Full text of The Northwestern Banker : November 1933, 38th Year, Number 556

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Northwestern
Ba n k e r
DES MOINES
N O V E M B E R , 1 93 3

M y Life Story
Page 7
D. R. G RE EN
Vice President
Red River National Bank & Trust
Company
Grand Forks, North Dakota
President
North Dakota Bankers Association

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Fight the Good Fight
and Never Give
Page 9

Three Reasons W h y Banks
Should Advertise N ow
Page 11

The Big Business Woman in the Bank
Page 15

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o</ Cedar Rapids Dank
j f f l f e
1118161 6 f l

#m m Z

UI SHI I 'it «I Mini II¡ill

i l ii IIHII*.

Servicing cSll loiVa
Sound and Prudent Banking
HE Merchants National Bank is an active institution whose
management is conservative and whose policies are based solidly
upon the principles of sound and prudent banking.

An experienced organization equipped for the prompt and effec
tive handling of collections and all other transit items.
These are the qualifications which the Merchants National Bank
offers to banks and their customers in other places through its
correspondent service.

M ERCHANTS
NATIONAL BANK
O F F IC E R S
President, James E. Hamilton; Vice Presidents, H. N. Boyson, S. E.
Coquillette, Van Vechten Shaffer, Roy C. Folsom, Marvin R. Selden; Vice
President and Cashier, Mark J. Myers; Vice President and Trust Officer,
George F. Miller; Assistant Cashiers, Fred W. Smith, R. W. Manatt, L. W.
Broulik, Peter Bailey, R. D. Brown, and O. A. Kearney.

Cedar Rapids

Iowa

N o rth w e ste rn Banker
Des Moines

The Oldest Financial Journal West of the Mississippi
Number 556

NOVEM BER, 1933

38th Year

IN T H I S ISSUE
P age

Across the Desk from the Publisher...........................................
Frontispiece— “ His Majesty, The Baby” ............... Francis Day
My Life S tory................................................. Blanchard B. Vorse
News and V iew s................................................... Clifford, De Buy
Fight the Good Fight, and Never Give U p ................................
...................................................................R. M. Messerschmidt
Acme Interest Tables............... Marion D. Woods 10, 12, 14,
Three Reasons W hy Banks Should Advertise N o w ...................
............................................................................. H. B. Craddick
“ Ask Me Another” ................................................. E. M. English
The Big Business Woman In the Bank. . .Paralee M. W infrow
Should Membership in the Federal Reserve Be Made Compul
so ry ?......................................................................... A. W. Jones
$2,000,000,000— A LOT of M oney...............................................
It Pays to Sell “ Insurance That Insures” ........... John Tumelty
South Dakota N ew s................................................................
Nebraska N e w s ..........................................................31 and
Minnesota N e w s ........................................ ..
.33 and
North Dakota N ew s...............................................................
Iowa Bank N ew s................... ....................... .. ......................

4
6
7
8
9
16
11
13
15
17
19
25
29
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42
35
37

CL IF FO RD DE PUY
Publisher
R. W . M O O R H E A D
Associate Publisher

FR A N K P. SYMS
Vice President
19 West 44th Street
Suite 1608
New York

Member, Audit Bureau of Circulations

H. H A Y N E S
Editor

F. S. L E W I S
Special Representative
218 Essex Building
Minneapolis, Minn.
Telephone, Bridgeport 2523
J. A. S A R A Z E N
Circulation Manager

Member,
Financial Advertisers Association

Northwestern Banker, published monthly by the DePuy Publishing Company, Ine., at 555 7th Street, Des Moines, Iowa.
Subscription, 50c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1933.

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cross

ilio

íhe Publisher

I was very much
interested in reading
what Professor A. A.
Berle, of Columbia
University, and one of President Roosevelt ’s eco
nomic advisors, had to say about the guaranty fea
ture of the Glass-Steagall act, and expressing the
opinion that it was only a temporary and patriotic
expedient, and that it should eventually be repealed.

Believes
Guaranty Feature
Only Temporary

His remarks were made in the course of an address
before the Savings Bank Association of the State
of New York.
First of all, Professor Berle believes that there
should be an emphatic pronouncement against the
undue switching of funds, and the attempt to
sprinkle money all over the United States in lots
of $2,500, in order to take advantage of the guar
anty feature when it goes into effect January 1,
1934.
lie does not regard the present deposit insurance
feature of the Glass-Steagall act as either a logical
solution or a permanent solution of the difficulty,
and further says, “ I sympathize with it because
plainly the banks of the country must be made safe
for all depositors.
“ As a temporary expedient it might be neces
sary ; and since a functioning banking system is
essential to all of ns, if necessary we may have to
join the deposit insurance plan as a frankly patri
otic act toward tiding the country through a diffi
cult period.
“ But it must be plainly recognized that this is
patriotism rather than business; that in the last
analysis the homely feature of hoeing your own
garden is more desirable than having a mass meet
ing to run your neighbor’s farm, so long as the
present system of things continues.”
1 have always argued against the guaranty bank
plan as it has operated in the several states in the

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N ovem b er 1933

past, but I am becoming somewhat convinced that
if we are to have a guaranty feature at all, and we
certainly are as long as the public is in the frame
of mind that it is, that it would be better to have
the law limited to $2,500 and repeal the other
features of the deposit insurance act. In this way
we could reach the greatest number of depositories
and the least amount of deposits.
But if the guaranty plan is only “ temporary”
as Professor Berle suggests then even this provision
will be eliminated eventually.

W ill Congress
Man3' bankers with
Repeal
the
Postal
'I1“ ” \have jalked 1,1
a
•
t
o
the hist month or so
bavmgs Law.
have felt very ^finite
ly that if the Federal Deposit Insurance Plan works
out successfully, that there will be no need for a
continuation of the Postal Savings System.
For the first time this idea has received the
public approval of a government official when Comp
troller of the Currency, J. F. T. O ’Connor, in a
recent address in Texas, told a group of bankers
gathered in that state that if the Bank Deposit In
surance Fund proved successful, that Congress
would “ be justified in abandoning or sharply cur
tailing the Postal Savings System.”
The Postal Savings System has long been a thorn
in the side of bankers throughout the country and
for the simple reason that it lias been taking money
out of every community, and while some of this
money has been redeposited in local institutions,
much of it has been sent to Federal Reserve Banks
and thus lost for any value as far as the local
community is concerned.
A fter all it is an ill wind that blows no one any
good and perhaps the Guaranty Fund Plan will be
a result of repealing the Postal Savings Law, at
least I hope so.

tween November 1, 1933, and February, 1935. (15
As I read about
months).
the organization of
1. Bonus checks on corn and hog bene
the American Secur
fits— ($35,000,000 will be paid in
ities Protective Asso
cash in next three months)........... $ 75,000,000
ciation, to safeguard the interests of American 2. Higher prices for 1933 corn crop
should result in an income from
holders of some $8,000,000,000 of foreign securities,
corn sold as grain this winter of.... 41,000,000
I was just wondering how much of this sum we will
3. Higher prices for hogs sold from
donate to our foreign friends, as many of these
November 1, 1933, to end of 1934
loans which we have made to over 40 foreign gov
150,000,000
should produce------------------ernments, are now wholly or partly in default,
TOTAL PROSPECTIVE INCOME
This organization is to assist the American in
FOR IO W A FARM ERS IN
vestors in getting facts and figures concerning the
N E X T 15 MONTHS............ ......... $266,000,000
present situation in the various foreign countries
There are 214,000 farm families in Iowa which
where Americans are interested from the standpoint
means that each family will receive $1,242 in NEW
of holding bonds of that particular country.
INCOME from hogs and corn in the next 15
As President Roosevelt announced: “ A task of months.
adequate organization obviously exists to be under
It should be remembered, of course, that corn
taken. In many situations the proper organization
and hogs usually produce only about one-half of
of the American bond holders is urgently needed in
the Iowa farm er’s income— therefore the total in
order to make possible fair and satisfactory arrange
come on the basis of comparable increases in other
ments with foreign governments, undergoing diffi
commodities should amount to around $2,480 per
culties and to properly protect American interests.”
farm family.
Of course, in many ways it is the same old sad
story of locking the barn door after the horse has
run away.
A 'T o n e y
^ am convinced that a great many
Not all of the $8,000,000,000 invested by Amer lS/Laqic peop^e 'n the United States believe that
there is some money magic which can be
icans in foreign security will be lost, but in my
legislated into our present economic system and re
opinion, a large part of it will be.
It is rather hard sometimes to maintain our broad turn us immediately to prosperity.
I do not agree with this view and I was interested
outlook of internationalism and to endeavor to real
in
reading the remarks of Professor O. M. W.
ize that we must do our part in the “ w orld’s work”
Sprague,
Financial Advisor to President Roosevelt,
but when war debts are being repudiated and
who
points
out very clearly that: “ Inflation will
foreign bonds are being defaulted, I must confess
not
yield
average
prices that will hold unless accom
that my viewpoint changes to nationalism.
panied
by
full
employment
of both the labor and
During and since the War, it seems to have been
the
capital
in
the
country.
the desire of most of the foreign countries to get as

Another Donation
to Our Foreign
“ Relations ”

much as they could from America and return as
little of it as possible.
Since the Corn - Hog
Program was announced,
I have gone over very
carefully, with a well known agricultural economist,
just how the plan would affect Iowa, for example,
in the next 15 months and of course figures could
be compiled for other states and the benefits for
that particular state arrived at the same as I have
done for Iowa,
What this program will mean for the Hawkeye
State, if the farmer will cooperate in carrying it
out, is briefly as follow s:
The New Corn-Hog Program will produce the
following N EW INCOME for Iowa Farmers be

The C orn -H og
Program

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“ The situation today is unlike that of war time
for labor and capital were fully employed and the
government was competing for them and creating
a vast market. When there is large unused capacity
of mills and large unemployment of labor, the re
sults from inflation are very different,
“ I attach far greater importance to the National
Recovery Program, now under way, than to any
monetary manipulations. If failure conies, it will
be no fault of the money system, but the fault of
our planning and other directions.”
I am convinced that with the vast amount of
credit available in this country, with the large
reserves built up by the banks and by the Federal
Reserve System, that it is not the ‘ ‘ money system ’ ’
which is at fault at the moment, but it is a definite
return to business activity which is needed in order
to head us back on the road towards prosperity.

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“ HIS MAJESTY, THE B AB Y ”
Reproduced in full color from the original oil painting by Francis Day. For many years Mr. Day has
been an Associate Member of the National Academy in New York, and he now lives amid the picturesque
Berkshire Hills of Massachusetts, a charming spot of which forms the beautiful setting for the above picture.

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"I had always had it in mind to set into the banking business.

So when I was throush high school, I went to see J. G .

Rounds with the Citizens National. I got a job as messenger at $ 3 0 .0 0 a month, writing remittances and filing mail. I
confess I read every letter, business or personal, and I came to know more about the bank business than I had ever
thought I could in so short a time. In recent years, I have figured out that it is not always a good idea to have so
much of the business known through the files.”

MY LIFE STORY
By BLANCHARD B. VORSE
Vice President, Bankers Trust Company,
Des Moines

I Drove Cows to Pasture
I Sold Farm M achinery
I Bought and So Id D iamonds

B L A N C H A R D B. V O R S E

HEN I was asked to tell my life
story, I tried to figure out what I
could say, but I could not figure
out any outstanding climaxes, nor could
I see but very commonplace things that
had happened to me.
My foundation was laid right here in
Polk County, in fact in Des Moines. My
father was born here, at Second and
Court Avenue. He left Des Moines as
a young man but came back and lived
here the rest o f his life.
My father was engaged in the imple
ment business, located at Third and
Court. When I was about two years old,
Ave moved to Seventeenth and Center,
later moved to Nineteenth and Pleasant,
but were soon back at Seventeenth and
Center, the place where I still make my
home.
I became o f school age when we lived
at Nineteenth and Pleasant, and the dis
trict called for my attendance at Haw
thorne School at Seventeenth a n d
Crocker. My first day at school I spent
in the cloak room fo r “ doing nothing”
and learned that if I had done something,
my treatment would have been a lot
worse.
The district became overcrowded and
Bird School was built at Twenty-first and
Woodland. I was in the fourth grade
when that building was opened fo r the
first time. I f we got our lessons good

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B L A N C H A R D B. V O R S E
told his own LIFE S T O R Y
before a recent meeting of
the Des Moines Rotary Club
and it was so entertaining
and M r. Vorse is so well
known to bankers through
out the Middle W e st that
we are presenting his story
herewith knowing that you
will be highly entertained
and a m u s e d
by the
incidents and adventures
in the life of this very
successful banker.— Editors
Note

say that the territory between Ingersoll
and High Street from Seventeenth to
Twenty-eighth and Woodland was a
pretty wild tract, a deep valley at that
time, fenced in as a cow pasture. I used
to make a nickel driving in the cows
once in a while, but most o f the time the
nickel was well earned for the cows were
always in the farthest corner at Twentyeighth and Ingersoll.
Twenty-first and High was our old
stamping grounds. There we played ball,
dug caves and spent nearly every eve
ning, 10 to 15 of us boys. W e built bon
fires and some one was named to go to
the drug store fo r Diamond Dick and
Frank Merriwell and other high class
literature. It was a case o f concentrated
study. W e didn’t let many of the folks
know what we were doing for we knew
very well that they would think we were
all “ going to hell” Avith that sort o f read
ing material. As I think back to the
members o f that gang, I feel that most o f
them are getting along pretty Avell.
School Days

enough we had a great time in playing
after school in the wide open spaces to
the west o f the grounds, but if we didn’t
do so well, the usual punishment was
staying in after school hours to study.
I had some tough time with some sub
jects, history being a hard number, but
somehow I worked through it 0 . Iv.
I went to the Four C’s, then located
at Fourth and Grand Avenue, on the top
floor o f the old Y. M. C. A. building.
Mrs. Mehan, the wife o f the President
o f the college, was the teacher. She had
a bad habit o f crowding in what we
thought were three or four days work in
one.
Real Sport
As to something about the “ days o f
real sport” o f my boyhood days, I might

I entered West High School in 1896.
Clay Slinker Avas there to start me right
and he watched me carefully, but I don’t
think I had him fo r a teacher, not in
any more classes than I could figure to
get out of, anyway. I believe he superin
tended our baseball team in its efforts
and also tried us out at track. I liked
manual training and took about three
years Avork in two.
In those days, “ bobbing” was a favor
ite sport fo r young and old.
Those
neighborhood parties attracted as many
as 300 and 400 at a time, and the best
place was on Seventeenth Street south
from Pleasant, past Woodland, High, Lin
den and clear to Grand Avenue. Our
parents used to get us to study at night
by saying that as soon as Ave had our
N orthw estern Banker

N ovem ber 1933

lessons for the next day, we could go
“ bobbing.” That was a real incentive,
so after the supper dishes were done,
out we’d go, the Avhole family.

At West High, I came to be associated
with a few hoys, and we were together
all the time, and in on everything good
or bad. What we didn’t frame, we got
by with in some Avay.
There were also five girls in this same
class, and the five pairs of us were to
gether much o f the time. It is interest
ing that those five boys and five girls
married, and the friendships formed in
that class of 1900 have not been broken.
W e have been getting together for a
reunion every winter, only recently
broken by the death o f Leigh Lumbard.
Vacations
Dui'ing the summer vacations, I
worked for my father, spending most of
my time in the repair department. He
was still in the implement business. The
J. I. Case Thresher Company Avas doing
well at that time and came out with their
steam engines for threshing machines.
I used to have to get down early in the
morning to get the express orders fo r
repairs out by six o’clock. Father didn’t
pay me any wages, hut lie let me handle
the second hand sales of wagons, buggies,
harness, etc. The partial payment plan
was used in those days, too, believe it or
not. He didn’t help me with any papers,
so I had to fill them out and file them
and record them, and as I look back to
that experience when I Avas 14, 15 or 16,
I believe it was good experience for me.
I remember some o f the tough times I
used to have to collect a dollar or tAvo,
and usually Avhen I got anything on any
deal, the wagon or the harness Avas worn
out.
The J. I. Case people Avere going into
South America for trade in those days,
and they wrote to my father if I would
be interested in going. Rut my mother
and father both objected, so that chance
had to be passed up much as I would have
like to have gone fo r such a long trip
into a new country.
Anyway, I guess I got the habit of
getting down to Avork early in the morn
ing in those days, and I still like to get
down early and put in several hours so
that I can get more done in a day’s time.
Starts Banking
I had always had it in mind to get
into the banking business. So Avhen I
was through high school, I went to see
J. G. Rounds Avith the Citizens National.
I got a job as messenger at $30.00 a
month, writing remittances and filing
mail. I confess I read every letter, busi
ness or personal, and I came to know
more about the bank business than I had
ever thought I could in so short a time.
In recent years, I have figured out that
it is not always a good idea to have so
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much o f the buisness known through the
files.
I worked at this job for some years,
until my father died. And then I had
to go to work to try to dispose o f his
holdings. I remember an old sqrinkler
wagon which I had a great time in get
ting rid of, but I think I finally sold it or
traded it to some city council in Atlantic
or Audubon. I was getting this pretty
well cleaned up when the late Geo. Pear
sall saw me one day and asked me when
I wanted to come hack to the bank. He
told me I could have the statement job.
This job in those days meant the A\Triting
out in long hand o f all the entries and the
balances. I re-arranged the files and got
some neAv equipment, and I found I had
time to do a little hit o f business on the
side. F or one thing I traded in dia
monds. I also loaned some money to the
boys working in the bank. Some o f them
would run a little schort, and by the next
pay day in two Aveeks, 1 would get back
$10 fo r $9 I loaned them.
The boys at the Plumb Jewelry could
not deal on the side in diamonds, but they
knew they conld send any prospects to
me. So by the time the prospect got over
to see me, they had telephoned me the
low down on the diamonds. Once in a
while I got Avind o f a fellow getting mar-

OE MENGES, Cashier o f the Alta
Vista State Bank, o f Alta Vista, Iowa,
disagrees with my good friend, M. E.
Tate, Vice President and Cashier o f the
Security State Bank o f Keokuk, because
in Mr. Tate’s recent article in the N orth
w ester n B an k e r on “ Let’s Get Back to
Banking,” he said “ There should be no
real estate loans.”
Mr. Menges in his letter to me comments
on this statement as follow s:
“ I may be wrong, Mr. De Puy, but it

rather seems to me that is very poor ad
vertising for the banks o f IoAva, even if
Ave thought it, Avhen practically all our
business is directly or indirectly derived
from farm ing and profits from the soil,
and if this security is not good and should
not be taken by IoAva banks then as I see
it Ave have no security.

“ I want to be understood that I do not
think a small or even large IoAva Bank
should load up with large farm mortgages,
but I think Mr. Tate or anyone else in
terested in Banking in IoAva during the
past 15 years would have had the least
trouble and their losses would have been

ried, I Avas able to sell him a diamond at
what he thought was a real bargain.
Promotions
In 1907 I Avent to work for the Century
Savings Bank. Bought a little stock and
worked on the books. As things Avent
along, I was very fortunate that some
of the men ahead o f me dropped out— one
went to California and another did some
thing else, and so promotions came along
pretty fast.
Just at that time, all o f you know
about the panic. W e were on a complete
scrip basis, as to speak.
In 1917, the Century affected a con
solidation with the IoAva Loan & Trust
Co., and believe me the consolidation Avas
an out and out proposition. The value
o f the Century stock was more than par.
In September, 1921, Frank Kauffman
invited me to come to the Bankers Trust
Company, a relationship that has been
pleasant and enjoyable. I expect to re
main at that place as long as I am
wanted. I f I ever do get aAvay from the
bank I am going to be a farmer.
I have operated some farms ever since
my father died. He had some land hold
ings, and these farm operations have been
interesting and have almost become a
hobby with me.

at a minimum if they had a reasonable
amount o f their assets in farm mortgages
ranging from $15 to $30 per acre on im
proved IoAva land, and as to marketability
Ave have found Ave were able to sell farm
mortgages, for the right amount. In other
words, taken conservatively, during the
past tAvo years, for the face, plus interest,
and in cases have been able to make a
profit and at the time Ave had no other
security in our Bank that Ave Avere able
to do this, so it rather seems to me that
is very poor publicity fo r a Banker in
Iowa to give to the rest o f the United
States, and I rather think it is just this
attitude that Ave have had to face condi
tions in IoAva that Ave have.”
Mr. Tate, it is noAV your turn.
T M ILLS EASTON, Advertising ManJ . ager o f the N O RTHERN TRUST
COM PANY, o f Chicago, has just sent me
some very interesting figures showing the
growth o f their institution in the past
year, and it is needless to say this is one
o f the outstanding records of its kind, and
(Turn to page 26, please)

FIGHT THE GOOD FIGHTand

Never Give Up
By R. M. MESSERSCHMIDT
Cashier, University State Bank, Des Moines

ISDOM has been defined as, “ Be
ing Wise.”
“ To possess knowl
edge and capacity to use it; dis
cernment and judgment; discretion; sa
gacity; skill. It has also been defined to
be, “ The use of the best means fo r attain
ing the best ends.”
Courage is to possess power to meet
danger and difficulties firmly.
Fortitude is the possession of that
strengh o f mind enabling one to encounter
danger or bear pain courageously, or bettel still for our purposes— to possess reso
lute endurance.
Determination is a fixed resolution and
the putting forth the essential effort to
accomplish a certain achievement.
Vision is to possess the faculty o f see
ing.
We are citizens o f the greatest nation in
the world. It is a comparatively young
nation, rich in natural resources and it has
achieved a most enviable position among
the nations of the world with its financial
and scientific achievements with an intelli
gent class o f people known to possess
great leadership endowed with an abund
ance of the qualifications above enumer
ated.
W e only need to turn the pages o f our
history back but a little to read the ac
count of a small handful o f American
sailors greatly outnumbered by their foe,
their ship badly damaged and in a sink
ing condition. Their leader, with the real
red blood o f an American beating through
his veins, shouted the command, “ Don’t
give up the ship.” They didn’t give up
the ship. They not only hung on but they
fought and they won. In the World War,
a group o f Americans greatly outnum
bered again, but with that same American
fighting spirit, were called on by the Ger
man commander to surrender. The an
swer he received was, “ Surrender, why
Hell, we haven’t commenced to fight.”

future play a leading role in the progress
of our cities, states and nation.
During this economic upheaval, with its
many failures and suspensions, there has
naturally been considerable discussion rela
tive to and criticisms directed at the Amer
ican system o f banking. There have been
new laws suggested and some have been
passed. There has been some discussion
with reference to the dual system whereby
we have the national banks operating un
der national rules and supervision and the
state banks operating under the laws of
the various states. I do not believe our
troubles have been caused to any great
extent because o f this. It is possible that
a unified system, with all banks operating
under the same laws and strict supervision,
might have its advantages. Speaking of
supervision, I believe that the most im
portant part o f the supervision is to see
that the banks are managed by men that
are trained and qualified to manage a
bank and in whose hands the funds o f the
depositing public can be entrusted and
who will realize that they are holding a
position o f trust that is sacred and so that
those funds will be handled in a more sa
cred manner than they have in some cases
in the past. I f the management o f a bank
is of such character that it has to be super
vised, examined and re-examined and in
other words, watched all the time, laws
should provide for its immediate transfer
to safer hands. Any man that has to be
watched would not be permitted to handle
the funds o f others.
I do not believe there is anything to
replace the individual banks, owned by
local people, managed by well qualified
officers, operating in a careful, painstak
ing manner, realizing their first obligation
is to their depositors and with the desire
to assist, so far as it is safe and sound
banking, in the further progress of their
respective communities.

R. M. M E S S E R S C H M I D T

Going To Win

Insured Deposits

seems to me that it will be just like paying
a premium on carelessness. People like
to do their business with the bank that
will grant them whatever they want and
as long as their deposits are safe in any
bank, the careful bank may suffer in its
volume o f business and at the same time
be forced to contribute fo r the losses o f
its free and easy going competitor. There
is also the cost o f this insurance which will
be no small item. A profit is a necessity in
every business and banking is no excep
tion. Banks will operate with more care
as to goodness and liquidity of their earn
ing assets in the future, in preference to
those more risky items with the higher
interest rates. This means a lower return
will be received on the loans made which in
turn will reduce the earnings received, al
though it must be realized that it should
greatly reduce the amount of losses sus
tained. A t the same time, the real benefit
will be to the depositors and I believe
that banks should reduce the amount of
interest they pay on deposits to absorb
this cost o f insurance. In other words, it
seems to me that the cost o f the insurance
should be passed on to the depositor. If
bank deposits are insured, there should be
no need fo r the Postal Savings System
and government competition under such
circumstances should be discontinued.

What has all this to do with banking
and economic conditions today?
Just
this; the American people are a victorious
people, a determined and resourceful peo
ple; we are already fighting and we are
going to win.
Banking has in the past and will in the

We now have the probability of insured
deposits. This will undoubtedly be of
great value in restoring confidence and
will consequently bring more deposits back
to the banks and in turn through the chan
nels o f business. I have never liked the
idea o f guaranteed deposits because it

I am sure that every good banker is
anxious to cooperate to the fullest extent
in any move that will tend to improve our
banking structure and which in turn will
(Turn to page 22, please)

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

Improve the Business

N orthw estern Banker

N ovem ber 1933

Acme Interest/Tables
.«allí

Compiled By M AR IO N D. W OODS
ONCLUDED in this issue of T he N orthwestern B anker are the series of
Acme Interest Tables, compiled by Marion D. AVoods, cashier of the Valley
Savings Bank, Des Moines. Published below are the 7 per cent and 8 per
cent tables.

The first of the series of Acme Interest Tables, 5 per cent and 6 per cent,
appeared in the September issue of T he N orthwestern B an ker . In the October
issue the 5% per cent and 6% per cent tables were printed.
Wide Margin
for Binding
if Desired

Mr. AVoods is having the complete series of tables made up into convenient
book form, and they will be ready for distribution in the near future. Bankers
desiring a copy can communicate direct with Mr. AVoods, or make their request
to T he N orthwestern B an k er , Des Moines.

For 3 y2% table divide by 2.

Days
i
3
4
<;

10
11
115
13
14
15

1(>

17
18
19
20

23
24
25
20
28
29
30
31
32
33
34
35
30
37
38
39
40
41
42
43
44
45
40
47
48
49
50
51
53
54
50
58
59
00
01
02
03
04
05
00
67
08
09
70
71

(Continued on page 12)

N orthw estern B anker

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

N ovem ber 1933

73
74
75

10000

20000

30000

40000

50000

60000

70000

80000

90000

000194
000389
000583
000778
C00972
001167
001361
001556
001750
001944
002139
002333
002528
002722
002917
003111
003306
003500
003694
003889
004083
004278
004472
004667
004861
005056
005250
005444
005639
005833
006028
006222
006417
006611
006806
007000
007194
007389
007583
007778
007972
008167
008361
008556
008750
008944

000389
000778
001167
001556
001944
002333
002722
003111
003500
003889
004278
004667
005056
005444
005833
006222
006611
007000
007389
007778
008167
008556
008944
009333
009722
010111
010500
010889
011278
011667
012056
012444
012833
013222
013611
014000
014389
014778
015167
015556
015944
016333
016722
017111
017500
017889

000583
001167
001750
002333
002917
003500
004083
004667
005250
005833
006417
007000
007583
008167
008750
009333
009917
010500
011083
011667
012250
012833
013417
014000
014583
015167
015750
016333
016917
017500
018083
018667
019250
019833
020417
021000
021583
022167
022750
023333
023917
024500
025083
025667
026250
026833

000778
001556
002333
003111
003889
004667
005444
006222
007000
007778
008556
009333
010111
010889
011667
012444
013222
014000
014778
015556
016333
017111
017889
018667
019444
020222
021000
021778
022556
023333
024111
024889
025667
026444
027222
028000
028778
029556
030333
031111
031889
032667
033444
034222
035000
035778

000972
001944
002917
003889
004861
005833
006806
007778
008750
009722
010694
011667
012639
013611
014583
015556
016528
017500
018472
019444
020417
021389
022361
023333
024306
025278
026250
027222
028194
029167
030139
031111
032083
033056
034028
035000
035972
036944
037917
038889
039861
040833
041806
042778
043750
044722

001167
002333
003500
004667
005833
007000
008167
009333
010500
011667
012833
014000
015167
016333
017500
018667
019833
021000
022167
023333
024500
025667
026833
028000
029167
030333
031500
032667
033833
035000
036167
037333
038500
039667
040833
042000
043167
044333
045500
046667
047833
049000
050167
051333
052500
053667

001361
002722
004083
005444
006806
008167
009528
010889
012250
013611
014972
016333
017694
019056
020417
021778
023139
024500
025861
027222
028583
029944
031306
032667
034028
035389
036750
038111
039472
040833
042194
043556
044917
046278
047639
049000
050361
051722
053083
054444
055806
057167
058528
059889
061250
062611

001556
003111
004667
006222
007778
009333
010889
012444
014000
015556
017111
018667
020222
021778
023333
024889
026444
028000
029556
031111
032667
034222
035778
037333
038889
040444
042000
043556
045111
046667
048222
049778
051333
052889
054444
056000
057556
059111
060667
062222
063778
065333
066889
068444
070000
071556

001750
003500
005250
007000
008750
010500
012250
014000
015750
017500
019250
021000
022750
024500
026250
028000
029750
031500
033250
035000
036750
038500
040250
042000
043750
045500
047250
049000
050750
052500
054250
056000
057750
059500
061250
063000
064750
066500
068250
070000
071750
073500
075250
077000
078750
080500

009139
009333
009528
009722
009917
010111
010306
010500
010694
010889
011083
011278
011472
011667
011861
012056
012250
012444
012639
012833
013028
013222
013417
013611
013806
014000
014194
014389
014583

018278
018667
019056
019444
019833
020222
020611
021000
021389
021778
022167
022556
022944
023333
023722
024111
024500
024889
025278
025667
026056
026444
026833
027222
027611
028000
028389
028778
029167

027417
028000
028583
029167
029750
030333
030917
031500
032083
032667
033250
033833
034417
035000
035583
036167
036750
037333
037917
038500
039083
039667
040250
040833
041417
042000
042583
043167
043750

036556
037333
038111
038889
039667
040444
041222
042000
042778
043556
044333
045111
045889
046667
047444
048222
049000
049778
050556
051333
052111
052889
053667
054444
055222
056000
056778
057556
058333

045694
046667
047639
048611
049583
050556
051528
052500
053472
054444
055417
056389
057361
058333
059306
060278
061250
062222
063194
064167
065139
066111
067083
068056
069028
070000
070972
071944
072917

054833
056000
057167
058333
059500
060667
061833
063000
064167
065333
066500
067667
068833
070000
071167
072333
073500
074667
075833
077000
078167
079333
080500
081667
082833
084000
085167
086333
087500

063972
065333
066694
068056
069417
070778
072139
073500
074861
076222
077583
078944
080306
081667
083028
084389
085750
087111
088472
089833
091194
092556
093917
095278
096639
098000
099361
100722
102083

082250
084000
085750
087500
089250
091000
092750
094500
096250
098000
099750
101500
103250
105000
106750
108500
110250
112000
113750
115500
117250
119000
120750
122500
124250
126000
127750
129500
131250

3 REASONS
Why Banks Should Advertise Now
P A R T II
here is
Part Two o f a series o f two articles by
Mr. Craddiek. Part One appeared in the
September issue o f T h e N orth w estern
(E ditor ’ s

N o t e :- — Published

B anker.

N M Y article o f last month I stated,
“ Looking- to the future, it seems almost
certain that bankers will think less o f
the term ‘advertising’ and more o f the
broader, constructive term, ‘Public Rela
tions’.”
Before going direct to the subject o f
Public Relations let us look ahead to 1934
and visualize some new approaching con
ditions in banking.
When the Glass-Steagall law goes into
effect the bank’s depositors are going to
immediately fall into two divisions— those
having bank balances o f less than $2,500
and those having balances o f over $2,500.
One speaker at the F. A. A. convention
in New York in September expressed the
opinion that this new insured deposit law
would bring about 96.5 per cent o f all
bank depositors under complete deposit
guaranty protection.
He further stated that it becomes evi
dent that those banks which have hereto
fore depended upon “ safety” as their out
standing selling argument to attract and
hold deposits will have to find some new
selling points.

N ew Competition
Personal service to customers, closer re
lations, friendliness, considerate interest
o f individuals and their problems— these
are the factors which will quickly come
into play in the new competition— for with
the vast majority o f bank depositors cov
ered by the guaranty, smaller banks have
an equal chance with larger banks in both
soliciting and holding accounts. It is fair
to assume that many accounts which left
smaller banks to go to reputedly safer
large banks, will find their way back to
those banks who advertise and deliver the
best in personal service.
It shouldn’t take the banker long to
figure out some outstanding advantages
(as well as the well-known disadvantages)
which will be open to him under the new
banking set-up. Thus far bankers have
considered only the mechanics o f insured
deposits. It isn’t too early to begin think
ing o f what the bank’s policy is to be
toward the community, the public and its
customers.

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

Your Bank Should Adopt
a Pubi ic Relations Program
By H. B. CRADDICK
Minneapolis, Minnesota

I f banks are to progress, grow and pros
per under the insured deposit era just
ahead, they will insure their own position
through a well defined Public Relations
policy and program.
The bank’s “ Public Relations” program
should be designed to build good will fo r
the bank by providing additional means
through which the institution may earn it

W hen the new law insuring
deposits goes into effect
the first of the year, you are
going to need to talk about
something besides "sa fe ty "
to attract and hold de
posits. Some new selling
points will be necessary.

and continue to deserve it. There is no
other way in which good will can be ac
quired.
Must B e Aggressive
Being a business institution, a bank
must operate at a profit in order to live.
Sound and conservative management is
expected o f a bank, fo r therein lies the
fundamentally needful factor of security.
But, like any other business establishment,
the bank must be aggressive to make prog
ress. Progress is the index o f vitality
especially when there is competition. A
bank statement showing soundness and
magnitude wins confidence and respect fo r
the management but these tributes, while
vitally necessary, are passive and may
not adequately meet the present and future
requirements fo r effective aggressiveness.
This is where good will comes in.
The community is like the bank in that
stability and progress are the measure of

its vital force. And remember that prog
ress does not necessarily mean an unin
terrupted increase in size fo r there is an
internal coordination and strengthening
o f parts which make the organism stronger
as a whole and insure the ability to grow
when external conditions are favorable.
A bank can hope to make progress
chiefly as its community progresses. That
is the main reason fo r community coopera
tion as systematized in a Public Relations
Program. But the bank which is fully
alive to its obligation to encourage com
munity development and works for it con
sistently reaps another benefit which,
though incidental, is more direct and im
mediate. The shortest and surest road to
community favor is along the line o f in
telligent effort designed to build up home
town spirit. Thus the bank which is in
fluential in the life o f the community gains
a degree o f good will which is a powerful
attraction fo r new business.
Sound management and adequate re
sources can function to best advantage
only as good will keeps on cementing old
friendships and making new ones fo r the
institution.
This is the whole idea underlying a
Public Relations Program.
Character of Service
In building the bank’s Public Relations
Program, you will find that the preferred
methods operate along three general lines:
1. Activities which are controlled by
the bank and are obviously in the direct
interest o f the bank.
2. Those which are inspired by the bank
but require the sponsorship or cooperation
of organizations or interests outside the
bank.
3. Activities o f a community character
which originate outside the bank but in
which the bank may well cooperate.
A certain degree of tact and diplomacy
should be exercised in the handling of the
program fo r the bank. In general it is
well to bear in mind that good will is not to
be had by merely asking fo r it and that
over-oificiousness or the slightest sugges
tion o f an ulterior motive means failure.
(Turn to page 29, please)
N orthw estern Banker

N ovem ber 1933

A cm é

Interest

T a b le s

(Continuée! on page 14)

N orthw estern B anker

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

N ovem ber 1933

10000

20000

30000

40000

50000

60000

70000

80000

90000

014778
014972
015167
015361
015556
015750
015944
016139
016333
016528
016722
016917
017111
017306
017500
017694
017889

029556
029944
030333
030722
031111
031500
031889
032278
032667
033056
033444
033833
034222
034611
035000
035389
035778

044333
044917
045500
046083
046667
047250
047833
048417
049000
049583
050167
050750
051333
051917
052500
053083
053667

059111
059889
060667
061444
062222
063000
063778
064556
065333
066111
066889
067667
068444
069222
070000
070778
071556

073889
074861
075833
076806
077778
078750
079722
080694
081667
082639
083611
084583
085556
086528
087500
088472
089444

088667
089833
091000
092167
093333
094500
095667
096833
098000
099167
100333
101500
102667
103833
105000
106167
107333

103444
104806
106167
107528
108889
110250
111611
112972
114333
115694
117056
118417
119778
121139
122500
123861
125222

118222
119778
121333
122889
124444
126000
127556
129111
130667
132222
133778
135333
136889
138444
140000
141556
143111

133000
134750
136500
138250
140000
141750
143500
145250
147000
148750
150500
152250
154000
155750
157500
159250
161000

03
04
05
00
07
08
00
100
101
103
103
104
105
100
107
108
100
110
111
113
113
114
115
110
117
118
110
130
131
133
133
134
135
130
137
138
130
130
131
133
133
134
135
136
137
138

018083
018278
018472
018667
018861
019056
019250
019444
019639
019833
020028
020222
020417
020611
020806
021000
021194
021389
021583
021778
021972
022167
022361
022556
022750
022944
023139
023333
023528
023722
023917
024111
024306
024500
024694
024889
025083
025278
025472
025667
025861
026056
026250
026444
026639
026833

036167
036556
036944
037333
037722
038111
038500
038889
039278
039667
040056
040444
040833
041222
041611
042000
042389
042778
043167
043556
043944
044333
044722
045111
045500
045889
046278
046667
047056
047444
047833
048222
048611
049000
049389
049778
050167
050556
050944
051333
051722
052111
052500
052889
053278
053667

054250
054833
055417
056000
056583
057167
057750
058333
058917
059500
060083
060667
061250
061833
062417
063000
063583
064167
064750
065333
065917
066500
067083
067667
068250
068833
069417
070000
070583
071167
071750
072333
072917
073500
074083
074667
075250
075833
076417
077000
077583
078167
078750
079333
079917
080500

072333
073111
073889
074667
075444
076222
077000
077778
078556
079333
080111
080889
081667
082444
083222
084000
084778
085556
086333
087111
087889
088667
089444
090222
091000
091778
092556
093333
094111
094889
095667
096444
097222
098000
098778
099556
100333
101111
101889
102667
103444
104222
105000
105778
106556
107333

090417
091389
092361
093333
094306
095278
096250
097222
098194
099167
100139
101111
102083
103056
104028
105000
105972
106944
107917
108889
109861
110833
111806
112778
113750
114722
115694
116667
117639
118611
119583
120556
121528
122500
123472
124444
125417
126389
127361
128333
129306
130278
131250
132222
133194
134167

108500
109667
110833
112000
113167
114333
115500
116667
117833
119000
120167
121333
122500
123667
124833
126000
127167
128333
129500
130667
131833
133000
134167
135333
136500
137667
138833
140000
141167
142333
143500
144667
145833
147000
148167
149333
150500
151667
152833
154000
155167
156333
157500
158667
159833
161000

126583
127944
129306
130667
132028
133389
134750
136111
137472
13S833
140194
141556
142917
144278
145639
147000
148361
149722
151083
152444
153806
155167
156528
157889
159250
160611
161972
163333
164694
166056
167417
168778
170139
171500
172861
174222
175583
176944
178306
179667
181028
182389
183750
185111
186472
187833

144667
146222
147778
149333
150889
152444
154000
155556
157111
158667
160222
161778
163333
164889
166444
168000
169556
171111
172667
174222
175778
177333
178889
180444
182000
183556
185111
186667
188222
189778
191333
192889
194444
196000
197556
199111
200667
202222
203778
205333
206889
208444
210000
211556
213111
214667

162750
164500
166250
168000
169750
171500
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m os'

f
y

—■
-

X
*

*
>

"ASK ME ANOTHER"
Unusual Services the
American Exp ress
Company Has
Rendered
By E. M. ENGLISH
District Financial Manager,
American Express Company, Chicago

UNNING a W orld Travel Service
is something like being a clearing
house for the world’s woes and
problems, an Adjuster-in-Chief to intri
cate plans and wishes and the Answerer
o f Questions par excellance.
People
dash in with queries and demands unex
pected as a snowstorm in May and expect
solutions. One man wanted us to get him
on a ship which was already on the high
seas. W e did it though we had to charter
a plan and keep the wires humming.
A lady wanted us to find some long-lost
friends for her. Through our bank con
nections, we did it. We have sent flowers
to sweethearts, we have stood up fo r a
bride and groom and we have arranged
the travels of Oriental potentates and
American prizefighters. We have a record
and a reputation. Let us tell you about
some o f it:

“American Express, W here
A re Y o u ? ”
That was the despairing cry that rang
out through a German railroad station.
It was made by three American ladies for
whom things were not going so smoothly
in their travels through Europe— they
were not using American Express Service.
On arrival at Heidelberg their patience
was exhausted— they were ready to quit.
So they dropped their baggage and
shouted: “ American Express, where are
you?” And as one o f those ladies later
gratefully explained: “ Lo and behold,
the American Express was there!”
Standing Up for the Bride and Groom
It all started through a request received
by the New York office o f the American
Express that flowers be delivered the next
day to a young woman who was being
married in London.
The only details
given were her name and the name of the
church. The young lady’s address and the
hour o f the ceremony were not known.
The New York office said it could be done,

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

cabled the Lon
don office and re
ceived confirma
tion o f the deliv
ery of the flowers
on the following
day. Just another
service
rendered,
but much can hap
pen between cables,
and here’s the story
from the London
office:
“ The flowers were
ordered and deliv
ered to the office,
but upon making
inquiries a t t h e
church, we found
no ceremony was
to be solemnized
there on Saturday.
This placed us in a
rather awkward p o
sition, fo r although
the lady had been
calling for her mail,
she had left no ad
dress.
We tried
the American Con
sulate and other
American
institu
tions, the Chase Na
tional Bank, the Police department of
Bow street, the Faculty Office, Bishop
o f London’s Registry, and a number of
other offices . . . Finally at 1 1 :15 we
learned that she was being married at
1 1 :30 at the Henrietta Street Registry
Office, which it ten minutes distant.
We rushed the flowers off in a taxi— our
representatives arriving there before the
bride and groom. This proved fortunate
as the couple had forgotten to arrange
for witnesses, and our representatives
were able to act in that capacity.”
An American girl reporter on a pleas
ure trip through Italy, dashed into the

American Express office in Naples and
asked for help to get out to Melfi. She
had just received a cable from her news
paper out on the Pacific coast to cover
the Melfi earthquake disaster, and cover
it she must. A fter trying every means she
knew of getting out to the earthquake
area, and failing, she turned to the Ameri
can Express Company. The letter she
later sent to the Naples office tells the
story in her own w ords:
“ Mr. Williams, manager o f the Naples
office, told me that the city was full of
journalists who were trying to get to
(Turn to page 35, please)
N orthw estern Banker

N ovem ber 1933

Acme Interest

T a b le s

8 %
F o r 4 % t a b le divide b y 2.

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202000
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Days
i

1
1
1
1

1
1

II
[

(Continued on page 16)

N orthw estern B anker

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

10000

*
>

-i

^ 1

N ovem ber 1933

The Big Business Woman
1
in the Bank

H A Y E just been to another o f those
movie shows where the stenographer
captures the boss after five reels o f the
most fantastic goings-on, and the whole
idea is so humorous that I don’t know
whether or not I can stop chuckling long
enough to write a thesis on W hat Really
Goes on Behind Office Doors or not, but
something ought to be done to put the
wives right.
I f I were a wife with a husband whose
looks rated at all. or maybe I should just
say if I were a wife, fo r I really suppose
most wives think they married something
every other woman wants, I should be
wildly and justly jealous of that little
miss who sits so coyly at the husband’s
elbow day by day making meaningless
marks in her notebook. For, according to
the movies, friend husband is not thinking
about anything as unimportant as details
o f big business, oh my no, but only o f
those silken, shapely slim legs crossed fo r
sure display, like a hosiery ad. W hat’s
wrong in that picture? My dear wife,
everything! The movie “ boss” is always
divinely handsome. I have to break down
and say right here that they don’t always
come that way. Sometimes they are much
too fat and bald and have high blood
pressure. Then again, they are too lean
and gaunt and have asthma. Only once
in a blue moon the boss is true to the
movies.
Further, the secretary, according to the
movies, is always young*. She is also al
ways pretty, if not actually beautiful and
she has gorgeous long lashes that lay
Greta Garbo-like against her cheek as her
eyes are lowered in dictation.
She is
slender and clothed in Patou’s latest.
Legs— invariably the disturbing element in
the picture.
Really, the private secretary is more
often near to thirty. She is usually not
even pretty, much less beautiful, because
somehow efficiency puts its mark on a
girl’s face. Her eyes are too intelligent
and ten to one, she wears glasses ! She
wants to be slender but constant sitting
lays pounds on her hips and a business
girl doesn’t dress like a princess on $35
a week, less three cuts.
I have associated with men fo r the past
ten years in business. I have been a p ri
vate secretary. I have helped men select
secretaries and I have chosen secretaries
myself. The first thing a man wants in a
girl is efficiency— plain old prosaic effi
ciency. Believe it or not. Efficiency and
as much ingenuity as he can get along
with it. Then durability. Actually. The
fragile, flower-like clinging wisteria type
is a “ wow” in the movies, but in real life
a man says, “ They must be substantial!”
Frequent sick absences make most busy

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

B y PARALEE M. W IN F R O W
men hysterical. Then, they should like
her to have a pleasant, cheerful disposi
tion, but gushing, showy personalities are
out. Men like their secretaries to be
clean and neat. I knew a man who fired
a, girl because her neck was always dirty.
But they don’t require that they spend all
o f their salary on clothes that set the
whole office “ a stare.” A downright beau
tiful girl is really at a disadvantage in
securing a job and holding it. Now wives,
don’t “ boo” me. I know men like beauti
ful distractions, but NOT IN THE OF-

"The movies paint the big
b u sin e ss w o m an as th e
w o r ld 's m o st ro m a n tic
figure. W e , who have been
known first as 'the girl,' then
'th e s t e n o g r a p h e r ,' and
finally as 'my private sec
retary,' are flattered and
am used"

FICE. Nothing so cheapens a girl as to
try office flirtations and she usually gets
put back in her place fast enough. Busy
business men don’t take to those kind o f
annoyances. A man’s work is his li fe !
Closely woven in, o f course, are his fam
ily and his golf game, but his job comes
first. Of necessity, it must. Anything
which conflicts with it is out.
The capable secretary accelerates his
work in a quiet, perfect way. She is his
mind servant. She grows to know what
he will think in every circumstance and
what he will do, and to go around after
him, doing fo r him the things he forgets.
Just like you go around after him, in the
morning and pick up his pajamas and the
heap o f ties he has pawed through. Some
secretaries assume so much o f the respon
sibility, make the way so easy fo r the
“ boss,” that removing her from his pic
ture is painful indeed. I have seen a man
so blue and dispairing at the sudden mar
riage o f his secretary that anyone but an
other secretary would be sure he had sen
timental designs o f the most serious sort

on the girl. F or men do hate to break
in secretaries. They are always sure there
never will be another to take the place of
Miss Perkins, and left alone to teach the
new girl the ropes— oh, they would rather
drink tea every night fo r dinner for a
year! Please, wives, the next time you
hear your husband say, “ She’s a wonder
ful girl. I don’t know what I ’d do with
out her,” don’t begrudge the secretary that
compliment and don’t attach the least bit
of sentiment to it.
F or brains in a
woman are the one unsurmountable bander
to romance in the first place.
I have always held that the very formali
ties o f correct business etiquette in the
office prohibits the revelation o f a secre
tary’s personality. Her real, channing
self is always under cover to her boss.
She is shadowed always by him. She does
pretty much what he wants done, as he
wants it done. She caters to his whims.
Never does a smart girl flaunt herself fo r
ward. I should rather be asked to make a
speech to the directors of our bank than
rub up against my boss socially. I keep
thinking in terms o f the business we have
in common interest, and fo r the life o f
me, I can’t make small talk interesting as
his partner at dinner. The funny little
things I might say to any man in the
world just don’t come natural to the boss.
I don’t want to have it otherwise. But
come to think o f it, secretaries must seem
like social flops to bosses. Fancy, then if
you can, the plausibility of bosses wanting
to take them places as they do in the
movies and finally marrying them and set
ting them up in ermine and sable when
there are so many women in the world
who specialize in fascinating the “ tired
business man.”
And this is all from one side o f the
picture.
Did it ever occur to you that maybe the
secretary, if asked regarding her boss,
would come back too short to tie. “ I
wouldn’t have him if he were the last man
on earth!”
I am convinced that the love that leads
a woman to the altar closes her eyes to
at least half o f the imperfections o f her
husband. The secretary sees him as he
really is. She knows really how smart he
is. She had seen him in jams. She knows
if he is honest or if he passes the buck.
I f he places money above everything else
in the world, she knows it. There are few
men who hold their glamour as desirable
N orth w estern Banker

N ovem ber 1933

16
Acme Interest Tables

10000

20000

30000

40000

50000

60000

70000

80000

90000

130
131
132
133
134
135
136
137
138

024667
024889
025111
025333
025556
025778
026000
026222
026444
026667
026889
027111
027333
027556
027778
028000
028222
028444
028667
028889
029111
029333
029556
029778
030000
030222
030444
030667

049333
049778
050222
050667
051111
051556
052000
052444
052889
053333
053778
054222
054667
055111
055556
056000
056444
056889
057333
057778
058222
058667
059111
059556
060000
060444
060889
061333

074000
074667
075333
076000
076667
077333
078000
078667
079333
080000
080667
081333
082000
082667
083333
084000
084667
085333
086000
086667
087333
088000
088667
089333
090000
090667
091333
092000

098667
099556
100444
101333
102222
103111
104000
104889
105778
106667
107556
108444
109333
110222
111111
112000
112889
113778
114667
115556
116444
117333
118222
119111
120000
120889
121778
122667

123333
124444
125556
126667
127778
128889
130000
131111
132222
133333
134444
135556
136667
137778
138889
140000
141111
142222
143333
144444
145556
146667
147778
148889
150000
151111
152222
153333

148000
149333
150667
152000
153333
154667
156000
157333
158667
160000
161333
162667
164000
165333
166667
168000
169333
170667
172000
173333
174667
176000
177333
178667
180000
181333
182667
184000

172667
174222
175778
177333
178889
180444
182000
183556
185111
186667
188222
189778
191333
192889
194444
196000
197556
199111
200667
202222
203778
205333
206889
208444
210000
211556
213111
214667

197333
199111
200889
202667
204444
206222
208000
209778
211556
213333
215111
216889
218667
220444
222222
224000
225778
227556
229333
231111
232889
234667
236444
238222
240000
241778
243556
245333

222000
224000
226000
228000
230000
232000
234000
236000
238000
240000
242000
244000
246000
248000
250000
252000
254000
256000
258000
260000
262000
264000
266000
268000
270000
272000
274000
276000

139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
15S
159
160
161
162
163
164
165
166
167
168
16 !»
170
171
172
173
174
175
176
177
178
17!»
IS O
7
8
!»
10
11
12

030889
031111
031333
031556
031778
032000
032222
032444
032667
032889
033111
033333
033556
033778
034000
034222
034444
034667
034889
035111
035333
035556
035778
036000
036222
036444
036667
036889
037111
037333
037556
037778
038000
038222
038444
038667
038889
039111
039333
039556
039778
040000
046667
053333
060000
066667
073333
080000

061778
062222
062667
063111
063556
064000
064444
064889
065333
065778
066222
066667
067111
067556
068000
068444
068889
069333
069778
070222
070667
071111
071556
072000
072444
072889
073333
073778
074222
074667
075111
075556
076000
076444
076889
077333
077778
078222
078667
079111
079556
080000
093333
106667
120000
133333
146667
160000

092667
093333
094000
094667
095333
096000
096667
097333
098000
098667
099333
100000
100667
101333
102000
102667
103333
104000
104667
105333
106000
106667
107333
108000
108667
109333
110000
110667
111333
112000
112667
113333
114000
114667
115333
116000
116667
117333
118000
118667
119333
120000
140000
160000
180000
200000
220000
240000

123556
124444
125333
126222
127111
128000
128889
129778
130667
131556
132444
133333
134222
135111
136000
136889
137778
138667
139556
140444
141333
142222
143111
144000
144889
145778
146667
,1 4 7 5 5 6
148444
149333
150222
151111
152000
152889
153778
154667
155556
156444
157333
158222
159111
160000
186667
213333
240000
266667
293333
320000

154444
155556
156667
157778
158889
160000
161111
162222
163333
164444
165556
166667
167778
168889
170000
171111
172222
173333
174444
175555
196667
177778
178889
180000
181111
182222
183333
184444
185556
186667
187778
188889
190000
191111
192222
193333
194444
195556
196667
197778
198889
200000
233333
266667
300000
333333
366667
400000

185333
186667
188000
189333
190667
192000
193333
194667
196000
197333
198667
200000
201333
202667
204000
205333
206667
208000
209333
210667
212000
213333
214667
216000
217333
218667
220000
221333
222667
224000
225333
226667
228000
229333
230667
232000
233333
234667
236000
237333
238667
240000
280000
320000
360000
400000
440000
480000

247111
248889
250667
252444
254222
256000
257778
259556
261333
263111
264889
266667
268444
270222
272000
273778
275556
277333
279111
280889
282667
284444
286222
288000
289778
291556
293333
295111
296889
298667
300444
302222
304000
305778
307556
309333
311111
312889
314667
316444
318222
320000
373333
426667
480000
533333
586667
640000

278000
280000
282000
284000
286000
288000
290000
292000
294000
296000
298000
300000
302000
304000
306000
308000
310000
312000
314000
316000
318000
320000
322000
324000
326000
328000
330000
332000
334000
336000
338000
340000
342000
344000
346000
348000
350000
352000
354000
356000
358000
360000
420000
480000
540000
600000
660000
720000

Days
in
112
113
114
115

ms
ns

117

11!»
120
121
122
123
124
125
126
127
128

12!»

lovers under the high powered light o f one
business day after another the year round.
I f you think every secretary is out to get
her boss, I wish you would drop in on the
secretaries’ bridge club and hear the
“ talkie” all about bosses. One boss eats
onions fo r lunch and dictates immediately
thereafter. Another irritates the secre
tary by the way he drapes himself all over
his chair when he dictates. Another uses
his secretary for everything from nurse
maid for the babies to family gift selec
tor.
Another is a chronic secretary blamer.
To his higher-up, he always
says, “ The girl made a mistake.” This
will make any secretary sizzle. Once in
a while, a very young and sentimental girl
in the spring will get a “ crush” on her
boss, but a few letters after working hours
on a night when she has a heavy date with
N orthw estern Banker

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

N ovem ber 1933

u n is
m os.
in o s .
m os.
m os.
m os.

a new boy friend will extinguish that
spark o f boss devotion.
The movies paint the Big Business
Woman as the world’s most romantic fig
ure. We, who have been known first as
“ the girl,” then “ the stenographer” and
finally as The private secretary,’ are flat
tered and amused!

company’s capital, surplus fund and un
divided profits total $267,963,616.16, con
sisting o f $90,000,000 capital, $170,000,000 surplus, and $7,963,616.16 undivided
profits. The latter figure shows an in
crease o f $697,346.18 since dime 30, 1933.
The company’s total resources are $1,399,406,383.69.

Guaranty Trust
Statement

Give Him a Broom

The statement o f condition o f Guaranty
Trust Company o f New York as of Sep
tember 30, 1933, shows deposits, includ
ing outstanding checks, totalling $1,031,012,304.02, which compares with $1,002,027,142.61 on September 30, 1932, and
$1,087,621,195.12 at the time of the last
published statement, June 30, 1933. The

Every man in this college could get a
job with the city if he wanted i t !”
“ Isn’t that a rather sweeping state
ment ?”
Duty is what goes most against the
grain, because in doing that we do only
what we are strictly obliged to, and are
seldom much praised fo r it.— La Bruyere.

Should Membership
in the Federal Reserve System
Be Made Compulsory

for All State Incorporated Banks?
H A Y E not the temerity to undertake
a discussion o f this subject to a con
clusion that will result in a “ yes” or
“ no” answer. At the present time, how
ever, it would seem that the bulk of the
argument is in favor o f membership in
the Federal Reserve System.

A cross section o f the appraisal o f the
most direct benefits, to individual mem
bers, o f membership in the Federal Re
serve System, presented by a few o f my
banker friends, included : clearing items
at par, the rediscount privilege and the
supplying of currency. And the indirect
value o f the service o f the Federal Re
serve System to banking generally being
grouped largely under one head : that o f
standardizing banking and thereby co
ordinating all management efforts in sup
porting and improving the fundamentals
o f one system, fastened to a common cen
tral point or hub, with the over-all p ol
icies modified to fit the conditions o f local
communities, yet having a common point
o f anchorage, under the general govern
ing principle o f the system.
Compulsory?
However, even a complete appraisal o f
the direct benefits to be derived from the
membership o f the Federal Reserve Sys
tem would not o f necessity result in a
definite conclusion that membership fo r
state incorporated banks should be com
pulsory, because with the argument ended
there, the type o f freedom contemplated
in our constitution might still consistently
be invoked by individual bankers or
groups.
It is only when we recognize the manda
tory rights o f society to organize fo r the
greatest good for the greatest number of
people that wm may find justification fo r
compulsory measures.
Furthermore, a conclusion that mem
bership in the Federal Reserve System
shall be made compulsory must be predi
cated upon the premises that the Federal
Reserve Bank laws and policies will be
maintained in full consideration of all
bank members regardless o f size or geo
graphical position, that nation-wide or
ganization o f banks will result in sub
stantial benefits to all the separate insti
tutions, and still further, upon the

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

A discussion by A . W .
Jones, president of the
C en tral Trust and Savings
Bank of Cherokee, Iowa,
made at the 1933 Iowa
Bankers convention.
M r.
Jones concedes there are
benefits to be derived from
Federal Reserve mem ber
ship, but questions the ad
visability of making such
membership com pulsory.

assumption that this will develop the
much needed public confidence that fo l
lows organized efforts and united forces.
Less Organized
For years the banks o f the country
have been operating on a more or less
independent basis, despite the effort o f the
Federal and State systems, as well as o f
the bankers themselves, to standardize
banking practice. Regardless o f size or
location, the major part o f the routine
work, and fo r the most part the working
principles are identical, but fo r some
reason we have never been able to unite in
a broad definite way to put into effect
uniform regulation or charges for service.
Banking plays an extremely important
part in the commerce and finance o f the
country, but it is less organized than many
lines o f business that have a much smaller
influence upon the welfare o f the people.
Aside from what has been lost to the
bankers themselves, through lack o f
adoption o f sound fundamental principles
o f banking upon which to build and im
prove on a united front, the big assort
ment o f bank policies instead o f educat
ing the banking public, have served to
confuse the people generally, in the work
ings of a business that at best is largely
regarded as mysterious and not under
standable. The adoption of sound busi
ness-governing rules is the bankers pri
mary job, but little less important is that
o f educating the public to a point where

the people understand and concurrently
endorse the banking policy, which in the
last analysis is the unconscious expres
sion o f confidence.
With the intensifying of commercial
finance, under new methods, increased vol
ume, and closer contacts, the simplicity o f
business has given way to the complex o f
business.
Business Complex
To meet this changed condition all the
different lines o f business activity have
apparently been forced to organize. For
the most part, mergers and consolidations
have reduced the units, and but few types
o f business efforts has been organized so
as to leave intact the original units. The
public utilities o f the country, electric
light and power, gas and the telephone
systems give a fair example o f this method
of
organization
and standardization
through consolidation.
A t one time these power properties
were owned and operated by individual,
small corporations and municipalities, and
while the conditions under which most o f
these plants were operated were reason
ably identical, it was common knowledge
that there were about as many rate struc
tures and policies as there were plants,
which opened up the way fo r all the
people to sit in continuous judgment, pre
sumably trying to find some justification
fo r the different types o f regulations in
effect, and unconsciously doing some
standardization work that should have
been done by the management.
The
associations exercised a certain amount o f
coordinating influence, but it took years
to secure the adoption o f even the most
elementary standards o f practice, in fact
the real standardization o f the utilities
business had to await the day of consoli
dations and mergers to a point where
there were only a few heads left to sit
down at the table and determine the policy
and decide upon the fundamentals. This
more or less regretable procedure has been
the organization route to self-preserva
tion, and perhaps efficiency, but at the
expense o f the small unit and individual
atom o f our all-American economic and
social structure.
I am hopefxfi that the great unit bank
ing system o f the United States, which is
N orthw estern Banker

N ovem ber 1933

It Pays to Be
Conservative
B

anks

MUST play safe

in buying investments TO D A Y .
That is why so many are turning
to good Iowa Municipal and County
Bonds.

Their record through the

depression, the liberal yield they
afford and their steady market make
them the outstanding investment for
hank funds.

Write for our special
list for banks

directly responsible for the most remark
able development of any country in any
300 years o f history, can voluntarily find
a common ground upon which to unite
the efforts o f these units o f the American
system in solidifying a common base that
will stand the strain o f extending its long
arms o f service out through all the rami
fications o f every business enterprise
without losing those cardinal principles
o f democracy; individual liberties, the
exercise o f personal initiative, and the
economic responsibility o f citizenship.
Bringing all the banks o f the country,
both National and State, under the Fed
eral Reserve System is one way, if not the
best way, to promptly organize the banks
o f the country.
Advantages vs. Disadvantages
However, when we begin to talk about
compulsory measures we get into the
debatable field; we may be able to show
benefits and value o f service to justify
membership in the Federal Reserve Sys
tem, but our subject here goes farther than
that; it presumes an answer on the ques
tion o f making this said membership com
pulsory. W hile the value o f membership
is o f necessity one o f the first points to be
established, such amplified benefits as can
be safely predicted fo r the new order is
the proper basis fo r conclusion. In other
words while the value o f the service offered
by the Federal Reserve System is an in
fluencing agency in determining the ad
visability o f membership, the over-all
benefits that will accrue to the banking
public and the banks jointly by reason
o f such type o f organization must, in the
last analysis, determine the compulsory
feature o f membership—-which is the cen
tral point o f my subject.
I do not propose the answer to this
question, nor would I do so here had I
conviction on which to base a conclusion.
This is a fa r reaching question involving
a banking system o f which we are only a
unit.

Mail Note Forms

Carletgn D. Beh Co.
Iowa’s Largest Municipal Bond Specialists
1230 Des Moines Building, Des Moines

N orthw estern Banker

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

Phone 4-8156

N ovem ber 1933

Note forms and regulations for loans
by the Commodity Credit Corporation to
cotton producers on the unsold portion o f
the 1933 crop were mailed from Washing
ton, October 20th.
The first consignments were sent to
county agents and loan agencies o f the
Reconstruction Finance Corporation in the
cotton belt.
Oscar Johnston, director o f finance o f
the Agricultural Adjustment Administra
tion and an officer in the Commodity
Credit Corporation, announced that loans
should be available to cotton producers
immediately. Producers were advised to
obtain the proper forms from county
agents.
A previous announcement described the
eligibility requirements of producers and
lending* agencies.

Bonds and Investments

$ 2, 000, 000, 000—

A LOT of Money
Nature, Aim and Operation of Home Owners Loan Corp.

AR flung across America, a gigantic
corporation has come into being dur
ing the past three months, literally a
titan among the tremendous industrial and
banking institutions which serve the na
tion’s needs.
It is the Home Owners’ Loan Corpora
tion, created under an act o f Congress to
provide refunding facilities fo r a substan
tial proportion o f the enormous urban
home mortgage debt o f America.
Its headquarters are located in the New
Commerce Building at Washington, the
great sixteen-acre office building which
also houses the beehive activities o f the
National Recovery Administration.
During the next three years, it is em
powered to issue up to two billions o f
dollars worth of eighteen-year 4 per cent
bonds to refund mortgages on possibly
400,000 to 500,000 homes.
This is one o f the truly great fiscal op
erations o f history, involving a unique
and tremendous financial undertaking. In
the normal refunding operation, bond men
deal with a security on which the collateral
is known and established. In this opera
tion, due to the great deflation o f values
which has taken place, every individual
parcel o f the 400,000 to 500,000 homes
affected must be appraised anew, must be
studied with reference to legal aspects and
implications, must be handled as an en
tirely new business proposition.
To perform this task— literally the cre
ation, as a purely temporary emergency
measure, o f the biggest building and loan
association which the world has ever seen,
the Home Owners’ Loan Corporation has
in the past three months created, from the
ground up, an organization consisting o f
48 state offices and 208 branch offices in
key industrial and agricultural centers o f
the United States, and personnel o f twelve
thousand employes, which, although the
majority o f them will be only temporarily
employed fo r the initial operation o f
“ manufacturing the bonds,” is as fully
equipped to cope with its enormous task
as are the employes o f any private cor
poration.
Daily these men are in the field—from
Maine to California— appraising literally
hundreds o f thousands o f home whose
owners have come to them fo r relief. In

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Federal Reserve Bank of St. Louis

the branch and regional offices that stand
behind these men, busy office staffs are
sorting out almost half a million pending
applications from distressed home owners,
eliminating the tens o f thousands o f re
quests fo r aid which are ineligible under
the terms o f the act that created the cor
poration.
With a total urban home mortgage in
debtedness o f twenty-one billions o f dol
lars in this country, with probably five
billions o f that sum estimated to be in
default, even the two billions provided by
the government can deal with but less than
10 per cent o f the total value. The major

D U R IN G the next three
years the H O L C is em
powered to issue up to two
billions of dollars worth of
eighteen-year 4 % bonds
to refund mortgages on a
possible 400,000 to 500,000 homes

problem o f sorting out the applications is
in itself an operation in handling mass
correspondence unprecedented in corpo
rate history.
To Restore Realty Values
There are ten million mortgaged homes
in America. Possibly one million o f them
are in default. Officers o f the corporation,
however, believe that the funds available,
reaching 400,000 to 500,000 homes, will
tend to stabilize the entire real estate mar
ket, resubstantiate values and reinstate
equities to a point where this marginal
operation will return health to the entire
real estate structure, and, by its reper
cussions, take the strain from even the
half million distressed home owners who
are not eligible under the act.
But just how big is two billions o f dol
lars?

A statistician lias estimated that if one
were to start counting 1, 2, 3, 4, etc., to
10 and then repeat— it would take 60
years— twenty-four hours a day of count
ing— to count up to two billions.
It is that number o f dollars with which
the corporation must deal.
While bonds will be actually used in
the operation, these bonds will represent
dollars which someone sweated for in the
past, saved and invested in a mortgage—■
and dollars, too, that the home owning
debtor must work for, earn, and repay in
future years to clear his mortgage indebt
edness.
Bond men in Wall Street will tell you
that a two billion dollar issue is unprece
dented except during the days o f the
W orld War. It is not inapt to compare
this great refunding operation to a prob
lem o f actually “ selling” up to the two
billions o f bonds.
Bond men, again, would say that the
bonds were “ distributed.” But in every
day language what will actually happen is
that home owners will go to their cred
itors and, with the cooperation o f the
Home Owners’ Loan Corporation agents,
work out— or, in other words, “ sell” — a
refunding operation. The facts that the
interest on the bonds is guaranteed by the
government o f the United States, and that
the principal is to be amortized by the
home owner to the corporation over fifteen
years, and that the corporation will thus
collect a great poolcash fo r final repay
ment of principal, make this “ sale” a de
sirable investment from the creditor’s
point o f view.
But, nevertheless, multiple individual
transactions— to the 400,000 to 500,000
total— must each take place individually
across a table or desk, each based on hours
o f appraisal and contact in the field. On
such a basis, the two billion dollar opera
tion must be consummated.
The Nature of Distribution
A business man might consider the situ
ation as comparable to the problem o f
distributing or selling perhaps one bil
lion dollars worth of merchandise in the
next year— if a billion dollars o f the
bonds should be made or written in that
period. This sum equals the annual peak
N orthw estern B anker

N ovem ber 1933

NEW TIMES mean
NEW PROBLEMS
£

Due to the complexity of present

conditions constant supervision of the bond portfolio of
a bank is an absolute necessity.

Bonds selling in the

same price range today may have a great difference in
intrinsic value and future possibilities. A careful analysis
of basic factors and conditions surrounding an individual
company or an entire industry will often indicate the
exchange of one bond for another, involving no addi
tional expenditure of cash, to be an extremely judicious
move.
However, when many banks and bankers are confronted
with the task of so strengthening a bond portfolio, they
hesitate to trade because of costs entailed and the possi
bility that continued trading might cause additional loss.
Iowa banks are securing valuable assistance in such
trading problems from the statistical department of
Polk-Peterson Corporation.
B y means of intensive
daily studies of conditions of securities, the values be
hind them, the influence of reorganization plans and
other factors, such as the N R A and government policies,
this highly specialized organization is able to make
sound recommendations on trading and otherwise
strengthening holdings.
The wide benefits of this expert service are available to
you. Send in your list for analysis, without obligation,
and call at our office when in Des Moines and discuss
your problems with our officers.

POLK-PETERSON
CORPORATION
INVESTMENT SECURITIES
Des Moines

Building, Des Moines

Telephone 3-3245

Branches:
O ttum w a, Waterloo,
Sioux City, Spencer, Davenport
PRIVATE WIRES TO ALL OF THE LEADING FINANCIAL MARKETS

N orthw estern B anker
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Federal Reserve Bank of St. Louis

N ovem ber 1933

volume o f sut4i a great American institu
tion as the General Motors Corporation,
which, to do its billion dollar volume re
quired 20,000 dealerships in contrast to
the 257 regional offices o f the Home Own
ers’ Loan Corporation. It is also compar
able to the approximately billion dollar
annual volume o f the Great Atlantic &
Pacific Tea Company which operates
17,000 stores— in effect, branch offices— to
transact its business. The answer is, o f
course, that the 500,000 salesmen and em
ployes o f General Motors dealers work in
smaller unit lots o f cash, selling automo
biles that average in price between $500
and $1,000. Yet the problem o f the Home
Owners’ Loan Corporation is still one o f
the relatively small blocks, for bonds will
he sold in denominations o f as low as $50
to $100, and the average mortgage, despite
the $14,000 top limit permissible under the
act, is expected to be in the $1,000 to
$2,000 class.
Sound Mortgages Made
Created to fulfill an emergency need,
the Corporation is not in the business o f
taking over mortg’ages held by getting in
stitutions which can afford to carry them.
Neither is it designed to take over from
such institutions any group of mortgages
which is worthless and which the institu
tions would be glad to get rid of.
It is in one specific division of mortgage
indebtedness that the Corporation will
function ; namely, the sound mortgages on
which, through loss o f employment or
other distressed conditions consequent on
depression, the debtor is unable to fulfill
his obligations.
This group alone is large enough to re
quire the full attention of the Corporation.
Here are sound mortgages underlaid by
valid security. The money which the mort
gages represent has been invested either
by a private individual or by banks, build
ing and loan associations, insurance com
panies or other money lending institutions.
The individual who borrowed the money
fo r the construction or purchase of a home
has used the funds o f others and has prom
ised to repay those funds with interest.
Under today’s conditions he is unable to
repay his pledged principal, often even
unable to pay his pledged interest or fu l
fill his social duty o f paying taxes, without
which the communities of the nation can
not function in their police and protective
services. Banks and other money lending
institutions can carry a certain percent
age o f these debtors, provided they can
meet their interest payments, particularly
where the principal is safe because of the
soundness of the initial mortgage. It will
be appreciated, however, that a point
comes in any such situation where the ac
cumulation of even these sound mortgages
on which principal installments cannot be
repaid— arid interest is in default— be
comes too grave a strain on the resources
o f the banking institution. It is in this

21
situation that the Home Owners’ Loan
Corporation can afford relief to creditor
and debtor alike through refinancing- the
mortgages; replacing a non-income pro
ducing investment with one that produces
an income o f 4 per cent guaranteed by the
government o f the United States.

N O . 4 OF A S E R I E S I N T R O D U C I N G
T H E M E M B E R S OF OU R O R G A N I Z A T I O N

Cash Loans
One o f the phases o f the operation of
economic significance is the fact that un
der the act creating the Corporation cash
loans may be made, (First) up to 50 per
cent o f appraised value on homes unen
cumbered by a first mortgage, but in real
danger o f being lost to their owners by
reason of delinquent taxes, assessments or
repair liens, and, (Second) up to 40 per
cent o f appraisal, in cases where the mort
gage holder is unable or unwilling to ac
cept bonds.
No private mortgage lending institution,
it will be appreciated, will take a prop
erty in unsound physical condition. On
the contrary, the normal practice is to in
clude sums necessary fo r such repairs in
new mortgages that are written. Proper
ties which their owners have allowed to
depreciate during depression years would
tend, unless relief measures were offered,
increasingly to become a distressed fea
ture o f the real estate market, dragging
down all values.
The availability of
money for repair purposes through the
Home Owners’ Loan Corporation not only
permits the reconstitution o f values in
these properties but contributes visibly,
immediately, and directly to employment
throughout the essential building trades of
America, which account fo r the pursuits
o f four million workers in this country.
The monies thus provided go directly
into pay rolls fo r carpenters, plumbers,
masons, electricians, plasterers and other
essential groups in the community. The
payment o f taxes through monies made
available goes immediately into maintain
ing the services o f government, their vis
ible values being apparent in restoration
o f pay rolls to school teachers and in the
continued service o f the police, firemen,
street maintenance and the administrative
and judicial functions o f the community.
Refunding Mortgages in Closed
Banks
A final factor in the operation is the
service rendered whereby the bonds are
made available in certain cases to refund
the sound mortgage assets o f closed banks.
Many debtors, whose basically sound
mortgages are held by closed banks, are
unable to pay principal or interest at pres
ent. This brings up the menace of fore
closure, and its consequent harmful effect
on all local realty values, including all
other properties on which banks have
loaned money, and, in any case, leaves the
closed institution without income from
these mortgages.
Exchange o f these sound mortgages (on

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Federal Reserve Bank of St. Louis

Robert H. “ Bob” McCrary,
Des Moines representative of
Jackley-Wiedman & Com
pany, entered the bond busi
ness in 1925. One of Iowa’s
most widely known golfers,
Bob won the Trans-Missis
sippi championship in 1929
and 1930, going into the
semi-finals of the Western
R O B E R T H. M cC R A R Y
Amateur in the latter year.
Fie returned in 1931 to win the Iowa Open tournament.
Associated with Jackley-Wiedman & Company since 1931.

Bringing with him many
years of sales experience and
a state-wide acquaintance,
Fred Gaehner (pronounced
Gay-ner) joined JackleyWiedman & Company, Des
Moines bond house specializ
ing in Iowa Municipals, in
1931.
Both qualifications
have given Fred a splendid
FR E D E.
background for accomplish
ment in selling high grade Iowa Municipals.

GAEHNER

J a c k l e y -W ie d m a n
&> C o m pa n y
DES MOINES
Register and Tribune Bldg.
C E D A R R A P ID S

C H A R IT O N

Phone 3-5181
M ASO N C ITY

N orthw estern Banker

OMAHA

N ovem ber 1933

22
eligible homes) foi* Home Owners’ Loan
Corporation bonds immediately provides
the bank with a new income guaranteed by
the government, frees money fo r disposal
by the receivers and hastens the day when
the bank again can be opened and conduct
its affairs to the benefit alike of its de
positors and stockholders.
Analysis o f the social and economic sig
nificance o f the Home Owners’ Loan Cor
poration function will demonstrate there
fore that it involves not only the individual
distressed home owner but spreads its
benefits throughout all classes of society
to debtor and creditor alike, to the pay
rolls of the nation, to the extension of

credit, to the increase in the velocity o f
money and the final resubstantiation o f
values, not only in its own area of the
home ownership and the real estate fields
but in all phases o f the national recovery.
Industrial leaders and business men who
have been in Washington during the sum
mer months o f day and night activity that
resulted in the creation o f the corpora
tion’s distributing system o f regional o f
fices say that the establishment o f a cor
porate organization o f this size and scope
in a three-month period constitutes a ma
jo r achievement in organization. Today,
with the turn o f autumn, that organization
is completely effected, and in the past tel

W ell q u a lifie d

. . . .

FIG H T THE G O O D

with every facility for handling the

business of out-of town banks or
bankers. Your account is invited.

it y

AND

a t io n a l

TRUST

C O M P A N Y
208

G M A C

S o u tli

days loans have begun to be closed
throughout the field. To date possibly not
more than 1,200 loans have actually been
paid out, although more than 60,000 have
been tentatively approved. Officers o f the
corporation expect the peak load o f clos
ings to come within the next three months,
and sixteen hours a day work is the rule at
the New Commerce Building where every
mail brings new batches o f documents fo r
warded from branch offices in every part
o f the United States. Once the initial task
o f “ making the mortgages through the
field appraisals and legal transactions is
accomplished, however, the organization
will drop its thousands o f emergency field
appraisers and attorneys who operate on
a so-called “ per diem” basis, and will sta
bilize on the foundation o f a small person
nel, administering only the routine job o f
receiving amortization, reinvesting funds
and paying off bonds callable by lot over
the next fifteen years.

ank

o f C h ica g o
L aSalle

Street

SHORT TERM TROTES

FIG H T

(Continued from page 9)
go a long* way in restoring our economic
equilibrium. W e know that this is the
desire o f our government and we can be
assured o f cooperation from that source.
Surely most o f the depositing public has
come to realize the value o f a good, sound
bank in their midst and consequently we
should feel more certain o f more coopera
tion from them in the future. Especially
will this be true, if we use our intelli
gence by working together in this great
business o f banking in an ethical manner,
installing methods of charging a reason
able amount fo r services rendered and for
bidding any practises that are not good
banking; standing firmly together on rules
fo r better and sounder banks. I hope this
will result in bank stockholders realizing
some satisfaction in owning stock in a
bank rather than being forced to feel that
it is a liability or the same as a red hot
poker; too hot to hang on to and too hot
to let go of.
Lead the W ay Out

available in limited amounts
upon request

G en er a l
A c c ep ta n c e
Executive Office "

N orthw estern B anker

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Federal Reserve Bank of St. Louis

Broadw ay

OFFICES

M o tors
C o r p o r a t io n

at 57th S t r e e t ~ New T or\. N- Y
PRINCIPAL

N ovem b er 1933

CITIES

Now to refer to those words used in the
beginning o f this article, wisdom, cour
age, fortitude and determination. W e are
at war. Not like the Revolutionary War,
Civil War, W orld War, or any other war
fought with guns and gun powder. It is
a war against depression and involves the
entire world. America must and will lead
the way out. Its results are devastating
and its costs tremendous. It has undoubt
edly cost more in terms o f wealth than
any war ever fought. Yes, it has short
ened and even terminated the lives of
many people. It has wiped out the life
time earnings o f many, many people. A
good many o f these victims are in the de
clining years of their lives and in those
cases their chances fo r again earning an
amount sufficient fo r them to live comfort-

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Federal Reserve Bank of St. Louis

Ce n tral Hanover correspondent services are
f o u n d e d on e x p e r i e n c e , f r i e n d li n e s s and
careful organization.

C e n t r a l

H a n o v e r

BANK AN D T R U ST COMPANY
NEW YO RK

--------------------------------------- Representative Offices in --------------------------------------L O N D O N ,

P A R I S ,

B E R L I N

A N D

B U E N O S

A I R E S

N orthw estern Banker

N ovem ber 1933

24
ably in their remaining days, is not so
favorable. Many bankers and bank stock
holders have turned over all that they have
accumulated endeavoring to have their
depositors from loss. They feel that they
have been through a real Avar all right and
unlike the soldier aa4io is not Avithout
honor, the banker whose bank has closed
has suffered the mental agony, has turned
over all that he had and is disgraced in
the very community where he has labored
energetically and constructively fo r years.
He helped his people Avhen they needed

help and Avhen he Avas in distress and his
back Avas up against the Avail, they couldn’t
pay him back.
Yes, there Avere a feAV
cases o f dishonesty and crookedness, but
those cases Avere indeed the exception.
They Avere feAV and far betAveen.
The
men and Avomen comprising the banking
fraternity should be and are as honorable,
courageous and as intelligent class o f peo
ple as can be found.
Values are still demoralizing and Ave
have a long battle ahead. W e are making
progress; the government is leaving no

stone unturned to turn the tide and the
banks are doing their part. I believe that
our banks will again reach that place
Avhere they will merit and have the confi
dence o f the depositing public. Let us
fight the good fight Avitb all our might.
Watch the loans carefully, battle that,
“ Other Real Estate,” problem, keep the
expenses doAvn and earnings up, and use
all the wisdom, courage, fortitude, deter
mination, vision and anything else Ave
might have to add to that and Ave Avill Avin.
Fun To Fight
I do not recall the name of the author
o f the folloAving verse, Avhich I memorized
some years ago, but it fits in Avell here:

Guaranty Trust Company
of New York
140 Broadway
Fifth Avenue at 44th St.
LONDON

PARIS

Madison Avenue at 60th St.

BRUSSELS

LIVERPOOL

HAVRE

ANTW ERP

Condensed Statement, September 30, 1933

IT ’ S FUN TO FIG H T
It’s fun to fig’ht
When you knoAV you’re right,
And your heart is in it too.
Tho the fray be long
And the foe be strong,
And the comrades you have are ferv.
Tho the battle heat
Brings but defeat
And Aveariness makes you reel.
There’s joy in a life
That can knoAV such strife
And the glory and thrill you feel.

RESOURCES
Cash on Hand, in Federal Reserve Bank,
and due from Banks and Bankers__________$
U. S. Government Bonds and Certificates____
Public Securities_______________________________
Stock of the Federal Reserve Bank___________
Other Securities_______________________________
Loans and Bills Purchased____________________
Real Estate Bonds and Mortgages____________
Items in Transit with Foreign Branches_______
Credits Granted on Acceptances______________
Bank Buildings________________________________
Accrued Interest and Accounts Receivable___

188,929,109.20
435,239,835.23
76,692,283.22
7,800,000.00
24,587,525.77
539,174,100.08
2,403,520.17
7,972,507.99
94,064,946.82
14,133,359.38
8,409,195.83

$ 1,399,406,383.69
LIABILITIES
Capital __________________$
Surplus F u n d ____________
Undivided P rofits_______

90,000,000.00
170,000,000.00
7,963,616.16

N orthw estern Banker

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Federal Reserve Bank of St. Louis

267,963,616.16
6,183,130.69
94,064,946.82
182,386.00

1,031,012,304.02
$ 1,399,406,383.69

N ovem ber 1933

It’s fun to dare
In the face o f despair,
When the last lone chance seems gone,
And to see hope rise
From the angry skies
Like the promise o f rosy darvn,
For victory’s sAveet,
When it crowns defeat
And you knorv this much is true,
It’s fun to fight
When you know you’re right
And your heart is in it too.

Getting Married
$

Accrued Interest, Miscellaneous Accounts
Payable, Reserve for Taxes, etc.________
A c c ep ta n c e s________________________________
Liability as Endorser on Acceptances and
Foreign B ills _____________________________
D ep o sits_______________ $ 1,007,638,346.77
Outstanding C hecks___
23,373,957.25

When the Avise ones p a n t
That y o u s im p ly c a n ’ t,
It’s fun fo r a fighting man
To laugh and try
With a daring eye,
And lose Avhen the game is done.
It’s fun to knoAV that the Aveary foe
Paid dearly for Avhat they Avon.

The trvo simplest souls in the village
desired to marry.
In order to help them the minister put
in rather more instructions than usual.
When they reached the middle of the
service he whispered to the kneeling
couple: “ Follow me up the aisle,” and
proceeded to the altar.
As he reached it he looked around. An
astonishing sight met his gaze. The bride
and bridegroom, Avith as much dignity as
possible, were approaching on all-fours.
Mary— She let that fool kiss her.
Marie— But Avorse still, she let that kiss
fool her.

Insurance

It Pays to Sell
" In

suran ce

a t

In s u r e s "

The Public Is Permitted to Choose the Company in Which They
Wish to Place Their Coverage, But in Most Cases They Rely
Upon the Agent to Give Them Good Insurance
A SU A L T Y insurance caused plenty
o f grief the past few years for both
agent and company. The hardest
line to write successfully is Workmen’s
Compensation insurance because the law
is so liberally construed and there are so
many avenues of fraud. Industries have
been running on part time and in some
cases
the
compensation
payments
amounted to more than the employe’s
earnings.
The minimum compensation payments
and medical limits have remained the same,
while payrolls, which are the basis for
premiums, have been cut in half. The re
turn premium on the previous policy some
times paid the premiums on the policy
for the following year.

By JOHN TUMELTY
Keokuk, Iowa

Autom obile Insurance

A Great Injustice
One great injustice is where an employe
had little or no employment fo r weeks or
months before; if he became injured the
first hour or the first day, lie received
compensation based upon full time for
the number o f days allotted to his par
ticular employment. Knowing that no
job awaited him upon recovery he pro
longed the disability period as long as
possible.
Employes learned that they had a good
chance to collect from some insurance
company if they reported an accident
while working fo r some firm or individual,
even though no one witnessed the so-called
accident. No report was made fo r days
or Aveeks and some o f these disabilities
Avere, no doubt, o f long duration. They
consisted o f hernia, which in most cases
should not be compensated, even though
it did happen while employed; blood poi
son, sunstroke, rheumatism, sciatica, fallen
arches and flat feet.
The assured generally took the side of
the claimant because it relieved him of
some responsibility and since lie had in
surance, saw no reason fo r the company
questioning the claim. A fter forcing the
company to pay out all the premium and
in some instances several times the pre
mium, fo r several years in succession, the
assured began to see Avhy the company

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Federal Reserve Bank of St. Louis

Avlio are defective and likely to cause ex
pense fo r medical attention and com
pensation. While this may appear tough
on those dismissed it affords those with
curable ailments to correct them before
they become chronic or incurable.
Public Liability Insurance should be
written with every Workmen’s Compensa
tion policy.

JOHN T U M E L T Y

should increase his rate or cancel oft the
risk.
At the inception of the law in IoAva
some of the doctors treated the insurance
company instead o f the workman, they
didn’t appreciate the fact that they were
getting cash instead o f a book account,
Avhich was seldom collected.
They soon
learned that reasonable cash fees Avere
worth while and made their schedule ac
cordingly.
These conditions have been
helped by the agent, where he kept in
close touch Avith each case and the doctor
Avould discharge the patient when lie was
assured the employe Avas able to assume
his regular duties.

Assured Cooperates
The assured has learned that experience
on his risk and class enters into the rate
and is noAV cooperating with the company,
doing everything to prevent accidents and
asking only those Avith merit to be paid.
Some employers are requiring a physical
examination after employment is given;
in this Avay they are able to cull out those

Automobile Liability and Property
Damage insurance has been a fairly satis
factory line fo r both companies and
agents. Abuses have crept into the busi
ness to some extent and claims have been
paid where no liability existed. The old
and uninsured car is and has been the
menace o f the road.
Every time an automobile accident oc
curs those involved naturally see the other
felloAV in the wrong. Sometimes they get
into heated arguments and again some take
it calmly and check up on their insurance.
They arrange the conditions so both were
at fault and demand their property re
paired at the expense o f the insurance
companies.
Agents have been known to arrange set
tlements that Avere unjust and even the
police officer has given orders to the in
sured person to settle for damage, even
though the other fellow caused the acci
dent, Agents have been called upon to
settle damages to other cars, Avhere no
liability existed, because their assured Avas
friendly with the other party or has busi
ness connections which they couldn’t a f
ford to disturb.

Last but not least, the shyster lawyer
takes cases without merit and companies
settle rather than get a good attorney and
fight the claim. So long as Ave are afraid
to contest unjust claims the racket is
bound to grow and the honest purchaser
of insurance must pay the bill.
A t A n y Price
Other griefs have come to the estab
lished agent by the additional agents en
tering the field. A great many had posi
tions or jobs but lost them and took up
N orthw estern Banker

N ovem ber 1933

26
insurance with the hope o f making a liv
ing. It was hard to secure business at
published rates so they got companies
willing to take business at any price or
rebate most o f their commission.
Established agents in some toAvns se
cured questionable companies to meet this
demand rather than try to convince the
assured that this is no time to lower the
character o f their protection. Because
the other fellow has a policy in such and
such a company is no reason why some
one else should purchase a policy in that
same company. The Insurance Commis
sioner safeguards the interests o f the in
suring public as best he can, but the public
is permitted to choose their company and
relies upon the agent in most cases to give
them good insurance.
O f course this condition has been an
noying but we have always had these
“ business fleas,” if Ave didn’t most o f us
would be inclined to drift along and
would soon find our business passing to
some other agent.
In conclusion let me say, “ stick to your
faith,” sell the best; in other Avords sell
“ Insurance that Insures.”

N EW S A N D VIEW S
(Continued from page 8)
indicates that the Northern Trust Com
pany in its Statement o f Condition as o f
September 29, 1933, shows an increase in

deposits of a year ago o f $46,400,000 Avith
a total o f $179,707,000. Cash Resources
are up $5,300,000, totalling $36,768,372.
Loans and Discounts stand at $27,958,850
compared with $35,819,196 a year ago. To
tal Resources have increased to $196,314,256 from a total o f $148,616,149 in 1932.
Savings Deposits amount to $43,684,750.
In September, 1932, they were $33,240,926.
TULIUS K. W A IB E L , Advertising and
Publicity Director o f the Continental
Illinois Bank and Trust Company o f Chi
cago, Avrote a very interesting article on
“ Investment Advertising” A\Thich appeared
in the Chicago Journal o f Commerce. In
the course o f his remarks Mr. Waibel
pointed out that, “ In bygone days many
bonds Avere bought on the reputation o f
the underwriter or dealer. It is unthink
able that this practice has ceased by reason
o f security legislation.
Human nature
being what it is and investors being hu
man, it f oIIoavs naturally that investors
would be favorably disposed toAvards
houses with which they had been enabled
to maintain a name acquaintance through
institutional advertising.”
In my opinion, the value o f investment
advertising Avill not be lessened but
strengthened by the neAV Federal Securi
ties Act.
Obviously, those investment
houses which have been operating Avithout
regard to the Avelfare o f their clients will
pass out o f the picture, but the neAV ones

C O N T I N U O U S CAPABLE
MANAGEMENT
“ If every policyholder had demanded the maximum
cash loan value of his policy on December 31st last, the
Company’s cash and bonds alone, sold at their market
value as of that date, would have come within $391,531 of
In addition to this cash and

bonds, the Company had other assets valued in excess of
$18,000,000, not including $10,000,000 in policy loans.”
-—From the remarks o f President O. J. Arnold
at N wN L ’s recent agency convention.

This exceptional financial position is not the result of chance,
but is due to many years of continuous capable management.
N W N L is unique in having a Board of Directors composed of
leaders in the business world, each independent of the other,
directing the Company’s affairs solely in the interests of its
policyholders.

No r t h

w estern

Na t i o n a l

LIFE INSURANCE COMPANY
O. J. ARNOLD. PiucsiMjrr

S T R O N G * Minneapolis.MInn. —L I B E R A L

N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem b er 1933

AROLD y . BULL, formerly cashier
o f the First National Bank o f Ma
son City, has been elected cashier and
director of the National Citizens Bank of
Mankato, Minnesota.
Harold’s many
friends will wish him every possible suc
cess in his neAV position.

The Fruit of M an y Years of

meeting these demands.

that AA’ill come in their place will be better
organized and better able to serve their
customers.

H A V E just been reading “ MELLON’ S
M ILLION S” by H A R V E Y O’CON
NOR, and I had no idea that the Mellon
fortune had so many varied ramifications,
although, o f course, I knew that it was
one of the three greatest piles o f gold
in the country.
Referring to the activity o f the Mellon
family in the banking field, Mr. O’Connor
refers to the Union Trust Company of
Pittsburgh, which he says, “ Could report
that it had paid out in dividends in its 40
years of existence a round sum o f $50,000,000 and that another $63,500,000 had
been placed in surplus. Its dividend rate
was 200 per cent a year, reputedly the
highest bank return in the country. At
Christmas it doled out a 6 per cent divi
dend as a mere tidbit. Shares were quoted
at $20,000 each.”
I believe that at the peak o f the boom
in 1929 that stock in the First National
Bank o f New York was quoted at $8,500
to $9,000 a share, so that $20,000 a share
fo r Union Trust Company o f Pittsburgh,
represents without any question the high
est price ever paid for bank stock in the
history of the United States.

A R N E Y SCHNECKLOTH, super
visor o f personnel o f the Federal
Land Bank o f Omaha, Avas the principal
speaker at the recent meeting o f the Real
Estate board o f Sioux City. He explained
the various operating units o f the bank
and the set-up the administration hopes
to complete. He stated that the Omaha
bank Avas closing loans at the rate o f 45
per day at this time, and with appraisals
already made, hoped by November 15th
to attain the record o f closing 100 loans
per day, and by December 1st, 200 per
day. The force o f appraisers has been
increased from 12 on March 1st o f this
year, to 312 at the present time. Mr.
Schneckloth left no doubt in the minds of
his hearers that the Federal Land Bank
Avas functioning at maximum capacity and
the voluminous preliminary work neces
sary to the negotiation o f such a great
number o f loans will soon be reflected in
the daily record of completed loans.

READ Avith a great deal o f interest the
complete text o f A D O LF H IT L E R ’ S
speech Avhen he announced the withdrawal
o f Germany from the League o f Nations,
and further participation in the Disarm
ament Conference.

27
W ith daily newspapers carrying big
headlines o f another war in central
Europe, I read carefully to find the in
flamed passages in Hitler’s remarks which
might give these newspaper correspond
ents such an impression, but frankly I
could find no such statements.
As a matter o f fact, Chancellor Hitler
very emphatically denied that Germany
was interested in carrying on a campaign
o f aggression, and said so in this lan
guage :
“ As a National Socialist I, together
with all my followers, decline on the very
basis o f our Nationalistic principles to
conquer the people o f a strange nation
who will not love us anyway by sacrificing
blood and lives o f those who are dear
and precious to us. It would be a tre
mendous event for the entire humanity if
the two peoples could once fo r all ban
force from their common life. The Ger
man people are ready for this. While we
frankly claim the rights granted to us by
the treaty themselves, I will say just as
frankly that, beyond this, there are no
more territorial conflicts as far as Ger
many is concerned.”
To me that does not sound very mili
taristic— but maybe he is only “ fooling

come under government deposit insurance,
the cost will be heavy on all member banks.
I do not believe that the cost will even
under such circumstances outweigh the
values to the individual bank. Certainly
there must be1thousands of communities in
this country w-here the potential advan
tages to the existing banks equal those that
we see in our own town.”
LBERT
H. W IG GIN , formerly
president o f the Chase National
Bank, and now- retired, testified before the
senate stock market investigation com
mittee that he was receiving now, although
retired from the bank, $100,000 a year,
and that the bank paid him almost $1,000,000 in salary and bonuses from 1929 until
the present time.
Mr. W iggin testified that as a director
or member of finance and executive eom-

mittees he received the following from
various corporations:
American Locomotive Co., $300 a month.
American Sugar Refining Co., $300 a
month.
Armour and Company, $3,300 a month,
later $1,000 a month, now nothing.
American Express Co., formerly $3,000
a year.
Brooklyn, Manhattan Transit Co., for
merly $20,000 a year.
International Paper & Power Co.,
$2,000 a year.
Stone and Webster, formerly $1,500 a
year.
Underwood, Elliot and Fisher, formerly
$2,000 a year.
Western Union, $3,000 a year.
Finance Corporation of Great Britain
and America, $5,000 a year.

T IS interesting to remember that at
the end of the fiscal year 1919 THE
GROSS GOVERNM ENT DEBT OUT
STANDING W A S $25,482,000,000, and
that today the government debt IS IN
E XC ESS' OF $23,000,000,000, although
from 1919 to June 30, 1930, the debt was
reduced by some $9,296,000,000.
On the basis that we are now operating
it is expected that by next June, which
will be the end o f the next fiscal year,
that w-e will be equal to the high level
o f 1919.
There are some critics who believe that
we are trying to borrow our way back to
prosperity.

HICAGO daily papers carried the
advertisement last month o f a public
auction o f “ The Sumptuous Furnishings
o f One o f Chicago’s Most Beautiful Man
sions, that of GEORGE M. REYNOLDS,
1444 Lake Shore Drive.”
Among- the articles to be auctioned off
were the follow ing: “ Steinway Louis X V
Grand Piano, Marble and Bronze Foun
tains and Figures, Bronze Fireplace F ix
tures, Magnificent Banquet Suite, Exquis
ite Hand Made Rugs, The Finest o f Lace
Curtains, Draperies and Beautiful Orna
ments, Artistic Furniture, etc.”

E. CRUM, JR., president o f the
. Bedford National Bank, of Bed
ford, Iowa, believes that the advantages
o f insured deposits far outweigh the dis
advantages, and in a recent article ex
pressed his view- by saying, “ The fact is
if bad banking is tolerated in banks, which

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Federal Reserve Bank of St. Louis

N orthw estern Banker

N ovem ber 1933

28
HE FREN CH IN FLA TIO N between
1790 and 1796 at least taught Na
poleon Bonaparte one lesson, because
when he took over the consulship condi
tions were appalling, and the government
was banqrupt, the army was unpaid, and
further tax collections seemed impossible.

At the first cabinet meeting Bonaparte
was asked what he was going to do, and
he replied, “ I will pay cash or nothing.
While I live I will never resort to paper
money.”
According to history he never did, and
France under his rule commanded all the
gold she needed.
And in this country we have P R E S I-

DENT ROOSEVELT which is another
reason why currency inflation in the
United States will not be tolerated.

The recent special session of the Texas
legislature passed a bill, which the governor
has signed, providing fo r a state deposit
T. H ITC H , president o f the Iowa
. State Bank o f Fort Madison, Iowa, insurance corporation similar to the one
provided in the Banking ct A of 1933. The
in a recent letter said :
purpose o f the bill is to furnish insurance
“ Our officers and directors join me in
o
f bank deposits in state banks in Texas,
expressing our congratulations on the
which do not desire to join the federal
quality of the N or th w ester n B a n k e r ;
corporation. Among the important provi
we have all enjoyed it fo r its broad view
sions o f the Texas law is one that the in
of various things and matters pertaining
surance fund is to be raised by assessments
to the banking business. The colored in
against the loans of the member banks.
sert is a wonderfully fine thing.”
Membership is optional.
The banking
Thank you, Mr. Hitch.
commissioner of Texas shall certify before
January 1, 1934, to the president o f the
corporation those banks that are solvent
and entitled to the benefis o f the act. It is
intended that member banks shall invest
in the corporation 5 per cent o f their capi
tal stock. The banks must pay to the cor
poration also at the rate of % o f 1 per
cent per annum until January 1, 1937, on
all loans upon which interest is earned ; at
the rate o f $4 o f 1 per cent per annum
thereafter to January 1, 1940 ; and after
January 1, 1940, at the rate o f $4 o f 1 Per
cent per annum.

There Are N o Delays
There are no delays in presenting livestock drafts by
our collection department. In fact, speed is their watch
word and every efficient method of handling live
stock items has been worked out in our thoroughly
modern, long experienced collection service.
Bankers who send their Sioux City livestock items
direct to this institution avoid costly delays.
Make certain of immediate returns or credit on the
proceeds of your livestock items by sending them direct
to the Live Stock National Bank.

Live Stock National Bank
S I O U X C IT Y , IO W A
Affiliated with N orthw est Bancorpor at ion
“ T H E B A N K A T TH E Y A R D S ”

OFFICERS
A. G. Sam, President
C. L. Fredricksen, Vice President
M. A. Wilson, Cashier
W. G. Nelson, Asst. Cashier
W. C. Schenk, Asst. Cashier

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Federal Reserve Bank of St. Louis

State Insurance
O f Bank Deposits

Vice President
Guaranty Trust Company of New York
announces the appointment of Kingsley
Kunhardt as a vice president. Mr. Kunhardt was formerly investment trust offi
cer o f this company.

Farm Loan
Fees Lower
The Federal Land Bank of Omaha an
nounces that combined applications for
loans from either the Federal Farm Land
Bank or the Land Bank Commissioner,
or both, now need to be accompanied by
a fee o f only $10 in connection with com
bined applications fo r $5,000 and under.
Under the old regulations, a fee of $10
fo r each, or a total o f $20, was possible.
Where combined applications are received
fo r amounts exceeding $5,000, rates may
be higher.
Applications fo r both commissioner’s
loans and land bank loans, as before,
should be made through the secretarytreasurers o f the local farm associations.
The Omaha Land Bank has sent out in
structions to each local association, pro
viding fo r the reduction in application fee
on the combined loan. It should be noted
also that the local farm loan association
may add $1 to this fee for the secretarytreasurer’s work in filling out the applica
tion blank, thus making the total fee re
quired o f the borrower $11.
Poverty treads upon the heels o f great
and unexpected riches.— La Bruy ere.

N ovem b er 1933

South Dakota
Bank News
Officers South Dakota Bankers
Association
P r e s i d e n t . . . ................. E. R. Heaton
Yankton
Yice President...............L. M. Larsen
Wessington Springs
E. R. HEATON
President

Executive Manager. Geo. A. Starring
Huron

GEORGE A. STARRING
Executive Manager

succeeded to the management o f the Chi
cago branch o f the RFC when Howard P .
Preston, his predecessor, became deputy
governor o f the federal reserve bank of
the seventh district.
Mr. Moore has been in the banking
business fo r many years, starting his ca
reer with the First National Bank at
Fonda, Iowa. Later he spent six years as
vice president of Farmers Loan & Trust
Co., Sioux City, Iowa, and in 1926 he
became executive vice president o f the
First National Bank & Trust Company.

Name Co de Group
Bandit Trap

Named Federal Heads

The Farmers State Bank o f Kaylor,
which was robbed by bank bandits last
spring, when the son o f the cashier was
shot, has installed a bandit trap in the
entrance to the bank. The vestibule is
converted into a trap with iron bars on
all sides and the doors are equipped with
electric locks controlled by push buttons
located in the interior of the bank. The
inner door of the vestibule is always locked
except as opened by the bankers to admit
people whom they know. Strangers must
identify themselves by using a telephone
similar to those in use in the vestibule of
apartment houses.

Otto Meyhaus o f Sioux Falls and W il
liam C. Rempfer o f Parkston have been
named as South Dakota’s representatives
on the new federal bank deposit liquidat
ing committee fo r the ninth federal reserve
district, Tom Scanlon, assistant superin
tendent of banks, reported.
Mr. Meyhaus is president o f the Corn
Exchange Savings Bank o f Sioux Falls,
and Rempfer is cashier of the First Na
tional Bank of Parkston. They were se
lected by C. J. Jaffray, district chairman,
to assist in the deposit liquidation pro
gram in South Dakota.

Huron Clearing House
New National Bank
An application to start a new national
bank in Rapid City has been sent to the
comptroller o f the currency, and prospects
for starting such an institution are con
sidered very good. The board of trustees
who are liquidating the Pennington Coun
ty Bank are behind the move.
The new bank will be called the Rapid
City National Bank, and have a capital
o f $100,000. An appraiser from the fed
eral banking department is expected to
make the required inquiries. The plan
has been given tentative approval by the
banking department and the Minneapolis
office of the R. F. C. and would include
the taking over o f the banking depart
ment and the Minneapolis office of the
R. F. C. and would include the takingover o f the banking house and fixtures of
the defunct institution, with the acceptable
assets included.

Found Guilty
Floyd Strain, 28, formerly of Sioux
City, is destined to spend the rest o f his
life in the South Dakota state prison at
Sioux Falls after Judge A. B. Beck of
Lake Andes, sentenced him fo r partici
pating in the holdup o f the Kaylor, S. D.,
bank April 20tli.
The jury which heard murder charges
against him for the slaying o f Fred Yoll,
21, following the robbery brought in a
verdict o f “ guilty” on a charge o f bank
robbery and “ not guilty” o f a charge of
murder.

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Federal Reserve Bank of St. Louis

A clearing house association was formed
at a meeting o f Huron bankers recently.
The organization, to be known as the
Huron Clearing House Association, will
be headed by Charles E. Barkl, president
o f the Farmers & Merchants Bank.
Other officers named include Henry M.
Hanten, vice president o f the National
Bank o f Huron, vice president, and F. I).
Greene, president of the Security National
Bank, secretary-treasurer.
The association will serve as a clearing
house fo r checks and other exchange and
will work for uniformity on the conduct
o f banking business in Huron.
“ Organization o f the association has
been under consideration fo r some time,”
Secretary Greene explained. “ The enact
ment o f the Banking Act o f 1933 seemed
to make definite action along this line ad
visable.”
A t the meeting, attended by representa
tives o f all three Huron banks, articles o f
association were adopted.

To Grand Rapids
Ira A. Moore, formerly of Sioux Falls
and at present vice president o f the First
National Bank & Trust Company there,
was recently elected president o f the new
Peoples National Bank of Grand Rapids,
Mich.
F or a number o f years Mr. Moore was
actively identified with banking circles in
Sioux Falls until he went to Chicago in
1931 to take a position with the Recon
struction Finance Corporation. Mr. Moore

E.
R. Heaton, president of the South
Dakota Bankers Association, appointed a
South Dakota bankers code committee
which will operate under the national code
approved by President Roosevelt effective1
October 16th, it has been announced from
the association office at Huron.
With William C. Rempfer of Parkston
as chairman the committee will consist of
T. M. Brisbine, Woonsocket; R. E. Dris
coll, Lead; J. M. Lloyd, Yankton; S. L.
Allen, Aberdeen; W . B. Penfold, Belle
Fourche; J. R. McKniglit, Pierre, and
Charles E. Barkl, Huron.
Mr. Heaton as president, will be an exofficio member of the committee, and
George A. Starring, Huron, executive
manager o f the state association, will be
secretary.

3 R E A S O N S W H Y BANKS
SH O U LD ADVERTISE
(Continued from page 11)
Do not be too hasty or emphatic in
claiming credit fo r the bank. I f a certain
activity is successfully worked out through
an organization, let that organization have
the credit in the eyes of the public and its
members will be all the more grateful for
the bank’s suggestion and cooperation.
Credit which is voluntarily given is worth
many times any credit which is asked for
or demanded.
In introducing suggestions to organiza
tions or individuals whose cooperation or
sponsorship is desired, it is more diplo
matic to ask them what they think o f the
idea and wouldn’t they like to take it up
than to lay it down as something which the
bank is bound to have put over. More
enthusiastic work is insured by “ selling”
them on the idea and letting them go to
it, The bank will not be helped by any
thing which might be twisted into an ap
pearance of dictating or condescension. A
good faith, straightforward application o f
the service will build a desirable name for
the bank as conspicuously being an inter
ested citizen and a good neighbor.
Bear in mind that the officers o f your
bank are already men o f acknowledged
position in the community and that there
are occasional possibilities for tactfully
N orthw estern Banker

N ovem ber 1933

30
capitalizing: their prominence to the added
advantage o f the bank.
And remember always that you are
working fo r the bank, that its progress in
business is in a way an index o f your suc
cess and that the institution’s community
usefulness which you are seeking to build
up can be made an important contributing
factor in establishing your bank as “ the”
bank o f the community.
Desirable Community Contacts
As the member of the bank’s staff han
dling community contacts, it will be ad
visable to acquaint yourself with the key
officers or individuals representing lead
ing community interests or activities.

Probably you know most of these al
ready or know who they are but in any
event it will not be necessary or desirable
to advise them in advance that the bank
is going in fo r community cooperation on
a systematic basis. The best approach is
to wait till a suggestion comes along in
the service which calls fo r the cooperation
o f a certain organization and then use it
as an introduction; simply put up the
idea as something which may appeal to
the organization and in which the bank
would be glad to cooperate or to see done.
In the long run your program may in
clude the Avide range o f contacts listed
below. It will be enough fo r you at the
start to go over the list, figuring in your

HE M EA S U R E

OF V A LU E

of a C IT Y C O R R E S P O N D E N T
is its ability and desire to serve.
The facilities of this bank are com
plete for the prompt handling of
any business.
W e would like to prove both
our a b ility and desire to serve
you in Sioux City.

mind who to contact with and how, as the
occasion arises. Here’s the list:
The Newspapers: You will find them
up on their toes to help in any community
project. Many o f the service plans can
be initiated by one or more newspapers
as their own promotions, thus more closely
cementing a highly desirable relationship.
The County A g en t: I f you have one and
his work is popular he will be glad to get
behind any project of agricultural interest
and benefit. He will also be valuable as
an adviser in agricultural matters.
Commercial Club: Contact not only the
secretary but also the usually small group
o f really live, Avorking members.
Retailers, Manufacturers and Jobbers
Organizations: Same contacts as Com
mercial Club.
Service Clubs and Civic Organizations
(not of a commercial character) : These
would include bodies like Rotary, Kiwanis,
Lions, etc., improvement leagues and other
associations o f a specialized community
character not elseAvhere specified.
Lodges and Orders: Such as American
Legion, Masons, Elks, K. C.’s, etc.
Women’ s Organizations: Literary, mu
sical, uplift and gardening.
City and County Officers: Particularly
those in touch with community finances
and health.
Parents-Teachers Association: I f any,
and city and county superintendents o f
schools.
Farmer Organizations.
“ Scout” Organizations: Boy Scouts,
Girl Scouts, Campfire Girls (executives).
You Avill readily see the sense in this
suggestive list and be able to amplify it as
occasion arises. But it is important not
to talk very much about what the bank is
“ going to do.” I f you make neAV contacts
let them be on the basis of some specific
activity which may interest them. I f your
bank’s community policy is left to be rec
ognized by its performance— as it surely
will be— rather than by promises, it will
be of infinitely more value in every way
to all concerned.

Bad Memory
P r o f : “ Do you knoAV Avhat happened
in 1776?”
Frosh: “ 1776? Gosh! I can’t even
remember what happened last night.”

IRST N A T IO N A L B A N I /
IN

SIOUX

A . S. Hanford, President

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Federal Reserve Bank of St. Louis

CITY
Frederick R. Jones, V ic e Pres.

Fritz Fritzson, Cashier

“ Can any o f you,” the teacher asked,
“ tell me Avhat ‘amphibious’ means, and
give a sentence to illustrate?”
A bright little Negro held up his hand.
“ I knoAV, sail! It’s fibbing. Mos’ fish
stories am fibious !” — Boston Transcript.
Leary: “ Is that fellow McFall all right
to take on a fishing trip ?”
W yse: “ Is he? Say, besides doing the
cooking he’ll think up lies for the Avliole
bunch.”

N ovem ber 1933

Ne br a s k a

State Convention

Bank News

AT OMAHA

Officers Nebraska Bankers
Association

R. H. BA RB ER
President

President........................ R. H. Barber
Paxton
Chairman Executive Council..........
..................................H. A. Schneider
Plattsmouth
Treasurer................... C. P. Brinkman
Omaha
Secretary................... Wm, B. Hughes
Omaha

Discuss Deposit Plan
Two hundred members of the Nebraska
Bankers Association met in Lincoln for
a discussion of the feasibility of state
banks taking* advantage o f their option
to participate in the federal deposit guar
anty plan.
The plan is set out in the banking act
o f 1933, more familiarity known as the
Glass-Steagall bill.
William B. Hughes, secretary of the as
sociation, said that no general decision
was made, nor was there any marked ex
pression o f opinion among the member
ship. The nature o f the meeting, he said,
Avas purely instructional.
A. B. W ood, Bartley, chairman o f the
association’s special committee o f state
banks on the banking act, presided. Other
members o f the committee are L. C. Farwell, DuBois, and L. R. Coufal, Howells.

Named Chairman
The appointment o f W . Dale Clark,
president o f the Omaha National Bank
as chairman o f the advance gifts commit
tee o f the Omaha Community Chest
eleventh annual campaign, October 31st to
November 9th, has been announced by
W . F. Cozad, general chairman.
“ W e look upon Mr. Clark’s acceptance
o f this difficult post as extremely fortunate
fo r the forthcoming campaign,” said
Chairman Cozad.
This is the second year that Mr. Clark
has held the post.

Choose Officers
Stockholders o f the Winside Citizens
State Bank met recently to choose direct
ors in anticipation o f reopening. The fo l
lowing were named: G. G. Haller, G. A.
Mittelstadt, Henry Fleer, John Drevson o f
Hoskins, and Mrs. Cora Schmode. The
directors met and named these officers:
President, G. G. Haller; vice president,
G. A. Mittelstadt, and cashier 0. H. Olson.

Nov. 15th and 16th, 1933
SPEAKERS
T. L. Davis, Omaha.
E. E. Placek, Wahoo.
R. H. Barber, Kearney.
H. A. Schneider, Plattsmouth.
Dr. Harold Stonier, NeAV York City.
A. B. Wood, Bartley.
Prof. Raymond Moley, New York
City.
Russell A. Algire, New York City.
Douglas Malloch, Chicago.

WM. B. HUGH ES
Secretary

upgrade and expects to see much better
conditions generally after January 1st.
Mr. Davis said corn is three times as high
as a year ago, and that the price o f wheat
is much higher now than a year ago.
He cited the instance o f a farm which
he recently sold, stating its receipts fo r
this year Avill be four times as much as last
year.

State Convention
State bankers o f Nebraska Avill hold a
special conference in connection with the
Nebraska Bankers Association meeting,
November 15th and 16th, in Omaha. The
conference has been suggested to consider
the bank deposit guaranty laAv which goes
into effect fo r national banks.
T. L. Davis, president of the Omaha
Clearing House Association and vice president. o f the First National Bank, will give
the address of Avelcome at the convention.
Emil E. Placek, president o f the First
National Bank o f Wahoo, will respond.
R. H. Barber, o f Kearney, will give the
president’s address, and the chief speaker
the first day Avill be Dr. Harold Stonier,
educational director, American Bankers

H E AD Q U AR TE R S
Fontarmelle Hotel

Association, N gav York City, whose sub
ject will be “ Your Customer in Your
Bank.”
Prof. Raymond Moley Avill be chief
speaker on the second day, talking on “ The
Permanence of the NeAV Deal.”

Unrestricted
C. R. Anderson announces that the
Farmers State Bank o f Saronville opened
for unrestricted business on October 2nd.
This bank has been in business over
40 years and no depositor has ever lost
a dollar entrusted to its care. It is pay
ing 100 per cent on all its deposits.
Mr. Anderson says, “ W e think that
President Roosevelt will bring about a
new system o f banking which Avill prevent
the disastrous changes in price levels
AA-hich is the cause of most o f the bank-

L IV E S T O C K N A T IO N A L B A N K
O

Statement of Condition, September 30, 1933
RESOURCES
Loans and Discounts.................... $1,693,697.19
Bonds and Securities.................
63,417.59
Stock in Federal Reserve Bank
16,500.00
Banking' House ............................
49,000.00
Furniture and Fixtures.. . . . . . .
None
Other Real Estate.......................
1.00
U. S. Gov’t Se
curities ...........$1,920,132.87
Cash, Sight Exch.
and Due from
Fed. Res. Bank 1,838,291.68 3,758,424.55

LIABILITIES
Capital .......................................... $ 450,000.00
Surplus ..........................................
100,000.00
Undivided Profits .......................
63,843.29
Unearned Discount ...................
12,039.59
Reserved for Taxes, Interest,
etc...................................................
25,101.95
Dividend Payable Sept. 30, 1933
6,750.00
Deposits :
Public Funds—
Secured ___ $ 232,465.32
Other Deposits 4,690,840.18 4,923,305.50

$5,581,040.33

Securities Deposited with Federal Reserve Bank and United States Government
to secure Public Funds as required by law.
PAR
VALUE

CARRIED
ON BOOK S

MARKET
VALUE

Trade Upturn

U. S. 4th 4 H Liberty
City of Omaha 4 %

A prediction that business will soon in
crease in the Omaha trade territory Avas
made last month by F. H. Davis, president
o f the First National Bank o f Omaha.
He said business is noAV definitely on the

This Bank Has NO Affiliated Companies
Member of Federal Reserve System and Omaha Clearing House Association

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Federal Reserve Bank of St. Louis

1933-38
3-1-1936

$260,000.00
5,000.00
$265,000.00

$262,210.00
5,000.00

$267,475.00
5,100.00

$267,210.00

$272,575.00

N orth w estern Banker

N ovem ber Í933

32
ing troubles and also stop unscrupulous
men from forming combinations and
through misrepresentations filch billions
of dollars from the people o f the United
States through the sale of worthless se
curities and also maintaining prices on
industrial products out o f any reasonable
proportion to the prices paid for agricul
tural products and labor.
“ The time will soon come when more
fixed prices will be the rule and a fair
ratio established between the prices of
the products of industry and agriculture.
Credit will be established on a sound
basis, and this can never be done unless
the debtor can depend on being able to
pay his debts with the same amount of

commodities or labor which would have
discharged the debt when made."

W ant Fcdera I Funds
Plans fo r aiding restricted state banks
in Nebraska to obtain funds from the
Federal Reconstruction Finance Corpora
tion by issuing debentures against their
earnings as security have been vetoed at
Washington, and a new scheme is now
being formulated to accomplish the same
thing in another way.
The revised proposal is that banks shall
issue preferred stock fo r the sale to in
dividuals, and that the purchasers will
then deposit this stock as collateral se

curity fo r loans to the banks by the Re
construction Finance Corporation.
State Bank Superintendent Luikart
conferred on this plan with Attorney
General Good and Frank Matthews of
Omaha, Nebraska, counsel fo r the federal
corporation. The attorney general holds
that it can be followed under the state’s
constitution and laws.
Because of the provision in Nebraska’s
constitution that holders o f bank stock
shall be subject to double liability, the
Reconstruction Finance Corporation re
fuses to buy preferred stock which banks
here might issue, although it is doing so
in other states where that rule does not
apply. However, if the owners of such
preferred stock are willing to pledge it
as security fo r federal loans, the corpora
tion stands ready to advance funds that
will assist in putting restricted banks back
on a 100 per cent basis.

Visit the International Live Stock Exposition at
Chicago Union Stock Yards, December 2 to 9, 1933

The Drovers' Latch String is O ut

N.EXT MONTH the 1933

International Live
Stock Exposition opens its doors to the public.
The International has long been recognized as
the corner stone of the Breeding Industry— a
show where champions of the Live Stock world
compete for the purple. And Chicago cordially
invites you.

Following a long established custom for this
gala week, the Drovers is making special prep
arations to welcome a host of out-of-town
hankers and their friends.
W e invite you to make the Drovers
your headquarters during your visit.

r o v e r s
N A T IO N A L B A N K
TRU5T#5AVTNGS BANK

Union Stock Yards - Chicago, 111.

'he holiday windows of Chicago’s Department Stores— known the world over for their
gorgeous displays— will be featured during International Week.

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Federal Reserve Bank of St. Louis

Elect Officers
The stockholders o f the Farmers State
Bank o f Lexington, held a meeting on Oc
tober 11th fo r the purpose of electing a
member to fill the vacancy made by the
death o f A. E. Grantham. The vacancy
was filled by the election of Mrs. Lily K.
Grantham.
The passing of Mr. Grantham also left
the office o f president vacant, and the
board elected J. H. Roberts to this posi
tion. Mr. Roberts was associated in bank
ing with Mr. Grantham fo r more than
26 years. The other officers remain the
same.

Omaha Business
Upturn in business in Omaha is indi
cated by a 3.6 per cent gain in bank clear
ings, 28.8 per cent gain in grain shipment
and 34.8 per cent in livestock receipts
over a year ago, according to figures com
piled by the chamber o f commerce. Bank
debits, building permits and grain receipts
showed a decline.

Entertains Associates
Gwyer H. Yates, president of the
United States National Bank, Omaha, was
host last month to executive officers of
Nebraska banks affiliated with the North
west Bancorporation, at a luncheon and
“ get-together" meeting in the Paxton
hotel.

Meet in Auburn
Representatives o f the banks of Ne
maha county met in Auburn recently and
held an important session. The purpose
was to discuss the bankers code under the
NRA and devise ways and means of com
plying therewith. Other problems that
confront the bankers were also considered.

More Nebraska News
Page 40
N ovem b er 1933

33
becomes a member o f the board of direc
tors.
Mr. Bull had been affiliated with the
First National Bank o f Mason City, a unit
o f the Northwest Bancorporation, for 20
years and lived almost all his life at Mason
City.

M in n e s o ta
Bank News
Officers Minnesota Bankers
Association

W IL L IA M DUNCAN, Jr.
President

President................. William Duncan, Jr.
Mankato
Vice President.................D. J. Fouquette
St. Cloud
T reasurer.............................Oluf Gandrud
Benson
Secretary............................... George Susens
Minneapolis

Third Group Meets
Herbert G. Swanson o f the Drovers Ex
change State Bank was re-elected secre
tary and treasurer o f the third district
group of the Minnesota Bankers Associa
tion at the annual meeting. Other officers
elected were H. R. Kurth o f Hutchinson,
president ; and A. B. Larson, Faribault,
vice president.
Speakers were Elmer T. Benson, state
commissioner o f banks; J. M. Peyton,
form er commissioner of banks, now chair
man o f the board o f the Federal Reserve
Bank in Minneapolis; Otto Bremer o f St.
Paul, in charge o f the federal home loan
program in this district and George
Susens, secretary o f the bankers associa
tion.

Jaffray Heads Board
C. T. Jaffray o f Minneapolis president
o f the Soo Line Railway and the First
Bank Stock Corporation, has been ap
pointed chairman of the Deposit Liquida
tion Committee for the Ninth Federal Re
serve District.
Mr. Jaffray will be in charge o f the
appraisal o f assets o f banks closed in the
Northwest this year, and, on the basis o f
these valuations, the RFC will lend gov
ernment money to depositors.
Mr. Jaffray will continue as chief exec
utive o f the Soo Line and First Bank
Stock corporation, he said Tuesday night.

Affiliate Sold
Assets o f the Bane-Northwest Company,
security affiliate o f the Northwestern Na
tional Bank for the past three years, have
been sold to Thrall, West & Co., E. W .
Decker, president of the bank announced.
“ Provisions of the banking act o f 1933
require that banks which are members o f
the federal reserve system, divest them
selves o f any security affiliates engaged
principally in the underwriting or distri
bution o f investment securities,”
Mr.
Decker explained.
Personnel of the new securities com
pany fo r the most part includes former
executive officers o f the Banc-Northwest
Company. Members of the staff joining
in the purchase o f the assets o f the Banc
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Federal Reserve Bank of St. Louis

Reopened
GEORGE SUSENS
Secretary

Northwest include, Henry D. Thrall, David
R. West, Robert L. John, Dewey F.
Greunhagen and W . A. Simonton.
Mr. Thrall will serve as president of
the new concern, Mr. West, vice president,
Mr. John, secretary-treasurer, and Mr.
Greunhagen and Mr. Simonton, vice presi
dents. Offices o f the investment company
have been opened on the street floor of the
Northwestern Bank building.

Talks to Bankers
Small-town bankers from all parts of
Minnesota were addressed recently in
Minneapolis by Leslie Newton, Milwaukee,
president and chief counsel o f the Inves
tors Economic Service, Inc. He also spoke
as a guest speaker before the Kiwanis
Club. '

W ant Loans
Minnesotans have made 8,187 applica
tions fo r loans totaling nearly twenty mil
lion dollars since the Federal Home Own
ers’ Loan Bank began operation, Otto
Bremer, general manager o f the Minnesota
branch, announced last month.
Because the bank has been opened only
since September 5th, comparatively few
transactions to refinance mortgages on
small homes have been completed.
Most o f the petitions for federal refi
nancing have come from city dwellers,
Bremer said.

Ladies Meet
Approximately 180 women attended an
informal dinner meeting o f the Women’s
division o f the St. Paul Chapter, American
Institute o f Banking, held recently.
Miss Dorothy Goth gave a report on the
national convention o f the institute in Chi
cago in June.

Cashier at Mankato
Harold Bull, formerly of Mason City,
Iowa, has taken the position o f cashier at
the National Citizens Bank, Mankato.
The bank has been without the services
o f a cashier since P. D. Beaulieu moved to
Austin. Since that time Y . A. Batzner
has been acting in the capacity o f both
vice president and cashier. Mr. Bull also

First State Bank of Isanti has reopened
according to announcement by Elmer A.
Benson, state banking commissioner. Mr.
Benson also announced the consolidation
of the Meadowlands State and First State
Bank o f Floodland.

Assistant Cashier
Arthur C. Tarras has been elected assist
ant cashier o f the First National Bank,
Winona, by its board o f directors and ap
pointed manager o f the bank’s investment
department to succeed Fred W. Reeve who
has resigned.
Mr. Tarras, who has been affiliated with
the First Trust and Savings Bank and the
First National Bank since 1920, was assist
ant manager o f the bond department under
Mr. Reeve. He will assume his new duties
at once.

Head Association
C. C. Elkjer of Montevideo was named
president o f the West Central Minnesota
Clearing House Association at its organ
ization meeting in Benson. C. E. Melbey
o f Kerkhoven was named secretary.
Bankers o f Chippewa, Kandiyohi, Lac
que Parle and Yellow Medicine Counties
attended the meeting.

Named Secretary
Robert F. Mactavish is secretary and
comptroller of the Northwest Bancorpora
tion. He already held the office o f comp
troller and was elected to the additional
post o f secretary by the directors to suc
ceed David R. West, who resigned to enter
the securities business. Mr. Mactavish
entered the banking business at the Bank
o f Scotland in Edinburgh. He came to
the Northwestern National Bank in 1905
and was made assistant treasurer o f the
Bancorporation in 1930 and its comptrol
ler last spring.

George H. Prince Dead
George H. Prince, for many years a
leading banking figure in the Twin Cities
and the northwest, died recently o f a heart
attack. He was stricken as lie stepped
from an elevator on the fifth floor o f the
First National Bank in St. Paul and died
within a few minutes.
Seventy-two years old, Mr. Prince was
chairman o f the board o f the First Bank
Stock Corporation, whose two leading
affiliates are the First National Bank o f
Minneapolis and the First National Bank
Northwestern Banker

November 1933

34
o f St. Paul, and whose banking operations
cover virtually all o f the ninth federal
reserve district. He was also chairman of
the board of the First National Bank of
St. Paul.

and H. William Blake, vice president and
trust officer, Empire National Bank and
Trust Company, St. Paul, secretary-treas
urer, A. W . L. Wallgren, assistant secre
tary and assistant trust officer, First Na
tional Bank and Trust Company, was
named chairman o f the executive com
mittee.
W . E. Brockman, assistant secretary o f
the Northwest Bancorporation, was speak
er at the meeting.

Elected President
The Corporate Fiduciaries Association
of Minneapolis at its annual meeting
elected M. K. Mark, trust officer o f the
Minnesota Loan and Trust Company, as
president for the succeeding year.
Other officers elected were 0. H. Odin,
assistant trust officer, Marquette Trust
Company, and Kenneth B. Law, assistant
cashier, Lake City Bank and Trust Com
pany, Lake City, Minn., vice presidents,

LIVE

Heads Investment Group
David R. West o f Minneapolis, vice
president o f Thrall, West & Co., is the
new chairman o f the Minnesota group o f
the Investment Bankers’ Association of

STOCK

PUAT I O M A X
o f
U N I O N

II Y \ K

C J n J ^ a x^ o
S T OC K

Y ARDS

A T THE C LO SE O F BUSINESS SEPTEMBER 30, 1933
R E S O U R C E S
Cash and due from banks........................... $
U. S. Government Bonds...........................
U. S. Government Bonds to secure cir
culation ......................................................
Other listed and marketable bonds at pres
ent market or below.................................
Commercial Paper ......................................
Loans and Discounts...................................
Real estate loans on improved property,
representing no more than 50% of pres
ent-day valuations ...................................
Federal Reserve Bank stock.....................
Redemption Fund with U. S. Treasurer..
Bank building, free and clear of encum
brance ........................................................
Furniture and fixtures.................................
Other resources ..............................................

3,214,374.51
1,550,000.00
750,000.00
622,775.87
570,000.00
2,495,327.45
238,094.46
37,500.00
37,500.00
450,000.00
1.00
73,968.07

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

L I A B I L I T I E S
Capital............................................................$
Surplus ..........................................................
Undivided profits and reserves...................
Circulation ....................................................
Other liabilities ............................................
Deposits ........................................................

1,000,000.00
250,000.00
355,096.61
750,000.00
7,355.12
7,677,089.63

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

HELPFULLY SERVIN G CHICAGO’S MAJOR INDUSTRIES SINCE I8681

Northwestern Banker

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Federal Reserve Bank of St. Louis

FEDERAL

November 1933

RESERVE

Resigns Reserve Post
Curtis L. Mosher, assistant federal re
serve agent o f the Federal Reserve Bank
of Minneapolis since its organization in
1914, has resigned that office, effective
January 1st, it was announced by John N.
Peyton, chairman of the board and federal
reserve agent. Mr. Mosher is well known
throughout the northwest as an authority
on business, agricultural economics and
finance, and has a wide reputation as a
speaker on those subjects. He was one of
the founders o f the North westt Shippers’
Advisory board.

Heads Land Bank

STATIM EW T OF CONDITION

MEMBER

America. He was elected at the annual
meeting of the group to succeed Julian B.
Baird, St. Paul, retiring chairman. Other
officers named fo r the coming year are
Justus F. Lowe, Justus F. Lowe Co., Min
neapolis, vice chairman; R. C. Mess, Paine,
Webber & Co., Minneapolis, secretarytreasurer; W . A. Simonton, Don L. Good
man and E. C. Kibbee, Minneapolis, and
N. P. Delander, Harold E. W ood and H. E.
Abernathy, St. Paul, members of the exec
utive committee.

SYSTEM

F.
H. Klawon, who has been president
o f both the St. Paul Federal Land Bank
and the Intermediate Credit Bank since
1928, was named president of the Interme
diate Credit Bank alone and Roy A. Nel
son o f Minneapolis was named to succeed
him as head o f the land bank in recent
action taken by the board of directors
which controls both institutions.
Mr. Nelson is now receiver of the South
ern Minnesota Joint Stock Land Bank.
The change o f executive setup followed
a visit o f Henry Morgenthau, Jr., gover
nor o f the federal farm credit administra
tion, to the nortlrwest.

Reorganized
A list o f unlicensed national banks
whose reorganization has been approved
as o f September 30th follows, with the
location, name o f bank, amount o f frozen
assets and amount o f unrestricted deposits
listed respectively.
M INNESOTA
Bemidji -—- Northern National Bank,
$425,000 and $18,000.
Lake Crystal— First National Bank,
$680,000 and $44,000.
Lyle— First National Bank, $278,000
and $2,000.
Mankato— National Bank of Commerce,
$412,000 and $22,000.
Winthrop— First National Bank, $256,000 and $25,000.
Total, $2,051,000 and $111,000.

More Minnesota News
Page 42

North Dakota Bank News
Officers North Dakota Bankers Association
President.....................................................................................D. R. Green
Grand Forks
Vice President..........
Oakes
Treasurer...................
Fargo
Secretary...................
D. R. GR EEN

Elected Cashier
John Will, formerly Carson, Grant
County banker, lias taken active charge
as cashier and manager of the First Na
tional Bank in Garrison, replacing C. J.
Ehlerst whose resignation took effect on
the first of October. He has been con
nected with the bank since last May.
The new Garrison bank chief has been
connected with the Northwestern Bancorporation about three years. He is mar
ried and has three children.

Over a Million
Total footings o f the Grafton National
Bank have reached $1,001,503, making a
million dollar bank in Grafton fo r the
first time in its history. A. C. Idsvog,
president and managing officer declares
business during the last few months has
shoAvn a decided increase.

Deposits
North Dakota banks had $57,465,000 de
posits June 30, 1933, as compared with
$63,990,000 December 31, 1932, according
to the review o f the Federal Reserve Bank
of Minneapolis. Their loans had fallen to
$31,000,000 from $42,000,000, investments
to $21,000,000 from $23,000,000. They
had more actual cash on hand, the item
cash and due from banks amounting to
$13,000,000 as compared with $10,000,000
six months previously. The state had 217
banks June 30 as compared with 228 the
last of December.

Semingson Replaced
Appointment o f Adam A. Lefor, Dickin
son banker, as state examiner to replace
Gilbert Semingson was announced last
month by Governor Wm. Danger. The
change was effective October 20. Lefor
had been a banker at Dickinson for many
years and has taken an active part in the
Nonpartisan league.
Semingson had been appointed to a
term expiring in March, 1935, but under
a law enacted by the last legislature, his
term expired July 1st, when the new la w
became effective.
He had been affiliated with the banking
department for 16 years. Semingson be

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Federal Reserve Bank of St. Louis

Fargo

came a deputy bank examiner in 1917,
wit h offices at Minot, and in 1921 was ap
pointed bank examiner. Previously he
had been cashier o f a bank at Grano, N. D.

Unclaimed
Strange as it may seem, there is more
than $80,000 lying- unclaimed by about
8,000 North Dakotans or former residents
o f this state who can have their share fo r
the asking.
District Judge John B. Lowe o f Minot,
before whom all legal matters pertaining
to closed state banks are brought by L. R.
Baird, the state receiver, revealed that
there is $80,740.39 on deposit in the Bank
o f North Dakota belonging to depositors.
Two thousand depositors never called at
the postoffice to get their checks represent
ing dividends from the bank in which they
had their money when the institution
closed.
Six thousand others apparently received
their checks, but they have never been
cashed.

since March 4th, more than one million dol
lars in new money poured into the com
munity, most of which represents the
initial dividend on deposits in the bank
when the old institution closed.
R. J. Bridgeman is president o f the re
organized institution with Fred R. Orth as
executive director.
C. J. Murphy is legal adviser, D'r. M. W .
Murray is vice president ; Murray, Bridgeman, Murphy and Orth are directors.
Other members o f the board are W. R.
Vanderhoef, O. H. Bridston, George L.
Colburn, O. S. Hanson, and R. D. Camp
bell. Carther Jackson is cashier and trust
officer.
THE F IR S T International Bank o f
Williston received its charter and opened
fo r business on August 18, 1933. This
bank assumed the deposit liabilities of the
First National Bank o f Williston, which
discontinued business and went into vol
untary liquidation. The officers and di
rectors o f the new bank are as follow s:
Directors, Alex Stern, William Stern,
W . S. Davidson, J. C. Canning and W il
liam W eil; officers, W. S. Davidson, presi
dent, and F. E. Stewart, cashier.
CLAY LAR IM O R E has been elected
director and vice president o f the Elk Val
ley State Bank, Larimore, succeeding J. R.
Carley, who has resigned.
W. P. CAM PBELL has been elected
cashier o f the Security State Bank, Dunseith, succeeding Harry E. Falk, who has
resigned.
F. R. O FTE D A H L has been elected
cashier o f the State Bank o f Bremen, suc
ceeding Albert Hope who has resigned.

Named President
Attorney A. P. Paulson was elected
president of the American National Bank
and Trust Company, Valley City, by the
board o f directors o f the local institution,
succeeding Henry E. Nelson.
Mr. Paulson has been long a resident of
Valley City and is widely known through
out this section o f the state as a man o f
fine standing and unquestioned integrity.

Larimore Bank Open
The Elk Valley State Bank of Larimore
has opened fo r regular business on the
order o f the state banking department
with no restrictions on new deposits. The
bank had been closed since the bank holi
day, March 4th.

Open in Grand Forks
Climaxing six months o f intensive effort
in which J. F. T. O’ Connor, former North
Dakotan and now comptroller o f the cur
rency, took a leading role, the new First
National Bank o f Grand Forks opened its
doors last month.
With the opening o f the bank, closed

"A S K ME A N O T H E R "
(Continued from page 13)
Melfi but not having much luck. ‘There’s
only a chance, but if you’re game, I ’ll
try to fix you up,’ he told me.
“ And he d id ! With a car and a chauf
feur; the manager o f his travel depart
ment, Mr. Adolph Cliquet, was guide,
protector and assistant; a luscious lunch
from the Excelsior, camera and cartons
o f films and a special letter o f introduc
tion and entreaty designed to smooth my
path with the Fascist guards. All this
within the space o f half an hour.
“ From then on it was easy if somewhat
uncertain sailing. Mr. Cliquet proved
himself an excellent photographer and in
terpreter as well as companion. Seven
teen hours later I was filing a cable that
appeared on page one way over on the
Pacific coast within a few hours.
“ Do you blame me for contending the
American Express is synonymous with
service, and the only friend a traveling
American needs, no matter what his
mission ?”
Northwestern Banker

November 1933

36
A hoy, There! Travelers Cheques
Overboard

Plifladeliiliia’s
L a r g e s t ...
an d
O ld e st

H ank

One hundred and thirty
years ago The Philadelphia
National Bank occupied a
leading place among the
forty banks then in exist
ence. Today this institution
still maintains its position
of leadership among twenty
thousand.
To have survived the crises
and changes of more than a
century is an indication of
strength and soundness. To
have maintained leadership
in the face of changing
times and methods is proof
of excellence of service
consistently maintained.

♦ ♦ ♦ X JLJLJLs ♦ ♦ ♦

P H IL A D E L P H IA
N A T IO N A L B A N K
ORGANIZED 1803

PHILADELPHIA, PA.
CAPITAL and SURPLUS_______________ »0,000,000

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Federal Reserve Bank of St. Louis

A young lady was leaning o ’er the rail,,
with, it is hoped no uncomfortable inten
tions. Suddenly her handbag, that fash
ionable petite accessory wherein ladieskeep all their valuables, slipped out o f
her grasp and into the deep blue sea.
In it were her Travelers Cheques. Her
funds gone, the girl was in despair.
This sad tale, now known to all on
board from the captain to the last deck
hand, reached the ears o f a man well ac
quainted with the American Express
Company and its habit as regards its
financial paper. He only asked the young
lady one question— whether her cheques
had been American Express Travelers
Cheques— and receiving the affirmative
answer, he consoled her and sent a wire
to the Express Company office in the city
fo r which they were bound. When the
ship came into port, an American E x
press representative was at the dock and
the girl Avas reimbursed.
“ First Port in A n y Storm ”
“ When one is alone in a strange land,”
writes a client, “ the American Express
sign spells the village post office, bank
and travelers aid rolled into one and was
the first port I thought o f in any storm.”
“ The courteous attention I received
abroad will, I am sure, make me remem
ber American Express whenever I make
plans for any extensive trip in the States.”
All this because we are in the travel
business and therefore regarded as Ruler
o f Transportation on the earth, on the sea
and in the air, and as the original “ AskMe-Another” by all Americans in foreign
lands. It is often harrowing, sometimes
annoying, but stimulating’ always.
It
adds romance and excitement to a busi
ness which is, heaven knows, never dull.
A young city girl was holidaying in
the country and became rather friendly
with a young farmer. One evening as
they were strolling across a meadow they
saw a cow and a calf rubbing noses in the
accepted bovine fashion.
“ Ah,” said the young farmer, “ that
sight makes me want to do the same.”
“ Well, go ahead,” said the girl, “ it’s
your cow.”
A house without woman and firelight,
is like a body without soul or sprite.—
Benjamin Franklin.
You ought to choose both physician and
friend, not the most agreeable, but the
most useful.— Epictetus.
One more call a day is 300 more calls
a year.
“ I don’t know what to do with that son
o f mine. He’s been at college two years
and still keeps at the foot o f his class.”
“ W hy not make a chiropodist of him ?”

November 1933

Iowa
Bank News
Officers Iowa Bankers
Association
President................... B. F. Kauffman
Des Moines
Vice President.......... C. R. Gossett
Sioux City
Treasurer................................C. S. Rye
Manly
B. P. KAUFFMAN
President

Secretary..................... Frank Warner
Des Moines

FRANK W ARNER
Secretary

Open in Boone

County Meeting

The Citizens National Bank, a consolida
tion o f three banks in Boone which have
been under S. F. I l l is open fo r business.
Approximately one million dollars Avill be
released to depositors. The First National
Bank will pay 50 per cent of its deposits,
the City Trust and Savings Bank 50 per
cent and the Security Savings Bank 25
per cent. These are the three banks which
have consolidated.
The new institution, with quarters in the
old First National Bank building, will
have capital of $100,000, surplus o f $25,000 and resources o f $5,000.
Officers of the bank include John H.
Goeppinger, president; J. H. Herman,
vice president, and H. A. Laird, cashier.

A meeting of the Fayette County Bank
ers Association was held in Clermont re
cently. Talks were given by H. R. Young,
Arlington, and George Falk, Oelwein. The
following officers were reelected: W . A.
Kneeland, Clermont, president; L. H.
Buenneke, Maynard, vice president; D. R.
Lynch, West Union, secretary; A. B.
Blunt, Maynard, treasurer. Representa
tives o f each bank met as a committee to
discuss plans fo r the operation o f the
N RA banking code in this county. About
thirty-five bankers attended.

New Quarters
Announcemment is made that the W ood
bury County Savings Bank, Sioux City,
which has been operating under the re
strictions o f the state banking department
since March 4th, will soon open in its new
quarters in the Badgerow building.
Leonard R. Manley, president o f the
bank, announced that the institution would
move to its new quarters and reopen under
the direction of the new board o f directors
and officers as soon as remodeling o f the
quarters was commpleted. He said it was
estimated that the remodeling work would
require about two weeks.
Although the bank has not been released
from the restrictions of Senate File No.
I l l , it is expected that release will be made
at the time the bank moves to its new7
quarters.

Vault Equipment
Expert workmen have finished the in
stallation o f the new steel vaults and timelock safes which hold the cash at the
Guthrie County State Bank in Guthrie
Center. The remodeled vault now has two
rooms, one for the safety deposit boxes
to which the customers o f the bank are
admitted. Back o f this is the room in
which two steel safes are kept, both timelock affairs, one being fo r the night de
pository and the other is a day-time
time lock, which will not open fo r thirty
or more minutes after the combination is
worked.

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Interest Rates Lowered
A reduction in rates o f interest paid on
deposits will go into effect in all Charles
City banks on November 1st, according to
an official announcement o f the Charles
City Clearing House Association.
Recently issued rules and regulations
by the Federal Reserve System, limit the
maximum rate of interest to be paid on
time deposits or savings deposits to 3 per
cent, which rate has been adopted by the
local banks on certificates o f deposit ma
turing in one year. On six months’ certifi
cates, the rate will be 2% per cent as it
will on savings deposits.
The adoption o f the new rates o f inter
est is made through the membership of all
the local banks in the Charles City Clear
ing House Association, which under the
new American Bankers Association code,
which went into effect Octboer 16th, is the
local official unit under the N IR A admin
istration.

Released
Release o f the Farmers State Bank of
Silver City from the provisions o f Senate
File 111 has been announced by State
Banking Superintendent D. W . Bates. The
bank will operate without restrictions or
waivers, it was announced.

M. E. Tate, Keokuk; R. W . Turner, Council Bluffs; Frank C. Welch, Cedar Rapids;
Fred Figge, Ossian; L. J. Shuster, Clin
ton, and George J. Schaffer, Storm Lake.
The Iowa committee is allowed 60 days,
from October 16th, to frame and file a code
with the N R A administrator in Washing
ton.
Members will study the national code
and will meet then to formulate a draft
■which will be submitted to the code com
mittee o f the American Bankers Associa
tion, after being approved by Iowa bank
ing groups.
The Iowa bankers NRA code, will not be
submitted to Washington for approval
until Iowa clearing house associations have
adopted some o f its sections to fit city
banking conditions.
Mr. Andrew stated that a meeting will
be held in Des. Moines at which represent
atives from the Des Moines, Sioux City
and Cedar Rapids clearing houses will
frame the necessary provisions to be in
serted in the general code.
Clearing house cities of the state are
Cedar Rapids, Des Moines, Sioux City,
Keokuk, Dubuque, Clinton, Waterloo,
Ottumwa and Davenport.
Mr. Andrew said bankers o f these places
can elect to operate either under the gen
eral Iowa bankers’ code or under the gen
eral code as adapted to city banking.

Against Merger
Stockholders of the Farmers Trust and
Savings Bank have voted by a large ma
jority against consolidation of the Farmers
Trust and Savings Bank and the Farmers
Savings Bank, both of Joice. One hun
dred and ninety shareholders were present.
L. R. Boomhower, attorney, Mason City,
O. K. Storre and S. R. Torgeson spoke. A
unanimous vote was cast to petition the
department to reduce the capital stock
from $25,000 to $10,000.

W ant to Join
A total o f 2,725 banks already have
applied fo r membership under the Federal
Deposit Insurance Corporation, Walter J.
Cummings, board chairman o f the govern
ment agency, said recently.
He detailed methods by which the cor
poration will operate when the deposit
insurance system starts January 1st, and
asserted that the bank holiday of last
March could have been prevented had de
posits previously been insured by a federal
agency.
Cummings spoke at a meeting o f the
Savings Bank Association o f New York.

To Reorganize
The Iowa Code
Appointment o f a bankers’ NRA code
committee for Iowa, with L. A. Andrew
as chairman, has been made by B. F.
Kauffman, president o f the Iowa Bankers
Association.
Other members of the committee are

A move to reorganize the Grundy Coun
ty National Bank got under way recently
with a mass meeting at Grundy Center
and a meeting o f the bank’s depositors at
which committees were named to sell $25,000 in stock necessary to make the reorgan
ization effective.
Northwestern Banker

November 1933

38
A jplan has been devised by which 250
shares o f stock in the reorganized bank
will be sold to local persons at $140 a
share. This will create a capital fund of
$25,000 and a surplus fund o f $10,000.
With this amount raised locally the Recon
struction Finance Corporation is pledged
to supply another $25,000 by purchasing
stock in the new bank.

New Bank Opened
The First State Bank o f Battle Creek,
with capital o f $10,000 and a surplus o f
$5,000, was opened recently. The presi
dent is Charles H. Parsons, Carroll.

Annual Report
Iowa’s 620 banks had deposits of $228,985,321.94 as o f June 30, the annual re
port o f the state hanking superintendent
shows.
Two hundred eighty-eight banks were
recorded as operating under S. F. I l l , and
332 as released from the law’s provisions.
Since the report was compiled 36 hanks
have been released, monthly reports
showed.
Eighteen banks received new charters
during the year and 23 were renewed.
Twenty new certificates fo r charters were
issued, 39 cancelled, and 58 are outstand
ing.

Twenty-two banks reported consolida
tions and liquidations and 92 banks were
listed as still closed.

Banks Robbed
The Landmands National Bank of Kimballton was robbed recently o f a sum
which the manager, S. C. Pedersen, esti
mates to have been between $300 and 400.
The thieves, who are unknown, burned
their way through a vault door to where
they got the money. There are two vaults
in the bank building, and the thieves broke
into the vault which, fortunately, at that
time contained the lesser amount o f funds.
The loss was discovered by the manager
when he opened the bank fo r business.

Bluhm Resigns
The resignation o f Albert Bluhm, cash
ier o f the Farmers & Merchants Savings
Bank, Ottumwa, was announced recently.
Mr. Bluhm has been connected with the
local institution fo r many years, having
served as assistant cashier for seventeen.
He was named cashier three months ago,
following the death o f Henry Glenn.

Everly Office
An office, in charge o f O. E. Goodspeed,
has been opened in Everly by the Farmers
Trust nad Savings Bank o f Spencer.
The office is located in the building
formerly occupied by the First National
Bank.
Permission to open the office was given
the Spencer hank by I). W . Bates, state
superintendent o f banking.
The office, according to the laws of the
state o f Iowa, is operated and supported
by the resources o f the parent bank.

C u s t o m e r s long have noted
a quiet effectiveness in The Northern
Trust Company’s care of their banking
business. Its simple form of organi
zation works to this end. Compact,
it encourages close relationships.
Com plete, it places within every
customer’s reach a rich storehouse
of experience.
are

respectfully

L. W . Barnes o f McClelland was elected
president of the Pottawattamie Bankers
Association at the annual meeting held in
Council Bluffs.
Other officers who were elected are:
J. J. Evans o f Oakland, vice president;
Ira Hayes o f Council Bluffs, secretary,
and J. AY. Davis o f Avoca, treasurer.
The old officers were: E. H. Spetman,
president; Rollo Hall, vice president; L.
AY. Barnes, secretary and J. AAr. Davis,
treasurer.

invited.

The State Savings Bank at Goodell has
been released from all restrictions and
again has resumed a general banking busi
ness. Owen S. Conwell is president.

Add to Staff

N orth w est C orner La Salle and M o n ro e Streets
Chicago

Northwestern Banker

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Federal Reserve Bank of St. Louis

Unrestricted

THE N O R TH ER N
TRUST COM PANY
★

County Meeting

If w e can serve you in Chicago your
inquiries

Andrew J. Harsh and Myron Recknor
have been added to the staff o f the First
National Bank in Creston, it was an
nounced by A. E. Jensen, vice president
and manager.
Both young men are graduates of the

November 1933
i

39
Crestón schools and have received advance
training- as well.
“ The addition to the force has been
made necessary due to the steady growth
in volume o f business which at this time
being more than $850,000 which, added to
the footings of the depositors’ trust, makes
a total volume o f more than $1,250,000,”
Mr. Jensen said in announcing the employ
ing o f the two men.

Gain in Checks
Des Moines check transactions through
banks totaled $53,889,000 in September,
as compared with $52,624,000 fo r Septem
ber, 1932. The gain was $1,265,000 or 2.4
per cent.
September was the first month since last
June to show a gain over the correspond
ing month of last year.

H. M. Carpenter Dead

Campaign Completed

Henry M. Carpenter, 76, president o f
the Monticelllo State Bank since 1910,
died recently o f bronchial pneumonia. Mr.
Carpenter had been connected with the
bank fo r 58 years.
He was born in Old Lyme, Conn.,
September 11, 1857, and came to Iowa
with his parents in 1864. He entered the
bank as assistant cashier when he was 18,
Avas made cashier later and was elected
president in 1910.
Surviving are his widow, two sons, Mil
lington F. Carpenter, associate professor
o f English at the University o f IoAva, and
Halsted M. Carpenter, cashier o f the Montieello State Bank, and one sister Mrs.
Harriet Coughlan o f Monticello.

The campaign to secure the necessary
waivers, the first step in the reorganization
o f the Shenandoah National Bank, has
been completed, II. E. Ross, conservator
announces.
Depositors agreements, representing
seventy-five per cent o f the unsecured de
posits, were required under the plan. Mr.
Ross states that depositors’ agreements
representing approximately eighty-one
per cent of such deposits have been signed.

Unrestricted
The First State Bank o f Rockford has
been released from all restrictions and is
noAv operating on a regular banking basis.

To Mankato
Harold V. Bull, cashier o f the First
National Bank o f Mason City fo r five
years and an employe o f the bank since
1927, lias been elected cashier and director
o f the National Citizens Bank, Mankato,
Minn. No announcement has been made
as to Mr. Bull’s successor in the local bank.

Buys Bonds

ÏÇ

The First National Bank o f Mason City
was successful among five bidders fo r $33,600 o f county funding bonds.
The local bank bid par on the 4 % per
cent bonds, proceeds o f which will he used
to take up outstanding warrants issued
fo r poor relief. This issue brings the
total bonds issued fo r county poor relief
to $206,000.

Sells Bank Interest
Fred J. Figge, president o f the Iowa
Bankers Association and president o f the
Iowa State Bank o f West Bend, has sold
his interest in that institution to A. J.
Jensen and W . H. Daubendiek, the latter
a director. Mr. Figge o f course retains his
other banking interests in Iowa, and re
tains a few shares in the Iowa State Bank,
but due to the great distance from Ossian,
Mr. Figge’s home, to West Bend, he felt
it advisable to dispose o f his controling
interest in the West Bend institution.
E. H. Klisart, cashier, also retains a
part o f his stock, and will continue as cash
ier and director for the next several
months.

O u r Job
O ur jo b — to g ive o u r custom ers
g o o d b an kin g and so u n d ad vice.
Iow a bankers w ill tell y o u that w e
take care of o u r jo b .

Bankers T rustC o .B ank
iv"£fv-3ER"^i

C federal reserve

Hauge Resigns
Resignation o f A. O. Ilauge o f Des
Moines, as one o f the seven directors o f the
federal land bank o f Omaha, Neb., and
Iowa’s sole representative on the board,
has been accepted, John Carmody, bank
secretary, announces.
The position will be left vacant until
December 31st, Avhen members o f the Na
tional Farm Loan Association in Iowa will
elect a new director.

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li^^vArE^aaii

•

CORNER 6th AN D LOCUST STS., DES MOINES
CAPITA L $1,000,000

SURPLUS $200 000

DIRECTORS
L. B. BARTHOLOMEW
Vice Pres.-Trust Officer
PAUL BEER
President, T h e
Flynn Dairy Co.
DR. O. J. FAY
Surgeon
HENRY FRANKEL
Treas., Younker Bros.
J. G. GAMBLE
Attorney

J. W. HOWELL
Vice President, Warfíeld-Pratt-HowelI Co.
F. W. HUBBELL
Vice Pres. - Treas.,
Equitable Life Ins.
Company of Iowa
J. W. HUBBELL
Vice President, F. M .
Hubbell Son & Co.

B. F. KAUFFMAN
President
L. B. MAYTAG
Capitalist
S. L. SHEUERMAN
President, Sheuerman
Brothers, Inc.
B. B. VORSE
Vice President

N EBRASKA N EW S
Hauge Resigns
Resignation o f A. 0. Hauge of Des
Moines as a director o f the Federal Land
Bank of Omaha, was announced recently
by Lieutenant Governor Nels Kraschel.
Kraschel said the resignation, effective
immediately, was given to him by Hauge
and Gauge’s attorney, C. B. Hextell, and
has been forwarded to Henry Morgenthau
Jr., federal farm credit governor.

Cashier in Paxton
J. G. Doherty has been employed by
the Bank of Paxton to fill the retirement

of F. M. Farr. Mr. Doherty comes from
Ogallala where he has been living* fo r
the past two years. Previous to that time
lie was employed at Berthoud, Colorado,
where he acted as chief officer in the liqui
dation o f a bank which paid its depositors
100 cents on the dollar and closed its a f
fairs Avith a remarkablly small loss.

President Roosevelt, it is stated, their
need coming Avith the neAV system o f all
national banks coming under a federal
guaranty law. It is not knoAvn who will
receive the appointments, but Congress
man Carpenter favors the Nebraska men.

On Loan Committee
Bank Examiners
Congressman Terry Carpenter has rec
ommended tAvo men, Herb Hardin, fo r
merly a resident o f Scottsbluff, noAV re
siding at Omaha, and Deputy Land Com
missioner J. H. Welm of Bridgeport, as
federal bank examiners.
The appointments Avill be made by

Chas. Finegan, cashier o f the Bank o f
Hyannis, and a director o f the Regional
Agricultural Credit Corporation, spent
some time in Omaha at the corporation’s
office as a member of the senior loan com
mittee.
The corporation reports some
pick-up in feeder loans and also reports
that many borrowers report better crops
than they had expected earlier in the
year.

í
y

Examiner
Lyman Sorenson, son of Mr. and Mrs.
Hans Sorenson o f Hartington, was re
cently appointed national bank examiner,,
with headquarters in Des Moines, Iowa.
Mr. Sorenson, who got his start in the
First National Bank of Hartington, has
been in the Illinois state banking depart
ment in Chicago fo r the past three years.
He was also Avith the Nebraska banking
department at one time.

Unrestricted
The Farmers State Bank o f Pickrell,
which has been closed since the bank holi
day, opened recently on an unrestricted
basis, it Avas announced by F. L. Pothast,
cashier.

To Washington
C. G. Reynolds, North Platte, formerly
with the farm credit administration at
Omaha, has gone to Washington as a na
tional bank examiner. He is brother-inlaw o f former Governor Keith Neville.

To Open in Hastings

The Omaha
National Bank
Northwestern Banker

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Federal Reserve Bank of St. Louis

November 1933

Examiners for the Reconstruction F i
nance Corporation have begun inspection
o f assets o f the closed Nebraska National
Bank o f Hastings in connection Avith plans
fo r reopening o f the bank by purchase
o f its preferred stock by the federal cor
poration.
G.
R. Buckner and G. R. Froelich, ex
aminers fo r the RFC, began examination
o f books of the defunct institution.
The reorganization plan was approved
by the reorganization division o f the
comptroller’s office at Washington. Un
der the contemplated arrangements fo r
reopening the institution, the RFC would
purchase approximately $50,000 Avorth of
the bank’s stock.

County Meeting
The Cass county bankers association
met recently at Elmwood where they were
guests o f the two banks o f that city, the
Elmwood State and the American E x
change Banks.
The occasion was one o f the most
pleasant in the long series of successful
meetings and all who attended were loud
in their praise of the hospitality afforded
them by the residents o f Elmwood.
One o f the outstanding features of the
meeting was the address o f J. R. Cain,
o f the Omaha National Bank o f Omaha,
who spoke on “ The Glass-Steagall Bank
ing Bill.” The speaker discussed the meas
ure enacted by the last congress and which
embodied many of the ideas o f Senator
Carter Glass, one o f the authors, formerly
secretary o f the treasury and financial
expert. Mr. Cain urged the united sup
port o f the people of the nation behind
President Roosevelt regardless o f station
or political creeds, that in this action lay
the only way out o f the present chaos
and depression that has gripped the
country in the last years.
The association at their session also
named the officers for the ensuing year as
follow s: President, H. A. Tool, Mur
dock; vice president, 0 . C. Hinds, W eep
ing W ater; secretary-treasurer, Frank J.
Domingo, Weeping Water.

ties at Muskogee, where he is being held
in connection with a number o f Oklahoma
robberies.
A. E. Carter, York county sheriff, was
named by Bryan to act as agent for Ne
braska in returning Dotson.
Joe Harris, also arrested at Muskogee,
pleaded guilty to participation in the
York robbery.

Heads Civic Group
W . B. Millard, Jr., vice president of
the Omaha National Bank, has been
elected president o f the Nebraska Hu
mane Society. Other officers chosen a re:

W . J. Welch, vice president; H. S. Mann,
secretary; Otis Alvison, treasurer, and
Judge
Howard
Kennedy,
counselor.
Trustees for three years wore H. S. Mann,
Miss Jessie Millard, W . R. Watson, T.
W . McCullough and John W . Welch.
Freedom in a democracy is the glory o f
the State, and, therefore, in a democracy
only will the freeman o f nature deign to
dwell.— Plato.
To think and to feel constitute the two
grand divisions o f men o f genius— the men
o f reasoning and the men o f imagination.
-—Isaac Disraeli.

Keeping
Pace

To Join Federal Reserve
Up to October 14th, a total o f 44 Ne
braska state banks have applied for en
trance into the federal reserve plan for
guaranty of deposits. There are a total
o f 241 state banking houses eligible to
apply, according to W . H. Donahue, fed
eral supervisor fo r Nebraska.
In all 13 examiners and assistant ex
aminers to work under Donahue have been
designated. They a re: Fred Allen, Paw
nee City; Anthony Barak, Petersburg;
J. K . Friedebach, Lincoln; Richard Had
ley, Hastings; J. E. Nicholas, Valley;
C. M. Reynolds, Omaha; M. K . Van
Horne, Lincoln; and George Whalen,
Lincoln, examiners. W . N. Hurd, Pueblo,
Colorado, and T. J. Kastle, Jr., o f North
Bend, assistant examiners, and J. W.
Morrissey, Kansas City; Frank Nelson,
Hastings, and C. T. Rafter, Cheyenne,
Wyoming, national examiners appointed
but not called.

O l N C E 1895 the Central National has kept
abreast of the ever-changing functions of a
sound, careful, conscientious banking institu
tion.
A record that is now of utmost importance to
its correspondents when each forward step must
be taken surely and confidently.

G R A N T M c P H E R R IN
P r e s i d e n t

LY N N FULLER
Vice Pres.and Cashier
t h e

Bring Him Back
Requisition papers fo r the return of
Charles Dotson to Nebraska to face
charges o f complicity in the robbery of
the First National Bank o f York, has
been issued by Governor Charles W.
Bryan.
Dotson is supected o f participation in
the bank holdup o f last September 20th,
in which approximately $10,000 was se
cured. He is now in custody o f authori

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Federal Reserve Bank of St. Louis

;

o l d

r e l i a

b l e

C entral Nation al
BANK£TRUSTCOMRANY
F IF T H

A V E . B e t w e e n W A L N U T and L O C U S T

D e s M o i n e s _________I o w a
1
Northwestern Banker

November 1933

M IN N ESO TA

The National hank has a capital o f $50,000 and a surplus o f $10,000.

N EW S

National Charter
The State Bank of Madelia has been
converted into a national institution under
the name o f The Citizens National Bank
o f Madelia. The new name was adopted
when the bank received its charter from
the Comptroller o f the Currency.
The State Bank opened the first day
after the national bank holiday was term
inated, on a 100 per cent basis.
W . J. McCarthy is president, J. G.
Olson, cashier, G. Y. Christiansen, vice
president and E. E. Mitchell, assistant
cashier.

Bond Department
Formation o f a bond department, which
will round out the multiple banking serv
ices of the Empire National Bank & Trust
Co., St. Paul, was announced recently by
D. C. Shepard, president.
Richard G. Egan, former manager o f the
Banc-Northwest’s St. Paul office, will he
manager o f the Empire’s bond department,
Mr. Shepard said.
Mr. Egan had been fo r seven years asso
ciated with the Banc-Northwest Company.

O F F IC E R S

J. H. NISSEN
Cashier & Assistant
Trust Officer
M. E. McCRABB
Assistant Cashier
E. JOHANNSEN
Assistant Cashier
H. M. OLNEY
Assistant Cashier

O. P. PETTY
Vice President and
Trust Officer

F. E. CONOVER
Assistant Cashier
F. H. HAMANN
Assistant Cashier
R. A. W. LATIMER
Auditor

H. G. KRAMER
Vice President
A. R. THURN
Vice President

Clinton County’s Largest Bank

111 Clinton the

City National Bank
is your logical city correspondent.
Prompt collection service.
Requests
for confidential information answered
promptly.

T he City National Bank
CLINTON, IOWA
D IR E C TO R S

W. A. ANDERSON
President
C. A. ARMSTRONG
President C. F. Curtis
Company. Inc.
A. A. BENTLEY
President
Fidelity Life Association
A. P. BRYANT
Vice President
Clinton Com Syrup
Refining Co.
O.
D. COLLIS.
President The Collis Co.
W. H. ITEN
Iten Bros.

Northwestern Banker

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Federal Reserve Bank of St. Louis

E. J. CURTIS.
E. L. MILLER
Vice President Curtis Bros.
Attorney
& Co.
J. PETERSON.
G. L. CURTIS.
O. P. PETTY.
President Curtis Companies.
Vice President
Inc.
H. W. SEAMAN
G. W. DULANY, JR.
J. O. SHAFF.
President Eclipse Lumber
Farmer and Live Stock
Co.
Dealer
Chairman Climax Engineer
F. H. VAN ALLEN,
ing Co.
President
J.
D. Van Allen
MILO J. GABRIEL,
& Son, Inc.
Vice President
F. J. WARD
President Gabriel Lumber
Vice President and General
& Fuel Co.
Manager Eclipse Lumber Co.
B. M. JACOBSEN,
G.
E. WILSON
Congressman Second Iowa
Pres. Clinton Bridge Works
District

November 1933

On Board
Two Minneapolis men were named mem
bers o f the board of governors at the
annual convention o f the Mortgage Bank
ers Association o f America in St. Louis,
Mo. They are H. P. Whittle, president of
the H. F. Whittle Investment Co., and
S. M. Waters, vice president and secretary
o f M. R. Waters & Sons, Inc. Walter
Williams o f Seattle was elected president
of the association.

New Appointments
Twelve new appointments were an
nounced recently by Elmer A. Benson,
state banking commissioner.
The men will succeed others in the de
partment’s closed bank division. They
will have charge o f liquidations in all parts
o f the state.
The new appointees are: S. C. Oetting,
Lamberton, Echo; A. J. Tauer, Morgan,
Cottonwood; Fred Knutson, Emmons,
Albert Lea; II. B. Farley, Minneapolis,
St. Paul; I. A. Johnson, Rochester, Grand
Meadow; Z. Gault, St. Peter, UTica; M. L.
Rug’roden, Northome, Halstad; Platt Nellermoe, St. Paul, Twin Valley; R. C.
Sletten, Willmar, Clarkfield; J. O. Canton,
Henning; F. F. Hanson, Winsted, How
ard Lake; Earl MeGrew, Mankato, and
H. T. Larson, De Graff, Dassel.
They succeed O. A. Stensvad, A. D.
McRae, T. E. Nash, John L. Haas, C. O.
Knutson, E. J. Gifford, C. T. Paulson,
R. II. Comport, E. C. Karwand, H. A.
Kothman, Iver Mikkelson and M. J. Hig
gins.
Two others were reappointed to the de
partment. They are Fred Hahne, Man
kato, to be stationed at Redwood Falls,
and A. E. Hutchinson, Albert Lea, to be
stationed at Minneapolis.

Banking Co de
Effective O ctober I 6
Immediate steps have been taken by the
American Bankers Association fo r setting
in motion the requisite machinery fo r car
rying into effect in every city, town and
country district o f the United States the
Bankers Code o f Fair Competition, which
became effective October 16th. The code,
which was submitted by the association, as
adopted by its recent convention in Chi
cago, to the National Recovery Adminis
tration, approved by it after slight revi
sion and signed by President Roosevelt,
applies to all national banks, state banks,
savings banks except mutual savings
banks, trust companies and private bank
ers accepting deposits in the United States
proper.
The official text of the code was mailed
to all banks in the United States with a
letter o f detailed instructions from the
Banking Code Committee o f the associa
tion, which is empowered under the law
to administer the code, giving directions

43
for organizing local bodies or committees
to carry it out. Particular attention is
called to the provisions relating to hours
o f employment and wages, which must be
complied with by all banks coming under
the definition o f the code.
In the detailed directions for employing
existing bankers groups or setting up
groups in sections where they do not now
exist to carry out the code, attention is
called to the fact that within sixty days
after the effective date o f the code, rules
and regulations with reference to fair
trade practices must be formulated by the
local bodies and submitted to the state
bankers association and to the Banking
Code Committee o f the national associa
tion for approval.

Over

60 y e a r s of

Service
Banks and

Iowa

Bankers

Service— Not
Brass Bands
The railroad industry is not spectacu
lar. It doesn’t go in fo r brass bands and
flaunted banners. And that may be a rea
son why the public, as a whole, lias small
realization o f how much has been done in
recent years to build up the railroad sys
tem of this country to where it offers the
traveler and shipper unexcelled and per
haps unequaled service.
Since 1923 the roads have spent $7,000,000,000 for improvements and additions.
Before any actual purchases Avere made,
millions were spent in elaborate and ex
tensive tests to probe the soundness or
fallacy o f proposed plans. Recently, for
example, an appropriation of $2,000,000
Avas made fo r a study o f air-braking sys
tems with a AueAV to possible further im
provement.
Plans are now on foot for
developing welded, instead of riATeted, tank
cars, faster and more comfortable passen
ger coaches, and so on.
The general public— Avhich, in spite of
all that is said to the contrary, still looks
on the railroads as the pre-eminent trans
porter o f persons and merchandise— bene
fits from all this. The railroads have never
lost the pioneering spirit that, a compara
tively feAV years ago, made possible the
joining of the tAA’o great oceans with shin
ing rails.
And, looking at railroad ad
vancement from another side, it puts mil
lions into the pockets o f workers in a
thousand industries.

The American people can be proud o f
the railroads that serve them. That they
are proud, is evidenced in the overwhelm ing public sentiment in favor of a “ neAV
deal” for a great industry which has been
brought close to ruin by excessive taxation
and unfair competition.

First National Bank
Ma s o n Ci ty, Iowa

Cooperatives
Victorious

Affiliated

wi t h

Northwest

Bancorporation

A t the moment, the position o f the
farmer is mixed. On the one hand, defi
nite progress has been made in clarifying
his problem and taking steps towards its

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

Northwestern Banker

November 1933

44
solution. On the other, farm income has
failed to rise to the extent that was antici
pated.
In most instances the farm products
which are having' the best experience are
those which are represented by strong-,
well established, loyally supported cooper
atives. The cotton producers o f the south
are an excellent example o f this— it is not
too much to say that the future outlook
fo r cotton is better now than for many
moons past. The milk producers o f New
York are still another— there the coopera
tive, in the face of violence and sabotage,
said to be largely o f communistic oiigin,
is bringing order out of chaos. The wal
nut growers o f California also demon
strate the soundness o f cooperative meth
ods. All these groups are winning a bat
tle against depression which was started
years ago.
As a matter of fact, it is doubtful if the
government’s farm relief program would
have much chance fo r success without the
cooperatives. They are acting as an inter
mediary between the government and the
producers— they are in a position to ex
plain and to clear up problems and to
settle misunderstandings. They will prob
ably be called upon to do a large amount
of necessary policing, to protect the pro
gressive farmer against his radical fel
lows. And they are extensively called
upon, in an advisory capacity, whenever a
change in government policy is contem
plated.

Yes, the cooperatives are forging ahead
— and at a faster rate than is generally
realized. While rewards are appealing
now— their greatest achievements are still
ahead o f them.

School
Savings
During the school year ending June 30,
1933, pupils enrolled in the schools o f the
United States deposited $10,332,569 in
school savings, it was announced by W.
Espey Albig, deputy manager o f the
American Bankers Association, in charge
o f its savings division, in his annual re
port on school savings activities. For the
second successive year withdrawals ex
ceeded deposits, although the excess o f
withdrawals over deposits was less by
$600,000 this year than last, Mr. Albig
says, describing the many ways in which
withdrawals proved the value o f funds
accumulated by this form o f thrift in meet
ing emergency requirements resulting
from business conditions.
“ Three years ago school savings depos
its reached the high mark o f $29,113,063,”
his report says. “ In three years annual
deposits in school savings have shrunk by
$18,800,000, thus harking back ten years
in deposits. During the year 1922-1923
deposits amounted to $10,631,838, a sum
greater by $300,000 than that deposited
this year.”

In 1922-23, Mr. Albig points out, but
6,868 schools afforded opportunity for
school savings as against 10,890 fo r the
year just closed and the number of pupils
participating was 1,907,851 as against
3,080,685.
“ Despite this recession over a three-year
period in school savings, no more pro
nounced than in other activities, its real
value has become manifested,” he declares.
“ The human elements in school savings
appear to an even greater degree this year
than ever. Noble impulses frequently die
in the face o f inability to act. School
savings often supply the needed aid.”

Fast Service
Increasing use of the air-express and
air-and-rail-express for bank collection
has been a feature o f the phenomenal airexpress traffic out o f and into Milwaukee
fo r some time past.
Recently a resident o f this city (A. F.
Gferlach) required a collection on a draft
o f the Town Treasurer at Shattuck, Okla.,
amounting to $210.00.
The draft was dispatched as a money
collection by Railway Express plane tak
ing off from Milwaukee at 6 :25 p. m. and
routing via Northern Airways, Chicago,
and United A ir Lines to Wichita, Kansas,
which was reached at 4.25 a. m. Quick
transfer to the Atchinson, Topeka and
Santa Fe Railroad put the draft into
Shattuck at 1 :12 p. m., well before the
close of banking hours in that city. The
remittance was forwarded from Shattuck
by the same rail line at 5 :34 p. m. for
transfer to the Railway Express Air-Lines
at Wichita and reached Milwaukee at 4
a. m., and, so, awaited the consignee upon
the opening o f business at his office.
Of the total distance o f 771 miles each
way, 563 miles were by air transport lines
and 208 miles by railway.

Farm Finance Book
Ioivii IJtliocjrap liiiifi Ck»iiipanii

Northwestern Banker

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

5 1 5 T W E N T Y E IGHT H S T R E E T

o in e ;

EXPERIENCE
- QVALITY
SERVICE

'T b u n d e d

G E O R G E H. R A G S D A L E
EDWIN G. R A G S D A L E

SECRE TARY

November 1933

A book on “ Making Farm Investments
Safe” has been issued by the Agricultural
Commission o f the American Bankers
Association, presenting a compendium o f
scientific facts, practice and experience in
farming to serve as a reference and guide
in the daily routine o f banking and farming.
The aim is described as being to give
practical workers in these fields sugges
tions as to what extent and in what man
ner farm loans should be limited by soil
erosion, weeds, plant diseases, rodents and
fire hazards, etc. The book also indicates
how much is added to the security o f a
farm loan by the farmer who keeps ac
counts and practices good business meth
ods, as well as the extent to which loans
are safeguarded by crop rotation, pro
duction o f legumes, judicious use o f com
mercial fertilizers, using quality seed and
providing home grown feeds.

45
Another section sets forth the precau
tions that should be exercised by both the
banker and farmer when negotiating loans
to increase or improve dairy output, or
beef, sheep, swine or poultry production,
as well as what factors should be con
sidered in the economic marketing o f prod
ucts and the way efficiency in production
affects efficiency in marketing. Many other
everyday details of farm life that have a
practical financial significance are treated
in the book. A particularly important sec
tion deals with experience with farm
leases and another with directed farm
credit. Copies o f the book are available
at $1.00 postpaid from the Agricultural
Commission, American Bankers Associa
tion, 522 First National Bank Building,
Madison, Wisconsin.

His death was due to a cerebral hemorr
hage.
Mr. Sabin was born in Williamstown,
Massachusetts, August 24, 1968. He at
tended Greylock Institute at South W il
liamstown, Massachusetts, where he grad
uated in 1885.
Mr. Sabin began his banking career with
the National Commercial Bank of Albany
in 1889. He became cashier o f the Albany
City National Bank in 1898, and remained
in that position until he became vice presi
dent and general manager o f the National
Commercial Bank o f Albany. In 1907,
Mr. Sabin Avas elected president o f the Na
tional Copper Bank o f N cav York, and
three years later merged that institution

Avith the Mechanics National Bank under
the name o f the Mechanics and Metals
National Bank, o f which lie was elected
vice president. In 1910, Mr. Sabin was
elected vice president of the Guaranty
Trust Company o f NeAv York, and became
president in 1915 and chairman o f the
Board of Directors in 1921.

Bank Credit
What is probably the first definite step
toward the easing of bank credit require
ments is seen in the recent announcement
o f The Morris Plan Company of New
York, largest industrial banking company,
that it had instituted a new policy for the
liberalizing o f loan repayments.

Taxes
Secretary of Agriculture Henry A. W al
lace last month called two public hearings
on the questions o f compensatory taxes
that might be imposed on commodities that
compete with corn and its products and
with hogs and pork products.
The first hearing, set for October 30tli,
at the Mayflower Hotel in Washington,
will be on the question whether the pay
ment o f the processing tax announced in
regulations issued by the Secretary today,
is causing or will cause the processors
thereof disadvantages in competition from
cattle and calves, sheep and lambs, vege
table oils including cottonseed oil, palm
oil, and cocoanut oil, fish and seafood
products, and poultry and eggs, by reason
o f excessive shifts in consumption between
such commodities or their products.
Under the Agricultural Adjustment Act
the Secretary, if he finds after the hear
ing that such disadvantages in competi
tion exist, shall issue a proclamation con
taining such a finding and specifying what
the competing commodities are and the
rate o f the compensating tax necessary to
prevent such competitive disadvantage.
On November 2d, at the same place, a
hearing will be held on the question o f
whether the processing tax to be levied
upon corn is causing, or will cause, to the
processors disadvantages in competition
from cane and beet sugar and syrup, im
ported starches, including cassava, tapioca
flour, prepared tapioca, crude sago, sago
flour, arrowroot starch and arrowroot
flour, molasses, and brewers’ rice and
screenings.
The findings o f the Secretary, after the
hearing on corn, will be made in the same
way as in the case of hogs.

Charles H. Sabin Dies
Charles Hamilton Sabin, chairman of
the Board of Directors o f the Guaranty
Trust Company, o f New York, died last
month at his home near Southampton,
Long Island. Mr. Sabin had been in
rather poor health fo r the past six months.

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Federal Reserve Bank of St. Louis

How Much Is a
Customer W orth Today?

l l F IN T H E good old days of the “ N ew E r a " a
business house had three thousand customers, but
has only three hundred customers in the good new
days of the “ N ew D eal,” it naturally follows that
his “ new dealers” are worth ten times as much
apiece as they would have been in 1929.
And yet there are business men— and even bankers
— who will say “ I C A N ’T A F F O R D
OUT

CALENDARS

G R E E T IN G

SEND
CARDS

T H I S Y E A R .”

The Banker Knows
The banker knows that in this almost customerless
age, every business man can afford to spend a few
cents apiece to say “ Thank Y o u ” to those customers
who may stand between him and the sheriff.

Make New Friends —
Keep Old Friends from Forgetting
In the Gerlach-Barklow Line you will find art cal
endars and holiday greetings at a price range of
from S y 2 cents to $1 and each designed to make new
friends and keep old friends from forgetting.

The Gerlach-Barklow Co.
Joliet, Illinois
A post card will bring samples without charge or obligation

Northwestern Banker

November 1933

46
Stating that his banking company was
cooperating with the President’s appeal
for “ easier credit,” Arthur J. Morris, pres
ident and founder o f the banking plan
bearing his name, declared that the new
policy, to remain in effect until October
1st, had proved particularly timely for
business financing.
Under the new repayment po’ icy, loans
are being made for both business and per
sonal use on one-year terms, to be amor
tized monthly, but payments to the Morris
Plan do not start fo r ninety days.
This means that the proceeds o f the
loan may be used fo r ninety days and the
borrower then has the balance of the year
to repay in equal monthly payments.
“ Fortified rvith cash on this basis, the
business man is able to replenish his in
ventories at cash discounts, and the indi
vidual is enabled to take advantage o f
current prices, and the three months’ grace
provides a breathing spell that should per

Bankers' Wants
This department of The Northwest
ern Banker is free to subscribers.
To non-subscribers, a charge of five
cents per word. In answering key
numbers, please enclose postage for
forwarding purposes. And remem
ber, this service is free to subscribers.
Position Wanted— Young woman de
sires place as bank teller or assistant
cashier. Experience and references. A d
dress the Northwestern Banker, No.
3213.
9-10-11
Position Wanted— Banker with twentytwo years’ banking experience covering
all positions from Teller to President,
and with background of experience in
Commercial and Educational Fields, de
sires to make permanent connection with
bank or other organization. Best of ref
erences as to ability and character. Full
investigation of past record invited. Ad
dress the Northwestern Banker, No. 3215.
11-12

mit the borrower to make real progress
with his financial matters,” Mr. Morris
said. “ In both cases, the savings effected
by access to a fresh supply o f cash, can
be made to pay fo r the cost o f the credit
and still leave a profit fo r the borrower.”
Rates of this type o f credit have not been
increased, Mr. Morris said, and the usual
banking discount provided fo r in the in
dustrial banking act is applied.

In Charge
A. W. Hoodcheck, assistant cashier, is
now in charge of the First National Bank,
Britton, while C. C. Anderson, cashier, is
on a leave o f absence spending a few
months with the National Bank o f Huron.
From the loss o f our friends teach us
how to enjoy and improve those who re
main.— William Ellery Charming.
Two persons will not be friends long
if they cannot forgive each other little
failings.— La Bruy ere.

Ç7ndex O b

I can never think of promoting my con
venience at the expense o f a friend’s in
terest and inclination.— George Wash
ington.
P U B LISH E R ’ S STATEMENT
Statement of the Ownership, Managament, Cir
culation, etc., required by the Act of Congress of
August 24, 1912, of the NORTHWESTERN
BANKER, published monthly, at Des Moines, Iowa,
for October 1, 1933.
1. Name of Publisher, Clifford De Puy, DesMoines, Iowa.
Editor, Henry H. Haynes, DesMoines, Iowa. Managing Editor, Ralph W. Moor
head, Des Moines, Iowa.
2. Owner: Clifford De Puy. Des Moines, Iowa.
3. That the known bondholders, mortgagees and
other security holders owning or holding 1 per cent
or more of total amount of bonds, mortgages, or
other securities are: None.
HENRY H. HAYNES, Editor.
Sworn to and subscribed before me this 2nd day
of October, 1933.
EARL S. LINN, Notary Public.
(SE A L)
(My commission expires July 4, 1936.)

J
39
18

C
Central Hanover Bank & Trust Co..
Central Life AssuranceSociety...........
Central National Bank & Trust Co..
City National Bank &Trust Co.........
City National Bank ..............................
Curtis Hotel .............................................

Censure is a tax a man pays to the pub
lic fo r being eminent.— Swift.

óAdvertisers

Bankers Trust Co.....................................
Carleton D. Beh Co.................................

To make conscience tolerable, love
should be thrown around it. Conscience
is the frame o f character, and love is the
covering fo r it.— Henry Ward Beecher.

Jackley-Wiedman & Co..........................

L
23
27
41
22
42
46

Live Stock National Bank, Chicago. 34
Live Stock National Bank, Omaha. .. 31
Live Stock National Bank, Sioux City 28

M
II
Drovers National Bank .......................

Now

—

F
-

A room with private bath

First National Bank, Mason City. . . . 43
First National Bank, Sioux C ity........ 30

$2.50

Merchants National Bank ...................

IV
Northern Trust Co................................... 38
Northwest Bancorporation ................. 47
Northwestern National Life Ins. Co.. 26

in the city’s finest hotel.

Northwestern Banker

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Federal Reserve Bank of St. Louis

General Motors Acceptance Corp.. . . 22
Gerlach-Barklow Co................................ 45
Guaranty Trust Co................................... 24

November 1933

O
Omaha National Bank .........................

Iowa-Des Moines National Bank &
Trust Co.................................................... 48
Iowa Lithographing- Co.......................... 44

Philadelphia National B a n k ............... 36
Polk-Peterson Corp................................... 20

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

SMOKE is rolling
from starks again
T

Federal Reserve Review reports

a gain in factory employment for the
first time in four years. Central stations
show an increased electrical pow er
consumption. Car loadings are up.
Bank deposits have grow n. Smoke IS
rolling from factory stacks again.
In the general recovery movement

It is the role o f the 126 affiliates of

to which all the nation has turned its

the Northwest Bancorporation to aid

attention, the people and industries o f

in this important development o f the

this region are glad to be participants.

communities they serve.

No r t h w e s t Ba n c o r p o r a t io n
M INNEAPOLIS, M INNESOTA

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Federal Reserve Bank of St. Louis

than one out of every three banks in Iowa carries
MORE
its account with Iowa’s Largest Bank. You will find
here, modern methods and equipment directed by officers
with broad experience in banking problems.
We invite banks and bankers to use any or all of the
complete banking serv ices we offer.

IO W A-DES MOINES NATIONAL BANK
& T r u st C om pany
^Affiliated 'with

NORTHWEST BANCORPORATION

Full text of The Northwestern Banker : November 1933, 38th Year, Number 556

FRASER