Full text of The Northwestern Banker : May 1949, 54th Year, No. 742

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Federal Reserve Bank of St. Louis

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Bankers throughout Iowa will be attending their group
meeting this month. The officers of The Merchants
National look forward to the constructive programs and
discussions which traditionally characterize these
meetings.
W e also anticipate the many opportunities the M ay
meetings afford for pleasant visits with Iowa's leading
bankers.

THE
MERCHANTS NATIONAL
=

2 U

O F F I C E R S
JAMES E. HAMILTON, C hairm an Executive
Committee
S. E. COQUILLETTE, Chairm an of the Board
JOHN T. HAMILTON II. President
MARK J. MYERS, V ice President
FRED W . SMITH, V ice President
GEORGE F. MILLER, V ice President and
Trust Officer
MARVIN R. SELDEN, V ice President

Cedar

R. W . MANATT, V ice President
L. W . BROULIK, V ice President
PETER BAILEY, C ashier
R. D. BROWN, Assistant C ashier
O. A . KEARNEY, A ssistant Cashier
STANLEY J. MOHRBACHER, Asst. C ashier
EVERETT C. PRATT, Assistant C ashier
C. F. PEREMSKY, A ssistant C ashier
VICTOR W . BRYANT, A ssistant Cashier
JAMES E. COQUILLETTE, Assistant C ashier

Iowa

Member Federal Deposit Insurance Corporation

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

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Federal Reserve Bank of St. Louis

The imposing stature of the
American banking system can
be traced to roots that are deep
in the soil of sound business
practice and progressive man
agement.
The reco g n itio n accord ed
La Monte Safety Paper is also a
reflection of sound practice.
La Monte has made the produc
tion of protective papers its only
concern for more than threequarters of a century —spe
cialization that has made this
product the nation’s standard
for quality and safety.

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S A F E T Y P A P ER FOR C H EC K S
GEORGE LAMONTE & SON, NUTIEY, NEW JERSEY

jçÜoXTHE WAYT UNE$ (g) A8£ A LAM OT 6 tJM-Dt-MAÄK

Thousands of bea
use LaMonto Sai
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Federal Reserve Bank of St. Louis

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Northwestern Banker, May, 1949

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♦

The First National Bank of Chicago
-y
B oard o f D irectors

Statement of Condition April 11, 1949

Edward E. Brown
ASSE TS

Chairman of the Board

Leopold E. Block
Chairman, Finance Committee,
Inland Steel Company

Ralph Budd
President, Chicago,
Burlington & Quincy R . R. Co.

Augustus A. Carpenter
Director, H ills-M cCanna
Company

Cash and Due from Banks

President, Chicago,
Rock Island and Pacific
Railroad Company

James B. Forgan
Vice-Chairman of the Board

Under Trust A ct o f Illinois
Other Bonds and Securities

James S. Knowlson
Chairman of the Board
and President,
Stewart-Warner Corp.

Homer J. Livingston
Vice-President

Hughston M . M e Bain

-c

690.191,639.26
98,206,053.12

787,522,450.75

Real Estate (Bank Building)
Federal Reserve Bank Stock

2,816,524.06
4,200,000.00

Customers’ Liability Account o f Acceptances

2,934,784.81

interest Earned, not Collected .
Other Assets
.
.
.
.
.

4,723,014.55
.

545,416.52
$2,153,437,260.89

LIABILITIES

Vice-President

President, Clearing Industrial
District, Inc.

512,000.00

Walter M . Heymann
Henry P. Isham

562,297,377.82

United States Obligations— Direct and fully Guaranteed
Lnpledged
.
.
.
.
.
.
$ 441,245,733.26
Pledged— T o Secure Public Deposits and
Deposits Subject to Federal Court Order
189,069,826.43
Lo Secure Trust Deposits
59,364,079.57

Loans and Discounts
J. D . Farrington

Capital Stock
Surplus

.
.

Other Undivided Profits

•

Discount Collected, but not Earned .
Dividends Declared, but LTnpaid
Reserve for Taxes, etc.

Demand Deposits
.
.
Deposits o f Public Funds .

1.500,000.00
18,029,190.09
3,662,195.19
.

.
.

1,209,494.82
.

Liability Account o f Acceptances
Time Deposits .
.
.
.
.

75,000,000.00
65,000,000.00
2,888,955.55

.
,

President,
Marshal] Field & Company

432,279,322.66
1,378,365,156.47
175,502,946.11

1.986,147,425.24
$2,153,437,260.89

Bentley G. M cC loud
President

James Norris
President, Norris Grain Co.

John P. Oleson

R. Douglas Stuart

Albert H. Wetten

\ ice-Chairman,
Quaker Oats Company

President, A . H . W etten & Co.

Banker

Harry A. Wheeler

George G. Thorp
Irvin L. Porter

Banker

Madison, W is.

Vice-President

Edward G. Seubert
Chicago, 111.

Louis Ware

C. J. Whipple

President, International
Minerals & Chemical Corp.
M EM BER

FED ER A L

D E P O S IT

Chairman of the Board,
Hihbard, Spencer, Bartlett & Co.
IN S U R A N C E

John P. W ilson
Wilson & M cllvaine

Robert E. Wilson

Chairman o f the Board,
Standard Oil Company
(Indiana)

Robert E. W ood
Chairman of the Board,
Sears, Roebuck and Co.

C O R P O R A T IO N

yNorthwestern Banker, May, 7949

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Federal Reserve Bank of St. Louis

Conference
House

S cen e o/ a
cA T om enfous c/ ifa ’tm g

“ Good claret, good bread, cold ham, tongues

and Edward Rutledge. Despite the gravity

and mutton” were served by Admiral Lord

of the situation, all three committeemen

Howe when three Signers of the Declaration

conducted themselves with the utmost good

of Independence visited him on September

nature and parried Howe’s remarks with

1 1 , 1776. The occasion, however, was not a

witty rejoinders which evidently baffled him.

social meeting, but the first peace confer

When he declared that if America were to

ence of the Llnited States, arranged by the

fall, “ I should feel and lament it like the loss

British in the hope of ending the Revolution.

of a brother,” Franklin replied with a bow

The meeting place was the home of the

and a smile, “ W e will use our utmost en

Billopp family on Staten Island in New York

deavors to save your lordship that mortifica

harbor. The three Signers whom Congress

tion.” The admiral completely missed the

authorized to hear Admiral Howe’s propo

point.

sition were Benjamin Franklin, John Adams

across and took him captive.
Fortunately, the thick fieldstone walls of

The conference soon ended, for Admiral

the Conference House have withstood the

Howe’s basis for peace was the colonists’

ravages of time and mistreatment, and it

abandonment of independence, while the

has been restored through the generosity of

delegates emphatically refused to consider

various organizations and private donors.

such terms.
Built before 1688, though the exact date

This old print, showing rear view o f the house,

is ei ¡fe n c e t\ a t restoration w a s h ig h ly necessary

It is now owned by New York City and is
maintained

the

Conference

House

is unknown, the Billopp house was old even

Association as a memorial to the three com

at the time of the conference. The property

mitteemen and their re-affirmation of the

was granted in 1676 to Christopher Billopp,

Declaration of Independence.

captain in the British Navy, and remained
in his family’s possession for many years.
When the British occupied Staten Island

-t

during the Revolution, the house was owned
by Colonel Christopher Billopp, the cap
tain’s great-grandson, and was being used
as a barracks at the time of the peace con
ference. Suspected of Loyalist sympathies,

Jbe J-tome, through its agents and
brokers, is America's leading insurance
hrotector of American Homes and the
Homes of American Industry.

* THE HOME

Billopp was twice taken from his home and
temporarily put in irons. On one of these
occasions, after watching him through a
spyglass from a church steeple in nearby

>*
T h e three Am erican delegates hear H o w e's ultimatum

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Federal Reserve Bank of St. Louis

Perth Amboy, a band of patriots rowed

Home Office: 59 Maiden Lane, New York 8, N. Y.
FIRE

•

AUTOMOBILE

•

MARINE

The Home Indemnity Com pany, an affiliate,
writes Casualty Insurance, Fidelity & Surety Bonds

Imagine a flash fire in your bank during banking
hours. Your ledgers open . . . checks exposed . . . all your
records out of the vault! Can you conscientiously
expect your employees to rush them to safety?
That’s why so many banks have installed Mosler
Bookkeeping Safes. Not only are they more convenient

to use, but they protect your irreplaceable records
right on the spot.

M o s l e r ’s ledger
card and check file for
24-hour fire protection
These twin bookkeeping safes were
specially designed by Mosler for
Machine-posted bank records. The
left-hand receding-door safe houses
two trays— one for ledger sheets,
one for statements. A utility drawer
beneath holds signature cards or
other records. The right-hand safe
has four drawers, each housing
three removable trays for cancelled
checks after posting. The operator
never has to leave her machine!
Most important of all, it takes only
seconds to close the doors when

Tested and certified by the independent Underwriters’ Lab
oratories, Inc., these safes are awarded their “ B ” label for
two hour fire resistance including 30-ft. drop or impact test.

fire strikes . . . completely protect
ing the contents. For your bank’s
protection— and for greater oper
ating efficiency— write or phone
your nearest Mosler office today
for our special booklet on Book
keeping Safes. There’s no obliga
tion, o f course.

<5^ M o s l e r S a f e &>.
Main office: 320 Fifth Avenue, New York 1, N. Y.
Factories: Hamilton, O.
Largest Builders of Safes and Vaults in the World

Branch Offices
in your territory

Nort hwest ern Banker, May, 1949
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Federal Reserve Bank of St. Louis

Builders of the U. S. Gold Storage Vault Doors at Fort Knox, K y CHICAGO

MINNEAPOLIS

KANSAS CITY

214 W. Jackson Blvd.
CEntral 6-3748

4606 Arden Avenue
WAInut 6742

430 Dwight Bldg.
1004 Baltimore St.
Victor 5522

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Federal Reserve Bank of St. Louis

A timely service extended to correspondents by the Chase is the study and
analysis o f a bank’ s portfolio o f U.S. Government and other securities.
Specific recommendations are made based upon the bank’s overall
investment position and particular requirements.
The experienced staff and specialized facilities long maintained by
the Chase for reviewing investments have proved valuable to banks
throughout the country*
Advice and information on investments is only one o f the many help
ful services that Chase offers to its correspondents.
A m on g other services to correspondent hanks a r e :

Issuance of commercial and travelers’ letters of credit
Complete facilities for the safekeeping of securities
Collection of checks, drafts and other bank documents
Transmission of funds abroad and shipment of currency
Information on credit standing of firms and individuals
Participation in local loans when desired by correspondents
Performing a wide range of incidental services

THE C H A S E

NATI ONAL BANK

OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1949

o n t in e n t a l

N
and

a t io n a l

ru st

I l l in
B

o is

ank

om pan y

O F C H IC A G O

S ta tem en t

o f C o n d itio n , A p r il

11,

1 9 4 9

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

____ $ 583,354,763.57

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

................... 1,076,869,865.20

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

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

78,972,444.71

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

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

358,103,788.97

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

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

4,500,000.00

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

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

1,373,446.57

Income Accrued but Not Collected...................

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

5,894,294.45

Banking House .......................................................... ...................

9,825,000.00
$2,118,893,603.47

LIABILITIES
Deposits ...................................................................... ................... $1,919,952,947.21
Acceptances ............................................................... ...................

1,373,446.57

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

9,140,219.64

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

18,109,442.54

Reserve for Taxes, Interest, and Expenses. . .

Income Collected but Not Earned........................ ...................

477,605.56

Capital Stock ............................................................ ...................

60,000,000.00

S urp lu s........................................................................
Undivided P rofits..................................................... ...................

Banker, May, 1949
Digitized for Northwestern
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

19,839,941.95
$2,118,893,603.47

United States Government obligations carried at $178,507,134.12
are pledged to secure public and trust deposits and for other
purposes as required or permitted by law

Member Federal Deposit Insurance Corporation

fit G lif i

LC5OMrccsO
Loans and D i s c o u n t s ...................................................... $ 882.239.19
Commodity Credit Corp. (wheat loans)
. . . .
426,399 16
Real Estate Loans (farm and city property)
.
269.590.75
F. H. A. Real Estate Loans (city property)
. .
.
50,509.29
Overdrafts
. . .
1,133.68
24,754.00
Bank B u i l d i n g ..................................................................
Furniture and F i x t u r e s ..................................................
2,849.82
Bonds:
^ ^

Lean and D i s c o u n t s .............................................................$ 2.940.90
Revenue S t a m p s ....................................................................

112.00

Furniture and F i x t u r e s ...................................

456.00

Expense A c c o u n t ..................................................................

196.16

Clearing House I t e m s ...........................................................

126.91

C u r r e n c y ..........................................
Gold Coin

4,090.00

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

000Z -" '

465.00

Municipal
T o Secure Public Funds (G ov t and Mun.)

Balance in Banks:
*Central Hanover B / T Co., New Y o rk
First National Bank, Kansas City, Mo.

‘ First National Bank, Kansas City, Missouri
¡rst National Bank. Wichita, Kansas

7.268.76

Central Hanover B /T Co., New Y ork , N .Y .

3,099.00
City National B /T Co,Chicago. Illinois
Clearing with other local b a n k s ...................................
C u r r e n c y ...........................................................................
S i l v e r .................................................................................
Collection in T r a n s i t ......................................................

468.419.73
27,865.54
25,671.00
1,804.08
19,034.94

T o t a l ..............................................$3394,123.66

¡^ÉififieÿO
cC ¡a_É>if¡<iesO

Capital (Paid i n ) .................................................................... $15,000.00
S u r p l u s ..................................................................................

None

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

None

I n t e r e s t ...................................................................................

87.27

E x c h a n g e ...............................................................................

7.30

,
C a p i t a l .................................................. .......
S u r p l u s .........................................................
Undivided P r o f i t s ...............................................
D e p o s i t s ..............................................................
Certificate of D e p o s i t ........................................
Saving D e p o s i t s ................................................
Bank Money Orders and Cashier's checks
R e s e r v e s ..............................................................

Individual D e p o s i t s ....................................................................... 4.512.79
Time C e r t i f i c a t e s .................................................................

12.50

T o t a l ............................

T o t a l ............................................... *19,619.56

75,000 00
75,000.00
47,808.11
2,833,612.16
130.202.84
210,186.82
15.642.10
6,671.63

$3.394,123.66

•Started November 1, 1898

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Federal Reserve Bank of St. Louis

This is a facsimile of the 50th anniversary statement of the Peoples State Bank of
McPherson, Kansas, one of the 397 banks which have been correspondents of Central
Hanover for over 50 years. A bank is known by the correspondents it keeps.

CENTRAL HANOVER
BANK

A N D TRUST C O M P A N Y
NEW

YORK

Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1949

ACROSS T H E COUNTRY

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Federal Reserve Bank of St. Louis

• . . you can bank ou

IK Y IN G S E R V IC E

On the Cover
Clarence R. Chaney, vice chairman
of the board of the Northwestern Na
tional Bank of Minneapolis, is well
known for his painting as well as his
banking ability. At present he has on
display in the newly formed Maurice
L. Rothschild-Young Quinlan Company
store 41 water color paintings, many
of which are scenes of Minneapolis and
its surrounding landscapes. Mr. Chaney
himself says that this is the largest
number of his own paintings he has
seen at one time.
Included in the 41 paintings exhibit
is the scene, “ Holiday Blizzard,” which
recently was chosen as one of the out
standing water colors to be produced
in the United States through the past
year and, as befitted this recognition,
it was shown in New York at the 82nd
Annual Exhibition of the American
Water Color Society.
Mr. Chaney is shown on our cover
photo holding a painting of the famous
Dunwoody Institution located in Min
neapolis.
Mr. Chaney recently told the N o r t h
w e s t e r n B a n k e r , “ I have always had
an interest in art and have been dab
bling in drawing and painting more or
less all my life. The style of work
which I follow now as a hobby dates
back to the eariy thirties. Prior to
that, I did some things in black and
white, and for about 35 years, without
a break, I have made the drawings for
our family Christmas greetings.
“ I have had no formal art instruction
beyond the usual courses in school, but
for a number of years was a member
of the business men’s group working
at the Minneapolis Institute of Arts.
While the method used there is quite
informal, it afforded contacts with sev
eral excellent teachers. My preference
for scenes with architectural features
is probably a natural outgrowth of my
work as an architectural draftsman
during vacation periods while I was
in high school.”

Unusual Statement
The response to the elaborate state
ment to stockholders which The City
National Bank & Trust Company of
Kansas City, Missouri, has just issued
has been surprisingly gratifying. Hun
dreds of congratulatory letters have
been received and several dozen
schools have asked for supplies to use
in their classroom work in their busi
ness departments. Kansas City print
ers say this is one of the most attrac
tive and pretentious printing jobs ever
produced in Kansas City.

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Federal Reserve Bank of St. Louis

DES MOINES
Oldest Financial Journal West of the Mississippi

54th Year

No. 742

IN THIS M A Y , 1949, ISSUE
EDITORIALS
A cross the Desk from the P ublisher........................................- ...........12, 13

FEATURE ARTICLES
On the C over............................................... ............... ......................... ...... ........
F ron tispage ___________ ________________________________ _____________
Bankers A re Optim istic A bout F arm and Business O utlook........... .
.......................................................... A N orthw estern B a n k e r S urvey
News and View s o f the Banking W orld .....................Clifford De P u y
H ow to Keep Our Farm s F ertile................................... Louis Brom field
Prom inent Speakers W ill A ddress South Dakota Bankers..................
Trends in Livestock L oan s............................................ W ade R. M artin
Bankers Y ou K now — Scott C. Pidgeon ___________ ______ _____ _____

11
15
17
18
19
20
21
22

BONDS AND INVESTMENTS
The Outlook fo r Investments Is F ar F rom Gloom y...............................
........................................................................................... Raym ond T rig g er 39

INSURANCE
H ow the Banker Can Increase His Insurance Sales.... ..........................
............ ..... ........................... ......... ................................. E u gen e A . Conklin 43

STATE BANKING NEWS
M innesota News ................................................ .............. ...................... ..........
Tw in City N ew s.........................................................................................
R ecord Crowds Attends Ninth Federal Reserve Conference......
South Dakota N ew s.................................................................. .........................
Sioux Falls N ew s................................ ..... ......... ................... ..................
North Dakota N ew s................... ............................................... ................. ..
Nebraska News .................................................................................................
Nebraska M eetings W ell Attended— Group M eeting Pictures....
Omaha News ........................ ......... ...... ....... .......... ................. ....... ...... .
Iow a News .........................................................................
Council Bluffs H ost to Group 5............................................................
Grinnell Is Prosperous Center (G roup 6 ) .........................................
Ottumwa Is Big Industrial Center (G roup 1 0 )............ ......... .......
N ew Tipton Club Open to Group 8 ......................................................
S p irit Lake Is H ost to Group 2.............................................................
Group 3 W ill Meet in Mason C ity........................ ...............................
N ew H am pton W elcom es Group 4................................................ .......
W aterloo Is H ost to Group 7................................................. ...............
Des Moines N ew s...................
Conventions ......................................... ....... ....................... .................. ....... .....

47
48
49
55
515
57
59
61
64
67

68
70
72
75
76
78
801
82

73
86

IN THE DIRECTORS' ROOM
A Few Short Stories to Make Y ou L au gh ................................................ 86

NORTHWESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUY
RALPH W. MOORHEAD
Publisher
Associate Publisher
HENRY H. HAYNES
BEN J. HALLER, JR.
MALCOLM K. FREELAND
Editor
A s s o c i a te Edit or
Associate Ed it or
ELIZABETH COLE
HAZEL C. STEPHENSON
SADIE
WAY

A d v e rt i si n 3 A s si st a nt

A u di to r

Circulation Depar tm en t

PAUL W. SHOOLL

JOSEPH W. FRANKS

Field R e pr es e nt at iv e

NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray Hill 2-0326

DE PUY PUBLICATIONS:
Northwestern Banker, Underwriters Review,
Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.

Nort hwest ern Banker,- M a y , 1949

12
Senate ^committee that, “ Congress allocates bil
lions without accurate knowledge as to why they
are necessary and what they are being used for.
‘ ‘ What the department of national defense needs
is a good bookkeeping system.”
And yet President Truman wants more money
to spend before he even starts to reduce govern
mental waste and inefficiency.
More power to you, Mr. Hoover. Your efforts
should be truly appreciated by every taxpayer.

CDsjcüp (jDlUíc w l (L . VYIo Acm a , :
Senior V ice President,
A m erican Trust Co., San Francisco.

Across the Desk
From the Publisher
CDscUl. (KsJibsJiL K jodvsa^:
A g rea t citizen and ex-P resid en t U.S.A.

There may be some recommendations of yonr
“ Hoover Commission on Government Reorgani
zation” which do not meet with the approval of
all the politicians, but that is to be expected.
However, the over-all plan yon have outlined
to reduce government expenses and operate our
national affairs more efficiently should meet with
the unanimous endorsement of all citizens and
taxpayers.
More recently you have testified on the extrava
gances of the Army, Navy and Air Force and
pointed out that:
1. An air force request asked for funds to build
910 family homes in Alaska costing $58,350 each.

And yet President Truman wants to increase
taxes 4 billions.
2. Another air force request to build 828 homes
on Guam at $48,000 each.

And yet President Truman says nothing about
reducing government expenses.
3. The army wanted $100,000 each to modernize
102 M-26 tanks it had already transferred to the
marines.

And still President Truman wants to increase
taxes 4 billion before he even suggests we should
reduce our government expenses.
You also stated in your testimony before the
Banker, May, 1949
Digitized for Northwestern
FRASER
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Federal Reserve Bank of St. Louis

At the recent meeting of mortgage bankers in
your city, you estimated that there is “ 20 billion
dollars of mortgage money available from savings
accounts and assets of insurance companies.”
The N orthwestern B anker believes very thor
oughly, Mr. Marcus, that the true test of Ameri
can soundness is based on the amount of money
we have in our savings accounts. This, of course,
is not the only measure of our financial stability,
but it certainly is a very definite indication of
which way our “ economic wind” is blowing.
The most interesting comparison of our “ gross
national income and savings” is presented in the
book, “ Our National Debt,” and these figures are
as follow s:
GROSS NATIONAL INCOME AND SAVINGS
Gross National
Year
Income

Savings as o f
Gross National
%
Savings
Income

1944

194.4 b illio n

51.1 b illio n

1942

153.9

“

38.8

“

26.3%
25.2%

1919

64.4

“

1943

178.0

“

“
“

2 4.5%

16.3
43.0

1946

164.6

“

21.1

“

12.8%

1947

145.1

“

15.6

”

10.8%

24.2%

You will see'from this chart, Mr. Marcus, that
1944 was the best year we have yet had for saving
a percentage of our income, the amount that year
being 26.3%.
W e have been declining pretty steadily in the
last two years and in 1947— the last year for which
figures are available— we saved only 10.8% of our
income. The lowest year of all was the depression
year of 1932 when our savings as a percentage of
our income was only 4.7% .

As we enter this period of “ readjustment,”
whether more money will be drawn from savings
accounts to pay current expenses remains to be
seen, but the N orthwestern B anker is quite posi
tive that bankers everywhere should encourage
their customers to increase the amount of money
which they are saving.

One speaker at your recent convention said,
‘ ‘ Since we are enthusiastic about the savings busi
ness at some times and not so enthusiastic at
others, we find in many banks that the operation
of the savings function is considered a simple and
unimportant function not requiring the close at
tention of a senior officer of the bank.”

The savings department of any bank should not
be classed as an “ unimportant function” but
should be given all of the thought and attention
necessary to increase the business of the bank and
also to stimulate a desire on the part of the cus
tomers of banks to build up their savings reserves.
The simple fundamentals of thrift and economy
helped to make America great. We dare not lose
them now.

Well what in heaven’s name are you?
A “ nationalist” —which you say you “ are not”
-—is one who believes in “ devotion to or advo
cacy of national unity and independence” — and
this you oppose.
You want to enjoy our United States, but work
to overthrow the principles for which it stands.
You want to make your millions under a free
democracy but promote a communist form of
government.
You may have been a “ good actor” on the
screen, but as a “ non-citizen” and “ communist
backer” you are a “ bad actor” in every sense of
the word.
Away to some communist controlled country,,
you sympathizer of Stalin.
Begone, “ Casanova Communist Chaplin.”

(DsxVl, tfhwilcA. SfrniaUL, £hapLLn:
Com m unist S ym path izer and “ Bad” A c to r

Jo August, 1918, there was organized at Breslau,
the “ World Congress of Intellectuals,” which in
turn appointed a 21-member committee known as
the “ International Commission in Defense of
Peace. ”
This latter commission has just held its meet
ing in Paris. The entire organization is backed
by communists both abroad and in the United
States. The title sounds fine, but the internal
objectives are not for “ peace” but for “ control”
of every government in the world where the com
munist fifth column can gain a foothold. And so
you, Mr. Chaplin, endorse the enterprise and
wired the committee in Paris, saying: “ I am only
too happy the join the legion, which seeks peace
and good sense throughout the world. Please
add my name to the international liaison commit
tee of intellectuals for peace.”
Sounds beautiful, doesn’t it? All “ love and
kisses and peace and intellectual idiosyncrasies.”
And what a fine one you are to “ endorse” a
communist enterprise when you have made your
millions in the U. S. under the greatest democracy
on earth where freedom of individual effort is
rewarded as in no other country.

Do you think you could have made millions in
Russia as an actor and movie producer?
No, indeed, the Stalin boys wouldn ’t let you.
You came to the United States in 1910 when you
were 21—you are 60 now and have lived under our
beneficent form of government for 39 years, yet
you have never become a citizen.
In April, 1947, you said, “ I am not a commu
nist and never obtained United States citizenship
because I am not a nationalist.” Then why en
dorse and foster and promote a communist or
ganization if you are not a communist?
So you are not a citizen because you are not a
nationalist.

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(bsmJc (Da. K&vwsdtPc VYkJaALcm d:
Superintendent o f Schools, Topeka, Kansas

For a number of years we have heard you speak
at various bankers conventions, Rotary Club meet
ings and at other places, and have always been
impressed, Dr. McFarland, by the fine valuation
you have put on the proper human characteristics
which are so necessary for a successful career of
any kind.
‘ ‘ The person who succeeds in the rapidly chang
ing and difficult business conditions ahead must
be a big personality. These people are charac
terized by several distinguishing traits. First and
foremost, they are gracious. The big man never
tries to impress his employes with the fact that
he is the boss. As John Temple said, ‘ Don’t strut.
The fact that you now have a certain title or posi
tion doesn’t prove anything except that maybe, in
selecting you, somebody made a mistake that will
be rectified later.’

As we think of the many “ big personalities”
that we have met, we too have always been im
pressed by their graciousness, by their courtesy,
and by their willingness to “ listen to our story”
after we have first had an opportunity to discuss
their problems with them.
It is more necessary than ever these days, Dr.
McFarland, that we all become more “ human”
in our relations with other people since their
nerves are on edge from international conflicts
from without as well as the economic problems
which face us from within.

Nort hwest ern Banker, May, 1949

)

- y in -

/J fjfF H

ü n b tliu /ifm
ever alert to the financial
needs of Iowa agriculture

and industry.

Io n a 's Friend ly Bank

C E N T R A L N A T I O N A L B ANK
il TRUST CO. Des Moines, Iuwa
Member Federal Deposit Insurance Corporation

■

-T-

‘

Northwestern Banker, May, 1949

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Nort hwest ern Banker, May, 1949

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Satisfactory adding m achine performance is
determined by ACCURACY, DEPENDABILITY and
SPEED. The experienced craftsmanship implied
by the name Alien-W ales is your assurance of
obtaining all three of these essential factors.

A L L E N * WALES
ALLEN-WALES ADDING MACHINE DIVISION
OF
THE NATIONAL CASH REGISTER COMPANY

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444
N E W

MADISON
YO R K

AVENUE
22,

B a n k ers A r e
OptA b on t
Farm and Business Outlaak
Although Readjustments Are Taking Place, Most
Farming and Business Activity Is Holding Steady
A NORTHWESTERN BANKER
Survey
HAT is the general business
and agricultural outlook at this
time in the middlewest? To
answer this question, the N o r t h w e s t
e r n B a n k e r asked several bankers to
tell briefly the trend of business ac
tivity in their communities after the
first three months of 1949 became his
tory, and also to tell us the farming
outlook based on spring predictions.
This survey was conducted during the
early part of April and reflects opin
ions and conditions as of that period.
Here are the answers these bankers
give on the business and agricultural
situation:

"MORE BUYERS*
RESISTANCE BY FARMERS"
By R. W. TREFZ
President, Beatrice St at e Bank

Beatrice, Nebraska

“Farmers are exhibiting more buy
ers’ resistance.
Wheat damage is
questionable. Retail activity is down,
deposits are showing a decline. Loan
demand is up and it takes more time
to dissuade would-be borrowers. The
general situation is very satisfactory.”

"THIS IS A TRUE
ADJUSTMENT PERIOD"

justified by the fact that in March
our local papers did more advertising
than at any time in their history. The
fact that a number of percentages are
off should not be too disturbing when
a comparison is made because the
comparison is made with an all time
high whereas current business is still
considerable above the so-called nor
mal.
“ I look upon this period more and
more as true adjustment since some
companies have experienced increased
volume while other companies are
drastically off.
“As for the agricultural outlook in
our locality, I have had this report
prepared by one of our directors,
which I hope will be helpful.” — ( E d i
N o t e : S ee r e p o r t b eloio b y W a l
te r W . P au l.)

to r’s

"FARM OUTLOOK GOOD"
By WALTER W. PAUL
Co- Own e r ,

The Paul Farms

LeClaire, Iowa
Director, First Trust and Savings Bank,

Davenport, Iowa

“The agricultural income of this
area is derived primarily from the sale

of livestock and dairy products.
Hence, any outlook analysis should
consider the hog feeder, the cattle
feeder, and the dairyman.
“A very favorable feeding ratio still
prevails between the price of grain
and the price of both finished pork
and beef. With the pork price still
well above government controls the
pork producer is optimistic about pro
duction of pork at a profit. This has
resulted in a slight increase in the
number of spring pigs farrowed and
to be farrowed this spring. Because
he realizes that this increase may pro
duce increased marketings this fall,
he will endeavor to crowd this crop
to the maximum with a stepped-up
feeding program to try to have his
animals marketed as rapidly as pos
sible.
“ The cattle feeder is a bit skeptical
about the purchase of feeder cattle at
present prices. Those who are buying
are doing so on a cash rather than a
credit basis, with the realization that
feeding under these conditions is a
highly speculative business.
(Turn to page 30, please)

By T. L. VINYARD
Vice President, First Trust and
Savings Bank

Davenport, Iowa

“As for the business outlook in this
locality, I think the best evidence of
the fact that we are in a decline cycle
is the number and amount of our daily
clearances. Our bank clearances are
off about 25 per cent over a year ago.
There are other basic factors which
are disturbing, such as the last month
ly report put out by our local Chamber
of Commerce, which indicates car
loads, both incoming and outbound,
are off over a year ago.
“ Employment, however, in our area
has increased. Permits for new home
construction are off; however, this is
qualified in that builders of multiple
homes are curtailing their operation,
but local contractors anticipate that
private builders will make up the dif
ference, at least this year.
“ I am told that retail sales are hold
ing their own. However, this may be

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“ FAR M OPERATORS with a well-rounded program feel safety in diversifica
tion,” writes a bank director who operates his own farms. He reports that cattle
feeders are skeptical about purchase o f feeder cattle at present prices and are
buying only on a cash basis. He also reports an optimistic year for hog production
and says the dairyman also should be in good shape this year.
Northwestern Banker, May, 1949

News and Vieirs
A

OF THE BANKING WOULD
By CLIFFORD DE PUY, Publisher

I F you have not already done so, may
I we recommend that on your next
trip to California, to the southwest or
Mexico, that you stop at the Carlsbad
Caverns which are located 27 miles
southwest of Carlsbad, New Mexico.
No matter where jmu may have
traveled throughout the world, these

Fairyland in Carlsbad Caverns

Caverns are very rightly described as
the “eighth wonder of the world.”
The Caverns were originally dis
covered by a cowboy named Jack
White who saw millions of bats com
ing out of a hole in the ground and
for a long time the Caverns were
known as the “Bat Cave.”
In May, 1930, it was made a National
Park under U. S. Government super
vision, with government guides and
officials.
During the summer months, mil
lions of bats fly out of the Caverns in
the evening and return at dawn, and
are a spectacle of great interest. How
ever, they do not inhabit that portion
of the Cavern into which visitors are
taken. Visitors walk down to the bot
tom of the Cavern, a distance of about
800 feet and are brought back up by
elevators.
Single rooms in the Cavern are 750
to 900 feet under the earth’s surface
and are approximately one-half mile
long and are as wide as 1,100 feet, with
shadowy ceilings almost 300 feet high
and “decorated so gorgeously that de
scriptive terms utterly fail to picture
it.”

Descriptive literature of the Cavern
says, “ Twenty-three miles of chambers
and tunnels have been explored, yet it
is known that there is still much to
do; for, no idea of the actual size of
the caverns has yet been gained. Pres
ent tourist parties visit about three
miles into the ‘grand canyon under
ground.’ Each room is different from
the others, and as new rooms are
opened to the public, new wonders are
brought to light.”
At noon when you reach the bottom
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of the cavern, you can purchase a box
luncheon, eat it, rest awhile, and then
resume your trip to other parts of this
wonderland, and return and take the
elevator to the top.
If, for example, you leave at 10 a.m.,
you will be back on top again at 2:30
p.m.
Most every room has some beautiful
examples of stalactites which go down,
helictites which are horizontal and
stalagmites which extend upward.
Carlsbad Caverns are open every
day of the year so be sure to “drop
in” the next time you are down that
way.
In Phoenix, Arizona, we were quite
impressed with the number of col
umns in the local newspapers offering
“apartments for rent.” Such adver
tisements have not appeared very fre
quently in most metropolitan news
papers.
Phoenix, however, is now a city of
approximately 200,000 and there are
many new apartment buildings and
motels being built all over the city.
The most expensive place to stay in
Phoenix is the Arizona Biltmore
where it costs $45 per day. The next
is Camel Back Inn where the price is
about $40 per day and the less expen
sive rooms $25. Most of the other re
sort places such as Casa Blanca,

United States from interested travel
ers who either tell him about some
new place or perhaps criticize some
restaurant or hotel or motel which he
had previously recommended and
which, in the meantime, is not up to
the “Duncan Hines” standard.
Mr. Hines is a very handsome man
with graying hair and a charming and
delightful personality.
At the first meeting we attended of
the Phoenix Rotary Club, we noticed
on the front of their bulletin “The
Rotarizonian” it had this quotation,
“ Mamma mosquito: ‘If you children
are good, I’ll take you to a nudist camp
tonight.’ ” And we always thought
Rotarians were a dignified group.

Scott C. Pidgeon, president of the
Bankers Trust Company of Des
Moines, has had so many “ honors”

.iokake Inn, Paradise Inn, Echo Lodge,
Royal Palms Inn, and the others have

prices just a little less than the top
ones quoted.
As for us, we lived at a new motel
where we could do “light housekeep
ing” and then dined out at the various
resort ranches as it suited our pleas
ure.
Perhaps the most “colorful” place is
the Cudia Guest Resort, whose slogan
is “Come hungry and we will feed the
hell out of you.” Another paragraph
on their menu says, “Cuisine par ex
cellence (meaning damn good food)”
—and it was.
Two books which we always take
when we travel by car are “Adven
tures in Good Eating” and “Lodging
For a Night,” whose author is the
well-known Duncan Hines.
On this trip, we had the pleasure of
meeting him and he told us that he
has about 30 men traveling constantly
to check up on places to eat and sleep
and also he receives between 500 and
600 letters a day from all over the

S C O T T C. P ID G E O N
P resid ent, B ank ers T ru st Company
Des M oines
“ C arving his birthday cak e’’

thrust upon him recently that he can
barely keep track of them.
First he was elected president of the
Bankers Trust Company; then on
March 23rd, it was his birthday and
the officers and the employes of the
bank gave him a big birthday party
with cake, candles and all the trim
mings, as shown by the cake-cutting
picture, and more recently he was
elected vice president of the Des
Moines Rotary Club.
(Turn to page 41, please)

B E F O R E — Starting a new reconversion project near Cher
okee, Iowa— an early morning view o f heavy machinery
starting a diversion dike and dam with stock-watering system.
30,000 spectators were on hand to see the renovation o f this
240-acre farm.

A F T E R — Here the work is completed.
completed terraces, waterways and the dam
This is just part o f the work that will hold
farms farther down the valley watershed
area of the Little Sioux River Project.

An
site
the
in

aerial view of
shown opposite.
water from the
the Pilot Rock

IfOff*
to #4VVp
Our F orm s F ertile
Sixty Percent of the Farmers in This Country
Produce Very Little More Than They Consume
By LOUIS BROMFIELD
Malabar Farms
Ohio
HAT we need in the whole of
the United States is a better
agriculture than we have today.
I don’t suppose 10 per cent of our
farmers really could be called good
farmers in this country. Those 10 per
cent I would call the farmers who raise
the maximum crops their land will
raise without losing fertility, and actu
ally with a gain. Fifty per cent really
do pretty well. They raise from 50
to 60 per cent of what their land could,
and a good many of them are losing
fertility and production at the same
time. The shocking thing is that the
remaining 60 per cent of our farmers
in this country actually produce very
little more than they can consume.
Now you have to be a very rich coun
try to be able to afford that kind of
agriculture. And in the past we have
been a very rich country and in some
areas and in some respects we still are.
But we are by no means as rich a coun
try as we were 50 years ago, or 25
years ago, or even 10 years ago.
What I am concerned with personal
ly, together with a great many other
farmers, a great many bankers, a great
many insurance companies and a great
many industrialists, is the fact that

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we shall come to a point where it will
be difficult to feed this country prop
erly. But more than that, it will come
to a point where our farmers will no
longer represent the great purchasing
power which they represent today.
And if you pulled out the purchasing
power of the farmer from under our
national economy today, the whole of
the economy would collapse. The fact
is that when the farmer can’t go to
town and buy an automobile tire or a
radio, or a gallon of gasoline, it means
that men are out of work in Detroit,
Cleveland, in Pittsburgh and Chicago.
And when they are out of work they
aren’t in the fortunate position of the
farmers who can dig in and take care
of themselves. When they are out of

work they are out of work. And after
the unemployment insurance is ex
hausted, they become public charges
to be paid for and supported by the
taxpayer.
Now part of this is sometimes caused
by falling prices, but it is also caused
very often by a poor agriculture. And
what I am interested in is the security
of the farmer. The 10 per cent of the
farmers I mentioned stand on their
own feet. It doesn’t make any dif
ference to them, any serious, disas
trous difference. When prices fall that
10 per cent of farmers can dig in and
be perfectly secure without losing too
much money if hogs get as low as 10
cents a pound or less, or corn gets
down to 50 cents, because they are
working on a sound basis of produc
tion.

Louis B rom field is a well-known
author, hut he p refers to be called a
farmer. H e is vitally interested in
rebuilding the soil o f this country to
its form er high fertility. Published
in this article are excerpts from a
recent talk by Mr. Brom field to
bankers and farmers gathered in
Marcus, Iowa.

In some areas we have turned back
in the last 10 to 15 years, begun to
climb up hill, but on the whole we
are still going down hill. You must
remember that in the rich state of
Iowa, the average production of corn
during the period 1940 to 1947 was
only about 44 bushels to the acre. That
(Turn to page 26, please)

Some Improvement

Nort hwest ern Banker, MqyJt 1949

P rom inent Speakers
A d d ress
Sauth
iPakota K ankers

Two-Day Annual Meeting Is
Scheduled for May 6-7 in Aberdeen
HE completed program for the
1949 convention of the South Da
kota Bankers Association indicates
an outstanding two-day event is in
store for those making the trip to
Aberdeen for the annual meeting.
Headquarters will he in the Alonzo
Ward Hotel, with business sessions
being held in the ballroom on the
mezzanine floor.
Presiding over the business meet
ings will be J. M. Lloyd, president of
the South Dakota Bankers Association
and vice president of the American
State Bank at Yankton.
A number of nationally prominent
speakers are listed in the official pro
gram. They include Evans Woollen,
Jr., president of the American Bank
ers Association and chairman of the
board of Fletcher Trust Company, in
Indianapolis, Indiana. His topic will
be, “ The Role of Banking in Our
Time.” Mr. Woollen’s keen analysis
of banking’s position in these complex
times has been assuring and stimulat
ing to thousands of bankers in the
United States.

May 7th for election of state A.B.A.
officers.
Closing the business session will be
the election of new officers of the State
Association, remarks by Retiring Pres
ident Lloyd and reports of the several

Dr. Benson to Speak

J. M. L L O Y D
R etirin g Presid ent, South D akota
B ank ers A ssociation

Another prominent speaker will be
Dr. George Benson, president of Hard
ing College at Searcy, Arkansas. Dr.
Benson, who writes a weekly news
paper column for over 3,600 papers and
has a weekly radio program that is
heard in 38 states, has been cited as
the man who is doing more for private
enterprise than any private citizen in
America.
A convention speaker who is wellknown to hundreds of midwestern
bankers, as well as being prominent in
A.B.A. country banking affairs, is Rich
ard Trefz, president of the Beatrice
State Bank of Beatrice, Nebraska.
Several other prominent speakers
will appear on the convention plat
form, including Dr. O. B. Jesness, head
of the school of agriculture at the Uni
versity of Minnesota.
There will be breakfast meetings
of the resolutions and nominating com
mittees at 8:30 a. m. Saturday, May
7th, at the Alonzo Ward Hotel. The
“ old” executive council will meet for
breakfast Saturday. The “new” coun
cil on Sunday.
South Dakota member banks in the
A.B.A. will meet in the afternoon of
Northwestern Banker, May, 1949

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committees. Serving with Mr. Lloyd
during the past year as an officer was
T. M. Harkison, president of the Na
tional Bank of South Dakota in Sioux
Palls. Carl E. Bahmeier, Jr., is sec
retary-treasurer.

Entertainment
A well-rounded-out program of en
tertainment has been provided for
bankers and their wives. Friday, May
6th, is open all day for golfing at Aber
deen Country Club, with a cocktail
party and informal dance starting at
8 p. m. in the Alonzo Ward Hotel. A
women’s luncheon and bridge party is
scheduled for Saturday noon at the
Country Club, and the annual banquet
to be held Saturday night will be fol
lowed by a two-hour stage revue com
posed of outstanding professional tal
ent from Chicago and the Twin Cities.

Friday, May 6th
All Day Golf—Aberdeen County Club
P. M.
8:00 Cocktail Party—Ballroom, Alon
zo Ward Hotel.
9:00 Informal Dance — Ballroom,
Alonzo Ward Hotel.

Saturday, May 7th

A. M.
10:00

Call to Order — J. M. Lloyd,
president, South Dakota Bank
ers Association.
Address of Welcome—Dr. N. E.
S t e e l e , president, Northern
State Teachers College.
Response—T. S. Harkison, vice
president, South Dakota Bank
ers Association.
10:15 “The FHA and Your Bank”—
E. R. Arneson, state director,
FHA.
10:30 “ Opportunity D r i v e Promo
tions”—W. H. Frei, A.B.A. state
bond chairman.
10:40 “The Role of Banking in Our
Time” — Evans Woollen, Jr.,
president, American Bankers
Association.
11:10 “ Management’s Responsibility
to the Community” — Richard
Trefz, president, Beatrice State
Bank, Beatrice, Nebraska.
Noon Ladies’ Luncheon — Aberdeen
Country Club (transportation
furnished by buses).
Afternoon Bridge — Aberdeen Coun
try Club.
P. M.
1:30 “ Some Problems of Agricultural
Policy” — Dr. O. B. Jesness,
head, School of Agriculture,
University of Minnesota.
2:00 Address — Dr. George Benson,
president, H a r d i n g College,
Searcy, Arkansas.
2:50 Awards to members of 40-Year
Club.
3:00 Meeting of members of the
A.B.A. for election of officers.
3:10 Remarks by President J. M.
Lloyd.
Reports of Standing Commit
tees.
Report of Resolutions Commit
tee.
Report of Nominating Commit
tee.
Election of officers.
4:30 Adjournment.

Saturday Night, May 7th
6:00

8:00

Annual Banquet — Arena of
Aberdeen Civic Center.
“Skullduggery at the Cross
roads”—Art Briese, humorist.
Stage Revue—Theater of Aber
deen Civic Center.

Trends in L ivestock Yntnes
Evidence Right Now Points to a Cattle
Market Which Should Cause No Great Concern
By WADE R. MARTIN
Vice President
Live Stock National Bank
Omaha
AM not attempting to qualify as a
2. Following World War No. II we
livestock expert or an agricultural
have a government price support pro
economist. Some of my associates
gram that is far more extensive than
have forgotten more about livestock
any program following World War I.
production than I ever hope to know.
With the immense surplus which we
I do believe, however, that any coun
have created in wheat, corn, cotton
try banker who has been in the bank
and other commodities, it is not diffi
ing business during the past 15-20
cult to imagine the depths to which
years has a pretty good knowledge of
prices might have fallen and, of course,
livestock and is fairly well grounded
dragged livestock prices with them.
in livestock financing.
Existing legislation controls price sup
ports until 1950 and it is quite evident
No doubt, every banker in giving
that the present Congress looks with
consideration to the making of a loan
favor on such a program with possible
gives thought to the character of the
further extension to livestock. There
borrower, his capacity to produce and
fore, it looks very probable that live
pay, his credit standing in the com
stock prices will be favorably affected
munity, and the collateral which he
for some time by government legisla
has to offer. In giving consideration
tion.
to the collateral, he would like to
know if its value will be maintained
3. The financial position of the farm
during the life of the loan, and if cattle
ers and the size of the farm debt are
are offered as security he would like
far more favorable in this present
to know what the trend of cattle prices
W A D E R. M A R T IN
period. Farmers have liquidated a
V ice Presid ent
might be during the life of the loan.
large share of their current indebted
L iv e Stock N ational Bank of O m aha
During war years and the immediate
ness and have retired over half the
postwar years this has not been diffi population and only an 18 per cent in mortgage debt which was owing in
cult to do because we knew that high crease in cattle.
1920. Many farmers have substantial
ly inflationary factors caused by war
It is also interesting to note that we bank balances and in addition have a
were at work and that prices would have five million less hogs and eight substantial backlog of U. S. Savings
continue to soar. There is now every million less sheep than in 1918. Just Bonds. It would appear that farmers
indication that the peak of inflation to indicate what is happening to our and ranchmen are enjoying at this
has been reached and we are entering sheep production, in 1949 we have 17 time a better financial position than at
a dangerous period when every loan million less sheep than 49 years ago anytime in the history of this nation.
application must be carefully scruti in the year 1900.
4. The condition of the banks, es
nized.
Back in 1918 it was most usual to
pecially the country banks, presents
The break in January-February, market cattle weighing from 1,200 to
a far different picture than in 1921,
1948, was the first indication, and the 1,700 lbs. but today we find the popular
At that time they were loaded with
violent break in January-February, marketing weights to be 900-1200 lbs.,
farm mortgages and livestock loans.
1949, seems to be conclusive evidence thus in lbs, per capita of population
When it became necessary to ride
that we are in a period of readjust there is still much less beef than in
their deposit volume down, it became
ment.
dicated by the total number of head
(Turn to page 34, please)
1.
There are a number of materiallisted in 1949.
differences in the cattle situation fol
lowing World War II as compared
with World War I. (See chart below.)
In 1918, the closing year of World
to rn p a ri son o f L iv e s to c k P r o d u c tio n
War I, we find that there were 70 cat
W ith P o p u la tio n o f th e U n ited S ta tes
tle for every 100 of population, while
in 1949, four years after the close of Year
Population in I T . S.
Cattle
Hogs
Sheep
World War II, we find there are only 1900
76,094,134
59,739,000
51,055,000
48,105,000
54 cattle for every 100 population. 1910
92,406,536
58,933,000
48,072,000
50,239,000
With an increase of approximately 1918
103,830,000
73,040,000
62,931,000
39,664,000
42,000,000 in population in that period 1920
106,466,420
70,400,000
60,159,000
37,328,000
123,076,741
61,003,000
we had only an increase of 5,450,000 1930
55,705,000
45,577,000
131,970,224
68,309,000
in cattle, or stating it percentagewise 1940
61,165,000
46,266,000
145,360,000
78,495,000
we had an increase of 40 per cent in 1949 Est.
57,139,000
31,963,000

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

Nort hwest ern Banker, May, 1949

H ankers You K n o w

Scott C. Pidgeon
President, Bankers Trust Company
Des Moines, Iowa
“From collection cage teller to chief executive”

HEN Scott C. Pidgeon was elect
ed president of the Bankers
Trust Company o f Des Moines in Jan
uary, he forged the last link in a chain
of prom otions that has seen him rise
from collection cage teller to chief
executive of one of Iow a’s largest
hanks.
Chi June 1st Mr. Pidgeon and the
Bankers Trust Company will cele
brate a join t anniversary, the com ple
tion of their 32nd year of banking
business together. W hen the Bank
ers Trust Company opened its doors
to the public on June 1, 1917, the
young man at the collection teller’s
window was Scott Pidgeon. He has
seen deposits increase from $604,000
on that opening day to the present
total of nearly $58,000,000. Capital
structure now is in excess of $4,000,-

000.
Mr. P idgeon’s first banking experi
ence began in September, 1915, when
lie went to work for the Drake Park
Bank in Des Moines (now known as
the First Federal State B ank). He
remained there until joining Bankers
Northwestern Banker, May, 1949

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

Trust Company at its organization in
1917. In addition to his teller’s duties
at Bankers Trust, Mr. Pidgeon also
was general bookkeeper. In the fall
o f 1917 he was elected secretary. In
1922 the Bankers Trust Company
building was acquired by the bank
and he has had charge o f its manage
ment since that time.
In 1934 Mr. Pidgeon was elected
vice president and director, and on
May 31, 1947, he became executive
vice president. In taking over the
presidency in January, 1949, he suc
ceeded James W. H ubbell who was
elected chairman o f the board to fill
the vacancy occasioned by the recent
death o f EL F. Kauffman, founder of
Bankers Trust Company.
Scott C. Pidgeon was born March
23, 1891, in Salem, Iowa. He attend
ed elementary and high schools there,
then attended Iowa Wesleyan College
for two years, later studying at the
State University o f Iowa for two
years, graduating from the latter with
a Bachelor of Science degree in 1915.
During summer vacations he worked

in his father’s hardware store in
Salem.
In 1917 he was married to Anne
Van K irk and they have two daugh
ters, Mrs. Marian McCloskey, 30, and
Mrs. Jeanne Lang, 28.
A m ong his other business affilia
tions, Mr. Pidgeon is chairman of the
finance com mittee and a director o f
the Am erican Mutual Life Insurance
Com pany o f Des Moines.
Mr. Pidgeon has devoted a great
amount o f time to civic activities. He
has served as president o f the Des
Moines Chamber of Commerce and is
treasurer o f that organization at the
present time. On July 1, 1949, lie will
take office as vice president o f Des
Moines Rotary Club, having recently
com pleted two years as treasurer of
the Club. He has been a Rotarian
since 1935. Mr. Pidgeon also is a char
ter mem ber and past president o f the
Executives Club, and is treasurer of
the Drake-Des Moines Sym phony As
sociation. He is a registered Republi(Turn to page 28, please)

4Tm as pleased
as punch!^
“ Our Transit Department has
just moved into brand new quar
ters that are sliek-as-a-whistle. We are
now equipped to give even better service
in the handling of collection and transit
business.’ ’
“"As you know, to save you time
and

money,

route

all

collection

and transit items DIRECT, whenever possible.”
“ To derive the greatest advantage
from our central location, we send
your items by air or rail mail, which
John Changstrom
Vice President in charge of
Correspondent Banks

ever is faster —

and that means quick,

overnight delivery for you."

P. S. “ O f course, we offer complete R E C O R D A K protection
of ALL items drawn on points outside of Omaha.

The Omaha
National Bank
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

F A K N A M

A T

S E V E N T E E N T H

Northwestern Banker, May, 1949

H o «r .il neh

OW much is a billion? An adver
tising man offers this answer: “ If
a fund had started to accumulate Jan
uary 1st, 1 A.D., at the rate of $1 a
minute, it would not have reached the
billion mark for over 1,900 years, or to
be specific, until April 29, 1902.”
The producer of this provocative bit
of statistics is Jas. T. Anderson, adver
tising manager of George La Monte &
Son, manufacturers of safety paper.
The calculation was used in an adver
tisement published in the April issue
of the banking press.
Several bankers have questioned the
computation, so Mr. Anderson offers
the following explanation:
“ On the basis of one every four years
there would be 475 leap years in 19
centuries. From this total there must
be deducted, for reasons that will ap
pear shortly, the years 4, 1752, 1800
and 1900, leaving 471 leap years of
366 days each. However, the year
1752 had only 355 days, a fact that cuts
to 1,429 the number of 365-day years.
“This calculation covers 1,901 years
with 118 days and 640 minutes left
over, so that 10:40 a. m., April 29,
1902, became the minute the billion
mark was reached.
“The World Calendar Association

was of considerable help in providing
the historical data for these calcula
tions. They point out that the year

JA M E S T. A N D E R S O N
A d vertisin g M anager
G eorge L a M onte & Son

4 A.D., though divisible by 4, was not
a leap year because the College of
Pontiffs failed to carry out Julius Cae
sar’s directions for placing every
fourth year in that category. When

Augustus Caesar discovered the over
sight, it was decided to rectify the mis
calculation by suspending the next
three intercalations, with the result
that 8 A.D. was the first leap year.
“ In 1582 Pope Gregory XIII and his
scientists found that the discrepancy
between the natural or solar year of
365.2422 days and the existing calen
dar year of 365.25 days had established
a substantial error and 10 days were
dropped from the Julian calendar dur
ing that year.
“A similar adjustment was made
by England and her colonies in 1752.
It was then ascertained that the so
lar time calendar differential had
amounted to aproximately 11 days, and
these were deducted from the month
of September, making the total for
that year 355 days.
“To protect our calendar from fur
ther inaccuracies, we at that time put
into effect the same leap year ruling
made in 1582 for the Roman Catholic
countries; that only century years
which were divisible by 400 without a
remainder would be leap years. Thus
1800 and 1900 were not leap years, but
2000 will be.
“ It is interesting to note, that under
this rule the average length of the year
is only 26 seconds too long, and it will
take our calendar 3,323 years to accu
mulate an error of but a single day!”

MAKE INVENTORY LOANS SECURED BY OUR

WAREHOUSE RECEIPTS
Your Bank can make safe, sound loans against a customer's
inventory, when secured by our Warehouse Receipts.
The inventory may remain stored on the customer's premises.
For added safety and protection in making loans, and to
permit larger lines of credit, suggest that your customers
make use of St. Paul Terminal's Field W arehouse services.
W e In vite Y ou T o C on su lt W ith O u r E x p e rien c ed R ep resen ta tives

St. Paul Terminal Warehouse Co.
DES MOINES OFFICE

OMAHA OFFICE

511 Iowa-Des Moines
National Bank Bldg.

1105 First National
Bank Building

T. C. CANNON
District Manager

Telephone
Atlantic 9611

Northwestern Banker, M ay, 1949

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

425 East 8th Street, St. Paul, Minnesota
OFFICES ALSO LOCATED IN

MINNEAPOLIS

MILWAUKEE

CHICAGO

DETROIT

\x>ur Feeder depositors
will appreciate this service

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

Over three quarters of a century’s experience has proved to
us the value of speedy transmission o f proceeds from the
sale o f live stock in Chicago. The Stock Yards postofhce is
just across the street and we mail you the advice o f credit
on the day o f receipt.
T o give your depositors the advantage of this fast serv
ice, ask them to instruct their Chicago commission men to
route the money through this bank for their credit on your
books.

W e shall be pleased to send you instruction cards.

r J Z ie

LIVE STOCK
BANK

lA a tto n a /

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

U N IO N

ST O C K YARDS

M em ber F ederal D eposit Insurance Corporation

Northwestern Banker, May, 1949

(pASL¿j¿jdlnc^

MR. H. W . PORTER

President
FIRST NATIONAL BANK
GLIDDEN, IOWA
Wilbur Porter will soon be eligible for
membership
in
that
distinguished
group. The Fifty Year Club of the Iowa
Bankers Association. He is now com
pleting his 49th year of banking in
Iowa.
He entered the employ of the First
National Bank of Glidden in 1901 as
bookkeeper at a salary of $25.00 per
month. Three years later, when he was
elected assistant cashier and his salary
increased to $45.00 per month, he took
unto himself a bride. Subsequently he
was elected cashier and served in that
capacity for many years, becoming
president in October, 1940.
Mr. Porter will be 72 next month. When
his cashier resigned last fall, he de
cided this would be a good time to sell
and retire, provided a man acceptable
to his associates could be found. He
consulted us and James H. Redman,
then assistant to the State Superin
tendent of Banking, was introduced.
A prompt sale resulted with Mr. Porter
agreeing to continue as president for
a while.

HOW TO KEEP OUR
FARMS FERTILE
(Continued from page 19)
isn’t very high. The same thing is
true of Illinois. In McLeon county,
Illinois, five years ago they plowed
up a piece of virgin prairie land and
after the second year when the sod
had rotted away, they grew on that
acre, without fertilizer, 120 bushels of
corn to the acre. That was the kind
of land Iowa and Illinois inherited
from the prairie. Yet, the average in
Illinois today is 43 to 44 bushels to
the acre. This year Iowa and Illinois
ran higher, but there was a great per
centage of soft corn, as you all know.
Now even soil isn’t what we once
thought it. Soil, we have begun to find
out, is something much more than an
inner collection of minerals. We found
it out the hard way all over the United
States, and even in my own state of
Ohio, I’ve seen it under my very nose.
We know today that any good scien
tist or any good farmer knows that a
cubic foot of good productive soil con
tains the pattern of the entire uni
verse. It isn’t just a mass of chemicals
and minerals, it is a mass of decaying
organic materials, containing bacteria.
It contains fungus, mold, worms, ev
ery form of life. And in that cubic foot

Newfoundland
Canada ’s ftew Province
O n M arch 3 1 , 1 9 4 9 , N e w fo u n d
land, lo n g kn ow n as Britain’ s
“ O ld est C o lo n y ” , becam e
Canada’ s tenth province.
Labrador, on the m ain
land but politically
HEARTS CONTENT
joined to the “ O ld est
C o lo n y ” , n ow becom es
part o f the Province
o f N ew fou n d lan d .

" Y o u handled this trans actio n en
tirely in a c c o r d a n c e with my wishes in
every respect.
The deal was cl os ed
qui etl y, quickly and with en tir e good
feeling of both seller and purc hase r.

Bankers Service Co.
HENRY H. BYERS, President
HARRY B. GIPSON, Vice President

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

{

-A

149 7 * 1949

The bank's year end statement shows
$50,000 capital, $55,000 surplus and
profits and $2,400,000 in deposits. In
remitting our compensation, Mr. Porter
commented as follows:

If, because of advanced age, ill health
or other reasons, you are thinking of
selling your bank, we invite you to
confer with us in confidence with the
assurance that no one will be told of
your plans until you have authorized
us in writing to do so.

of soil there is going on constantly the
fulfillment of a law which again is
perfect universal law. That law which
is based upon birth, death and reverse,
and when that cycle is broken in soil
your production begins to go down and
that is what happens to soils which be
come depleted of organic materials.
In the part of France where I had
a farm, that land has been farmed for
1,400 years, the same land. And the
average wheat yield of the area, the
average yield, is 60 bushels to the acre
as against an average of 18 or 19 for
the whole United States and 22 bush
els in our own state of Ohio. So I
do not believe very much in wearing
out land when land farmed for 1,400
years steadily will give an average
wheat yield of 60 bushels to the acre.
I think that the future of the farmer
is a very great thing. It’s one of the
greatest and most profitable careers
that can open up for any young people.
And it is certainly the most fascinating
and most interesting. The way agri
culture is extending out into every
possible field of economics, of sociol
ogy, of nutrition, of medicine, of health
in all directions. We are beginning to
find slowly what I think that God
must have known all the time that
very nearly everything goes back to
the soil itself.—The End.

Three branches o f The Royal Bank of
Canada in St. John’s, five others in
the Island and one at Goose Airport,
indicated by stars.

Since 1 8 9 5 , T h e R o ya l B ank o f Canada has been established in this
historic Island. T h e k n o w led g e and business relationships built
up over 50 years w ill be devoted to furthering trade not only be
tween the ten provinces but with the U nited States and other
countries.

THE ROYAL BANK OF CANADA
Head Office—Montreal

New York A g en cy—68 W illiam Street

Assets exceed $2,222,000,000

OPERATING COSTS GO DOWN

...WHEN WORK FLOWS EVENLY!
Any bank will find this National Central Control and P roof Machine
invaluable for proving all incoming items and maintaining an even
flow o f work to all departments.
This machine insures automatic accuracy, for, should the operator err
in recording an amount, or should a depositor err in adding a deposit
ticket, the machine automatically locks until the error is corrected.
W ith records always in balance, proved control figures for all departments
are immediatley available at all times.
National provides a complete line o f accounting machines to meet
the needs o f every department o f every bank. O f the 100 largest banks
in this country, 94 use Nationals.

TH E N A T I O N A L C A S H R E G I S T E R C OMP ANY , D A Y T O N 9, OHIO

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Federal Reserve Bank of St. Louis

This 64-page , illustrated,
booklet describes the
National line. Get it F R E E
from yo u r local National
representative. Y ou ’ll find it
most useful and interesting.

e/fcâ ficn a l
ACCOUNTING MACHINIS
CASH RtGISTtRS • ADDING MACHINfS

I. ... -

... J

Northwestern Banker, May, 1949

W in s M a r q u e tte 's I tien tu n te s t

Bond Committee Heads
Stuart H. Smith, vice president, First
National Bank in St. Louis, and Wil
liam D. Walsh, assistant vice president,
Mississippi Valley Trust Company,
have been appointed chairman and
vice chairman, respectively, of the
Metropolitan St. Louis U. S. Savings
Bonds Committee.

BANKERS YOU KNOW
(Continued from page 22)

CONTEST WINNER— Elda Johnson, a secretary in the correspondent banking
department of Marquette National Bank, was named winner of an employe con
test on ideas for Mar-Pay-Go cheeking aeount advertising sponsored recently by
the bank. Georgia Abbott, messenger supervisor, and Harry Vadnie o f the mort
gage loan department were second and third place winners, respectively, in the
contest in which more than 50 employes submitted entries.
Entries were judged by John Pikala and Norm Harris of The Fadell Company,
advertising agency for the bank. Shown in the above picture are, left to right:
Russell L. Stotesbery, president of Marquette National Bank, who is presenting
Miss Johnson with her first place award; Miss Abbott, Mr. Vadnie and Donald
R. Knight, assistant cashier and manager o f the bank’ s Mar-Pay-Go department.

can and attends Plym outh Congrega
tional Church.
Mr. Pidgeon’s talents are not con
fined to the business world. In the
field o f sports he is an ardent fisher
man and hunter. To get about on
his fishing and boating excursions at
Lake O k oboji in northwestern Iowa,
where he maintains a cottage, he built
a heavy boat in the basement o f his
hom e then hauled it to the lake where
it was equipped with an outboard
motor. He spends several weeks each
summer at the lake.
Aside from his sporting hobbies,
Mr. Pidgeon’s real “ h o b b y ” these days
is trying to keep pace with two small
grandsons.

B E C A U S E — the investment requirements of your

bank are given individual attention by our Invest
ment Division . . . by men whose sound experience
and background qualify them to render you this
service.
B E C A U S E — securities handled for your account are

bought and sold in the market. That means prompt,
efficient service at the most advantageous price.
B E C A U S E —our Investment Division is prepared to

consult with you on particular bond portfolio
problems and to offer specific suggestions based
on your individual needs.
Our diversified experience is at your disposal. . .
your inquiry is invited.

AMERICAN NATIONAL BANK
AND TRUST COMPANY OF CHICAGO
MEMBER F EDE RA 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

LA S A L L E S T R E E T AT W A S H I N G T O N , C H I C A G O 9 0

Northwestern Banker, May, 1949

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

V,'

First W isconsin
N a tio n a l B a n k
CHARTER

NO.

S ta te m e n t

o f (C on d ition

d ir e c to r s
W

illiam

G. Brumder

Senior Vice President
W illiam M errill Chester

President-T reasurer,
T. A. Chapman Company
E. J. D empsey

Attorney, Oshkosh
W

alter

Milwaukee

G eist

President,
Allis-Chalmers Mfg. Co.
Joseph F. H eil

as o f z A p r il I l t h ,

R E S OU RC E S

Cash and Due from Banks................................. $166,502,953.79
U. S. Government Securities.............................

285,189,942.57

Other Bonds and Securities..............................................................
Stock in Federal Reserve Bank
Loans and Discounts.........................................................................

90,325,402.35

Accrued Income Receivable..............................................................

1,360,111.60

Bank Buildings and Equipment. ................................................

3,362,335.24

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

1,286,355.14
$564,603,152.75

W alter V. Johnston

LIABI LI TI ES

Industrialist
President
G eorge E. Long

President, Koehring Co.
Ernst M ahler

Executive Vice President,
Kimberly-Clark Corp.
Robert E. Pabst
Cyrus L. Philipp

President,
Union Refrigerator Transit Co.
H arold H. Seaman

Industrialist

Capital.....................................................................

$ 10,000,000.00

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

10,000,000.00

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

8,247,092.07

Special Reserves (includes amount sufficient
to amortize U. S. Government and all
other securities top a r)................................

9,637,607.72

Reserve for Interest, Taxes, Expenses, Etc.....................................
Deposits...................................................................

510,216,700.50

War Loan DepositAccount.................................

14,523,284.00

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

Lawrence F. Seybold

President,
Jos. Schlitz Brewing Co.

Vice Presidents
Edwin Buchanan
G eorge T. Campbell
D. W esley Correll
Edward R. D roppers

Robert A. U ihlein , Jr.

Jos. Schlitz Brewing Co.

Carl M. Flora
Pierre N. H auser
W illiam J. K lumb
Joseph U. Lademan
Edwin R. O rmsby

John S. O wen
Chester D. Raney
Joseph W . Simpson, Jr.
Roy L. Stone
Robert A. Z entner

Cashier, A. G. Casper
Comptroller, Clarence H. Lichtfeldt

President, Glenogle Co.
Banker

485,510.62

Executive Vice President, W m . T aylor

Joseph E. U ihlein , Jr.
Robert A. U ihlein

524,739,984.50

Senior Vice President, W illiam G. Brumder

Executive Vice President

Erwin C. U ihlein

1,492,957.84

President, W alter K asten

W m . T aylor

President,
Pal-O-Pak Insulation Co.

37,884,699.79

$564,603,152.75

Executive Vice President,
Wisconsin Electric Power Co.

C harles O. T homas

15,976,052.06
600,000.00

President, The Heil Co.

W alter K asten

451,692,896.36

U N P A R A L L E L E D S T A T E WI D E S E R V I C E
Through affiliated banks and correspondent bank relationships — embracing over
90 per cent of all banks in Wisconsin — the First Wisconsin offers unparalleled
statewide banking service.

W illiam D. V ogel

Real Estate and Investments

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Federal Reserve Bank of St. Louis

M E M B E R

F E D E R A L

D E P O S I T

I N S U R A N C E

C O R P O R A T I O N

Northwestern Banker, May, 1949

BANKERS OPTIMISTIC
ABOUT FARM AND
BUSINESS OUTLOOK
(Continued from page 17)
“A decrease in the price of dairy
products has not been too discourag
ing to the dairyman in this area. The
labor situation has improved material
ly, and the farm operator with a wellrounded program feels safety in di
versification. He remembers the ex
perience of the past when the milk
check was a steady portion of his in
come when either disease or rapid
market fluctuations affected his in
come from hogs and cattle.”

•BUSINESS IS STEADY"
By GEORGE A. HAVEN
President, Root River St at e Bank

Chatfield, Minnesota

EFFICIENCY

“Barring storms, the farmers here
expected to be in the fields by the mid
dle of April. The soil is in excellent
condition and the season should be
normal or a little ahead.
“Our deposits are keeping steady
and nearly at peak; loan demand is
good; consumer credit loans are nor
mal and payments are being made
with normal promptness.”

FRIENDLINESS

BALANCED SERVICE
W

/ in /

in ta /

"W EATHER DELAYING
CROPS AND BUSINESS"
Cashier, First Dakota National Bank

in Los Angeles or San Francisco

Yankton, South Dakota

“ The agricultural outlook is good,
although with the amount of moisture
we have had, putting in the crop will
probably be late. While deposits are
off $1,080,000, loans are up over $200,000
in comparison with April 1, 1948. Gen
eral business was very slow the first
three months, largely due to weather
conditions.”

makes this bank’s direct routing and per
sonalized friendly service available to you
in more than 300 communities. Address
your inquiries to Bank of America, 300
Montgomery Street, San Francisco 20; or
660 South Spring Street, Los Angeles 54.
Foreign branches in London, Manila,

"RETAIL TRADE BRISK"
By A. A. KRUSE

York R epresentative: 44 W a ll Street.

Vice President, First St at e Bank

Audubon, Iowa

Correspondents throughout the world.

“The nice spring weather has given
the farmers a good start on their
spring work. It is also beneficial to
the early pigs and other live stock.
Most of our feeders are sitting rather
solid, and although it appears now
that they will not make the money
they did formerly, most of them will
break even or a little better. Our al
falfa mill will not operate this year
because of a shortage of hay, and it is
doubtful at this time whether our corn
canning company will operate as they
have a large carry over. Retail trade
is still rather brisk in most lines, and
there will be considerable building
here this year.
“ Our loans are beginning to taper
(Turn to page 32, please)

IBmtk of Amerin*
Si n

ag s

ASSOCIATION

California s Statewide Bank
Bank of America Travelers Cheques are known
the world over. Sell them to your customers, some
of whom may be coming to California during this
Gold Rush Centennial year.

MEMBER FEDERAL DEPOSIT INSURANCE

Nort hwest ern Banker, May, 1949

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

CORPORATION

•

MEMBER

FEDERAL RESERVE

Tokyo, Kobe, Yokohama, Shanghai. New

™

By H. C. DANFORTH

me account with Bank of America

NATIONAL

SYSTEM

)

■A

im tK I TORS

MANUFACTURERS

EDWIN J. BEINECKE
Chairman, The S p erry &
H utchinson Co.

TRUST

COMPANY

EDGAR S. BLOOM
Chairman, A tla n tic, G u lf and
W est Indies S team ship L ines

ALVIN G. BRUSH
Chairm an, A m erican H om e
P roducts C orpora tion

LOU R. CRANDALL

Condensed Statement of Condition as at close of business
March 31, 1949

P resid en t, G eorge A . F uller
Com pany

CHARLES A. DANA
Chairman, Dana C orporation

HORACE C. FLANIGAN
Vice-C hairm an o f th e Board

JOHN M. FRANKLIN
P resid en t, U nited S tates L ines
Com pany

PAOLINO GERLI
P resid en t, G erli & C o., I n c .

HARVEY D. GIBSON
P resident

FREDERICK GRETSCH
P resid en t, L in coln Savings
Bank

JOHN L. JOHNSTON
D irector, L am b ert C om pany

OSWALD L. JOHNSTON
S im pson T hacher & B a rtlett

RESOURCES

KENNETH F. MacLELLAN

P resid en t, Em igrant Indus
trial Savings Bank

JOHN P. MAGUIRE
P resid en t, John P . M aguire &
C o ., In c.

C. R. PALMER
D irector, C lu ett P ea b od y &
C o ., In c.

GEORGE J. PATTERSON
P resid en t, S cranton & L ehigh

WILLIAM G. RABE
V ice P resid en t

HAROLD C. RICHARD
New Y ork C ity

HAROLD V. SMITH
P resid en t, H om e Insurance C o.

5,149,896.01
32,642,276.62
3,150,000.00
17,158,660.85
572,763.555.83
17,216.948.40
10,310.390.72
450.815.40
4.509,955.52
5.672.038.13
2,284,465,405.25

P resid en t, U n ited B iscu it
Com pany o f A m erica

JOHN T. MADDEN

675,610,338.00
939,830,529.77

Cash and Due from Banks . . .
U. S. Government Securities . .
U. S. Government Insured F. H. A
M o r t g a g e s ................................
State and Municipal Bonds . . .
Stock of Federal Reserve Bank
Other S e c u r it ie s ...........................
Loans, Bills Purchased and Bankers
A cce p ta n ce s................................
M o r t g a g e s .....................................
Banking H o u s e s ...........................
Other Real Estate Equities .
Customers’ Liability for Acceptances
Accrued Interest and Other Resources

LlAItIM TIES

Capital . . . . . $45,000,000.00
Surplus
. . . .
60,000,000.00
Undivided Profits .
29.581,940.82
Reserve for Contingencies . . . .
Reserves for Taxes,
Unearned Discount, Interest, etc. .
Dividend Payable April 15, 1949 .
Outstanding Acceptances . . . .
Liability as Endorser on Acceptances
and Foreign B i l l s ..........................
Cash held as Collateral or in Escrow
D e p o s its ................................................

$ 134.581.940.82
4,551,021.13
5,886.245.47
1,350,000.00
4.796,364.52
2,442.408.50
19,249,626.45
2,111.607,798.36
$2,284,465,405.25

ERNEST STAUFFEN
Chairm an, Trust C om m ittee
U n ited States G ov ern m en t a n d o th e r secu rities ca rried at $ 9 0 ,9 8 9 ,2 7 0 .2 2 a re p le d g e d to secu re

L. A. VAN BOMEL

p u b lic fu n d s a n d trust d ep osits a n d f o r o th e r p u rp o ses as req u ired o r p e r m itte d b y law .

P resid en t, National D airy
P rod u cts C orpora tion

GUY W. VAUGHAN
Chairman, C urtiss-W right
C orpora tion

HENRY C. VON ELM
Chairman o f the Board

ALBERT N. WILLIAMS

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

P resid en t, W estinghouse
A ir B rake Com pany

Head Office: 55 Broad Street. New York City
M O R E T H A N 7 5 O FFICES IN G R E A T E R NEW Y O R K

European Representative Office: 1, Cornhill, London, E. C. 3
M em b er Federal R eserve System
M em ber N ew York Clearing H ou se Association
M e m b er Federal D eposit Insurance Corporation

N o r t h w e s t e r n Banker, M a y , 1949

H a n k ers O ptim istic A b o u t
F arm and B u sin ess O utlook
(Continued from page 30)
off some, and we expect a decided de
crease in our deposits throughout the
balance of the year. It is doubtful
in our minds whether or not our ac
tivity will decrease to any extent. The
banks have done a good job selling
patrons on the value of a checking ac
count, which indicates that we will
have to look to service charges more
and more as a source of income. We
wish we could increase our savings

account totals, but doubt that increas
ing our rates would have much effect.

' PROSPECTS ARE GOOD"
By R. J. SWANSON
Cashier,

Citizens

St at e

Bank

farmers report some excess moisture.
Prospects for this time of the year
I would say are good.
“ The trend in bank deposits seems
to be down, with an increase in loan
demands. With prices on the down
trend we are screening our loans more
carefully.”

"LOOKING FORWARD TO
A GOOD yEAR"
By H. C. OVERBECK

Clarinda, Iowa

“The farmers are very busy in the
fields, and much oats seeding has been
in process. The ground is in good
working condition, although some

A r e You Taking Advantage of All
Our Services for Correspondents 9

Cashier,

Boone St at e Bank and
Trust Company

Boone, Iowa

“The agricultural and general busi
ness outlook in our locality appears to
be good.
“On the whole, farmers seem to have
fared fairly well in 1948, although a
few feeders lost some money in their
feeding operations. Business has been
good, and business men appear satis
fied. They are looking forward to a
good year, although they feel that
more actual selling will need to be
done than in the past few years.
“Activity in our bank seems brisk.
Deposits have held up somewhat bet
ter than we anticipated. However,
they are off about $400,000 from what
they were a year ago.
“ Demands for loans are greater than
we expected and our loans outstanding
are approximately $350,000 more than
they were a year ago.
“Although we are looking forward
to a good year, we are trying to pro
ceed cautiously, without being over
cautious.”

"RETAIL BUSINESS SLOW ;
FARM, BANK OUTLOOK O.K."
By E. L. WEGMAN
Vice

President,

Citizens

Savings

-t

Bank

Anamosa, Iowa

One o f the reasons why Commerce is so well known as the Banker’s
Bank is that every banking service known to the industry is p ro
vided our correspondents. It is our sincere desire that all corre
spondent banks avail themselves of all our services whenever it
is advantageous for them to do so. Pleasing, dependable, com plete
cooperation awaits YO U at Commerce.

(ommercefrust (ompany9
C a p it a l ^J~uncls é^xceeJ

W r ftlo n 2 > o ( L r ,

KANSAS CITY'S LARGEST BANK
Established I8b5

Northwestern Banker, May, 1949

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

ttfiSHESimSfBS

“ Retail business in our community
has slowed up to some extent and
there are some complaints about col
lections being slower.
“ The agricultural situation appears
very favorable. Most oats are sowed
and everyone is enthused.
“ Banking activities continue at about
an even keel, with deposits down
slightly, loan volume holding up well
and we are looking forward to a sat
isfactory year.”

Name Changed
Investors Syndicate, national distrib
utor of investment securities with
h e a d q u a rte rs in Minneapolis, has
changed its name to Investors Diver
sified Services, Inc., with filing of noti
fication of change of name with the
secretary of state of Minnesota by E.
E. Crabb, president of the company.
Major reasons for the change were
to make the name more descriptive of
company functions and services.

Argentina
Buenos Aires
Flores
Plaza Once
Rosario
B ra z il
Rio de Janeiro
Porto Alegre
Recife (Pernambuco)
Santos
Sào Paulo
Cana! Zone
Balboa
Cristobal
C h ile
Santiago
Valparaiso
C h in a
Shanghai
C o lo m b i a

Bogota
Barranquilla
Medellin

It's surprising how often you’ll find a group of bankers, all

Cuba
Havana
Cuatro Caminos
Galiano
La lonja
Caibarien
Cardenas
Manzanillo
Matanzas
Santiago

using facilities of the National City Bank — and all using
different phases of it.
One may have a customer trading overseas. He’ ll call on the
world-wide network of NCB branches and correspondent banks
to fill out his foreign banking services.

E n g la n d
London
1 17, Old Brood St.
1 1, Waterloo Place

Another banker may depend on investment experts of the
National City Bank for advice and analysis of his bank’s

F ra n c e
Paris (IBC Branch)

portfolio.

Hong K o n g
India
Bombay
Calcutta

And so it goes, from the collection of checks and the gather

Japan
Tokyo
Osaka
Yokohama

ing of information to participation in local loans, and a great
many other specialized services.

M exico
Mexico City

In short, many bankers find it mighty helpful to have the

P e ru
Lima

National City Bank as a correspondent.

P h ilip p in e s
Manila
Port Area
Cebu
Clark Field

THE NATIONAL CITY BANK OF N E W YORK

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

Head Office: 55 Wall Street, New York 15, N. Y.
M ï à / In

S J ia ji/i fjtfy

Member Federal Deposit Insurance Corporation

P u e r to R ico
San Juan
Arecibo
Bayamon
Caguas
Mayaguez
Ponce
R ep u b lic of
P anam a
Panama
S in g a p o re
U rug u ay
Montevideo
V e n e zu e la
Caracas

N o r t h w e s t e r n B a n k e r , May, 1949

T ren d s in L iv esto ck Loti ns
(Continued from page 21)
imperative to call their loans thus
forcing the liquidation of many farms
and livestock loans. As a result cattle
were thrown upon a market which
was already strained and prices were
further depressed. Today few banks
have more than 50 per cent of their
deposits loaned out, the balance being
in cash and governments. If this ratio
is maintained, loss of deposits could
he sustained with the sale of govern
ment securities thus permitting an
orderly liquidation of loans if such be
came necessary.

5. Another difference in the two
periods and a factor which has been
most important, at least up to the
present time, is the fact that following
World War I, we carried out a dis
armament program which in itself
was deflationary as contrasted in this
period with our European Recovery
Program, perhaps better known as the
Marshall Plan, in which billions have
been appropriated for the recovery of
Europe, and along with this a pre
paredness program unparalleled in
peacetime in this country. The money
expended in both of these programs,
much of which represents direct pur
chases of agricultural products, of
course, will reflect itself for some
time in agricultural and industrial
prices including cattle and other live
stock.
I have just rehearsed several factors
which have had considerable influ
ence on our postwar period. Let us

QuUt.

look for a few moments at the current
situation in business.
1. Trade is reported sluggish. De
partment store sales are running well
below a year ago, although there has
been some recent improvement. Car
loadings are down.
2. Business insolvencies are the
highest since 1942. Dun & Bradstreet
reports 210 businesses insolvent for
week ending March 17th.
3. Collection attorneys and agencies
are reporting the highest delinquen
cies in accounts in five years.
4. Unemployment c o mp e n s a t i o n
rolls have continued to rise with
about 3,500,000 now unemployed. This
is a figure which should be closely
watched. March figures show some
improvement.
5. People and business alike are
spending less freely. Some have been
priced out of the market, some have
had a decline in their dollar income—
some find that they have contracted
all of the indebtedness which they can
carry—others seem to think it is about
time to incr-ease their savings. Most
of these people have purchased heav
ily during the past two or three years
and now feel that they can wait for
lower prices or better quality.
Against these pessimistic factors we
have:
1. More and continued spending by
the government.
2. Tremendous construction pro-

ba&Lwi&JvLiu . . .
to all Midwest Bankers
for your 1 9 4 9 Convention
W e invite you to visit our plant
the next time you are in Sioux Falls
TOURS 9 :3 0 A.M. AND 1 :0 0 P.M. EXCEPT
SATURDAY AT 9 :3 0 A.M. ONLY

o h n

o r r e l l

& C o.

Established in England in 1 8 2 7 • • In America since 1 8 6 5
S I O U X

N o r t h w e s t e r n B a n k e r , May, 1949

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

FA LLS,

gram of States, Municipalities and po
litical subdivisions.
3. The E. C. A. (European Coopera
tion Administration) program assures
the country of export supplies.
4. Farm price supports.
5. Unemployment compensation in
surance.
6. Easy money policy.
7. Our economy is in a strong, liouid
position and, as already pointed out,
we have no such structure of private
debt nor evidence of financial weak
ness which we experienced in former
depression periods.

Although I feel that the preponder
ance of evidence right now points to
a cattle market which should cause
no great concern, I would wish to
make my cattle loans on a basis that
another 40-50 per cent break would not
result in a loss to the lender.
I would continue to point out to my
borrower that we have passed the
peak of inflation in livestock prices
and were now going down the other
side which could be most hazardous,
that his future operations and man
agement be so improved and con
ducted as to minimize any market
breaks which might occur. During
the past three or four years almost
any type of feeding has resulted in
profit to the feeder. From now on out
there will be much to be gained by
returning to those fundamental prin
ciples which make for successful beef
cattle feeding during peacetime peri
ods.—The End.

Women Bankers Convene
Women bankers from ali parts of the
middlewest met in Milwaukee last
month for the joint conference of the
Lake and Midwest Divisions of the
Association of Bank Women.
The conference opened with an ad
dress of welcome by Hon. Frank P.
Zeidler, mayor of Milwaukee. Three
talks were scheduled: “ The Value of
a Trust Department to a Commercial
Bank,” by Thomas A. Moore, vice pres
ident and trust officer, Marine National
Exchange Bank of Milwaukee; “ Pres
ent Trends in the Extension of Credit,”
by Jacobus Kruyne, vice president,
Marshall & Ilsley Bank, Milwaukee;
“ Public Relations,” by Larry Smotherman, director of public relations, First
Wisconsin National Bank of Milwau
kee.
The Marine National Exchange Bank
of Milwaukee was host before the ban
quet at the Milwaukee Country Club.
Miss Marion Mattson, national vice
president of the A.B.W. and assistant
cashier, Northwestern National Bank
of Minneapolis, presided at the ban
quet.

F ield W a reh o u se R ec eip ts
NE sure way of testing the worth a framework to support what appeared
of field warehouse receipts is to to be the required number of units
comprising the inventory.
have a prospective loss on collateral
secured by these receipts.
“The borrower was unable to pay
We quote a letter written by J. P. for the shortage and a substantial loss
Mueller, executive vice president of would have been sustained if the loan
Teutonia Avenue State Bank, Milwau- had been on an unsecured basis. That
is when field warehousing proved its
worth.

“We did not call the loan, but the
warehouse company immediately guar
anteed payment of any loss occasioned
by the shortage. This was done to
aid in the liquidation of the inventory
which was handled by the warehouse

J . P. M u elle r (le ft ), executive vice
president of Teutonia Avenue State Bank,
Milwaukee, receives check from H e r b e r t
A. R e se n h o e f t , in charge o f Milwaukee
Office o f St. Paul Terminal Warehouse Co.

kee, citing a recent experience his
bank had with a field warehouse com
pany and receipts it had issued.
“ It is not often that an occasion
arises that will test the adequacy or
worth of certain products or services.
It is a natural tendency to question
their value until it is proved. It is
hard to tell, for example, if your pro
tection service is adequate until a
burglary is attempted.
“The following experience which we
had recently with a warehouse receipt
loan proved to us the merits of field
warehousing, as conducted by a repu
table company:
“A profitable, well established busi
ness, with which we are familiar, was
sold. The new owner was a man with
a good reputation and experienced in
the line the company handled. The
normal inventory requirements of the
business nesessitated borrowings be
yond the open line of credit that could
be extended, so a field warehousing
system was installed for us by the St.
Paul Terminal Warehouse Company.
“The operation continued normally
for about a year. An analysis of the
account showed that it was progress
ing satisfactorily. The activity and in
ventory turnover was reasonable and
every indication was that a good loan
had been made.
“ The first knowledge we had that
everything was not satisfactory was a
report from the warehouse company
that there was a substantial shortage
in the inventory. The shortage had
been cleverly concealed by the use of

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

company. The entire loan, together
with interest, has been paid in full.
What would have been a substantial
loss has proved to be a profitable
loan.”

Bank Field Changes
Ray Evans, former University of
Kansas All-American football star,
who has been a member of the staff
of The City National Bank & Trust
Company of Kansas City, Missouri, for
the last year, since May 1st represents
the bank’s correspondent bank divi
sion in northern Kansas, succeeding
Guy M. Hadsell, assistant cashier,
whose new territory is Nebraska, Colo
rado and Wyoming.

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■

City_________________ Zone___ State___ I______

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N o r t h w e s t e r n B a n k e r , M a y , 7949

How
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«an

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# This is done by consolidating all microfilm

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

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Federal Reserve Bank of St. Louis

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Opens Iowa Branch

Guaranty Trust Company o f New \ ork
140 Broadway
Fifth Ave. at 44th St.

Madison Ave. at 60th St.

LONDON

•

PARIS

•

Rockefeller Plaza at 50th St.

L. S. Coates, executive vice presi
dent of the Lawrence Warehouse Com
pany, has announced that a new
branch sales and operating office of
the company has been opened in Des
Moines, Iowa, located in the Insurance
Exchange Building. This move has

BRUSSELS

Condensed Statement of Condition, March 31, 1949
RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and Bankers.................................... $ 697,335,740.28
U. S. Government O b lig a tio n s ....................................
920,757,578.35
Loans and Bills P u r c h a s e d ..........................................
1,012,290,013.76
Public S e c u r i t i e s ........................ $
85,669,472.40
Stock of Federal Reserve Bank .
9,000,000.00
Other Securities and Obligations .
8,603,449.38
Credits Granted on Acceptances .
10,373,456.80
Accrued Interest and Accounts
Receivable . . . . . .
6,810,077.26
Real Estate Bonds and Mortgages
2,364,525.12
122,820,980.96
Bank P r e m is e s ........................
4,749,272.78
Other Real Estate . . . .
36,633.05
$2,757,990,219.18
Total Resources
LIABILITIES
Capital
. . . . . . .
100.000,000.00
Surplus F u n d ........................
200,000,000.00
Undivided Profits . . . .
69,303,268.16
Total Capital Funds .
$ 369,303,268.16
D e p o s it s ....................................
. $2,267,890.884.65
Treasurer’s Checks Outstanding
41,649,391.54
Total Deposits . . . .
2,309,540,276.19
Acceptances ..............................
15,414,998.67
.$
Less: Own Acceptances Held
for Investment
. . . .
4,232,004.99
11,182,993.68
$
Dividend Payable April 1, 1949
3,000,000.00
Items in Transit with Foreign
707,019.45
B r a n c h e s ..............................
Accounts Payable, Reserve for
64,256,661.70
Expenses, Taxes, etc.
79,146,674.83
Total Liabilities
$2,757,990,219.18

Securities carried at $132,668,672.88 in the above Statement are pledged to qualify for
fiduciary powers, to secure public moneys as required by law. and for other purposes.
LUTHER CLEVELAND
Chairman o f the Board

W ILLIAM L. KL E IT Z
President

DIRECTORS
GEORGE G. ALLEN
Director, BritishAmerican Tobacco Company, Limited, and
Chairman of the Board. Duke Power Company
WILLIAM B. BELL
President,
American Cyanamid Company
F. W. CHARSKE
Chairman, Executive
Committee, Union Pacific Railroad Company
J. LUTHER CLEVELAND Chairman of the Board
W. PALEN CONWAY
CHARLES P. COOPER
President,
The Presbyterian Hospital in the City o f New York
W INTHROP M. CRANE, Jr.
President,
Crane & Co., Inc., Dalton, Mass.
STUART M. CROCKER
President.
The Columbia Gas System, Inc.
JOHN W. DAVIS
^f Davis Polk Wardwell
Sunderland & Kiend!
CHARLES E. DUNLAP
President.
Berwind-White Coal Mining Company
GANO DUNN
President
The J. G. White Engineering Corporation
W ALTER S. FRAN KLIN
Executive VicePresident. The Pennsylvania Railroad Company

N o r t h w e s t e r n Banker,

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Federal Reserve Bank of St. Louis

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

W ILLIAM C. POTTER
GEORGE E. ROOSEVELT

Retired
of Roosevelt & Son

EUGENE W. STETSON
Chairman, Executive
Committee, Illinois Central Railroad Company
THOMAS J. WATSON
President
International Business Machines Corporation
CHARLES E. WILSON

President, General
Electric Company
ROBERT W. W OODRUFI
Chairman,
Executive Committee, The Coca-Cola Company

M em b er F ed eral D ep o sit I n s u r a n c e C o rp o ra tio n

M a y , 1949

President

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

MYRON C. HUNT
Iowa Branch Manager for
Lawrence Warehouse Company

been taken in order to keep pace with
the company’s business growth and ex
pansion throughout the state of Iowa.
Myron C. Hunt has been appointed
branch manager of the new office and
will represent the company’s interests
throughout the entire Iowa territory.
Mr. Hunt has been actively associated
with the Lawrence Warehouse Com
pany for many years and is experi
enced in both operating and sales ac
tivity.

Sound Film
A 15-minute, full color, 16 mm. sound
motion picture featuring the advan
tages of electric typing has been re
leased by Remington Rand Inc. It is
entitled “The New Remington Electric
DeLuxe Typewriter.”
It stresses the all-purpose utility, the
outstanding operating convenience and
the high quality work possible with
this compact, smart looking addition to
the famed line of Remington type
writers.
The film is narrated by Veteran An
nouncer Jean Paul King and was pro
duced by Seymour Zweibel Produc
tions.
Prints, together w i t h projection
equipment and an experienced opera
tor, are available for free showing or
booking through any one of Reming
ton Rand’s branch offices. In outlying
a r e a s , bookings can be arranged
through the company’s home office at
315 Fourth Avenue, New York 10,
New York.

vest

*! i:\T S

The ttuttooh for Investm ents
is

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lo/

F a r from

The Treasury Will Not Permit Any
Serious Let-down in the Pace of Industry
By

RAYMOND TRIGGER
Investm ent Analyst
New

FTER three years of unremit
ting effort to hold inflation in
check, the fiscal authorities in
Washington have adopted a new line.
The object now is to cushion, or pre
vent anything resembling serious de
flation. The Federal Reserve Board
is, at least nominally, directing the
campaign, but the Treasury has a far
greater stake. The Reserve, so often
described as wise, but timid and late,
has only its reputation at stake. The
Treasury has a debt of more than 250
billions to be serviced and to reduce
each year. It may be called upon to
find the money with which to rearm
the country and will certainly have to
find the money with which to continue
aid to western Europe.
Under these conditions, no serious
let-down in the pace of industry can
be permitted since the Treasury must
look to taxes on earnings and profits
for its revenues. There has already
been some let-down, of course, but it
is not serious by any means. Prices
are too high in many lines, but price
softening is a day-to-day occurrence in
many others. Manufacturers insist
that costs are so high that prices can
not be lowered, but they admit that
only lower prices will provide the
necessary stimulus to sales.

Outlook Not Gloomy
Actually, the situation is far from
gloomy. A modicum of unemploy
ment, while it is contrary to the the
ories of those who consider full em
ployment sacrosanct, and even may be
considered a little cold-blooded, is, in
fact, at least as much of a good as an
evil. By an entirely understandable
quirk of human nature, workers are
inclined to produce a little more when
their jobs are not entirely secure, or
when they know that they can be re
placed easily. Thus, from the over-all
viewpoint, a slightly smaller working
population may produce as much, or

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Federal Reserve Bank of St. Louis

This is a discussion of factors
affecting your investment port
folio. If you have any questions,
or if you find yourself in dis
agreement with comments here
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
column discuss specific securities.
even more, goods as when everyone,
however efficient or otherwise, is on a
pay roll.
Another consideration is that the
indexes of production and activity are
weighted in favor of the heavy indus
tries. This explains why production
indexes have not fallen as much as
employment. Some of the lighter lines
are in the doldrums and it is in these
lines that unemployment is significant.
Of course, if the recession persists and
deepens, despite the efforts of the fis
cal authorities, the heavy lines will
reflect it in due course.
But there is an alternative. The
lighter lines may easily enough pick
up. The whole picture would then
change. Employment would rise at
once and the indexes of production
would advance again. The second
quarter of 1949 likely will provide the
key to the whole year’s showing.
There has, undoubtedly, been a slow
ing down of spending and an increase
in saving by consumers. This is only
natural when employment falls a little
and over-time and bonuses disappear.
Should there be even a mild spring
upturn, though, the public psychology
might quickly reverse. If so, the Fed
eral Reserve Bank has made it easier
to buy on time.
If things go as well as they might,

Y o rk City

the powers of the authorities may not
be invoked. If events go badly, much
more may be done to ward off a seri
ous recession. One action would be
to reduce the reserves required of
banks. It may be tried. If the Con
gress gets hopelessly snarled in “must”
legislation, there could be an auto
matic reduction in reserves after June
30th. The Reserve Board, of course, is
not likely to reduce reserves while it
is still seeking extension of its pow
ers, but it might restore lower levels
just before its powers run out. rather
than have them lowered automatically.
In the light of the almost indiscern
ible effect of lower margins, it is fair
to ask whether or not lower bank re
serves would have much effect. They
would, certainly, give banks released
reserves with which to buy govern
ments. Whether or not the general
public would be impressed is highly
doubtful.
In the second quarter of 1940, a
drive will be started for the savings
of the private investor—the rank and
file—the people that, in the last anal
ysis, determine the nation’s economy.
Oddly enough, if they are sufficiently
subdued and savings-conscious, rather
than inclined to spend, the drive may
be a great success and no help at all
to the industrial machine itself.

Taxes a Problem
Taxes remain an insoluble problem.
The rate could easily enough be sus
tained were productivity, prices, prof
its, earnings and incomes to reach new
highs. The reverse of the coin is that
a burdensome rate (under favoring
conditions) can become a crippling
rate under mild adversity. Canada has
lowered its tax rates and has taken
a tentative step or two toward encour
aging venture capital. Britain adheres
to its miserable philosophy of dragging
everyone down to the lowest level—
just above bare subsistence. It would
N or t h w es t e r n Banker, May ,

1949

In vestm en ts

seem that the U. S. might profitably
look at the two and make a choice
between a young and vigorous coun
try, such as Canada, and an older and
perhaps less venturesome country,
such as Britain.
The Congress may reject higher tax
ation. The Treasury may convert its
savings bond drive into a return to
deficit financing, of course, but the re
sult might be stimulating. What
emerges with reasonable clarity from
this welter of conjectures?
The outlook is for an increase of
bank reserves, by one technique or
another. Government bond prices like
ly will hold around recent tops, though
they may not advance appreciably fur
ther. Top-grade corporates appear
high enough and in a more vulnerable
position than governments, marketwise and with due allowance for the
difference in the credit and market
ability.
Most commercial bankers, however,
do not buy the best corporates. The
more usual policy is to hold govern
ments as a certain backlog and, in an

attempt to improve the over-all yield
from investments, dip down into the
lower-rated corporates. This policy
pays off in good times, but carries
added risks that become apparent in
periods when the industrial machine
is slowing down. The conclusion, of
course, is that one may compromise
when only governments and highestrated corporates are concerned, but
that one may not if only fair-grade
credits are opposed to governments.

The Prudent Investor
The likelihood is that governments
will stand up, marketwise. In the na
ture of things, they shouldn’t go much
higher. It is also possible, of course,
that a general appraisal of the market
will be proved wrong. Accordingly,
the prudent investor will strive less to
forecast the general trend of events
than to discover apparent discrepan
cies in the going markets.
There appear to be no undue advan
tages, quality considered, between the
various grades of corporates. If any
thing, they are all too close together.
By which is meant, the market is not

INVESTM EN T
SECURITIES
Public Utility
Industrial
Railroad
M unicipal

A .C . A

L L Y N

and

com pany

Incorporated
100
\ew

Y ork
O m aha

W est

M on roe

S tr e e t, C h ic a g o

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

B oston
K ansas

C it v

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

WHEELOCK & CUMMINS
I n c o r p o ra t e d

Members Chicago Stock Exchange
Underwriters and Distributors of Investment Securities
200 Equitable Building
Phone 4-7158
Teletype DM 184

135 South LaSalle Street
Phone Andover 6700
Teletype CG 245

DES MOINES, IOW A

CHICAGO, ILLINOIS

N o r t h w e s t e r n B a n k e r , May, 1949

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Federal Reserve Bank of St. Louis

properly performing its traditional
function of distinguishing between
the best, and the not-so-good. There
may be no upset. But, if there is, it
will be the lower-grades which will
suffer most, both absolutely and rela
tively. The normal counsel would be
to up-grade one’s portfolio. That would
involve only a modest sacrifice in
yield. Even so, one would not have
a particular bargain and the question
might properly be asked: Why accept
any reduction in yield if one is still
buying into a high-priced situation?
In other words, upgrading is strictly
defensive. All that can be hoped for
is that the top-grades will decline less.
Small comfort, indeed.

A-

Attractive Buys
There are, of course, attractive buys
in the market. Rail equipments, which
were dealt with at length in this col
umn a month ago, certainly deserve
intensive study. Marketwise, and per
haps only temporarily, they do not
seem over-valued. Dealers, and it is
quite unusual, have fairly extensive
inventories.
Of at least equal appeal are taxexempt obligations of states, political
subdivisions thereof and “authorities *
and the like, which issue bonds to
finance self-liquidating projects. Here
again, it is largely a matter of supply
and demand. One authority, writing
in a magazine enjoying national dis
tribution, went on record toward the
middle of March in these words:
“And because they are materially
behind the market in terms of taxexemption value, municipals, once the
matter of oversupply is remedied,
should do better than the general
market.” Again; two weeks later, the
opinion was that:
“ Municipals are still far behind the
market, overdiscounting any income
tax cuts at all likely within the next
few years. However, oversupply of
new issues still prevails and it 'is only
this week that dealers will encounter
a resting period in which to discover
at what prices good buying can be
stimulated. Real investment opportu
nities may be turned up as dealers
reprice inventory for quick sales.”
Since then a large issue of New
York City housing bonds was sold,
competitively, and reoffered on a scale
which attracted a wide variety of buy
ers, including insurance companies.
The latter are little, if at all, concerned
with the tax exemption aspects of
municipals. Therefore, inescapably,
the quality and the yield were the
determining factors.

Commercial Bank Problems
Commercial banks, of course, have
their own individual problems, usually
more difficult than those faced by in
surance company buyers who are al-

Investments

ways long-term investors. At the same
time, commercial banks are much more
than investors in securities, whereas
skillful investment is the really seri
ous activity of insurance companies
since their underwriting proclivities
are, in addition to being regulated,
largely a matter of calculating poten
tial losses on the basis of recorded
experience.

previously held this position in addi
tion to his duties as treasurer.
Mr. Steinhelber, who was born Au
gust 16, 1906, at Castalia, Iowa, is a
veteran of 26 years’ service with the
company and is a member of the MM
Old-Timer’s Club.

Thus, when the insurance compa
nies take favorable action on munici
pals, although the exemption from in
come tax weighs so lightly, it is rea
sonable to conclude that municipals
are attractively priced. The buyer
who looks primarily to security and
yield need not look too closely at
dealer inventories or prospective emis
sions. any more than one looks too
closely into the mouth of a gift horse.
—The End.

Last month the City National Bank
and Trust Company of Chicago pre
sented over television a sound film

Bank Presents Feature

version of the colorful pageant “Wheels
A’Rolling” which was the outstanding
feature of the Railroad Fair held in
Chicago last year.
Aside from paying tribute to the
railroads of America, this great show
was brought to thousands of shut-ins
who were unable to see it at the fair.
The Railroad Fair, which was visited
by over 2,500,000 people in 1948, will
reopen with a “new look” on June
25th and will continue through Octo
ber 2nd.

The partners of

H O LLEY, D A Y T O N & GERNON

NEWS AND VIEWS
(Continued from page 18)

announce that, effective April 7, 1949,

Lloyd A. Wiseman of the Crocker
First National Bank of San Francisco,
has been receiving congratulations
from his many friends following his
recent promotion from assistant cash
ier to assistant vice president. Mr.
Wiseman is well known among mem
bers of the Financial Public Relations
Association, being in charge of the
bank’s advertising, and he also travels
many miles each year attending state
bankers’ association conventions in
the western states.

the firm name has been changed to

DAYTON & GERNON
Members Chicago Stock Exchange and Chicago Board of Trade

105 SOUTH LA SALLE STREET, CHICAGO 3

Minneapolis • Madison • La Crosse • Eau Claire • Fond Du Lac • Wausau

Partners

Clarence A. Diehl, 79, a former vice

president of the Iowa-Des Moines Na
tional Bank, died recently at Clarinda,
Iowa, following a long illness. He
was in the correspondent bank depart
ment of the Iowa-Des Moines National
Bank when ill health caused his re
tirement January 1, 1947. He began
his banking career with the former
Des Moines National Bank in 1914.
Surviving are his wife, Catherine
B., a son, Philip at Yakima, Washing
ton; a daughter Mrs. Lucile Travis,
Pasadena, California; and one sister,
Mrs. J. K. Pemberton, Des Moines.
Mr. and Mrs. S. E. Coquillette left
recently on a motor trip to Florida
where they spent a very enjoyable
month’s vacation. Mr. Coquillette is
chairman of the board of The Mer
chants National Bank of Cedar Rapids,
Iowa.
S. L. Angle, treasurer of Minneap-

olis-Moline, has announced the appoint
ment of D. C. Steinhelber to the
position of controller. Mr. Angle

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Federal Reserve Bank of St. Louis

WARD W. DAYTON
EDWARD T. GERNON
LEONARD V. DAYTON
ERNEST A. MAYER
JOSEPH C. ORES
ELIZABETH L. DAYTON

Federal Home Loan Bank of Des Moines
DES MOINES, IO W A
STATEMENT OF CONDITION, APRIL 1, 1949
R E S O U R C E S
Ca sh
..................................................... S 1 ,1 0 4 ,0 4 9 .2 4
Investm en ts:
U . S . Goverm ent
O b lig a
$ 2 5 ,9 3 8 ,4 0 2 .4 5
tions
C o n so li
dated
F H LB
O b lig a
1 , 2 7 7 ,1 5 5 .0 8
2 7 ,2 1 5 ,5 5 7 .5 3
tions
Ad van ces to M e m b e rs..................
Accru ed Interest R e c e i v a b le . ..
Co nsolid ated O b lig atio ns—
E xp e n se .........................................
O ther R e s o u r c e s ..............................
F u rn itu re and Eq u ip m e n t
(C o st $ 1 0 ,5 7 5 .6 6 )

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

L I A B I L I T I E S
A N D
D eposits— M embers .................. S
D eposits— O th ers ........................
A ccru ed Interest P a y a b le . . . .
* Consolidated O blig ations F H L
Banks
......................................
C a p ita l Stock Su b scrip tio n s
P a id In :
U . S .G o v
ernm ent $ 5 ,7 9 8 ,7 0 0 .0 0
M ember In
stitu tio n s 9 ,3 2 0 ,1 0 0 .0 0
S u rp lu s:
Reserves . . $ 1 , 6 4 1 . 4 3 3 . 1 7
U n d ivided
Profits .
1 6 1 ,5 3 3 .9 9

C A P I T A L
7 ,0 4 8 ,4 7 9 .7 8
2 ,0 0 0 .0 0
3 3 2 ,1 1 9 .9 4
2 7 ,0 0 0 .0 0 0 .0 0

1 5 ,1 1 8 ,8 0 0 .0 0

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

‘ Participation in $362.500.000.00 Consolidated Federal Home Loan Bank Obligations issued by
the Home Loan Bank Board and now outstanding, which are the joint and several obligations of all
Federal Home Loan Banks.
N o r t h w e s t e r n Banker, M a y , 1949

M E A T 'S
THE

T H I N G
Every nut shell looks the same to the untrained eye,
and so, also, every insurance policy reads about the
same for large type. It is in the specifications and the
fine type that policies differ. The best agent is he who
is familiar with the needs of his policyholder and can
fit the insurance to his needs.
You seldom see a squirrel crack a bad nut and you
seldom find a banker-insurance agent who writes
ineffectual or insufficient insurance.
W e offer a full line of Fire, Auto and Plate Glass
Insurance.

WESTERN MUTUAL
FIRE INSURANCE CO.

N o r t h w e s t e r n B a n k e r , M a y , 1949

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

INSURANCE

H ow the H anker
Can in crea se H is
Insurance Sales —
Let Your Customers and Prospects
Help to Do Your Selling
By EUGENE A. CONKLIN
Denver, C o l o r a d o

EWSPAPER advertising has al month to month. Each customer rep
ways proven literally and fig resents a different type of insurance
uratively somewhat of a thorny and usually a different wage classifica
problem for the insurance agency. Yet tion as well, thus making for variety
no agency exists in the long run with and pleasant, informative reading on
out making some usage of newspaper the part of the newspaper public.
Another insurance agency works in
advertising as a media. With this
thought uppermost in mind it might cooperation with a local furniture
prove fruitful to review some of the store, appliance center, apparel retail
methods of newspaper advertising er or other Main Street merchant.
which have been profitably employed Half of each advertisement displays
during recent months by insurance merchandise or apparel on sale at the
agencies throughout the United States. merchant’s establishment. The remain
One insurance agency selects from der of the advertisement emphasizes
among his policy holders one patron the theme “Your priceless furniture
weekly. Sometimes it is a business may be destroyed by fire, windstorm
man. sometimes a housewife, often a or other disaster — be properly in
career woman, and now and again a sured.” Or in the case of a cooperative
child teen-ager or even a very youth ad with an apparel retailer the theme
ful edition. Each individual chosen is “Your choice of wearing apparel
has his or her picture taken and di stamps your appearance—your choice
rectly underneath the photo is a para of insurance stamps your character.”
graph or two on the subject “Why Both themes are varied, of course, as
Insurance Makes My Life More Pleas to exact wordage, but the cost of
ant.” The individual chosen composes such newspaper advertising is halved
the several paragraphs in his or her through this maneuver and a different
own language and receives for the lit merchant may be chosen for each such
erary efforts a crisp and spendable $5 advertisement offered during t h e
remittance. One of these advertise course of the calendar year.
Still another insurance a g e n c y
ments received more than 70 queries
within a forty-eight hour period. If it makes use of a rather interesting asis desired to reduce the cost, only one spect of modern civilization — super
such advertisement may he run from stition and astrology. Each week the

D id you know th ere’s a gap in your Cash Letter
protection that you could “ drive a truck th rou g h ?”
A sk us how to bridge it w ithout costing you a
cent.

FIRST NATIONAL BANK BUILDING

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Federal Reserve Bank of St. Louis

agency presents a horoscope which the
newspaper provides from syndicated
sources. The horoscope presents a
condensed forecast for every day of
the week for those born under various
signs of the Zodiac. Underneath the
horoscope is an observation that
though astrology is recommended only
for the fun it may give those perusing
it, it nevertheless remains a fact that
regardless of the sign the reader
might have been born under, he or
she can insure good fortune or mini
mize misfortune through carrying suf
ficient insurance against all difficulties
which might ensue. Many are inter
ested in astrology simply as a means
of passing the time away, others be
lieve in it implicitly, but in any event
such advertisements are read and read
carefully and thoughtfully.

Helpful Hints
But returning to the more common
forms of newspaper advertising, an
agency in the lone star state of Texas
sponsors a fortnightly newspaper dis
play advertisement, running one quar
ter of a page and titled simply “ Home-

Scarborough & Company

CHICAGO 3, ILLINOIS

Insurance Counselors

IÜ

to Banks

STATE 2 4325
N o r t h w e s t e r n B a n k e r , M a y , 1949

In su ra n ce

making Hints.” Any reader may leave,
, or send to the agency, hints for mak
ing a home more beautiful, gardening,
raising flowers, making the nursery
more livable, thoughts on dens and
cellar or attic lounges; anything per
taining to homemaking in all its
phases.

Six of these “short, helpful hints”
are selected and used in the advertise
ment and the writers receive a 50 cent
award for their contributions. At the
bottom of this advertisement is the re
minder that nervous tension caused by
worry over what might happen to a
home or inhabitants neutralizes the ad

Defalcations do happen in spite
of internal audits, controls and
bank examiners. As specialists in
bank insurance, we understand
your problems. Safeguard your
bank. C all us for the most
comprehensive insurance cover
age obtainable.

B A N K E R ’S
BLANKET
BONDS

iÉMíáMjb

vantages of making a home beautiful
in the extreme. Occasionally readers
are invited to submit short poems of
the Edgar Guest type, all relating to a
happy home and how to make it so.
A companion advertisement which
has been utilized by this same agency
in the past with excellent results has
been the “ It’s a Joke, Son” column
run once every week in one-eighth of
a page space. Readers submit their
favorite jokes and, of course, if they
appeal to the funnybone of the insur
ance agency they are printed. No pay
ment is made for such jokes but the
author or authoress receives the satis
faction of an editorial byline. At the
bottom of the advertisement invari
ably appears a note or two to the effect
that “ ’Taint no joke if your house
burns down and you’re not covered,”
or “ ’Taint in the least funny if you are
knocked flat as a pancake by a hit
’n’run driver.” Most readers think of
an insurance agency as a humorless
concern and the fact that agency exec
utives have a funnybone and can on
occasion use it, hits the public in pleas
ant and reassuring fashion. This in
surance agency feels that too many
potential policy holders are scared
away from insurance because they feel
the agency or a salesman is a sad faced,
somber individual who could pinch hit
for an undertaker and receive change
back.

True Stories
«Uri A f
ifth Street

YOU CAN G E T T H E S E 'E S S E N T IA L

CASUALTY CUVERAGES
------------------------“-------------7

FROM YOUR ALLIED MUTUAL AGENT

,«
What Is an
,* Essential Coverage? ,j
«, It's protection agai ns t ij

Full Coverage Automobile • Workmen's
Compensation •
Manufacturers Public
Liability
•
Contractors Public Liability

ness men, employers and /
property owners which
bankruptcrshouM I fii^y J
return a verdict against
*i you resulting in a heavy V
court judgment.
/
"Allied Mutual Pays"

:»

Elevator Public Liability
•
Farmers
Liability
•
Owners, Landlords, and
Tenants Public Liability • Residence and
Outside Theft
•
Storekeeper's Burglary
.
..
_
,
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,
and Robbery • Comprehensive Personal
Liability

See Your Allied Mutual Ag ent

i ALLI ED M U T U A L

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C A SU A LTY CO M PAN Y
¡>

H A R O L D S. E V A N S . P re sid e n t
H ub bell Building

N o r t h w e s t e r n B a n k e r , M a y . 1949

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Federal Reserve Bank of St. Louis

Des M oines 7, Io w a

Perhaps the most outstanding adver
tisement ever sponsored by an agency
is the “ How Insurance Saved My
Life” series recently presented by an
agency in Canada. Each and every
fortnight any newspaper reader might
present a true to life story relating an
accident or occurrence that happened
to him or her, and how insurance
“saved the day.” The items had to be
actually factual or sound and plausible,
at any rate. A candid camera snap
shot of the writer appeared with the
item which was of the Reader’s Digest
“ Life in These United States” format.
The old saying that truth is stranger
than fiction holds true, at least in the
minds of the readers, and one such
true tale struck home with infinitely
more forcefulness than any amount of
“canned” or stereotyped advertising
presentation.
This same agency occasionally ran
a very short, short column known as
“ These Are Our Children.” Each week
one photo of a boy or a girl with a
brief paragraph on age, hobbies, pets
and other such data was presented.
Readers of the newspaper all were at
liberty to submit photos — whether

insurance
agency clients or no — and fifty-two
beautiful boys and girls were pre
sented pictorially during the course of
each year. The only hint of crass ad
vertising commercialism in this adver
tisement was the gentle reminder
“What value do you place on your
child’s happiness? Insurance will help
you back up your valuation.”
The advertisements reviewed in this
discussion are all of the reader-partici
pation variety, namely, the newspaper
submits much of the copy for the
newspaper ad personally. Such adver
tising is obviously more personalized
and hence more effective than space
devoted to a rehash of policies and
types of insurance coverage available.
Newspaper advertising need not be
large space or expensive; many of the
advertising efforts reviewed in this
article took less than a quarter or an
eighth of a page of space. But, all
advertising in newspapers will prove
rewarding only if the agency uses its
“ little grey cells” in preparing the ma
terial and making it triple threat in
nature, to wit, informative, entertain
ing and readable. Statistics are fine
in their place, but their place is sadly
limited in newspaper display; they are
dull and leave their readers uninspired
and resolved to “ skip that ad” next
time.—The End.

Grin D. Goodwin
Orin D. Goodwin, 51, president of the
Webster Life Insurance Company, Des
Moines, died last month at a local hos
pital. Death was quite sudden, result
ing from a heart attack.
Born at Redfield, Iowa, Mr. Goodwin
was employed in a bank at Grand
Junction, Iowa, after leaving the Uni
versity of Iowa. He had been an offi
cial of Webster Life since 1925, and
president of the company for the past
15 years.

MERCHANTS
MUTUAL

BONDING
COMPANY
Incorporated 1933

Hom e Office
S A V IN G S & L O A N B U ILD IN G

Des Moines, Iowa

W. A. Rutledge
W. A. Rutledge, for fifty-five years
secretary of the Farmers Mutual Hail
Insurance Company, Des Moines, died
there last month at the age of 87.
Mr. Rutledge founded Farmers Mu
tual Hail in 1893, at Early, Iowa, and
the next year the company was moved
to Des Moines. He was one of the
nation’s pioneers in the mutual insur
ance field.
Two brothers were at one time asso
ciated with Mr. Rutledge in the insur
ance firm, and three grandsons are at
present officers of the company, Carl
P. Rutledge, president; Walter S. Rut
ledge, treasurer, and Foster O. Rut
ledge, assistant secretary.

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

E. H. WARNER
Secretary and M anager

W. W. WARNER
A ssistant Secretary

We Salute Our Banker Friends
AC H IE V E M E N T
(Growth in Assets)
J a n u a r y 1921, $9,777

January 1922, $74,273

January 1924, $159,904

January 1928, $256,039

January 1931, $548,711

January 1934, $713,967

J a n u a r y 1 9 3 7 , $ 1 ,0 5 5 ,8 9 6

January 1942, $2,394,410

January 1945, $4,246,784

J a n u a r y 1 9 4 8 , $ 7 ,5 1 7 ,1 6 1

J a n u a r y 1 9 4 9 , $ 8 ,9 1 7 ,0 6 9

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

POLICYHOLDER'S NATIONAL LIFE INSURANCE COMPANY
Home Offices: Fourteenth Street - Main Avenue, Sioux Falls, South Dakota
N o r t h w e s t e r n B a n k e r , May, 19 4 9

S ta te m e n t o f C o n d itio n
A p ril 11,

1949

RESOURCES

Cash and Due from Banks...................................................................... ....$110,957,740.67
U. S. Government Obligations*.............................................. ............... . 110,994,242.70
Other Bonds and Securities*_____ ______ ________ ______________ ___ 19,228,142.31
Loans and Discounts............. .............................. ........... ...................... ...... 109,341,899.64
Stock in Federal Reserve Bank......................... .............. ..........................
450,000.00
Customers’ Liability on Acceptances......... ...........
1,066,515.37
Income Earned but not Collected........... .................................................
782,793.36
Banking House...........................................
3,000,000.00
Other Resources....................................................
103,455.92

Total Resources..................................................................................$355,924,789.97

LIABILITIES

Capital Stock.... ............................................................................................. $ 5,000,000.00
Surplus.................
10,000,000.00
Undivided Profits.................................
2,637,648.02
Reserve for Contingencies.... ........................................ ..............................
3,471,859.05
Reserve for Interest, Taxes, etc................................................................
1,330,009.89
Income Collected but not Earned...........................................................
1,316,651.70
Letters of Credit and Acceptances...............
1,066,515.37
Deposits..........................................................
331,102,105.94
( D e p o s its 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 S6 , 6 6 6 , 5 7 6 . 1 7

)

Total Liabilities—............................................................................... $355,924,789.97
*United States Government and other securities carried at $59,994,241.27 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 tio n a l B a n k o f M in n e a p o lis
Marquette A venue— Sixth to Seventh Streets
M e m b er F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n
A f f il i a te d w ith N orth w est B a n c o r p o r a tio n

y
DIREC TOR S

James F. Bell
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 rogress,

General Mills, Inc.
Benton J. Case
D ir e c to r , Janney, Semple,
Hill & Company
Clarence R. Chaney
V i c e C h a ir m a n o f B oa rd ,
Northwestern National
Bank of Minneapolis
George B. Clifford, Jr.
T r e a s u r e r , The Creamof
Wheat Corporation
John Crosby
D ir e c to r ,

General Mills, Inc.
Thomas L. Daniels
P r e s id en t,
Archer-Daniels-Midland
Company

N or th w es te rn Banker,

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Federal Reserve Bank of St. Louis

M a y , 1949

G. Nelson Dayton
P r e s id en t,
The Dayton Company
Stephen P. Duffy
P r e s id en t,

Our Own Hardware
Company
John B. Faegre
Faegre and Benson,
Attorneys
Frank T. Heffelfinger
C h a irm a n o f B oa rd ,
F. H. Peavey and Co.
F. Peavey Heffelfinger
E x e c u tiv e V ic e P r e s id en t,

F. H. Peavey and Co.
Clarence E. Hill
C h a irm a n o f B oa rd ,
Northwestern National
Bank of Minneapolis

Frank P. Leslie
V ic e P r e s id en t a n d
T rea s u r e r ,

The John Leslie Paper Co.
Robert F. Pack
C h a ir m a n o f B oa rd ,
Northern States Power
Company
John S. Pillsbury
C h a irm a n o f B oa rd ,
Pillsbury Mills, Inc.
Joseph F. Ringland
P r e s id e n t, Northwestern
National Bank of
Minneapolis
Lucian S. Strong
P r e s id en t a n d T rea s u r e r ,
The Strong Scott
Manufacturing Co.

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

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

Searle Grain Company

J. Cameron Thomson
P r e s id en t,
Northwest Bancorporation
Valentine Wurtele
P r e s id en t,

Minnesota Paints, Inc.

Minnesota

NEWS
M. O. GRANGAARD
President
Minneapolis

Vacation in Europe
Bert J. Plehol, manager of the insur
ance department of the Austin State
Bank of Austin, Minnesota, has left
for a month’s vacation in Europe and
the Scandinavian countries. His wife
accompanied him on the trip.
Before sailing on the Queen Mary on
May 5th, Mr. Plehol visited the home
offices of the North British Insurance
Company in New York and the Em
ployers Insurance Group in Boston.
The couple plans to return to this
country by air.

President of Tower Bank
Jesse Swanson, was named presi
dent of the State Bank of Tower, Min
nesota, at a recent meeting of the
directors of the bank. He filled the
vacancy created by the death of John
Tregear.

Move Into New Bank
Doors of the new home of the First
National Bank of Rochester, Minne
sota, were opened to the public for
the first time early last month.
Ellerbe and Company was the archi
tect for the new four-story building,
which was erected by the Mayo Asso
ciation, and the general construction
was by Stocke and Olson Company.
General supervision of the bank’s
phase of the project was in the hands
of E. A. Tyler, manager of the build
ing department of First Service Corpo
ration, operations subsidiary of First
Bank Stock Corporation, with which
the First National of Rochester is affili
ated.
Founded in 1864, the First National
Bank of Rochester now has deposits
of over $13,000,000, as compared with
only $17,768 as of one month following
its organization.
It is the third oldest chartered bank
in Minnesota and the oldest continuing
business establishment in Rochester,
and is the outgrowth of a mercantile
establishment operated in the late 50’s
and early 60’s by John Ramsey Cook,
the bank’s first president.
M. M. Hayden has served as presi
dent of the bank since 1936. Other offi
cers are L. J. Fiegel and R. A. Bezoir,
vice presidents; E. C. Cegal, cashier,

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Federal Reserve Bank of St. Louis

ROBERT E. PyE
Secretary
Minneapolis

and K. W. Hagaman, C. T. Frank and
Roy Reifsnider, assistant cashiers.

Remodel Bank Front
The First National Bank of Breckenridge, Minnesota, has remodeled the
front of the bank building. Three up
per windows of new glass block give
a distinct modernistic design to the
building and the lower windows are
large enough to give the bank a cheerfull, light lobby. There is no change
in the bank’s personnel.

Winona National
Observes 75th Anniversary
The Winona National and Savings
Bank of Winona, Minnesota, is cele
brating its 75th anniversary this year,
having been founded in 1874. When
the bank was organized it was known
as the Winona Savings Bank.
Growing steadily since its origin, the
Winona Savings Bank has been forced
to seek larger quarters twice in the
last half century, once in 1903 when
it moved into the building now occu
pied by the Western Union Telegraph
Company, and again in 1916 into the
present quarters.
E. L. King, president of the bank,
was elected a trustee of the Winona
Savings Bank in 1904 and later presi
dent, succeeding E. L. Choate. He
was elected president of the Winona
National Bank in 1916 and has served
as president of The Winona National
and Savings Bank since the consolida
tion in 1928.
Other officers are: E. L. King, Jr.,
vice president: S. J. Kryzsko, executive
vice president and trust officer; John
Ambrosen, cashier; W. P. Theuer, as
sistant cashier and assistant trust offi
cer, and E. W. Miller and W. M.
Lambert, assistant cashiers.

Wheaton, and Adam, of Sacred Heart,
had become majority stockholders.
A. G. Siewert, a brother, was elected
president at a subsequent meeting of
directors.

New Officer at Willmar
Election of A. M. Grabow of Havre,
Montana, as executive vice president
of the First Security National Bank of
Willmar, Minnesota, and as a member
of the bank’s board of directors, has
been announced by O. F. Grangaard,
president.
Mr. Grabow, for the past two years
vice president of the Montana National
Bank at Havre, arrived in Willmar
last month to assume his new position
as executive officer of the bank.
Further announcement was made by
Mr. Grangaard that George W. Odell,
vice president, has resigned from that
position and as a director to enter pri
vate business. A native of Willmar,
he had been associated with the bank
as an officer since its founding in 1929.

Veterans on Bank Staff
Eight veterans of World War I and
World War II are on the staff of the
Kanabec State Bank of Mora, Minne
sota.
They are: Frank P. Powers, presi
dent; Kleo Mcllhargey, vice president;
Frank Grahn, cashier; Robert Nikodym, assistant cashier; Walter John
son, insurance manager; Clifford Mork
and James Peterson, tellers, and Shir
ley Meyer, bookkeeper.

New Bank at Badger
Residents of Badger, Minnesota, can
now avail themselves of modern bank
ing facilities through the newly opened
Badger State Bank.
Officers and directors of the new
bank include the following: N. O.
Folland, president; I. S. Folland, vice
president; N. B. Gustafson, cashier;
Jacob Trangsrud, Roy Larson, John
Sjoberg and B. J. Borgen.

Ownership Change

A. W. Hoese of Glencoe and William
H. Grill of New Germany have dis
posed of their interests in the First
State Bank of Stewart, Minnesota, to
Lester Lipke, John C. Lipke and Oliver
F. Leistico.
In the reorganization of the institu
tion the officers are: Lester Lipke,
president; John C. Lipke, vice presi
H. Alex Siewert
H.
Alex Siewert, president of the dent, and Oliver F. Leistico, cashier.
First National Bank of Little Falls,
Minnesota, died recently of a heart
Buys Controlling Stock
attack in his office.
At a recent meeting of the board of
Alex Siewert, who was 53, came to directors of First State Bank of Grove
Little Falls from Olivia in February, City, Minnesota, President Louis John
1941, taking over the bank presidency son purchased the controlling stock of
after he and his brothers, Fred, of the bank.
N o r t h w e s t e r n B a n k e r , M a y , 1949

T w in C ity N e w s

INNEAPOLIS bankers played organizations to receive newly-created
leading roles in the campaign to “ Minneapolis awards” from the Minne
raise $184,000 for the Minneapolis
apolis Chamber of Commerce. Recip
Symphony Orchestra.
ients were the Minneapolis Symphony
Wendell T. Burns, a vice president Orchestra, the Minneapolis Aquatenof the Northwestern National Bank of nial (summer civic celebration) and
Minneapolis, was chairman of the Min Warner Bros. Pictures, Inc.
neapolis phase of the drive. Ben S.
Woodworth, assistant cashier of the
The First National Bank of Minne
First National Bank of Minneapolis, apolis was successful bidder at Breckserved as a vice chairman. Among enridge, Minnesota, on $175,000 worth
advisers were Joseph F. Ringland, of bonds sold to build an addition to
president of Northwestern National, the school there.
and Henry Atwood, president of First
National.
Mrs. William R. Murray, mother of
Gordon Murray, a vice president of
The Minnesota Bankers Association the First National Bank of Minneap
will hold its 59th annual convention olis, died recently in Minneapolis after
at Hotel Saint Paul a long illness. She was 75. Services
in St. Paul, June and burial were in Minneapolis.
8th and 9th, ac
cording to a recent
The Northwestern National Bank of
announcement by Minneapolis is utilizing its business
M. O. Grangaard of envelopes to publicize Minnesota’s
Minneapolis, presi Territorial Centennial celebration.
dent of the associa
The reverse side of the envelope
tion.
bears reproductions of the first North
E. M. Volkenant western Bank Building as it appeared
of St. Paul h a s in 1872 when located at Marquette and
been named gener Washington Avenues, and of the pres
E. M. VOLKENANT al chairman. Serv ent structure, located on Marquette
General Chairman,
ing as chairmen of Avenue between Sixth and Seventh
Minnesota
Convention
arrangements com Streets.
mittees will be Lloyd L. Leider, Mer
lin A. Ahlberg, Jennie Williams and
Ashton Carhart, a vice president of
Allyn W. Brown, all of St. Paul.
the First National Bank of Minneap
olis, has been named to the executive
Henry Atwood, president of the committee of the Minneapolis Cham
First National Bank of Minneapolis, ber of Commerce by Edward J.
served as a judge in selection of three Grimes, president of the Chamber.

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 ASSOCIATION
2 5 5 0 Pillsbury Ave. So.

N o r t h w e s t e r n B a n k e r , M a y , 1949

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

Minneapolis 4 , Minnesota

Mr. Carhart is treasurer of the organi
zation.
Edward C. Brown and N. P. De
lander have been named senior vice

presidents, newly-created positions of
the First National Bank of St. Paul.
In addition, Philip H. Nason was
elected to the newly-established posi
tion of assistant to the president.
Mr. Nason was born in St. Paul and
is a graduate of Carleton College and
attended the Harvard Graduate School
of Business. He started his banking

PHILIP H. NASON
Named assistant to the president
First National of St. Paul

career in 1936 with the First National
Bank of Minneapolis. In 1938 he
transferred to the investment research
department of the First Bank Stock
Group located in St. Paul.
In 1940 he transferred again to the
First National Bank of Minneapolis,
where he was successively manager
of the bank’s credit department, assist
ant cashier, and since 1947 assistant
vice president..
Members of the Minneapolis Mort
gage Bankers Association recently
presented Paul Bauer, resigning presi(Turn to page 52, please)

-V

HERE ARE A FEW of the 1,100 bankers attending the
Ninth Federal Reserve Bank Conference in Minneapolis last
month as seen through the N orthwestern B anker camera lenses:
1. E. O. Lerberg, cashier, Peoples State Bank, Parshall, North
Dakota; C. O. Thompson, cashier, First Security Bank, Under
wood, North Dakota; H. M. Wey.dahl, president, Union Bank
of Halliday and Bank of Killdeer, North Dakota; Hans Fischer,
cashier, Farmers Security Bank, Washburn, North Dakota, and
H. E. Wildfang, cashier, State Bank of Burleigh County, Ster
ling, North Dakota.
2. The Honorable John W. Snyder, Secretary of the Treasury,
Washington, D. C., and Lt. Commander J. M. Schrader, U. S. N.,
military aide to the Secretary.
3. Officers o f the Federal Reserve Bank of Minneapolis who
were in charge o f the meeting— M. H. Strothman, Jr., assistant
counsel and general chairman of the affair; John N. Peyton,
president; Oliver S. Powell, first vice president and chairman

of the program committee, and Otis R. Preston, vice president
in charge of public services.
1. Earl Harrington, president, First National Bank, Plainview, Minnesota; Fay Case, president, Security State Bank,
Cannon Falls, Minnesota; Art Funk, cashier, Security State
Bank, Hammond, Minnesota, and John Ambrosen, cashier, W i
nona National and Savings Bank, Winona, Minnesota.
5. Lyman Mann, cashier, Clark County National Bank, Clark,
South Dakota; Walter H. Burke, president, Pierre National
Bank, Pierre, and A. B. Cahalan, First National Bank, Miller,
South Dakota.

6. A. E. Dahl, president, Rapid City National Bank, Rapid
City, South Dakota; Clyde E. Thomas, vice president, Peoples
State Bank, Mazeppa, Minnesota; Frank Olson, president, Bank
of Toronto, South Dakota; Carroll H. Lockhart, president, First
Citizens National Bank, Watertown, South Dakota, and Wallace
L. Boss, vice president, First National Bank, St. Paul.

R ecord Crowd A tten d s Ninth
t'e d e m i R eserve Con fere nee
ORE than 1,100 bankers in the
Ninth Federal Reserve District
gathered in Minneapolis last
month to attend the nine annual con
ference of the Federal Reserve Bank
of Minneapolis. It was the largest
meeting to date and was outstanding
in regard to the excellent program of
experienced speakers and the clock
like precision with which the day’s
events were run off.
Secretary of the Treasury John W.
Snyder declared he is entirely confi
dent in continued prosperity through
1949 because the annual income paid
to individuals for the current year is
217 billions of dollars compared to 213

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Federal Reserve Bank of St. Louis

billions of dollars for the previous
year. In addition, he said, there are
200 billions in liquid assets in the peo
ple’s pockets.

Basis for Confidence
Secretary Snyder said these savings
and income totals plus the following
three factors are his basis for confi
dence for good business in 1949:
1. No speculative inventory po
sition to liquidate.
2. No speculative commodities
to liquidate.
3. No speculative stock market
position to liquidate.

Further foundation for his feeling
of confidence stemmed from a recent

trip through a number of states where
he found business picking up over the
past few months, especially in Detroit
where auto makers are more optimis
tic.
Referring to recent attention to un
employment figures, Secretary Snyder
said he believes these are overempha
sized because employment in 1949 is
higher than 1948, buying power is still
sustained and since last year was a
good year he was sure this one would
be just as good. More people are be
coming eligible for work with so many
former servicemen completing their
education now, plus the fact that the
labor force is swelled because of a
N o r t h w e s t e r n B a n k e r , M a y , 1949

Minnesota News

17,000,000 increase in population.
There are more people to become un
employed, he said, consequently un
employment figures for today can’t be
reasonably compared to those of other
years when there were fewer working
people.

Reviews ERP
In his formal address before the as
sembly, Secretary Snyder reviewed
the operations of the European Re
covery Program and cited the financial
gains and social advancements by
those countries assisted by U. S. help.
In referring to the President’s budg
et for the fiscal year 1949-50, Secretary
Snyder said 35 billions go for defense,
aid programs, veterans assistance,

federal securities assistance programs
and interest on the national debt. To
date, he said, none of these figures
have been cut by the Congress, rather
some of them have been increased in
preliminary discussions. This 35 bil
lions constitutes 83 per cent of the
budget, which leaves 17 cents out of
every tax dollar to finance the com
plete operations of the entire federal
governmental system throughout the
country. He said he didn’t know how
those who were calling for a 20 per
cent reduction in the budget could ac
complish this out of the remaining 17
per cent after the aforementioned
figures were practically assured of go
ing through.

How
NORTHERN
TRUST
SERVES YOU
M

THE TRUST DEPARTMENT

Provides safekeeping for securities.
Receives and delivers securities.
Collects income and principal o f bonds and
other securities, as paid.
Is available for consultation on questions
relating to personal trusts.
Offers assistance in the development or re
vision o f pension or profit-sharing plans.
Serves as co-paying and exchange agent, co
transfer agent, co-registrar and co-depositary.
As your Chicago correspondent we make available to
you all o f our hanking, trust, bond and operational
facilities plus many other personal services.

THE NORTHERN
TRUST COMPANY
50
N or th w es te rn Banker,

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Federal Reserve Bank of St. Louis

SOUTH

M a y , 19 4 9

SALLE

STREET,

CHICAGO

Asks Balanced Budget
President Peyton, who presided
over the meeting, demanded a balanc
ing of the budget by the federal gov
ernment. He said if continued large
sums were voted to the “sincere and
honest group who believe idealistical
ly in extending all help to their fellow
men . . . to those who would spend
any amount of money on defense,
without a thorough analysis of the
needs . . . and the pressure groups
who know exactly what they want,”
then we must face a deficit in the na
tional budget.
(Secretary Snyder told a press con
ference earlier there is at present a
$900,000,000 deficit in the submitted
1949-50 budget and if military aid to
Atlantic Pact countries is voted, the
deficit probably would be as high as
2.3 billions.)
J. Marvin Peterson, director of re
search of the Minneapolis Federal Re
serve, said, “The present situation
calls for two actions, namely, a reduc
tion in prices and a cut in costs
through an increase in productivity.
This must be done before a great de
cline in employment and personal in
comes develops. Tardiness in the
reduction of prices reduces the effec
tiveness of price cuts. Tardiness in
achieving greater efficiency makes the
achievement of greater efficiency pro
gressively more difficult. Greater pro
ductivity and a higher real income
should be the objective of public
policy.”

Other Talks
Emerson P. Schmidt, director of the
U. S. Chamber of Commerce’s eco
nomic research department, discussed
“ Socialism—the American Pattern” ;
Franklin L. Parsons, associate direc
tor of research at the Federal Reserve
talked on “Parity” ; John Ford, WCTN
news commentator, was quiz master
on the “Quizzing the ‘Fed’ ” panel,
and George Grim, Minneapolis Trib
une columnist, had as his topic, “ I
Flew to Berlin.”
A reception and dinner was held in
the evening after which bankers, their
wives and guests were taken by char
tered busses to the Minneapolis Arena
to see the “ Ice Follies of 1949.”—The
End.

Resigns From Bank
J. W. Sands, who has been con
nected with the State Bank of War
ren, Minnesota, the past three and onehalf years, has tendered his resigna
tion as vice president and director.
Mr. Sands has accepted a position with
the Agricultural Supply Company of
Grand Forks in the Quonset Sales Divi
sion.

M IN N E A P O L IS I N 1857
. . . year o f the founding o f the private banking
firm o f Sidle, Wolford and Company, forerunner
o f First National Bank o f Minneapolis.

First National Bank of Minneapolis
D IR E C T O R S

Statement o f Condition

H e n r y E . A t w o o d , President

as at April 11, 1949

A th e r to n B ea n ,

Executive Vice President,
International Milling Co.

RESOURCES

R u ssell H . B e n n e tt,

. $ 97,945,051.61

Cash and Due from Banks
United States Government Securities .

113,717,972.94
20,232,438.50

Other Bonds and Securities .
Loans and Discounts

100,734,954.46

Accrued Interest and Accounts Receivable

879,516.17

Customers’ Acceptance Liability .

468,077.21

Bank Premises and Furniture and Fixtures

196,695.04

Other Real Estate (For Future
Development of Banking Premises) .
Federal Funds Sold
Other Assets .
.
Total Resources .

J o h n C o w le s , President,

Minneapolis Star and Tribune Co.
D o n a ld D . D a v is , President,

Minnesota and Ontario Paper Co.
B ru ce B . D a y t o n ,

Secretary and Treasurer,
The Dayton Co.
P au l V . E a m e s , President,

Shevlin-McCloud Lumber Co.
H a r r y J . H a r w ic k , Chairman,

500,000.00

.
.

3,400,000.00
415,839.02

. $338,490,544.95

Treasurer, Meriden Iron Co.
D a n ie l F . B u ll, President,
7 he Cream of Wheat Corp.

M ayo Association, Rochester, Minn.
J o h n H . H a u s c h ild , Chairman of

the Board, Chas. W . Sexton Co.
W . L . H u ff , Executive Vice President,

Minneapolis-Honeywell Regulator Co.
C . T . J a ffr a y , Director,

First Bank Stock Corporation
J o h n H . M a c M i l l a n , J r ., President,

Cargill, Inc.

L IA B IL IT IE S

S u m n e r T . M c K n i g h t , President,

Capital Stock .

Surplus

6,000,000.00
11,000,000.00

Undivided Profits
General Reserve for Contingencies
Reserve for Interest, Expenses, Taxes, etc.

3,830,846.55
2,109,217.33
3,287,791.09

S. G . P a lm e r, Retired

468,077.21
691,844.47

Other L i a b i l i t i e s .................................
$257,432,320.38
Demand Deposits .
Total Liabilities .

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Federal Reserve Bank of St. Louis

53,670,447.92

Osborne-McMillan Elevator Co.
W . G . N o r t h u p , President,

Acceptances and Letters of Credit

Time Deposits .

S. T . McKnight Co.
H o w a r d I . M c M i l l a n , President,

North Star Woolen M ill Co.
L eslie N . P errin , President,

General M ills, Inc.
A . F . P illsb u ry , Director,

Pillsbury M ills, Inc.
F . B. W e lls , President,

F. H . Peavey & Co.
A lfr e d E . W ils o n , Vice President and

311,102,768.30
. $338,490,544.95

Chairman o f Trust Committee
C . J . W i n t o n , J r ., President,

Winton Lumber Co.
S h e ld o n V . W o o d , President and

United States Government obligations and other securities carried at
$ 6 0 ,1 8 1 ,9 0 0 .0 0 in the foregoing statement are deposited to secure

E d g a r F . Z e lle , President,

Jefferson Transportation Co.

public funds and for other purposes required by law.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

General Manager, Minneapolis
Electric Steel Castings Co.

•

AFFILIATED WITH FIRST BANK STOCK CORPORATION

N o r th w es t e r n Banker, May ,

1949

Minnesota

News

TWIN CITY NEWS
(Continued from page 48)
dent, with a pen and pencil set, in rec
ognition of his services. Mr. Bauer,
vice president of the Towle Company,
left Minneapolis to enter business in
Huntington, West Virginia.
Directors of Investors Stock Fund,
Inc., declared a dividend of 15 cents a
share for the second quarter of the
current fiscal year, according to a re
cent announcement by E. E. Crabb,
president and chairman of the board.
The current distribution, derived ex

clusively from net interest and divi
dend income, is payable May 21st to
shareholders of record April 30th. To
tal assets for Investors Stock Fund,
Inc., were $10,164,092.
The Federal Reserve Bank of Min
neapolis was host recently to college
and university instructors for a oneday conference on money and bank
ing. J. N. Peyton is president of the
bank.
Most banks in the Minneapolis and
St. Paul metropolitan area have gone

'Timely... Helpful...”
Our Correspondents Say of These Services
Out o f long and intimate experience with the problems
of both large and small banks —and from its unique
range of experience in the field of safe investment—
this Bank has developed several special services of
fundamental importance in bank operation.
Many of our correspondent banks tell us that these
services and our counsel have proved of material value
to them.
We should like to have more banks take advantage of
these services. We cordially invite you to check this
list and let us know how we may help you.
□
□
□
□
□
[J
□
□
□

Cost and operating surveys for banks
Government portfolio counsel
Government security transactions
Municipal and corporation bond counsel
City and country collections
Credit information and counsel
Safekeeping of securities
Excess loans
Complete foreign services

Harris Trust and Savings Bank
O r g a n iz e d as

W . H a r r is & C o .

1882

• In c o rp o ra te d

115 West M on roe Street, C h ica g o 90
M em ber 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 , 1949

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Federal Reserve Bank of St. Louis

1907

on a five-day week and are closed Sat
urdays. Hours of service have been
adjusted during other days of he
week to meet customers’ require
ments. The plan has been adopted by
all savings and loan associations.
The Saturday closings were legal
ized by recent action of the Minnesota
legislature, authorizing banks and sav
ings and loan associations in Minne
sota cities of the first class and their
suburbs to operate on a five-day week.
The five-day week in financial insti
tutions now is sanctioned by law in
23 states, and wherever it has been
tried, it has worked to the satisfaction
of both customers and employes, ac
cording to a joint statement by the
banks and savings and loan associa
tions.
Minneapolis financial institutions
adopting the five-day week announced
extended hours of service to the pub
lic on certain other days. Only two
in the city decided against closing on
Saturdays.
Driving an automobile in P e r u
would be considerably cheaper than in
the United States, according to Clar
ence E. Hill, chairman of the board of
directors of the Northwestern Nation
al Bank of Minneapolis, who recently
completed a 30-day trip through Peru,
Chile, Argentina, Uruguay and Brazil.
Mr. Hill said one can get gasoline
in the South American country for
six cents a gallon. He found a per
sistent tendency toward price infla
tion, which was accentuated during
the war and has continued in the post
war period. Outside of Peru, living
conditions are as high, or higher, than
in the United States, especially in
Argentina and Brazil, Mr. Hill re
ported. Most of the countries having
difficulty holding imports within lim
its of foreign exchange are seeking
American dollars.
The Minneapolis banker was ac
companied by his wife. They traveled
14,438 miles by air.
Three Minneapolis bankers were
nominated for directorships in the
Minneapolis Civic Council. They are
Henry T. Rutledge, assistant vice pres
ident of the Northwestern National
Bank of Minneapolis; Arnulf Ueland,
president of the Midland National
Bank of Minneapolis, and Lyman
Wakefield, Jr., assistant cashier of the
First National Bank of Minneapolis.
Judith Weiss, assistant economist
of the Federal Reserve Bank of Min
neapolis, spoke recently at a confer
ence of the lake and midwest divisions
of the Association of Bank Women in
Milwaukee, Wisconsin. Her subject

IOWA-NEBRASKA
BANK DIRECTORY
P u b l i s h e d b i/
No r t h w e s t e r n B a n k e r
D E S M O IN E S

COMPLETE INFORMATION

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ON A L L B A N K S IN

IOWA and N EB R A S K A

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D EPENDABLE
POCKET S I Z E

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Federal Reserve Bank of St. Louis

1949 EDITION
of "lowa-Nebraska Bank Directory

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lowa-Nebraska Bank Directory
527 Seventh Street
Des Moines, Iowa

----------------------------------------- , 1949

Gentlemen:
Please send__________copies of your 1949 lowa-Nebraska Bank
Directory to us, and we will remit at the rate of $3 per copy
upon receipt of your Directory.
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N o r t h w e s t e r n B a n k e r , M a y , 1949

Minnesota

News

was “Research—Its Role in the Drama
of Banking.”
Julian Baird, president of the First
National Bank of St. Paul, and J. Cam
eron Thomson, president of the North

west Bancorporation, presided at two
recent lectures at the University of
Minnesota. The talks were part of a
series on money.
Deposits in the 14 national and 10
state banks and one savings bank in
Minneapolis and suburbs total $1,006,982,496, according to figures released
recently in response to a joint na
tional and state bank call. This was

a decline of $48,105,134 from Decem
ber 31, 1948, but was $15,270,273 more
than on deposit a year ago.
The Farmers & Mechanics Savings
Bank of Minneapolis reported its de
posits had gained $2,415,332 since Jan
uary 1st to reach a total of $153,187,400
for an all-time high. Northwestern
National topped the national banks
.with deposits of $331,102,106. First
National was second with $311,102,768.
Fidelity topped the state banks with
$8,738,289.
Anna M. Condon retired from the
employ of the First National Bank of
Minneapolis recently, after completing

at the

YARDS

For All Your Items
Through its location— in the heart of
the stock yards— and its experience
— (54 years)— this bank is especially
skilled in handling your livestock,
grain and hay items in Sioux City.

W I L L I A M C. S C H E N K
A sst. V . Pres, and Cashier
J O H N S. H A V E R
A sst. Cashier

Our facilities are also available for
handling all your Sioux City busi
ness. Your complete business is
welcome here at the Live Stock
National Bank in Sioux City.

J A M E S L. S M IT H
A sst. Cashier and A uditor
K I N L E Y W . S M IT H
A sst. Cashier
STAN LEY W . EVANS
A sst. Cashier

L iv e S t o

S IO U X C IT Y

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

; ;
N o rthw estern B a n k e r , M a y , 1949

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Federal Reserve Bank of St. Louis

Charles A. Cells of the First Na
tional Bank of Minneapolis has been
elected to the board of directors of
the North East neighborhood house of
Minneapolis.

Minneapolis bowlers defeated St.
Paul 6 to 3 in the annual competition
between the First National Bank
groups of the two cities. The series,
which began in 1940, now stands 50
victories for Minneapolis and 40 for
St. Paul. Milton Andresen was high
for the winners with 546.
Business in the Ninth federal re
serve district during the first quarter
of 1949 was 5 per cent under the 1948
volume for the same period, according
to the bank debits report of the Fed
eral Reserve Bank of Minneapolis.
Debits for the first three months in
the district this year totaled $7,749,491,000, compared with $8,134,606,000
for the first three months of 1948.
For Minnesota as a whole, debits
were down 6 per cent. North Dakota
showed a gain of 3 per cent and Mon
tana 4 per cent. Minneapolis had a
decline of 9 per cent and St. Paul 6
per cent.
Twenty-four staff members have
been cited by the First National Bank
of Minneapolis on completion of 23
years of service. They are Albert J.
Berglund, Dorothy Reilly, Lorimer F.
Princell, Josiah H. Whittier, Catherine
H. Ryan, Sadie S. Sather, Stanley J.
Dietz, William V. Hickey, Elwood R.
Anderson, Elna C. Englund, John
Jeffreys, Maria M. Schultz, Bessie M.
Pierson, Chester B. Melrose, Grace M.
Hughes, Carroll N. Anderson, Edith L.
Williams, J. C. Andrews, Albert C.
Hansen, Dorothy P. Byrnes and C. H.
Peterson.

-V

Lawrence Doherty of the First Na
tional Bank of Minneapolis was
named to represent Minneapolis in the
district speaking contest of the Amer
ican Institute of Banking at Winona,
Minnesota. Mr. Doherty won the Min
neapolis qualifying contest held at the
Federal Reserve Bank of Minneapolis.

N a tio n a l B ank
4

26 years of service. Miss Condon
came to Minneapolis in 1922. Until
1925 she was associated with the Wells
Dickey Trust Company. In that year,
following the merger of Wells Dickey
and the First Minneapolis Trust Com
pany, she moved to the First Minne
apolis Trust Company.

y.:-,-

Miss Dorothy Groth, a secretary at
the First National Bank of St. Paul,
won first place in the St. Paul Chapter
(Turn to page 56, please)

South Dakota

NEWS
J. M, LLOYD
President
Yankton

Clearinghouse Officers
Members of the Whetstone Valley
Clearing House Association, composed
of all the banks in Grant and Roberts
counties, met at Summit, South Da
kota, for their annual spring meeting
as guests of the Peoples State Bank
of Summit. After dinner, the members
congregated in the American Legion
Hall for the business and social meet
ing.
As a part of the program, three
sound color films were shown through
the courtesy of Messrs. Wulff and Rice
of the Roberts county conservation
unit. These depicted the various types
of grasses for hay, hay handling ma
chinery, weed and pest control spray
ing programs and other conservation
measures. All were enjoyed by the 26
attendants.
After the routine business the an
nual election followed, resulting in the
election of F. F. Phillippi of Milbank
as president; Paul Trapp Jr., of Big
Stone City as vice president, and L. F.
Waddington of Rosholt as secretarytreasurer. The fall meeting will be
held at Stockholm.

Two-Day Short Course
South Dakota bankers became stu
dents of agriculture for a two-day
short course at South Dakota State
College in Brookings last month.
The school, including inspection of
various farming practices, was spon
sored by the agriculture committee of
the South Dakota Bankers Association.
The program included a Farm Man
agement Session, Soil Conservation
Session. Livestock Session, Stock Judg
ing Contest, talks on “ What’s Ahead
for Agriculture,” and tours of various
farm projects.
Association President J. M. Lloyd,
Yankton, said the objective of the
school “is a sincere effort to work in
closer cooperation with the farmers of
the state.”
Tours taken by the bankers will in
clude inspection of beef and hog feed
ing experiments and tree planting.

Returns to Deâdwood
LaVerne Mitchell of Rapid City,
South Dakota, has assumed his duties
as assistant cashier in the Deadwood

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Federal Reserve Bank of St. Louis

CARL E. BAHMEIER, JR.
Secretary
Huron

office of the First National Bank of
the Black Hills, after an absence of
seven years, it was announced by C.
O. Gorder, manager.
Mr. Mitchell entered the employ of
the bank in the Deadwood office in
1930, where he remained until March,
1942, when he joined the armed forces
in the Division of Finance. After
serving three years, part of which
were spent overseas, he was dis
charged and returned to accept new
duties in the Rapid City offices of the
bank.

Thirty persons attended a dinner
celebrating the fourth anniversary of
the Sioux Valley Bank’s organization.
There was an informal evening of
entertainment for the directors, their
wives and employes.
Ludwig H. Hagen, associated with
the trust department of the Northwest
Security National Bank for about four
years, has been elected assistant cash
ier, President Ralph M. Watson an
nounced.
Stanley Morrill, agricultural agent
of the National Bank of South Dakota,
predicted that farm production costs
would not be lowered in the next five
years, but warned that “total farm in
come will suffer a considerable drop in
the same period.” His statement was
made at the recent meeting of the
South Dakota Bankers Association in
Brookings.

Sioux Falls business rallied in March
to make its best showing so far in
1949. Bank clearings topped the cor
responding month of a year ago for
S io u x F a lls N e w s
NNUAL meeting of the Sioux Falls the first time in three months, record
Clearing House Association re ing an increase of $300,414.93 over
March, 1948. Bank clearings in March,
sulted in election of the following offi
1948, were $24,323,057.86. In March of
cers: Ralph M. Watson, president of
Northwest Security National Bank, this year they were $24,623,472.79.
president; Tom S. Harkison, president
of National Bank of South Dakota,
C. A. Christopherson, chairman of
vice president, and W. E. Perrenoud, the board of the Union Savings Bank,
cashier of First National Bank & Trust attacked the North Atlantic military
Company, secretary and manager.
pact in an address before the Thomas
Paine Society. “When the history of
T. N. Hayter, vice president of the American diplomacy is written,” he de
First National Bank & Trust Company, clared, “our record will be one of seri
is chairman of the local Rotary Club’s ous blunders. Our officials who han
on-to-New York committee, publicizing dle foreign negotiations are not diplo
the International Rotary Convention mats, but militarists who have insisted
upon Russia yielding to everything
in June.
first.”
XV. E. Perrenoud, cashier of the First
National Bank and Trust Company,
Private committal rites were held at
received the following notice in the Woodlawn Cemetery for Second Lt.
Twenty Years Ago column of The Tom S. Harkison, Jr., whose body was
Daily Argus-Leader: “William E. Per
returned here from France for serv
renoud, who was for 11 years with
ices and reburial. His father, Tom S.
the Minnehaha National Bank as as Harkison, is president of the National
sistant cashier and teller, has resigned
Bank of South Dakota. First reported
his position in the bank to join the as missing, Lieutenant Harkison was
Burroughs Adding Machine offices in later reported as killed in action De
Sioux Falls. He will be in the sales cember 2, 1944, in France. He was a
department of the company.”
P-47 pilot with a fighter group of the

Mr. Perrenoud recently was installed
as treasurer of Sioux Falls Elks Lodge
No. 262. John P. McQuillen, vice pres
ident and trust officer of the Northwest
Security National Bank, was installed
as esteemed loyal knight.
Erling Haugo, president of the Sioux
Valley Bank, won first place when the
Sodak Toastmaster’s Club held its final
speech contest at the Y.M.C.A.

9th Army Air Forces.
and a sister survive.

His parents

Tellers at the Northwest Security
National Bank were surprised when a
truck backed up to the front door and
a big bottle of pennies was hauled into
the bank. The pennies were accumu
lated by Lem Totman, local tavern
operator. He started tossing pennies
into an over-sized whisky display botN o r t h w e s t e r n B a n k e r , M a y , 1949

56
A d v ertis em en t

South Dakota
" Itoli o/' H o n o r " Dunks

It is an honor to be listed among the HONOR ROLL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital
i

The banks listed on this page are some of the outstanding “Honor Roll ” Banks in South
Dakota.

B y careful management and sound banking they have achieved this enviable

position.

These banks will be especially glad to handle any collections, special credit

reports or other business in their communities which you may entrust to them.

Corre

spondence is invited.

TOWN
A berdeen........
Carthage........
Castlew ood....
Estelline_____
G arretson.......
H urley............
Lake Preston
Lem m on..........
M arion............
Oldham...........
Pierpon t.........
P ierre..............
P ierre..............
Rapid C ity....
Sioux Falls....
Stickney.........

Tu rton..........

W atertow n ....

BANK
.First National Bank.....................................
. Farmers State Bank....................................
Citizens State Bank............ .....................
Farmers State Bank.....................................
First National Bank in Garretson...........
Hurley State Bank....................
.Community State Bank..............................
First National Bank..................... .........
.Farmers State Bank.....................................
Oldham State Bank..................................
First State Bank................ ..........................
First National Bank...................................
Pierre National Bank..............
First National Bank of the Black Hills
Sioux Valley Bank.............. ....... .................
Farmers State Bank............. ...................
Farmers State Bank............ ...................
Farmers & Merchants Bank..............

tie two years ago. When the mam
moth containers began to get full of
the copper coins, people began guess
ing the number of pennies needed to
fill it.
■When Mr. Totman decided to take
his coins to the bank, he found he
couldn’t budge the bottle. He had to
call on a trucking firm for help. The
job of counting the money fell to Tell
ers Orson N. Geegh and Leo A. Olson.
They counted 12,954 pennies. The
closest guess, by the way, was 12,929,
only 25 off. Mr. Totman said he would
buy savings bonds for his children
with the $129.54.

C A P IT A L
O FFICE R
Chester Lind ..................... .........$ 350.000
........
25.000
D. P. A m sb erry..................
25.000
0 . N. H alvorson................ ............
25.000
W alter K. Johnson............
45,000
T. E. W angsn ess................
25 000
E. G. B reen.........................
25.000
Harmon Kopperud .......... ...........
50.000
A. 0 . R olien.........................
25.000
J. J. Smith. .......................
25.000
C. J. B oyd...........................
25.000
J. A. A nderson.................. .........
..........
50.000
L. L. Branch............
50,000
W alter H. Burke........... .
500.000
Noel W. K lar.....................
50.000
Erling H augo .................. ............
........
25,000
E. G. B orm ann..................
25.000
F. H. Troske....................... ...........
100.000
M. J. D range....................... ............

daughter of A. A. Endres, executive
vice president of the Security Bank
and Trust Company of Owatonna.

SU RPLU S
PR O FITS
$ 866,000
37,000
61,800
28,000
55,000
34,000

120.000
107,000
64,000
50,000
51,000
64,000

88,000
1,005,000
64,000
39,225
41,000
183,837

committee, American Bankers Associa
tion Convention, 1943; chairman, Bank
Management Commission of American

J. C. Thomson, president of North
west Bancorporation,
Minneapolis,
Minnesota, has announced that the di
rectors of the Bancorporation declared
a regular quarterly dividend of
twenty-five cents per share, on the
1,547,767 shares of stock outstanding,
payable on May 25th, 1949 to stock
holders of record as of the close of
business May 10th, 1949.

Heads Reserve Bankers
TWIN CITY NEWS
(Continued from page 54)
of A.I.B. in the public speaking con
test and she was also to compete at
the contest in Winona, which was held
the latter part of April.
“Rita” Elaine Endres of Midland
National Bank, Minneapolis, has been
chosen by Charm magazine to be one
of the guest editors of the September
issue. She will spend the week of
June 19th in New York City, as guest
of the magazine. Miss Endres is the
N o rt h w es te rn Banker,

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Federal Reserve Bank of St. Louis

M a y , 1949

William A. McDonnell, president of
the First National Bank in St. Louis,
was elected president of the Associa
tion of Reserve City Bankers at the
1949 annual meeting of that organiza
tion held at French Lick Springs, Indi
ana, April 18th-21st. Mr. McDonnell
is the first St. Louisian to serve as
president of the association since 1925.
In the banking field he has served
as president, Arkansas Bankers Asso
ciation, 1939-40; executive councilman
of American Bankers Association from
Arkansas, 1942-45, and member at
large, 1948-49; chairman, resolutions

St.

w il l ia m
a . M cD o n n e l l
President, First N ational Bank,
L ouis, and now President R eserve
C ity Bankers A ssocia tion

Bankers Association, 1942-46, and mem
ber, administrative committee, Ameri
can Bankers Association, 1948-49.

.\»rth Dakota

NEWS
ARNE A. GREGOR
President
Leeds

Joins Fargo Bank
Dell Palmer, for the past two years
cashier of the First National Bank of
Chippewa Falls,. Wisconsin, has been
elected executive vice president of the
Fargo National Bank, Fargo, North
Dakota, and has arrived to assume his
duties.
Mr. Palmer fills the vacancy left by
Lester E. Smith, who in January was
elected vice president of the Bank of
Southwest Fargo. He is a native of
Harris, Minnesota, and started bank
ing at the State Bank of Harris in
1920. He spent five years in the First
National Bank of Minneapolis and
from 1931 to 1940 was cashier of the
Clearwater, Minnesota, State Bank.
From 1940 to 1946 he was cashier of
the Chicago-Lake State Bank of Min
neapolis.
Mr. Palmer is enrolled in the gradu
ate school of banking, Rutgers Uni
versity, and has been active in the
National Association of Bank Auditors
and Comptrollers, and in the Ex
chequer Club, an organization of bank
officers in Minneapolis.

Purchases Bank Stock
Herman Klaudt, cashier at the Bank
of Hazelton, North Dakota, for the past
four years, has bought a controlling
interest in that institution, it was an
nounced recently. Mr. Klaudt bought
the holdings of Ben Meier of Napoleon,
who has acted as vice president for
over a year.
With his controlling interest, Mr.
Klaudt will assume the vice presi
dency of the bank and will continue
as cashier. The bank has a branch at
Starsburg. F. J. Appert is president
of the Hazelton institution.

Cashier of Rolla Bank
Election of H. Laurel Youtz as cash
ier of the Rolette County Bank of
Rolla. North Dakota, was announced
by V. L. Thompson, vice president and
managing officer, following a recent
meeting of the bank’s board of di
rectors.
Mr. Youtz, who already has arrived
to take over his new duties, moves to
Rolla from Valley City, North Dakota,
where he was assistant cashier of the
First National Bank of that city.

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Federal Reserve Bank of St. Louis

C. C. WATTAM
Secretary
Fargo

A native of Alexandria, Minnesota,
Mr. Youtz began his banking career
in 1938. Prior to going to Valley City
he was associated with the First Na
tional Bank at Lidgerwood, North Da
kota, and the Farmers National Bank
at Alexandria.
Announcement also has been made
that Sidney Sieracki, a member of the
Rolette County Bank staff since No
vember, 1948, has left to accept a posi
tion with the Red River National Bank
at Grand Forks, North Dakota.
The Rolette County Bank and all
other aforementioned are affiliated
with First Bank Stock Corporation.

of color in decorating. The new type
five-foot lamps in continuous recessed
troughs three feet apart give from 50
to 70 foot candles at desk level, with
out any glare, and eliminate the use
of desk and machine lights. Wall col
ors of dark green, dark brown, gray
and fawn, used to emphasize illumina
tion and to fade columns, create a
cheerful, dignified, harmonious and
restful effect. Noise is decreased by
over-all ceiling metal-pan soundproof
ing, carpeting and vinylite drapes.

New Vice President
Irving Trust Company, New York,
has announced the promotion of Ar
thur G. Boardman, Jr., from assistant
vice president to vice president and
the election of James A. Austin as a

Honor Minot Banker
Walter E. Tooley, vice president and
cashier of the First National Bank of
Minot, North Dakota, recently was
honored for his 40 years of continuous
service at the bank, when local and
bank officials presented him with a
watch as a gift, signifying their regard
and respect for him.

Remodeling Completed
The comprehensive modernization
of the upper floors of The First Na
tional Bank of Chicago, which has been
in process for the past two years, has
been completed. The new and remod
eled quarters, which are being visited
by customers and other friends of the
bank, contain the trust and real estate
loan departments on the fourth floor,
the various operating departments,
such as mail, clearings, transit and
bookkeeping, on the third floor, the
auditing, personnel and others on the
mezzanine floors, and the women’s
banking department on the second
floor.
Through the flooring-over of sky
light courts and by extending mezza
nines, the bank acquired an additional
23,000 square feet of space. These and
adjacent areas aggregating 125,000
square feet have been completely re
constructed with n e w ventilation,
lighting, soundproofing, floor cover
ings, decorations and some new equip
ment.
The outstanding features of the mod
ernization program are the extensive
use for the first time of new type low
brightness lights and the modern use

JAMES A. AUSTIN
Irv in g

V ic e President
T rust Com pany, N ew

York

vice president, the latter having been
associated for the past 10 years with
the firm of Winthrop, Stimson, Put
nam and Roberts.
Mr. Austin, a graduate of Cornell
University and the Cornell Law School
in 1925, was admitted to the New York
bar the following year. Having spe
cialized in corporate finance, he has a
broad experience in cases directly re
lated to corporate trust work, his back
ground being the whole field of se
curity origination and distribution. In
this work he has represented issuing
companies as well as underwriting
houses. He also knows the viewpoint
of government regulatory authorities,
having been assistant counsel with
the Securities and Exchange Commis
sion.
Mr. Austin is joining the corporate
trust division of the Irving.
N or t h w es te r n Banker, May ,

1949

•i

For 93 Years
SOUND

Complete

N or th w es te rn Banker,

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Federal Reserve Bank of St. Louis

BANKING SERVICE

Correspondent Facilities

U N I T E D ¡S T A T E S
J\faHona / B A N K 0/0 malia
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

S
M a y , 1949

Nebraska

\ i ;w s
J . R. KEN N ER
P residen t
Hebron

CA R L G.

SW A NSO N
Secreta ry
O m aha

L. J. Titus, well-known among Nebras
ka bankers. He was elected president
on his return from the Navy and pre
viously had served as assistant cashier
and vice president. A. 1. Rauch has
been with the bank since 1943 and is
executive vice president.
Two of the bank’s officers, Cashier
Will Lindstrom and Vice President
Bert Hanson, have been with the First
National for more than 40 years.

Heads Buffalo County
Clearinghouse Officers

Although final details of the pro
gram have not been completed, the
committee has announced that the
major portion of one day will be de
voted to agriculture. Included in the
day’s events will be a field trip to a
nearby conservation project where
bankers can see firsthand what can
and is being done.
The committee, in response to the
requests of many of the former “stu
dents,” has arranged for one additional
Size Group Session.

Election of new officers highlighted
the annual meeting of the Midwest
Nebraska Regional Clearing House
Association held in North Platte, Ne
braska, last month.
Forty bankers from banks in the
five-county region attended. Counties
in this region are Lincoln, Dawson,
Keith, Perkins and Logan.
Charles L. Cooper, president of the
Farmers State Bank, Wallace, was
named the new president, succeeding
Melvin Adams of the Bank of Brule.
J.
H. Cams, vice president of the Bank Is 65 Years Old
First State Bank of Gothenburg, was
The First National Bank of Holdnamed vice president. He replaces Mr. rege, Nebraska, last month passed its
Cooper.
65th year. Organized in April, 1884,
Gordon Jones, president of the Bank the First National has enjoyed con
of Brady, was elected secretary-treas tinual growth throughout this period.
urer, succeeding George Taylor of the Resources have increased from $90,900
North Platte McDonald State Bank.
in the first year to nearly $8,000.000 at
present. Deposits have grown from
Appoint Representative
$26,669 to $7,323,721 at the end of 1948.
The McDonald State Bank, North
President of the First National is
Platte, Nebraska, has announced the
engagement of Kenneth L. Gillett as
agricultural representative.
Mr. Gillett is an active farmer re
siding in Payne precinct and will con
tinue operating his farm.
He was born on a farm in Boone
county in 1914 and was graduated from
the College of Agriculture, University
of Nebraska, in 1935 with a bachelor
of science degree. For four years fol
lowing, Mr. Gillett taught vocational
agriculture in Custer county high
schools.
W. H. McDonald, chairman of the
board, says, “ The bank has needed an
outside representative for some time,
as our volume of business has made
it impossible for the active officers to
do this. Because of his experience,
education and training, we are pleased
to have Mr. Gillett join our staff.”

1949 Bankers' Clinic Dates
Meeting to apply some of the finish
ing touches on a well developed clinic
program, Chairman Geo. Wright called
his committee to Lincoln, Nebraska,
last month.
The 1949 Bankers’ Clinic will be held
at Doane College, Crete, on Thursday,
Friday and Saturday, June 9th, 10th
and 11th.

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Federal Reserve Bank of St. Louis

BETTER LIGHTING conditions,
effected through the use of special
ly designed “ egg-crate” fixtures
which use a “ Slim Line” bulb, have
brightened the interior o f the Na
tional Bank of Commerce, Lincoln,
Nebraska, as the above photograph
shows. The high ceiling has been
fibre soundproofed and the new fix
tures fit into it without destroy
ing any o f the acoustical effects.

Leo Ryan, cashier of the Platte Vallay State Bank, Kearney, Nebraska,
was elected president of the Buffalo
County Bankers Association at the an
nual election meeting. He succeeds
J. W. Poynter in the presidency.
Named secretary-treasurer was Dan
Reiter, also of the Platte Valley Bank,
who succeeds Kelly Bowen.

Resigns at Brainard
Ernest J. Bruner, who has been em
ployed at the Bank of Brainard, Ne
braska, since January 11, 1943, resigned
his position, effective May 1st. He
was succeeded in the bank by Stanley
J. Sedlacek, a graduate of Brainard
high school, and quite well known in
that territory.

Lincoln Banks Report
Figures reported by Lincoln’s banks,
in response to a call issued by the
comptroller of currency for the condi
tion of all national banks as of April
11th, show a decline in deposits of
more than five million dollars since
December 31, 1948.
The banks’ reported figures on loans
and assets showed increases in both.
The figures follow:
A pril 11, 1949
Deposits

Loans

First National Bank.... .$ 44,336,059 $ 7,787,756
6,472,476
Continental National . . . . 28,795,330
National Bank of Com
.
31,700,408
10,802,919
merce ......................
1,614,316
506,532
Havelock National ......
1,564,846
Union Bank ................
3,271,769
1,827,462
429,789
Citizens State Bank......
Totals.................... .$111,545,344 $27,564,318

Buys Peru Bank Stock
President Carroll Lewis of the Bank
of Peru, Nebraska, announced that
he has acquired the major part of the
stock holdings of Ann Farley who has
had joint control of the bank with Mr.
Lewis since its organization in 1933.
Mr. Lewis has also purchased the
partnership interest of Miss Farley in
the Lewis & Farley Insurance Agency.
Miss Farley retains qualifying shares
to continue as cashier and a director
of the bank.

Resigns Position
Richard J. Detimore, assistant cash
ier at the Stromsburg Bank, Stromsburg, Nebraska, resigned his position
N o r t h w e s t e r n B a n k e r , May, 1949

N ebraska

News

to accept a cashiership at the First
National Bank at Shelby. Mr. Detimore entered the employ of the
Stromsburg Bank about three years
ago.

Bank Officer, now em ployed, seeks
connection with progressive city
bank in correspondent bank, or
livestock loan departm ents. Tw enty
years city and country bank experi
ence in fou r states. W rite A D Y ,
c /o N orthwestern Banker, 527 7th
Street, Des Moines, Iowa.

Nsv/ Servscs
The National Bank of Commerce in
Lincoln, Nebraska, has just inaugu
rated what they believe to be an en
tirely new service for banks. It is
a junior checking account for boys and
girls under 17 years of age who are in
some sort of business, but is especially
designed for newsboys.
Detailed instructions are being given
each one of these new customers on
how to take care of a checking account.
One of the bank’s officers is especially
assigned and trained to open all of

these accounts. When the customer
reaches the age of 17, he must take one
of the other checking account systems
in the bank. Because of the impor
tance of training these younger people
in the handling of money and checks,
the National Bank of Commerce has
made a small concession as far as serv
ice charges are concerned on these
accounts.
Special checks bearing the title “ Jun
ior Checking Account” and with a
young boy and girl silhouetted on the
background are issued to these junior
account holders.

To Direct Marketing

In any country or

language

(fan Save wm\-7 Haáe m o n e y
for You and Your Customers
T hese City National Foreign Department
services can help you and your customers
share in the profits of foreign trade :
Information on Foreign Markets, Credit
Reports, Recommendations on Foreign
R ep rese n ta tiv es, L etters of C red it,
Financing Export Operations, Constant
Checking on Foreign Exchange, Collec
tions, Remittances, Checking Shipping
Documents, Import and Export Proce
dure, Translations in All Major Languages,
C o d in g or D e c o d in g C a b les, D ir e c t
Banking Connections . . .W o r l d -W i d e !

Home Loan Bank Meets
Foreign words
meaning money:
Dinero—Spanish
Moneta—Italian
Geld—Dutch
Argent—French
Dinheiro—Portuguese

£ B a n fi &

MEMBER FEDERAL DEPOSIT
INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

I 1o

NA L

M a y , 1949

The sixteenth annual meeting of
stockholders of the Federal Home
Loan Bank of Des Moines was held
recently in Des Moines. About 425
representatives of savings and loan
association members from Iowa, Mis
souri, Minnesota, North and South Da
kota attended.
Banquet speakers were William Iv.
Divers, chairman of the Federal Home
Loan Bank board, Washington, D. C.;
Robert E. Lee Hill, Columbia, Mis
souri, chairman of the board of the
Des Moines Bank, and Tom Collins,
humorist of Kansas City.

CITY NATIONAL
ESTABLISHED 1913

John J. McCloy, president of the
International Bank for Reconstruction
and Development, has announced that
Norman M. Tucker has been appointed
director of marketing for the Interna
tional Bank, New York City.
In announcing Mr. Tucker’s appoint
ment, Mr. McCloy pointed out that the
position of director of marketing has
been vacant since the resignation of
E. Fleetwood Dunstan at the end of
1948. Mr. Tucker will continue the
bank’s policy of keeping institutional
investors and securities dealers in
formed of the bank’s operations and
will have charge of the development
of future borrowing and marketing op
erations, both in the United States and
abroad.
Mr. Tucker has been west coast rep
resentative for the Chase National
Bank of New York City, in connection
with which he has been dealing with
institutional investors, securities deal
ers and financial institutions.

ß o t n f u iiv u

As a feature of the banquet, Robert
J. Richardson, president of the Federal
Home Loan Bank of Des Moines, was
made an honorary member of the
American Savings and Loan Institute.
The institute is the nationwide edu
cational organization of the savings
and loan associations.

The pictures above were taken at the 1949 Group Meetings
o f the Nebraska Bankers Association. Beading from left to
right, those appearing are:
1—
Upper left picture, Burnham Yates, vice president First
National Bank, Lincoln; Frank Fuchs, vice president First
National Bank, St. Louis; Lyle Stoneman, vice president First
National Bank, Lincoln; Ernest Thompson, assistant secretary
Nebraska Bankers Association, Omaha; J. F. McLain, director
o f banking for Nebraska, Lincoln; and W. H. Pierce, president
First National Bank, Osceola, and vice president Nebraska
Bankers Association.
2—
Burnham Yates, vice president First National Bank, Lin
coln, an executive councilman Nebraska Bankers Association;
J. R. Kenner, president Thayer County Bank, Hebron, and
president Nebraska Bankers Association; H. W. Schepman,
vice president Johnson County Bank, Tecumseh, also in the
council; and W. H. Pierce, vice president of the Nebraska
Association.
3—
J. W. (Jack) Sharp, passenger agent Burlington Railroad,
in charge of the Nebraska Bankers Special Group Train; John
Keiser, St. Paul Terminal Warehouse Company, Omaha; John

Changstrom, vice president Omaha National Bank, Omaha;
Charles Kuning, vice president American National Bank, Chi
cago; and Paul Hansen, vice president Live Stock National
Bank, Omaha.
4—
Lower left picture, Ed Peck, United States Check Book
Company, Omaha; Allen L. Tinstman, cashier State Bank, Jan
sen, Nebraska; and Austin King, United States Check Book
Company.
5—
Seated, Mrs. C. J. Bachoritch, Fairbury; Mrs. Luther
Bonham, Fairbury; Mrs. R. E. Burkley,, DeWitt, Nebraska;
Mrs. M. Jennings, Jr., Western, Nebraska; and Fred Peters,
assistant vice president United States National Bank, Omaha.
Standing, C. J. Bachoritch, vice chairman o f the board and
executive vice president First National Bank, Fairbury; and
Austin Vickery, vice president United States National Bank,
Omaha.

6—
Ernest Hultgren, First National Bank, Chicago; Leland
Hall, Savings Bond director for Nebraska, Omaha; T. C. Can
non, regional manager St. Paul Terminal Warehouse Company,
Omaha and Des Moines; and Carl Bloom, assistant cashier First
National Bank, Omaha.

N ebraska M eetin g s W ell A tleaded
Association Adopts Soil Conservation Program

T THEIR Group Meetings just
concluded, members of the Ne
braska

Bankers Association

took the first step in a long-range pro
gram which can be the most important
project ever undertaken by the associa
tion. The project is an intensive and
extensive soil conservation plan for
Nebraska.
With approximately one-half of Ne
braska suited to production of crops,
and the other half range, the top soil
of the rapidly eroding crop portion of
the state must be conserved if future
generations of Nebraskans, both farm
ers and urban dwellers, are to con
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Federal Reserve Bank of St. Louis

tinue to enjoy the prosperity of their
forebears.
The programs of all the Group Meet
ings were directed at this Soil Con
servation Project. The first step, now
being taken, is the organization of the
Nebraska Soil Conservation Founda
tion. While bankers are to be the

nucleus of the plan, industry and all
commercial businesses will be in
cluded, because as the land prospers
so does all else, since all business ac
tivity finds its beginning in the soil.
A board of directors of the Founda
tion will be named to administer the
project. A competent man will be

employed, given a car and he will
travel the state constantly in the in
terests of soil conservation—showing
slides and making talks, organizing
local groups and instructing these
groups on how to get started and then
helping them follow-through.
It is anticipated the project will cost
from $15,000 to $20,000 a year. Bank
ers and business men will be asked
for contributions and all the large city
banks in Nebraska are solidly behind
the plan.
Attendance at all the six meetings
was excellent. Announcement was
N o r t h w e s t e r n B a n k e r , M a y , 1949

N ebraska

News

made of the dates of the Nebraska
Bankers Clinic—June 9th, 10th and
11th. Doan College in Crete will again
he headquarters for the clinic.
It was orchids to the bankers’ ladies
at Alliance, when they enjoyed a
luncheon and afternoon of bridge. The
flowers were flown in direct from
Hawaii at the direction of William
Rudd, local ladies ready-to-wear store
owner.
Two pre-meeting breakfasts greeted
passengers on the Group Meeting
special train, one at Broken Bow and
the other at Columbus. Both were
held at the country clubs of these
cities. Tom Varney, Jr., headed host
hankers at Broken Bow and .J. O. Peck
at Columbus.

Since

1871

acquiring
adequately

the

have

serve

our

corre

spondents.
We

invite you

FIRST NATIONAL R IM OF LINCOLN

1871

N or th we s te rn Banker,

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LINCOLN, NEBRASKA

1949

Member Federal D eposit Insurance Corporation

Through a plan originated by R. P.
Rinne, rural fieldman for the First
National Bank, Fairbury, Nebraska,
the bank will finance the Fairbury
FFA boys in purchasing any certified
crop seed they choose.
Under the plan, all boys purchasing
seed are required to have the seed
they grow certified. They also must
return pound for pound to the bank
from what they raise.
The plan is to help the individual
boy and encourage a grain improve
ment program.

irst National

Bank of

Oldest National Bank From Omaha West
Member Federal Deposit Insurance Corporation
M a y , 1949

•f-

Financing FFA Loans

to take ad

vantage of our services.

The beautiful weather for the five
days of Group Meetings permitted
those inclined to get in some golf, and
at Broken Bow a tournament was ar
ranged, with Tom Varney, Jr., presi
dent of the Broken Bow State Bank,
as the sponsor. An engraved cup was
awarded to the winner, John Lauritzen, assistant vice president of the First
National Bank of Omaha. The Broken
Bow course is 9 holes, and the cup was
given for the first round, Mr. Lauritzen coming in with a 35.

been

experience

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I f Your
Customers Raise
or Feed Live Stock
We Can Be o f
P articular
Service to You
THE ONLY BANK IN OMAHA’S GREAT UNION STOCK YARDS

StockYards National Rank
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 . 194 9

“GRASS ROOTS” soil conserva
tion education program was
A
launched in Omaha the middle of April
by the Nebraska Bankers Association.
The association executive council
approved a program to halt soil ero
sion, according to J. R. Kenner of
Hebron, association president.
Bankers are appalled, he said, be
cause 50 per cent of the state’s acreage
is in a state of mild to severe erosion.
He estimated that 20,000,000 acres bear
erosion scars.
A committee of five bankers was
named to perfect within 30 days the
nonprofit Nebraska Co ns e r v a t i o n
Foundation. Nebraska will be the first
state to sponsor a similar program.
Fred L. O’Hare, president of a bank
at Greencastle, Indiana, told of his
area’s experience with soil saving.

Production was increased three-fold on
less land.
Framing of the new Foundation will
be in the hands of Walter Chase, presi
dent of the Farmers National Bank of
Pilger and a former county agent;
Burnham Yates, vice president of the
First National Bank of Lincoln; John
Davis, vice president of the First Na
tional Bank of Omaha; H. W. Scheurman, vice president of the Johnson
County Bank of Tecumseh, and Imme
diate Past President J. O. Peck of the
Nebraska Bankers Association, who is
president of the Central National Bank
of Columbus.
Fifteen country bankers from all
parts of the country became “ stu
dents” in Omaha during April.
Primarily, they studied the problems

Qocuàuiòu

of running smaller banks. But they
also fitted the functions of those banks
into the world picture.
Richard W. Trefz, president of the
Beatrice (Nebraska) State Bank, is
chairman of the 15-man Country Bank
Operations Commission. It is a divi
sion of the American Bankers Asso
ciation.
Nine committees tackled various
hanking operations at the Omaha meet
ing. One group, headed by Alonzo
Petteys, vice president of the Farmers
State Bank of Brush, Colorado, is
studying economic trends. George
Amy of New York is secretary of the
Country Bank Operations Commission.
Mr. Petteys warned the country
bankers to “go slow on cattle and
farm commodity loans.” He cited his
studies of farm and industrial condi
tions for 31 years. He has studied
prices on the Omaha market since
1918. In 22 of the 31 years the top
price of fat steers in October was high
er than the top in the following March
when feeders went back to market
He advised bankers to make loans on
the basis of anticipating a 50 per cent
drop in cattle and commodity prices.
“ In that way,” he stated, “ there will
be no repetition of the 1930’s.”
Deposits at the close of business
April 11th in Omaha banks, in re
sponse to a bank call by the Comp
troller of Currency, were $39,255,606
below the figure for the first of the
year.
Loans were down $2,663,356 in the
same period.
Despite the dip, banks had more
money and were lending more than a
year ago. Deposits were $2,055,138
higher than in April, 1948, and loans
were up $6,954,343.
The April 11th figures:
Deposits

The traveling time from Jackson County to Santa Fe was to
be sharply reduced, for a new stage line was established that
hurled men and vehicles across the 800 miles of prairie in a
scant twenty-five days! Each stage was drawn by six mules, was
“ well guarded” and “ provisions, arms and ammunition” were
furnished by the proprietors. Surely, a bargain at the low one
way fare of $150.00!
Today, such distances are matters of hours rather than days,
and all the far-flung West is at our fingertips. The interests of
our correspondents reach from coast to coast and in serving all
these interests the Inter-State brings to bear the modern facil
ities that have been established to meet their ever-expanding
needs.

the Inter -S tate
LIV ES TO C K EXCHANGE BLD G.

c j^ a /td o d

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Federal Reserve Bank of St. Louis

National Bank
16TH.

ANO

GEN ESEE

M em ber F e d e ra i D eposit in su rance Corp.

M a y , 1949

STS.

C ^ û ^ d o u /t ù

Loans

Omaha National ............$135,260,140 $27,819,958
First National .............. 77,811,211 19,814,608
United States National... 62,590,332 15,101,950
Live Stock National........ 52,748,534 24,156,701
Stock Yards National.... 20,311,043
4,226,652
1,812,254
Packers National...........
9,604,845
Douglas County Lank.... 8,341,156
1,732,953
North Side Bank...... . ..
5,561,058
1,413,975
South Omaha Savings . ...., 2,164,760
1,706,773
Totals .................... ..,$373,393,079 $97,785,824

A total of $147,595.07 is collecting
dust in 17,966 dormant checking ac
counts in eight Omaha banks.
And none of this money has been
claimed. Even a bank forgets! An
outstate bank was reminded that it
had had $33.88 on deposit in Omaha
for 31 years.
Two years ago one bank started to
try to find forgetful deposits to give
them back $33,000. But it has been
able to give back only $3,500.
Dormant accounts are headaches to
bank's, They mean more bookkeeping
and the money can’t- be loaned. The

Nebraska

number of “dead-timber” accounts in
Omaha ranges from 8,000, totaling $25,000 in one bank, to 26, totaling $2,302.49
in another.
Migrant war workers account for
some of the untapped cash.
Twenty years ago the banks carried
$68,000 in unclaimed deposits.
Mr. and Mrs. Dale Clark are home

after a three weeks’ trip. They were
at the Wigwam, Litchfield Park. Ari
zona, and then in Los Angeles with
relatives. Mr. Clark is chairman of
the board of the Omaha National Bank.
Among Omahans who enjoyd late
winter vacations in Hawaii were Mr.
and Mrs. Frank Bender. They also
were at the Arizona Biltmore in Phoe
nix, and in Los Angeles. They spent
two weeks at the Royal Hawaiian
Hotel in Honolulu and stopped at Palm
Springs and at Tucson en route home.
They were gone two months. Mr.
Bender is president of Wachob-Bender
Company, Omaha investment firm.
Mr. Bender was among a group of
Rotarians honored at a luncheon of
the Honolulu Rotary Club. The tra
ditional lei of friendship was pre
sented by the former Olympic swim
ming champion, Duke Kahanomoku,
himself a Rotarian.

Mr. and Mrs. Henry C. Karpf have
returned from a southern vacation
that took them to the Mardi Gras in
New Orleans and on a Caribbean
cruise. Mr. Karpf is president of the
Live Stock National Bank of Omaha.

News

The Securities and Exchange Com
mission has approved a request of the
Northern Natural Gas Company of
Omaha to sell 406,000 shares of $10 par
common stock. Proceeds will be used
to finance new construction.

STATEMENT OF CONDITION

The CONTINENTAL NATIONAL BANK OF LINCOLN
LINCOLN, NEBRASKA
At the Close of Business April 11, 1949
RESOURCES
Cash and Due irom Banks........................................................................... S 8,214,109.55
U. S. Government Bonds............................................................................... 14,484,058.12
Municipal Bonds and W arrants...................................................................
480,735.61
Other Bonds .....................................................................................................
502,266.13
Loans and Discounts...................................................................................... 6,468,069.29
Stock in Federal Reserve Bank...................................................................
36,000.00
Furniture, Fixtures and Vaults.....................................................................
53,065.90
66,788.78
Interest Earned but Not Collected..............................................................
Overdrafts .......................................................................................................
4,407.35
Total.......................................................................................................... $30,309,500.73

LI ABI LI TI ES
Capital Stock ................................................................................................ $
600,000.00
Surplus .............................................................................................................
600,000.00
Undivided Profits and Reserves..............................................................
254,486.91
Interest Collected but Not Earned..........................................................
34,183.52
Reserved for Taxes, Interest and Expenses.........................................
25,499.71
Deposits ........................................................................................................... 28,795,330.59
Total.......................................................................................................... $30,309,500.73
M em ber of F ederal Deposit Insurance Corporation

Ernest Tanner, First National Bank
of Omaha, was top man in the annual
Ak-Sar-Ben membership drive. He ob
tained 254 members. At a meeting he
was congratulated by Ed F. Pettis,
former Omaha banker and now a de
partment store executive, who served
as chairman of the record-smashing
drive.
Mi*, and Mrs. Ellsworth Moser have
returned from a vacation in Florida.
They spent two weeks at Delray
Beach. Mr. Moser is president of the
United States National Bank of Omaha.
Hawthorne Arey, former Omaha at
torney, was approved recently by the
Senate Banking Committee as a direc
tor of the Export-Import Bank. He
had been vice president of the bank.
Frank .1. Sehuetz of Omaha was one
of three men who came out of retire
ment recently to aid the United States
Savings Bond drive during April. A
former banker at Lawler, Iowa. 25
years, Mr. Sehuetz retired in 1947 after
being assistant secretary-treasurer of
the Federal Intermediate Credit Bank
of Omaha.
YOUR STATE BANKERS ASSO CIATIO N
O FFIC IA L SA FE, V A U L T AN D
TIMELOCK EXPERTS

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

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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1&49

LIveSTÖCK
MA.H0 f4AL

'Your 15 minutes are up, sir! . .

Northwestern Banker, May, 1949

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

. . . "You been lookin’ a lot healthier ever since you're
getting your nightly sunlamp. I tol’ the missus: 'Honey,
them boys at the bank don't get no sun, what with
working all night to give Live Stock National’s corre
spondent banks fast 24-hour service on transits. An'
xney gotta work nites to save up-to-a-day's time on
clearance on collection items!’ Then's when she made
me bring over that sunlamp. She says good health is’s
important as good service!"
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O MA H A ,

BANK

N E B R A S K A

The Bank of Friendly 24-Hour Service
Member of Federal Reserve and Federal Deposit Insurance Corporation

U ran i
Annual P re sid en t at
F irst N a tion a l o f Sioux
executive changes took
Sof EVERAL
place at the First National Bank
Sioux City, Iowa, last month when
A. G. Sam was named chairman of
the board of directors and Joe T. Grant
was elected president succeeding him.
Harold V. Bull of Mankato, Minne-

cessively elected assistant cashier,
cashier and vice president before his
recent election to the presidency. At
the age of 41 he is Sioux City’s young
est bank president.
His banking experience began with
the Farmers National Bank in his

home town of Clay, Kentucky, where
he worked for seven years. In 1935
he moved to the Merchandise National
Bank of Chicago, remaining there two
years. It was at this time he joined
the First National of Sioux City.
He has been active in banking work
in Sioux City and Iowa. In 1947 he
was president of the Sioux City Mort
gage Bankers Association.
Mr. Bull, the new vice president,
was born in Yankton, South Dakota,
began his banking experience in Ma
son City, where he was cashier and
director of the First National Bank,
then in 1933 went to the National Citi
zens Bank of Mankato, Minnesota.
There he served as cashier, vice presi
dent and president. After 10 years
as president he resigned in 1947 to
enter the investment banking busi
ness.
Mr. Snell is a veteran of 41 years’
service with the First National, most
of which time he has been a paying
teller.
Total assets of the First National
Bank as reported for the bank call last
month were in excess of $20,000,000.
The total capital account was $1,030,954 and deposits were nearly $19,000,-

000.

Retires at Indianola

The board of directors of the Peoples
Trust & Savings Bank of Indianola,
Iowa, last month accepted the resigna
tion of W. N. Grant, who completed
30 years of service with the bank in
February.
He will continue as a director and
inactive vice president and will have
a desk at the bank for his personal use.
A. H. Traub was elected an assistant
cashier by the board.
Mr. Traub began work for the bank
in July, 1946, after serving many years
as county auditor.

H A R O L D V. B U L L
New V ice P resid en t, F ir s t N ational
of Sioux City

>
New

JO E T. GRANT
P resid en t, F irs t N ational
of Sioux City

Bank

sota, was elected vice president and
Earl E. Snell was advanced to assist
ant cashier by the board of directors.
Mr. Sam has been with the First
National Bank for 10 years and has
been president since 1941. He has
been in the banking business more
than 48 years, having worked in banks
in Chicago, Minneapolis and St. Paul
before moving to Sioux City.
Mr. Grant joined the First National
Bank as auditor in 1937 and was suc

iowa 09roup Meetings Schedule
5
6
10
8

Tuesday,
Wednesday,
Thursday,
Friday

May
May
May
May

10
11
12
13

Council Bluffs
Grinnell
Ottumwa
Tipton

2
3
4
7

Tuesday,
Wednesday,
Thursday,
Friday,

May
May
May
May

24
25
26
27

Templar Park (Spirit Lake
Mason City
New Hampton
Waterloo

D id you know that this com pany has specialized
in Bank Insurance since 1919— that it has the inside
view on Bank Insurance problem s? Consult
us freely at any time.
F IR S T

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

•

Meeting Place

Date

Group

C H IC A G O

F
i l

DC/Iv) U .

CX. V>U 11IJyíil 1j

p
Insurance Counselors |
3,

IL L IN O IS

•

STATE

2 4325

Northwestern Banker, May, 1949

Iow a

News

Council M u f f s Hits! tit iivoup J

mea<¿u?ie
/ / /
Y O U R C LIEN T S’ BIG G EST
F O R E IG N M A R K E T
Measure it as you w ill. . . your clients’
largest single U. S. customer is just
across the border. . . . in Canada!
Consider the figures. Annual imports,
$2*4 billion . . . exports, over $3 bil
lion . . . gross national product, more
than $15 billion . . . wages and sala
ries, over $7 billion.
Since 1817 the Bank of Montreal
has shared in Canada’s growth . . .
has grown with it. With more than
500 Canadian branches, we are thor
oughly equipped to answer the spe
cific questions that you or your clients
may want to ask.
So, if you have clients who are
planning expansion, talk Canada
with us. Write or call any of our
offices in the United States or our
Foreign Department in Montreal.

Y O U R F R E E C O P Y IS W A IT IN G F O R Y O U
J f any of your clients are
planning expansion, y ou’ll
w ant this w o rd -p ictu re of
post-w ar C anada, i t ’s yours
for the asking. Simply ask
for Booklet C -S l.

B a n k of
M ontreal
Canada’s First cBank
In C a n a d a since 1 8 1 7 . . . In U .S . since i 8f g

u. s.
N EW Y O R K ..................... 64 Wall St.
C H IC A G O ............. 27 S. La Salle St.
SAN FRANCISCO - 333 California St.
HEAD OFFICE
MONTREAL

LO ND ON

47 Threadneedle St., E. C. 2
9 W aterloo Place, S. W. 1

ZOO
A#**i e ^ aM
RESOURCES

OVER

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Northwestern Banker, May, 1949

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

/^"''OUNCIL BLUFFS extends its W e i
's_come to the annual meeting of
Group 5 on Tuesday, May 10th.
This constantly growing city, with
the present population of 46,000 per
sons, is located in the center of the
world’s food supply. The great farm
ing community is supplemented with
industries whose number and growth
are ever increasing.
Council Bluffs derives its name from
the historic meeting of Lewis and
Clark with the Indians in 1804, which
was held on the bluffs overlooking the
Missouri River. It was soon after that
the Mormons constructed a trading
post here while on their great trek
westward. These early dates well sup
port the words which still are dis
played throughout the city, “Gateway
to the West.”
A monument now commemorates
the site of Abraham Lincoln’s address
in 1859, in the company of Grenville
M. Dodge. It was then that Lincoln
proclaimed Council Bluffs to be the
eastern terminus for the great Union
Pacific Railroad.
Since that time,
Council Bluffs has proved this to be
true as it now boasts some nine major
trunk lines which places it largest in
its population class and fifth on the
national scale. The mail terminal is
the third largest in the United States.-

Railroad Center
As a result of such a great railroad
center and farming community, other
industries have found it to their bene
fit to locate in Council Bluffs. Truck
body manufacturers, feed mills, grain
elevators, playground equipment, dair
ies, lubricating oils, greenhouses and
many others have made the city one
of the most stable and rich in the na
tion in retail trade.
The scenic beauty of Council Bluffs
is very favorable. Extending from
seasonal hills to the enjoyment of
Lake Manawa, the population also en
joys the 1,000 acres of parks which
are always being improved with more
modern and up to date equipment.
Young and old alike attend the amuse
ment park with its roller coaster and
other rides.
Council Bluffs has always been
sports-minded. Its local schools pro
vide keen competition as well as the
many independent teams which have
pleased the public.

Group 5 Program— May 10
COUNCIL BLUFFS
A.M.
10:00

Registration and Visiting—Ho
tel Chieftain Lobby (fee $4.00
per person, including lunch
eon).

P. M.
12:30
12:35

Luncheon—Hotel Chieftain.
Invocation — Rev. Laurence
Wiersbeck, pastor, Our Sav
iours Lutheran Church, Coun
cil Bluffs.
1:30 Call to Order — L. F. Fruse,
chairman, Group 5; president,
Mineola State Bank, Mineola.
1:35 Welcoming Remarks — Lewis
W. Ross, president, First Na
tional Bank, Council Bluffs.
1:40 Observation and Introduction
of Guests—L. F. Kruse.
1:50 Talk—H. W. Schaller, presi
dent, Iowa Bankers Associa
tion; president, Citizens First
National Bank, Storm Lake.
2:05 Talk—N. P. Black, State Super
intendent of Banking, D e s
Moines; president, Perry State
Bank, Perry; president, Dallas
County Savings Bank. Minburn.
2:20 Address — “America's P a r
Value,” Nathan Howard Gist,
humorist, inspirational speaker
and columnist, New York City,
New York.
3:05 Observations — E. W. Burdic,
president, Southwest I o w a
County Bankers Association,
Malvern.
3:20 Remarks — Frank Warner, sec
retary, Iowa Bankers Associa
tion, Des Moines.
3:35 Report of Nominating Commit
tee.
3:40 Election of group officers for
1949-52.
3:45 Adjournment.
Convention Committee
Charles W. Langmade, general chair
man, cashier, First National Bank.
Donald McMullen, assistant cashier,
First National Bank.
R. H. Tornblom, vice president, City
National Bank.
Charles Hannan, cashier, City Na
tional Bank.
William Sinclair, assistant cashier,
State Savings Bank.
Carl Jones, assistant vice president,
State Savings Bank.
E. H. Spetman, Jr., assistant cashier,
Council Bluffs Savings Bank.
James Gronstal, assistant vice presi
dent, Council Bluffs Savings Bank.

J. R. Witzigman
J. R. Witzigman, cashier of the Miles
Savings Bank, Miles, Iowa, and a prom
inent civic and 4-H Club leader, died
last month in Jane Lamb Hospital,
Clinton.
He had been a sponsor of 4-H Club
baby beef shows for 25 years.

Make a Note to Attend
The Annual Meeting
of Group 5 in Council Bluffs

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

Bankers of Pottawattamie County and Council
Bluffs are most happy to extend an invitation to the
bankers of Group 5 and their friends to meet with us
Tuesday, M ay 10th, in Council Bluffs.
Extensive plans are being m ade now for an out
standing program.

Let's all attend and make this

year's meeting one of the most successful of all time.
Remember to make a note of the time and place . . .

COUNCIL BLUFFS-Tuesday, May 10
MAY WE COUNT ON YOUR PRESENCE?

CITY NATIONAL BANK
STATE SAVINGS BANK
FIRST NATIONAL BANK
COUNCIL BLUFFS SAVINGS BANK

Northwestern Banker, May, 1949

Iowa

News

U rinnetl

famous
glue
I s P ro sp ero u s C en
ter
at Grinnell.

D ARBY G YM NASIUM on the Grinnell college campus, Grinnell, Iowa, is one
o f the newest and most modern iieldhouses in the mid-west. Bankers o f Group Six
will have an opportunity to see this and other new buildings on the Grinnell
campus when they visit Grinnell on Wednesday, May 11th.

|T WAS Josiah B. Grinnell to whom
I Horace Greeley said: “Go West,
young man.”
It was Grinnell, Iowa, to which Jo
siah B. gave his name.
Time and fortune have proved J. B.
and Greeley right on all counts, for
Grinnell, Iowa, is an enterprising and
prosperous little city today, worthy of
the illustrious name it bears and mon
ument to the sagacity of the editor
from New York City.

A center of agriculture, industry,
transportation and higher education,
Grinnell is considered a good place to
live by the more than 6,000 regular
inhabitants and the 1,100 Grinnell Col
lege students who are in residence
during ten months of the year.

Varied Businesses
Millions of acres of corn are raised
every season within a short driving
distance of Grinnell. Two big hybrid
seed corn companies and a nationally

CHECKBO O KS WITH A FUTURE
O f the millions o f people who have
checking accounts, there are perhaps a
few thousand who want to keep a
detailed record covering each check
issued. The remainder require the most
simple type o f record that will give
them the essential information. For this
great mass market, we introduced some
years ago the sin gle-lin e register to
replace the conventional check stub,
and since then have won acceptance
from several million people who now
use and like our popular Personalized
Pocket Checkbook.
T h is past year we introduced the same
type o f register in The Secretary, a rhreeon-a-page checkbook for the person
who keeps his book in his desk at home.
Substantially the same type o f register
is also used with The Executive, a new
business-sized checkbook for the exec
utive or professional man who keeps
his book in his desk at the office.

Deluxe

These two new checkbooks, together
with our established pocket style check
book, are, in our opinion, the check
books with a future. Perhaps they might
even be termed the checkbooks of the
future. All three books are personalized,
bearing the printed name and address
of the individual. All three have attrac
tive covers, gold-stam ped with the
individual’s name. All three employ the
simple, compact, single-line register.
All three please the public and save
money for banks.
W h e n you sell the Personalized Pocket
Checkbook (200 checks for $1.35), and
The Secretary (300 checks for $2.00),
and The Executive (30 0 checks for
$2.75), you offer to your customers
three checkbooks o f distinction that
click with the great majority o f people
. . . and you recover all your check
expense and make things easier for the
people in your operating departments.

Manufacturing Plants a t:
N E W Y O R K , C L E V E L A N D , C H IC A G O , K A N S A S C I T Y , ST. PA UL

CHECK PRINTERS
cPnc

grass seed company are
Gloves and shoes are
manufactured here in quality lines
known throughout the country. Grinnell’s outstanding insurance organiza
tion reinsures the risks of more than
100 county mutual insurance associa
tions, totaling nearly a half billion dol
lars.
Two banks, the Grinnell State Bank
and Poweshiek County National Bank,
with combined assets of more than
eight and three quarters million dol
lars, head the financial structure of the
agriculture and industry of the area.
A large poultry and egg processing
plant, and big butter manufacturing
outfit, and numerous small manufac
turing plants lend strength to the in
dustrial picture.
A regular east-west, west-east, stop
on the Rock Island Railroad, Grinnell
has the service of all that company’s
crack streamliners, as well as the
freight and service trains, while the
Minneapolis and St. Louis gives a di
rect line between the twin cities and
St. Louis. Highways 6 and 146 serve
the city.

Grinnell College
Grinnell College is one of the out
standing liberal arts institutions of the
nation. Headed by its sixth president,
Samuel N. Stevens, Grinnell is under
a long-range building program, which
has seen the erection of Darby gym
nasium, Loose Hall for the women’s
attractive dormitory system , and
Cowles Hall for men, with ground to
be broken shortly for Younker Hall,
completing the men’s dormitory of
eight units. Complete renovation of
Herrick Chapel, with the installation
of a $40,000 new organ, has just been
finished. Complete rebuilding of the
kitchens in the women’s quadrangle
has been so successful the work is
serving as a model for other institu
tions. A new science building is in
immediate prospect, with a big health
center, a fine arts building, a new un
ion, and other major structures to
follow.
The college is recognized scholasti
cally by every accredited board in the
country, is constantly represented in
ternationally by students and faculty,
and has become a center for conven
tions of religious, academic, and other
groups of the highest integrity and
purpose.

BANKS

Bought and Sold

Confidentially and with becoming dignity

SANK E M P LO Y EES PLACED
44 Y e a rs S a tis fa c to ry S e rv ice

CHARLES E. WALTERS CO.
OMAHA. NEBRASKA

Northwestern Banker, May, 1949

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

(

4
f

(

Iowa N ew s

Group 6 Program— May 11
GRINNELL
A. M.
11:00 Registration — Alumni Recita
tion Hall, Grinnell College (fee
of S5.00 covers registration, din
ner and evening entertain
ment).
The facilities of the Grinnell Country
Club golf course will be available to
all members who wish to play.
P. M.
1:30 Alumni Recitation Hall Audi
torium. Meeting Called to Or
der—G. M. Barnett, president,
Guthrie County State Bank,
Guthrie C e n t e r ; chairman,
Group 6, Iowa Bankers Associa
tion.
Invocation — Rev. Leland W.
Mann, pastor, First Congrega
tional Church, Grinnell.
Address of Welcome — R. S.
Kinsey, executive vice presi
dent, Poweshiek County Na
tional Bank, Grinnell; vice pres
ident, Poweshiek County Bank
ers Association.
Appointment of committees.
Address—H. W. Schaller, pres
ident, Iowa Bankers Associa
tion; president, Citizens First
National Bank, Storm Lake.
Comments—N. P. Black, State
Superintendent of Banking, Des
Moines; president, Perry State
Bank, Perry; president, Dallas
County Savings Bank, Minburn.
Address — “Can Our American
Economy Survive?” , Nat han
Howard Gist, humorist, inspir
ational speaker and columnist,
New York City.
Talk—C. D. Clausen, president
and chairman, Group 6, Council
of Administration, Iowa Junior
Bankers Association; assistant
cashier, Citizens National Bank,
Boone.
Remarks—Frank Warner, sec
retary, Iowa Bankers Associa
tion, Des Moines.
Committee reports. Resolutions.
Recess. Visiting. The club
rooms are available for all who
wish to use them.
6:15 Banquet — Dining room, The
Women’s Quadrangle.
7:30 Dinner completed. Music and
entertainment, Herrick Chapel,
Grinnell College.
7:45 Organ recital.
8:05 Address—Dr. Samuel N. Stev
ens, president, Grinnell College.
8:35 Choral groups.
9:00 Adjournment.

Women’s Quadrangle, Grinnell College.
P. M.
2:30 Conducted tour of college build
ings.
4:00 Tea — Women’s Lounge, Loose
Hall.
6:15 Banquet — Dining room, The
Women’s Quadrangle.
7:45 Music and Entertainment —
Herrick Chapel, Grinnell Col
lege.
Luncheon can be obtained if desired
at the Student Union after 1:00 p. m.

Retires from Bank
E. E. Everett, vice president and
director of the Farmers State Savings

Bank at Independence, Iowa, retired
last month. He had been associated
with the Independence bank for 15
years. He first entered the banking
business in 1899, then served in vari
ous banking capacities in several
banks.

Moves to Andrew
Grant Schmidt, deputy clerk of the
district court in Jackson county, has
resigned that post to become assistant
cashier of the Andrew Savings Bank,
Andrew, Iowa.
He has been associated with the
clerk’s office for the last two years.

Full Speed Ahead
to the meeting of
f~*

r 1

broup b

W hen bankers of Group 6 reach Grinnell W edn es
day, M ay 11, for their Annual Group Meeting, they
will find

prosperous Iowa town

with every

member of the Poweshiek County Bankers Associ
ation eager to please them.

A fine program has

been arranged, so let's all attend!

Grinnell—Wednesday, May 11
POWESHIEK COUNTY BANKERS ASSOCIATION
Poweshiek County Savings Bank, Brooklyn
Poweshiek County National Bank, Grinnell
Grinnell State Bank, Grinnell
Hartwick State Bank, Hartwick
Montezuma State Bank, Montezuma
Peoples Savings Bank, Montezuma

Ladies' Program
Headquarters and lounge for the la
dies will be the drawing room of The

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

Northwestern Banker, May, 1949

Iowa News

O ttum w a is fíiff in d u stria l C en ter

Strengthen Your
Doubtful Risks
With Lawrence
Receipts
J u d g e d by its prevailing risk
criterion, a bank’s p o rtfolio
contains many loans on open
account which may well be
placed on a secured basis.

Lawrence warehouse receipts,
issued on the borrower’s inven
tory, will protect the lender with
fundamentally sound collateral.
New” Small Business” Depart
ment now extends Lawrence
service to inventories valued as
low as $5,000.
Lawrence warehouse receipts
are supported by the strongest
financial statement in the field
warehouse industry. Lawrence
has always discharged, in full,
its liability to all holders of
Lawrence Warehouse receipts.
Lending institutions have
profited with Lawrence field
warehousing in dealing with
more than 20,000 business
firms, over a period of 35 years.
Booklet Gives Field W arehouse Facts
Tells how Lawrence
field warehousing
makes secured credit
possible for accounts
in your portfolio.
W rite for free copy,
"Borrow ing on
1
Inventory.”

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Com pany
N a t i o n w i d e Field W a r e h o u s in g
DIVISION

OFFICES:

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7 2 W a ll St.

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1 0 0 N. La S a lle St.
Los A n g ele s • Boston • P h ila d e lp h ia • Pittsburgh
B u ffalo • C le v e la n d • C in cin nati • K a n s a s C ity
St. Louis • A tlan ta
•
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Portland • S e a ttle • S p o k a n e • Stockton • Fresno
W ashing to n , D. C . • M a n ila , P. I.

Northwestern Banker, May, 1949

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

VISITORS TO OTTUM W A find it convenient to make use o f their modern
municipal airport, served daily by scheduled airlines. The city is also served by
four major railroads and two federal highways.

TTUMWA is a city of 40,000 peo
O
ple, located in the rich agricul
tural southeast section of Iowa, on
two main highways, numbers 63 and
34. This is where Group 10 bankers
will meet Thursday, May 12th.
It is the county seat of Wapello
county and the center of industry in
southeastern Iowa. Its industrial ac
tivity started when a grist mill was
built on a land grant on the bank of
the Des Moines River east of the foot
of Market Street by John Myers, David
Armstrong and T. C. Coffin, although
a small brick plant was started by
Thomas Sinnamon about the same
time.
From that modest beginning Ot
tumwa has grown to the place that
its products are used all over the
world.
MorreSS's a Leader

With John Morrell & Company as
leading meat packers and as Ottum
wa’s largest individual industry its
manufacturing plants turn out poultry
equipment, farming implements, min
ing tools, foundry products and pat
terns, various industrial and carpen
ter tools and equipment with brick
and tile, cement blocks and building
materials. Ottumwans are busy with
industrial activities and yet Ottumwa
is known as a “friendly city.” Ottum
wa has progressive retail merchants,
churches of all denominations, ample
railroad, bus and transportation facili
ties. Industrial tours through the man
ufacturing plants of Ottumwa acquaint
the school children for miles around
and over the trade area, as well as
business men from other communities,
with the products manufactured in the
city.

You will find a dozen parks, equipped
for all-day outings, or fleeting mo
ments of relaxation, golf courses and
swimming pools. Ask any Ottumwan
for directions. He will be glad to
play host in cooperation with the bank
ers of Wapello county.

Group 10 Program— May 12
OTTUMWA
A. M.
10:00 Visiting and Registration—Ho
tel Ottumwa (registration fee
$4.00).
P. M.
12:15 Luncheon—Hotel Ottumwa.
1:30 Meeting Called to Order —
George R. Garton, chairman.
Group 10, I.B.A.; president,
First State Bank, Chariton.
Invocation — Rev. Harold J.
Drown, D.D., pastor, First Pres
byterian Church, Ottumwa.
Address of Welcome—Herschel
C. Loveless, mayor, city of Ot
tumwa.
Response to Address of Wel
com e— S. H. Watkins, presi
dent, Iowa State Bank, Stockport.
Talk — H. W. Schaller, presi
dent, Iowa Bankers Associa
tion; president, Citizens First
National Bank, Storm Lake.
Talk—N. P. Black, State Super
intendent of B a n k i n g , Des
Moines; president, Perry State
Bank, Perry; president, Dallas
County Savings Bank, Minburn
Address—Nathan Howard Gist,
humorist, inspirational speaker
and columnist, New York City.
Remarks — Frank Warner, sec-

Iowa News
retary, Iowa Bankers Associa
tion, Des Moines.
Report of committees.
Adjournment.

th * s M o i n e s
EVERAL Des Moines bankers at
tended out of town banking con
ferences last month.
Herbert L. Horton, president, and
Albert J. Robertson, vice president,
both of the Iowa-Des Moines National
Bank, and James W. Hubbell, chair
man of the board of Bankers Trust
Company, attended the Reserve City
Bankers meeting at French Lick
Springs, French Lick, Indiana.
Mr. Horton, Harold P. Klein, vice
president, Iowa-Des Moines National
Bank, and A. T. Donhowe, vice presi
dent, Central National Bank and Trust
Company, attended the A.B.A. Spring
Council Meeting which followed at
French Lick Springs.

Company, won the money counting
contest and $10. He counted $378.72
in mixed coins correctly in one min
ute, 27 seconds. Other winners were,
Frank Haag, Bankers Trust Company,
second and $7.50, and A1 Rodine, IowaDes Moines National, third and $5.
In the adding machine contest for
employes having two years or less ex
perience, Earl Freel, Bankers Trust,
first and $5, Bill Boyer, Capital City
State, second and $3.
E. Harold Carlson, Central National,
won $5 for guessing within seven
cents of the amount of money in a
glass jar containing $27.57 in coins.
Prizes were presented by John B.
Monahan, president of the Des Moines

A beautiful Spring Flower Show,
“Song of Spring,” will be held in the
banking rooms of the Iowa-Des
Moines National Bank on May 13th

and 14th. The show is sponsored by
the Flower Arrangement Group of the
Des Moines Garden Club and will be
open to the public from 9:30 a.m. to
9:00 p.m. on May 13th and from 9:30
a.m. to 12:00 noon on May 14th.
Mrs. Robert Hewitt, whose husband

is a teller at Valley Bank and Trust
Company, is visiting her former home
in England. The Hewitt’s were mar
ried there when Mr. Hewitt was serv
ing overseas in World War II.
The Des Moines chapter of the
A.I.B. held its annual adding machine
and money-counting contest l a s t
month at the Central National Bank
and Trust Company.
Winner of the $15 first prize in the
adding mac hi ne competition was
Arnold B. Dressier of the Central Na
tional’s credit department. He ran
150 checks correctly in two minutes
and two-fifths of a second.
Joe Manz, Bankers Trust Company,
won second place and $10; Jim Mathis,
Capital City State Bank, third and
$7.50; Paul Griffith, Bankers Trust
Company, fourth and $5, and Jane
Byers, Central National, fifth and $3.
Austin Graybeal, Bankers Trust

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Federal Reserve Bank of St. Louis

chapter, and assistant cashier at the
Bankers Trust Company.

Norway Banker Retires
Dr. E. M. Williams has resigned as
president of the Benton County Sav
ings Bank of Norway, Iowa. For 28
years Dr. Williams was a director, 16
of which he served as president.
Dr. Williams has moved to Tucson,
Arizona, where he intends to make his
future home.
To fill the vacancy, H. O. Schloeman,
formerly vice president, has been
elected president, and John C. Schulte,
vice president. Prentiss G. Folvag has
been elected a director and will con
tinue as cashier.

Group Ten M ee tin g

Forty girls on the staff of the Bank
ers Trust Company attended a dinner
and theater party last month. Dinner
was served at Younkers Tea Room,
then the group went to KRNT Theater
to see the stage production “ High But
ton Shoes.”

To Offer Wealth of Ideas
Bankers attending the Group Ten
meeting to be held in Ottumwa on
Thursday, May 12th, will take home
many worthwhile ideas which they
can put to use in their bank through
out the year.
An

outstanding

program

now

being planned by the officers of the
Wapello

County

Bankers

Associ

ation. so be sure to attend.

OTTUMWA
THURSDAY, MAY

Members of the Wapello County Bankers Association

First National Bank, Eldon
Farmers and Merchants Savings Bank, Ottumwa
Fidelity Savings Bank, Ottumwa
South Ottumwa Savings Bank, Ottumwa
Union Bank & Trust Company, Ottumwa

Northwestern Banker, May, 1949

Iowa News

Now With Audubon Bank
A1 Hochberger, assistant cashier at
the Cresco Union Savings Bank, has
been appointed cashier of the First
State Bank of Audubon, Iowa.
Mr. Hochberger has had 17 years’
banking experience. He attended Up
per Iowa University and worked in
banks in Fayette and Union counties.
He was Howard county treasurer four
years and was with the U. S. Banking
Department’s receivership service in
1933-34. He was president of the
Cresco Chamber of Commerce last year
and active in civic affairs.
Vice President A. A. Kruse had been
serving as cashier of the First State
Bank, but relinquished these duties.

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Northwestern Banker, May, 1949

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Federal Reserve Bank of St. Louis

Correction, Please!
The cooperative exhibit of a model
town entitled, “ Your Bank Helps You
Buy, Build and Grow,” is to be shown
at the All Iowa Fair and not at the
State Fair in Des Moines, as reported
in the April issue of the N o r t h w e s t e r n
B anker.
This display, and a story
about its support by Cedar Rapids’ five
banks, appeared in that issue.

Group 8 Program— May 13
TIPTON

A. M.
10:00 to 1:45 Registration — Tipton
Golf and Country Club ($5.00
per person). Program, social
hour, dinner, dancing.
12:30 Dutchtreat Luncheon — Club
house ($1.25 per plate). (Ad
vance reservation to Tipton
State Bank by May 10th.)
P. M.
2:00 Afternoon Program — Tipton
School Auditorium.
2:00 to 2:45 Special musical enter
tainment (numbers announced
at time of presentation).
Welcome — L. C. Rummells,
president, Cedar County Bank
ers Association.
Invocation—Rev. Raymon Fer
guson, pastor, First Presbyte
rian Church, Tipton.
Remarks and Introduction of
Speakers—E. L. Wegman, chair
man, Group 7, Iowa Bankers
Association.
Talk — H. W. Schaller, presi
dent, Iowa Bankers Associa
tion; president, Citizens First
National Bank, Storm Lake.
Talk—N. P. Black, State Super
intendent of Banking, D e s
Moines; president, Perry State
Bank, Perry; president, Dallas
County Savings Bank, Minburn.
Address — “The Final Test of
Democracy,” Nathan Howard
Gi s t , humorist, inspirational
speaker and columnist, New
York City.
Remarks—Frank Warner, sec
retary, Iowa Bankers Associa
tion, Des Moines.
Introductions — Chai r man,
Group 8 Council of Administra
tion, Iowa Junior Bankers As
sociation. Other visiting bank
ers and notables.
4:30 Return to Tipton Golf and
Country Club.
4:45 to 5:45 Social Hour. Guests of
the Cedar County Bankers As
sociation.
6:00 to 7:00 Buffet Dinner—Special
musical numbers, “ Doc” Lawson and his electric organ.
Dancing — Country Club Privi
leges—Fun.

Iowa News

N ew Tipton ('Inb Open to T r o o p It

the faculty to broaden its curriculum.
The addition, when built, will provide
a year around swimming pool, a longneeded recreational facility.
The school has been written about
and commended highly in national
magazines. It was pictured and writ
ten up extensively in one issue of
Victory magazine, published under the
direction of the U. S. Office of War
Information, and distributed only in
countries occupied by the emeny and
allied forces during World War II.

Educational Center

THE TIPTO N GOLF AND COUNTRY CLUB, meeting place for bankers of
Group 8, affords a wide-range view o f the rich farm land and beautiful country
side surrounding Tipton.

EADQUARTERS for Group 8 bank
ers will be in the beautiful new
H
club house of the Tipton Golf and
Country Club. All facilities of the
club will be at the disposal of bankers
and friends for the entire day and
evening of Friday, May 13th.
The $35,000 club house was opened
in mid-winter for private parties and
dinners, and has been in use several
times weekly since. It was built for
year around use and the rambling onestory and basement structure’s popu
larity has amazed even club officials.
It is located on a high elevation onehalf mile southwest of Tipton, and
affords a wide range view of the sur
rounding countryside, which is per
haps prettiest at this time of year.
The new club house contains a
lounge at one end and a dining room
at the other. The kitchen, stairs and
lobby are in the center of the first
floor and card rooms, recreation rooms
and locker rooms with showers are in
the basement. The club property in
cludes 51 acres of rolling land on which
a nine-hole golf course is laid out.
Since the club is the only one of its
type in the county, it attracts members
from other communities outside of
Tipton. Its 250 members include some
from Stanwood, Clarence, Mechanicsville, Lowden and West Branch.
Tipton, Cedar county seat, is per
haps best noted for its progress in
education. The bankers’ afternoon
program will have its setting in the
public school auditorium in the build
ing erected in the late 20’s.
The district (75 square miles) which

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the school serves, is one of the largest
in the United States. Only last Octo
ber citizens of the district voted a
$425,000 bond issue for an addition to
relieve over-crowding and to enable

Tipton has been a leading school
center of the state for more than 100
years. The first regularly graded free
school west of the Mississippi River
was located here. The original build
ing has been rebuilt into a residence
and is in use as such today.
Industry located in the host city in
cludes one of two divisions of Honeymead, Inc., manufacturers of protein
feeds; a new Seven-Up Bottling Com
pany plant, and a cheese factory owned
and operated by Hygrade Food Prod
ucts.
Of course, Cedar county is one of
the best agricultural counties in the
state, always high in production of
grain and livestock. The county ranks
first in the state and second in the
nation in hog production.

FRIDAY THE 13th

Will Be Your Lucky Day
This will be especially true if you make sure to attend the Annual
Meeting of Group 8 to be held in Tipton on Friday, May 13tli.
The bankers of Cedar county extend a warm invitation to their
friends in Group 8 and throughout the state of Iowa to join
them in their meeting, designed to discuss new ideas and mutual
problems.
"Phis will be a fine meeting so remember the time and place . . .

GROUP 8— TIPTON— MAY 13
CEDAR COUNTY BANKERS ASSOCIATION
Bennett State Bank, Bennett
Clarence Savings Bank, Clarence
Liberty Trust & Savings Bank, Durant
American Trust & Savings Bank, Lowden
Mechanicsville Trust & Savings Bank, Mechanicsville
Union Trust & Savings Bank, Stanwood
First National Bank, Tipton
Tipton State Bank, Tipton
First State Bank, West Branch

Northwestern Banker, May, 1949

Iowa New s

at one o’clock, with an afternoon of
bridge at the Okoboji Club. Transpor
tation will be provided for the ladies
not having their own cars from the
Antlers to the Okoboji Club and back
to the Antlers after the bridge party.
There will be no evening dinner or
program.

Group 2 Program— May 14
SPIRIT LAKE
P. M.
1:00 Luncheon—Templar Park Hotel.
Invocation — Rev. Ralph Baker,
pastor, Methodist Church. Spirit
Lake.
Meeting called to order by G. E.
Alexander, president, Farmers
National Bank, Webster City;
chairman, Group 2.
Address of Welcome — Judge
Harry E. Narey, Spirit Lake.
Talk—H. W. Schaller, president,
Iowa Bankers Association: presi
dent, Citizens First National
Bank, Storm Lake.
Talk—N. P. Black, State Super
intendent of B a n k i n g , Des
Moines; president, Perry State
Bank, Perry; president, Dallas
County Savings Bank, Minburn.
Address—“ So This Is America,”
Art Briese, humorist, writer and
public relations counselor, Hot
Springs, Arkansas.

TEM PLAR PAR K , located at Spirit Lake, Iowa, will be the scene of Group
2’s annual meeting on Tuesday, May 24th. It is located in Iow a’s “ Great Lakes”
area and is a showplace in that section of the state.

HEN bankers of Group 2 and oth
er bankers from outside points
W
converge on Templar Park, Spirit

known to thousands of vacationists
and tourists for that reason. It is also
situated in a splendid farm area, one
of the most prosperous parts of the
great state of Iowa.
The committee for the Group 2 pro
gram points out,that the meeting will
begin at one o’clock with luncheon at
the Templar Park Hotel. The pro
gram will follow immediately after
the luncheon, with adjournment after
the program.
Registration will be at Templar Park
for the men and at the Antlers Hotel
in Spirit Lake for the ladies.
Arrangements have been made for a
ladies’ luncheon at the Antlers Hotel

Lake, for their annual meeting on
Tuesday, May 24th, they will find a
wonderful program and splendid hosts.
Members of the Dickinson County
Bankers Association will be hosts for
the meeting and they include the fol
lowing banks: Security State Bank,
Lake Park; Dickinson County Savings
Bank, Milford; First National Bank,
Spirit Lake, and State Bank of Terril.
Group 2 is fortunate in having such
a lovely place for the meeting. Temp
lar Park is, of course, located in Iowa’s
beautiful “Great Lakes” area and is

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RECEIPTS issued by WILLIAM H. BANKS WAREHOUSES, INC., representing
inventories stored right on the borrower's own premises.
Dave Coffman and Jim Fletcher will be attending the group meetings of the
Iowa Bankers Association held during May and will be very happy to discuss
our service with you.
They will appreciate the opportunity of a visit with you.

DIVISION OFFICES

Des Moines, Iowa

★

St. Louis, Mo.

Grand Rapids, Mich.

Banker, May, 1949
Digitized for Northwestern
FRASER
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Federal Reserve Bank of St. Louis

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Fayetteville, Ark.

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Angola, Indiana

W eslaco, Texas

WILLIAM H.BANKS WAREHOUSES

Iowa News
Remarks—Frank Warner, secre
tary, Iowa Bankers Association,
Bes Moines.

Ladies' Program
Registration at Antlers Hotel,
Spirit Lake.
1:00 Luncheon—Antlers Hotel. Spirit
Lake.
Bridge party at the Okoboji
Club on West Okoboji Lake fol
lowing the luncheon. Transpor
tation will be furnished by the
Spirit Lake Chamber of Com
merce for ladies not having their
own cars, from the Antlers Ho
tel to the Okoboji Club and re
turn to the hotel after the bridge
party.

Mr. Schaller is chairman of the
board of directors of the Citizens First
National Bank there. In 1902, he and
his father, Fred Schaller, organized the
Citizens First National Bank, whose
present assets total $8,000,000. He be
came president of the bank on his
father’s death in 1922 and served in
that capacity until going to Chicago
in 1934. Since his return here in 1941,

Are Worth Exchanging

Members from more than a dozen
cities of eastern Iowa and western
Illinois attended a meeting of the Mis
sissippi Valley Conference of the Na
tional Association of Bank Auditors
and Comptrollers in Clinton, Iowa, last
month.
D. J. McDonald, assistant auditor of
the Northern Trust Company, Chicago,
spoke on “Defeating Defalcations.” He
was introduced by Frank Haun, as
sistant cashier, City National Bank of
Clinton, vice president of the confer
ence. Clarence Klingbiel, Moline, pres
ident. presided. Louis Martin, cashier,
First Trust and Savings Bank of Dav
enport. is secretary.
Sixty-two persons attended the meet
ing. which began with a dinner. The
conference has members in 18 cities.
The next meeting will be held May
12th in Muscatine.

Join Banking Department

Yes, ive can profit from our neighboring banker s
experiences, so let’s all join together at Templar
Park ( Spirit Lake) for the Annual Meeting of Group
Two.

Group

Dickinson County bankers have arranged a splendid

make Tuesday, May 24th, a day of profit and pleasure
by attending the meeting.
M EM BERS OF D IC K IN SO N C O U N T Y
B A N K E R S A SSO C IA T IO N
Security State Bank, Lake Park
Dickinson County Savings Bank, M ilford

50th Wedding Anniversary

Mr. and Mrs. George J. Schaller ob
served their 50th wedding anniversary
April 5th with a quiet reception for
friends and relatives at their home in
Storm Lake, Iowa.

First National Bank, Spirit Lake
State Bank o f Terril, Terril

Did you know that our Cash Letter P olicy not only
gives protection but enables you to cut operat
in g expenses substantially. A sk us fo r
details. Y ou w ill not obligate
yourself.

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Federal Reserve Bank of St. Louis

Tuesday, M ay £ 4

program for this occasion and hope that you will

E. B. Wilkinson has been appointed
examiner and Paul G. Sandhorst as
sistant examiner in the Iowa State
Banking Department.
Mr. Wilkinson formerly was cashier
of the Henry County Savings Bank in
Mount Pleasant and prior to that time
had served as examiner with the de
partment for seven years. Mr. Sand
horst is from Atlantic.

B U I L D IN G

Mr. Schaller has been chairman of the
board.
The Schallers were married April 5,
1899, at Rock Valley, Iowa. They have
two living children, Mrs. W. Lyon and
Harry Schaller, both of Storm Lake.
Harry Schaller is president of the
bank and is president of the Iowa
Bankers Association, a position his
father held in 1928.

Money Making Ideas

Bank Auditors Meet

F IR S T N A T IO N A L B A N K

C H IC A G O

Scarborough & Company
Insurance Counselors
3,.I L L I N O I S

•

STATE!

to Banks

4325

Northwestern Banker, May, 1949

Iowa

News

Uroup

W ill M e e t in M a so n Vitti

f
y

A MODERN AIRPORT, up -to-date radio and newspaper plants, progressive business houses and good distributorship fa
cilities are among the many reasons why Mason Cityans are proud to welcome visitors to their city. The picture at left
above shows the christening of the Mid Continent Airlines “ City of Mason City.” In the other picture is shown the modern
building housing radio station KGLO’ s transmission equipment. Bankers attending the Group 3 meeting in Mason City on
Wednesday, May 25th, will have an opportunity to see the many outstanding features o f Mason City’ s business and civic* life.

ASON CITY is located in the heart
of the richest agricultural region
M
in the world, 80 miles from any other
city of comparable size. It is the natural center for industry, commerce,
education and recreation for a large
area in north central Iowa and south
ern Minnesota. Here you will find the
advantages of the great city, plus the
friendly freedom of the small town.
Mason City is easy to reach by rail,
road or air, and has modern accom
modations to suit every taste and pocketbook. Here cross U. S. Highways 18

and 65, making it a gateway to the
great resort country of the northwest.
Modern trains, trucks and buses oper
ate over a network of paved roads and
over five trunk line railroads, radiating
in eleven directions.
The new million dollar Class IV mu
nicipal airport is the capstone of this
system of modern transportation and
distribution facilities. Mid-Continent
Airlines operate regular north-south
service “ From Pine to Palm.” Eastwest service has been applied for. An
up-to-date city bus system provides ex

cellent local transportation.
It’s a city of good homes, friendly
people, diversified commerce and in
dustry.
The natural facilities for wholesale
distribution which developed early at
Mason City resulted in a rapid and
continued growth as a jobbing center.
The 1939 census showed 80 distribut
ing houses with 619 employes and an
annual business of $18,535,000. Today
that volume has increased to more
than $45,000,000 and employs 800 men
and women. Although ninth in popu-

SPECIA LIZIN G

No matter what the size, or the

AUTOMOBILE
FIRE
WINDSTORM

specific need, of your Chicago account, we are
equipped to provide a complete banking serv
ice, promptly and efficiently. Any and all of
our services are at your disposal.

i t y

a t io n a l

a n k

A N D T R U S T C O M P A N Y o f C h ica g o
208

SOUTH

(.M E M B E R

FEDERAL

LA S A L L E
D E P O SIT

STREET

IN SU R A N C E

IN S U R A N C E

CORP .)

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

O. T. WILSON
Secretary

Established in 1929

Northwestern Banker, May, 1949

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Federal Reserve Bank of St. Louis

Iowa News
lation. Mason City is seventh in vol
ume of wholesale business.
To Mason City a wide area looks for
financial and commercial leadership.
Its banks have deposits of over $32,000,000 and two building and loan asso
ciations have more than $2,500,000 re
sources.

Group 3 Program— May 25
MASON CITY
Morning—10 A. M.
Visiting and Registration—Hotel Han
ford. Registration fee, $5.00.
12 Noon
You will find a number of excellent
eating places in Mason City.
1:30 P. M.
Meeting Called to Order—M. J. Klaus,
chairman, Group 3; president, First
Security Bank & Trust Company,
Charles City.
Invocation—Dr. Lloyd A. Gustafson,
pastor. First Methodist Church. Ma
son City.
Address of Welcome—Hon. Howard E.
Bruce, mayor of Mason City.
Response to Address of Welcome—E.
A. Heiden, executive vice president,
Osage Farmers National B a n k .
Osage.
Appointment of Committees—
(a) Nominating.
(b) Resolutions.
Talk—H. W. Schaller, president, Iowa
Bankers Association; president, Citi
zens First National Bank, Storm
Lake.
Talk—N. P. Black, State Superintend
ent of Banking, Des Moines; presi
dent. Perry State Bank, Perry; presi
dent, Dallas County Savings Bank,
Minburn.
Bank’s Relationship to the Public
Talk—Ward R. Hamilton, president,
Hamilton School of Commerce, Ma
son City.
Talk—C. W. Conn, chairman, Group 3
Council of Administration, I o w a
Junior Bankers Association, vice
president, Union-Whitten State Sav
ings Bank, Union.
Reports of Committees—
(a) Nominating.
(e) Resolutions.
Remarks — Frank Warner, secretary,
I o w a Bankers Association, Des
Moines.
5:30 to 6.45 P. M.
Social Hour—Pine Room, Hotel Han
ford.
7 P. M.
Dinner — Wedgewood Room, Hotel
Hanford.
• Duplicate bank deposit books
• Tellers cash tickets

N e b r a/ s kSaINC
. ESIM
aSl e s b o o k
KsOTJTflCLrvy'
Lincoln

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Federal Reserve Bank of St. Louis

Address—“ Hell-Bent for Election,” Art
Briese, humorist, writer and public
relations counselor, Hot Springs,
Arkansas.
For the Ladies
Special entertainment has been pro
vided for the ladies, so bring them
along.
Officers of Group 3
M. J. Klaus, chairman, Charles City;
Raymond C. Keister, secretary, Mason
City.
Officers
Cerro Gordo County Bankers Asso
ciation— Roy B. Johnson, president,
Mason City; L. W. Sherman, vice pres
ident, Clear Lake; W. Howard Stewart,
secretary, Mason City.

New Closing Hours
Dallas county banks will close a half
day a week, beginning in May, accord
ing to an announcement made last
month by the Dallas County Bankers
Association.
The Brenton State Bank of Dallas
Center, Iowa, and its offices at Granger,
Waukee and Woodward, the Dallas
County State Bank and offices at Adel,
Dexter, Redfield and Van Meter, and
the Dallas County Savings Bank at
Minburn will close each Saturday aft
ernoon at 12, beginning May 7th.
The First National Bank and the
Perry State Bank, both of Perry, will
close each Thursday afternoon at 12,
beginning May 5th.

MASON CITY

WEDNESDAY

GROUP 3

M AY 25

MASON CITY
Wednesday. May 25
Bankers of Cerro Gordo County and Mason
City are most happy to have bankers of Group
Three meet with us W ednesday, M ay 25th, in
Mason City.
W e want you to have a very pleasant and
profitable meeting.

W e are planning a fine

program and we hope that you will make it
possible for us to have a fine attendance.
MEMBERS OF THE CERRO GORDO COUNTY
BANKERS ASSOCIATION
Clear Lake Bank & Trust Co., Clear Lake
First National Bank, Mason CityUnited Home Bank & Trust Co., Mason City
Farmers Savings Bank, Rock Falls
First State Bank, Thornton
Ventura State Bank, Ventura
Manly State Bank, Plymouth Branch
Sheffield Savings Bank, Dougherty Branch

Nebraska

Northwestern Banker, May, 1949

Iowa News

N ew H a m pton W e lc o m e s tìroup 4

A
4

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Minneapolis 1, Minn.
St. Louis 10, Mo.
Des Moines 14, Iowa

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A d d r e s s in g b y h a n d or
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Addressaqraph
w
m\9
9

T
EVIDENCE OF NEW HAM PTO N ’S modern facilities is the 60-bed
hospital (above) which takes excellent care of people from that city and
surrounding communities. Bankers of Group 4 in northeastern Iowa will
be in New Hampton for their annual meeting Thursday, May 26th, and
all sessions will be in the new $75,000 American Legion Home.

EW HAMPTON, the scene of the
Group 4 meeting on May 26th, is
N
the county seat of Chickasaw county.

than $5,000,000. Its modern post office
was built in 1938, and it is classified
by the department and operates as a
first-class office.

It has a population of 3,500 and is
situated in the heart of the northeast
Iowa dairy district. In every pub
lished report it ranks at the top in
retail sales tax returns for cities of its
size. Its business places are modern
and attractive.
Main lines of the Milwaukee and
Great Western Railroads intersect in
the city, as do U. S. highways 63 and
18, and state highway 24. It has ex
cellent bus connections in every di
rection. Two years ago a new mu
nicipal airport was completed. The
city’s municipally-owned light, water
and steam plant is completely up-todate, being just recently repaired and
modernized. A year ago the city com
pleted a street surfacing program.
A new high school was completed in
1940 and, in addition, the city has
three grade schools. Churches of al
most every denomination serve the
community. The city maintains a
first-class public library.
New Hampton’s 60-bed capacity hos
pital is approved by the American Col
lege of Surgeons, and the staff includes
nine doctors, as well as trained tech
nicians. The two banks of the city,
the First National and the Security
State, have resources totaling more

Group 4 Program— May 26
NEW HAMPTON
1:15 P. M.—Fireman’s Theatre
Meeting Called to Order — Vincent
Kelly, president, State Bank of Law
ler; president, Chickasaw County
Bankers Association.
Remarks—Joe Menges, cashier, Alta
Vista State Bank; chairman. Group
4.
Address of Welcome—E. P. Donohue,
attorney, New Hampton; director,
Security State Bank, New Hampton.
Response — W. A. Kneeland. cashier,
Postville State Bank.
Remarks — W. W. Blasier, president,
Farmers State Bank, Jesup; former
president, Iowa Bankers Association.
Talk—N. P. Black, State Superintend
ent of Banking, Des Moines; presi
dent, Perry State Bank, Perry; presi
dent, Dallas County Savings Bank,
Minburn.
Talk—Francis Kutish, associate profes
sor of economics, Iowa State College,
Ames; managing editor, Farm Policy
Forum, Ames.
Talk—F. E. Breekner, cashier. Ameri
can National Bank, Arlington: Iowa
Junior Bankers Association.
Address—“ The International Situation

MARQUETT E

-i

r
-k

BANK

TRADE M ARK REG U S P A T O f ‘

O M A H A — DES M OIN ES
D AVEN PO RT
Banker, May, 1949
Digitized forNorthwestern
FRASER
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Federal Reserve Bank of St. Louis

OF
' THE

STRONG
MEMBER

MINNEAPOLIS

FRIEND
FEDERAL

THE

DEPOSIT

INDEPENDENT

INSURANCE

BANKER’

CORPORATION

Iowa News
Today,” James 0. Babcock, formerly
Administrative Attache, U. S. Em
bassy in Greece; former colonel, U.
S. Army, retired because of combat
injuries; Deputy Director of Labor
in Italy following war.
Remarks — Frank Warner, secretary,
I o w a Bankers Association. Des
Moines.

Agricultural Credit
School June 13-24
The 4th Annual Agricultural Credit
School jointly sponsored by the Iowa
State College at Ames and the Iowa
Bankers Association will be held from
June 13th through June 24th.
The curriculum this year is again
built more around the subject of agri
cultural credit and contains less of
general agricultural courses as the
school did the first two years.
Planning for the 1949 two-week
school has been largely done by Dr.
W. G. Murray and Professor Herbert
B. Howell of the college, and by the
Iowa Bankers Association’s agricul
tural credit school committee, which
is headed by Chairman W. A. Lane,
president. Security Savings Bank of
Marshalltown; Vice Chairman K. J.
McDonald, president, Iowa Trust and
Savings Bank, Estherville, and Vice
Chairman W. W. Steele, Steele State
Bank. Cherokee.
Registrations for the credit school
are being accepted at the college at
the present time. Enrollment fee is
$40 for the course. The 1948 class
had 39 persons enrolled and it is an
ticipated there will be more than that
in the 1949 school. Out-of-state appli
cations for enrollment can also be ac
cepted for the course.

Atlantic, Iowa, at a recent monthly
meeting of the board. Mr. Kelloway
replaces the late Howard A. Marshall
on the board.

Opens in Fort Dodge
The new Union Trust & Savings
Bank opened in Fort Dodge, Iowa, last
month.
The bank is a continuation of the
former Burnside Savings Bank and
was established by changing the name
and location and increasing the stock
and number of directors. It is capital
ized at $150,030, with surplus of $50,000 and undivided profits in excess of
$50,000.
Officers include: Dr. B. F. Beeh, pres

y jo

ident; A. H. Johnson, vice president,
and O. B. Lundgren, cashier. Direc
tors are: Dr. Beeh, Mr. Johnson, Mr.
Lundgren, Herbert J. Horn, R. E.
Kautzky, W. F. Adams and Wesley
Sandell.
Offices are being maintained in Burn
side and Lehigh.

Named Education Head
Roy A. Sweet, vice president and
cashier of the Story County State
Bank. Story City, Iowa, was elected
president of the Story county board of
education at the organization’s meet
ing last month. His term of office is
for two years.

Thursday, May 26, bankers from Chickasaw
County

cordially

welcome

the

bankers

Group 4 and their friends to their annual meet
ing to be held in New Hampton.
It will be profitable and packed with information
on modern day banking problems so remember
the time and place . . .

Fred Loomis Retires
The retirement of Fred L. Loomis
as president and director of the State
Bank of Fort Dodge, Iowa, was an
nounced last month. He was an or
ganizer of the institution and has been
its president since its incorporation in
1934.
Donald Vincent, who has been vice
president and a director of the bank,
succeeds Mr. Loomis as president. Al
len R. Loomis, son of the retiring pres
ident, was elected to the board of di
rectors.

Elected Director
E. A. Ivelloway, executive vice presi
dent of the Walnut Grove Products
Company, was elected a director of the
Whitney Loan & Trust Company Bank.

Group 4—New Hampton—-May 26
CHICKASAW COUNTY BANKERS ASSOCIATION
Alta Vista State Bank, Alta Vista
First State Bank, Fredericksburg
Ionia Savings Bank, Ionia
State Bank of Lawler
First Nashua State Bank, Nashua
First National Bank, New Hampton

Security State Bank, New Hampton
YOUR STATE BANKERS ASSO CIATIO N
O FFICIA L SA FE, V A U L T AN D
TIMELOCK EXPERTS

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

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Federal Reserve Bank of St. Louis

OMAHA
Northwestern Banker, May, 1949

Iowa

News

W a te r lo o Ms H ost to C roup 7

BUSINESS AND IN D U STRIA L districts are clearly pictured in this aerial
view o f Waterloo. Note the five bridges spanning the Cedar River. Waterloo is
host city to bankers attending the Group 7 meeting on Friday, May 27th. This
city is noted for its great volume of business, industrial output and beautiful
residential districts.

ERE in the lovely valley of the
Cedar lies Waterloo, one of the
H
growing industrial cities of America.
This is the throbbing heartland of a
continent where food from the most
fertile soil in the world is brought to
market and where the products needed

in a rich agricultural area are manu
factured and sold.
Bankers visiting Waterloo during
the Group 7 meeting will find a retail
business district that plays merchant
to northeast Iowa, a convenient shop
ing spot for 500,000 people within easy
traveling distance. Greater Waterloo
itself has a population of about 77,000
residents.
Industrially, Waterloo is the number
one city in Iowa; manufacturing valued

IOWA ■LITHOGRAPHING •COMPANY

CORRESPONDENT RANKS

in excess of one hundred million dol
lars annually by the firms of Waterloo
is equalled by only 18 other cities in
the United States west of the Missis
sippi River. Its industry employs 16,841 wage earners in its industrial
plants only. It is the home of the
largest wheel tractor company in the
world and one of the largest independ
ent meat packers in the United States.
Waterloo’s location in one of the most
prosperous agricultural areas of the
nation provides outstanding facilities
for the establishment of new indus
trial, wholesale and distributing con
cerns.
Waterloo is served by four railroads,
five bus companies and thirty-five
trucking firms. Waterloo has the larg
est and one of the finest municipal
airports in the north central states,
with north and south airline service
approved for daily flights between the
Twin Cities and Kansas City by MidContinent Airlines, Inc. We have fast,
adequate transportation facilities.
Three banks serve Waterloo busi
nesses and individuals. They are the
National Bank of Waterloo, the Peo
ples Savings Bank and the Waterloo
Savings Bank, with combined deposits
in excess of $45,000,000.

Group 7 Program— May 27
WATERLOO
Afternoon
Registration—Russell Lamson Hotel.
Meeting Called to Order—Lee Chand
ler, chairman, Group 7; president,
Iowa Savings Bank, Dike.
Invocation — Rev. H. E. Dierenfield,
pastor, First Presbyterian Church,
Waterloo.
Address of Welcome—Paul K. Myers,
secretary, Waterloo Chamber of
Commerce.
Response to Welcome—W. W. Blasier,
president, Farmers State Bank. Jesup; immediate past president. Iowa
Bankers Association.
Talk—H. W. Schaller, president. Iowa
Bankers Association; president, Citi
zens First National Bank. Storm
Lake.
Talk—“A Financial Editor Views the
Banking Business,” Robert P. Van-

Your Interests Are Our Interests:

THE TOY NATIONAL BANK
Member Federal Deposit Insurance Corporation
Northwestern Banker. May, 1949

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

W ATERLOO

W E L C O M E S

Y O U

Bankers o f Black Hawk County and W aterloo extend
heartiest greetings to m em bers o f Group Seven and
other bankers in anticipation o f our annual Group m eet
ing here F R ID A Y , M A Y 2 7 th .

Make this holiday a

day o f profit and pleasure, by com ing to our m eeting.
W e look forward to your arrival, anxious to m ake
new friendships and renew old ones. Come to W aterloo
and enjoy our hospitality.

★

Black Hawk County B ankers
Association
Cedar Falls T ru st and Savings B ank
First N ational B ank, C edar Falls
G ilbertville Savings B ank, G ilbertville
H udson State B ank, H udson
La P orte City State B an k , La P orte City
T h e National B an k o f W aterloo
P eop les Savings B ank, W a te rlo o
T h e W a te rlo o Savings B ank, W a te rlo o

Northwestern Banker, May, 1949

Iowa

News

derpoel,

Dial 2-8303

ELM ER E. M IL L E R
Pres, and Sec.

H U BE R T E. JAM ES
A sst. Sec.

FOR Y O U R E N JO Y M E N T . . .
Listen to the
“ W O R LD OF M U SIC”
K R N T, 1350 KC

1 to 1:30 p.m. Sundays

★

editor,

Chicago

Talk — Walter Carver, agricultural
economist, Federal Reserve Bank.
Chicago.
Talk—N. P. Black, State Superintend
ent of Banking, Des Moines; presi
dent, Perry State Bank, Perry; pres
ident, Dallas County State Bank.
Minburn.
Remarks — Frank W. Warner, secre
tary, Iowa Bankers Association. Des
Moines.
Committee reports.
Evening
Social hour and dinner in the Elks
Club.

Oldest in Des Moines
210 0th Ave.

financial

Herald-American.

OES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

★

Putting “Vitamins” in Correspondent Service
When you request advice or information from the
First National Bank in Sioux City, you receive it
directly and in full. Our officers are anxious to work
with you whole-heartedly, either at your desk or
ours.
This directness puts ''vitamins'' in your
correspondent service.
W e cordially invite your account at the First
Rational Bank in Sioux City.

Talk—“ Pass Me a Billion,” Art Briese,
humorous writer and public rela
tions counselor, Hot Springs. ArkanSclS.

Dumont Bank
Changes Hands
The State Eank of Dumont, Iowa,
wras sold last month to D. D. Bramwell
and Dallas 1VI. Harrison, Sr., Hampton,
and Dallas M. Harrison, Jr., Greene.
New officers of the bank are: D. D.
Bramwell, president; Dallas M. Harri
son, Jr., executive vice president, and
Robert W. Barlow, cashier. Mr. Barlow previously was assistant cashier.
Directors include the Harrisons, D. D.
Bramwell, M. J. Bramwell and J. J.
Harrison.
The bank stock was purchased from
J. A. Barlow, president, and S. G.
Barlow, cashier, both of whom are re
tiring from the bank.
D. D. Pramwell also is president of
the First National Bank in Hampton
and M. J. Bramwell is a director of
the same bank.
The State Bank of Dumont was es
tablished in 1895 by John Barlow. It
has deposits in excess of $1,200,000.

Klaus Named President
M. J. Klaus has been elected presi
dent of the First Security Bank &
Trust Company of Charles City, Iowa,
to succeed the late E. L. Walleser.
Succeeding Mr. Klaus as vice president
is William A. Herbrechtsmeyer, for
merly cashier. Robert L. Harding be
comes cashier. Mr. Klaus joined the
bank in 1919.

Leaves Red Oak Bank
A. G.SAM,Chairman of
J. T.
Grant, President
H. V. Bull, Vice President
W. L. Temple, Assistant VicePresident
J. R. Graning, Cashier

the Board
E. A. Johnson, Assistant Cashier
H. H. Strifert, Assistant Cashier
K. J. Shannon, Assistant Cashier
E. E. Snell, Assistant Cashier

NATIONAL
BANK
in SIOUX CITY
MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

------★
Northwestern Banker, May, 1949

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

★

Gerald J. Spicer last month resigned
his position as assistant cashier of the
Montgomery County National Bank,
Red Oak, Iowa, to become associated
with his father, Vergil A. Spicer, in
the general insurance, income tax,
bookkeeping and real estate business.

Iowa News

cent of bonds sold last year were is
sued through banking concerns.”
As president of the Commercial
State Bank, Mr. Watts has been active
in savings bond affairs since 1941 and
was named a regional director for
Iowa in 1942. He also has served as
a member of the state executive ad
visory committee since 1947, when the
committee was formed.
Mr. Watts is taking an indefinite
leave of absence from the bank and
moving to Washington, D. C., where
he will carry out the duties of his new
savings bonds position.
Last month Herbert L. Horton, pres
ident of the Iowa-Des Moines National
Bank, and state co-chairman of the
U. S. savings bonds division, called a
dinner meeting in Des Moines of the
Iowa savings bonds leaders, including
state, regional and county chairmen,
to focus state-wide attention on the
coming “Opportunity Drive,” which
will open May 16th and continue
through June 30th.
State Director Roger F. Warin an
nounced the state savings bonds quota
was established at 50 million dollars.

Open N ew Stirint/s B on d s B r iv e

N A TIO N AL RECOGNITION came to Charles E. Watts (center) last month
when he was named national director o f the banking and investments section of
the United States Savings Bonds Division at Washington, D. C. Mr. Watts is
also president of the Commercial State Bank at Pocahontas, Iowa.
With him in the above picture, looking over plans for the “ Opportunity Drive”
which opens May 16th, are Roger F. Warin (le ft), state director of the Savings
Bonds Division, and Herbert L. Horton, president of the Towa-Des Moines Na
tional Bank and Iowa state co-chairman of the U. S. Savings Bonds Division.

Named National Director
Charles E. Watts, president, Commerial State Bank, Pocahontas, Iowa,
has been named national director of
the banking and investments section
of the U. S. savings bonds division at
Washington, D. C. The appointment
was announced recently by Vernon L.
Clark, national director of the savings
bonds division.

80
16
44
40
28

B
B a n k o f A m e r ic a ................................................... 30
B a n k o f M o n t r e a l................................................. 68
B a n k e rs R u b b e r S t a m p ..................................... 84
B a n k e r s S erv ice C o m p a n y , In c .. .................. 28
B a n k e r s T r u s t C o m p a n y — D es M o i n 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 . . . . 76
B la c k H a w k C o u n ty B a n k e r s A s s n ......... 83
C
Cedar C o u n ty B a n k e r s A s s o c i a t io n ..........
C e n tra l H a n o v e r B a n k and T r u s t C o .. . .
C e n tra l N a tio n a l B a n k and T r u s t C o .. . .
C e n tra l S ta te s M u tu a l In su ra n c e A s s n .. .
C erro G ordo C o u n ty B a n k e rs A s s n ............
C h a se N a tio n a l B a n k ..........................................
C h ic k a sa w C o u n ty B a n k e r s A s s o c ia tio n
C ity N a tio n a l B a n k and T r u s t C o m p a n y
— C h ic a g o .............................................................
C ity N a tio n a l B a n k and T r u s t C o m p a n y
— K a n s a s C ity ...................................................
C o m m e rc e T r u s t C o m p a n y .............................

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

“ In Iowa alone,” he declared, “92 per

D a v e n p o rt, F . E ., and C o m p a n y ................ 65-81
D a y to n & G e r n o n ................................................... 41
De L u x e C h eck P rin te rs , In c ........................ 70
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 ic k in s o n C o u n ty B a n k e r s A s s o c ia tio n . 77
D ro v e rs N a tio n a l B a n k ..................................... 74

MAY, 1949
A d d r e sso g r a p h S ales A g e n c y ........................
A lle n W a le s A d d in g M ach in e C o rp ............
A llie d M u tu a l C a s u a lty C o m p a n y ...............
A lly n , A . C., an d C o m p a n y ................................
A m e ric a n
N a tio n a l B a n k
and T ru st
C o m p a n y — C h ic a g o .......................................

In announcing Mr. Watts’ appoint
ment. Mr. Clark emphasized the impor
tance of having an experienced banker
to head the banking and investments
section. As an example of the impor
tance of banks in the savings bonds
program, he cited figures compiled in
Mr. Watts’ home state.

C o n tin e n ta l-I llin 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 .................................................
8
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 ... 65
C o u n cil B lu ffs B a n k s .......................................... 69

IN D E X OF
A D V E R TIS E R S

75
9
14
78
79
7
81
78
60
32

F e d e ra l H o m e L o a n B a n k o f D e s M oin e s
F ir st N a tio n a l B a n k — C h ic a g o ......................
F ir s t N a tio n a l B a n k — L in c o ln ......................
F ir s t N a tio n a l B a n k — M in n e a p o lis ............
F ir s t N a tio n a l B a n k — O m a h a ......................
F ir s t N a tio n a l B a n k — St. J o s e p h ...............
F ir s t N a tio n a l B a n k — S io u x C i t y ...............
F ir s t W is c o n s in N a tio n a l B a n k ....................

41
4
62
51
62
65
84
29

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

H
H a r r is T r u s t and S a v in g s B a n k ................. 52
H o m e In su ra n c e C o m p a n y ..............................
5
H o n or R o ll B a n k s of S ou th D a k o t a .......... 56
I

In t e r -S ta te N a tio n a l B a n k .............................
I o w a -D e s M oin e s N a tio n a l B a n k ...............
Io w a L ith o g r a p h in g C o m p a n y ......................
I o w a -N e b r a s k a B a n k D ir e c t o r y .................
Ir v in g T r u s t C o m p a n y .......................................

The object of this drive is to encour
age thrift and increase the holdings
of U. S. savings bonds among individ
ual citizens.
At this meeting Governor William
S. Beardsley, honorary chairman of
the savings bonds division, made an
address. Dr. John S. Nollen, Grinnell,
state co-chairman, presided in the ab
sence of Mr. Horton, who was atending
the Reserve City Bankers Convention
at French Lick Springs.

M a n u fa c tu r e r s T r u s t C o m p a n y ....................
M a rq u e tte N a tio n a l B a n k ................................
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 . . .
M e rc h a n ts N a tio n a l B a n k ................................
M in n eso ta C o m m e rc ia l M e n ’ s A s s n ............
John M o rr e ll and C o m p a n y ...........................
M osle r S a fe C o m p a n y .........................................

N a tio n a l C ash R e g is t e r C o m p a n y ............
N a tio n a l C ity B a n k o f N e w Y o r k ...............
N e b r a s k a S a le sb o o k C o m p a n y ......................
N o r th e rn T r u s t C o m p a n y ................................
N o r th w e s te r n N a tio n a l B a n k .........................

O m ah a N a tio n a l B a n k .................

27
33
79
50
46
23

P o lic y h o ld e rs N a tio n a l L ife In su ra n c e
C o m p a n y .................................
45
P o w e s h ie k C o u n ty B a n k e r s A s s o c ia tio n 71

R e c o rd a k C o r p o r a t i o n ................................... 3 6-37
R o y a l B a n k o f C a n a d a ..................................... 26
S
St. P a u l M e rc u ry In d e m n ity C o m p a n y . . 44
St. P a u l T e rm in a l W a r e h o u s e C o.............. 24
S c a rb o r o u g h and C o m p a n y . . .............. 4 3 -6 7 -8 5
S tock Y a r d s N a tio n a l B a n k — O m a h a . . . . 63
T e n sio n E n v e lo p e C o r p o r a tio n ....................
T odd C o m p a n y ........................................................
T o y N a tio n a l B a n k ..............................................

U n ite d S ta te s N a tio n a l B a n k ........................

L a M o n te , G e o rg e and S o n ................................
3
L a w re n c e W a r e h o u s e C o m p a n y .................... 72
L iv e S tock N a tio n a l B a n k — C h ic a g o . . . . 25
L iv e S to c k N a tio n a l B a n k — O m a h a .......... 66
L iv e S tock N a tio n a l B a n k — S io u x C ity . 54

31
80
45
2
48
34
6

64
88
82
53
10

Iv
K o c h B r o t h e r s ........................................................

80
35
82

r
58

AValters, C h a rle s E ., C o m p a n y .................... 70
W a p e llo C o u n ty B a n k e r s A s s o c i a t i o n .. 73
W e s t e r n M u tu a l F ir e In s u ra n c e C o ......... 42
W h e e lo c k and C u m m in s .................................. 40

Northwestern Banker, May, 1949

>
I

Man of Principal
Just give me the simple life
And for me never fear.
All I crave is interest
Compounded twice a year.
Changing Times
“Remember when there was only
one car in the garage?”
“You mean, instead of two families?”
It Snuck Out
Prof: Who, here, was so rude as to
laugh out loud?
Student: I laughed up my sleeve,
sir, but there’s a hole in the elbow.
Confounded Interest
She reached below her dimpled knee
Into her rolled-down stocking,
And there she found a roll of bills . . .
Ah me, ’twas sweetly shocking.
“ Why don’t you keep them in a bank?”
Inquired a nosey prier.
“ The principle is the same,” she said.
“ But the interest here is higher.”
Not Even an Echo
Son: I’m a big gun at college.
Father: Then why don’t I hear better reports?
Innocent
“Your husband’s brilliant. I’ll bet
he knows everything.”
“Don’t be silly. He’s a lawyer and
doesn’t suspect a thing.”
Real Comfort
Clerk: I wish I had some pain killer
for this toothache.
Manager: It’s all a matter of mind.
Yesterday I went home feeling ter
rible. My wife put her arms around
me and consoled me and in no time
I was feeling great.
Clerk: Is your wife home now?
Action Right Now
First Executive: You look glum
Why?
Second Same: I put up a couple of
“Do It Now” signs and in two days
my paymaster ran off with $50,000,
my assistant eloped with my secretary,
and the office boy left for Hollywood!
Banker, May, 1949
Digitized for Northwestern
FRASER
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Federal Reserve Bank of St. Louis

Stuck-Up
Mr. Smith entered his apartment in
terrible condition. His nose was bleed
ing, his clothing torn, his knuckles
were skinned and a couple of front
teeth were missing. “What happened?”
cried Mrs. Smith in alarm.
“ It’s that no good Irish janitor,” ex
plained Mr. Smith. “ He tried to tell
me he’s made love to every woman in
this entire building except one.”
Mrs. Smith paused for a moment
to consider. “ Humpf, I’ll bet it’s that
stuck-up Mrs. Jones on the sixth floor.”
That Proves It
Suspicious Parent: Are you sure
that knife you found was lost?
Little Boy: Sure. I saw another kid
lookin’ for it.
Too Infrequent
“ What’s thrift?”
“An excellent virtue, especially in
an ancestor.”
What’s the Use?
Mother (to little son after his first
day at school): You’re not going to
morrow? Why not, dear?
Junior: S’no use. I can’t read and
I can’t write and they won’t let me
talk!
An Important Bird
The Stork is one of those mystics
Who inhabits all sections and districts,
He doesn’t wear plumes
Or sing pretty tunes,
But without him there’s no Vital Sta
tistics.
The Whole Truth
Wife (angrily): And I suppose you
expect me to believe that you came
straight home from the office?
Husband: Sure did. Just like the
crow flies.
Wife: Yes—stopping frequently for
a little corn.
Can t W atch Her Step
Father: What are your young man’s
intentions?
Daughter: Well, Dad, he’s keeping
me pretty much in the dark.

A
1

CONVENTIONS

May 6-7, Annual Convention, South
Dakota Bankers Association, A b
erdeen, Alonzo W ard Hotel.
May 9-11, Annual Meeting, Missouri
Bankers Association, Kansas City,
Hotel Muehlebach.
May 10-13, and May 24-27, Group Meet
ings Iowa Bankers Association.
May

18-20, Annual Meeting, Kansas
Bankers Association, Kansas City,
Missouri.

May 30-June 3, A .I.B . Annual Meet
ing,
Portland,
Oregon,
Hotel
Multnomah.
June 8-9, Annual Convention, Minne
sota Bankers Association, St. Paul,
Hotel St. Paul.
June 13-24, 4th Annual Agricultural
Credit School of Iowa Bankers
Association, Am es, Iowa State
College.

♦

June 15-16, Annual Convention, Illi
nois
Bankers
Association,
St.
Louis, Hotel Jefferson.
June 17-18, Annual Convention, North
Dakota Bankers Association, M i
not, Clarence Parker Hotel.

June 20-22, 53rd Annual Convention,
Wisconsin Bankers Association,
Milwaukee, Schroeder Hotel.
June 20-July 2, Graduate School
Banking, Rutgers University.

August
22-September
23,
Central
States School of Banking, Univer
sity of Wisconsin, Madison.
October 11-12, Annual Convention,
Nebraska
Bankers
Association,
Lincoln, Hotel Cornhusker.
October 17, 18, 19, 63rd Annual Con
vention, Iowa Bankers Associa
tion, Des Moines, Hotel Fort Des
Moines.

October 19-22, Annual Convention,
Financial Public Relations Asso
ciation, Chicago, Edgewater Beach
Hotel.

October 23-26, 25th Convention, Na
tional Association of Bank Audi
tors and Comptrollers.
October 30-November 2, 75th Annual
Convention,
American Bankers
Association, San Francisco. (Con
vention headquarters to be an
nounced later.)

Des M oines’ transcontinental air mail facilities
rush your out'of'state items to destination

Nineteen planes take-off from Des Moines each day,
providing delivery the following day to points coast-tocoast and border-to-border.
Here at the Bankers Trust, we have long followed the
rule of using air mail whenever air schedules meant a
saving of valuable time.
Knowledge that the handling of your items will be
expedited in every practical way, is just one of many
considerations that make it an advantage to carry an
account with this progressive Des Moines bank.

BANKERS TRUST COMPANY
6th and Locust

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

Des Moines, Iowa
M e m be r F ed er a l Dep os it In su ra n c e Corporation

M e m b e r F ed er a l R e s e r v e Sy st em

S C H E D U LES
SPEED

T R A N S IT

S E R V IC E !

Fast nation-wide transit and collection service is made possible by Des
Moines' location at the junction of two important air lines . . . United's trans
continental East-West route and Mid-Continent's North-South system.
Faster schedules now permit even better service to principal cities in every
part of the country as over-night points for the payment of checks, drafts and
collection items forwarded through the Iowa-Des Moines National.
Few cities enjoy the advantage of direct service by
two major air lines, in addition to excellent railroad
connections in all directions.
When you select this bank for your Des Moines corre
spondent you assure prompt and efficient service both
to your Bank and to your Bank's customers.

A Strong, Dependable Correspondent Connection

IOWA-DES MOINES NATIONAL BANK

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

Member Federal Deposit Insurance Corporation