The monetary authorities of banks’ investment portfolios will
have been nibbling away at inflation plan only for the near term; i. e.,
for the past two years until recently, through the remainder of 1948. Here,
when a change of heart has become happily, he has a pretty well charted
apparent along with larger prepared­ course laid out for him. Practically
ness outlays.
everyone whose opinion is worth lis­
No long term forecasting is feasible, tening to and who carries any weight
since it is impossible to even guess in Washington is publicly committed
what the requirements of ERP will to maintaining long 2% per cent gov-

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.

INVESTM ENT COUNSEL
Individuals, Institutions, Trust Accounts and Estates

RICHARD R. ROLLINS, INC.
Representing

SHERIDAN - FARW ELL & MORRISON,

In c .

IN V E S T M E N T COUNSELLORS
E IG H T - SO UTH M IC H IG A N A V EN U E

C h ic a g o 3
Ask for our booklet, “ M o n e y M anagem ent”

Des Moines Office
405 Bankers Trust Building
Nort hwest ern ltanker, May,

1948

40

Investments

ernments at or above par. The ques­
tions have been raised as to whether
or not the authorities will succeed in
their aim or, indeed, whether or not
they can. Too much psychology en­
ters into this problem to admit of a
hard and fast conclusion, but it can
be allowed that the federal debt is
unwieldy as to its composition and
that it is too big for the reserve to
buy in under existing law. The im­
portant point is, however, that even
those who assert that a 2V2 per cent
floor will not and. indeed, cannot be
sustained indefinitely, do not expect
any crack in that floor this year. For

short-term planning, then, the 2Vz per
cent base can be accepted as a major
premise.
At first blush, then, purchase of
long-term governments appears ex­
tremely attractive on the theory that
they might go up and can’t go down
much, at least right away. The the­
ory, however, is not fool-proof. In
the first place, a modest premium over
par would have to be paid in current
markets. Secondly, the money man­
agers can be most confidently counted
upon to supply almost endless amounts
of bonds if the market tried seriously
to rise. When one is almost certainly

A Complete Investment Service
Now Available to Institutions
and Investors in the
Des Moines Area
W ith the opening of our new office in the Des Moines
Club B uilding at 810 Locust Street, we are now able
to offer institutions and investors a com plete broker­
age and underwriting service.
Some 45,000 miles of private wires, linking our 97
offices, assure promptness in obtaining quotations and
in executing orders to buy or sell on any of the prin­
cipal exchanges or over-the-counter.
In addition, our large and com petent Research D e­
partment w ill he glad to supply you with the facts
about securities that you may need to reach an in­
vestment decision. There is no charge.

^ e sincerely desire to he helpful to the entire com­
munity and our manager, M r. Michael D. D earth,
and his associates will he glad to discuss your invest­
ment problems at your convenience.

M e r r ill L y n c h , P ie r c e , F en n er & B ea n e
Underivriters and Distributors of Investment Securities
Brokers in Securities and Commodities

810 LOCUST STREET

70 PINE STREET

DES M O IN E S 9

N E W YORK 5

Offices in

N orthw estern

B a n ke r, M a y ,


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

1948

95

Cities

debarred from making a trading prof­
it, why take any trading risk, however
small?
Finally, although the principle of
the peg undoubtedly will be observed,
it is quite within the realm of possi­
bilities that an occasional “penalty”
price will be named by the Reserve.
That is, should the authorities decide
that the commercial banks are selling
too heavily, the Reserve’s buying price
could be lowered abruptly to 99V2, or
even 99, without abandoning the pegin-principle idea. In such an event, of
course, the buyer of longs for a short
swing profit would run into a most
painful loss, for a half-point or a
point loss in capital would wipe out
a good many months’ interest.
Thus, insofar as governments are
concerned, the counsel is to stick close
to shore and take no chances.

The Corporate Market
The general corporate market offers
no great promise over near-by months.
Prospective new issues bulk large and,
generally speaking, they will have to
be priced attractively to be success­
fully marketed. The institutional buy­
er has the whip hand at present and
demands an interesting “concession”
from the market as determined by the
price levels of comparable seasoned
issues. Over the course of time, the
constant emission of new bonds at
concessions exerts a downward pres­
sure on the prices of outstanding obli­
gations.
Frequently, however, there will be
opportunities to make shrewd port­
folio shifts. When it is determined
that a new issue measures up in every
way to an outstanding issue, but is
priced at a concession in order to
ensure prompt distribution, the port­
folio manager need not hesitate to
make the switch, provided always that
he is not thereby downgrading the
portfolio or lenghtening average ma­
turities. He shouldn’t expect his new
purchase to move up much in the
market, but he will have a slightly
better yield for his trouble.
Nonetheless, the need for higher
portfolio earnings cannot be entirely
subordinated to prudence. As ob­
served in an earlier paragraph, it is
up to the investment man to contrib­
ute everything possible to alleviating
his bank’s problems. In order to do
so, he will probably be inclined to
look outside the government field. He
will find little that appeals among cor­
porates. Elsewhere, there appear to
be more promising opportunities.
Over the past decade or so commer­
cial banks have largely disposed of
their holdings of municipals for per­
fectly obvious and sound reasons. The
time may be at hand, however, to

Investments
start building up the relative amount
of municipals in the average portfolio.

Municipals
Until the last year, the market price
of municipals included a fat premium
for tax shelter, a matter ordinarily of
only minor interest to a commei’cial
bank. That has been substantially
corrected by the market’s anticipation
of lower taxes. Today’s prices for a
long list of entirely acceptable taxexempts are realistic and the yields
therefrom stack up competitively with
those obtainable from other high-class
bonds.
There is, to be sure, a fairly large
volume of prospective municipals that
may come to market this year. On
the other hand, all the truly out-size
state issues to pay veterans’ bonuses
have been sold. Also, despite the half
dozen really large emissions of the
past few months, the steady retire­
ment of outstanding obligations and
the inability or unwillingness to un­
dertake large scale improvements has
resulted in a much smaller total of
outstanding municipals than was the
case in the mid '30s.
Many municipalities would like to
repair existing facilities and to have
new ones, but they are deterred for
one or more of several reasons. Labor
and material costs may have risen to
such an extent that the original au­
thorization would not do the job to­
day. Borrowing costs have risen to
such an extent that it may not be
possible to raise the money within the
interest limits fixed by the voters
when they authorized the bonds. Thus,
there should not be anything ap­
proaching an unwieldy flood of new
municipals over the remainder of this
year. Should defense and prepared­
ness be stepped up notably by the
federal government, priorities and re­
strictions. just as in wartime, will
require municipalities to shelve their

projected borrowings and buildings.
At the same time, if the present
trend toward a stronger armed force
persists, the federal government may
be obliged to raise taxes, thus indi­
rectly strengthening the exempt mar­
ket.
The municipal market has evolved
in another direction that increases the
appeal of exempts. Although the
grand total of outstanding municipals
is under the levels of a few years
ago, there are today many more “quot­
able” issues in which there are always
ready markets. The big state issues

41

and a dozen or more major city bonds
have good markets and are regularly
quoted in the financial pages. Thus
the buyer of municipals need not sac­
rifice any significant amount of mar­
ketability. A good municipal could
also be sold, of course, but a prompt,
firm quotation is much better than a
negotiated transaction perhaps requir­
ing several days to consummate and,
sometimes, a painful price concession.
Even though the municipal market
may be considered to have fallen back
to a realistic level, the really prime
credits, backed by unlimited taxing

We are pleased to announce
the opening of a sales office at

109 SOUTH SEVENTEENTH STREET
OMAHA
M r. W

il b u r

2, N E B R A S K A

M. F

ullaw ay,

M anager

Paine , W ebber, Jackson & Curtis
ESTABLISHED 1879
M em b ers N ew

Y o rk S to ck E x c h a n g e and

S to ck

O th e r P r in c ip a l

a n d C o m m o d ity E x c h a n g e s

CHICAGO

BOSTON

NEW YORK

T e le p h o n e

J a ckson

It89S

IN V E ST M E N T
SE C U R ITIE S
Public Utility

MUNICIPALandCORPORATE
SECURITIES

Industrial
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Underwriters and Distributors

M unicipal

A.C.ALLYNandc o m p a n y
Incorporated

Wheelock &Cummins, Inc.
200 Equitable Bldg.
Phone 4-7159


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Federal Reserve Bank of St. Louis

Des Moines, Iowa
A.T.T. DM 184

100 W e s t M on roe S tre e t, C h ic a g o
N ew Y o r k
O m aha

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

B o sto n
K a n s a s C ity

N orthw estern

M in n ea p o lis
M olin e

B a n ke r, M a y ,

1948

42

Investments

M errill 1,1/nell Opens Oltire

IN V E S T M E N T OFFICE — With Michael D. Dearth as manager, the brokerage
and investment firm of Merrill Lynch, Pierce, Fenner & Beane opened its new
office last month in Des Moines. A number of out-of-town associates of the firm
were in attendance. Pictured above, from left to right, are Joseph Henican,
partner, New York City; Byron Webster, partner, Chicago; Mr. Dearth; and
R. V . K . Nichol, manager of the Chicago office.

power and other safeguards, do not
provide exceptionally large yields. It
is in the field of tax-exempt revenue
bonds that careful searchers for safe­
ty, marketability and income will be

most richly rewarded. The effort in­
volved is rather greater, to be sure,
but worth it.
For concrete examples, and these
are only examples and not specific

INFORM ED ACTION IS THE K E Y TO S U C C E S S F U L INVESTING

'llieTaxation Factorin ¡Investing
Tax exem p tion in bon ds is a feature o f varying
value to different investors. T o som e it is a
luxury; to others, a necessity. T h e p rob lem is
to obtain the exact degree o f tax exem ption
which fits the individual incom e. T h e large
investor m ust pay so high a tax rate that tax
exem p t b o n d s may yield the same or a better
net return than taxable b on d s paying a m uch
higher interest rate. O n the other hand, the
investor o f m oderate in com e m ight be paying
fo r a value he co u ld n ot use in buying any,
o r to o large a p rop ortion of, tax exem pts.

Taxables or Tax Exempts?
A vailable w ith ou t o b lig a tion is a clear,
HALSEY, STUART & CO. In c .
123 S. La Salle Street, Chicago 90 , Illinois
Gentlemen: Please send me, without cost
or obligation, "Tax Charts” for Investors
and for Banks and Other Corporations.
N a m e ——

----------------- ... - ........ — -— _

understandable fold er with tabulations, based
u p on the R evenu e A ct o f 1 9 4 8 , to assist in
determ ining w h ich type o f b o n d is m ore
profitable fo r investors; also available is a
chart helpfu l to banks and oth er corp oration s
with taxable in com es in brackets ranging
from under $ 5,0 0 0 to ov er $ 5 0 , 0 0 0 .

Address ---------------------------------—

— ——

I Use this request fo r m — a t no cost.
State _

C ity -

H A L S E Y , S T U A R T &. CO. I n c .
N orthw estern

B a n ke r, M a y ,

Missing
“A husband like yours must have
been hard to find.”
“He still is when I want him.”

D ie b o ld
i

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c

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r

p

o

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a

t

1948

e

d

N ow includes

York Vaults—McClintock Alarms
Canton 2, Ohio
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Federal Reserve Bank of St. Louis

recommendations, there are the Chi­
cago Transits, now substantially lower
in price than when issued, and Wash­
ington Toll Bridge Authority’s new is­
sue of 3% per cent bonds, success­
fully marketed in March of this year.
Among the older, fully seasoned is­
sues having excellent marketability
are bonds of the Port of New York
Authority, those of the Pennsylvania
Turnpike and other well-known au­
thorities. These all vary in quality
and yield, but are at least worth con­
sidering. Finally, although not an
exempt, World Bank bonds have a
market both on the New York Stock
Exchange and over counter. These
bonds are at substantial discounts (al­
though somewhat higher than when
attention was first directed to them in
these columns) and retain all the
unusual aspects then outlined. Addi­
tionally, something new has been
added. The European Recovery Plan
so far overshadows the relatively mod­
est activities of the World Bank that
the latter may find its lending field
severely circumscribed and it will not
be until the World Bank has extended
itself from a lender of, say a half bil­
lion to around two and one-half bil­
lions, that any important element of
risk will be discernible. All the fore­
going is intended merely to support
the contention that there are interest­
ing, and perhaps profitable outlets for
investible funds that, along with oth­
ers, deserve investigation.—The End.

C H IC A G O , OES M O IN ES
and ST. PAUL

Investments

Open Investment Office
The nationwide investment firm of
Paine, Webber, Jackson & Curtis
opened an office in Omaha last month,
with Wilbur M. Fullaway head of the
office. The office will be at 109 South
17th Street, a ground floor location in
the Medical Arts Building.
Mr. Fullaway will handle the sale of

DEAR EDITOR
(Continued from page 15)
your reaction? It must liave been very
favorable.
“ Another thing which I like very much
in the N o r t h w e s t e r n B a n k e r and which
makes it separate and apart from the usual
banking magazines is your Editorial Page,
which is exceptionally good in the February
edition. You personalize your magazine more
than most of the editors do, and I think you
are quite right, and I believe it will not only
make friends, but it will be a constructive
builder for you.
“ My congratulations especially upon the
last two paragraphs of your first editorial,
emphasizing the fact that for the last 12
or 15 years the Government has been the

43

greatest competitor of the banking business.
You hit this nail with both hands. Most
every day people come into this institution
and request services, stating boldly and
openly that they carry all of their savings
in the Postal Savings Bank where they do
not get any services to speak of, and then
when I try to be courteous about the matter
and point out this fact, they do not seem to
understand it any more than they understand
a paragraph in your second editorial: that
our national debt and not our increased bank
loans is causing our inflation trend. You
also make another good point—that the
banks can be counted upon to be conserva­
tive in their local credit situation. But
banking as it is presently constituted, if we
do not have another war, which now looks

W IL B U R M. F U L L A W A Y
Opens Omaha Investment Office

investment securities to individuals,
banks and institutions and provide
brokerage service to such accounts.
For the past 11 years he has been
associated with the Central Republic
Company of Chicago in Omaha, except
for 31 months service with the Air
Force during World War I I . He
served in England with the 8th and
9th Air Forces and was returned to
inactive duty with the rank of Lieu­
tenant Colonel.
Mr. Fullaway is a native Nebraskan,
spent two years in Lincoln, one and
a half years in Sioux City and the
rest of his business career has been
spent in Omaha continuously since
1920.

A m e r ic a n E x p r e s s T r a v e le r s C h e q u e s
O ffe r You
Only American Express Travelers Cheques offer so many
plus values that cement your patrons’ good will to your bank.
Y o u r cu stom ers can use their
A m e r i c a n E x p r e s s T r a v e le r s
C h eq u es just a b o u t a n y w h e re in
the w o r ld , w h e re v e r sh ips sail,
p lan es fly o r A m e r ic a can travel.
A n e d u c a tio n a l c a m p a ig n a m o n g
h otels, tra n sp o rta tio n c o m p a ­
nies, fillin g stations, restaurants,
g ift sh op s, d e p a rtm en t stores,
etc., em ph asizes that A m e r ic a n
E x p ressT rav elers C h eq u es can be
a ccep ted w ith o u t fear o f loss.

BANKERS YOU KNOW
(Continued from page 25)
He has both Golden and Labrador
retrievers, and participates in field
trials in the general area around L in ­
coln. H is other h ob by, amateur p h o ­
tography, has been used to good ad­
vantage m any tim es, for he has se­
cured m any unique pictures.
His
political affiliation is R epublican and
lie is a m em ber of the Catholic
Church.
W h e n you try to keep up with
George H olm es as he leads his busy
life, you soon learn that he has dis­
covered the spice that gives h im such
an adm irable zest for living.


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

3

Y o u r cu stom ers d o n o t h a ve to
cash A m e r ic a n E xpress T ravelers
C h e q u e s b e f o r e u s in g th em —
they can sp en d th em just lik e
cash.
I f A m e r ic a n E xpress T ravelers
C h eq u es are lost o r stolen y o u r
c u s to m e r s g e t th e ir r e fu n d
p r o m p tly — in fo r e ig n c o u n tries
as w e ll as in the U n ite d States.
A n A m e r ic a n E xpress T ravelers
C h e q u e is a "m e m b e r s h ip c a r d ”
in th e fo r e m o s t tra vel o r g a n iz a ­
t io n , w it h o f f ic e s a n d c o r r e ­
sp o n d en ts t h r o u g h o u t the w o r ld ,
w h e re tra velers fin d m an y h e lp ­
fu l fin a n cia l an d tra vel services.

A m e r ic a n E xpress T ra velers C h eq u es
u p h o ld y o u r b a n k ’ s re p u ta tio n fo r
the best p o s s ib le serv ice.

,,WMW ÏOUr Customers—Sell

American Express
■“ *

'"d
e
lr
known —most

readily accepted
N orthw estern

B a n ke r, M a y ,

1948

Investments

44

v e r y p r o b a b le , is g o i n g to h a v e a f ig h t o n it s

is

hands

o c c a s io n s .

to

h o ld

it s

p la c e

in

th e

su n ,

so

to

sp e a k , a n d i t w ill b e t h r o u g h th e g o o d m e ­

g r a te fu l
“I

d iu m s lik e th e N o r t h w e s t e r n B a n k e r t h a t

1

w e w ill b e a b le to h o ld ou r r i g h t f u l p o s i t io n .”

your

A. R. Furnish, Vice Presi­
dent, Louisville Trust Co.,
and Editor, Kentucky Bank­
er, Louisville, Kentucky

fo r

not

d id

r e fe r r in g

th e

m any

good

m any

it !

to im p ly

th is

You
am

it e m

th a t

w ith o u t

p u b lis h

su ch

a

( T r a n s l a t i o n w ith a p o lo g i e s to D o n Q u i x o t e .)
H e r e is h o w

w a s p a r t ic u la r ly in t e r e s t e d in th e A n ­

n u a l B o n d a n d I n v e s t m e n t S u r v e y .”

C. R. Bennett, J. M. Bain #•
Company, Minneapolis.

“ T h a n k y o u f o r s e n d in g m e a n o t ic e a b o u t

B a n k e r w a s n a t io n w id e , b u t m o re r e c e n tly
w e h a v e re c e iv e d p r o o f t h a t A m e r i c a ’ s le a d ­
i n g r e g io n a l b a n k i n g p u b lic a t io n is r e a d b y

B anker
e n v ió

De Puy

fro m
and

“ The

D ir e c t o r

F i n a n c e ,”

w ho

un

N orth w estern

de

c o m p la c e

e je m p la r
que
el

en

de

de

a n u n c ia r le

e ste

el

S e m a n a r io ,

e n c o n tr a r lo

in t e r c a m b io

of
w as

g u sto so

e s ta

p r e s a r le la s e g u r id a d

con

in t e r e ­

su

p u b li ­

o c a s ió n

para

ex­

de su m a s d is t in g u id a

c o n s id e r a s io n .
M a d r i d , 11

de F e b r e r o

de

1 9 4 8 , F lo r i d a -

b la n c a , 3
A f t e r l i n g u i s t ic e x p e r t s at th e D e s M o in e s
fe w

E conom y

de

se

E n e sp e ra d e su g r a t e r e s p u e s ta .

a le t t e r w a s p la c e d on th e d e sk o f P u b lis h e r
S p a in ’ s

y

sa n te a cu erd e
c a c ió n .

P u b lic

C lif fo r d

T he School

D ir e c t o r

a g r a d e c ié n d o le

a n d h is s m a lle r f r ie n d s e x c lu d e d . L a s t m o n th

A p ril N orth w estern

Sr.

Rogelio de Madariaga

W e k n e w th e f a m e o f th e N o r t h w e s t e r n

th e s t o r y on th e S c h o o l o f B a n k i n g in y o u r

w h en

Banker:

SALUDA

1

a

aprovecho

m a n y p e o p le in f o r e i g n c o u n t r ie s , U n c le J o e

"Cover to Cover"

E l D i r e c t o r ’ s le t t e r r e a d

re c e iv e d b y th e N o r t h w e s t e r n

a r tic le s

"Buenas Dias, Señores"

Ba n k e r .

f o r w a r d i n g a c o p y o f h is d e p a r t m e n t ’ s “ S e m ­

c e r ta in y o u m u s t

Herbert V. Prochnow, Direc­
tor, School of Banking, Uni­
versity of Wisconsin, Madi­
son, Wisconsin, and Vice
President, F i r s t National
Bank, Chicago.

in it .
“I

on

h a v e a n u m b e r o f c o v e r -t o -c o v e r r e a d e r s .”

o f th e N o r t h w e s t e r n B a n k e r , a n d e n jo y e d
r e a d in g

to

seen

g o o d m a g a z in e t h a t I

"Many Good Articles"
m u ch

not m ean

have

“ I h a d th e g o o d f o r t u n e to re c e iv e a c o p y
very

h e lp f u ln e s s

in a r o f P o l i t i c a l E c o n o m y f o u n d e d in 1 8 9 3 .”

tr u s t y o u

w o u ld

your

L ib r a r y

pored

m in u t e s , th e y

tr a n s la t io n

(th is

ov er th e le t t e r

handed

u s th e

t im e w ith

fo r

a

fo llo w i n g

a p o lo g ie s

to

no

on e) :

GREETINGS
the p resid en t o f the N o r t h w e s t e r n
B anker :
To

I

ta k e

p le a s u r e

m it t a n c e

of

Semanario,
find

it

c a t io n

W o w we can help
from foreign business

and

in

copy
I

t e lli n g
of

w o u ld

in t e r e s t in g ,

to

you

t h is
th a n k

send

th e

re­

p u b li c a t io n ,

us

you
your

if

you

p u b li­

in e x c h a n g e .

W a i t i n g y o u r g r a t e f u l r e p ly .

Rogelio de Madariaga
H a p p ily

our correspondents p rofit

a

ta k e s a d v a n t a g e o f t h is o c c a sio n

to e x p r e s s to

you

h is

( E d it o r ’ s N o t e :

Semanario—

e s te e m e d

rega rd s.

N ow w e c a n ’ t re a d th e

i t ’ s a ll in

S p a n is h !)

"Informative Article"
“ The

w e .s te r n

in g

1 9 4 7 issu e o f y o u r N orth B a n k e r c o n t a in e d a v e r y in t e r e s t ­

M arch

and

i n f o r m a t iv e

a r t ic le u n d e r

t h e t it le

Remittances to foreign lands, letters o f credit

o f ‘ H o w B a n k s A r e I n v e s t i n g T h e ir F u n d s .’

— used by both buyers and sellers to finance

m is s io n

“ S in c e

a
on

s p e c ia l

c o m m itte e

C o u n try

Bank

of

th e

Com ­

O p e r a t io n s

is

p la n n in g a s tu d y o f th e in v e s tm e n t p o lic ie s

business— as well as other foreign transactions
may be profitable to your bank if properly

o f s m a lle r b a n k s , a s o f J u n e 3 0 , 1 9 4 8 , I f e e l
c e r ta in
th e m .

t h is

stu d y

w ill

prove

h e lp f u l

to

W o u l d it b e p o s s ib le f o r m e to o b ta in

developed and handled. W e shall be pleased

e ith e r a c o p y o f t h is a r t ic le or a n o th e r c o p y

to discuss this matter to show you how such

George R. Amy, Secretary
Country Bank Operations
C om m ission, A m erica n
Bankers Association, New
York, New York

business may benefit every one concerned.
Banks are cordially invited to make use o f

Distributing Tax Tables

all o f our facilities.

FOREIGN

o f th is is s u e o f y o u r p u b l i c a t i o n ? ”

DEPARTM ENT

Harris Trust and Savings Tank
Organized as N. W. Harris & Co. 1882

• Incorporated 1907

115 W est M o n r o e Street, C h ica g o 9 0
Member Federal Deposit Insurance Corporation

Manufacturers Trust Company, New
York, is distributing in limited quan­
tity copies of its new 1948 Income Tax
Withholding Chart Book.
This book contains a series of charts
covering standard payroll periods and
shows the amount of Federal income
tax to be withheld from salaries or
wage payments made after May 1,
1948.

Up to Date
"What’s your definition of a wolf?”
“A modern dry cleaner—he works
fast and leaves no ring.”
N orthw estern

B a n ke r, M a y ,


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

1948

45

I N

S U

R A

N

C E

Fife Enso roneo Es En
.4 Fuvornb te Position
With Our Economy Stabilized at a Higher Level,
Volume of Life Insurance Will Attain Greater Increases
By DONALD B. WOODWARD
Second Vice President
Mutual Life Insurance Company
of New York
insurance seems to be in a peculiarly
favorable position. It has shown re­
markable vitality during declines in
general business. Chart 1 shows for
ordinary life insurance new business

F ULL employment, booming busi­
ness, rapidly rising prices — these
features sketch in a few words the
kind of economy in which we now
live.
What does this situation mean to
life insurance in general? In the first
place, if business continues at a high
level, heavy employment will be main­
tained. We know that if as many
people are employed at as good wages
and salaries as last year, there will be
a lot of business to do. If prices con­
tinue rising there will be more busi­
ness because there will be more insur­
ance programs which need adjustment
to a new level of prices. And. even
if prices cease climbing, there are still
many, many programs which have not
yet caught up with the new price level.

this tendency to increase throughout
most of a business cycle. The line,
representing new business, is the aver­
age for the last five complete business
cycles. Incidentally, that carries back
to 1921 and is the earliest date for
which monthly figures are available.
The vertical marker represents the
peak month for general business, and
the plottings at each end of the line
represent the trough at the beginning
and end of the business cycle. This
line shows how new business moves,
on the average, during the same
months business in general is increas­
ing, and then during the months it is
decreasing. In other words, general
business would rise from the starting
point at the left to a peak at the ver­
tical marker, and then decline steadily
to another bottom at the right end.

which need review and additions to
maintain the old standards.

In Favorable Position
On the other hand, should there he
some decline in business, ordinary life

Did y o u kn ow that this company has specialized
in Bank Insurance since 1919— that it has the in&ide
v ie w on Bank Insurance problems? Consult
us freely at any time,
F IR S T

N A T IO N A L


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

BANK

B U I L D IN G

.

C H IC A G O

But not ordinary new business. It
shows a general upward trend through­
out. It moves upward while business
is gaining, and continues to increase
even after business reaches its peak
and begins to decline. Then there is
a mild decline in insurance new busi­
ness, but not enough to carry back
even to the midpoint of the previous
upswing. And then, while general
business conditions are still deterio­
rating, ordinary new business turns
about and starts climbing again. As
a result, at the very time when the
economy in general reaches its bot­
tom. new business is already at the
peak of the previous boom, and ready
to go on from there.
Now it is imperative to take account
of a word of warning. This chart
portrays the average situation; it does

not represent any particular cycle in
the past, and presumably will not cor­
respond to any particular cycle in the
future. It represents what seems to
be the average tendency. We might

Scarborough & Company
In su ran ce C o u n selors
3, IL L IN O IS

•

STATE

to B a n k s

4325

N orthw estern

B a n ke r, M a y ,

1948

46

Insurance

call it historical and statistical evi­
dence of the vitality inherent in life
insurance. It shows growth in both
good times and times that aren’t so
good.
Another warning is that this chart is
not evidence that business conditions
are expected to be bad this year, or

FORTY YEARS
»( Progress
W e are proud of our record
in the Insurance field and of

to be good. But it is very interesting
evidence that there must be lots of
opportunities for good underwriters at
all times.

Record for Terminations
Pursuing the same approach of put­
ting ourselves on guard by finding
out what we might expect if business
turned down, let us look at total vol­
untary terminations. Chart 2 is con­
structed in the same manner as Chart
1 and shows the average record during
the business cycle for total lapses and
surrenders on ordinary insurance re-

B a n k e rs :
We specialize in
writing

our Banker Representatives.

Automobile

W e write a complete line of

Fire - Windstorm - Automo­

and

bile & P!ate Glass Insurance

Fire Insurance
★

WESTERS MUTUAL
FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

“*Mutual Insurance Is American
Insurance99

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
MY. Pleasant, Iowa
E. A. HAYES,

President

O. T. WILSON,
Esta blished

Secretary

192 9

M U H o n -D o ila r

Hail
EU DORAVO,

Damage
k tVlis south i

Can this happen
in your a rea ?

se
v e re h a ils to rm
s U ^ V iin f lic t in g V
severe
Thuraday,
J
A rk a n sa s c W ™
a t a m illio n ^

The answer is obviously
YES. You can help pre­
damage ^ surance firms^sUma^
vent disastrous loss from
d o lla rs . -*- * y
hail by selling a guaranteed-price-pered 50 p e r c e n t o t ^
bushel policy.
■were damage^
knocl

A few good Hail Insurance Agencies open
Now is the time to get acquainted with the largest exclu­
sive hail insurance company operating in Iowa and
Missouri.
W r i t e t o d a y f o r c o m p le t e in fo r m a tio n

SQUARE DEAL INS. CO
( Mutual}

Des Moines, Iowa

N o rthw estern

Ba n ker, M a y ,


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

1948

gardless of the form the surrender
takes. Lapses and surrenders are, of
course, related to insurance in force
subject to lapse or surrender. What
we have is the average pattern of an
over-all voluntary termination ratio
during the same months that business
conditions are improving and then de­
clining.
In this case the results are not star­
tling, but they are nevertheless im­
portant. As you would expect, just as
soon as business begins a recovery,
lapses and surrenders decrease, and
continue diminishing until business
reaches a peak. Then, as soon as
business declines, lapses and surren­
ders increase, and continue up until
the decline in business has run its full
course. The reaction is sharp and
definite.
An important point in this respect
is that this line representing the aver­
age is a close approximation to the
picture for each cycle. In sharp dis­
tinction to new business, the record
for terminations is rather remarkable
for its consistency. It happens in the
same way, with almost the same tim­
ing, to almost the same degree in cycle
after cycle. Clearly here is another
case where we can profit from past
experience. If business declines you
can be sure some of your policyholders
will want to give up their insurance.
You will have to fight the tendency
for voluntary terminations. It be­
comes more necessary than ever to
write good quality business, to write
it in a way which will make it stick,
and to keep the policyholder inter­
ested so he will want to make it stick.
In this connection I think it is worth
noting that the increases in lanses
and surrenders we experienced in 1946
and 1947 are not associated with the
business cycle in the sense we have
been examining in Chart 2. Rather
that increase of the last two years
represents an inevitable change from
the abnormally low levels which were
reached during the war. At that time
savings were very high and termina­
tions reached record low levels. We
have been moving back to more nor­
mal performance, and the increased
terminations resulting from poorer
business conditions are still some­
where in the future.

At Higher Level
There is another and different as­
pect of the outlook for new business
this year, and for several years to
come, which is important to note.
Chart 3 shows annual data for ordi­
nary new business from the period
preceding World War I through the
present. The three shaded bands on
the chart point out a fact of consider­
able significance—that after a war new
business totals are at a permanently

Insurance
higher level than any achieved before
the war. No year prior to World War
I reached a level equal to any year
subsequent to the war. The poorest
year since 1917-18 was higher than the
best year before that break. The war
marked division between two eras; the
whole level of business jumped up.
Though this chart does not go back
that far, the same sharp and perma­
nent step up occurred at the time of
the Civil War. So far as we can de­
termine, no year prior to the Civil
War even approached the lowest year
after the war.
As you can see, the two years since
World War II have far exceeded the
best year prior to the war. Again we
seem to have moved up to a new high­
er plateau, and I am persuaded that in
the future new business will maintain
a dollar volume considerably above a
normal prewar level. It is not likely
that the inevitable minor swings in
business will affect this development.
—The End.

Open Office in Germany
A branch of the Chase National
Bank was opened last month in Heidel­
berg, Germany, for the convenience of
Americans there, according to word
received at the head office of the bank
in New York City. Established with
the approval of authorities in Wash­
ington and the U. S. Military Govern­
ment in Germany, the branch will offer
limited banking facilities to U. S. mili­
tary and authorized personnel, includ­
ing those of allied countries, in the
American zone.
The branch at Heidelberg, with
quarters at 1 Friedrich Ebert Allee, is
the third Chase location in Germany,
two other offices having been opened
at Frankfurt and Stuttgart within the
past four months. W. H. Promann is
in charge of the Heidelberg branch.

American Express Company has sent
Vox Pop overseas for the first series
of broadcasts ever originated in Eu­
rope by a U. S. sponsored half-hour
radio network show, transported as a
complete unit, according to Ralph T.
Reed, president of the company.
Parks Johnson and Warren Hull,
Vox Pop principals, and three mem­
bers of their staff with two ABC engi­
neers, arrived in Paris via air last
month to record a program of inter­
views with English-speaking French-

men and American tourists concerning
tourist reactions and facilities, and
then went to London for a similar
broadcast.

Declare Dividend
Directors of California Bank at Los
Angeles have declared the regular
quarterly dividend of 50 cent per
share, payable May 1st to shareholders
of record April 19th.

■I

Ir

K

in

J É

"Jr JPKm

??Do Bankers Need Vacations??
WE SAY THEY DO—and our
experience with our many
banker friends in the past bears
us out.
YOU HAVEN'T HAD A BUSINESSPLEASURE VACATION TILL YOU'VE
JOINED PNL'S AGENCY FORCE ON ITS
ANNUAL ALL-EXPENSES-PAID CON­
VENTION.

Cut yourself in on substantial
commissions, and let our agents
do the work and qualify you at
the same time for a

47

lils w
Des Moines, Iowa

BANKER
AGENTS
WANTED
A strong mutual company in its 56th
year

offers

liberal

agency

contracts

covering—

•

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•

T O RN AD O IN S U R A N C E

FREE VACATION — STANLEY HOTEL

•

TOW N D W ELL IN G IN S U R A N C E

ESTES PARK, COLORADO
September 1-5

•

H A IL IN SU RAN CE
on G r o w i n g C r o p s
Surplus to Policyholders
$4,023,979.32

W rite us and w e'll do the rest

Policyholder’s National Lite Ins. Co.

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W r ite

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C A SU A LT Y CO VERAGES

Grid Star Joins Bank
Ray Evans, All-American football
selection for 1947, recently joined the
staff of City National Bank and Trust
Company of Kansas City. Mr. Evans,
who was graduated from the Business
School of the University of Kansas this
year, has decided to make banking his
career. His home is in Kansas City,
Kansas.
Mr. Evans now is taking a “basic
training course” and will work in all
inside capacities in the bank. He now
is on the night shift in the transit
department.
Mr. Evans was in the Air Corps for
three years, enlisting as a private and
being discharged a first lieutenant.

Vox Pop Goes Abroad
As a promotion f o r Travelers
Cheques and travel to Europe, the

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

What Is an
‘ Essential Coverage?

It's protection against
exposures of business
men, employers and
property owners
which might mean
bankruptcy should a
jury return a verdict
against you.

Full Coverage Automobile • Workmen's
Compensation •
Manufacturers Public
Liability
• Contractors Public Liability
Elevator Public Liability
•
Farmers
Liability
•
Owners, Landlords, and
Tenants Public Liability • Residence and
Outside Theft
•
Storekeeper Burglary
and Robbery • Comprehensive Personal
Liability..................''Allied Mutual Pays"

ALLI ED M U T U A L
CASUALTY COMPANY
Harold S. Evans, President
H ubbell Build ing

Des M oines 7, Io w a
N orthw estern

B a n k e r , M a y , 1948

48

S ta tem en t o f C on d ition

as a t A p r i l 12, 1948

F ir s t N a tio n a l B an k o f Minneapolis
RESOURCES

d i r e c t o r s

Cash and Due from Banks
. $100,804,187.08
United States Government Securities ; 124,538,461.04
Other Bonds and Securities
20,519,350.96
Loans and Discounts
. 100,723,315.83
Accrued Interest and Accounts Receivable
811.048.27
Customers’ Acceptance Liability
638,291.47
Bank Premises and Furniture and Fixtures
189.081.74
Other Real Estate (For Future
Development of Banking Premises) .
5d3,753.75
Other Assets
. . . . .
114,572.70
Total Resources . . . .
. $348,892,062.84
LIABILITIES

Capital Stock . . . . .
. $ 6,000,000.00
Surplus
. . . . . .
11,000,000.00
Undivided Profits
. . . .
3,202,873.17
General Reserve for Contingencies
1,832,735.71
Reserve for Interest, Expenses, Taxes, etc.
3,309,976.79
Acceptances and Letters of Credit .
638,291.47
Bills Payable
. . . . .
13,500,000.00
Federal Funds Purchased ;
;
5,000,000.00
Other Liabilities
. . . .
255,728.23
Demand Deposits
. $253,907,726.01
Time Deposits .
.
50,244,731.46
304.152,457.47
Total Liabilities . . . .
. $348,892,062.84

Henry E. Atwood, President
Atherton Bean,

Executive Vice President,
International Milling Co.
Russell H. Bennett, Treasurer,
Meriden Iron Co.
Daniel F. Bull, President,
The Cream of Wheat Corp.
J. G. Bvam, Vice President
John Cowles, President,
Minneapolis Star and Tribune Co.
Donald D. Davis, President,
Minnesota and Ontario Paper Co.
Paul V . Eames, President,
Shevlin-McCloud Lumber Co.
Harry J. Harwick, Chairman,
Mayo Association, Rochester, Minn.
John H. Hauschild, Chairman of
the Board, Chas. W. Sexton Co.
Horace M . Hill, President,
Janney, Semple, Hill & Co.
VV. L. Huff, Executive Vice President,
Minneapolis-Honeywell Regulator Co.
C. T . Jaffray, Chairman of the Board,
First Bank Stock Corporation
John H. M acM illan, Jr., President
Cargill, Inc.
Sumner T . M cKnight, President,
S. T. McKnight Co.
Howard I. M cM illan, President,
Osborne-McMillan Elevator Co.
W . G. Northup, President,
North Star Woolen Mill Co.
S. G. Palmer, Retired
Leslie N. Perrin, President,
General Mills, Inc.
A. F. Pillsbury, Director,
Pillsbury Mills, Inc.
H . R. Weesner, Chairman of the
Board The Wabash Screen Door Co.
F. B. Wells, President,
F. H. Peavey & Co.
C. J. Winton, Jr., President,
Winton Lumber Co.
Sheldon V . W ood, President and
General Manager, Minneapolis
Electric Steel Castings Co.
Edgar F. Zelle, President,
Jefferson Transportation Co.

,

,

United States Government obligations and other securities carried at $76,773,500.00 in the foregoing statement are
deposited to secure public funds and for other purposes required by law.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N orthw estern

B a n ke r, M a y ,


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

1948

•

AFFILIATED W ITH FIRST BANK STOCK CORPORATION

49

•
Hilf

M in n e s o t a

fi

N EW S

1

JOHN CARLANDER
President
Faribault

Begins 60th Banking Year
J. Daniel Mahoney, whose career
as a Duluth bank employe and officer
ranks among the longest in Minnesota
and the nation, reported for work as
usual last month to begin his 60th year
of active banking service.
The 79-year-old financial leader rose
from messenger to vice president in
the city’s banking fraternity.
At his desk in the First and Ameri­
can National Bank, where he is a vice
president, Mr. Mahoney paused in his
duties to reflect on the “ups and
downs” of Duluth’s financial history
since he arrived there April 10, 1889.
In this financial house, one of the
early banks in Duluth, Mr. Mahoney
rose to bookkeeper and later served in
receiving, paying, collection and dis­
count teller positions. He assisted in
organizing the bank’s saving depart­
ment and in 1914 was promoted to
assistant cashier, a post he held until
1921, when he was appointed cashier.
On September 28, 1926, after the
death of W. G. Hegart, the bank’s
president, Mr. Mahoney was named
vice president, a position he held when
the institution was consolidated with
the First National Bank in 1929 to
become the First and American Na­
tional Bank. He has been vice presi­
dent of the latter bank since the
merger.

Celebrates 40th Year
The Randall State Bank of Randall,
Minnesota, celebrated its 40th year the
first of last month.
Cecil A. Pogatchnik, a former serv­
iceman, has been appointed cashier.
Other officers of the State Bank are:
F. A. Schwanke, president, and M. J.
Schwanke, vice president.

Federal Reserve Conference
More than 1,000 bank executives
from six states gathered in Minneap­
olis for the eighth Federal Reserve
Bank conference of Ninth District
bankers last month at Hotel Nicollet.
Congressman Walter H. Judd of
Minnesota, Allan B. Kline, president
of the American Farm Bureau Federa­
tion, and Roy Wenzlick, editor and


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Federal Reserve Bank of St. Louis

ROBERT E. PYE
Secretary
Minneapolis

Hardwick and is a son of Henry Rolfs,
vice president of the bank. J. W.
Stamman is president. The younger
Rolfs formerly served as assistant
cashier of the Hardwick State Bank
for five years prior to his enlistment
m.
in the army in 1944, and after his re­
%
Aä> '9ÊÊ p 1 turn in June, 1946, he became em­
- J
: ployed in the same capacity by the
Jasper State Bank at Jasper.
c\f i /

S¡ÍC£;
■Bft

publisher of the Real Estate Analyst,
were this year’s featured speakers.
An added feature, “Quizzing the
Fed,” saw John Ford, WTCN news
commentator, in the role of quiz mas­
ter as he put questions submitted by
the visiting bankers to members of
the bank’s staff.
Also scheduled to speak were Paul
W. McCracken, director of research,
and Franklin Parsons, agricultural
economist, of the Reserve Bank staff.
Each bank in the district—Minne­
sota, South Dakota, North Dakota,
Montana, northern and western Wis­
consin and upper Michigan—was in­
vited to send a representative to the
conference, the eighth such meeting
since 1938.
The business program, preceded by
registration and luncheon, was fol­
lowed by a reception and dinner. In
the evening the bankers were guests
at the Ice Follies of 1948.

Fillmore County Officers
The Fillmore County Bankers Asso­
ciation dined in the Minnesota Room
of the Hotel Chatfield, Chatfield, Min­
nesota, last month, after which the
members then adjourned to the Root
River State Bank where their meeting
was held. Officers elected were: G. A.
Haven, president, Root River State
Bank, president; George C. Gullickson,
cashier, First National Bank, Spring
Valley, vice president; W. A. Garratt,
cashier, Farmers and Merchants State
Bank, Preston, secretary, and Elvin
Humble, president, First National
Bank. Rushford, treasurer.

Buys Hardwick Stock
Lester Rolfs last month purchased
the stock in the Hardwick State Bank
of Hardwick, Minnesota, owned by
G. P. Bauman and took over cashier
duties left vacant by Mr. Bauman’s
resignation.
Mr. Bauman had purchased stock
in the bank only last winter from
E. A. Grunklee, but recently an infec­
tion developed, and Mr. Bauman was
forced to resign from his duties and
enter Mayo Clinic at Rochester for
treatment of the ailment.
Mr. Rolfs is a lifetime resident of

Promoted at Dawson
At a recent meeting of the board of
directors of the Northwestern State
Bank at Dawson, Minnesota, Wendell
Anderson was advanced from teller to
assistant cashier.
At the same time the application of
Elwood Thronrud was accepted for the
position of teller under the G. I. train­
ing bill, according to President O. S.
Knudsen.

Takes Plane Trip
Elsie Lee, assistant cashier at the
Fairmont National Bank of Fairmont,
Minnesota, accompanied by her neph­
ew, Robert J. Lee, went by plane last
month to California to spend two
weeks vacation on the west coast and
visit friends.

Bank Party
More than 50 staff members and
their families of the First National
Bank at Winona, Minnesota, gathered
together in an auto caravan early last
month to drive to Rochester for a
Sunday matinee showing of the Ice
Cycles of 1948. The entire bank group
and their families made the trip to­
gether for an all-day affair.

New Reserve Member
The Federal Reserve Bank of Minne­
apolis announces that the Lake County
Bank of St. Ignatius, Montana, has
been admitted to membership in the
Federal Reserve System. N. M. Stub­
blefield is president of the Lake Coun­
ty Bank.

John F. Hynes
John F. Hynes, 84, Carlton county
pioneer and former president of the
First National Bank of Carlton, Min­
nesota, died at his home recently,
after an illness of two weeks. He re­
turned to Carlton in 1919 to become
president of the newly consolidated
First National Bank and Farmers and
Merchants State Bank. This position
he held until 1943 when he retired.

Preston Bank Change
At a special meeting of the directors
of the Farmers & Merchants State
Bank at Preston, Minnesota, A. G.
Olson was elected president of the
N orthw estern

B a n k e r, M a y ,

1948

50

Minnesota News

bank, succeeding the late Senator
Henry A. Larson. Previously Mr. Ol­
son and A. H. Langum were vice presi­
dents of the bank.
Francis E. (Bill) Ibach was hired
as teller at the bank, succeeding David
Klein, who has resigned.

Change Bank Name
The name of the Becker County
National Bank was changed to the
First National Bank of Detroit Lakes,
Minnesota, last month.
There was no change of stockhold­
ers, officers or employes.
The change of name is merely for
the purpose of convenience.
The bank recently completed a re­
modeling and redecorating project,

making the building one of the most
modern and up-to-date in the north­
west.
Officers of the institution are as
follows:
Dr. F. J. Rogstad, president; M. J.
Reilly and A. T. Thompson, vice pres­
idents; Alden Pearson, cashier; Kent
S. Rogstad, W. B. Schwantz and John
O. Pearson, assistant cashiers.

Organize County Association
At a meeting of the bankers of Rock
county held in Beaver Creek, Minne­
sota, the Rock County Bankers Asso­
ciation was organized. Ed Hansen,
cashier, Farmers State Bank of Kanaranzi, was named as president of the
group and F. E. Hansen, cashier, Ken­

ALL OF THE SERVICES

neth State Bank of Kenneth, is sec­
retary. Every bank in the county was
represented at the meeting.

In Grey Eagle Bank
Don Peschel took up his duties as
assistant cashier at the State Bank of
Grey Eagle, Minnesota, recently. He
has been attending the St. Thomas
College in St. Paul.

To Construct New Bank
The First National Bank in Roches­
ter, Minnesota, after 80 years of busi­
ness in its present location, is to have
a new home in 1949 if a modern mil­
lion-dollar building is completed ac­
cording to schedule. It will be erected
on the site of the old library building.
M. M. Hayden, bank president, says
the expansion in space will be reflected
immediately in expansion of service
to the community. One of the new
features will be a time payment de­
partment which will remain open after
the usual banking hours.

In Correspondent Division

A CORRESPONDENT SEEKS

Joseph F. Ringland, Northwestern
National Bank, of Minneapolis, presi­
dent, has announced recent changes in

. . .AND MORE
A wide range of services is found here
by correspondent banks. The collec­
tion service is fast and competent. A
wide experience in foreign banking is
offered, with connections in almost
every accessible country. A complete
service in United States Government
and Municipal bonds; deposit facili­
ties and safekeeping. In addition
there are other opportunities for outof-town banks to assist their customers
through our banking, trust and bond
departments.
w.

FRED
CONRAD
R ejoins Correspondent D ivision

TH E N O R T H E R N
TRUST COM PAN Y
50 SOUTH L A SA L L E STRE ET, CH ICAGO 90, ILLIN O IS
M em ber Federal Deposit Insurance Corporation

N orthw estern

B a n ke r, M a y ,


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Federal Reserve Bank of St. Louis

1948

the bank’s correspondent bank de­
partment.
Fred W. Conrad, vice president, is
rejoining the bank’s and bankers’ de­
partment which he formerly served
from 1943-1945.
Morrow Peyton, assistant cashier, is
leaving the correspondent bank de­
partment to become associated with
one of the bank’s commercial loan
divisions.

Minnesota News

T HE thumb-print method has been

proposed by the Minnesota Bank­
ers Association as a means of stem­
ming a wave of bad checks in Minne­
sota.
The association contacted its 652
member banks regarding the plan and
soon received numerous responses ap­
proving the proposal, Robert E. Pye,
secretary, reported.
Under the proposal, a stranger
would be asked to put his thumb print
alongside his indorsement when at­
tempting to cash a check.
Three Minnesota trade associations,
the state Creamery and Hardware as­
sociations and Minneapolis Food Re­
tailers association, have indicated in­
terest in the plan.
The bankers’ proposal has the back­
ing of the Minnesota state crime bu­
reau, which estimates that bad checks
cost Minneapolis business at least
$100,000 a year.
Henry J. Kaar has been elected
auditor of Midway National Bank of
St. Paul by the bank’s board of direc­
tors, according to announcement by
A. F. Ritt, president.

Total deposits in Minneapolis area
banks are down more than $100,000,000
from the start of 1948, according to
figures as to their condition released
by 14 national banks, nine state banks
and one savings bank in Minneapolis
and environs.
As of April 12, total deposits were
$991,712,223, a decline of $105,953,329
from the $1,097,665,552 on December
31, 1947.
The figures also disclosed that
Northwestern National Rank of Min­
neapolis had regained first place in
total deposits from First National
Bank of Minneapolis. Northwestern
led with $334,778,781 in deposits
against First’s $304,152,457.
Six of the 23 commercial banks
showed gains in deposits since Decem­
ber 31st. They are Fourth Northwest­
ern, First Bloomington-Fake and Cen­
tral Northwestern among the national

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Federal Reserve Bank of St. Louis

banks, and First Edina, First Robbinsdale and Richfield State banks.
Funeral services for David K. Pat­
terson, 58, St. Paul banker who died
last month, were conducted in St. Paul.
Mr. Patterson was an assistant vice
president of the First National Bank
of St. Paul. He was a past president
of the St. Paul chapter of the Amer­
ican Institute of Banking.
M. J. Crowe, assistant secretary and
trust officer of Northwestern National
Bank of Minneapolis, was named in­
dustrial and business division co-chair­
man for the 1948 Hennepin county
(Minneapolis) financial drive of the
American Cancer Society. James A.
Davis of First National Bank of Min­
neapolis is treasurer of the Hennepin
county district of the society. Gordon
M. Malen, assistant advertising man­
ager of First National, is serving as
public relations chairman of the drive.

St. Patrick’s Day, 1949, will have a
different meaning at the Northwestern
National Bank of Minneapolis, for two
Irishmen, Michael and Cornelius Sul­
livan, 19 and 18 respectively, are there
to see to it the wearing of the green
is not forgotten.
All the way from County Kerry,
Killarney, Ireland, these two lads
have come to study banking the North­
western National way. And studying
they are too! Starting at the bottom,
doing messenger work, learning to run
adding machines, and with the pluck
of the Irish, these two boys hope to
make a mark for themselves. Nor
are they homesick, though the farthest
they have been from home previously
is to the next county. It’s the sham­
rock they are missin’ though, they say.
“Ah, but what a beautiful flower! And
it’s all over, it is!” People go a little
fast over here, say the boys, and New
York “you can have.” They landed
there and the size of the city and the
number of people awed them. Min­
neapolis, however, seems just right.

51

And, of course, they hope to see neigh­
boring states too.
The boys reside in Minneapolis with
their aunt, Miss Mary Mahoney, a
native of Ireland herself.
Bou C. McCabe, a director of Mid­
land National Bank of Minneapolis
and chairman of the board of the Na­
tional Tax Equality Association, ad­
dressed the Minneapolis Kiwanis club
on “Tax Equality” recently. Mr. Mc­
Cabe was given an opportunity to
reply to remarks in an earlier talk
before the club by M. W. Thatcher,
general manager of the Farmers Union
Grain Terminal Association, huge St.
Paul cooperative.
Tollef Jacobson, 78, founder and
former president of the Farmers Na­
tional Bank of Alexandria, Minnesota,
died recently at his home, 2018 Queen
Avenue S., Minneapolis. Services
were conducted in Minneapolis.

A “beautify Richfield” contest has
been originated in the Minneapolis
suburb by Richfield State Bank and
Trust Company, of which S. F. Jerpbak is president. Details of the plan
were worked out by the Richfield
Garden club.
Three Minneapolis bankers have
been named to important posts with
the Minneapolis Community Chest and
Council of Social Agencies.
Fowry Moore, associated with Farm­
ers and Mechanics Savings Bank of
Minneapolis, was elected a vice presi­
dent. He will be chairman of the
budget and distribution committee, of
which he has been a member since
1945.
Clarence R. Chaney, vice chairman
of the Northwestern National Bank of
Minneapolis, and Arthur H. Quay,
treasurer of First National Bank of
Minneapolis, were re-elected to the
board of directors.

Mr. Chaney is vice president and
chairman of office personnel and manN orthw esfern

B a n ke r, M a y ,

1948

52

Minnesota News

agement committee of the
agency. Mr. Quay is treasurer.

civic

Arnulf Ueland, president of Midland

National Bank of Minneapolis, has
been named treasurer of the Minne­
apolis Children’s Crusade. The organ­
ization is seeking funds for supple­
mental feeding of children overseas.
Employes of Farmers and Mechanics
Savings Bank of Minneapolis have or­
ganized a “25-20” club for bank per­
sonnel with more than 20 years of
service. Eighteen employes with more
than 25 years service acted as hosts
to 20 co-workers with 20 to 25 years
service at a dinner at the Nicollet

An Intimate,
Personalized
Correspondent
Bank Service
Based on a Policy
of Cooperation
—N ot Competition
Under the direction of officials
■with years of service in this field,
assuring a knowledge of require­
ments and valuable assistance.

Public National
BANK

AND

COMPANY

OF

TRUST
NEW

E S T A B L I S H E D

YORK
1908

Main Office: 37 Broad Street
Member: New York Clearing House
Association, Federal Deposit Insurance
Corporation

hotel, Minneapolis. AVilliam Kramer,
treasurer of the bank, was elected
chairman for the coming year. Other
officers are Agnes McHugh, vice chair­
man; Herman Landquist, second vice
chairman, and Henrietta Sift'erle, sec­
retary.
Election of Clarence A. Wisby as
assistant cashier was announced by
Joseph F. Ringland, president of
Northwestern National Bank of Min­
neapolis. Mr. Wisby formerly was
assistant cashier, and later cashier, of
Fifth Northwestern National Bank of
Minneapolis.
Rustan (). Thayer, president of Fifth
Northwestern, announced that John
T. Tarasar, assistant cashier, has been
promoted to the cashier’s post vacated
by Mr. Wisby at Fifth Northwestern.
Rustan O. Thayer, president of Fifth
Northwestern National Bank of Min­
neapolis, and Donald W. Judkins of
First National Bank of Minneapolis
were among speakers at a special in­
stallment loan meeting of the Ex­
chequer club in Minneapolis.

Bank debits for 133 reporting cities
in the Ninth Federal Reverse District
totaled $2,671,933,000 for March, com­
pared with $2,478,674,000 for the same
month last year, an increase of eight
per cent, the Minneapolis Federal Re­
serve Bank reported.
For the first quarter of the year,
debits totaled $8,131,018,000 compared
with $7,078,564,000 for the same period
last year, a gain of 15 per cent.
Minnesota’s debits in March were
eight per cent over the same month
in 1947, and 16 per cent over last year
for the first quarter.
Percentage gains in other states
within the reserve district for the
month and quarter were:
Peninsular Michigan, 10 and 12;
Montana, 12 and 12; North Dakota, 5
and 15; South Dakota, 4 and 13; west­
ern Wisconsin, 11 and 10.
Election of Louis AV. Hill, Jr., of St.
Paul as a director of First Bank Stock

SPECIAL OFFER
Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next September.
MINNESOTA COMMERCIAL MEN'S ASSO CIATIO N
2550 Pillsbury Ave. So.
N o r t h w e s t e r n B a n k e r, M a y , 1948

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Federal Reserve Bank of St. Louis

Minneapolis 4, Minnesota

Corporation was announced by Au­
gustus H. Kennedy, president, follow­
ing a meeting of stockholders last
month.
A grandson of the late James .1. Hill,
pioneer builder of the Great Northern
railroad, Mr. Hill is a vice president
of the Arthur Iron Mining Company
and has served as a director of The
First National Bank of St. Paul since
1926.
H. T. Rutledge, assistant vice presi­
dent of Northwestern National Bank,
is transferring from the trust depart­
ment to the commercial department of
the bank, according to announcement
by J. F. Ringland, president. Mr. Rut­
ledge is taking charge of the bank’s
customer service division and in asso­
ciation with other officers will concern
himself with the bank’s public rela­
tions program. Mr. Ringland also an­
nounced transfer of T. AV. Pelton, as­
sistant cashier, from the bond depart­
ment to the customer service division
of the commercial department.

Among graduates of the recent Es­
tate Analysis School conducted by the
Central Hanover Bank and Trust Com­
pany of New York was Louis K.
Thompson, member of the Estate Plan­
ning staff of the First National Bank
of Minneapolis.
Of the eight selected for the Central
Hanover School, Mr. Thompson was
the only one from this section of the
country. Others were from Detroit,
Michigan; Atlanta, Georgia; Provi­
dence, Rhode Island; Bridgeport and
New Haven, Connecticut; and New
York City.
Election of Alvin T. Anderson and
Theodore O. Sather as directors of
First Bloomington Lake National
Bank was announced by Leonard R.
Oberg, vice president and cashier, fol­
lowing a meeting of stockholders.
AVilhelm Jason, assistant cashier,
Northwestern National Bank of Min­
neapolis, represented the Northwest­
ern National Bank at the recent an­
nual Industrial Relations Conference
held at the University of Minnesota.
This was the sixth in a series of In­
dustrial Relations Conferences spon­
sored by the Industrial Relations Cen­
ter of the University of Minnesota
and the Twin City Chapter of the So­
ciety for the Advancement of Man­
agement.

Bad Turn
“ How’s your wife driving these
days?
“ She took a turn for the worse yes­
terday.”

53

Statement o f Condition
A p r il 12, I 948
RESOURCES
Cash and Due from Banks..................................................................... $105,173,818-95
U. S. Government Obligations*............................................................. 124,574,171.64
Other Bonds and Securities*.................................................................
18,096,565.03
Loans and Discounts.............................................................................. 105,878,906.14
Stock in Federal Reserve Bank.............................................................
450,000.00
Customers’ Liability on Acceptances....................................................
909,518.52
Income Earned but not Collected.........................................................
707,310.91
Banking House........................................................................................
3,200,000.00
Other Resources......................................................................................
42,847.36
Total Resources................................................................................$359,033,138.55

LIABILITIES
Capital Stock...........................................................................................$ 5,000,000.00
Surplus..................................................................................................... 10,000,000.00
Undivided Profits......................................................................
2,024,894.90
Reserve for Contingencies......................................................................
4,198,873.68
Reserve for Interest, Taxes, etc.............................................................
1,145,999.68
Income Collected but not Earned.........................................................
975,071.15
Letters of Credit and Acceptances........................................................
909,518.52
Deposits................................................................................................... 334,778,780.62
( D ep o sits in c lu d e U . S . G ov ern m en t W a r L o a n A c c o u n t $ 5 , 6 6 2 ,6 3 4 -0 6 )

Total Liabilities..........................

$359,033,138.55

*United States Government and other securities carried at $53,138,404.63 are pledged
to secure U. S. Government War Loan Deposits and other public funds and trust
deposits and for other purposes as required or permitted by law.

N a t i o n a l B a n k of M i n n e a p o l i s

Minneapolis 2, Minnesota

DIRECTORS
James F. Bell

G. N elson D ayton

C h a ir m a n , C o m m itte e on
F in a n c e a n d T e c h n o lo g ic a l
P r o g r e s s , General Mills, Inc.
Benton J. Case
D ir e c to r , Janney, Semple,

The Dayton Company
Stephen P. D uffy

Hill & Company
Clarence R. Chaney

V i c e C h a ir m a n o f B o a rd ,

Northwestern National
Bank of Minneapolis
G eorge B. Clifford , Jr .
T r e a s u r e r , The Cream of
Wheat Corporation
John Crosby
D ir e c to r ,

General Mills, Inc.
T homas L. D aniels

P r e s id e n t,

P r e s id e n t,

Hall Hardware Company
John B. F aegre
Faegre and Benson,
Attorneys
F rank T. H effelfinger
C h a ir m a n o f B o a rd ,

F. H. Peavey and Co.
F. Peavey H effelfinger
E x e c u tiv e V i c e P r e s id e n t,

F. H. Peavey and Co.
Clarence E. H ill

P r e s id e n t,

C h a ir m a n o f B o a rd ,

Archer-Daniels-Midland
Company*

Northwestern National
Bank of Minneapolis


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Federal Reserve Bank of St. Louis

F rank P. L eslie
V i c e P r e s id e n t a n d
T rea su rer,

The John Leslie Paper Co.
R obert F. Pack
C h a ir m a n o f B o a rd ,

Northern States Power
Company

John S. Pillsbury
C h a ir m a n o f B o a rd ,

Pillsbury Mills, Inc.
Joseph F. R ingland
P r e s id e n t, Northwestern
National Bank of
Minneapolis
L ucian S. Strong
P r e s id e n t a n d T r e a s u r e r ,

The Strong Scott
Manufacturing Co.

D. J. Strouse
P r e s id e n t, Twin City Rapid
Transit Company
Harold W. Sweatt
P r e s id en t,

Minneapolis-Honeywell
Regulator Company
Harold H. T earse
V ic e P r e s id e n t a n d G en era l
M an ager,

Searle Grain Company
J. Cameron T homson
P r e s id e n t,

Northwest Bancorporation
V alentine W urtele
P r e s id e n t,

Minnesota Linseed Oil
Paint Company

Member Federal Deposit Insurance Corporation
Affiliated with Northwest Bancorporation

N o r t h w e s t e r n B a n k e r, M a y , 1948

54

Minnesota News

HOW MACHINES SAVE
TIME AND MONEY
(Continued from page 23)
count and head our ledger and state­
ment sheets on the Addressograph.
Formerly we headed our statement
sheets on an old addressing machine
we had, but the bookkeepers had to
type the headings on the ledger sheets.
Now the file of plates is so convenient­
ly arranged that they can head the
ledger sheets with the plate much
more quickly than by typewriter.
“We like very much the method of
making up customers’ statements,
which we now use as a result of our
Addressograph. Plates for active ac­

Z)L BANK

counts are tabbed so that the machine
will select them and make new state­
ment sheets each month. Those cus­
tomers have their statements made up
each month, accordingly. The general
run of accounts who only write two,
three or four checks per month, have
their plates tabbed so that the new
statement sheets will be made up only
quarterly. We divided these accounts
into three portions, so that about onethird of this class of accounts receives
their statements each month during
the quarter, that is, one-third of them
get their statements in January, onethird in February, one-third in March,
etc. Those accounts which are active
infrequently, have their plates tabbed,

a t the

CARL L. FRED RICKSEN
President
M ARK A. W IL S O N
V ice President
W IL L IA M G. NELSON
V ice President
W IL L IA M C. SCHENK
Asst. V. Pres, and Cashier
C LIFFORD L. ADAM S
Asst. V ice President
JOHN S. H A V E R
Asst. Cashier
JAMES L. SM ITH
Asst. Cashier and Auditor
K IN L E Y W. SM ITH
Asst. Cashier

YARD S

Time and Money Saving
You save in time and money when
you send your Sioux City live stock,
hay and grain drafts to the Live
Stock National Bank. Since 1895 our
correspondents have found this true,
hence the steadily growing list of
customers who use this bank for their
correspondent needs in Sioux City.

ST AN L E Y W. EVANS
Field Representative

4 SIOUX CITY
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

so that a new statement sheet will be
made up only once a year. With all
plates tabbed in this manner, we run
the entire list of depositors’ accounts
through the Addressograph e a c h
month, and the machine selects those
plates for which new statement sheets
are to be made that particular month.
The machine does it very quickly and
automatically, and we are saving con­
siderable money by not making up as
many customers’ statements as here­
tofore.
“We also use the Addressograph to
head our service charge slips each
month, which effects a considerable
saving of pen and ink work. We use
it to address envelopes to our entire
list of customers for advertising, mail­
ing pieces, etc. We send our pub­
lished statement of condition to each
checking account customer in January
of each year, and addressed 5,000 en­
velopes in a little over two hours’ time
on the machine this year. Formerly
we had high school girls come in and
type the envelopes for this mailing
list, and it took three girls about four
days’ time to address them.
“We feel there are other uses for the
Addressograph, which we will dis­
cover as we go along, but we have only
had the machine four months and have
not discovered its full possibilities up
to this time.
“ One more piece of equipment we
have found has effected some savings
for us is the night depository. We
found it difficult to get very many of
our customers to use it at first, but
through repeated efforts we built up
the number who take advantage of it.
Its greatest saving to us is that by
using it we receive twelve or fifteen
deposits each morning which contain
large amounts of currency and coin.
Our tellers open these night deposi­
tory bags before the doors open at
9:00 a. m., and thus are enabled to
have behind them some of the deposits
requiring the most time to handle.
This has improved the service we are
able to give customers during the
hours our doors are open.
“We have made no study of what
these machines have saved in cost of
operation, for we have no cost account­
ing system in our bank. Neverthe­
less, we are confident that we are
dollars ahead and also that we have
been able to give better service to
our customers by installation of this
equipment.”
(This concludes the first of a series
of articles on “How Machines Save
Time and Money for Banks.” The
second installment, citing the expe­
riences of other hankers, will appear
in the June issue of the N o r t h w e s t e r n
B a n k e r .)

N orthw estern

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Federal Reserve Bank of St. Louis

1948

55

S o u th D a k o ta

N EW S
A. E. DAHL
President
Rapid City

Heads Redfield C. of C.
Harold Haynes, cashier of the Spink
County Bank at Redfield, South Da­
kota, was elected president of the
Redfield Chamber of Commerce at a
meeting of the board of directors.
Elected vice president of the group
was Phillip Eckstrand. Secretarytreasurer is J. L. Long.

Elected Cashier
Charles J. Bennett, formerly em­
ployed by the Northwest Security Na­
tional Bank of Sioux Falls, South
Dakota, has been elected cashier of
the Exchange Bank of Lennox, South
Dakota, and Robert J. Fillaus has
been elevated from teller to assistant
cashier. The other officers remain
the same, with Oscar C. Burke as presi­
dent and Lloyd A. Dalziel as vice presi­
dent.

CARL E. BAHMEIER. JR.
Secretary
Huron

days, however, compared with 26 in
1947.
The aggregate debits in the 1948 pe­
riod (in millions) was $188,813, com­
pared with $180,976 in 1947. This was
104 per cent as much as in the earlier
period. Figures for the 17 cities, with
percentage March, 1948, of March, 1947,
were as follows:
City
Mar. ’48 Mar. ’47 Pet.
Aberdeen ............................... 26,375
22,794 116
Belle Fourche ....................... 3,871
3,798 102
Brookings ............................... 5,515
5,121 108
Chamberlain ......................... 2,018
1,775 114
Deadwood ............................... 2,234
2,350
95
1,629
1,200 136
Dell Rapids ......................
Huron ..................................... 10,605
10,985
97
Lead ......................................... 1,543
1,510 102
Madison ................................. 4,490
4,301 104
Milbank ................................... 2,601
2,506 104
Mitchell ................................... 13,818
13,235 104
Mobndge ............................... 2,449
2,285 107
Pierre ..................................... 3,480
2,958 118
Rapid City ............................. 16,712
14,120 118
Sioux Falls ........................... 71,404
70,575 101
Watertown ............................. 10,251
11,883
86
Yankton ................................. 9,818
9,580 102

Retires From Land Bank

of Milbank, South Dakota, last month.
In honor of the occasion he was pre­
sented a bouquet of flowers by em­
ployes of the bank, and he was con­
gratulated by many friends.
For the past sixty-three years Mr.
Benedict has given full time service
to the institution, with the exception
of an occasional vacation. He goes
to work bright and early each day and
usually spends until five or six o’clock
in the afternoon at his work.

Heads Hurley Bank
Enoch G. Breen, who has served as
cashier of the Hurley State Bank of
Hurley, South Dakota, since its or­
ganization, was elected to the presi­
dency by the directors at a meeting.
This position became vacant by the
recent death of R. L. Rayburn.
W. A. Breen, who has been assistant
cashier, was advanced to the position
of cashier.
S io u x F a lls N e w s
ILLIAM C. HOLLISTER, 84,
pioneer banker and realtor of
Sioux Falls, died at his home recently
after a long illness. Coming to Sioux
Falls in 1882 from Rochton, Illinois,
his birthplace, he entered the employ­
ment of the old First National Bank.
In 1891 he was associated with his
brother, Fred G. Hollister, in founding
the State Banking and Trust Company.
He was a brother of Fred G. Hollister,
chairman of the board of directors
of the Northwest Security National
Bank.

W

The retirement of Harry S. Dzie, as­
sociate regional manager of the Fed­
Moves to Artesian
eral Land Bank of Omaha, Nebraska,
Boyd Hopkins, who formerly was became effective last month. He will
employed by the bank at Wall, South now devote his time to his own inter­
Dakota, started work recently at the ests at Woonsocket.
Live Stock National Bank in Artesian.
Mr. Dzie served more than 17 years
Mr. Hopkins has a wife and small son with co-operative land bank system,
Charles J. Bennett, credit depart­
and they will move to Artesian as most of this time in South Dakota, and ment employe-"hf the Northwest Se­
soon as living quarters can be ar­ won for himself a reputation during curity National Bank with which he
ranged for.
this time as a tireless and understand­ had been connected for 13 years, left
ing worker for the land bank and its last month to accept a position as cash­
thousands of farmer-borrowers. He ier of the Exchange Bank at Lennox.
Remodeling Estelline Bank
also made many friends throughout He was a director of the Junior Cham­
Remodeling work on the Farmers the state.
ber of Commerce here.
State Bank at Estelline, South Dakota,
Since July, 1942, he has been asso­
has not been completed but is nearing
ciate regional manager, in charge of
John P. McQuillen, vice president
the final stages. Workmen are com­
field relationships with National Farm and trust officer of the Northwest Se­
pleting beautiful custom made service
Loan Associations in southeast South curity National Bank, was elected Es­
counters and private offices in the
Dakota. He first became associated teemed Lecturing Knight of the local
bank proper and the interior decora­
with the Federal Land Rank in Janu­ Elks lodge.
tor is expected to finish his work very
ary, 1931, as a fieldman. Later he
shortly. The exterior of the bank is
served in the appraisal and loan repay­
William E. Perrenoud, cashier of the
scheduled to be remodeled also at an
ment departments.
early date.
First National Bank & Trust Com­
Before his connection with the Land pany, was installed as treasurer of
Bank, from 1924 to 1931, he was asso­ Sioux Falls lodge No. 262, Benevolent
Debits Increase
ciated with the South Dakota State and Protective Order of Elks. He is
Debits to banks in 17 South Dakota Banking Department at Pierre. For also a director of the local Rotary club.
cities were a higher aggregate amount 16 years before 1924 he conducted his
in March, 1948, than in the same month own abstracting, real estate and in­
Lawrence J. Larson, cashier of the
of 1947, it was reported by the Ninth surance business in Woonsocket.
National Bank of South Dakota, was
District Federal Reserve Bank. The
among 12 northwest bankers who at­
increase obtained in all but three of 63 Years in Bank
tended a short course in central bank­
the 17 cities.
Effner Benedict celebrated his sixty- ing at the Federal Reserve Bank of
March this year had 27 working third year in the First National Bank
Minneapolis. The session was fourth

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Federal Reserve Bank of St. Louis

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

1948

56

South Dakota News

in a series of such courses being given
for member bankers in the Ninth Fed­
eral Reserve district.

NEWS AND VIEWS
(Continued from page 24)
what they believe to be the best in­
terests of our economy. The fiscal
economy of this country is now on a
delicate balance and small adjustments
in the money supply have effect on in­
terest rates and security prices. This
power of the Federal Reserve System
to purchase Government bonds, which
will substantially increase the money
supply, is a source of great protection
to the banks and to the country’s econ­
omy as a whole against large-scale
withdrawals of bank deposits by the
public for hoarding purposes.”

Dr. S. A. Donahoe, director of the
National Bank of South Dakota, and
proprietor of Don Hill farm south of
here, was re-elected president of the
Sioux Empire Shorthorn club at its an­
nual meeting.
C. A. Christ opherson, chairman of
the board of the Union Savings Bank
and former South Dakota congress­
man, was honored by Sioux Falls lodge
No. 9, Independent Order of Odd Fel­
lows, when he was presented with the
50-year diamond-set honorable veter­
an’s jewel. He became the fourth man
to receive that honor from the local
lodge. He joined the Odd Fellows here
January 31, 1898.

Robert J. Richardson, president of
the Federal Home Loan Bank of Des
Moines, held the 15th annual stock­
holders meeting last month for his 235
member savings, building and loan as­
sociations located in Iowa, Minnesota,
Missouri, North and South Dakota.
Robert E. Lee Hill, Columbia, Mis­
souri, chairman of the bank’s board of
directors and secretary manager of
the Missouri Bankers’ Association was
the presiding officer.
Featured speakers were J. Alston

Mr. Christopherson is also the oldest
living past exalted ruler of the Sioux
Falls Elks lodge.
He was elected chairman of a citi­
zens’ committee opposing a $250,000
bond issue for proposed expansions to
the municipal light and power plant.

Nineteen
In

19

o f the principal cities in

Central and South America, The
Royal Bank o f Canada operates
well established branches. Their
facilities are available to corres­
pondent banks wishing to serve
their clients better in this impor­
tant

area.

Market

information,

credit reports, assistance in arrang­
ing

trade

connections,

banking service.
quiries

from

We

general

Adams, Washington, D. C., member of
the Home Loan Bank board; Everett
Smith, New York, N. Y., fiscal agent
for Home Loan banks; and Morton
Bodfish, Chicago, Illinois, executive

vice president of the United States
Savings and Loan League.
A social hour and banquet preceded
the evening, meeting.
Rudolph S. Hecht, chairman of the
board of International House, New
Orleans, has sent us an invitation to
become a non-resident member of that
very fine organization.
This is a non-profit group “dedicated
to world peace, trade and understand­
ing.” Doesn’t it seem strange when

the majority of the people throughout
the world want just what this motto
stands for, that we still seem to be
getting farther away from its real ac­
complishment?
Every married man knows that the
women are the “controlling power” at
all times, but in the affairs of business
they are also extremely potent as
recent figures indicate that women
own 40 per cent of the 30,000 U. S.
homes, and they also own 48 per cent
of the stock in United States railroads,
and furthermore they own 70 per cent
of the nation’s private wealth.
All of which indicates that we had
better continue to be pretty nice to the
“fair queens.”
Henry R. Hayes, in his Notes on
Business and Politics, says in part:

“What concerns us domestically in
business and the capital markets?
Isn’t it because politicians still control
domestic, social and economic condi­
tions?
“We have lived for some 15 years in
a period when thrift was discouraged,
business spanked, p h o n y money
created, riotous spending of the peo­
ple’s money obtained by ruinous taxes,
class pitted against class, a great war,
and withal one hell of a time.”

invite en­

correspondents

re­

quiring specialized service in this
area.
Established in Central and South

Joseph W. Seacrest, co-publisher of
the Nebraska State Journal, of Lin­
coln, was appointed a director of the
Omaha branch of the Kansas City
Federal Reserve Bank. His term will
run to January 1, 1950.

America for over 33 years.
HEAD OFFICE — MONTREAL

N ew York A gency —
68 William St., N ew York 5, N. Y .

THE ROYAL BANK OF CANADA
ASSETS

Nort hwest ern Banker, M ay, 19 48


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Federal Reserve Bank of St. Louis

EXCEED

$2,000,000,000

Rep. Jesse P. Wolcott, chairman of
the House Banking Committee, is
planning to introduce a bill to facili­
tate the conversion of national banks
to state-chartered banks on a recipro­
cal arrangement.
The proposed bill would give nation­
al banks the same freedom to convert
to state charters that state laws give
for conversion of state banks to na­
tional charters.

\o i* lli lla k o ia

H B
S IR
1

X E W S
f e

f e

s

F. A. FOLEY
President
Rolla

C. C. WATTAM
Secretary
Fargo

1
JBB
1

First Wisconsin Promotion

A

million in deposits will be made. This
deposit
figure excludes the present
H.
D. Crosby, president of The First
National Bank and Trust Company war loan account being carried and
of Fargo, North Dakota, announces correspondent accounts.
County associations then will pro­
the election of William F. Graves as
vice president and director. Mr. Graves mote the sale of bonds in their respec­
was born in Jamestown, North Da­ tive communities and surrounding ter­
kota, in 1903. His father is Harold ritory.
T. Graves, a former president of the
James River National Bank of James­ Convention Reservations
town.
In a recent bulletin from the office
Mr. Graves was educated in the of Secretary C. C. Wattam of the
grade schools and high school at North Dakota Bankers Association, it
Jamestown and after graduating at­ is urged that bankers who sent in
tended the University of Pennsyl­ tentative reservations for the joint
vania’s Wharton School of Finance Dakotas convention in the Twin Cities
and Commerce, graduating with a de­ June 11th and 12th, but as yet have
gree of Bachelor of Science in Eco­ not followed up and received hotel
nomics in 1925. During vacations he confirmation should immediately con­
worked in country banks in Stutsman tact A. F. Junge, assistant cashier,
County and was also employed in the Northwestern National Bank in Min­
James River National Bank of James­ neapolis. A1 Junge is chairman there
town. He worked for some time as of the reservation committee.
an examiner under Herbert Hallen­
berg. who was chief examiner of the
Heads Bismarck Rotary
Northwest Bancorporation, and also
Election of Fred B. Heath, president
was head of the credit department of
of the Dakota National Bank, as presi­
the Northwest Bancorporation for sev­
dent of the Bismarck, North Dakota,
eral years. He comes to Fargo from
La Crosse, Wisconsin, where he was Rotary Club w a s announced last
vice president and director of the Na­ month. He succeeds Kelly A. Simon­
son.
tional Bank of La Crosse.
Other officers named were Harry
He is married, a member of the
Presbyterian Church and the Masonic Thompson, vice president, and Roy
Lodge, and while living in La Crosse Logan, secretary-treasurer.
was a member of the La Crosse Coun­
try Club and also a member of the To Pay at Par
Wisconsin State Izaak Walton League
The check collection department of
and the La Crosse Gun Club. He was the Federal Reserve Bank of Minne­
also a director of the Chamber of apolis advises that the Commercial
Commerce of La Crosse and a member Bank of Mott, the Citizens State Bank
of the La Crosse Rotary Club.
of New England and the First State
Bank of Regent, all North Dakota
banks, will pay their checks at par,
Loan Drive in Progress
North Dakota’s quota in America’s and the names of these banks have
Security Loan Drive which began last been added to the Federal Reserve’s
month and runs until July 1st, is par list.
$17,500,000.
At a meeting in Fargo recently be­ Sanish Bank Closing
The 25-year-old Commercial State
tween officers of the North Dakota
Bankers Association and the state’s Bank in Sanish, North Dakota, has
director of War Savings Bond sales, filed for voluntary liquidation as of
it was decided the most practical way the close of business April 1st.
It is reported that after M. J. Olson,
of handling the drive, because of ex­
isting road conditions is to use the present manager of the bank, closes
formula whereby $10 000 sale of bonds out the bank’s business, that another
per month by each bank based on each institution will take its place to give

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Sanish residents bank service. Mr.
Olson has managed the bank through
the past quarter century and deposits
were over the million dollar mark at
the time of closing.

Robert A. Zentner, assistant vice
president, assumed his new duties in
the banks and bankers division of the
First Wisconsin National Bank of Mil­
waukee last month. Mr. Zentner has
held a variety of responsible positions
in the banking field since taking his

ROB E R T A. ZE N TN E R
Joins Correspondent Division

first job with the National City Bank
of New York in 1928, as a trainee in
the far eastern division. He moved
to the First Wisconsin National Bank
July 1, 1929, as a member of the util­
ity department, was transferred to
the credit department in 1932 and re­
mained there until 1937, when he be­
came a member of the banks and bank­
ers division. He was promoted to
assistant cashier in 1938. On January
1, 1940, Mr. Zentner moved to the
commercial loan department and two
years later he received the title of
assistant vice president.
“Bob,” as he is known to his friends,
received his early educational training
in Oshkosh, Wisconsin, his birthplace.
He was graduated from the University
of Wisconsin with a B.A. degree in
1928.
He has taken an active interest in
civic and community affairs in Mil­
waukee. He was director of the Chil­
dren’s Service Society for several
years, active in Community Fund
drives, and at present is on the sports
committee of the 1948 Corporation.
N orthw estern

B a n ke r, M a y ,

1948

58

For 92 Years
SOUND BANKING SERF ICE

Complete Correspondent F a c i li t ie s

N o r t h w e s t e r n B a n ke r, M a y , 1948

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Federal Reserve Bank of St. Louis

59

treasurer and manager, the position
he held at the time of his death.

N e b ra sk a

64th Anniversary

N EW S
CARL G.

Buy Harvard Bank Stock
Two Colorado bankers, Irvin A. Mergelman and Roger Eagleton of Gunni­
son, have purchased control of the
Harvard State Bank at Harvard, Ne­
braska. The sale of stock was made
by C. A. Perlenfein, president, and
Leonard F. Seiko, cashier.
Mr. Perlenfein and Mr. Seiko have
not announced their plans for the fu­
ture, although it is indicated the for­
mer hopes to settle in a different part
of the country before fall. The officer
of the institution is L. A. Robertson,
vice president. Clayton Oschner is to
remain with the bank under the new
ownership.
The new owners have had 25 years
of banking experience between them
and began their new job in the bank
last month.

Bankers Clinic Dates
Dates for the second Nebraska Bank­
ers Clinic will be July 8th, 9th and
10th, announces Carl Swanson, secre­
tary of the association. Members of
the Clinic committee met in Lincoln
recently to discuss the program. The
fee per registrant will be $20, which
will include all meals and room
charges. The Clinic will be operated
much on the same basis as last year,
but it is expected there will be ap­
proximately 250 bankers this year in­
stead of 150. the number attending the
initial school last summer.

Fairfield Anniversary
The Fairfield State Bank of Fairfield,
Nebraska, celebrated its 20th anniver­
sary last month.
With Earl Wilkins of Geneva, presi­
dent, and under the management of
Mr. and Mrs. C. V. Glenn, it has re­
tained the same officers over the twen­
ty-year period.
With steady, courteous, efficient
management, the bank has weathered
the depressions, showing a gradual
growth and now has assets of more
than a million dollars.

braska, has been named as an alternate
delegate to the biennial national con­
vention of the American Lutheran
Church at Fremont, Ohio,-next Octo­
ber 7th.
The delegates to the convention
were selected at the central district
convention in Hebron. The district
includes parishes in South Dakota,
Colorado, Kansas, Oklahoma, Missouri,
Iowa and Nebraska.

Horace C. Amos
Funeral services for Horace C.
(Mike) Amos, 69, were held in Kim­
ball, Nebraska, recently. Mr. Amos
was a prominent Kimball county bank­
er who had been a resident there for
59 years, having been born in Racine,
Wisconsin.
He left his ranching and stock rais­
ing business in 1912 to become county
clerk. Three years later he became
cashier of the Citizens State Bank of
Kimball, and after several other busi­
ness affiliations, helped organize the
Bushnell Co-operative Credit Associa­
tion in 1935, of which he was secretary-

On

On the occasion of the 64th anni­
versary of the First National Bank of
Holdrege, Nebraska, directors looked
into the records, found that two busi­
ness firms and three individuals have
had accounts since 1884, the year the
bank was opened.
Both of the firms, Norris Drug Com­
pany and Kronquest Implement Com­
pany, have been handed down from
father to son since they started doing
business with the First National.
The bank has been in its present
location during all of its existence.
It was first housed in a small frame
building. In 1886 the old building
was torn down and the brick building
which served until 1936 was put up.
In 1884 the bank had 84 accounts,
and deposits totaling $14,500. Today
there are more than 4,500 accounts,
and the deposits amount to more than
$6,000,000.

J. T. Russell Retires
J. T. Russell, who has been asso­
ciated with the First National Bank
of Fullerton, Nebraska, for the past
35 years, has announced his retirement
from active duty at the bank, though
he retains his title as president, the
stockholders at a recent meeting hav­
ing re-elected the same officers and
directors. Mr. and Mrs. Russell will
continue to live in Fullerton.
Announcement was made that James
Black, son of Executive Vice President
and Cashier E. M. Black, will become
a member of the bank personnel.

J li n c o l n —

*J U e

C a n tin & n tc d —

W here our appreciation
for Bank Correspondent
relationship is manifested
by
SER V IC E THAT SA TISFIES

(ONTINENTAL |\|aTIONAL

[W

k

LIN CO LN

Banker Named Delegate
C. E. Nelson, cashier of the Ameri­
can National Pank of Kimball, Ne­

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Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, M a y , 1948

60

Nebraska News

Brainard Man Elected
Louis Novak, cashier of the Bank of
Brainard, Brainard, Nebraska, was
elected president of the First Regional
Clearinghouse of the Nebraska Bank­
ers Association recently. This is a
bankers’ organization representing a
group of counties of eastern Nebraska.
The election took place at a meeting
in Columbus.

Meets Governor Dewey
Charles H. Boedeker, cashier of
the Murray State Bank, Murray, Ne­
braska, recently had a pleasant visit
at New York City with Governor

Thomas E. Dewey, one of the leading
contenders for the Republican nomina­
tion for President of the United States.
He found Mr. Dewey a delightful host
and one of the friendliest men to meet.

Remodel Beatrice Bank
The Beatrice National Bank of Bea­
trice, Nebraska, is undergoing exten­
sive remodeling. Construction of a
new vault was the first order of busi­
ness, the vault being 28 by 58 feet by
eight feet high. Included in the build­
ing plans is an entire new front for
the building.
When this work is completed, the

“QIoâsl io ío U l induA ÍA if a n d
ajyÂjuzuIiuÂSL maksL jua, quaii^m d
io bsL

0 &,

h&aJL

agâvîcsl

io OJUA,

mam^ aM siàpondfLnL fiimn/fau."

The First National Bank
St. Joseph, Missouri
M em b er F ed era l D ep o sit In s u r a n c e

N o r t h w e s t e r n B a n ke r, M a y , 194

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

C o rp o ra tio n

bookkeeping, proof and transit depart­
ments will be downstairs under the
present banking room. Space for an
additional 450 safety deposit boxes will
be available; five tellers’ windows will
be in operation instead of three, the
main bank room will be refloored and
additional desk space for officers will
be provided.

Leave on World Tour
Mr. and Mrs. Emil E. Placek, of
Wahoo, Nebraska, left recently for Los
Angeles and San Francisco, California,
on the first leg of their complete trip
around the world.
They left San Francisco aboard the
President Monroe and, after visiting
various points en route, will leave the
ship at Naples on June 6th. From
there Mr. and Mrs. Placek will make
a comprehensive tour of Europe. Their
visa for Czechoslovakia was to be is­
sued at San Francisco, they were ad­
vised by telegram.
They will board the Queen Elizabeth
at Southampton July 30, 1948, to com­
plete their journey to the United
States. Mr. Placek is the president of
the First National Bank, Wahoo, and
of the Bank of Prague.

New Deposit Boxes
Seventy new custom-built safe de­
posit boxes were installed in that
department of the First National
Bank of Tekamah, Nebraska, recent­
ly. Counting the new additions, there
are now about seven hundred safe
deposit boxes at the bank.

Nebraska Bond Sales Up
March sales of $18,443,369 were the
second largest mo n t h l y peacetime
bond sales in Nebraska. Of this
amount, $12.168,318, or 66 per cent,
were “ E” bonds. Nebraska bond sales
for the first quarter of 1948 were $45,125,553, which keeps Nebraska in the
top flight of states in the nation.

Nebraska News

61

Charles 1). Saunders was nominated
for director of the Omaha Public
Power District (non-political) in the
recent Nebraska primary. He was
seeking re-election to the post. He ran
second, with 10,437 votes, among the
10 candidates. Frank A. McDevitt,
Omaha insurance man, ran fourth and
also apparently was nominated.

HE board of directors of The United
States National Bank of Omaha an­
nounces the election of Casper V.
Offutt as a director to fill the vacancy
created by the death of Linn P. Camp­
bell.

T

Mr. Offutt is a director of the Car­
penter Paper Company, and is a trus­
tee of many social and charitable or­
ganizations.

Department has a long, successful rec­
ord for helping our correspondents
choose sound, profitable investments.

CASPER Y. O F FU TT
Named Director of U. S. National

Mr. Offutt has been with the bank
since 1940 and is now vice president
and trust officer in charge of the trust
department.
Mr. Offutt was born in Omaha in
1893, was graduated from Central
High School and received degrees from
Yale College and the Harvard Law
School. He was in the United States
diplomatic service in Chile, Panama
and Washington until he resumed the
practice of law in Omaha as a partner
in the firm of Wells, Martin, Lane and
Offutt where he continued until he
was elected an officer of The United
States National Bank.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA


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

When Ak-Sar-Ben held a victory
dinner marking the end of its biggest
membership campaign (the member­
ship is 13,840, an all-time record),
V. J. Skutt, insurance man, was master
of ceremonies.

a

In Kansas City
It's

CITY NATIONAL

In analyzing your bond holdings, in
making suggestions for purchases or
sales and in furnishing you with mar­
ket quotations, you’ll find the staff of
City National’s Bond Department in­
formed, capable, friendly . . . deter­
mined to "keep you posted’’ and to
do the best possible job for you,
every time, all the time.

€ m
m

tim

Resources O ver

*140,000,000.00

10TH A N D

GRAND

•

KANSAS

C I T Y K * MO .

N o r t h w e s f e r n Ba n ker, M a y , 1948

62

Nebraska News

Ray R. Ridge, senior vice president
of the Omaha National Bank, as presi­
dent of the Chamber of Commerce,

First National Bank
McCook, Nebr.
Capital ...............$100,000.00
Surplus, Profits
and Reserves .-$300,747.97
Deposits ........... $7,935,820.48
Rolland Larmon, President
H. P. Waite, Vice President
H. M. Krogh, Cashier
Max Billesbach, Asst. Cashier

J k sL

presented a Chamber resolution prais­
ing Ak-Sar-Ben’s leadership in making
the Ak-Sar-Ben and South Omaha
bridges toll-free.
Ernest Tanner of the First National
Bank of Omaha led individual mem­
ber-getters, with 208.
The H. J. Bushnell-Richard H. Mal­
lory team signed 616 members, to top
their quota. Mr. Bushnell is president
and Mr. Mallory vice president of
the United States National Bank of
Omaha. The J. E. Davidson-Robert
H. Hall team signed 1,527 members,
also over their quota. Mr. Hall, now
in the insurance business, was an
Omaha banker 20 years until recently.

(p ilM J M Ä A .

The same spirit of progress that blazed new trails into the
empty lands beyond the last frontiers, has prevailed at the
Inter-State for more than a half century. The resulting experience,
modernization and expanded facilities have made every banking
service readily available to the Inter-State's correspondents and
customers.

CONDENSED STATEMENT
At the Close of Business April 12, 1948
RESOURCES
Cash and Due from Banks............................................. $20,782,017.35
U. S. Government Securities.......................................... 14,996,001.18
Other Securities ................................................................
4,747,751.71 $40,525,770.24
Loans and Discounts........................................................................................
Stock in Federal Reserve Bank..................................................................

19,071,729.04
75,000.00
$59,672,499.28

LIABILITIES
Capital ..................................................................................$
Surplus ..................................................................................
Undivided Profits ..............................................................
Reserved for Contingencies............................................

1.250.000. 00
1.250.000. 00
1,250,513.98 $ 4,150,513.98
400,000.00

Reserved for Taxes, etc...................................................................................
Deposits ..............................................................................................................

4,055.56
55,517,929.74
$59,672,499.28

the

I nter -S tate National Bank

LIVESTOCK EXCHANGE

BLDG.

16TH.

AND

GENESEE

STS.

Other teams over their quotas in­
cluded those of W. B. Millard, Jr., V. J.
Skutt, and Robert H. Storz-John F.
Davis. Mr. Millard is vice president of
the Omaha National Bank, Mr. Davis
of the First National.
The South Omaha Savings Bank is
celebrating its sixtieth anniversary.
Clarence F. Witt, president, said the
capital structure has grown from $5,000 to $229,974.
In the beginning, deposits were $28,038 and loans $29,702. Now deposits
total $2,214,644 and loans are $1,663,720.
The Omaha-Council Bluffs Confer­
ence of Bank Auditors and Comptrol­
lers met recently at the American
Legion Club in Omaha to hear an ad­
dress by Edward F. Lyle of Kansas
City, Comptroller of the City National
Bank and Trust Company there.
Money from the Omaha area has
been flowing to the industrial areas
of the east at a rapid pace since Janu­
ary 1st. That was shown by the state­
ment of condition of Omaha banks in
response to a bank call as of April
12th.
Deposits in the nine Omaha banks
were $50,071,272 below the first-of-theyear figure. Loans were $2,341,421
less.
Other factors in the decreases, bank­
ers said, were the March drain on
banks for tax funds, the February
commodity price drop, country bank
withdrawals, and the packing house
strike. Bankers, however, were not
alarmed by the drop. They said the
flow of money east is a natural trend
in the spring buying season.
The April 12th figures, by individ­
ual banks:
Omaha Natl. $123,690,581 $26,619,979
20,138,282
First Natl.
81,433,376
14,549,632
U. S. Natl.
65,549,451
19,081,149
Live St’k Natl. 55,458,960
4,104,757
Stock Yds.Nat. 20,197,947
1,889,931
Packers Natl.
9,300,532
1,642,260
Douglas Co.Bk
8,211,888
1,208,992
North Side Bk.
5,292,423
1,686,499
S. Omaha Sav.
2,202,783
Totals

$371,337,941

$90,921,481

J. Francis McDermott, vice presi­
dent of the First National Bank of
Omaha, presided as Papal Knight, at
a speaking program which was part of

BANKS

ESought and Sold

Confidentially and with becoming dignity

BANK EM P LO Y EES P LA C ED
43 Y e a rs S a tis fa c to ry S e rv ice
Member of The Federal Deposit Insurance Corporation

N orthw estern

B a n ke r, M a y ,


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

1948

CHARLES E. WALTERS CO.
OMAHA,

NEBRASKA

63

THE M ID -W EST’S PRIN CIPA L IN D U STRY


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

Stock Yards National Bank
Omaha, Nebraska
MEMBER OF FEDERAL DEPOSIT INSURANCE CORPORATION

N o r t h w e s t e r n B a n k e r, M a y , 1948

64

Nebraska News

a civic reception in Omaha for the
Most Rev. Gerald T. Bergan, new
Archbishop of the Omaha Catholic
Archdiocese. The welcome was ar­
ranged by the Omaha Chapter of Te
Deum International. It was held in
the Creighton University Gymnasium.
Nebraskans of all faiths attended.
Rale Clark, president of the Omaha
National Bank, made one of the wel­
come addresses, in behalf of civic
groups.

Twins Association will hold its con­
vention in Omaha September 4-6.
Hayden Ahmanson, Omaha insur­
ance man, has offered dual prizes for
the best name for the local club.
E. G. Gelirmann and Max Vance
were honored recently as “Old Timers”
by the Stock Yards 400 Club at Omaha.
Both are employed by the Stock Yards
National Bank of Omaha.
Mr. and Mrs. Walter Roberts have

Named temporary chairman of a
Twins Club in the Omaha area were
Evelyn and Eleanor Dynek, 20, em­
ployes of the United States National
Bank of Omaha. The Internationa]

returned from a winter vacation at
Chandler, Arizona, where they spent
six weeks. Mr. Roberts is president
of the National Company of Omaha.
At a dinner in Omaha before the

City Auditorium appearance of Sen­
ator and Mrs. Robert Taft, J. Francis
McDermott, vice president of the First

National Bank of Omaha, representing
Governor Yal Peterson, commissioned

Senator Taft an “admiral in the Great
Nebraska Navy.” Mr. McDermott has
been a leading backer of Senator Taft
for the Republican Presidential nomi­
nation.
A long unused fireplace was un­
covered by workmen who are remodel­
ing the savings department of the
Omaha National Bank. It was found
near the old steps which led into the
department.
Bank officials said that there also
were fireplaces on the main banking
floor at one time. These were bricked
in.
The modernization of the savings
department includes new counters of
peach-colored marble and a new safe­
ty deposit vault which will have room
for 1,500 individual boxes. There are
4,700 boxes in another vault.
For returning to its owner a $100
bill, an Omaha World-Herald carrierboy, Richard E. Dragoun, 15, was re­
warded by the Omaha National Bank
with a leather billfold imprinted with
his name and containing a new $5 bill.
George A. Bussing, draft teller at the
bank, presented the lad with the wal­
let. Richard found the money at the
Omaha National.

( o m m e r c e Cooperation
IS OUTSTANDING
County seat towns over this western and southwestern area
are familiar with Commerce services. Wherever business is
done, the helpful influence of the Commerce is felt. A prized
possession of this banker's bank is a spirit of good will which
has grown out of cooperation through 83 years. Commerce
friends in every county—have helped us attain our present
prominent position, and the Commerce has in turn helped them
to prosper. You are invited to do business here . . . to join the
Commerce family.

(o m m e rc e Jr u st (o m p a i i y
rf-tiMcLà' iÜs-XsCe&d. <21

KANSAS. C IT Y ’S LARGEST
JA N K
M EM BER FEDERAL DEPOSIT
Established 1865


N o r t h w e s t e r n B a n ke r, M a y , 194B
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INSURANCE CORPORATION

Mrs. Victor Smith, widow of the
Omaha banker and newspaper man.
and her daughter, Miss Coralee Smith,
have sold their Omaha residence at
5205 Burt Street to Mrs. James A. McKamy and her father, Henry Holdrege. Mr. Smith was vice president
of the Omaha National Bank at the
time of his death.
AY. Randolph Burgess, chairman of
the executive committee of the Nation­
al City Bank of New York, and Wil­
liam C. Mulleudore, president of the
Southern California Edison Company,
have been elected members of the
board of directors of the Union Pa­
cific Railroad, which has headquarters
in Omaha.
Mr. Burgess also is chairman of the
board of another bank and director of
the International Telephone and Tele­
graph Company and several insurance
firms.
Mr. Mullendore is a director of the
Mutual Life Insurance Company, the
Edison Electrical Institute and several
other concerns.

The number of honest young Omahans in the George Washington Club.

Nebraska News

sponsored by the Omaha National
Bank, reached 100 late in March. The
club is one of only two such organiza­
tions in the nation. It was likely to
outstrip in membership the club at
Denver, Colorado, after which the
Omaha organization was patterned.
The Omaha group listed 54 girls and
46 boys as members since its forma­
tion last November 1st.

members of all the different political
parties and if we took a stand for one
particular party, we would get nothing
done except argue with them, besides
losing good customers that we do not
agree with politically.”

65

think a banker’s business is to serve
all classes, regardless of their politics,
religion or social status; and he should
therefore stand for sound principles
of finance regardless of what party is
in power and for a high moral code in
government. His influence will be
more effective if he is not too active
in politics.”

L. D. Spalding, president, Arlington
State Bank, Arlington Nebraska: “ I

Mr. and Mrs. Lawrence Brinker
have returned from Miami Beach,
Florida, where they vacationed for six
weeks. They were accompanied to
Florida by Mr. and Mrs. W. J. Coad
of Omaha. Mr. Brinker heads the
Omaha investment banking company
bearing his name. Mr. Coad is a di­
rector of the Omaha National Bank.

Mrs. Harris Dies
Mrs. Katherine Harris, wife of Fred
Harris, executive vice president and
cashier of the Alliance National Bank,
Alliance, Nebraska, died at her home
early last month. Mrs. Harris had
been ill for some time.
She was born in Johnson
Iowa, April 13, 1874, and was
to Mr. Harris in Alliance on
ber 13, 1899. She had lived in
since 1890.

county,
married
Septem­
Alliance

" M y O p in ion 99

Since 1871, our basic correspondent
policy has remained unchanged—

Question: What is your opinion
about bankers taking an active
part in local and national politics?
L. Skjelset, president, First National
Bank, Bowbells, North Dakota: “There
can be but one answer to this ques­
tion. A banker that does not take
active part in local and national poli­
tics fails to perform his duties as an
American citizen.”
C. P. Stanwood, cashier, Citizens
State Bank, Arlington, South Dakota:
“ I think bankers should stay out of
local and national politics. My reason
for this is w e . in small communities
have to deal with customers who are

"COOPERATION NOT COMPETITION"
Your business is invited on this basis.

THE FIRST iV.lTI0.T4L BAM OF UHO0UV
1871

N A T IO N A L , B A N K


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

B U IL D IN G

1948

Member Federal Deposit Insurance Corporation

Did you know there’s a gap in your Cash Letter
protection that you could “drive a truck through?”
Ask us how to bridge it without costing you a
cent.
F IR S T

LINCOLN, NEBRASKA

C H IC A G O

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

STATE

to Banks

4325

Nort hwest ern Banker, May, 1948

66

Louis Barta

L. V. Pulliam

A ss’t. Cashier
and A ss’t. Trust Officer

A ss’t. Cashier

C. G. Pearson
Cashier

sit program that is speedy, accurate
and certain . . . 24-hour transit service
that saves as much as a day's time on
most transactions. All that means build­
ing more profits and better customer
relations for you. Next time you need
correspondent service with the keynote
on speed, efficiency, accuracy and com­
pleteness, think first of the team of offi­
cer-specialists ready to serve you at
Live Stock National Bank of Omaha.

Yes, our cashiers' group is a speedy
crew that really gets around. If neces­
sary, we put them on anything that
rolls or flies to bring you faster, better
service. And they're part of the team,
too — the team of officer-specialists at
Live Stock National, Omaha, that has
been organized to bring you a complete
correspondent service. At the Bank of
Friendly 24-hour Service you get a tran­

* L ast o f a s erie s of a d v e r t is e m e n t s on o ff ic e r
personalities at Live Stock National Bank, o f Om aha.

LIVE STO C K ^B A N K
O
T H E

M

B A N K
M em ber


Nort hwest ern Banker, May, 1948
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

of

A

H

OF
F ederal

N

A

E

F R I E N D L Y
R eserve

and

F ed eral

B

R

A

S

K

2 4 - H O U R
D e p o sit

In su ra n ce

A
S E R V

C o r p o r a tio n

67
Prior to entering the army in 1943
he served in various departments of
the bank and since his discharge spent
several months with the examining
force of the Northwest Bancorporation.

Iow a
N E W S
W. W. BLASIER
President
Jesup

During his army service he spent
two and one-half years in the Euro­
pean Theater, holding the rank of
major in the finance section.

FRANK WARNER
Secretary
Des Moines

Fenton Office Manager
Charles City Changes
Marvin P. Martens, Charles City,
Iowa, was recently elected as vice
president of the Commercial Trust and
Savings Bank in Charles City.
A cashier of the Exchange State
Bank at Springville for five years,
he was elected to the new position by
the bank’s board of directors. He was
an employe of the bank for 20 years
before going to Springville.
Roscoe D. Markle, assistant cashier
for the last six years, has also been
advanced to the position of cashier, it
was announced.
Before joining the Commercial Trust
and Savings Bank, Mr. Markle was en­
gaged in banking at New Hampton,
served as Chickasaw county treasurer
and later deputy Floyd county treas­
urer.
W. Loren Parr, cashier of the bank
for many years, was advanced to a
vice presidency at the January meet­
ing of the board of directors and will
continue to serve in that capacity, ac­
cording to the announcement.

ing. Main part of the program was a
panel discussion that had the follow­
ing well-qualified speakers: George T.
Nelson, assistant cashier Central Na­
tional Bank and Trust Company, Des
Moines; Paul L. Gronstal, auditor
Council Bluffs Savings Bank; Ed B.
Wilkinson, junior examiner Iowa State
Banking Department, Iowa City, and
C. T. McClintock, vice president Wood­
bury County Savings Bank at Sioux
City, who served as panel leader.

Joins Sioux City Bank
Stanley W. Evans, who has been in
the employ of the Live Stock National
Bank of Sioux City since 1937, except
for three and one-half years in the

J. Wallace Smith has been named
manager of the Fenton office of the
First Trust and Savings Bank of Arm­
strong, Iowa. He succeeds to this posi­
tion which was made vacant by the
sudden death of his father, J. A. G.
Smith of Fenton.
Mr. Smith was assistant to his father
in the Fenton bank until January,
1941 when he took a clerical job with
the Central National Bank and Trust
Company in Des Moines. From Des
Moines he went to the Hamilton Na­
tional Bank in Washington, D. C.,
where he worked as a bookkeeper un­
til he enlisted with the U. S. Navy.
Serving as a naval aviator, he piloted
twin engine patrol bombers.
Following his discharge from the
Navy, he accepted a position with the
Klamath Falls branch of the United
States National Bank at Klamath Falls,
Oregon. For the past year he has been
with the La Jolla, California, branch
of the Security Trust and Savings
Bank which latter position he has re­
signed to become manager of the Fen­
ton bank.

Passes 60th Anniversary

Exhibit Coin Collection

Staff members of the Cedar Falls
Trust and Savings Bank at Cedar
Falls, Iowa, last month celebrated the
60th anniversary of the bank’s found­
ing, according to word from President
Frank B. Miller. At the annual meet­
ing this bank declared a 100 per cent
dividend to stockholders.

A coin display owned by Stanley
Klaus, Manchester, Iowa, insurance
man was on display last month in the
First State Bank of Manchester. The

1948 Group Meetings
Groups

Bank Auditors Meet
The Iowa Association of Bank Au­
ditors and Comptrollers held its 24th
Quarterly Conference last month at
Shenandoah with 80 bankers present
from 16 different counties. Harold E.
Lemkau, Association president and as­
sistant cashier of the Muscatine Bank
and Trust Company, opened the meet­

Did you know that our Cash Letter Policy not only
gives protection but enables you to cut operat­
ing expenses substantially? Ask us for
details. You will not obligate
yourself.
F IR S T

N A T IO N A L


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

BANK

B U IL D IN G

10

Tuesday, May U t h ........... Oskaloosa

5

Army, has recently been appointed
representative in the correspondent
bank division.

C H IC A G O

Towns

Monday, May 10t h.................... Clinton

6
S T A N L E Y W. EVANS
With Live Stock of Sioux City

Dates

8

Wednesd ay, May 12th..............Perry
Thursday, May 13th.Counci l Bluffs

2

Tuesday, May 2 5 th ..........Estherville

3

Wednesday, May 26th C h arle s C i t y

7

Thursday, May 2 7th.................. Vinton

4

Friday , May 2 8 th .................. Waukon

Scarborough & Company
Insurance Counselorsto Banks
3, IL L IN O IS

•

STATE

4325

Nort hwest ern Banker, May, 7948

68

Iowa News

occasion for the display was observ­
ance of National Coin Week and
President Charles Kelley had invited
Mr. Klaus to exhibit his remarkable
collection of coins in the bank lobby.

Buys Stock in Wapello
L. H. Vardaman of Keosauqua,
Iowa, has purchased a substantial
block of stock in the State Bank of
Wapello, Iowa, and has been elected

executive vice president and a mem­
ber of the board of directors.
Kenneth Wiederrecht, a prominent
farmer and life time resident of Louisa
county has been added to the board,
replacing Robert Erwin. Bernard Par­
sons, first assistant cashier, who has
been affiliated with the bank for the
past eleven years was promoted to
cashier.
Mr. Vardaman started in the bank-

THE A D V A N T A G E S OF
D R O V E R S S E R V I C E TO Y O U R
R A N K SE R V IC E . . . FOR L I V E ­
STOCK SH IP P IN G CUSTOMERS
&

^

I

A S T

f Ml i E V IP L 1

& A C C U it A T E
Because o f Drovers’ convenient location at the Yards, time is
saved—often a full day—in transmitting livestock proceeds.

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

S T O C K

Y A R D S ,

C H I C A G O

Members, Federal Deposit Insurance Corporation

L. H. V A R D A M A N

ing business at Keosauqua, Iowa, in
1931 when he and his uncle organized
the Farmers State Bank there, and
he was the bank’s cashier when he
resigned in July, 1945, to become presi­
dent and principal owner of the Emer­
son State Bank of Emerson, Iowa. He
sold his interests there in December,
1947, and returned to Keosauqua.
This sale was negotiated by Henry
H. Byers, president of the Bankers
Service Company of Des Moines. Iowa.

Macedonia Manager
Jack Eakin, assistant cashier in
charge of the transit department at
the State Savings Bank of Council
Bluffs, will be the new manager of
the bank’s Macedonia office, Clyde A.
Blanchard, president, announced last
month.

THE TOY NATIONAL BANK
W E WILL BE GLAD TO HAVE YOU CONSULT US ON ANY
SUBJECT OF INTEREST TO YOU

IN THE HEART OF DOWN TOWN SIOUX CITY
Member Federal Deposit insurance Corporation
Nort hwest ern Banker, May,


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

1948

69

YOUR DES MOINES
T R A N SA C TIO N S
HANDLED W I T H
UNUSUAL PROMPTNESS

VALLEY BANK AND T R U S T C O M P A N Y
DES

M O IN E S

75th
MEMBER F ED ERA L DEPOSI T IN SU R A N C E C O R P O R A T IO N


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

A N N IVERSA RY
YEAR
Northwestern Banker, May,

1948

70

Iowa N ew s

i 'Union B e c o m e s Bit/ B u sin ess

T E R M I N A L S H O P S of the Chicago and Northwestern Railroad are shown in
this view of one phase of the multitude of activities carried on in the C ity, o f
C lin to n where Group 8 bankers will meet on Monday, May 10th.

HE Clinton of today is a far cry
from the Clinton which the Chicago
T
& North Western Railway found when
its first train crossed the bridge into
Iowa in January, 1865. It was then a
one-industry town. Sawmills lined the
river from the northern woods to be
converted into lumber at Clinton. Clin­
ton boasted the largest sawmill in the
world at that time, but still it was a
sleepy town. Group 8 bankers and
others gathering in Clinton on Mon­
day, May 10th, will find the city very
much alive.
About the turn of the century,
things began to change. The forests
in the north were becoming depleted
and the lumber mills in Clinton were
obliged to close down. This presented
a challenge to the city which really
aroused it out of its slumbers. Busi-

ness men saw their dreams fading
away into a ghost town. They organ­
ized, they went after new industries,
they did what they could to help the
industries which remained. They put
up a battle every time one threatened
to close down. The result is that
Clinton has had a complete face-lifting.
Instead of a one-industry town that
onerated in the summer and closed
up tight in the winter, it is now a
thriving industrial city of many and
varied industries operating twentyfour hours a day, 365 days in the year.
Its leaders have taken the slogan,
“Where Agriculture a n d Industry
Meet” because 45,000 bushels of corn
are ground daily in the plant of Clin­
ton Industries, Inc., processors of corn;
Pillsbury Mills, Inc., manufacturers of
stock feeds, have a huge grain elevator

M ONDAY

CLINTON
Group 8

Annual Meeting

GROUP 8

M ay 10

CLUVTUN

here storing a million bushels of soy­
beans which are used in the manufac­
ture of their feeds and the W. Atlee
Burpee Company, nationally adver­
tised mail order seed house, does more
business here than at the parent plant
in Philadelphia.
Not only are agricultural products
manufactured and processed here, but
Clinton is very proud of Curtis Com­
panies, Inc., nationally-known manu­
facturers of fine millwork; Climax En­
gineering Company, manufacturers of
internal combustion engines; Central
Steel Tube Company and Collis Com­
pany, manufacturers of steel and wire
products; Clinton Lock Company,
manufacturers of builders’ hardware;
also the Clinton Garment Company,
manufacturers of house dresses; Clin­
ton Distilling Company and the Clinton
Bridge Works.
One of Clinton’s newest industries is
the E. I. duPont de Nemours & Com­
pany, Inc., cellophane plant, to which
the company has recently added the
second unit. Swift & Company has
purchased a site and will build a pack­
ing plant here in the near future.
Clinton is fortunate to have four
fine railroads, namely:
Chicago & North Western Railway;
Chicago, Milwaukee, St. Paul & Pacific
Railroad, Chicago, Burlington & Quin­
cy Railroad, and Chicago, Rock Island
& Pacific Railway.
These railroads have meant much to
the leaders of Clinton in selling the
city to prospective industries. The
North Western Railway, with its divi­
sion point, roundhouse, machine shops
and yards which have recently been
expanded at a cost of several hundred
thousand dollars, is the leader in this
field, but the men and the service of
the other railroads are greatly appre­
ciated.
Clinton county also has become
prominent for its production of thou­
sands of the finest cattle in the world.
Its farmer-business men top the mar­
ket frequently because of the fine qual­
ity of animals presented and the repu-

MONDAY, M AY 10
Members of the Clinton County Bankers Association extend a
hearty welcome to Iowa bankers and their friends to come to
our annual meeting of Group 8 on Monday, May 10th, at Clinton.
Our meeting will be especially informative and we will all
benefit by the interchange of new ideas. Let's all attend our
Group meeting.
MEET YOUR HOSTS
City National Bank, Clinton

G oose Lake Savings Bank, G oose Lake

Clinton National Bank, Clinton

Iow a State Savings Bank, Clinton

DeWitt Bank & Trust Co., DeWitt

Teeds Grove Savings Bk., Teeds Grove

515 TWENTY EIGHTH STREET

First Trust & Sa.v. Bank, W h eatlan d

Union Savings Bank, Grand Mound

DES •M O IN E S

CLINTON COUNTY B A N K E R S A S S O C I A T I O N
Nort hwesf ern Banker, May,


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

1948

IOWA • LITHOGRAPHING • COMPANY
FOUNDED BY CEORCE H. RACSDALE •

•

EDWIN G. RAGSDALE -V SECRETARY

Q U A L I T Y - E X P E R I E N C E •S E R V I C E

Iowa News

tation which Clinton county h a s
gained. Truly Clinton is a city “Where
Agriculture and Industry Meet.”'

Group 8 Program
CLINTON
9:30 to 12:30
Lobby.

Morning
Registration — Hotel

Afternoon
Group Luncheon in Oak Room
(program immediately follow­
ing in Oak Room).
Opening Remarks—L. J. Derflinger, president, Clinton Coun­
ty Bankers Association.
Entertainment by a cappella
chair, Clinton High School.
“Today’s Challenge in Banking”
— W. W. Blasier, president,
Iowa Bankers Association; pres­
ident, Farmers State B a n k ,
Jesup, Iowa.
“ Some Observations” — N. P.
Black, Iowa State Superintend­
ent of Banking.
Introduction of J. H. Peterman,
Iowa Deputy State Director,
Savings Bond Division of U. S.
Treasury Department.
Remarks — Frank Warner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines.
Address — “Our Part in These
Times,” Dr. J. O. Christianson.
Superintendent of School of
Agriculture, State University
of Minnesota, St. Paul.
Talk—Robert H. Nicolaus, vice
president, Iowa Junior Bankers
Association: assistant cashier,
Wilton Savings Bank, Wilton
Junction, Iowa.
Report of Nominating Commit­
tee and election of officers.
4:15 Adjournment.
4:45 Social Hour—Oak Room.
Headquarters for visiting ladies is
the Gold Room, No. 206, second floor.
Those who do not wish to attend the
program will find local hostesses eager
to provide entertainment. Tickets for
all movies will be available.

Group 10 Program
OSKALOOSA

12:45


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

Anderson, chairman, Group 10,
I.B.A.; cashier, Farmers Sav­
ings Bank, Fremont.
Invocation — Rev. Don Haviland, Rector, Episcopal Church,
Oskaloosa.
Welcome—G. S. Krouth, presi­
dent, Oskaloosa Chambe r of
Commerce; president, I o w a
Trust & Savings Bank.
Appointment of Nominating
Committees by chairman.
Talk — “Today’s Challenge in
Banking,” W. W. Blasier, presi­
dent, Iowa Bankers Associa­
tion; president, Farmers State
Bank, Jesup, Iowa.
Talk—“ Some Observations,” N.

The Group will not sponsor an eve­
ning meal; however, immediately fol­
lowing the social hour, several local
eating places, including the new din­
ing room in the hotel, are available.

2:00
3:00
6:00
7:00

Afternoon
Registration for Golf Tourna­
ment at the Elmhurst Country
Club.
Registration at the Elmhurst
Country Club.
Dinner at the Elmhurst Coun­
try Club.
Meeting Called to Order—Oliver

★

★

71

★

FRIENDLY HELP
Some banks may be housed in a higher building
— but nowhere will your correspondent business be
treated with higher respect than here at the First
National Bank in Sioux City. In some banks you
may find deeper vaults— but nowhere a deeper ap­
preciation of your every-day needs.
Then too, you will travel the country over for a
better brand of honest-to-goodness, grass-roots co­
operation than you'll find among the friendly officers
of the First in Sioux City.

A . G. SA M , President
J. T. Grant, Vice President

H. H. Strifert, Assistant Cashier

J. R. Graning, Cashier

K. J. Shannon, Assistant Cashier

E. A . Johnson, Assistant Cashier

W . L. Temple, Assistant Cashier

J. Ford W h eeler, Auditor

NATIONAL
BANK
in SIOUX CITY

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

---------------★

★

★

-------------Nort hwest ern Banker, May,

1948

72

Jowa News

P. Black, State Superintendent
of Banking, Des Moines; cash­
ier, Perry State Bank, Perry,
Iowa; president, Dallas County
Savings Bank, Minburn, Iowa.
Talk—“ Inflation’s Worst Foe,”
J. H. Peterman, Deputy State
Director for Iowa, U. S. Sav­
ings Bonds Division, U. S.
Tr e a s u r y Department, Des
Moines, Iowa.
Address — “The Social Signifi­
cance of Your Work,” Dr. J. O.
Christianson, Superintendent of
School of Agriculture, State
University of Minnesota, St.
Paul, Minnesota.
Remarks—Frank Warner, sec­

retary, Iowa Bankers Associa­
tion, Des Moines.
Report of Nominating Commit­
tees.
Adjournment.

Iowa Loan Drive On
Iowa’s quota for the Security Loan
drive, which opened last month and
runs through June 30th, has been set
at $100 million, according to Roger F.
Warm, state director of the savings
bonds division. This amount is onethird of the total amount invested in
series E, F and G bonds in Iowa dur­
ing 1947.
Mr. Warm reports that the drive
quota, which is approximately 43 per

cent greater than total sales during
the comparable months in 1947, was
established by a committee of Iowa
business men, bank and farm organ­
ization representatives, and newspa­
per, radio and advertising executives.
Factors taken into consideration in
establishing county quotas were esti­
mated total income and current bank
deposits in the respective counties, and
these figures were used in a standard,
weighted formula.
Mr. Warin said that the greatest na­
tional advertising campaign in history,
valued at $34 million in contributed
magazine and newspaper space, radio
time, billboards and car cards, plus
millions of dollars spent for sponsored
newspaper space, will support the
savings bonds program in 1948. A
large proportion of this amount will
be released during the Security Loan
drive.

In Villisca Bank

| ^OREIGN exchange regulations, import restrictions, and
econom ic conditions are constantly changing throughout
the world. Keeping abreast of new developments in overseas
trade is an important part o f the work o f our Foreign Depart­
ment. This specialized knowledge — and our facilities for the
efficient consummation o f dealings abroad — place us in a
favorable position to cooperate with your bank in rendering
service to your customers who buy or sell overseas.
Inquiries are invited by our Foreign Department regarding
any phase o f this service.

AM ERICA N N ATIO N AL B A N K
AND TRUST C O M P A N Y O F C H IC A G O
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

LA S A L L E

Northwestern

Banker, May,


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

1948

AT

WASHINGTON

Following their purchase of a sub­
stantial interest in the Nodaway Val­
ley National Bank at Villisca, Iowa,
Walter J. B. Hyink of Tingley, Iowa,
and Louis R. Boettcher of Omaha,
Nebraska, took possession of their
interests last month and are now
actively engaged in the operation of
the bank.
At a meeting of the bank directors,
James F. Joy was elected president,
Mr. Hyink executive vice president
and Mr. Boettcher cashier. Mr. Joy
previously was vice president.
Both Mr. Hyink and Mr. Boettcher
will make their homes in Villisca as
soon as they can obtain living quar­
ters. Mr. Hyink was cashier of the
Tingley State Savings Bank.
The personnel of the bank will re­
main the same as heretofore, with the
exception of George J. Muller, presi­
dent, and J. L. Wheeler, cashier, both
of whom will retire from active service
because of the condition of their
health. Roy B. Means is assistant
cashier.

Purchase Hampton Stock
The controlling stock of the late
Donaldson D. Inglis in the Hampton
State Bank of Hampton, Iowa, was
sold last month to Paul H. Borcherding, L. H. Davis and Ralph R. Stuart.
The Executive management of the
bank will continue the same as it has
been for some time, with Mr. Borcherding as president and Mr. Davis as
cashier, both of whom have been con­
nected with the bank for the past sev­
eral years. Mr. Stuart is a director.
Dallas Smith, well known former
resident of the Geneva community,
will be a new member of the force,
and has been elected assistant cashier.

Iowa News

P erry

—

73

addition to this the same plant proc­
essed poultry, eviscerating, freezing,
and packing and dehydrating and
freezing eggs purchased elsewhere to
the amount of $20,000,000 annually.
Perry’s newest industry is a large
fertilizer plant. This plant employs
120 men and operates 24 hours a day.
Its annual production is 80,000 tons of
superphosphate.
The total bank deposits in Perry are
$10,000,000, and the city is served by
two fine banks, the First National
Bank and the Perry State Bank.

P r o u d und

Group 6 Program—
PERRY
12:30
2:00
A L L T Y P E S of businesses flourish in P e rry , the largest city in Dallas county.
This is a view of the main business section showing part of Perry’s normal street
activity.

HEN bankers of Group 6 visit
Perry on Wednesday, May 12th,
W
they will find a progressive commu­
nity with excellent retail stores to
serve the needs of 35,000 people living
within this city’s trade territory. This
trade territory extends north 14 miles,
east 12 miles, south 15 miles, and west
30 miles. To serve the needs of these
people the Perry merchants transacted
approximately $10,000,000 worth of re­
tail business.
This community takes great pride in
its industries. There are nine large
industries and many small ones. The
number of men employed in Perry in
industries is the largest number of
any community its size in the state of
Iowa.
There are two hybrid seed corn
plants in the community. These plants
are modern and they process a capac­
ity of 200,000 bushels of the finished
product and drawing on the produc­
tion of 5,000 acres of corn grown in
this a r e a .
Additional acreage is
planted in corn for other companies
and for individuals engaged in the
production of hybrid corn.
A large modern processing plant
producing dehydrated milk, cheese, ice
cream mix, and stock feed is a major
industry providing an enormous in­
come for farmers of this area. During
a twelve-month period this plant pro­
duced 180,645 pounds of condensed
milk, 1,021,170 pounds of condensed
milk for stock feed, 373,195 pounds of
Cheddar cheese, 909,243 pounds of ice
cream mix. A total of 8,950,759 pounds
of milk was purchased from the local
farmers.
Two internationally known packing
companies operate plants in Perry.
One plant processes pork exclusively.

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

The other plant operates a hog pur­
chasing yard for processing elsewhere.
These plants have a combined annual
output of over $8,000,000.
Industrial manufacturing occupies
an important place in the activities of
Perry. Two of these plants are large
producers of agricultural implements
and allied lines which are shipped to
all corners of the world. A large found­
ry produces grey iron castings for
washing machines, agricultural imple­
ments, automobile and tractor produc­
tion.
The poultry and egg processing
plant in Perry purchases poultry and
eggs from this immediate territory in
the total of $2,000,000 annually. In

Afternoon
Registration.
Meeting Called to Order—Roy
A. Sweet, chairman, Group 6;
vice president a n d cashier,
Story County State Bank. Story
City, Iowa.
Appointment of Nominating
Committee.
Talk — “Today’s Challenge in
Banking,” W. W. Blasier, presi­
dent, Iowa Bankers Associa­
tion; president, Farmers State
Bank, Jesup, Iowa.
Talk—“ Some Observations,” N.
P. Black, State Superintendent
of Banking; cashier, P e r r y
State Bank, Perry, Iowa.
Talk— “ Inflation’s Worst Foe,”
J. H. Peterman, Deputy State
Director for Iowa, U. S. Savings
Bonds Division, U. S. Treasury
Department.
Talk—“ Public Relations,” C. D.
Clausen, president, Iowa Jun­
ior Bankers Association; assist-

Wednesday
MAY 12

PERRY

Welcome to Our Group Meeting
W hen bankers of Group 6 arrive in Perry, W ed n es­
day, M a y 12, they will find Dallas county bankers
eager to make their stay worth while. From begin­
ning to end our program has been designed to give
you the very best of ideas and entertainment.

DALLAS COUNTY BANKERS ASSOCIATION
Members
BRENTON STATE BANK, DALLAS CENTER
DALLAS COUNTY SAVINGS BANK, MINBURN
DALLAS COUNTY STATE BANK, ADEL
FIRST NATIONAL BANK, PERRY
PERRY STATE BANK, PERRY
Nort hwest ern Banker, May, 1948

74

Iowa News

ant cashier, Citizens National
Bank, Boone, Iowa.
Remarks—Frank Warner, sec­
retary, Iowa Bankers Associa­
tion.
Report of Nominating Commit­
tee.
6:15

Dinner—Perry Golf and Coun­
try Club.

7:30

Entertainment.

7:40

Address—“ Dealing in Futures,”
Dr. J. O. Christianson, Superin­
tendent of School of Agricul­
ture, State University of Min­
nesota, St. Paul, Minnesota.
Adjournment.

G roup

5 M e e ts at Council MUuffs

ISTORIC Council Bluffs will be
the site of Group 5’s annual meet­
H
ing on Thursday, May 13th.
Council Bluffs is a city of 46,000
people, with 92,000 feet planted firmly
on the past, eyes on the future. It is
a midwestern industrial and farming
center whose life embraces more than
a century and a half of real American
history.
Lewis and Clark started things here
in 1804, when they held council with
the Indians on the high bluffs over­
looking the Missouri River. Later,

the Mormons paused at this point on
their great westward trek, and estab­
lished a trading post which served as
a chief outfitting point for early set­
tlers in the west.
Abraham Lincoln was in Council
Bluffs in 1859, in the company of Gen­
eral Grenville M. Dodge, and in 1863
designated this city as the eastern
terminus of the great Union Pacific
Railroad. The industrial and commer­
cial history of the area had its birth
at that date.
This was the logical place for the
“gateway to the west.” Near the geo­
graphical center of the United States,
it is here that great railroads converge
to cross the waters of the Missouri.
Nine trunk lines now come into Coun­
cil Bluffs and provide the city its larg­
est industry.
With unequalled transportation ad­
vantages, it was natural that farmers
should point their wagons then, and
their trucks and motor cars now, to
Council Bluffs.

Statement of Condition, April 12, 1948
Resources:
Cash and due from banks.............................................$ 59,754,762.37
U. S. Government Securities......................................... 51,761,235.79
(Including those pledged $9,387,000.00)
Other Bonds and Securities.........................................
7,560,423.60
Federal Reserve Bank Stock.......................................
300,000.00
Loans and Discounts..................................................... 86,557,404.23
Customers' Liability on Acceptances and
Letters of Credit......................................................
237,326.25
Real Estate ......................................................................
201,728.99
Accrued Earnings Receivable (Net)..........................
479,954.62
Overdrafts ........................................................................
19,578.96
Other Resources ............................................................
134,762.72
$207,007,177.53

Liabilities:
Capital .............................................................................. $
Surplus and Undivided Profits.....................................
Dividend declared, payable May 3, 1948................
Accrued Interest, Expenses and Taxes
Payable (Net) and Other Reserves....................
Acceptances and Letters of Credit............................
Other Liabilities ..............................................................
Deposits:
U. S. Government, and
other Public Funds....... $ 6,489,826.29
Other Deposits ...................... 184,528,681.53

6,000,000.00
8,250,141.00
120,000.00
1,144,278.12
237,326.25
236,924.34

191,018,507.82
$207,007,177.53

93 Y ea rs
o f Banking E xperience

M em ber Federal
Deposit Insurance
Corporation

Other industries, as a result, have
been attracted here: truck body man­
ufacturing plants; playground equip­
ment; grain elevators; feed mills; stor­
age battery plants; dairies; plastics;
bee supplies; food processors; lubri­
cating oils; greenhouses; and many
others. And all of these have made
the retail trade territory of Council
Bluffs one of the richest and most sta­
ble in the United States.
But the best product is people, and
Council Bluffs is praised and famed for
its friendliness. They are proud of it.
Council Bluffs is fast becoming a
convention city. The convenience
from the transportation angle, plus
proximity to the cosmopolitan center
of Omaha, is a continuous invitation
for organizations to hold their annual
meetings there.
The city of Council Bluffs has over
1,000 acres of parks, 37 miles of boule­
vards, and an area of 19 square miles.
Council Bluffs people are vitally in­
terested in fish and game conservation.
Through their conservation league
they have revived Lake Manawa,
south of the city, providing fishing,
boating and swimming.
Sports-minded, too? You bet! Coun­
cil Bluffs recently became the home of
the Cardinal baseball team (a part of
the St. Louis Cardinal organization)
of the Class A Western League. The
club will play its games in the wellequipped American Legion ball park.
Is there room here for industrial
expansion? Plenty. Flat areas, con-

Northwestern Banker, May,


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

1948

★

★

WELCOME TO

COUNCIL BLUFFS
FOR THE ANNUAL MEETING OF GROUP 5
Bankers of Pottawattamie County and Council Bluffs welcome
your arrival to the Annual Group Meeting of Group 5.
splendid program has been arranged for this occasion.

A

It will

be profitable and packed with information on modern day
banking problems, so make plans to attend.

Thursday, May 13

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

★

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

★
Nort hwest ern Banker, May,

1948

76

Iowa News

venient to the business centers of both
Council Bluffs and Omaha, offer busi­
ness and factory locations easily and
economically serviceable by the rail­
roads.

Group 5 Program—
COUNCIL BLUFFS
10:00

12:30
1:30

Forenoon
Registration and Visiting—Ho­
tel Chieftain Lobby. (Fee $3.00
per person, including lunch­
eon.)
Afternoon
Luncheon—Hotel Chieftain.
Call to Order — L. C. Kruse,
chairman, Group 5; president,

Mineola State Bank, Mineola,
Iowa.
1:35 Welcoming Remarks — Edwin
H. Spetman, vice president,
Council Bluffs Savings Bank,
Council Bluffs, Iowa.
1:40 Observations and Introduction
of Guests—L. F. Kruse, chair­
man.
1:55 “ Today’s Challenge in Bank­
ing”—W. W. Blasier, president,
Iowa Bankers Association; pres­
ident, Farmers State Bank,
Jesup, Iowa.
2:10 “ Some Observations” — N. P.
Black, State Superintendent of
Banking; cashier, Perry State

2:25

2:40

3:25

3:40

GROUP TW O

4:00

Bank, Perry, Iowa; president,
Dallas County Savings Bank,
Minburn, Iowa.
“ Inflation’s Worst Foe”—J. H.
Peterman, Deputy State Direc­
tor for Iowa U. S. Savings
Bonds Division, U. S. Treasury
Department, Des Moines, Iowa.
Address — “Our Real Assets,”
Dr. J. O. Christianson, Superin­
tendent of School of Agricul­
ture, State University of Minne­
sota, St, Paul, Minnesota.
“A Young Banker’s Views on
Banking” — Robert Henstorf,
Jr., cashier, F i r s t National
Bank, Farragut, Iowa.
Remarks—Frank Warner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines, Iowa.
Adjournment.

Purchase Keokuk Bank

ON T O

E S T H E R V I L L E
When bankers of Group 2 reach Estherville
on Tuesday, May 25th, for their Annual Group
Meeting, they will find a prosperous Iowa town
with every member of the Emmet County Bank­
ers Association eager to please them.
This year's meeting will be especially in­
structive and we will all benefit greatly by the
interchange of ideas. Remember the date . . .

A group of Keokuk, Iowa, business
men comprising G. L. Weissenburger,
James Huiskamp, Jr., W. A. Logan
and E. A. Ebersole recently purchased
the B. A. Gronstal interests in the
Security State Bank there.
The bank will continue to operate
on its present status save that the
ownership will lie exclusively in the
hands of Keokuk business men.
Aside from B. A. Gronstal, president
of the Council Bluffs Savings Bank
who purchased his interest in 1944,
and his son, Joe Gronstal, of Keokuk,
the present directors will continue in
office.
They include R. N. Hoerner, Glenn
I. Conner, C. R. Joy, A. D. Ayres,
George E. Smith, R. J. McCleary and
L. A. Rovane.
Mr. McCleary is the Security State’s
executive vice president. Mr. Logan
is president; Mr. Ebersole is vice presi­
dent and cashier and Mr. Huiskamp
is vice president of the State Central
Savings Bank of Keokuk.

Re-elect Officers

TUESDAY, M AY 25

Emmet County Bankers Association
EMMET COUNTY STATE BANK, ESTHERVILLE
FIRST TRUST AND SAVINGS BANK, ARMSTRONG
IOWA TRUST AND SAVINGS BANK, ESTHERVILLE

Northwestern Banker, May,


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

1948

All directors of the Fidelity Sayings
Bank of Marshalltown were re-elected
at the annual meeting of the bank’s
stockholders in the bank’s offices last
month, and at a subsequent meeting
of directors all officers were re-elected,
and Orville W. Thurston, who has
been with the bank since last August,
was advanced to the post of cashier.
The officers re-elected, besides Mr.
Bradbury, are E. J. Paul, vice presi­
dent, and Laurence P. Belknap and
John G. Bartine, assistant cashiers.
Directors of the bank are Dr. Royal
F. French, M. C. Berkley, John W.
Rank, N. T. Chadderdon, G. A. Mote,
R. E. Thornbury, Oscar W. Johnson,
Mr. Paul and Mr. Bradbury.

I o w a News

listlierrille Is Hit/ T ra d e l'en ter

W I D E , C L E A N S T R E E T S are only one of the many attributes of E s th e r v ille
that visiting bankers will find in this county seat of Emmet County, just below
the Minnesota border in the northwest section of Iowa.

pSTH ERVILLE is a city of 6,500 popL_ ulation, located in the rich, agri­
cultural northwest section of Iowa, in
the Iowa Great Lakes region, ideal for
summer recreation of all kinds. This
is where Group 2 bankers will meet
on Tuesday, May 25th.
It is the county seat of Emmet coun­
ty, an area of picturesque woods, hills
and lakes, excellent roads and gentlyrolling farm land whose soil is rich,
black loam, productive of corn, small
grain, soybeans and livestock pasture.
The pioneers who founded Esther­
ville almost 100 years ago chose a
beautiful valley, protected on the west
and south by wooded hills and bor­
dering the west fork of the Des Moines
River.
Two packing plants have selected
Estherville as an ideal site. They are
the Tobin Packing Company, Esther­
ville Division, a beef and sheep killing
plant, and the Davis Packing Com­

pany, a horse killing plant that sends
horse meat to all parts of the world.
Another industry established here is
the Soo Valley Company, manufactur­
ers of casting and fly fishing lines,
sutures and other kindred braided
products u n d e r nationally known
trade names. The factory employs
a large number of women operating
complicated braiding machinery.
There are two large chick hatcheries
and two stock-feed mills that do an
extensive business over a large area.

77

There are two banks with total de­
posits of over $11,936,000, and two
theatres. Two hotels give adequate
accommodations for visitors.
Two railroads, the Rock Island and
the M. & St. L., and five bus lines
serve Estherville. A modern airport
east of the city makes it easily acces­
sible to the air-minded. Many locally
owned planes are hangared at the field
and regular flying instruction is given.
Estherville is on Highways No. 9
and 17.
A municipally owned light and pow­
er plant serves not only city users but
many rural homes through REA.
Estherville has five school buildings,
including a large high school and a
junior college. Its athletic facilities
are among the best in the state.
Twelve churches serve Estherville
and provide an active program for
both young persons and adults.
One of Estherville’s distinguishing
features is its charming tree-shaded
city square around which the town’s
business section is built. In the square
are a well-stocked public library and
the county courthouse.
Estherville is becoming the medical
center of northwest Iowa. The mod-

Farmers from a large area consider
Estherville their trading center and
are attracted by a large cooperative
creamery, two produce firms, and a
livestock sales pavilion, all of which
ensure them good prices for their
products.
The community is served by a pro­
gressive daily newspaper and a week­
ly.

Manufacturers of

BU SIN ESS

CALENDARS

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M em orandum
Advertising Specialties

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in slack periods, reduce er­
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m ark , . . exclusive patented
fla p protects contents.

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•

Bank Supplies

In desired papers a n d colors.
W rite for sam ples and prices.

Prompt Attention Given to All Inquiries

T


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

he

D

alton

P

Quality Printing Since 1891

MÄNSON. IOWA

h ess

Te n

s io n
New

En

velo pe

York

Co

r i

I « , N. Y.

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Sì. l o v h 1 0 , M e.

Oes Moines 14, towo
Kansas City $ , Mo.

Northwestern Banker. May,

1948

78

Iowa News

ern Holy Family Hospital is constantly
expanding its facilities, and the Parkview Clinic is also available to meeting
the needs of those wishing hospital
care. Patients are registered from an
ever-widening area.
Historically Estherville is an inter­
esting city. During the time of Indian
massacres in northwest Iowa and
southern Minnesota, Fort Defiance
was built as a refuge for frightened
settlers.
Estherville is a friendly city and a
growing city. Hundreds of new fam­
ilies have come here since the war to
make their home, many new busi­
nesses have been established, and
many new homes are being built.

Estherville’s spirit is progressive and
its hope for the future bright.

Group 2 Program
ESTHERVILLE
10:00 Registration—Gardston Hotel.
2:00 Call to Order.
Invocation.
Address of Welcome.
Response to Welcome.
Talk—“Today’s Challenge in Bank­
ing,” W. W. Blasier, president, Iowa
B a n k e r s Association; president,
Farmers State Bank, Jesup, Iowa.
Talk—“ Inflation’s Worst Foe,” J. H.
Peterman, Deputy State Director for
Iowa, U. S. Savings Bond Division,
U. S. Treasury Department.

Talk — “ Some Observations,” N. P.
Black, State Superintendent of Bank­
ing, State of Iowa.
Music—Estherville Trio.
Address—“ The Source of Our Salva­
tion,” Jeff Williams, attorney, Chickasha, Oklahoma.
Talk—Chairman, Group 2 Council Ad­
ministration, Iowa Junior Bankers
Association.
Remarks—Frank Warner, secretary,
Iowa B a n k e r s Association, Des
Moines, Iowa.
5:00 Dinner at the Skylin#Çlub. No
after-dinner program’.

Announces Candidacy
Harry W. Schaller, president of the
Citizens First National Bank of Storm
Lake, Iowa, has announced his candi­
dacy for the office of president of the
Iowa Bankers Association.
At the 1947 convention, Mr. Schaller,
in the interests of harmony and good

W e lc o m e

to

CHARLES CITY
W hen bankers of Group 3 reach Charles
City W ednesday, M ay 2 6 , for their Annual
Group Meeting, they w ill find a prosperous
Iowa town with every member of the Floyd
County Bankers Association eager to please
them.

A fine program has been arranged,

so let’s all attend!
H A R R Y W. SCHALLER
Candidate for President of
Iowa Bankers Association

WEDNESDAY, MAY 26
M EM BERS OF TH E FLO YD CO U N TY
B A N K E R S A S S O C IA T IO N
CITIZENS NATIONAL BANK, CHARLES CITY
COMMERCIAL TRUST & SAVINGS BANK, CHARLES CITY
FIRST STATE BANK, NORA SPRINGS
FIRST SECURITY BANK & TRUST CO., CHARLES CITY
FIRST STATE BANK, ROCKFORD

Nort hwest ern Banker, May, 1948


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Federal Reserve Bank of St. Louis

sportsmanship, withdrew his candi­
dacy and threw his support to W. W.
Blasier, now president. At that time
it was the general consensus that Mr.
Schaller should receive the unanimous
endorsement of the association at the
1948 convention to be held in October.
In response to the various inquiries
that have been made of him by friends
throughout the state, Mr. Schaller is
now writing them to give his assur­
ance that he definitely is still a candi­
date for the office of president.
Mr. Schaller has given many years
of active service to the Iowa Bankers
Association. He has also been active
in the work of the American Bankers
Association. His qualifications for the
presidency of the Iowa Bankers Asso­
ciation are well recognized.

Iowa News

Charles

City

79

T
town

M A I N S T R E E T of C h arles C ity , Io w a , (pictured above), reflects the heavy business activity carried on
in this famous Iowa community. Local industry and agriculture combine to make this one of the Hawkeye state’s popular meeting spots.

HEN visiting bankers from over
Iowa and the rest of the country
arrive in Charles City Wednesday,
May 26th, for the annual Group 3
bankers meeting, they will find them­
selves entering a typical Iowa city
boasting of balanced industry and agri­
culture.
As an Iowa manufacturing city stra­
tegically located in the very center of
the finest farm land of the nation,
citizens of Charles City and farmers
of her trade territory are keenly aware
that their mutual welfare depends on
a useful, friendly relationship. Her in­
dustries being closely associated with
agriculture reflect this viewpoint and
the farmers of this community in turn
realize that much of agriculture’s fu­
ture welfare stems from industry.
Charles City, the county seat of
Floyd county, has a population of ap­
proximately 11,000 with a trade terri­
tory population of 27,000. Home of
the first farm tractor, Charles City is
proud of her manufacturing concerns,
the Oliver Corporation, manufacturers
of farm and industrial tractors; Dr.
Salsbury’s Laboratories, manufactur­
ers of nationally known poultry and
livestock medicines; the George P.
Smith Company, millwork manufac­
turers; the Belmont Corporation, build­
ers of fine radios; the Walsh Manufac­
turing Company, producers of electri­
cal equipment, and Wilson & Company,
poultry processors. Charles City is
also the home of the Sherman Nurs­
ery, among the world’s largest ever­
green growers, and the Capital Tobac­
co Corporation, widely known distribu­
tors of tobacco and allied lines. Ample
daily newspaper coverage is given by
the Charles City Daily Press.
Three railroads, the Chicago, Mil­
waukee, St. Paul & Pacific: the Illinois
Central and the Charles City Western
with Rock Island connections, serve

W


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Federal Reserve Bank of St. Louis

the city. One bus line, the Jefferson,
also affords good connections. Located
on U. S. Highways 18 and 218, and
Iowa Highway 14, four motor freight
lines operate trucks to and from
Charles City offering twenty-four hour
accommodations. A modern municipal
airport serves the aviation needs of its
citizens.
Charles City is a financially sound
community with three banks and one
building and loan association. These
banks are the Citizens National, the
Commercial Trust and Savings and
the First Security Bank and Trust
Company. The combined resources of
the banks total nearly $12,000,000.
Efficient electric energy and gas are

SPicneekbin

provided for the city by the Iowa Pub­
lic Service Company at advantageous
rates. The city’s water supply, se­
cured from three artesian wells, is
particularly fine for factory purposes.
The Cedar River, flowing through
the heart of the city, offering a setting
of unusual beauty for its landscaped
parks and hundreds of attractive
homes. Located conveniently among
its 2,800 homes are four public grade
schools and a new junior and senior
high school, as well as a Catholic
Parochial grade and high school. The
Cedar Valley Hospital, municipally
operated, affords facilities for nearly
one hundred patients and serves a
wide surrounding area.

SPefrwce ¿¡Banking'

Central National Ba n k
IN

C H IC A G O

ROOSEVELT ROAD AT HALSTED STREET
M em ber F ederal Deposit Insurance Corporation

•

M ember F ederal R eserve System
Nort hwest ern Banker, May, 1948

80

Iowa News

A splendid park and playground sys­
tem, municipally o w n e d , provides
healthful recreation for all ages. Lion
Field offers excellent sporting facilities
for athletic activities of the commu­
nity. A modern municipal swimming
pool, which is under construction, two
modern theaters, the hospitable Coun­
try Club and golf course, a carefully
supervised Y.M.C.A., and well de­
veloped picnic parks made Charles
City an inviting community for all the
family.
Located in an abundant fish and
game region, Charles Citians are ar­
dent sportsmen and their hours in the
outdoors are well rewarded.
The standard of living in Charles
City is exceptionally high, while taxes,
rents and other living costs are low.
Fresh, nourishing food from her sur­
rounding farms, stable industries, fine

schools, churches, wholesome recrea­
tion, and friendly people, all make it
a city in which you will find some of
that true American style of living that
millions abroad can only dream about.

Dwight James, pastor, Central
Methodist C h u r c h, Charles
City, Iowa.
Address of Welcome — Hon.
Harold S. Henry, mayor of
Charles City, Iowa.
Response to Address of Wel­
Group 3 Program—
come—Albert Halvorson, presi­
CHARLES CITY
dent, St. Ansgar Citizens State
Morning
Bank, St. Ansgar, Iowa.
9:30 Visiting a n d Registration —
Talk — “Today’s Challenge in
Charles City Country Club.
Banking,” W. W. Blasier, presi­
Registration fee $5.00.
dent, Iowa Bankers Associa­
Afternoon
tion; president, Farmers State
12:15 Luncheon—Charles City Coun­
Bank, Jesup, Iowa.
try Club.
Talk—“Some Observations,” N.
2:00 Meeting Called to Order—M. J.
P. Black, State Superintendent
Klaus, chairman, Group 3; vice
of Banking, Des Moines, Iowa;
president, First Security Bank
cashier, Perry State Ba n k ,
& Trust Company, Charles City,
Perry, Iowa; president, Dallas
Iowa.
County Savings B a n k , MinInvocation — Rev. Clarence
burn, Iowa.
Talk—M. S. Tucker, vice presi­
dent and general sales man­
ager, The Oliver Corporation.
Talk—“Farm Equipment Fi­
nancing,” Charles R u n n i n g,
CONDENSED STATEMENT
credit and collection manager,
The Oliver Corporation.
Talk—“Junior Bankers,” C. W.
Conn, chairman, Group 3 Coun­
IN ST. L O U I S
cil of Administration, Iowa Jun­
ior Bankers Association; vice
A t the Close of Business, A p ril 12, 1948
president, Union-Whitten State
Savings Bank, Union, Iowa.
Talk—“ Inflation’s Worst Foe,”
RESOURCES
J. H. Peterman, Deputy State
Director for Iowa U. S. Savings
Cash and D u e from B a n k s
$ 1 1 8 ,0 6 5 ,0 3 2 .2 6
Bond Division, U. S. Treasury
U . S . G o v ern m en t Securities
1 3 7 ,3 5 2 ,2 8 3 .0 1
L oans and D iscou n ts
Department, Des Moines.
1 7 1 ,3 5 4 ,7 1 0 .5 1
O ther B o n d s an d Stocks
1 0 ,1 1 6 ,0 4 7 .5 7
Remarks—Frank Warner, sec­
Stock in F ederal R eserve B a n k
6 1 2 ,0 0 0 .0 0
retary,
Iowa Bankers Associa­
B ankin g H o u se , Im p ro v e m e n ts, Furniture
tion, Des Moines.
and F ixtu res
3 1 2 ,7 2 8 .3 0
O ther R e a l E s ta te O w ned
8 6 9 ,0 0 2 .0 0
6:30 Dinner—St. Charles Hotel.
C u stom ers’ L ia b ility a / c L etters o f C red it,
Music — Charles City High
A ccep tan ces, etc.
1 ,6 9 7 ,7 6 3 .8 6
School String Ensemble; vocal
Accrued Interest R eceivable
1 ,0 8 5 ,7 3 1 .3 6
O verdrafts
selections, Mrs. C h a r l o t t e
5 1 ,4 3 8 .3 3
O ther Resources
_________ 2 ,3 2 9 .6 5
Smith, soprano; accompanist,
$ 4 4 1 ,5 1 9 ,0 6 6 .8 5
Miss Esther Charlotte Smith.
Address—“Up and Atom,” Jeff
LI ABI LI TI ES
Williams, attorney, Chickasha,
Oklahoma.
C apital Stock
$ 1 0 ,2 0 0 ,0 0 0 .0 0
Surplus
1 0 ,2 0 0 ,0 0 0 .0 0
For the Ladies
U ndivided Profits
8 ,2 6 8 ,1 1 6 .6 5
2 8 ,6 6 8 ,1 1 6 .6 5
Special
entertainment
has been pro­
R eserve for T a x e s, In terest, etc.
1 ,7 9 3 ,4 0 1 .8 6
U nearned D iscou n t
vided for the ladies, so bring them
2 9 0 ,0 4 2 .5 6
L iab ility a / c L etters o f C red it, A ccep tan ces, etc.
1 ,7 4 2 ,5 3 1 .1 1
along.

FIRST

NATIONAL

D e m a n d D e p o sits
T im e D e p osits
U . S. G ov ern m en t D e p o sits

BANK

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

T o ta l D ep osits

Waterloo Man Elected
4 0 9 ,0 2 4 ,9 7 4 .6 7
$ 4 4 1 ,5 1 9 ,0 6 6 .8 5

St. L o u i s ’ L a r g e s t

Ba n k

M e m b e r F e d e r a l D e p o s it In su r a n ce C orp ora tion

Northwestern Banker, May, 1948


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

Henry F. Hoffer, assistant cashier
of the National Bank of Waterloo, was
elected president of the Black Hawk
Bankers’ Association at the recent an­
nual meeting of the group.
He succeeds William A. Dewees.
Other officers elected include Hoyt
Messerer, Cedar Falls, first vice presi­
dent; Raymond Bushing, Hudson, sec­
ond vice president; John Sanders,
Waterloo, secretary, and Vernon Hall,
Waterloo, treasurer.

Iowa News

in d iis trif in V inton i s V a rie d
ORE than 100 years ago govern­
ment surveyors came to what is
M
now Benton county and ran the lines
and marked the corners. The Indians
had left, there were never very many
of them, and the white people came
in and settled without fear. Vinton
bankers promise that visitors need
have no fear in attending the fine
Group 7 meeting there Thursday, May
27th.
The actual platting of the town
was in 1849, under the name of Fre­
mont. This was soon changed to
Vinton.
There was the usual scuffle over
the county seat, but it was early lo­
cated at Vinton, and here it has re­
mained.
A frame courthouse was built on the
present courthouse square. It burned
very shortly. Fortunately the clerk
and treasurer were sleeping in the
building and saved the records by
throwing them out of the windows.
Next a brick building was built and
used until 1905 when the present build­
ing was erected. It took four elections
to get this building and they had to
abandon the idea of issuing bonds,
paying for it by direct taxes, a five
mill levy for two years.
When the settlers came they brought
their religion with them, and early
established churches. The Presbyte­
rian was the first organized in 1852.
It was quickly followed by the Method­
ist and Baptist, later by others so
that there now are eleven churches
with large memberships and commo­
dious buildings.
Banking came fairly early. The
first bank was established by J. C.
Traer, with the help of Judge George
Green of Cedar Rapids, who was one
of the early bankers of the state.
Banks in those days were a far cry
from present day banks. There was
no regulation and one could lay a
board over a cracker barrel and hang
out a sign and he had a bank if the
people trusted him. The whole sys­
tem was founded on the confidence of
the people. The Watson bank was
established later in the same year and
for many years was a great force in
the community. Other banks followed,
prospered and died. Vinton now has
two, the State Bank of Vinton and the
Benton County Bank and Trust Com­
pany, with deposits totaling more than
six million.
After many years as a village, Vin­
ton was incorporated as a city in 1869.
The present population is about 5,000.
The Iowa Electric Light & Power
Company furnishes gas and steam

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

heat. The city owns the electric light
and water plants. Three artesian wells
furnish an abundance of good water,
and the river is available for emer­
gencies. More than half a million
dollars is invested in this plant.
The Iowa School for the Blind is
located here and it is a wonderful in­
stitution.
The city has a park of about seventy
acres, largely in its natural state.
There is a country club with fine golf
links.
Vinton was a pioneer in the canning
business, Mr. Watson having estab­

JO IN

81

lished a factory in 1880. The canning
business is now owned by the Minne­
sota Valley Canning Company and
employs a large number of people.
The Vinton Hybrid Corn Company
raises and markets a large amount of
seed corn.
The Vinton Produce Company em­
ploys over one hundred people and
processes a large amount of produce.
Every line of business is well repre­
sented and our stores compare favor­
ably with stores of even larger places.
There is a good hospital with a new
and enlarged and improved building
in prospect.
The Chamber of Commerce is active
in civic matters.

USIN OUR M E E T IN G

V I N T O N

Group 7 Welcomes You
THURSDAY, MAY 27
Bankers of Vinton and Benton County
extend a cordial welcome to the bankers
of Iowa to attend the Group 7 meeting
May 27th in Vinton.
B E N T O N C O U N T Y B A N K E R S A S S O C IA T IO N
Benton County Bank & T rust Co., Vinton
Benton County Savings Bank, N orw ay
Benton County State Bank, Blairstown
Citizens N ational Bank, Belle Plaine
Farm ers Savings Bank, W alford
K eystone Savings Bank, Keystone
M t. Auburn Savings Bank, M t. Auburn
Peoples Savings Bank, A tkin s
State Bank of Vinton, Vinton
Urbana Savings Bank, Urbana
Van Horne Savings Bank, V an Horne
W atk in s Savings Bank, W atk in s

Nort hwest ern Banker, May, 1948

82

I owa News

The early settlers h o p e d and
dreamed of a railroad and finally, large­
ly through their own efforts, the rail­
road reached Vinton in 1869. The road
went through the usual mergers and
reorganizations. It is now a part of
the Rock Island system.
To sum up, Vinton is a grand place
to make a living and enjoy the boun­
ties of Iowa.

Group 7 Program
VINTON
Forenoon
Grounds will be open for golf. Ev­
eryone welcome to use club house
facilities.
Afternoon
12:30 Visiting and Registration —
Country Club Hall (registration

★

★

fee $5.00).
Visiting, group discussions, golf
and refreshments.
4:30 Meeting of officers of each coun­
ty association, group officers
and officers of Iowa Bankers
Association, Country Club Hall.
Evening
Lee Chandler, Group Chairman,
presiding.
7:00 Dinner—Country Club Hall.
Invocation.
Address of Welcome—P. G. Folvag, chairman, Benton County
Bankers Association.
Response to Address of Wel­
come — Geo. A. Stephenson,
cashier, First National Bank,
Waverly, Iowa.
Talk — “ Today’s Challenge in
Banking,” W. W. Blasier, presi­

SOUND FINANCING

★

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CONVENIENCE for the BORROWER
Field W arehouse Receipts issued by WILLIAM H. BANKS
WAREHOUSES, Inc., furnish desirable collateral— make inven­
tories available for Credit Expansion— and give your Bank a
good and valid lien against the inventories held thereunder—
whether BEANS or BACON . . . CANNED G O O D S or SEED
. . . STEEL or CO AL . . . or 1,001 other stable commodities.
Inventories represented by W arehouse Receipts form the basis
for Sound and Economical Credit Expansion.

Write or telephone us today for complete details.

W illiam H. Banks W arehou se s, Inc.
Gener al Offices:

209 S. LA SALLE STREET
CHICAGO. ILLINOIS
Telephones: State 0204-0205
DES MOINES, IO W A
W E S L A C O , TE XA S
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A N G O L A , INDIANA
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DES MOINES, IO W A
STATEM ENT

OF

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

RESO URCES
C ash

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

D e p o s it s — M e m b e r s

U . S . G o v e r n m e n t O b l i g a t i o n s ....................

1 8 ,0 1 0 ,9 8 7 .9 2

D e p o s i t s —O t h e r s

A d van ces

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

A c cru e d

to

M e m b e r s ........................................

A c co u n ts

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D i s c o u n t a n d E x p e n s e .................................
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In te re s t

5 ,3 6 1 .6 0

R e c e iv a b le

6 3 , 2 9 5 .0 1

O t h e r R e s o u r c e s ...........................
F u r n i t u r e a n d E q u ip m e n t
( C o s t $ 1 0 , 3 8 6 . 2 6 ) .............

7 ,1 6 7 .7 4

C A P IT A L

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

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

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

6 9 ,5 7 3 .1 2

I n t e r e s t P a y a b l e ..............................

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* C o n s o l ¡d a te d
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AND

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In .

5 4 3 .9 0
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S u rp l us:
R e s e r v e s .................... 5 1 , 5 8 5 , 2 8 1 . 2 1

1.00
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1 5 9 ,0 6 0 .7 7

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

* P a r t i c i p a t i o n in 5 3 2 1 , 2 5 0 , 0 0 0 C o n s o l i d a t e d F e d e r a l H o m e L o a n B a n k O b l i g a t i o n s is s u e d b y t h e H o m e L o a n
B a n k B o a r d a n d n o w o u t s t a n d in g , w h i c h a r e t h e j o i n t a n d s e v e r a l o b li g a t io n s o f t h e e l e v e n F e d e r a l H o m e
Loan B a n ks.

Nort hwest ern Banker, May, 1948


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

The Group 4
Program in Waukon
The business sessions of the Group
Four meeting in Waukon on Friday,
May 28th, will be held at the Cote
Theatre in the business district. The
social hour will take place at the Wau­
kon Country Club, and the banquet
in the evening will be held at St. Pat­
rick’s Gym.
. Details of the program are as fol­
lows:
Morning
3:30 Cote Theatre—Registration (fee
$3.00 per person, including ban­
quet).
11:00 Call to Order-—J. V. Keppler,
chairman, Group 4; cashier,
First National Bank, Dubuque,
Iowa.
Invocation—Rev. Nelson Preus,
pastor, St. John’s Lutheran
Church, Waukon, Iowa.
Address of Welcome—Mayhew
Eaton, teller, Waukon State
Bank, Waukon, Iowa.
Response—Joe Menges, casher,
Alta Vista State Bank, Alta
Vista.
Naming Committees — Resolu­
tions and Nominating.
Talk — “Today’s Challenge in
Banking,” W. W. Blasier, presi­
dent, Iowa Bankers Associa­
tion: president, Farmers State
Bank, Jesup, Iowa.
Afternoon
Adjourn for lunch.
Call to Order—J. V. Keppler,
chairman, Group 4; cashier,
First National Bank, Dubuque,
Iowa.
1:45 Musical number.
2:00 Talk—“ Some Observations,” N.
P. Black, State Superintendent
of Banking, Des Moines, Iowa:
cashier, P e r r y State Bank,
Perry, Iowa; president, Dallas
County Savings Bank, Min­
burn, Iowa.
2:30 Address — “Conditions in Rus­
sia,” Rev. G. B. Schroeder. pas-

12:15
1:30

31, 1948

L IA B IL IT IE S

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

dent, Iowa Bankers Associa­
tion; president, Farmers State
Bank, Jesup, Iowa.
Talk—“ Some Observations,” N.
P. Black, State Superintendent
of Banking: cashier, Perry State
Bank, Perry, Iowa; president,
Dallas County Savings Bank,
Minburn, Iowa.
Address — “The Human Don­
key,” Jeff H. Williams, attor­
ney, Chickasha, Oklahoma.
Remarks—Frank Warner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines, Iowa.
Adjournment.

2:30

Iowa News

t o r , Baptist Church, Elgin,
Iowa. Born in Russia and lived
there for 33 years. Taught in
high schools in Russia and
served as secretary to the Bol­
shevik Commissariat (not by
choice).
3:00 Talk—“ Inflation’s Worst Foe,”
J. H. Peterman, deputy state
director for Iowa, U. S. Savings
Bonds Division, U. S. Treasury
Department, Des Moines, Iowa.
3:15 Address — “ Is Socialism Our
Goal?” , John L. Johnson, attor­
ney: secretary, Ch a mb e r of
Commerce, Decorah, Iowa.
4:00 Talk—“A.I.B. Study Group,” Al­
vin S. Renaas, auditor, Decorah
State Bank, Decorah, Iowa.
4:10 Remarks—Frank Warner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines, Iowa.
4:25 Report of Committees — Nomi­
nating and Resolutions.
4:30 Adjourn.
Conference — County Associa­
tion officers.
Social Hour—Waukon Country
Club.
6:30 Banquet at St. Patrick’s Gym.
Marimba Solos — Miss Joyce
Larson, Marlyn Grangaard, ac­
companist, Wa uko n, Iow a;
state and national winner mu­
sic contest.
Address-—“ It Ain’t Necessarily
So,” Jeff Williams, attorney,
Chickasha, Oklahoma.
Entertainment for the ladies at Alla­
makee Hotel 1:30 to 4:30 p. m.

tional Bank. A year ago Frank Welch,
president of the Peoples Bank and
Trust Company in Cedar Rapids,
walked off with this prize for his pow­
erful shot.
The annual bank summer party of
the Iowa-Des Moines National Bank
will be held at Wakonda Club Tues­
day, May 18th.

Joins Burlington Bank
Frank LaPoint, former superintend­
ent of the Burlington, Iowa, finance
department, became associated with
the Farmers and Merchants Savings
Bank last month.

R

of the Central National Bank and
Trust Company, is in Hot Springs,
New Mexico, where he expects to re­
main for some time because of ill
health. Mrs. Capps accompanied him
on the trip.
Clyde H. Doolittle, vice president

and trust officer of the Iowa-Des
Moines National Bank, was guest
speaker at a recent meeting of the
Chariton, Iowa, Rotary Club.
George Nelson, assistant cashier in

charge of the Central National Bank
and Trust Company’s personnel de­
partment, was married last month to
Doris Christensen, savings department
teller at the same bank.
Prize for the longest drive in the
golf tournament held in connection
with the A.B.A. Spring Council Meet­
ing at French Lick, Indiana, last
month went to Harold Klein, vice
president of the Iowa-Des Moines Na­


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Federal Reserve Bank of St. Louis

The announcement was made by
C. H. Walsh, Jr., cashier of the bank.
LaPoint was superintendent of fi­
nance there for 18 years.

Resigns at Carroll
Eldon J. Hess, assistant cashier of
the Carroll County State Bank, at Carroll, Iowa, resigned last month to go
into business for himself.
Mr. Hess has purchased the fran­
chise of the Culligan Water Softener
service for Audubon county.

A. C. Blanchard
Arnold C. Blanchard, 61, chairman
of the Council Bluffs State Savings

Statem ent o f C on dition
April 12, 1948
A S S E T S
Cash on Hand and on Deposit with Banks.............$ 7,217,817.74
United States Government Securities........................ 11,822,165.60
Other Bonds and Securities............................................

202,146.38

Loans and Discounts..........................................................

6,842,683.22

Security National Bank Building, Vault and Fix­
tures .....................................................................................
Federal Reserve Bank Stock............................................

340,368.20
28,500.00

Other Assets .......................................................................

1,476.89
$26,455,158.03

D vs J lo in e s N ew s
OY CAPPS, popular vice president

83

L I A B I L I T I E S
C a p ita l.....................................................................................$

500,000.00

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

500,000.00
60,241.49

Deposits

................................................................................ 25,394,916.54
$26,455,158.03

OFFICERS
Charles R. Gossett, P r e s i d e n t
B. M. Wheelock, V i c e P r e s i d e n t
Robert W. Lewis, A s s i s t a n t C a s h i e r
Albert C. Eckert, V i c e P r e s i d e n t
Frank H. Abel, A s s i s t a n t C a s h i e r
Daniel B. Severson, V i c e P r e s i d e n t
Charles H. W alcott, A s s i s t a n t C a s h i e r
R. Earl Brown, C a s h i e r
Orville Boe, A s s i s t a n t C a s h i e r
TRU ST
Howard L. Johnson,

T ru st

O ffic e r

OFFICERS
D. W. Jurgemeyer,

A s s i s ta n t T r u s t O ffic e r

C E cu R rr
of Sioux City
Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, May, 1948

84

Iowa News

Bank’s board of directors, died last
month.
Mr. Blanchard, a veteran banker,
had been in failing health for the last
year. He suffered a fractured skull in
a fall over a year ago, and had not
been active in banking since that time.
Mr. Blanchard worked for and man­
aged banks in Iowa, Idaho, and Ne­
braska. He went with the Iowa state
banking department in 1929. Four
years later, he became executive vice
president of the State Savings Bank
in Council Bluffs.
Mr. Blanchard was elevated to the
bank presidency in 1937. He headed
the bank until 1946, when his son.
Clyde, became president.

Attend A.B.A. Meeting
A strong delegation of Iowa bankers
attended the spring A.B.A. Council
Meeting at French Lick, Indiana, last
month. The group included Harold P.
Klein, vice president, Iowa Des-Moines
National Bank; Frank C. Welch, presiYOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

dent, Peoples Bank and Trust Com­
pany, Cedar Rapids; W. W. Blasier,
president, Farmers State Bank, Jesup,
and president, Iowa Bankers Associa­
tion; Ben S. Summerwill, president.
Iowa State Bank and Trust Company,
Iowa City; Max von Schrader, presi­
dent, Union Bank and Trust Company.
Ottumwa; Arthur T. Donhowe, vice
president, Central National Bank and
Trust Company, Des Moines, and B.
A. Gronstal, president, Council Bluffs
Savings Bank.

Add Field Man
James A. Thorson has been added to
the staff of the Peoples State Bank
of De Smet, South Dakota, as a field
man. The Peoples State Bank has
been keenly interested in soil control
for some time, especially in weed and
insect control programs, in which field
Mr. Thorson is well experienced. It
will be his task to assist farm owners
in the De Smet territory in the eradi­
cation of weeds and pests so as to
produce better crops.
At the same time it was also an­
nounced by Vice President S. N. Meyer
of the Peoples State Bank that remod­
eling of the bank building has been
completed on the interior. Glass brick
has been used to enclose all windows,

DES MOINES BUILDING-LOAN &

MERCHANTS
MUT UA I .

BONDING
COMPANY
Incorporated 1933

SAVINGS ASSOCIATION
Oldest in Des Moines
210 6th Ave.
Dial 4-7119
E L M E R E . M IL L E R
Pres, and Sec.

H U B E R T E. J A M E S
Asst. Sec.

FO R Y O U R E N J O Y M E N T . . .
Listen to the
“ W ORLD
K R N T , 1350 KC

OF M U S IC ”
1 to 1 :3 0 p.m . Sundays

H am « Office
S A V IN G S & L O A N B U IL D IN G

D es M oin e s, Iowa

T h is is Io w a’s oldest surety com pany.
A

progressive

com pan y

with

knotty pine and celotex line the walls
and ceiling with new inset ceiling
lights added. An entire new heating
system was installed last fall and with
the installation of air conditioning this
summer the remodeling program will
be complete.

Annual School at Ames
The unique school in agricultural
credit, presented by Iowa State College
in cooperation with the Iowa Bankers
Association, will be held again this
year, it was announced last month.
The third annual session will take
place June 14th to 25th at the college.
Designed to give a foundation in the
extension and administration of agri­
cultural credit, it attracts not only
bankers, but employes of production
credit associations, graduate students
in economics, and others interested in
the handling of agricultural credit.
Considerable interest has also been
shown outside of Iowa where such a
course of instruction is not available.
Last year the school attracted 44
men from three states.
Requests for information about the
school this year have been so numer­
ous that enrollment may have to be
limited, sponsors said. The studies
are planned so that they are complete
in a single year, but it takes attend­
ance at two years to cover all the
material to be presented.
Students will take up the needs,
types, sources and function of agricul­
tural credit, farm management and
farm planning, administration of agri­
cultural credit and general agriculture
as the four main divisions of their
study this year.
Instructors will be from the college
faculty and from the ranks of active
bankers and farmers.
The complementary course next
year will include agricultural policy,
appraisal of real estate and other prop­
erty, additional phases of the admin­
istration of agricultural credit, and
current subjects in general agricul­
ture.
H. B. Howell, assistant extension
economist, is in charge of arrange­
ments for the course.

e xp e ri­

enced, conservative m anagem ent.

Heads Boone Association

W e are proud o f our two hundred
bank agents in Iowa.

Morris F. Miller, vice president of
the Boone State Bank and Trust Com­
pany, was elected president last month
of the Boone County Bankers Associa­
tion. He succeeds C. W. Anderson,
executive vice president of the City
State Bank at Madrid. Leonard A.
Good, assistant cashier of the City
State Bank at Ogden, continues as vice
president. T. T. Donhowe, Jr., of the
same bank was named secretary-treas­
urer.

To be the exclusive representative o f
this com pany is an asset to your bank.

E. H. W A R N E R
Secretary and Manager

W . W,

W ARNER

Assistant Secretary

FOURTH and CRAN D
DCS MOINES

n or t hwe s t er n Banker, May, 1948


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

Iowa News

Encased Postage Stamps
Once Popular Currency
The most peculiar money ever used
in America is that which was invented
in New York City by John Gault dur­
ing the Civil War. It was formed by
placing regular United States postage
stamps in flat circular brass cases with
the faces protected by a thin sheet
of mica.
Due to the shortage of regular coin­
age this stamp currency found a ready
circulation and Mr. Gault, who was
essentially a business man, had his
idea patented and conducted a profit­
able business manufacturing these me­
tallic cases.
Aside from serving the purpose of
fractional currency, it was used as a
me d i u m of advertising. Business
houses would buy large quantities of
these encased stamps with their names
stamped on the back of them, and pay
them out to their customers for small
change.
This money was issued in various

denominations, from 1 to 90 cents, al­
though some denominations are ex­
cessively rare and are believed to
have been issued only as samples.
Collectors of both stamps and coins
regard this series of necessity cur­
rency as being one of the most inter­
esting of the numerous issues of the
United States, which has been espe­
cially conspicuous for its various
freakish circulating mediums. Some
of the premiums now paid for these
homely substitutes for real money ac­
tually exceed those commanded by
many of the far more pretentious and
handsome coins struck at the United
States mints during and since the Civil
War.—By Stuart Mosher, Editor of
The Numismatist.
STAMPS — COINS
Bought and Sold
ESTATES SETTLED — TAX AND
INSURANCE APPRAISALS
GOLD,

Silver,

Copper

Coins

Purchased

Hollinbeck Stamp & Coin Co.
Royal Union Bldg.

Des Moines

85

C O N V E N T IO N S
M a y 5-8, N ation a l A ssociation of Bank
A u d itors and C o m p trollers, M id C ontinent R egion al Conference,
D allas, B aker H o te l.
M ay

10-13, Iow a G roup
N orthern G roups.

M eetings,

M ay

12-13, Indiana Bankers A s s o c i­
ation,
A nnual
C on ven tion ,
In ­
dianap olis, H o te l C layp o ol.

M ay

25-28, Iow a G roup
Southern G roups.

M eetings,

June 2-4, Illin o is Bankers A ssociation,
Annual
C o n ven tion ,
C h icago,
Edgew ater Beach H o tel.
June 7-8, Idaho Bankers A ssociation ,
A nnu al C onvention, Sun V a lle y .
June 7-11, A m e rican Institute of B a n k ­
in g, A n n u a l C onvention, Bu ffalo.
June 10-12, C o lorad o Bankers A sso c i­
ation, A n n u a l C on ven tion , G lenw ood Springs, H o te l C o lora d o.
June 11-12, N orth D akota and South
D akota Joint C onvention in the
T w in Cities, H o te l N ic o lle t.
J u n e 15-16, A n n u al C o n ven tion , M in ­
nesota Bankers A ssociatio n , M in ­
neap olis.
June 17-18, W y o m in g Bankers A sso c i­
ation, A nnual C o nvention, Sheri­
dan.

INDEX OF
ADVERTISERS
MAY. 1948
A
A lle n W a le s A d d in g M ach in e C o m p a n y . 20
A llie d M u tu a l C a s u a lty C o m p a n y ................ 47
A lly n , A . C. and C o m p a n y ................................. 41
A m e r ic a n E x p r e s s C o m p a n y ........................ 43
A m e ric a n N a tio n a l B a n k and T r u s t Co. .72

H
B a n k o f A m e r ic a ................................................... 38
B a n k e rs S erv ice C o m p a n y , In c .......................36
B a n k e r s T r u s t C o m p a n y — D e s M o in e s .. 87
B a n k s, W ill ia m H., W a r e h o u s e s , I n c .. . . 82
B e n to n C o u n ty B a n k e r s A s s o c i a t io n . . . . 81

C
C e n tra l H a n o v e r B a n k and T r u s t Co. . . . 1 2
C e n tra l N a tio n a l B a n k — C h i c a g o ................79
C e n tra l N a tio n a l B a n k and T r u s t C o.—
D es M o in e s ............................................................19
C e n tra l S ta te s M u tu a l In su ra n c e A s s n .. 46
C h ase N a tio n a l B a n k ......................................... 4
C ity N a tio n a l B a n k and T r u s t Co.—
C h ic a g o
................................................................... 37
C ity N a tio n a l B a n k and T r u s t C o.—
K a n s a s C ity ......................................................... 61
C lin to n C o u n ty B a n k e r s A s s o c i a t io n . . . 70
C o m m e rc e T r u s t C o m p a n y ...............................64
C o n tin e n ta l Illin o is N a tio n a l B a n k and
T r u s t C o m p a n y .................................................. 11
C o n tin e n ta l N a tio n a l B a n k — L i n c o l n ... 59
C ouncil B lu ffs
B a n k s .........................................75

I)
D a lla s C o u n ty B a n k e r s A s s o c i a t io n ..........73
D a lto n P re ss, T h e .................................................. 77
D a v e n p o rt, P. E ., and C o m p a n y ..........61-84
D e L u x e C h eck P rin te rs, In c ......................... 37
D es M oin e s B u ild in g , L o a n and S a v in g s
A s s o c ia tio n
............................................................84
D ie b o ld , In c ................................................................... 42
D o a n e A g r ic u ltu r a l Serv ice, In c .................3 6
D r o v e r s N a tio n a l B a n k ......................................68

E
E m m e t C o u n ty B a n k e r s A s s o c ia tio n . . . . 76
F

F a r m e r s M u tu a l H a il In su ra n c e Co.
o f Io w a ......................................................................47
F e d e ra l H o m e L o a n B a n k — D e s M o in e s . 82
F ir s t
N a tio n a l B a n k — C h ic a g o ................... 7
F ir s t N a tio n a l B a n k — L in c o ln ....................... 65
F ir s t
N a tio n a l B a n k — M cC ook , N eb r. . . 6 2
F ir s t
N a tio n a l B a n k — M in n e a p o lis .......... 48
F ir s t
N a tio n a l B a n k — O m a h a ...................... 60
F ir s t N a tio n a l B a n k — St. J o s e p h ................ 60
F ir s t N a tio n a l B a n k — St. L o u i s .................. 80
F ir s t N a tio n a l B a n k — S io u x C i t y ................71


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Federal Reserve Bank of St. Louis

F ir s t W is c o n s in N a tio n a l B a n k .....................13
F lo y d C o u n ty B a n k e r s A s s o c i a t io n ..........78

G
G u a r a n ty

T ru st

C o m p a n y .................................32
H

H a ls e y , S tu a rt and C o m p a n y , Inc.-............ 42
H a r r is T r u s t and S a v in g s B a n k .................. 44
H o llin b e c k S tam p and Coin C o m p a n y ... 85
H o m e In su ra n c e C o m p a n y ............................. 5
In t e r -S ta te N a tio n a l B a n k — K a n s a s
C ity
.............................................................................62
I o w a -D e s M oin e s N a tio n a l B a n k ................ 88
Io w a L ith o g r a p h in g C o m p a n y ....................... 70
Ir v in g T r u s t C o m p a n y ........................................ 10

K
K och

B r o th e r s ......................................................... 84
I,
L a M on te , G e o rg e and S o n ............................. 3
L e s s in g A d v e r tis in g C o m p a n y ....................... 71
L iv e S to c k N a tio n a l B a n k — C h ic a g o . . . . 29
L iv e S to c k N a tio n a l B a n k — O m a h a ..........66
Live S to c k N a to n a l B a n k — S io u x C i t y .. 54

M

M a n u fa c tu r e r s T r u s t C o m p a n y .....................31
M e rc h a n ts M u tu a l B o n d in g C o m p a n y ... 84
M e rc h a n ts N a tio n a l B a n k ................................ 2
M e rrill L y n c h , P ierce, F e n n e r & B e a n e . 40
M in n e so ta C o m m e rc ia l M e n ’ s A s s n ............52
M ississip p i V a lle y T r u s t C o m p a n y ............. 74

N
N a tio n a l C ash R e g is t e r C o m p a n y ............... 9
N a tio n a l C ity B a n k — N e w Y o r k ................. 6
N ew Y o r k T r u s t C o m p a n y ............................. 8
N o rth e rn T r u s t C o m p a n y .................................50
N o r th w e s te r n N a tio n a l B a n k ..........................53
O m ah a

N a tio n a l

O

B a n k ........................................ 27
P

P a in e , W e b b e r , J a c k so n and C u r t is ..........41
P o lic y h o ld e r s N a tio n a l L ife In su ra n c e
Com pany
.................................................................47
P u b lic N a tio n a l B a n k and T r u s t C o......... 52
It
R e c o r d a k C o rp o r a tio n ................................. 3 4-35
R o llin s , R ich a rd R ., In c ..................................... 39
R o y a l B a n k o f C a n a d a ........................................ 56

S
St. P a u l T e r m in a l W a r e h o u s e C o ..................14
S c a rb o ro u g h and C o m p a n y ................4 5 -6 5 -6 7
S e c u rity N a tio n a l B a n k — S io u x C i t y . . . . 83
S q u are D e al In su ra n c e C o m p a n y ................46
S to c k Y a r d s N a tio n a l B a n k — O m a h a . .. 63
T

T e n sio n E n v e lo p e C o r p o r a tio n .....................77
T o y N a tio n a l B a n k ................................................6 8

U
U n ite d

S ta te s

N a tio n a l

B a n k — O m a h a . .58

V
V a lle y B a n k and T r u s t C o m p a n y ................ 69

W
W a lt e r s , C h a rle s E ., C o m p a n y ....................... 62
W e s te r n M u tu a l F ire In s u ra n c e C o......... 46
W h e e lo c k and C u m m in s ................................... 41

June 19-July 3, G raduate School of
B an k in g, R utgers U niversity, N ew
B runsw ick, N ew Jersey.
June 21-23, W isc o n sin Bankers A sso ­
ciation, A n n u al C onvention, M il­
w aukee, H o te l Schroeder.
June 24-26, M ontana Bankers A sso c i­
ation, A n n u a l M eetin g , G lacier
Park, M any G laciers H o tel.
June 24-26, M ich igan Bankers A sso c i­
ation, Annual C onvention, M ack ­
inac Islan d , G rand H o te l.
July

8-10, N ebraska Bankers A sso c i­
ation C lin ic, Crete, D oane C o l­
lege.

A ugust 16-28, Financial P u b lic R e la ­
tion’s School of P u b lic R elations,
C h icago, N orthw estern U niversity.
A u gu st 23-Septem ber 4, Central States
S ch ool of B ankin g, U niversity of
W isc o n sin , M ad ison.
Septem ber 22-24, N ation al A ssociation
o f Supervisors of State Banks,
A nnual M eeting, L o u isv ille , K e n ­
tucky, H o tel B row n.
Septem ber 22-24, M ortgage Bankers
Association, 35th A n n u al C o n ven ­
tion, N ew Y o r k C ity, H o tel C o m ­
m od ore.
Septem ber 24-26, A ssociatio n of Bank
W o m e n , A n n u al C onvention, D e ­
troit, H o te l Fort Shelby.
Sep tem ber 26-29, A m erican Bankers
A ssociatio n , A nnu al C onvention,
D etroit.
O ct.

24-27, A n n u a l C onvention Iowa
Bankers A ssociatio n , D es M oin es,
H o te l Fort D es M oin es.

N o v em b e r 4-5, A .B .A . M id -C ontin ent
Trust C onference, C hicago.
N o v em b e r 10-11, N eb rask a Bankers
A ssociatio n , A n n u al C onvention,
O m ah a, H o te l F ontenelle.
N o v em b e r 29-D ecem b er 2, Financial
P ub lic R elations A ssociation. A n ­
nual
C o n ven tion ,
Hollywood,
F lorid a, H o lly w o o d Beach H o tel.

Nort hwest ern Banker, May, 1948

•86

1 1 1

the

DIRECTOR’S

m
Delayed Action
A merchant took out a fire insurance
policy and the same day his store and
contents burned to the ground. The
insurance company suspected fraud,
but couldn’t prove anything. It had
to content itself with writing the fol­
lowing letter:
“Dear Sir: You took out an insur­
ance policy at 10 a. m. and your fire
did not break out until 3:30 p. m. Will
you kindly explain the delay?”

Don t Stop Now
He: I hear you love music.
She: Yes, but keep on playing.

Toeing the Mark

So Thais How I Look

Burglar: What’re you openin’ that
safe with yer bare feet for?
Second Same: It’ll drive the finger
print experts crazy.

While visiting the zoo, a not-too-intelligent individual saw a baby deer.
Its keeper stood near-by.
“What kind of animal is that?” the
gentleman inquired.
“You mean you don’t know?” the
keeper replied. “What does your wife
call you every morning?”
“ Say,” exclaimed the visitor, “you
don’t mean to tell me that’s a skunk.”

Getting Expert Opinion
An insurance man says his company
recently took on a new office boy who
is a wonder. A man came into the
office the other day and asked: “Can
you insure my immortal soul?”
“ I don’t know,” the kid replied, “but
if you’ll wait a minute I’ll ask the
manager of the fire department.”

Political Debate
Safety Unconscious
Officer: Why were you racing
through town at that rate?
Man: My brakes were out of order
and I wanted to get home before there
was an accident.

Trapped
Hubby: The fellow on the third
floor boasts he’s kissed every woman
in this apartment building but one.
Wifey: I’ll bet that’s that stuck-up
Mrs. Murphy upstairs.

Easy Terms
“Would you like this parcel sent
C.O.D., sir?” the store clerk asked.
“What’s that mean?” inquired the
customer.
“Cash on delivery, sir.”
“Hmm, well that’s no good. Send
it Y. M. C. A.”
“What does that mean, sir?”
“You might collect in April,” was the
reply.

“Dad, what do pro and con mean?”
“Well, son, pro is your convincing
unanswerable argument, and con is
the other fellow’s contemptible drivel.”

Just Like a Woman
A little girl about six years old went
into a bank and asked to see the presi­
dent. A smiling clerk showed her into
his private office. She explained sol­
emnly that her girl’s club was raising
money, and would he please contrib­
ute?
The banker laid a dollar bill and a
dime on the desk and said, “You take
whichever one you want.”
She picked up the dime and said,
“My mother always taught me to take
the smallest piece,” but picking up the
dollar bill also, she added, “but so I
won’t lose this dime, I’ll take this piece
of paper to wrap it up in.”

Good Old Adam
For Adams lot
I feel no pity;
He never served
On a committee.

Answer That, My Friend
Annoyed Traveler: This is exasper­
ating! What good are timetables, if
your trains are always late?
Station Agent: But you must re­
member we have waiting-rooms. What
good would they be, if trains were al­
ways on time?

Thrift
Mistress: Did you mail my letter?
Maid: Yes, ma’am.
Mistress: Then why did you bring
back the four cents?
Maid: I just slipped the letter in the
box when no one was looking!

A Real Puzzle
Clergyman:
And now, children,
would you like to ask any questions?
Junior: Yes, sir. Please, how do
you get into your collar?

One’s Enough for Him
Sound Familiar
Bridge Player: What’s w r o n g ,
honey? I made the small slam, didn’t
I?

Wife: Oh, yes, but if you’d played
it the way you should, you wouldn’t
have made it.

First Drunk: May I preshent my
wife to you?
Second Same: No thanksh. I’ve
already got one.

Bottoms Up
A bottle baby has one advantage. It
doesn’t get cigarette ashes in its eyes.

Impossible
Gateman: You need a tonic.
Mill Hand: How do you know?
Gateman: You’re beginning to look
like the photo on your badge.
Nort hwest ern Banker, May, 1948


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

Fish Story 8,888
I wonder if a fish ever goes home
and lies about the size of the bait he
stole???


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Federal Reserve Bank of St. Louis

f X 'hrough lo n g experience in

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