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O VEM BER 938 D O W N T O W N HOUSTON The American Bankers Association holds its Sixty-fourth Annual Convention in Houston on November 14th-17th https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE A. B. A. CONVENTION Pages 11-12 THE CIRCLE OF SE R V IC E At the Merchants National Bank we constantly study new banking methods and equipment. Our many Iowa corre spondent banks likewise tell us about their new ideas on improved banking service. In turn, we complete this circle of friendly service by passing on to you what we learn each day both in our own bank and from our correspondents. We invite you to share these profitable experiences. M E R C H A N T S NATIONAL HANK OFFICERS Chairman, James E. Hamilton; President, S. E. Coquillette; Vice Presi dents, H. N. Boyson, Roy C. Folsom, Marvin R. Selden, Fred W . Smith, John T. Hamilton, II; V ice President and Cashier, Mark J. Myers; Vice President and Trust Officer, George F. Miller; Assistant Cashiers, R. W . Manatt, L. W . Broulik, Peter Bailey, R. D. Brown, O. A, Kearney. C edar Rapids Iowa M em ber F e d e ra l D e p o sit In s u ra n c e C orp oration Northwestern Banker, published monthly by the De Puy Publishing Company, Inc., at 555 7th Street, Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1938. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H E financial strength and stability of an Insurance Company is an impor tant measure of its usefulness to bankers. The Home Insurance Company has the kind of capital structure you like to see, for example, in a bank which serves as your correspondent in New York, Chicago — or elsewhere. The Home Insurance Company owes its present strength and size largely to a simple fact— people have liked its service so much that they have enabled it to grow, steadily and soundly, for a long time. Like a growing bank, its economic life-blood is service— service rendered on the ground by agents and brokers who know their business a little better than the other man. Use and recommend the insurance com pany that meets the high standards of strength and service by which the best banks are known. INSURANCE COMPANY • NEW YORK FIRE — A U T O M O B I L E — M A R IN E and ALLIED LINES OF INSURANCE Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 4 THE C H A S E NATI ONAL B ANK OF THE C IT Y OF NEW YORK Statement o f Condition, September 30, 1938 RESOU RCES C ash and D ue from B a n k s ................................................................... $ 986,341,323.24 Bullion A broad and I n T r a n s i t ........................................................ 37,050,975.81 U. S. Government Obligations, direct and fully guaranteed 661,918,043.40 State and M unicipal Se c u r it ie s ........................................................ 108,747,143.17 Other B onds and Se c u r it i e s .............................................................. 174,451,571.41 L oans, D iscounts and B ankers ’ A c c e p t a n c e s ............................ 620,196,819.77 Banking H o u s e s .................................................................................... 34,865,058.10 O ther R eal E s t a t e .............................................................................. 6,835,051.92 M o r t g a g e s ................................................. 11,297,190.31 Customers’ A cceptance L i a b i l i t y .................................................. 22,003,055.08 O ther A s s e t s ............................................................................................... 6,416,425.19 $2,670,122,657.40 L IA B IL IT IE S C apital F unds : C apital St o c k ............................................ $100,270,000.00 Su r p l u s ................................................................... 100,270,000.00 U ndivided Pr o f i t s ............................................. 31,136,343.12 $ 231,676,343.12 R eserve for C o n t i n g e n c i e s .............................................................. 16,867,007.26 R eserve for T axes , I nterest, etc ........................................................ 1,700,804.22 D e p o s i t s ..................................................................................................... 2,376,974,193.01 A cceptances Ou t s t a n d i n g ................................................................... 22,779,871.31 L iability as E ndorser on A cceptances and Foreign B ills . . 12,169,784.94 O ther L i a b i l i t i e s .................................................................................... 7,954,653.54 $2,670,122,657.40 United States Government and other securities carried at $134,108,067.90 are pledged to secure public and trust deposits and for other purposes as required or permitted by law. M em ber F ed eral Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 5 "You see, Ihe trend is toward La M o n t e S a f e l y P a p e r for P A S S B O O K S , too” The protection and prestige gained for bank checks through the use of La Monte Safety Papers is being extended more and more to Pass Books. For Bankers realize that Pass Books are valuable and should be fully protected against fraudulent alterations. Your Lithographer or Printer will show you how effectively La Monte Safety Papers have been used in this way by other Banks. You will find him compe tent and helpful. And he will gladly assist you in developing for your insti tution an individual Trade-Mark design incorporated in the paper itself— a La Monte feature w hich affords the utmost in safety and distinction. La Monte Safety Papers are today specified by leading business institutions from coast to coast, including more than 75% of the nation's largest banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker cs /JG a tttfu eie OoA.'iedficui.cie+ti S&uUce November 1938 " i o w a ’ s FRIENDLY b a n k ’' THE CENTRAL NATIONAL AND TRUST https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ COMPANY • I DES BANK MOINES N O RTH W ESTERN y tm n ¿> i DES M OINES FORTY-THIRD YEAR_____________________________________NUMBER 616 T he Northwestern B anker, Oldest Financial Journal west o f the Mississippi River. IN THIS NOVEMBER, 1938, ISSUE CLIFFORD DE PUY ¿Ù toïiaL Publisher Across the Desk from the Publisher............... ..........-..........— .....-......-....................... - 8 RALPH W. MOORHEAD Associate Publisher "featuïe Clïticles HENRY H. HAYNES Frontispiece— “ A w aitin g the C all” ....................................................................-................ 10 P rogram A m erican Bankers A ssociation C onvention.................................................... 11 The Nebraska C onvention...................................................................................................... 13 A t the Nebraska Convention— P ictu res..................... ....... ............-............................... 14-15 Loans and Legislatu res........................................................................... A . J. Jorgenson 16 Em ployers M utual in New H om e......................................................................................... 17 N ew s and V iew s......................................................................................... Clifford De Puy 18 Legal D epartm ent .......................... .................................................. ....................................... 20 P r o o f Departm ent Problem Solved............................................................ .......................... 21 Good News in the H eadlines............. ....................................................................................... 22 Public R elations......................................................................................... Dunlap C. Clark 24 Editor J. STUART DAVIS Associate Editor 555 Seventh Street, Des Moines, Iowa Telephone 4-8163 ßcvi0s avìò ûnoestments Investment Needed to Restore Prosperity The Month’s Market Maneuvers............... W hat Their Statements Show.................... Nebraska Investment Banking News........ N E W Y O R K O F F IC E ................................ James H. Clarke ................................ ................................ 26 28 30 37 ................... ....................................... ....................................... .................. ....................................... ....................................... James M. Sutherland ....................................... ........................ ....................................... 39 42 44 45 47 49 50 55 56 57 FRANK P. SYMS Vice President tate 330 W est 42nd Street Telephone Bryant 9-5490 7l eivs Nebraska News ................................... Omaha Clearings ....................... Lincoln Locals ............................. Continental Remodels Quarters South Dakota News............................. Minnesota News ................................. Twin City News............................. North Dakota News ........................... Montana News ................................... Iowa News .......... .............. .............. M I N N E A P O L I S O F F IC E J. A. SARAZEN Associate Editor S A N F R A N C IS C O O F F IC E J. LESLIE MEEK Pacific Coast Representative 564 Market Street T/te Diïectoïs’ Room A Few Short Stories to Make You Laugh OCTOBER S M T W T 1938 F S 1 2 3 9 10 16 17 23 24 30 31 4 5 11 12 18 19 25 26 6 7 8 13 14 15 20 21 22 27 28 29 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOVEMBER s M 1938 T W 1 2 8 6 7 13 14 15 20 21 22 27 28 29 9 16 23 30 F T 3 4 10 11 18 17 24 25 S 5 12 19 26 DECEMBER S 4 11 18 25 1938 T F S 3 1 2 8 9 10 5 6 7 12 13 14 15 16 17 19 20 21 22 23 24 26 27 28 29 30 31 74 M T W MEMBER Audit Bureau of Circulations Financial Advertisers Association 8 ci aid ike T/ 'e.i L dam theuublidket Farmers Revolting N eith er S e cre ta ry H e n ry A. W a lla c e n o r an y o f his associates ch airm an o f the U n ited States C ham ber o f C om m erce F in a n ce C om m ittee, w h en he s a id : h ave w o r k e d ou t a s a tisfa cto ry “ I s n ’t it h igh tim e that m en ch a rg e d w ith a g ricu ltu ra l p ro g ra m w h ich m eets w ith the ap business m an agem en t sh ou ld tak e som e active p ro v a l o f all the v a rio u s fa rm grou p s. and d eta iled in terest in the finan cial co n d itio n W h e a t fa rm e rs seem to be r e v o ltin g again st the o f a g ov e rn m e n t in stitu tion th a t can b re a k the n ew fa rm a ct a n d y e t w h ea t fa rm ers, a lo n g w ith en terprises com m itted to th eir ch a rg e ? all th e others, are still p e r fe c tly w illin g to receiv e “ I insist that the o b lig a tio n to p a y fo r and m aintain them sh ou ld n o t im pose such b u r g ov ern m en t ch eck s fo r d o in g n oth in g. E v e n tu a lly this “ jo y - r id e ” m ust be p a id fo r b y ev ery ta x p a y e r in the co u n try , an d that in clu d es the farm er. One fin an cia l w r ite r who has been v isitin g th rou g h th e m id d le w est pu ts it this w a y : “ D espite the p ro p a g a n d a fo r the n ew fa rm dens on those ca lle d u p o n to su p p o rt them as / w ill re strict em p loym en t b y p riv a te in d u stry an d c a p it a l.” The qu estion w h ich co n sta n tly com es to m y m ind, lo o k in g at it fr o m the N ew D eal p oin t o f view , is that i f m ore m on ey is to be ob ta in ed b y act, a d e cid e d r e v o lt is a p p a ren t a m on g the C on gress, th at the o n ly w a y that this can be se w h eat farm ers. cu re d is b y ta x a tion , and ta xes can o n ly be levied T hey are s ig n in g p rotests an d org a n izin g , w h ile at the same tim e th ey are re fu sin g to cu t th e ir a crea g e in m a n y in stances. and im p osed u p on in d iv id u a ls an d co rp o ra tio n s w h o are su ccessfu l and m a k in g m on ey. T he c ro p re p o rts in d ica te an oth er B u t in o rd e r that c o rp o ra tio n s m a y su cce ed g o v su rplu s and little p r o s p e c t o f h ig h er prices. ern m en t restriction s and g ov e rn m e n t co m p etition m ust be re d u ced . H ow ev er, i f the a llotm en t gra n ts to fa rm ers are tak en a w a y a rea l u p risin g w o u ld result. I d o t n ot k n o w h ow m u ch g o v e rn m e n t w e can T h ey are so a ccu sto m e d to re c e iv in g ch eck s p a y fo r , b u t I do k n o w that w e m a y v e r y sh ortly f o r d o in g n o th in g th a t th ey h ave com e to d e p en d on this in com e fo r e x tr a s .” reach the p o in t w h ere the F e d e ra l g ov ern m en t w ill be so co m p e titiv e in its ow n a ctiv itie s that p riv a te in d u stry ca n n o t su cceed in m a k in g a The one fu n d a m e n ta l la w w h ich e v en tu a lly m ust op erate is the la w o f su p p ly an d dem and, an d w h en th at is a g a in g iv e n a ch ance I th in k that m any of the a g ricu ltu ra l p rob lem s w ill p rofit, and if no profits are m ade no ta xes can be co lle cte d . solve them selves. Eliminate E n y H ow M uch Government Can W e Pay For W it h th e g overn m ent s p e n d in g $9,000,000,000 fo r the fiscal year w h i c h ended Ju n e 30th, this b e in g the la rg e st p ea ce tim e e x p e n E y v m r it ~ U n i t The to ta l am ou n t o f ta xex em p t secu rities in the e d States is a p p ro x i- m a tely $50,500,000,000, in clu d in g F e d e ra l, state and oth er g ov ern m en ta l o b lig a tion s. T here is no reason as I see it w h y these secu ri d itu re on re co rd , s h o u ld n ’t som e co n sid e ra tio n be ties sh ou ld be ta x fr e e at a tim e w h en in creased g iv en to the qu estion o f h o w m u ch g ov ern m en t w e can p a y fo r ? reven ues are n eed ed. T h is qu estion w as d iscu ssed b y F r e d H. C lausen, Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 The g ov e rn m e n t sh ou ld, h ow e v e r, m ake a defi nite d e cisio n either fo r or again st ta x -e x e m p t obli- 9 gation s so th at in v estors m ay k n o w w h a t to e x th a t th ey p ect. This u n ce r ta in ty on the p a rt o f the g ov ern m en t m ind s o f th eir ow n p e o p le i f the em pire is to w as v o ic e d r e ce n tly b y T hom as I. P a rk in so n , p re si the w o rld . den t o f th e E q u ita b le L ife A ssu ra n ce as the life in su ran ce com pan ies, to fe e l a b ou t b u y in g ta x -e x e m p t o b lig a tio n s o f the g o v e rn m e n t w h en it is v e r y p ossible th a t the ex e m p tio n m a y be v o id e d at an y m inu te an d w h en the in stitu tion s have been n otified o f the g o v e r n m e n t’s in ten tion o f ta k in g a w a y the v e r y th in g it offers to m ake its secu rities a ttra ctiv e , ta x e x e m p tio n 1? It is the d u ty o f the g o v e rn m e n t ra th er to clea r up the ta x e x e m p tio n q u estion at on ce an d fo r all th rou g h c o n stitu tio n a l a m en dm en t re-establish th em selves in the a ga in tak e its r ig h tfu l p la ce a m on g the n ation s o f S o cie ty , w h en he s a id : “ H o w are the in stitu tion s w h ich in v est the p e o p le ’s m on ey , such m u st than to en d ea v o r to ou tsm art the n a tio n ’s business m e n .’ The qu estion o f ta x ex e m p t secu rities has been d iscu ssed an d d e b a te d in and ou t o f C on gress fo r years, an d it w o u ld be m ost h e lp fu l fo r all c o n cern ed if the co m in g session o f C ongress w o u ld settle th is im p o rta n t p rob lem . “ Ezeemunny Certificate ” T h ere has been no crazier id ea in all A m e rica n the h istory p o litics th an of the “ T h irty D o lla rs E v e r y T h u r s d a y ” schem e w h ich w as p ro m o te d b y S h erid a n D o w n e y , w h o d efea ted S en a tor M c A d o o fo r the D e m o cra tic n om in a tion fo r sen ator fr o m C a liforn ia . One o f m y b a n k er fr ie n d s fr o m L os A n g e le s has ju st sent m e an “ E zeem u n n y C e rtifica te ,” w h ich rid icu le s the w h o le im p ossib le plan. On the fr o n t o f the certifica te is a p ictu re o f S an ta C laus an d a p o t o f g o ld . In the b a c k g ro u n d is a b e a u tifu l ra in b o w on w h ich is p rin ted ‘ ‘ E P lu rib u s K id d e m — 30 T h u rsd a y . ’ ’ A t the to p o f this certifica te, w h ich is ca lled an ‘ ‘ IO U , ’ ’ it says ‘ ‘ This certifies th a t th ere is on d e p o sit in the p o t at the end o f the ra in b o w tw e n ty w o o d e n n ic k e ls .” T he nam e o f the co m p tr o lle r is Pass D e B u ck , an d the tr e a s u r e r ’ s nam e is H a m N. E g g s. On the b a c k o f the certifica te it says, “ T he state British Prestige W h ile w a r has been p re v e n te d o f co n fu sio n — f o r use in b a n k ru p tin g state trea s in E u ro p e , at least fo r the tim e u ry , state em p loyes, c o u n ty trea su rer, co u n ty em b ein g , B ritish p re stig e has su ffered p loy es, c ity treasu rer, c ity em p loyes, p u b licly trem en d ou sly . N o one w a n ts w a r an d n o one fa v o r s b lo o d sh e d , o w n e d u tilities, bay' b rid g e , sch o o l teach ers, sch ool but the p rice w h ich the B ritish an d F re n ch d e m o c fo r C a lifo r n ia .” It seems im p ossib le that such an id ea as M r. D o w n e y has p r o p o se d w o u ld c a rry him in to the ra cies p a id to stop H it le r ’s w a r p ro g ra m m a y be v e r y costly . A t the m om en t b o th G reat B rita in an d F ra n ce d istricts, y o u , me, e v e ry o n e else. U n ited States Senate. S cra m b led eggs H e is o p p o se d b y P h illip n eed to re-establish th eir p re stig e in the m inds o f B a n c r o ft, w h o is a m an o f fine ch a ra cter and u n th eir ow n citizens. One w e ll-k n o w n p o litic a l w r ite r pu ts it this p u t M r. D o w n e y d o w n an d out, and d o a w a y on ce w ay: “ It has o fte n been said th a t d icta to rs n eed gram as M r. D o w n e y p rop oses. p restig e in o rd e r to su rvive. q u estion ed a b ility . It is to be h o p e d that he w ill an d fo r all w ith su ch a fa n ta stic an d id io tic p r o T h a t is true. B u t it is also tru e th at d em ocra cies, an d p a r tic u la r ly d e m o cra cie s th at g o v e rn em pires, n eed p re stig e in o rd e r to im press th eir ene m ies and to u n ite an d in v ig o ra te them selves. Borrowers Needed T he real p ro b le m fo r ban k ers to d a y is to find su itable b o r r o w ers to w h om th e y can m ake In the lo n g ord ea l w h ich th e y h ave to fa c e the B ritish w ill n eed m a n y th in gs, an arm y, a ir s a tis fa c to r y loans. In a re ce n t an alysis m ade b y F e d e ra l R eserve planes, allies. B u t w h a t th e y n eed first in sta tisticia n s th e y estim ated that the len d a b le p o r ord er to get the oth er th in g s th e y w ill u lti m a tely n eed is a r e c o v e r y o f p re stig e w h ich tio n o f d ep osits in the U n ited States w as abou t $3,280,000,000 co m p a re d w ith n orm a l n eeds o f w ill im press u p on th eir ow n p e o p le an d upon $500,000,000. the ou te r w o r ld th eir w ill to s u r v iv e .” I d o n o t a gree w ith som e that the B ritish em p ire is g ra d u a lly d isin te g ra tin g , b u t I d o b eliev e W h a t the b a n k s o f A m e rica n eed to d a y is m ore b o rro w e rs, an d th e y w ill g et these in in crea sin g n um bers ju s t as fa st as con fid en ce returns. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 dnnual Gcnomtion A M E R IC A N BA N KERS A S S O C IA T IO N HOUSTON November 14 to 17 OR VAL W . ADAMS President, American Bankers Association OMPLETION o f the program for the sixty-fourth annual convention o f the American Bankers Associa tion which will be held at Houston, Texas, November 14th to 17th, has been an nounced by Orval W . Adams, president o f the association and executive vice president of the Utah State National Bank of Salt Lake City, Utah. The convention will have three general sessions, five divisional sessions, a. bank management round table conference at which intermediate credit will be dis cussed, a public relations clinic, and a, public relations laboratory. C The public relations features o f the program will include a. laboratory in which will be shown to the delegates what the association is doing in the field o f advertising, publicity and radio and what the association and banks are doing in the field o f moving pictures. Delegates from the northern states are advised to wear normal fall clothing. The Houston weather authorities state that the average temperature during November in Houston over a long period o f years has been 61.5 degrees. The general sessions will be addressed by national leaders including Jesse H. Jones, chairman o f the Reconstruction Finance Corporation; W . J. Cameron o f the Ford Motor Company; Dr. Adam S. Bennion, assistant to the president o f the Utah Power and Light Companv of Salt Lake City, Utah; J. Reuben Clark, Jr., chairman o f the Foreign Bondhold ers Protective Council, Inc., of New York City; Dr. Karl T. Compton, presi dent, Massachusetts Institute o f Tech nology, Cambridge, Massachusetts; and Bishop James T. Freeman, Episcopal Bishop o f Washington, D. C. Election o f officers will be he’ d at the second general session, Wednesday morn ing, November 16th, and the inaugural ceremony fo r new officers will be held Thursday evening at which the Houston glee club and Mario Chamlee, New York Metropolitan Opera star, will sing. The complete program is as follow s: Meet,” by Dr. Adam S. Bennion, assist ant to the president, Utah Power and Light Company, Salt Lake City, Utah, and “ Constitutional Liberties,” by J. Reuben Clark, Jr., chairman, Foreign Bondholders Protective Council, Inc., New York City, and former ambassador to Mexico. Third General Sess'on, Thursday, No vember 17: “ Science Employment and Profits,” by Dr. Karl T. Compton, presi dent, Massachusetts Institute o f Technol ogy, Cambridge, Massachusetts, a n d “ Maintaining Spiritual Values in Amer ican Life,” by Bishop James T. Freeman, Episcopal Bishop o f Washington, D. C. Inaugural Ceremony, Thursday Night, November 17: Houston Glee Club under the direction o f Walter R. Jenk'ns. Mario Chamlee, leading tenor, Metropolitan Opera Company, New York City. General Convention Sessions First General Session, Tuesday, Novem ber 15th: “ Industrial Freedom” by W . J. Cameron, Ford Motor Company, and ad dress by Jesse H. Jones, chairman, Re construction Finance Corporation. Second General Session, Wednesday, November 16: “ When Two Generations Divisional Meetings State Bank Division Meeting, Monday, November 14: “ What State Banks Can Do,” by C. B. A xford, editor, American Banker, New York City; and “ An Ex amination o f the New Economics,” by William A. Irwin, assistant educational Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 12 director, American Institute o f Banking, New York City. National Bank Division Meeting, Mon., November 14 : “ Bank Taxation,” by J. N. Quinn, cashier, First National Bank, Hugo, Colorado; “ The Banker in the Business Life o f the Community,” by Dunlap C. Clark, president, American National Bank, Kalamazoo, Michigan; and “ Pensions Preferred,” by Dr. Paul F. Cadman, consulting economist, San Francisco, Calif. Trust Division Meeting, Tuesday, No vember 15: “ Advantages o f the Cor porate Executor and Trustee,” by Hon. James Y. Allred, Governor o f the State o f Texas; and “ Phases of the Trust Busi ness,” by Lindsay Bradford, president, City Bank Farmers Trust Company o f New York. Savings Division Meeting, Wednesday, November 16: “ The Savings Bank and the Railroads,” by Fairman R. Dick, Dick & Merle-Smith, Investments, New York City; “ Savings Deposits a Growing Re sponsibility,” by Hon. William R. White, Superintendent o f Banks, New York City; and “ Something fo r Nothing,” by Philip A. Benson, vice president, Ameri can Bankers Association and president, Dime Savings Bank, Brooklyn, N. Y. State Secretaries Meeting, Tuesday, November 15: Reports o f Committee: “ Investment Portfolios,” by Don E. W ar rick, secretary, Indiana Bankers Asso ciation, Indianapolis, In d .; “ State Bank ers Association Management,” by David M. Auch, secretary, Ohio Bankers Asso ciation, Columbus, Ohio; “ State Legisla tion,” by C. C. Wattam, secretary, North Dakota Bankers Association, Fargo, North Dakota; and “ Pension Plans— State Bankers Association,” by M. A. Graettinger, executive vice presi dent, Illinois Bankers Association, Chi cago, Illinois. Addresses: “ A. I. B. and the State Bankers Associations,” by Milton F. Barlow, president, American Institute o f Banking, cashier, National Citizens Bank, Mankato, Minnesota; and “ Recent Federal Legislation,” by D. J. Needham, general counsel, American Bankers Association. Other Meetings Bank Management Round Table Con ference, Thursday, November 17: “ In termediate Credit fo r Industry,” by E. N. Dekker, assistant vice president, National City Bank, Cleveland, Ohio; “ Real Estate Loans— Values and Appraisals,” by D. Howard Doane, president, American So ciety of Farm Managers and Rural A p praisers, St. Louis, Missouri; and “ In stalment Financing and Personal Loans,” by Elmo Thompson, vice president, First National Bank and Trust Company, Tulsa, Oklahoma. Constructive Customer Relations Clinic, Tuesday, November 15: Series o f inter views conducted by William A. Irwin, assistant educational director, American Institute o f Banking on Public Educa tion, Customer Relations, Institute W ork with B. J. SehAvoeffermann, president, The Citizens National Bank, Chicago Heights, Illinois; Claude L. Stout, execu tive vice president, Poudre Valley Na tional Bank, Fort Collins, Colorado; Milton F. Barlow, president, American In stitute o f Banking and cashier, The Na tional Citizens Bank, Mankato, Minne sota. “ Another Step in Customer Re lations,” by Dr. Harold Stonier, execu tive manager, American Bankers Asso ciation. Motion picture with George E. Forman, commentator. A ptly described as one o f the nation’s One of H ouston’ s valuable assets has been her waterway. More than $42,000,000 has been spent by the Federal government and the citizens o f Houston for port improvement work. A portion o f the waterway is shown above. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 San Jacinto Shaft at San Jacinto Battleground, near Houston, Texas, marking the spot where the Texas army under General Sam Houston defeated the Mexicans under Santa Anna and won independence for Texas. real bright spots, Houston is ready for one of the most important conventions in its history, namely; the sixty-third annual convention o f the American Bank ers Association. Numerous committees under the general chairman, F. M. Law, president of the First- National Bank, have fo r many months been exerting every effort to make the Houston convention one o f the greatest ever held. Serving with Mr. Law as chairman o f various committees a re: P. B. Timpson, president, Houston Land Trust Com pany, finance committee; T. J. Caldwell, vice president, Union National Bank, en tertainment committee; Allen H. King, vice president, State National Bank, hotel committee; S. Marcus Greer, vice presi dent, City National Bank, personnel com mittee; W . N. Greer, vice president, Citi zens State Bank, information committee; Melvin Rouff, vice president, Houston National Bank, registration committee; E. F. Gossett, vice president, Second Na tional Bank, transportation committee; C. M. Malone, president, Guardian Trust Company, ball committee; Leslie Cole man, vice president, San Jacinto National Bank, coliseum committee; Mrs. S. M. McAshan, ladies committee, and A. D. Simpson, president, National Bank o f Commerce, publicity committee. A poll o f these committee chairmen reveal that all plans fo r this convention have been perfected. A city o f more than (Turn to page 33, please) 13 The ?2 ebïaslza Convention G ood Attendance at Forty-first Annual Meeting of the Nebraska Bankers Association ELEBRATIN G the forty-first an nual meeting o f the organization, Nebraska bankers from all parts of the state gathered in Omaha on Octo ber 11 and 12 for the 1938 conclave o f the Nebraska Bankers Association. In cluding bankers from New York, Chicago, and from the larger cities in surrounding states, the registration totaled 700, which we understand is about the average at tendance for such occasions. C boldt, was named member o f the nomi nating committee fo r the A. B. A., with H. A. Schneider, Plattsmouth, as alter nate. Vice presidents o f the several di visions o f the American Bankers Asso ciation were elected as follows : State bank division, J. V. Johnson, Tecumseh; National bank division, Rollie W . Ley, W ayne; Trust company division, Sam Waugh, Lincoln; and Savings bank di vision, A. J. Hallas, Omaha. E. S. Holcomb, president o f the Ne braska State Bank, Broken Bow, was chosen to head the Association fo r the next twelve months, and M. M. Taylor, vice president o f the Central National Bank o f Columbus, was named chairman o f the executive committee. Fred Thomas, vice president o f the First National Bank, Omaha, was elected treasurer, succeeding Perry Hendricks, vice president o f the United States National, o f Omaha, and o f course William B. “Billy” Hughes was re-elected to the post o f secretary. The new president, Mr. Holcomb, has been in the banking business at Broken Bow for the past 25 years, and is now holding his first office in the Association. Alvin E. Johnson, president o f the Live Stock National Bank o f Omaha, made a very nice speech o f welcome as president o f the Omaha Clearing House Associa tion. Mr. Johnson welcomed out o f town Nebraska bankers with the thought that “ Omaha is your tow n; it does not belong to Omaha, fo r it belongs to all Nebraska.” Mr. Taylor, Columbus, was elected Ne braska vice president o f the American Bankers Association. Otto Kotouc, Hum- The buffet dinner served to all conven tion delegates the night o f the first day’s session went along in great shape under the experienced guidance o f J. F. McDer mott, vice president o f the First National Bank o f Omaha, who was chairman o f the buffet dinner committee. Mr. M c Dermott, incidentally, has been quite busy during recent weeks on similar work. Just prior to the State Convention he had attended American Legion Convention, and a short time ago was in charge o f the Omaha arrangements fo r the premier showing o f “ Boys’ Town” , the current movie hit which was filmed at Father Flanagan’s Home outside o f Omaha. Stanley Maly, vice president o f the First National Bank o f Lincoln, who at tended the Nebraska Convention along with most o f the other officers o f the First National Bank, was planning to at tend the Reserve City Bankers’ Round Table meeting at Chicago. From Chicago Mr. Maly had in mind going to Culver Military Academy to see his son, Stanley, Jr., age 16, who is now in his first year at Culver. The military training habit runs through the Maly family, since Stanley is a veteran o f the Spanish-American W ar, serving at the tender age o f 17. M. M . T A Y L O R Chairman Executive Committee J. F. Ringland, now president o f the Stock Yards National Bank o f St. Paul, Minnesota, was1present at the Nebraska Convention. Joe is well known through the state o f Nebraska from his seyeral E. S. H O L C O M B President Nebraska Bankers Association years’ connection with the United States National Bank o f Omaha. The United States National Bank of Omaha did a very fine bit o f convention work in preparing and distributing com plete lists o f convention delegates each day o f the Nebraska meeting. This is actually a big job, as officers Hendricks, Moser, Rogers, Caldwell, Murphy and others o f the bank will testify, since the lists gave not only names but where the delegates were from, their banks and the name o f thier hotel. California sun tan was noted on two former bankers from Iowa and Nebraska who were present at the Omaha Conven tion. These included A. G. Sam, form er president o f the Live Stock National Bank o f Sioux City, Avho had just re turned from several months in Cali forn ia; also Willard Dressier, form er cashier o f the Stock Yards National Bank o f Omaha, who is now making his home in California. The election o f Nebraska officers o f the American Bankers Association, which was the first thing on the second day’s program, was conducted in a breezy fashion and along the lines o f the oldfashioned steam roller by that energetic presiding officer, H. A. Schneider o f Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 14 Plattsmouth, state vice president o f the A. B. A. in Nebraska. This was one of the snappiest portions o f the convention. Laird Dean, well-known banker from Topeka, Kansas, who is a candidate fo r the second vice president o f the A. B. A., subject to the Houston convention, re ceived the endorsement o f the Nebraska Association, but, under the terms o f the resolution, the Nebraska delegates to the Houston Convention are not actually tied up by the endorsement and ai’e free to use their own best judgment at the elec tion. The resolution to that effect was offered by J. M. Sorensen, vice president o f the Stephens National Bank o f Fre mont, and former president o f the Ne braska Association. Nebraska bankers have been conduct ing a quiet but efficient campaign fo r the elimination o f the double liability on (Turn to page 33, please) A t the Nebraska Convention Reading from left to right: 1— Ray Ridge, vice president Omaha National Bank; John Changstrom, vice president Omaha National Bank; and Edward Neale, assistant cashier Omaha National. 2— Around the table are, seated, R. L. Rice, Creighton, Nebraska; Mrs. John F. Davis, Omaha; John F. Davis, Omaha; Mrs. L. J. Hallas, Shelton; Miss Hallas; L. J. Hallas, president First State Bank, Shelton; Mrs. R. L. R ice; and J. 0. Peck, cashier American National Bank, Creigh ton. 3— E. E. Landstrum, assistant cashier, and Harry E. Rogers, cashier U. S. National Bank, Omaha; G. E. Nelson, vice president and cashier Farmers State Bank, M illard; Perry Hendricks, vice president U. S. National, Omaha; and Richard H. Larson, Lincoln. 4— Around the table, F. J. Patton, cashier Blue Springs State Bank; Fred Aldrich and W. S. Battey, vice presidents Continental National Bank, Lincoln; L. W. Ross, assistant cashier Live Stock Notional, Sioux City, Iow a; Henry Bodendieck, associate publisher Bank News, Kansas City; William B. Whitman, assistant secretary, and R. A. Lockwood, vice president Manufacturers Trust Company, New Y ork; and R. R. Calkins, vice president American Na tional Bank, St. Joseph, Missouri. 5— Mrs. Calvin C. Burnes, and Mr. Burnes, president Burnes National Bank, St. Joseph, Missouri. 6— J. F. McDermott, vice president First National Bank, Omaha; and Elmer Hallstrom, cashier Farmers State Bank, Avoca, Nebraska. 7— A. L. Campbell, Recordak Company, Chicago; and Fred B. Brady, vice president Commerce Trust Company, Kansas City. 8— J. F. Coad, chairman Packers National Bank, Omaha; William B. “ B illy ” Hughes, secretary Nebraska Bankers Association, Omaha; and F. E. Holt, Packers National, Omaha. 9— I. R. Alter, executive vice president First National Bank, Grand Island; and Charles C. Kuning, assistant vice president American National Bank & Trust Company, Chicago. 10— H. O. Wilson, vice president Live Stock National, Omaha; and Paul H. Kannow, vice president and cashier Fort Kearney State Bank, Kearney. 11— Roland Irvine, second vice president Chase National Bank, New Y ork; and Phil Easterday, executive vice president First National Bank, Lincoln. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 -C 15 A t the Nebraska Convention Reading from left to right: 1— M. E. Schreiber, president First National Bank, Wisner, Nebraska; R. H. Kroeger, cashier Live Stock National Bank, Omaha; Glen C. Hampton, vice president and cashier Gothenburg State Bank; H. C. K arpf, vice president Live Stock National, Omaha; and W. F. Wenke, cashier Pender State Bank. 2— Fritz Fritzson, vice president and cashier First National Bank, Sioux City, Iowa. 3—Carl D. Ganz, cashier Farmers & Merchants Bank, A lvo; Win, Kittenbrink, president First State Bank, Gothenburg; C. V. Evans, cashier Citizens State Bank, A ra pahoe; George W. Holmes, president First National Bank, Lincoln; and H. A. Schneider, president Plattsmouth State Bank. 4.— T. L. Davis, president First National Bank, Omaha; and Erwin Wright, Chicago, national bank examiner, Tenth Dis trict. 5— Homer Peterson, Frank Peck, Harold Peterson, Howard A. Miller, Austin King, and Ed Peck, all o f the U. S. Check Book Company, Omaha. 6— Carl Fredricksen, president Live Stock National Bank, Sioux City, Iow a; E. F. Jepsen, assistant cashier First National Bank, Omaha; E. T. Monroe, Omaha; Geo. O. Unruh, First National, Omaha; and M. J. Cox, cashier Stockmens Bank, Seneca, Nebraska. 7— H. A. Arnsberger, First National Bank, Omaha; and Ed gar McBride, president Commercial Bank, Blue Hill. 8— George W. Boettner, Rockport, Missouri; and Alvin Johnson, president Live Stock National Bank, Omaha. 9— Seated around the table are Verne Bartling, assistant cashier First Na tional Bank, Chicago; C. R. Gossett, president Security National Bank, Sioux City, Iow a; V ictor B. Smith, vice president Omaha National Bank; Fred L. Chapman, Federal Housing Administration, W ashington; and Emil Stake, vice president First National Bank, Chicago. 10— E. S. Holcomb, president Nebraska State Bank, Broken Bow, and new president Ne braska Bankers Association; Andrew Jensen, vice president Minden Exchange National Bank; Paul Brinkman, U. S. Na tional Bank, Omaha; L. J. Hallas, president First State Bank, Shelton; and O. J. Irwin, cashier Genoa National Bank. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 16 Government Criticism—Public Relations Jlùûws anè üecidatuïes À . J. Jorgenson, Retiring President of the Nebraska Bankers Association, Comments on Current Banking Problems and Highlights of His Admin istration in President's Annual Message to Members HEARD, on several occasions at other banker meetings, some well-delivered speeches containing some pretty sharp criticisms of government activities, especially o f those activities that are in direct competition with the banking busi ness. I could, of course, offer some criti cisms along that line, and perhaps make quite a speech on that subject, but I really prefer to make such criticisms pri vately, or at least on a small scale. Fur thermore, government criticism, aside from being a subject that makes a part o f the audience feel good, when they hear the other side get hell, and the other part o f the audience, feel more or less re sentful, I doubt the value o f criticisms so far as producing any benefits or chang ing the situation in the least. Anyway, since hearing those well meant criticisms o f government activities, I can see no noticeable change in the trend. I did think of joining the chorus o f criticisms against Mr. Jesse Jones’ sug gestion that, banks modify to some extent, their old rules for judging certain kinds o f credit risks. However after thinking over his suggestions, I came to the con clusion, there might be some merit in his remarks. That since the examining authorities have changed from lettered or alphabetical classifications to classify ing by numerals, and have decided that slow loans, i f eventually paid, were all right after all, I concluded we might as well take on some loans that we had al ways considered all right, but had passed up because of probable criticism by the examiner. W e picked up a few nice loans that we set up on a monthly pay ment basis, secured them as best we could, and it looks now as though they will be entirely liquidated ahead o f some o f our highly liquid loans. So, it begins to look like Mr. Jones may have given us a good idea after all. There is also the subject o f Public Re lations that is so prominent nowadays. However, I suspect you, like myself, are getting fed up with those two words, public relations, wish someone could coin a new phrase. O f course, we all know I Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 the value of making friends in place o f making enemies, and it looks like bank ers are making a good deal o f headway along that line. Most o f us now realize there are social problems as well as eco nomic problems, and that it is just as important to solve one set o f problems as the other. Furthermore, most bankers have had their ears knocked down so often and fo r so long a tipie, that few o f them are “ haughty and proud” as they once were. Most people now call their banker, Bill or John, instead o f Mr. So and So. Also looks like most people are beginning to take the demogogue’s lambasting of bankers with several grains o f salt. People are finding out that bankers and business men furnish jobs, while politicians just talk about jobs. Loans It might be in order fo r me to say some thing about the most discussed subject o f more loans to businessmen— I believe they are usually referred to as little busi nessmen. I have no doubt there is some truth in the assertion that some worthy business men who have been unfortunate in losing part o f their capital, and most o f their former volume o f business, are finding some difficulty in getting loans from banks. However, I feel sure, especially since loans that were formerly classed as capital loans, are now looked on with some favor by examiners, that business men, whether little or big, who are oper ating on a safe and profitable basis, will be pretty well taken care o f by the banks, from here on. However, the public, and especially those who talk so glibly about “ getting financed” and “ lines o f credit,” must real ize that banks or any other lending agencies, including government lending agencies, cannot loan money fo r operat ing and living expenses. They must real ize that a loan is not, and never can be, a substitute fo r profits. I personally be lieve that a very large per cent o f busi nessmen who claim to be in need o f loans, are really in need o f more business and more profit. A loan won’t solve the prob lem o f excessive overhead, inattention to business, poor judgment, nor a lack o f business volume. In such cases, borrowed money only prolongs a hopeless situa tion. I thought once o f criticising govern ment lending agencies fo r their slowness o f action; fo r being so tied up with red tape that they usually move along with about the same speed a fly does when emerging from a sticky flypaper. I have learned from such experience that gov ernment lending agencies can seldom if ever be hurried along much. However, I can see there are usually pretty good reasons fo r their slowness o f motion. They deal with things and not with people. I mean by that, the borrower himself is generally not known very well if at all, to the lending agent. They cannot rely very much on the “ moral risk” feature of their loans. They must depend al most entirely on security. The local banker thus has a great advantage over the non-resident lender. It occurs to me therefore, that we should not criticise those agencies fo r their inefficiency due largely to red tape, fo r those handicaps are really in our favor. I f one o f our customers needs $50 or $100 or any or dinary amount o f loan, we can give him quick action, and when a man wants a loan, action is really appreciated. Legislative While talking with our old friend, Dan Riley, sometime ago, and learning some thing about the important work done by his legislative committee, I thought his activities might furnish a good topic for a speech. I still believe such is the case. During this conversation with Dan and hearing o f some o f the crazy legislation that had been proposed in the past, it seemed to me the legislative committee had really performed as important serv ice fo r the public welfare as for the banks. Generally speaking, legislation that is detrimental to banking, is equally detrimental to the public. Dan tells me he spends very little time promoting legis- 17 lation for banks, but spends a great deal o f time, not only during legislative ses sions, but most all o f the time, pointing out fallacies in proposed legislation to legislators who are not so familiar with economics and banking as Dan is. His advice on certain proposed legislation is often sought, and Dan has the reputation o f being scrupulously honest. There are, o f course, many other as sociation committees constantly at work. I can’t begin to tell you about their activities. At this time there are 19 d if ferent committees engaged in as many varieties o f endeavor in the interests of banking in our state. At this particular time the committee fo r elimination of state bank double liability is extremely active. I am advised this committee is getting a lot o f support from National bankers as well as the state bankers them selves. I hope the good people o f our state will vote “ FOR” enough times to pass the amendment that will relieve stockholders o f the state banks o f the handicap o f double liability. The people o f this state need state banks, and the state banks need every possible legitimate advantage if they are to be successful and sound. (Turn to page 72, please) Employers Mutual Casualty In New Home HE Employers Mutual Casualty Company, Des Moines, founded in 1911, last month held open house in its new quarters at 210 Seventh Street. The visitor enters a spacious foyer direct ly from the street, which allows access to all departments and executive offices from this central room. Offices o f J. A. Gunn, president and treasurer, J. W . Gunn, vice president, and John F. Hynes, secretary, all beautifully paneled in wal nut, are located at the front o f the build ing on either side o f the entrance. The well-appointed directors room is located close to the office o f President Gunn. The large central space on the ground floor is devoted to general office detail o f the Company, and is flanked on either side by private offices. A t the rear o f the general office is a balcony upon which further clerical details are handled. The lighting system throughout, installed by Louise A. W eston Lighting Studio, is the last word in efficiency. The indirect fix tures prevent glare, and at the same time no shadow is cast on the desk o f any worker. The basement o f the building T houses a recreation room and heating plant, and the building is o f course com pletely air conditioned. In addition to the officers named above, directors o f the Employers Mutual Cas ualty Company are Dr. L. E. Kelley, George E. Patterson, W . Z. Proctor, and Anselm Frankel, Des M oines; Thomas H. Turk Omaha; 0 . B. McKinney, Den ver; H. L. ITjermstad, Red W ing, Minne sota; and M. J. Wilkinson, W ichita. Assets o f the Employers Mutual Cas ualty Company are invested almost en tirely in Government, muicipal and school bonds o f prosperous communities. All are high class securities capable o f con version into cash upon short notice, and none is delinquent as to interest or prin cipal. In its twenty-seven years o f oper ation, the Employers Mutual Casualty Company has never had a default on any bond, which is indeed a tribute to the careful management o f its officers. In its financial statement as o f June 30,1938, the company lists bonds at their market value o f $2,193,758, cash on hand o f $417,242, premiums in course o f col lection but not due o f $723,551, with total admitted assets o f $3,422,480. Reserves o f the company total $2,829,676, with sur plus over all liabilities o f $612,804. The Employers Mutual Casualty Company has an agency force o f more than 1800 agents and brokers, writes auotmobile, workmen’s compensation, general liabil ity, plate glass and elevator insurance, and operates in the states o f Iowa, Illi nois, Nebraska, Minnesota, Kansas, North Dakota, South Dakota, Colorado, Missouri, and Mississippi. Centered above is John A. Gunn, president and treasurer o f the Employers Mutual Casualty Company, seated at his desk. At the le ft o f the two lower pictures is John F. Hynes, secretary o f the Company, and John W . Gunn, vice president. The picture at the right was taken from the balcony at the rear o f the building, and shows the ample space devoted to the general business detail o f the organization. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 18 Dr. Katherine Blunt, president o f The Connecticut College fo r Women, at New London, told me that they had 800 appli cations fo r their freshman class this year but only accepted 233. Dr. Blunt was a classmate at Vassar o f Mrs. Harry H. Polk, wife o f the president o f the Polk-Peterson Corporation, Des Moines. N THE New York Produce Exchange Building there is still in operation the original Otis elevator which was installed in 1862. The operator starts and stops the elevator by a cable which he pulls up or down as he desires. Joseph H. Mathews, manager o f Lamson Bros. & Company, 50 Broadway, took me to lunch in this building at the New York Produce Exchange Club. I Baseball seems to still be a good busi ness as each of the Yankee players re ceived $5,815 during the W orld’s Series, and each o f the Cubs were paid $4,674. The total fo r the four games was $81,166, this being the first time in five years that the W orld’s Series “ gate” fell short o f $1,000,000. Even if the Cubs did loose, P. K. Wrigley, their owner, needn’t wor ry because we will still chew gum as much as ever. With all o f the Congressional conver sation about silver production in the United States, it is less than the annual peanut crop in our forty-eight states. In Connecticut, if you have not had any accidents with your automobile, you can have your own initials put on your license plates. This is a permanent plate so long as your record remains good, and the only part which is changed on the plate is the year. O. Howard Wolfe, cashier o f the Phil adelphia National Bank, may not be able to attend the American Bankers’ Con vention at Houston, Texas, November 14 to 17, because he is chairman o f the Membership Boll Campaign o f South eastern Pennsylvania, which includes Philadelphia and the surrounding coun ties, fo r the American Red Cross. The quota fo r the campaign is $275,000. Knowing Howard as I do, I am sure that he will reach his goal by the time the campaign is over, but his many bank ing friends throughout the United States will miss seeing him at Houston. The White Turkey Inn o f Danbury, Connecticut, was built in 1760, and is situated among the beautiful hills of the lower Berkshires. Mrs. DePuy and I dined there on Columbus Day with Mr. and Mrs. Malcolm A. Sedgwick. On their menus is this descriptive para graph : “ The old Stairways, the hand-cut Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 Beams, the four-poster Beds and fine old Prints, all highly prized, create Surroundings giving a Feeling of Leisure and Repose.” On the back o f the seats at the Radio City Music Hall are small electric lights which you can turn on and oft in order to read your program or see what time it is. The International Casino, which had to close last year because o f the depres sion, is now going full blast again. The Casino seats 1,400, this being the larg est dinner-theatre place in the world. The minimum price on week-days is $2.50 and on Saturdays and Sundays it is $3.00, which does not take into ac count any extras for cocktails or tips. Evidently the “ recession” is over. In New York City there are about 12,000 taxis, 7,000 o f which are company owned and 5,000 individually owned. There have been several requests by various corporations to put additional taxis on the streets during the W orld’s Fair, but Mayor LaGuardia has said there were enough already to take care o f the increased crowd which is expected. Admiral Byrd is writing a new book which is soon to be published entitled “ ALONE.” Earl Balch, president o f Putnam & Sons, will be the publisher and he told me some o f the very interesting episodes which will be described in this volume. Walter Von Tresckow, president o f Young & Ottley, Inc., New York City, says he believes that any genuine and lasting recovery must o f necessity be slow and orderly. He told me that while there have been sudden rises from a low level in the Federal Reserve Index in the past, except where they followed a preliminary period o f slow business im provement, they have not lasted more than a few months. At one o f the meetings o f the New York City Rotary Club, which I at tended, the guest o f honor was Sabu, the Indian elephant boy, who is featured in the motion picture “Drums,” and whose previous picture was “Elephant Boy.” He is a most unassuming young man and, o f course, as you know if you have seen any o f his pictures, speaks excellent English. While in New London I met Joseph A. Stanners, cashier and trust officer o f The Union Bank and Trust Company o f New London, which is the oldest bank in Connecticut, and the fourth oldest in the United States, having been incor porated in 1792. The growth o f the bank and its standing in the community has been accomplished without its member ship in either the Federal Reserve Sys tem or the Federal Deposit Insurance Corporation. Arthur M. DeBebian, second vice president o f the Chase National Bank, said their hank statement, as o f Sep tember 28, was the second largest in the history o f the bank, and, o f course, he, as well as the other officers o f the bank, was proud o f this fine showing. W. P. A.— W e putter along! At a News Reel Theatre at 44th St. and Broadway, Prime Minister Cham berlain’s picture was hissed, and the same news reel picture at the Radio City Music Hall was applauded, indicating that there is quite a different sentiment existing between the class and character o f the individuals who attend these two theatres. O f the 120 Woolworth Stores in New York City, there is only one that is open at night and that is located at 1516 Boardway. W. J. Pickering, president o f the Allen Wales Adding Machine Corporation, is a royal host. Mrs. De Puy and I enjoyed his hospitality one night by first having cocktails in his apartment at The Bar clay, and then enjoying dinner and the Ice Show in the Terrace Room o f the Hotel New Yorker. Walter N. Brand, vice president o f the company and in charge o f their plant at Ithaca, N. Y., together with Mrs. Brand, were also among the guests. Mr. Pickering came originally from Iowa, where he repre sented the Remington Typewriter Com pany, o f which he later became vice president and general sales manager fo r the United States and foreign countries. He has been in every country in the world and has made twenty-four trips to Europe. J. Fletcher Farrell, vice president and (Turn to page 37, please) 19 M EM BER FED ERAL D E P O S IT IN S U R A N C E C O R P O R A T IO N Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 A r e Future Purchases A ffected by Ohattel lilûïtûaûe Leins? UESTION: A South Dakota bank made a loan to a farmer in that state o f certain funds. As security, the farmer gave the bank a chattel mort gage covering all the horses he owned at the time or that he might thereafter acquire. A fter he signed the mortgage he acquired certain horses. Did the lien o f the mortgage extend to those horses so acquired? YES. It has been consistently held in South Dakota that a chattel mortgage given on property to which the mort gagor has not yet acquired title is an agreement to create a lien and that the contemplated lien attaches as soon as the mortgagor acquires the property. This holding is not followed in all states, but it is what is termed the equity rule and it is generally followed where mort gages are held to be liens and not trans fers of title. Q UESTION: An Iowa bank, some what like the South Dakota bank mention in the preceding question, made a loan to a farmer in Iowa o f certain funds. As security, the farmer gave the bank a chattel mortgage covering all machinery, produce and stock lo cated in his farm together will all fu ture acquisitions o f machinery and pro duce. A fter the farmer signed the mortgage he acquired certain hogs. Did the lien o f the mortgage extend to those hogs? NO. The answer to this question rests in the wording of the mortgage. It cov ered all machinery, produce and stock together with all future acquisitions of machinery and produce but it did not cover all future acquisitions of stock. Since the hogs were acquisitions of the stock after the execution of the mort gage the lien of that instrument did not extend to them. Q UESTION: It is a well known rale o f law that communications be tween an attorney and his client priviledged and that a disclosure o f them cannot be compelled. Is this rule so all inclusive that an attorney cannot be compelled to disclose the fa ct o f his employment, the name o f the person em- Q Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 This, and Other Timely Legal Questions Are Answered B y the LEG AL DEPARTM ENT ploying him, and the address o f that person? NO. The rule making communications between an attorney and client privi leged from disclosure ordinarily does not apply where the inquiry is confined to the fact of the attorney’s employment, the name of the person employing him, and the address of that person. The privilege from disclosure presupposes the relationship of attorney and client and does not attach to inquiries regarding the creation of that relationship. the insurance proceeds paid to them. Can they do so? NO. In each of the few cases in which the point has been involved, it has been held that insurance effected on property conveyed in fraud of creditors does not take the place of the property after its destruction by fire. According ly, the proceeds of such insurance are not subject to the claims of the grantor’s creditors. UESTION: A Nebraska banker ver bally agreed with his neice that if she would keep house and provide a home fo r him as long as he lived he would will her all his property. This she did. Upon his death it was discov ered that he had not made the will. Could the niece enforce the agreement? YES. In this case a court of equity would grant specific performance of the verbal agreement to will the deced ent’s property to his neice, for there was no question regarding the existence of UESTION: The owner o f a butcher the agreement and its terms and the shop in North Dakota mortgaged niece had fully performed her obliga certain personal property in the shop to a banker there. The owner became in tions thereunder. To fail to do so would amount to fraud on the niece. volved financially and did not pay the mortgage when it fell due. The holder o f the mortgage, instead o f foreclosing, UESTION: As evidence o f and as went into the business o f operating a security fo r the indebtedness Sorbutcher shop at the location formerly isteau became indebted to Brown in occupied by the mortgagor and used Minnesota. He delivered to Brown a the property upon which he held the promissory note and mortgage, both duly mortgage as his own fo r approximately signed by him and his wife. Brown two years. Did he, by such action, negotiated fo r value and before maturity cause the lien o f his mortgage to be ex the note and mortgage to a hank in that tinguished ? state. The bank had no knowledge that YES. A mortgagee of personal prop the w ife claimed she did not receive erty who takes possession thereof must any consideration fo r the note and that proceed to foreclosure without unrea she signed it only to bind the real estate sonable delay or the lien of his mortgage and not to be personally liable therein will be extinguished. The two year at the time it took the instruments, but, period involved in this case was unrea later, when the note was not paid on its sonable and the banker lost his lien by due date, it found that such a contention his failure to act promptly and foreclose. was being made. The bank acted in good faith at all times in the matter. Can the w ife’s contention prevail? UESTION: O’Malley conveyed cer NO. The bank took the note in good tain property to Andrews to de are faith, for value, and without notice of fraud his creditors. Andrews insured any alleged defect before maturity. It the property against loss by fire. The was a holder in due course. Soristeau’s property burned before the conveyance to Andrews was set aside by O’Malley’s wife was liable to the bank by reason of (Turn to page 29, please) creditors. The creditors sought to have Q Q Q Q 21 One o f the highlights o f the Northwestern National Bank and Trust Com pany’ s new proof department operation is their method o f proving deposits. This group of electric duplex calculators, which accumulate individual totals and a grand total at the same time, makes it a fast, simple routine. Control totals for the various classifications are quickly sum marized here, thus providing a media for accumulating total deposits for general ledger purposes. On these machines, ciphers print automatically, and entire amounts can be w rit ten with one motion o f the hand— two important factors which contribute much to the speed with which work is done. Proof Department Problem Solved HE logical solution to most proof department problems lies in simpli fication o f routine. At least that has been the experience o f the Northwest ern National Bank and Trust Company, Minneapolis, Minnesota, after operating a simplified plan fo r the past two years with marked success. As put into practice by this bank, the plan has provided fast item flow, pre ferred handling o f “ rush” items, a uni form working day, close control over items at all stages, and quick localization o f errors. Equally important, all equipment now used is simple to operate and low in cost. W . O. Johnson, assistant cashier, pointed out that this simplified routine has still another advantage, one which the Northwestern National Bank con siders o f vital importance. “ W e have an effective answer to the problem o f obtaining and developing the right type o f employe,” he said, “ for, in addition to improving the handling of items, our present p roof plan actually facilitates the training o f new employes. “ Few ambitious young men today are willing to follow the old— and tradition ally long— route in banks to executive positions. W e are overcoming this ob jection by teaching these people banking fundamentals as rapidly as it can be thoroughly done, by reducing the amount o f time which they must spend on clerical routine, and by advancing them into p o T > V > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sitions of responsibility as soon as is practical. New Em ployes “ The p roof department is generally rec ognized as the ideal place to start new employes because in this one place new employes can learn a good deal about banking procedure,” Mr. Johnson con tinued. “ In the past, it has not been practical to train individuals here be cause operation has been so highly spe cialized that the services o f permanent, trained workers have been required.” Under the plan adopted by the North western National Bank and Trust Com pany, most of the jobs in the depart ment have been so simplified that they can be learned in a comparatively short time. “ W e employ mostly girls,” said Mr. Johnson, “ but men, ultimately intended for other positions, are put into the de partment fo r training. When they have acquired a knowledge o f operations, it has been our experience that replacing them is no problem and that the replace ments do not weaken the department.” It is also claimed that the present method of operation has built a better all-around department. The employes are rotated among the various jobs so that they acquire a working knowledge o f each— a procedure which has obvious advantages o f sickness, vacations, or de partures. The versatility also means that, if necessary at any time, the work ers can be marshalled at the point of greatest stress. With this emergency measure always available, “ jamming up” o f work is unknown. Underlying the entire structure is sim plicity— a quality which makes possible fast item flow, flexibility, low cost, and the other advantages. Most of the item sorts can be learned quickly by a per son having no previous experience what ever. The calculating and adding ma chines used are o f a simple type, and can be operated efficiently with little training. How has the plan worked in practical, every day use? Mr. Johnson had very definite feelings on that subject. “ W e put it to a severe test during 1937, which was a record year fo r us in volume o f items,” he said, “ and it measured up to our hopes in every way. In my opinion, it has proven to be one o f the most bene ficial moves we have ever made.” S im p licity Following items through the p roof de partment in this large Minnesota bank supplies convincing evidence that claims fo r an efficient operation have sound foundation. From beginning to end, there is a simplicity and smoothness o f routine which makes it easy to under stand why the Northwestern National Bank is pleased with its simplified proof plan. Northwestern Banker November 1938 22 Both deposits and incoming mail items are first divided into two classes— “ large” (those containing six checks or more) and “ small” (those with five checks or less). The items in each large deposit are soiled into three classifications— transit, clearings, and on us — miscellaneous. Guide cards o f three colors are used to separate, and identify those classifica tions within each deposit. Blue repre sents transit items, white is clearings, X. and yellow is on us— miscellaneous. “ Nothing could be simpler than this operation,” Mr. Johnson commented. “ All that the sorter need know is whether a check is drawn on an out-of-town bank, (Turn to page 34, please) j Cjooò 72 ews In t h e $5,000,000,000 RISE IN IN C O M E F O R E C A S T IN LAST H A L F Business is gaining momentum at a pace which indicates that national income for the final six months o f this year will be about $5,000,000,000 more than in the first half, according to a survey by the United Press. That would be the largest second half expansion in more than a de cade. All major lines o f business have im proved substantially from the year’s lows and economists and businessmen esti mated that the final three months would be marked by further recovery. C A R L O A D IN G R E A C H N EW H IG H FO R Y EA R Railroad freight loadings fo r the week ended October 1, totaled 697,938 cars, a new peak fo r the year, it was announced by the Association o f American Rail roads. The 697,938 total constituted an in crease of 22,235 cars or 3.3 per cent, compared with the preceding week. C H R Y S L E R REHIRES 34,000 W O R K ER S President K . T. Keller o f Chrysler Cor poration announced that the company had recalled 34,000 employes and predicted that more men would be hired as produc tion on 1939 models gets into full swing. MEMBER BANKS' BUSINESS LO A N S UP 28 M ILLIO N Business loans o f federal reserve mem ber banks in 101 leading cities, expanded $28,000,000 in the week ended October 12, the largest weekly gain in “ commer cial” borrowing this year, the combined statement o f these institutions disclosed. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 H e a d l in e s Commercial, industrial and agricultural loans were shown to total $3,924,000,000 at October 12, their highest level since June 29, when the total was $3,936,000,000. BETTER SENTIM ENT IS N O TED BY JO N E S The “ operation o f human nature” in meeting the necessities fo r living, working and gathering crops was credited by Chairman Jesse H. Jones, o f the Recon struction Finance Corporation, with drawing the United States back to busi ness recovery. “ Everybody I see or hear from ,” he said, “ is hopeful. Business is better. Railroads are showing more movement.” RESIDEN TIAL BUILDIN G UP 52 PER C E N T Residential building contracts awarded in September had a value 52 per cent greater than those awarded in the cor responding month o f 1937, according to the compilation o f F. W . Dodge Corpora tion. Contracts awarded fo r dwelling accom modations o f all kinds in the thirty-seven states east of the Rocky Mountains amounted to $99,574,000, compared with $99,732,000 in August o f this year and $65,590,000 in September, 1937. R U RA L RETAIL SA LES H EA V Y Farmers played a cheerful tune on the cash registers o f retail shops in agricul tural areas during September, ringing up the largest volume o f sales fo r the year to date. A fter allowance fo r seasonal factors, a recent survey by the department of commerce stated, rural retail sales were only seven per cent behind the comparable period a year ago. -V The adjusted total fo r the first nine months was a bare eight per cent behind the 1937 level. LIFT S C H E D U L E O F P R O D U C T IO N Chairman A lfred P. Sloan, jr., has announced that General Motors is revis ing its production schedules upward and will employ about 35,000 additional men. He also announced that salaries will be restored to the levels that existed prior to a reduction that was made last Feb ruary 28. RESERVE INDEX HITS 90 Increased business activity that has been under way since early summer pushed the seasonally adjusted index of the Federal Reserve Board for Septem ber up to 90, the first time that such a high level has been reached since October last year, it was announced in the board’s October bulletin. '■r C O M M O D IT IES SPURT U PW A RD Industrial raw material prices forged ahead in October in one o f the broadest advances o f recent months. Sharp gains were scored in such futures markets as cotton, rubber, hides and raw silk. Copper prices were advanced one-eighth o f a cent per pound. W A R D SA LES SET R E C O R D Advanc’ng 2.9 per cent over the like 1937 month, September sales o f Mont gomery W ard and Company established a new record fo r that period in the com pany’s history. September sales totaled $38,555,611, against $37,458,815 a year earlier, the former peak, the company’s monthly report' showed. This was the second consecutive month that sales have gained over a year ago and reached new high ground. 4 23 THERE’S A BURROUGHS FOR EIERT B a rth AccXM ^tUtCf, (le<ÿuisi&M e*it For many years Burroughs has c a rrie d on an intensive study o f bank accounting in a ll its phases, and has d e v e lo p e d a w id e ra n g e o f machines and features to meet p ra c tic a lly e ve ry requirem ent o f m o d e rn BURROUGHS TYPEWRITER ACCOUNTING MACHINE b a n k in g . Y o u r lo c a l Burroughs re p re se n ta tive is fu lly q u a lifie d to discuss your machine equipm ent needs, and BURROUGHS HIGH-SPEED POSTING MACHINE to show you how new Burroughs im p ro ve ments and developm ents a re h e lp ing banks e ve ryw h e re to do their a c c o u n tin g speed, w o rk ease w ith and g r e a te r s im p lic it y . BURROUGHS ADDING MACHINE CO. DETROIT, MICHIGAN BURROUGHS ELECTRIC CARRIAGE TYPEWRITER I BURROUGHS ADDING SUBTRACTING MACHINE BURROUGHS DESK ADDING SUBTRACTING MACHINE BURROUGHS ELECTRIC DUPLEX CALCULATOR Burroughs Visit the Burroughs Exhibit at the American Bankers Association Convention in Houston, Texas, November 14th—17th Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 24 Public Relations Inside and Outside the Bank UBLIC Relations has perhaps re ceived more attention at bankers’ meetings and in banking journals during the past few years than any other single subject. Leaders in the American Bankers Asso ciation have stressed its importance, and last year set up a new advisory group,— the Public Relations Council. Most state bankers organizations have standing com mittees in the field, and the Wisconsin Association two years ago added to its staff, on a full time basis, a Director o f Public Relations. Public Relations has been approached in most instances as though it constituted a specialized field. Activities along the line have been regarded as an adjunct to desirable banking practice— much like a new model “ trailer” to be hitched on the back o f a vehicle. To me this seems a misconception. Public Relations is as in tegral a part o f a well managed bank as is the very motor or transmission in an automobile. It would not be an exaggeration to say that a sound public relations policy is sound bank management. The two are inseparable. Institutions which grew and prospered in by-gone years, before we became “ public relations” conscious, and served their communities ably, were blessed with managements which followed such policies intelligently, perhaps with out realizing them, or at least without de fining them in modern terminology. P The elements have always been present in progressive banks— they have through recent study been discovered rather than invented. And through analysis they have been brought prominently to our attention. In common with all business, banking has been made the target o f unwarranted attacks and criticism. Unlike many others, however banking o f necessity comes into intimate contact with almost everyone, large or small, in every community o f * consequence. It is a direct retail business, dependent fo r its existence upon the good will o f its public. Confidence is the essen tial element. Confidence is based upon understanding. W e bankers therefore have a definite “ selling” job — to create that understanding o f mutual problems— what a bank owes its community, and what, in turn, the community owes its bank. And let us not forget that the bank holiday is but five short years behind us, N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 By DUNLAP C. CLARK President, American National Bank Kalamazoo, Michigan This address by Mr. Clark was made before the recent annual meeting of the Nebraska Bankers Association in Omaha D U N L A P C. CLARK leaving special prejudices which augment our problem. It is from that angle that the general subject is approached, and the specific topic defined as “ Public Relations Inside and Outside the Bank.” Begin at H om e “ Public Relations Inside and Outside the Bank.” The former, “ Inside the bank,” refers to the education o f the staff itself; the latter, “ outside the bank,” to contact with the public at large, customers and non-customers. Like charity, good public relations begin at home. It is the province o f the staff to provide the service upon which the bank prides itself. The brunt o f daily cus tomer contact, at least 90 per cent, falls upon the operating group, particularly the tellers. Obviously their knowledge o f the bank’s policies and condition is o f ut most importance, and proper personnel training the first step. In our own case, weekly staff meetings have been held since our inception. Our cashier and I, the only officers at the start, came to Kalama zoo from outside, and the personnel was almost entirely recruited from the closed bank in whose quarters we operate. All employees were strangers to us and many had the “ defeatist” attitude engendered by the few years prior to the holiday. Not only did they have many slipshod methods which had to be corrected as a matter o f sound practice, but their very psychology required changing. Errors were noted and discussed in “ case method,” and the staff encouraged to refer them to the officers fo r general discussion fo r the benefit o f all. These were taken up in a cordial, friendly attitude and the staff came to realize that we are all working together fo r a common “ boss” — our Board o f Di rectors. In addition, of course, general policies were discussed as well. Everyone was encouraged to present his own views, and I believe it would be difficult to find a more harmonious group o f 31 than ours now. W e have no spirit o f false dignity within the institution, and I think that no member o f our staff hesitates to approach officers on any matter. Although we have reduced to a minimum the necessary line o f distinction between officers and em ployes, there has been no imposition by our personnel or lack o f respectful atti tude. Every other week in the meetings the A. B. A. booklet, “ Customer Relations,” was used as the textbook, until we com pleted it, with discussions centering around the material provided, rotating the leader ship among seniors o f the staff. These gatherings supplement the educational ac tivities o f the local A. I. B. Chapter, par ticipation in which we encourage through reimbursing half the tuition to those who complete the courses. Talk Things Over At our gatherings, affairs o f the bank are talked over intimately, far more inti mately, I am sure, than even with the “ official fam ily” o f many institutions. The staff understands that, having no “ secrets” from the customers, we desire to go even (Turn to page 29, please) 25 at Head Office, 55 W all Street; with 73 branches in Greater New York; with 70 offices in 24 overseas cou n entered C tries and with correspondent banks and clients in every state o f the Union and in practically every country in the w orld — * THE NATIONAL CITY BANK OF NEW YORK offers leading industries, through their local banking affilia tions, immediate trade and credit inform ation and every finan cial service to meet each individual problem . Member Federal Deposit Insurance Corporation EST.1812 iVEW l à : . : Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 Investment Needed to Reside HE greatest single need for a resto ration o f prosperity in this country and improvement o f living standards is a resumption of private investment, Dr. Harold G. Moulton, president o f the Brookings Institution, told members o f the Mortgage Bankers Association of America in Annual Convention. Dr. Moulton berated those who con tended that there is a permanent dearth o f investment opportunities because rail road mileage is contracting rather than expanding, because the public utilities in dustry has passed its “ mushroom” ex pansion and that our great industries have already become highly developed. He said, “ We do not need any new industries to lead us from depression to prosperity or to provide productive outlets fo r the savings o f the American people. All that we require is an economic and political situation favorable to the resumption o f capital replacement and expansion in existing industries.” And then added: “ The American people need additional quantities o f existing types o f commodi ties much more than they need new types o f consumption goods and services. We need more and better houses, more and better household furnishings, more and better commodities o f practically every type that enter into current consumption. The expansion o f capital required to re place depreciated and obsolescent plant and equipment, and to raise standards o f living even back to the 1929 level, is suf ficient not only to provide outlets for available money savings but also to absorb all o f our unemployment.” T No Capital Growth Dr. Moulton declared that the recovery from 1933 to 1937 differed from all other similar periods in one vitally important respect: There was no considerable ex pansion in the growth o f productive capi tal. “ In former times a striking charac teristic o f the upswing o f a business cycle has been the rapid expansion o f produc tive capacity; but in the period from 1933 to 1937 it was only the consumer goods industries which showed notable recovery. In consequence, the recovery itself was spotty and incomplete. The fact is that, although the recovery movement continued for over four years, the former levels o f production and employment were never reached. Northwestern Banker November Í938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President of Brookings In stitution states that "W e do not need any new in dustries to lead us from depression to prosperity or to provide productive outlets for savings. All that we require is an economic and political situation fa vorable to the resumption of capital replacement and expansion in existing indus tries." “ At the peak o f the recovery movement the physical volume o f production in the United States was equal to only about 90 per cent o f that o f 1929. This was despite an increase o f over 5 per cent in the total population and over 8 per cent in the population o f working age. In conse quence the per capita income o f the American people in 1936 and 1937 was only about 85 per cent as high as it had been seven years earlier. W hile the out put o f consumption goods, on a per cap ita basis, was above 90 per cent that o f 1929, the output in the field o f capital goods and the construction o f houses re mained fa r below the level o f former times. Housing construction was less than half that o f the late twenties and a similar situation prevailed in many o f our basic industries.” W e have been living on past capital accumulations, Dr. Moulton declared, and it is a catastrophe o f major proportions that we entered the depression o f 1937 at a level o f production much below that prevailing at the begining o f the depres sion in 1929. Low Interest Rates “ The most striking financial phenom enon o f recent years has been the extra ordinarily low level o f interest rates on Government issues and in the money market generally. It would seem as though the credit o f the Government is in inverse ratio to the size o f the Treasury deficits and the magnitude of the public debt—fo r the rates at which the Government has been able to borrow have steadily de clined since 1938. This phenomenon has been a source o f endless confusion, and has beguiled many into the belief not only that the financial position o f the Govern ment is as sound as the proberbial rock, but that the wells o f public credit are endlessly deep. The fundamental explana tion o f this phenomenon is the extra ordinary volume o f loanable funds, on the one hand, and the lack o f normal de mand on the other. “ It has often been said that the low interest rates are wholly artificial, result ing simply from the Treasury policy o f borrowing from the banks funds which, after they are disbursed through the agencies to which they are allocated, promptly give rise to new bank deposits. Such an explanation does not appear to be an adequate one.” Dr. Moulton said that low interest rates, both on long-term and short-term securities, will continue as long as busi ness demands remain at the low present day levels and that in view o f the enor mous credit resources o f the banks at the present time, relatively low interest rates may well prevail fo r some years to come. Dr. Moulton declared that control o f the country’s economic life has passed from private to public hands and that Government control by grants and sub sidies is made even more stringent because o f the ever present implied threat o f potential competition and coercion. “ Beyond question— fo r good or for ill — control o f the character o f the economic life o f the nation has in substantial meas ure been transferred from private to public hands. Government officials rather than directors o f private banking cor porations now occupy the positions o f dominant importance in directing the flow o f national income and thus allocat ing the productive energy o f society. W e are not referring so much to the super visory and policing activities o f Govern ment regulatory agencies as to the direct power which lies in control o f the purse, and especially o f the reservoirs o f credit, whence flow the funds which continuously replenish the exchequers o f Government credit agencies. 27 “ Control and influence are exerted, not only directly by means o f grants and sub sidies, but, more subtly, by the threat of potential competition and coercion.” Government Responsible Responsibility fo r the country’s present economic condition was laid squarely at the door o f the federal government by Fred H. Clausen o f the United States Chamber o f Commerce Finance Commit tee when he said : “ I f you are seeking fo r the cause o f the resistance to economic recovery look to the expenditures o f gov ernments and the tax load productive enterprise is required to carry. Mr. Clausen spoke on “ How Much Government Can W e Pay F o r?” He said that fo r the ninth consecutive year the Federal Treasury is confronted with a deficit, this year four billion dollars. For the fiscal year ending June 30th the gov ernment will spend nine billion dollars, the largest peace time expenditure. “ As business men, endowed with some degree o f common sense, developed through long years o f practical experi ence, you are certain in your own minds that the institution you are dealing with is ‘going down hill’ and you are convinced that this cannot be allowed to go on in definitely i f disaster is to be avoided. “ Isn’t it high time that men charged with business management should take some active and detailed interest in the financial condition o f a government insti tution that can break the enterprises com mitted to their charge?” Mr. Clausen said that he had no quarrel with the great common desire fo r social improvement and social betterment, but declared that: “ I insist that the obliga tion to pay fo r and maintain them should not impose such burdens on those called upon to support them as will restrict em ployment by private industry and capital.” He added: “ A persistent characteristic o f government spending is the inability or unwillingness o f those in authority to dispense with or curb public services once they are established. A decline in national income does not carry with it any sub stantial decline in government outgo fo r so-called ‘ordinary’ public expenditures. Agencies created by government immedi ately assume the role o f permanent in stitutions with vested rights to the office holders which the people should not dis turb. Thus we go from bad to worse unless the increase in national income offsets the tolls o f government. W e know such has not been the case. Therein lies the danger now confronting us.” “ With the trend towards government, state and municipal ownership and tax exemptions granted to publicly owned in dustries, how fa r can we go before the fountain o f tax moneys created by pri vate industry diminishes or runs d ry ?” > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M UN ICIPAL BONDS We Own and Offer the Following Municipal Bonds 3% A R T H U R , IA., School Bldg. 11/1/50 51 (Ida County) 52 A. V. all property $455,532 53 Bonded Debt 12,000 54 55 Legal Op: Chapman & Cutler 56 2.50% 2.60% 2.60% 2.70% 2.70% 2.75 % 2.75% 3% A N T H O N , IA., School Bldg. 2.10% 2.20% 2.30% 2.35% 2.40% 2.45% 2.50% 2.50% 2.60% 2.70% 11/1/44 45 (Woodbury County) 47 A. V. all property $649,074 48 Bonded Debt 28,500 49 Legal Op: H. H. Stipp 50 51 52 53 54 3% D A L L A S , I A.,Sch’l Refund’g 11/1/49 (Marion County) A. V. all property $622,104 Bonded Debt 18,500 Legal Op: Chapman & Cutler 2.50% 3% % L A K E M IL L S, IA., Sewage Disposal 2.30% Plant Bonds 5/1/47 48 2.35% (Winnebago County) 2.40% A. V. all property $962,755 49 5 4 --2.70% to op.— 5/1/49 Bonded Debt 21,500 & 3.25% thereafter L A N C A S T E R , M O., Gen. Obi. 10/15/40 (Schuyler Co.) 43 Legal Op: Chapman & Cutler 44 45 46 A. V. all property $492,328 Total Bonded debt including this issue 40,000 47 48 49 (Debt limit in Missouri for 50 waterworks system is 10%) 51 52 Only $2,000 overlapping 53 school debt. 54 55 56 57 58 1.50% 2.25% 2.40% 2.50% 2.60% 2.70% 2.80% 2.85% 2.90% 2.95% 3.00% 3.05% 3.10% 3.15% 3.20% 3.25% 3.30% Descriptive Circulars on Request J ackley C ompany IN V E S T M E N T SECURITIES EQU ITABLE BUILDIN G PHONE 3-5181 DES MOINES Northwestern Banker November 1938 The Month’s lïlaïket M a neuvers Prepared for THE NORTHWESTERN BANKER b y JAMES H. CLARKE, Assistant Vice President, American National Bank & Trust Company, Chicago HE passing of the war scare in Europe— late in September — was a time bomb which blew our markets sky high. When we wrote our last article on September 26th, the Dow-Jones Industrial Averages were off three points for the day and that was after a series of bad breaks— war was drawing the mar ket charts and the zig-zag course was downward. But on September jam es h . c la r k e 27th the upturn started. By the twenty-eighth security buyers were fighting to get into the markets— and the same market which would have fallen the week before if a cap pistol had been fired, now fell over itself to buy as prices rose rapidly. T UST a few figures will show its strength. Since September 26th there have been twenty-six trading days (this is written on October 2 7 th ); on eighteen days advances have been recorded and on eight days declines. Declines were not severe, mostly technical in nature re sulting from an over-bought condition, the worst decline being registered on October 19th— 2.07 points off the average. Within two days this was recovered with plenty to spare. October was definitely an “ up” market — the recovery from September 26th in the averages be ing somewhat better than twenty-three points as we write this, after two hours o f trading this Thursday morning. In short, averages which were 129.91 are now 153.20. To get the full effect of this rise, compare 153.20 with the low o f the year— 98.95 on March 31st. A climb o f fifty-four points in a market in six months, in the face o f continuing bad earnings reports, is not usual— probably can be largely attributed to the plethora o f investment funds, lower money rates, and an upward trend in gross— but not net— earnings in many industries. J LOOK at some o f the business figures which pro vide a background fo r the rise in security values, is o f interest. The preliminary figure fo r the Federal Reserve Board’s Index o f Industrial Production fo r August was 85 to 86— the actual final compilation showed it to be 88. The September figure will be re leased before this article is published— probably around 90 to 91— as improvement continued that month. Steel production is improving— operations are now around 51.5 to 54 per cent o f capacity, depending on whose estimate you use. A The reception accorded new cars has been better than earlier expectations. The used car situation is better — the building picture remains good. The New York Times Weekly Index o f Business Activity reached a new high for the year o f 1938 in the week o f October Northwestern Banker November 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15th— the figure being 87.7. O f course it is still below the figure o f 99.8 o f a year ago this time, but well above the 1938 low o f around 75. OME of the same forces which caused the rebound in stocks brought a sharp recovery in bond prices. The new offering of United States Treasury 2y2s of 1950-52— which sold as low as 100.4 in the last week of September— has climbed to approximately 102.20. The government market, throughout, has been sharply high er— and it may be said that all the bankers have a profit. And some of them are a bit restless at these levels. S The municipal issues shared the strength of the Gov ernments, while corporate bonds followed the stock market trend— especially in the second grades. For instance, Northern Pacific 4s recovered about nine points in a month, while Southern Pacific 3%s rose from 54i/g a month ago to 67 today. The real sky rocket of the month was Nickel Plate 6s— selling at 4iy2 about thirty days ago, hit 95y2 on a trade yester day. But, of course, that is a special situation. H E strength in all markets was reflected also in the financing which appeared in October— refund ing at lower coupons fo r the most part, but substantial in amount and well received. Thirty-seven million five hundred thousand dollars Virginia Electric and Power company 1st 3% s o f 1968 started the month off— were priced at 103%, went to a premium immediately, and are now quoted around 105. The largest offering o f the month was $80,000,000 Public Service o f Northern Illinois 3 % s of 1968— priced at 103 and much sought after— present market 104% to 104% . Other important issues which went out the window on offering day ivere $55,000,000 Ohio Power 3 % s o f 1968, priced at 101% and now quoted at 102y2 and 102% ; and $50,000,000 Fire stone Tire and Rubber Company ten year 3 % per cent debentures which ivere priced at 99% and today are around 102 to 102%. Firestone was probably the fastest moving issue o f the month. Fifty-five million dollars o f Wisconsin Electric Power Corporation bonds were sold at 103% — are now slightly above that— while prices on the $34,000,000 o f Michigan Consolidated Gas first 4s today are a bit below the offering price o f 97%. T HERE is not much in registration with the S. E. C. now. Probably just a lull, as much new financing is expected. Our old friend, the $25,000,000 issue o f Argentine 4% s o f 1948 is still in registration and may possibly be offered on November 3rd. There is talk o f an offering by Anaconda o f $50,000,000 bonds to refund the outstanding 41/4:s and pay off bank loans. And with the markets in a receptive mood, more will develop. T (Turn to next page, please) 29 TH E M O N TH 'S M ARKET M AN EU VERS (Continued from page 28) HE third quarter and nine month statements which have appeared to date have not been good. The uptrend in business, which is so noticeable now, certainly should help gross earnings— but higher labor costs, increased material costs, and a heavier tax burden make actual net figures — those you carry through to “per share earnings”— still questionable. In the long run market values— particularly of stocks— are a re flection of net, but with money plentiful and business trends in terms of gross, better, we may find later that short and long trends in this market will be con tradictory. T L E G A L Q U ESTIO N S (Continued from page 20) such circumstances even though no con sideration was paid to her for making and delivering the note. UESTION: When a person dies, what is the general rule regarding who may vote stock standing in his name on the books o f a corporation at the time o f his death? In general, an executor or administra tor of a stockholder has a right to vote stock standing on the corporate books in the name of the stockholder at the time of his death. Q “YOU HAVE SAVED US MANY PREMIUM DOUUARS” A. J. K o e n ig s m a r k , President D r . E . P. S t a l l m a n , V ic e President J. F. S c h m id t , Vice President STATE Louis B ode , Cashier R u s se l l R . G r e g so n , Asst. Cashier S. J. S ch r oe de r , Asst. Cashier BANK OF W ATERLOO WATERLOO, ILLIN O IS Mr. Henry Scarborough, Jr., Scarborough & Co., First National Bank B l dg., Chicago. Dear Mr. Scarborough: This will acknowledge with thanks your nice letter of the 6th informing us that the cost of our insurance will be further reduced at the anniversary date of our blanket bond. We realize fully that you have saved the bankers of Illinois many premium dollars and our bank is well pleased with your contract. You can count on our continued support and cooperation. UESTION : The rule is laid down by statute in many states that a will must be signed or subscribed by the testator. Is such rule satisfied i f the signature is made by the testator’s mark ? Q Very truly yours, In most states a statute requiring a will to be signed or subscribed by the testator is satisfied if the signature is made by the testator’s mark. Executive Vice President (Former President Illinois Bankers Association) PUBLIC R ELA TIO N S (Continued from page 24) further with them. This accentuates their pride in the institution and confidence in the officers, making them better able to “ sell” the bank to the public both in the business day and in their own personal, social contacts. They are encouraged in a public relations frame o f mind and many voluntarily make calls on their friends in stores and smaller business houses after banking hours. A loyal staff, well educated in the prin ciples and standards o f the bank, is the first step in the formulation o f a public relations program. Let us analyze your insurance problems and tell you liow we can also save your bank “ premium dollars.” Insurance Counselors to Banks FIR ST N A TIO N A L B A N K B U IL D IN G C H IC AG O BLANKET BONDS A L L RISK FORGERY SAFE DEPOSIT INSURANCE Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 30 W h at Their Statements Show Figures Reported by Chicago and New York Banks According to Their Statements of Sept. 28, 1938 TOWN BANK Chicago........... .American National Bank & Trust. . . Chicago. . . . . . . .. .City National Bank & Trust............. Chicago........... . . Continental Illinois Bank. ................. Chicago. . . . . . . . . .Drovers National Bank....................... Chicago. .. . . . ....F i r s t National Bank........................... Chicago........ ....L i v e Stock National Bank................. Chicago........... ....N o rth e rn Trust Company................. New York. .. . New York. .. . New York. . . . New York. .. . New York. . . . $ Capital 1,600,000 4,000,000 75,000,000 1,000,000 30,000,000 1,000,000 3,000,00t) 21,000,000 100,270,000 20,000.000 90,000,000 42,304,960 Surplus and Profits $ 1,117,153 2,831,742 29,073,334 967,623 35,420,887 1,510,591 10,111,075 71,133,647 131,406,343 55,282,689 172,041,182 45,129,356 Loans and Discounts $ 11,818,126 29,924,878 156,074,304 4,883,196 222,992,663 4,720,272 33,191,745 163,466,432 620,196,819 112,356.851 514,134,594 232,369,224 Bonds and Securities $ 25,011,051 39,444,453 574,373,721 9,730,217 400,564,148 7,822,269 178,835,890 228,438,216 945,156,757 253,359,308 610,835,092 262,774,310 Cash and Due From Banks $ 18,581,495 60,377,993 510.138,222 13,819,388 358,175,340 13,509,234 134,950,355 586,751,188 986,341,323 260,883,226 700,989,773 206,617,807 Deposits 52,038,488 122,425,419 1,139,197,293 26,014,727 926,660,505 24,095,050 326,895,993 902,148,549 2,376,974,193 555,717,316 1,535,019,694 645,093,134 $ Personal Contact Public Relations Outside the Bank which then follows, may be divided into personal contact work and general publicity. G E N E R A L M O T O R S ACCEPTANCE CORPORATION U IT I/ -% V > is engaged primarily in facilitating wholesale distribution and retail sales of the following products of General Motors Corporation and its world' wide affiliates: Ca d illac , BUICK, OLDSMOBILE, Ch ev r o let automobiles; la sa l l e , PONTIAC, FRIGIDAIRE appliances for refrigeration and air conditioning; delco lighting, power and heating equipment; gm c trucks; BEDFORD, VAUXHALL, OPEL, BLITZ — foreign made automotive vehicles. The business consists of investments in self'liquidating credits, widely diversi' tied as to region and enterprise, capital employed being in excessof $80,000,000. GENERAL MOTORS GMAC issues one standard form of note. INSTALMENT This obligation it offers to banks and in' P L A N These n otes In obtaining short term accommodation, stitutions, in convenient maturities and denominations at current discount rates. are available, in limited amounts, upon request. EXECUTIVE OFFICE NEW YORK ' Northwestern Banker November 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRANCHES IN PRINCIPAL CITIES In considering the personal contact angle, the most important phase is likely to be overlooked, probably because, being so routine, it is taken fo r granted— that is, the reception accorded customers in the bank, and the atmosphere o f the institu tion. Personal calls on clients in their offices are distinctly valuable, and we have capitalized on them. But only a few can be made in a day compared to the number o f visitors who are cared fo r in the bank. The friendly mien and sincerely cordial greeting by officers and tellers should be too obviously desirable fo r comment, but at how many desks presides “ The Great Stone Face V’ A fter all, no one has to do business with a certain bank. His pa tronage should be as obviously appreciated as it is in the drug or grocery store. And at the other extreme, equally to be decried, is the surface over-cordiality sometimes affected, which because o f its patent in sincerity, is likely to cause the opposite reaction to that anticipated. Availability o f the officers to customers is an important feature, especially in smaller centers, where the public is ac customed to see the owner or manager o f mercantile establishments which they pa tronize. In our bank we eliminated the use o f the private offices in the quarters we took over, employing them merely as con ference rooms. All the officers are seated upon the open platform, easily accessible. Nor is the customer always right. W e know that a bank “ run by its customers,” as we used to say, is doomed to difficulty. There are certain standards to which sound banks must adhere, in matters o f loaning policy and reasonable compensation for services rendered. It is these differences o f opinion which present the real challenge in our customer relations. W e must per suade our public to do things in our way and “ make them like it.” That is sales manship with a capital “ S.” It is easy to 31 refuse a loan or make a service charge ■ “ stick,” but to maintain good will at the same time requires an alert attitude o f mind. And above all, let us be honest with our customers. Instead o f hiding behind a discount committee or worse yet, the bank examiner, in declining a loan, let us ex plain how it can properly be made, if pos sible, or if this cannot be done, show a fully sympathetic and constructive atti tude. I believe that this would go far to refute much o f the criticism against bank ers, fo r we all know that never were banks more sincerely seeking sound outlets for their mounting funds. True, this takes time, but results prove its desirability. Reference was made to calls upon our customers. W e are strong believers in visiting with our friends in their offices. Our officers, usually after banking hours, contact the officials o f our larger accounts with fair frequency and most o f our other depositors at least once a year. The lat ter activity is based upon periodic reviews o f balance cards and assignment o f names among our officers, who record the context o f their visits in the credit files. In many cases, in addition to tying in the accounts more closely, these conversations develop attractive loans either at the time or sub sequently. New Business Solicitation of new business is more difficult than cultivation o f present ac counts. To the average banker, his insti tution is well known and policies under stood. He does not seem to realize that many otherwise intelligent business men have an inadequate conception o f banking facilities which are at their disposal. Besides these individual visits, group contact work has been found beneficial— that is, addressing various bodies on bank ing matters. Talks have been made before the service clubs, trade associations and high school and college classes. The sub ject, “ How to Analyze a Bank Statement,” presented in forty minutes, using an en larged exact reproduction o f the latest called statement, has proven the most p o p ular. It has been given 32 times, on sev eral occasions outside o f Kalamazoo. This presents an unusual opportunity to discuss banking policies and ordinarily provokes questions. Other topics of interest have been “ Federal Deposit Insurance,” “ Loan Policies,” and “ F H A Titles I and II.” In “ General Publicity,” advertisements in local newspapers might be briefly touched upon. Our advertisements run regularly each Sunday. The policy o f “ white space” is followed, with one thought tersely expressed, presented over our logo type or tailpiece, that “ he who runs may read.” From observation and inquiry, we feel that lengthy ads, overburdened with copy, are less effective. Our standard size is two columns five inches, save when some M a n u fa ctu r e r s T R U ST C O M P A N Y (Condensed Statement o f Condition as at close o f business September 3 0 , 1 9 3 8 RESO U RCES Cash and Due from B anks.................. $206,617,807.38 U. S. Government Securities............... 183,374,045.18 21,925,790.38 State and Municipal Bonds.................. Stock of Federal Reserve Bank 2,260,650.00 Other S ecu rities................................... 57,474,475.24 Loans, Bills Purchased and Bankers’ A ccep tan ces....................... 232,369,224.48 M ortgages............................................... 22,160,397.58 13,156,595.52 Banking H o u s e s ................................... Other Real Estate E quities................. 4,716,468.66 Customers’ Liability for Acceptances . 17,086,250.69 Accrued Interest and Other Resources 2,407,936.29 $763,549,641.40 L IA B IL IT IE S Preferred Stock . . . . $ 9,306,520.00 Common S to c k ............ 32,998,440.00 Surplus and Undivided Profits . . 45.129,356.66 R eserves................................................. Common Stock Dividend (Payable October 1, 1 9 3 8 )............... Preferred Stock Dividend (Payable October 15, 1938) ............ Outstanding Acceptances..................... Liability as Endorser on Acceptances and Foreign B ills ....................... .. . D ep osits.................................................. 87,434,316.66 7,090,580.72 824,958.50 232,663.00 17,481,741.74 5,392,246.49 645,093,134.29 $763,549,641.40 Principal Office: 55 Broad Street, New York City 64 B A N K I N G O F F I C E S IN G R E A T E R N E W Y O R K European Representative Office: 1, Cornhill, London, E. C. 3 Member Federal Reserve System Member New York Clearing House Association Member Federal Deposit Insurance Corporation Both Common and Preferred shares have a par value o f $20 each. The Preferred is convertible into and has a preference over the Common to the extent o f $50 per share and accrued dividends. DIRECTORS EDWIN M. ALLEN President, Mathieson Alkali Works, Inc. PAOLINO GERLI Vice-President, E. Gerli & Co., Inc. JOHN P. MAGUIRE President, John P. Maguire & Co., Inc. CHARLES K. BEEKMAN Beekman, Bogue, Leake, Stephens & Black HARVEY D. GIBSON President HAYWARD NIEDRINGHAUS President, Granite City Steel Company EDWIN J. BEINECKE Chairman, Sperry & Hutchinson Co. EDGAR S. BLOOM President, Western Electric Co., Inc. CHARLES L. HOGAN President, Lone Star Cement Corporation JOHN L. JOHNSTON President, Lambert Company CHARLES A. DANA President, Spicer Manufacturing Corp. OSWALD L. JOHNSTON Simpson Thacher & Bartlett ELLIS P. EARLE President, Nipissing Mines Co. CHARLES L. JONES Executive Vice-President, National Distillers Products Corp. HORACE C. FLANIGAN Vice-President CHARLES FROEB President, Lincoln Savings Bank C. R. PALMER President, Cluett, Peabody & Co., Inc. GEORGE J. PATTERSON President, Scranton & Lehigh Coal Co. HAROLD C. RICHARD New York City HAROLD V. SMITH President, Home Insurance Co. GEORGE MACDONALD Capitalist GUY W. VAUGHAN President, Curtiss-Wright Corporation SAMUEL McROBERTS New York City HENRY C. VON ELM Vice-Chairman Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 32 COMMERCIAL INVESTMENT TRUST IN C O R P O R A T E D C o m m e r c ia l I n v e s t m e n t Incorporated, with capital and surplus in excess of $67,000,000, provides a nation-wide sales finance ser vice through subsidiary com panies with a network of branch offices throughout the United States. This service, which consists of purchasing self-liquidating accounts, ex tends to automobile dealers, household appliance dealers, and to manufacturers and dealers in many lines of indus trial, commercial and profes sional equipment, including the heavy goods industries. T rust C . I. T . offers its stand ard notes for short term particular feature needs additional space. While admittedly it is difficult to trace returns from advertising, voluntary com ments make us feel that our presentations are read and some customers claim that they came to us because o f the attitude reflected. In the building lobby, just outside the entrance to the bank, a bulletin board is maintained into which is inserted weekly an informal letter, dealing with current topics o f interest in the banking field. Illuminated from behind, the letter is easily read and attracts gratifying attention, reaching those who come into the building, even though they do not enter the bank. This has been in use over forty years, vir tually without expense. The letters are often correlated with newspaper advertise ments when featuring some special topic. A t each call date we circulate not a “ con densed statement,” to supplement the pre scribed official form, but rather an elabo rated type, in which the content o f prin cipal items is explained. The fly-leaf is utilized fo r discussion o f important trends in the figures or other matters o f interest to customers. It is gratifying that other banks, to which we have supplied copies at their request, have found the style worthy o f adaptation to their use. This subject has been presented largely subjectively, and from the standpoint o f a bank in a city the size o f Kalamazoo, about 60,000 population. To be fully e f fective a public relations policy must be “ tailor-made” with the details fitting the needs o f the individual community. The general principles, however, should be applicable anywhere. Most bankers agree to the desirability o f such activities, but how many direct to them the necessary amount o f thought and effort? I present the challenge, “ Are we bankers lazy?” I think, by and large, we are. W e must be constantly on the job, with consistent consideration o f the cus tomer, personal contact and cultivation o f friendships. And, perhaps, though we profess other wise, we still have too deeply inculcated the old “ pedestal complex,” that business should come to us. W e must realize that we are merchandisers o f a commodity— CREDIT. A s this commodity is an in tangible, it is the most difficult type to sell. Our money is no better or more desirable than another bank’s. W e cannot compete on a quality basis, therefore, and should not, save perhaps in rare instances, at tempt to do so on a price basis, that is, undercutting rates. We cannot build our banks by sitting serenely at our desks and hoping desirable business will seek admit tance. W e must keep step with the times. The consistent manner can be observed, I believe, in which we attempt to follow out our expressed policy o f public educa tion— o f making our friends know that we want to deal with them frankly— that un less we understand them and they under stand us, we cannot fill our proper place in the community. I f they progress with us step by step in these times o f increasing deposits and fair earnings, is it not likely that they will have greater confidence in us and be more appreciative o f our problems when condi tions again reverse themselves— as they are bound to do? I f banks generally would follow the practice, would it not go far to avert another such debacle as the too-recent “ banking holiday,” which we know was not precipitated by the bankers but by the public because o f loss o f confi dence? Is this not the most potent p roof o f constructive customer relations — o f sound bank management ? accommodation in varying amounts from $1,000 to $100,000, in maturities from 60 to 270 days and at cur Municipal Public Utility Industrial rent discount rates. These notes are payable at any of our 2 7 9 depositary banks located in principal cities throughout the country. BONDS L a te st published, f in a n c ia l statement and list o f depositary banks w i ll be mailed upon request. ADDRESS Treasurer, Commercial Investment Trust Incorporated IP ark A ve., N ew York, N . Y. Northwestern Banker November 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A.C.A LLYN andCOM PANY Incorporated 100 West Monroe Street, Chicago— Tel. Franklin 8400 New York Philadelphia Detroit Milwaukee Omaha 33 ciation has gotten out a neat folder on this subject, urging the repeal o f the double liability, pointing out that only 13 states now have double liability. The other thirty-five states have either re pealed this act or never had such a law on their books. A . ß. A . A N N U A L C O N V E N T IO N (Continued from page 12) 450,000 population, Houston has conven tion facilities comparable to a city many times its size. Houston is Texas’ largest city and in recent years has rapidly advanced to the rank o f the South’s second metropolis. Houston’s development as a port has been equally interesting. Though geograph ically an inland city, Houston is today one o f the major ports o f the world with a national rank o f fourth in total tonnage and third in exports. route, arriving at Pennsylvania Station at 7 :30 a. m. Monday morning, November 28. Both railroads will, o f course, provide their regular connecting service to Hous ton. Details concerning rates and exact schedules may be obtained from their rep resentatives, as may information con cerning reservations fo r any o f the special tours. Mexican Tours state banks, which will be voted on as a constitutional amendment in the Novem ber 8th election. In order to repeal this measure a favorable vote on the amend ment must equal 35 per cent o f all the votes cast at the election, which is always difficult on a subject in which the average voter is not Avell versed. The State A sso Eastern bankers planning to attend the convention are being offered two spe cial tours by the New York Central Sys tem and the Pennsylvania Railroad. The New York Central System is offering a pre-convention tour to Mexico, leaving New York October 30, and returning No vember 20, and the Pennsylvania Rail road, a post-convention tour, leaving New York November 10, and returning November 28. Both trips are planned to give members o f the Association and their friends as wide and varied an itin erary as is possible in the time availab’ e. The New York Central System is also providing a special direct train to the convention, leaving New York and Bos ton the evening o f Friday, November 31 and leaving Houston the afternoon of Friday, November 18. A ll New England and New York State connections with the Pennsylvania tours will be made at New York, and two special trains, carrying both the party which will make the Mexican trip and the party which will return directly from the con vention, will leave Pennsylvania Station at 3:55 p. m. Thursday, November 10. Both groups will make their first stop at Coal Creek, Tennessee, the next after noon, where motor buses will be awaiting to carry them on an inspection trip to Norris Dam and to Norris, the T Y A laboratory community, then on to K nox ville where they will board their train. Saturday will be spent in New Orleans, where arrangements have been made for a Creole luncheon at Patio Royal, a sight seeing tour o f the city, and dinner at Antoine’s, one of America’s most famous restaurants. Arrival in Houston is plan ned for 8 :35 a. m., Sunday, November 13. Leaving Houston Thursday, November 1, the Pennsylvania Railroad’s Mexico tour schedules a day o f sightseeing in San Antonio and arrival in Mexico City early Sunday morning. Five days are planned fo r viewing the wonders o f the city itself and o f the towns and villages in its neighborhood— their ancient churches and colorful market places. Leaving Mexico City on Thursday, November 24, the train will return to New York over a direct N EB R A SK A Pointing to increasing government con trol, Robert H. Myers, Muncie, Indiana, president o f the Indiana Bankers Asso ciation, declared that responsibility for management o f banks ought to remain vested in their boards o f directors and officers. “ Their record, in depression or any other time, will shine by contrast with the record o f government money man agers, past or present, domestic or fo r eign, who would ‘engineer’ things fo r us,” he said. Mr. Myers said it was the duty o f the bankers to give the 50 million depositors o f the country a more complete under- C O N V E N T IO N (Continued from page 14) V. W . M B r e w e r u n ic ip a l B G o . o n d s Because the state receives the earnings from large foundation funds, the demands of ordinary governmental functions upon the proceeds of ad valorem taxes are unusually low in North Dakota as compared with other states F IRS T N A T - S O O LINE BLDG. MINNEAPOLIS Federal Discount Corporation Dubuque, Iowa Automobile Finance Tim e Payment Plans for Autom obile a Purchasers a m Capital, Surplus and Undivided Profits over ONE MILLION DOLLARS ■ B ■ Branches in Iowa — Illinois — Wisconsin — Minnesota b a b Short Term Collateral Trust Notes Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 34 standing o f how government policies affect bank deposits. “ Whether we like it or not, we’re going to find it necessary to combat some o f the ideas on money and banking that are being presented as ‘scientific,’ ” he said. Walter L. Pierpoint, president o f the Association o f Omaha Taxpayers, hit at $30-per-month old age pensions and homestead tax exemption, and appealed to bankers to help reduce governmental costs. “ I f waste were eliminated,” he said, “ needed governmental services could be supplied and present costs o f government reduced instead o f adding new taxes.” Adoption o f either the $30 a month old age pension plan or the five thousand dollar homestead tax exemption proposal, he asserted, would require increases in present taxes and new forms o f taxation. The proposals, he said, “ are only other names fo r income, sales and service taxes and higher general property levies.” Carl L. Fredericksen, president o f the Live Stock National Bank o f Sioux City, as usual attended the Nebraska Conven tion, greeting his many friends from “ Cornhusker Land.” Carl is planning to attend the A. B. A. meeting at Houston with Mrs. Fredericksen, and they then plan to proceed by motor to Mexico City fo r a short vacation. Pictures o f many o f those attending the convention are shown on other pages o f this issue o f The N orthwestern B anker. From the broad smiles displayed, one could conceive that, thanks to Billy Hughes, the Nebraska convention this year was another huge success. P R O O F DEPARTM ENT (Continued from page 22) on a local bank other than the North western, or on the Northwestern itself. Knowing the color guide fo r each o f these three classifications, the clerk simply sorts the checks on piles o f the correct colored cards. When one deposit is sorted, a sort is made o f the next deposit, etc.” This guide-card method o f sorting is fast and simple and has the father advan tage o f eliminating rubber-banding and pinning o f items. Deposits are proven on fast, electric calculators. In proving each large de posit, totals o f transit, clearings and on us are established, and, at the same time, a grand total o f these three classifications is automatically accumulated by the ma chine to prove against the customer’s total on the face o f the deposit ticket. Small deposits are proven in groups, and, when a group o f sufficient size has been accumulated, all deposit tickets in the group are replaced by a substitute slip. CREDIT COMPANY C A P IT A L A N D SU RPLU S O V E R $ 6 4 ,0 0 0 ,0 0 0 F ounded in 1 9 1 2 , with $ 300 ,0 0 0 capital, Commercial Credit Company is today one of the largest institutions of its kind. It operates through more than 4,000 employees in more than 186 offices in the United States and Canada, and is owned by more than 20,000 stockholders. BAM RELATIONS SHORT DEPARTMENT lOO E. 42nd Street New York N orthw estern Banker TERM NOTES available in limited amounts upon request, at current discount rates. N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This release o f small deposit tickets, after proof, gives the bookkeeping de partment access to them within a few minutes after they have been received in the p roof department. Since 60 per cent o f the deposits classify as “ small,” rapid flow o f deposit tickets to the book keepers results. Also, the small deposits require the most reference fo r overdrafts, etc., so that it is desirable to handle them as early as possible. “ Our calculator p roof is another good example o f simplification,” said Mr. John son. “ It is unnecessary fo r the opera tor to know anything about the items, ex cept that all those with blue guide cards and transit items, those with white cards are clearings, etc.” Control Totals Control totals are summarized fo r the various classifications in each large de posit and in each group o f small deposits. This operation also verifies the fact that the correct control totals were provided by the calculator operators and supplies a media fo r accumulating total deposits for general ledger purposes. The control machine operator works only with the proven figures which have been established by the calculator opera tors. Thus, in listing to the control sheet, it is unnecessary fo r the individual items to be handled. Errors made by the calculator opera tors, if any, will be revealed here,” stated Mr. Johnson. “ This localization makes tracing errors an easy matter and is typ ical o f the close control we have all along the line.” Since it is desired to split transit items eleven ways, clearing items forty-five ways, and on us items eleven ways be fore sending them to the listing section, 1.000 to 2,000 items in each o f these classifications are normally allowed to ac cumulate before a total is taken on the control machine for that classification. Handling items in these large groups makes possible a much higher listing pro duction than with small groups because much o f the repitition o f aligning, total ing, etc., is eliminated. F or example, list ing 1,000 items eleven ways in 200 item batches would involve taking 55 totals, but handling these items in one batch of 1.000 requires only eleven totals. Large batches are practical in this case since the figures being used have already been proven and customers’ errors eliminated. Each classification is balanced inde pendently on the control machine. In the morning, out clearings are the most urgently needed group, and so items in this class are taken and listed as fast as groups are accumulated. In the after noon the condition is reversed as transit and on us items are most urgently needed. “ W e handle items in the most logical, most efficient manner,” declared Mr. John- 35 son. “ This would be impossible under a complicated, inflexible system. Our plan o f giving ‘rush’ items preferred atten tion and handling other items during slack periods produces a more uniform working day, without the tremendous ‘peaks’ which characterize some p roof op erations.” In the listing section o f the p roof de partment are electrically-operated fullkeyboard adding machines, on which en tire amounts can be written in one motion o f the hand, and all ciphers are printed automatically— advantages which permit high-speed listing o f items. The totals obtained must agree with those previous ly established on the control machines. Two records o f the items are obtained in one operation— a sheet which the bank retains as a permanent record and a tape which accompanies the items to their final destination. A simple schedule is maintained o f the progress o f the items through the listing .section, so that the bookkeeping and tran sit departments, as well as the p roof de partments, are fully informed at all times. “ Items received in the mail are always cleared on the day o f receipt, and with out overtime work,” Mr. Johnson ex plained. “ W e have no trouble in main taining a f o r t y hour week, and on an average day, between 85,000 and 90,000 items go through the department. Even the peaks o f days after-a-holiday are no longer a problem.” Such is the answer found by the North western National Bank and Trust Com pany to common operating and personnel problems which confront many banks. Paradoxically, they found one answer to the seemingly divergent goals o f more efficient item handling and o f developing new employes through the p roof depart ment. Heads Association A t the October meeting o f the Corpo rate Fiduciaries Association o f Minne sota, held recently in Minneapolis, Paul Feyerson, assistant secretary and assist ant trust officer o f First National Bank and Trust Company o f Minneapolis, was •elected president fo r the ensuing year. Other officers elected are O. H. Odin, vice president and trust officer o f the Mar quette National Bank, Minneapolis, and A. B. Miller, vice president and trust ■officer o f the Northern National Bank, Duluth, vice presidents ; C. A. Maley, as sistant cashier o f the American National Bank, St. Paul, secretary-treasurer. The Corporate Fiduciaries Association, form erly known as the Trust Officers Association o f Minnesota, was organized some twenty years ago by Minnesota kankers engaged in the administration o f trusts. Purposes o f the organization -are mutual education o f members, dis cussion and solution o f common prob- T the way thousands o f men buy insurance. Sounds simple, doesn’t it? But insurance against what ? How will it be paid? H A T ’S There is one man w ho reads insurance policies with interest and understanding. He is the experienced insurance agent. He knows exactly what he is buying for you. Insurance against what — and when and how it will be paid. And when a loss occurs, he is your representative. Insurance that minimizes the agent’s func tion may lessen your protection, your service. Insurance is dollar protection. There are no cut-rate dollars for sale. Let an experienced agent take a look at ♦ your business from an insurance point o f view. Like a check-up by your family doctor, it can do no harm—may save your business life. N A T IO N A L S U R E T Y C O R PO R A T IO N V IN C EN T CULLEN, President Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 36 lems and the development o f uniform procedure in the interests o f the public. Members include representatives o f all Minnesota trust companies and banks op erating trust departments. The organi zation meets monthly throughout the year except during the summer months. The anxiously expectant father had been pacing the room nervously, biting his nails, when the nurse appeared with the news that he had a baby daughter. “ Thank God, it’s a girl,” said the father. “ She’ll never have to go through what I h ave!” Allen W ales Makes Rapid Progress W . J. Pickering, president o f the Allen Wales Adding Machine Corporation, 515 Madison Avenue, New Y ork City, was born in Iowa City and later on lived in Shenandoah where he went to school. In 1910 he came to Des Moines as manager fo r the Remington Typewriter Company and remained in that city for two years during which time he covered the State o f Iowa. He then went to Omaha and was man ager for the company in that city for three years, his territory also including the entire state o f Nebraska. Prom there he went to Kansas City where he was located fo r three years, covering Kansas and Missouri. He then came to New York City as vice president o f the Remington Type writer Company in charge o f foreign and domestic sales. In 1934 he became interested in the Allen Wales Adding Machine Corpora tion which was originally started in 1903. Mr. Pickering reorganized the com- LIV E STOCK NATIONAL BANK o f ChLzojqxr s v i STAT E M E N T OF ^ C ON DITI O N ^ SEPTEM BER 28, 1938 B O A R D OF D IR E C T O R S F R E D E R IC K H. P R IN CE F. H. Prince & Co., Providence, R. I. R O B E R T H. C A B E L L President, Armour & Company JAM ES A. M cD O N O U G H Investments, Boston R O B E R T J. D U N H A M Investments R IC H A R D H A C K E T T General Manager, Central M anufacturing District O R V IS T. H E N K L E Vice-President and General Manager, Union Stock Yard & Transit Co. W I L L I A M J. O ’C O N N O R Ass’t General Manager, Union Stock Yard & Transit Co. e iaa /TT') tut 'RTrTTVTTi'Rq D A V I D H. K E IM E K o President C L Y D E H. S C H R Y V E R President, Chicago Merchandise and Equipment Co. A R T H U R G. L E O N A R D President, Union Stock Yard & Transit Co. T H O M A S E. W IL S O N Chairman, Board of Directors Wilson & Company W . J. P IC K E R IN G pany in 1934 and became its president, and he immediately started the policy o f producing high speed models to meet the needs o f modern business. Since 1934 the Allen Wales Adding Machine Corporation has sold more add ing machines than were sold in the pre vious 20 years. Mr. Pickering has had only one deter mination and that was to build the best and most accurate adding machine in the world and the result has been that the R ESO U R CES Cash and due from banks............................................ $13,509,234.21 United States Government Securities.................... 5,132,799.37 State and Municipal Securities................................... 1,374,767.63 Other Marketable Bonds............................................. 1,314,703.08 Loans and discounts...................................................... 4,720,272.41 Federal Reserve Bank Stock........................................ 60,000.00 Bank building .................................................................. 450,000.00 Furniture and equipment............................................. 1.00 Interest earned, not collected..................................... 40,475.00 Current receivables and other assets....................... 30,798.91 $26,633,051.61 L IA B IL IT IE S Capital................................................................................ $ 1,000,000.00 Surplus .............................................................................. 1,000,000.00 Undivided profits and reserves................................... 510,591.27 Unearned Discount ...................................................... 27,410.18 Deposits ............................................................................ 24,095,050.16 $26,633,051.61 70th ANNIVERSARY YEAR Member Federal Deposit Insurance Corporation N orth w estern Banker N ovem b er 193S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Allen Wales Model 9E Electric reception on the part o f the banks o f the country has been most phenomenal as the machines have been purchased by large and small banks alike. Prom 1934 to date the number o f men employed in the Allen Wales factory has increased twenty-five times. 37 commenced his banking career at the age o f nineteen when he wTent to work in the Paris Savings Bank o f Paris, Missouri. His many old banking friends will re gret exceedingly his passing on. N EBRASKA Investment Bankers Convention Association Organized 1920 R. W A R E H A L L President Jayne Housh, Corresponding Secretary H A R R Y F. SMITH Secretary K -S A R -B E N governors flatly re veen company informally offered to raise than bond price to 96. jected the recent offer by the Dodge street bridge board to buy fo r $2,350,000 PU R CH A SE o f $200,000 worth o f the Douglas street bridge, recently pur United States treasury 2% per cent bonds chased by Ak-Sar-Ben to end the long maturing in 1952 was approved by the controversy over a free bridge between Omaha school board recently. The bonds Omaha and Council Bluffs. In turn, Ak-Sar-Ben governors made a were bought through the Burns-Potter company o f Omaha, using accumulated counter proposal containing three pro cash in the bond redemption fund. A visions: That Ak-Sar-Ben be permitted premium o f $3,687 was paid. to name three new members o f the Dodge High premiums asked by holders o f board; that the Dodge board eliminate outstanding Omaha school district bonds $200,000 in claims incurred in promoting made it inadvisable to buy back any o f the Famam and Dodge bridges, neither those bonds, board members said. The o f which has been built; that plans fo r school district’s bonds are not serialized building the bridge at Dodge street be and cainnot be recalled before the due abandoned. date. They still carry interest rates of Ak-Sar-Ben’s letter to the Dodge board the boom era and are regarded as choice asserted that the “ agitation for construc investments. tion o f a second bridge is being kept alive primarily by two eastern bond IvIR K P A T R IC K -P E T T IS company’s houses . . .” The Dodge board recently asked fo r a offer to refund $350,000 o f 4 ^ per cent North Platte, Nebraska, bonds at 3*4 per P W A grant o f one million dollars, but cent, saving the city o f North Platte dispatches from Washington indicated that the request had little chance o f be $30,000 during the life o f the bonds, was accepted by the North Platte city coun ing approved. The rejection by Akcil recently. Sar-Ben o f the Dodge board’s offer on the Douglas bridge was made before Sec THE N E B R A S K A state board o f ed retary o f Interior Ickes had indicated he would not approve a. P W A grant fo r the ucational lands and funds recently pur chased $219,500 worth o f municipal bonds, Dodge bridge. Mace M. Brown, presi including $206,000 o f Scottsbluff, Ne dent o f the Omaha Central Labor Union, braska school district building bonds; said at Washington that he would con $5,500 o f Chester, Nebraska, auditorium tinue to fight for the Dodge bridge. Sen bonds, and $8,000 o f Bellevue, Nebraska, ator E. R. Burke o f Nebraska refused to school district bonds. Bellevue is in take a position in the bridge controversy Omaha’s suburban territory. until he could study both sides. He said that the whole bridge picture changed TIM E FOR the sale o f Rulo, Nebraska, when Ak-Sar-Ben took over the Douglas bridge bonds was extended recently. E f span and promised to make it free after fort was being made to complete sale of it had “ paid out” the bonds on the Doug a $435,000 issue fo r the $761,000 P W A las and South Omaha bridges. span before the deadline. A new group o f bond houses recently A entered the Dodge bridge picture. Rep resentatives of two Chicago firms, it was reported, were ready to finance the Dodge bridge and any bridges purchased by the Dodge board, with 3% per cent bonds to be sold at par. The Dodge bridge contract in effect with the John Nuveen company called fo r issuance o f bonds at 91, with 4*4 per cent interest. When the proposal to buy the Ak-Sar-Ben bridge came up, the Nu N EW S A N D VIEW S (Continued from page 18) treasurer o f the Sinclair Petroleum Cor poration, who died last month, was long a personal friend o f mine, as I first be came acquainted with him when he was vice president o f the Fort Dearborn Na tional Bank o f Chicago. Mr. Farrell, who was sixty years o f age when he died, The American Finance Conference will hold its F ifth Annual Convention in Chi cago, on November 10th and 11th, ac cording to an announcement made by Fred V. Chew, executive vice president. The meetings will be held at the Drake Hotel and the program will include a number o f nationally prominent speakers who will discuss topics o f vital interest to the automobile financing industry. An attendance o f more than 500 executives and representatives o f independent dis count companies doing business in every state o f the Union is expected. Dirty Joke “ Y ou’re not living at the Phi Delt house any more, are y o u ?” “ No. I stayed there five weeks and then found out they had no bath tub.” Sm ith: “ Robinson, the banker, has stolen $100,000 o f the funds and ran away with the hotel keeper’s w ife.” Jones: “ Heavens! W ho will teach his Sunday School class ?” L .A M S O N B r o s . 8c E Co. s t a b l is h e d 141 W . Jackson Blvd., Chicago 50 Broadway, New York Our branch o ffices are equipped to render com plete brokerage service in the handling of grain (cash and fu tu res), stocks, bonds, cotton and provisions. Private wires direct to all markets. BRANCH OFFICES Des Moines, Iowa Dubuque, Iowa Marshalltown,Iowa Sioux City, Iowa Storm Lake, Iowa Fort Dodge, Iowa Kansas City, M o. Peoria, 111. Quincy, 111. Galesburg, 111. Bloomington, 111. La Salle, 111. Muskogee, Okla. Davenport, Iowa Cedar Rapids, Iowa Mason City, Iowa Waterloo, Iowa Iowa Falls, Iowa St. Louis, M o. Lincoln, Neb. Omaha, Neb. De Kalb, 111. Gilman, III. La Fayette, Ind. Frankfort, Ind. Ada, Okla. MEMBERS OF LEADING SECURITY and C O M M O D IT Y EXCHANGES N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1874 N ovem ber 1938 38 A CONDENSED STATEM ENT OF CONDITION September 28, 1938 RESOURCES Loans and Discounts_________________________________________ $ 3 ,7 3 5 ,7 7 5 .4 2 Bank Building, Vaults and Fixtures (C lea r)_______________ 8 2 1 ,0 0 0 .0 0 Stock in Federal Reserve Bank_____________________________ 5 5 ,2 0 0 .0 0 Other A sse ts__________________________________________________ 1 3 8 ,2 3 8 .5 4 U. S. Notes and Bonds_____________________ $ 1 0 ,7 6 0 ,1 7 2 .1 7 Municipal B o n d s ___________________________ 9 4 8 ,8 3 5 .2 4 Other B o n d s ________________________________ 1 ,7 8 0 ,5 9 9 .6 0 Cash and Due from Banks__________________ 8 ,7 9 1 ,3 9 7 .5 0 2 2 ,2 8 1 ,0 0 4 .5 1 $ 2 7 , a 3 1 ,2 18 .4 7 LIABILITIES Capital Stock— C o m m o n ------------------------------------------------------ $ 1 ,1 0 0 ,0 0 0 .0 0 Surplus and Profits----------------------------------------------------------------8 0 3 ,0 8 1 .9 8 Reserve for Contingencies____________________________________ 3 7 1 ,8 6 1 .9 4 Other Liabilities______________________________________________ 1 0 3 ,9 7 8 .1 4 Deposits— Banks and Bankers____________ $ 6 ,4 3 6 ,7 8 9 .7 5 Savings and T im e_______________ 3 ,4 0 3 ,6 2 6 .9 0 Public F u n d s ___________________ 2 ,9 2 1 ,7 6 5 .4 5 Individual, Firm and Corpora tion ---------------------------------------- 1 1 ,8 9 0 ,1 1 4 .3 1 2 4 ,6 5 2 ,2 9 6 .4 1 $ 2 7 ,0 3 1 ,2 1 8 .4 7 OUR OFFICERS CONSIDER IT A PRIVILEGE TO DISCUSS THE PROBLEMS OF BANKS AND BANKERS AND TO ASSIST IN THEIR SOLUTION OFFICERS President E l l s w o r t h M oser , Executive Vice Pres. T. F. M u r p h y , Vice President P. B . H e n d r ic k s , Vice President V . B . C a l d w e l l , Vice President R . R . R a i n e y , Assistant Vice President H . M . B ush nell, lln 'x U h H. H. E. A. N. E. W. Y a t e s , Trust Officer E. R ogers, Cashier E. L a n d s t r o m , Assistant Cashier L. V i c k e r y , Assistant Cashier L. S h o l i n , Assistant Cashier C. M c E l h a n e y , Asst. Trust Officer States National lan k of (Dmalja M em ber Federal Deposit Insurance Corporation Northwestern Banker November 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 E. S. HOLCOMB President Chm. Ex. C ouncil........... M. M. Taylor Columbus S e cre ta ry ......................Wm. B. Hughes Omaha W M. B. HUGHES Secretary W h a t Nebraska Statements Show Figures Reported by Nebraska Banks on Their Statements of Sept. 28, 1938 Statements Received Following Each Call Are Reviewed in the Northwestern Banker as They Appear Below Capital Cashier ___ F. W . Harris............ ..$ 150,000 125,000 Alliance............... ..Guardian State Bank................... 50,000 Aurora................. ..F irst National Bank................... 100,000 Beatrice............... ..Beatrice National Bank............... . . . . Ed. C. Austin........ .. 40,000 .Clarkson Bank............................... . . . . Emil Petr................. . 1 100,000 Columbus. . . . . . . . National Bank o f. ....................... . . . . . F. P. Dietz................. .. 25,000 Creighton............. . American National Bank........... 25,000 Fairmont............. . .Farmers State Bank..................... ___ C. F. Tous.................. 250,000 Fairbury............... . First National Bank..................... . . . I. C. Riley................. 100.000 . . J. G. Edloff___ _ . . Fremont............... Stephens National Bank. 50 000 Gordon................. .. First National Bank. . . . . . . . . . . 200,000 Grand Island. . . ..F irst National Bank................... . . . . F. J. Cleary............. . . 100 000 Grand Island. . . . . Overland National Bank............. . . . . H. Nomland............. 25.000 Hartington.........., . Bank of Hartington......................... . . . E. M. Hoar............... 100,000 Hastings............... . City National Bank....................... . . . . F. A. Hansen........... 50.000 Kearney.................. . Ft. Kearney State Bank............... 15,000 Keystone. . . . . . . . . The Bank of Keystone. ................. . . . . T . B. Cole................. 35,000 Lexington........... . . Farmers State Bank......................., . . . Peter J en sen ........... 540,000 Lincoln........ .. . . . . Continental National Bank......... 850,000 Lincoln............. . . . First National Bank................. .. 300,000 Lincoln................. . National Bank of Commerce... ___ B. G. C lark ............. 25 000 Loup City............ . . First National Bank. . . . . . . . . . . . . . . C. H. Ryan............. ___ H. M. Krogh............ 75,000 McCook................. . First National Bank..................... 100,000 Nebraska City. . . . Farmers Bank .............................. . 100,000 Norfolk. . . . . . . . . . National Bank o f......................... 100,000 North Platte. . . . . First National Bank..................... Omaha................. . . First National Bank..................... . . . . J. T. Stewart, III. . . . 2,300,000 Omaha............. 450,000 .. Live Stock National Bank. . . . . . . Omaha............. ..Omaha National Bank................... . . 1,500.000 Omaha................. ..Packers National Bank.............. 200,000 O r d . . . . . . . . . . . . ..F irst National Bank....................... 60,000 Sidney................... , American National Bank. . . . . . . 65,000 ID« ««'1 Tekemah. . . . . . . . , . First National Bank. .................. . . H. J. W ragge........ York..................... ..First National Bank....................... . .. H . E. Nordlund___ 150,000 * Includes Cash and Dues from Banks. TOW N BANK Endorse Repeal The First Regional Clearing House Association, comprised o f Saunders, But ler, Douglas, Washington, Dodge and Burt counties, went on record as favoring the repeal o f the amendment to the con- Surplus and Profits 14,878 33,545 19,097 112,438 6,923 62,321 25,503 12.493 52,476 67,432 85,054 424,250 32,069 15,100 78,064 56,559 10.477 9,667 231,221 479,684 345,105 28.006 67,414 68.046 27,249 126,438 174,721 422.011 1,402,516 81,668 34,975 27.680 $ $ AO 209,233 stitution which provides fo r double lia bility on state banks. The group met at Fremont to elect officers and discuss ways and means of creating sentiment in favor o f the amend ment. Loans and Discounts 285,732 841,829 156,742 922,676 108,390 901,851 247,440 53,364 1,276,971 601,977 425,721 1,234,338 355.242 247,388 535,581 410,045 157,762 174,472 2,815,861 2,453,943 2,989,803 265.942 425,451 321,547 452,860 770,946 7,402.404 3,894,087 12,749,712 1,081,136 276,004 268.011 no* 547,912 $ Bonds and Cash and Due Securities From Banks $ 1,503,967 275,915 178,911 492,855 120,272 124,545 1,104,832 1,019,954 70,734 88,853 514,662 981,734 287,882* 88,527 92.475 629,406 420,208 1,115,731 322,794 186,603 233,138 803,835 2,619,484 209,264 326,574 36,504 170,326 510,913 397,171 616,149 244,582 86,522 23,588 36,867 123,437 3,828,986 3,275,111 11,150,510 7,256.848 3,998,466 4,004,000 169,980* 738 896 355,542 555,556 613,367 250.319 383,225 661,595 513,767 10,581,524 7,849,674 5,441,904 4,424,567 11,482,675 18,035,125 1,088,876 386,077 158,941 179,043 345,721 278,705 161.096 9’ 4 184 531,642 973,988 Deposits $ 1,935,904 1,369,489 346,705 2,861,024 222,184 2,253,613 498,540 212.433 2,187,131 1,554,157 718,253 4,240,211 768,447 421,580 1,272,935 1,183,269 243,116 340,022 9,200,070 19,981,934 10,233,307 390,910 1,378,439 1,323,404 968,548 1,774,934 25,155,530 12,816,423 42,357,551 2,317,773 543,780 923,876 872,295 1,750,297 Assistant Cashier Mr. and Mrs. W illiam Young arrived in Cozad from Long Beach, California, recently. Mr. Young, who is a son o f Mr. and Mrs. C. T. Young, has been employed in a bank at Long Beach the past couple UNITED STATES CHECK BOOK COMPANY OMAHA, ««.BANKERS NEBRASKA SUPPLIES»»» Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 40 Nebraska o f years. He will take up his duties as assistant cashier o f the Cozad State Bank in the near future. News Swiss cattle, valued at $5,000, to Father Flanagan’s home at Boys Town in Omaha. The herd includes nine heifers and one bull. At Convention Alliance was represented at the Nebraska State Bankers Association con vention in Omaha by R oy Abbott and Clyde Sudman o f the Guardian State Bank. Donates Cattle Mr. and Mrs. Dan Y . Stephens, Fre mont, have donated 10 purebred Brown Study Class A group study class, organized fo r the purpose o f obtaining a scientific study of banking, law, economics, finance and bank management along with business training, was formed at a meeting o f 15 men and women held recently at the Cen tral National Bank in Columbus. Made possible through arrangement Charter No. 2 0 9 First National Bank o f Omaha with the American Institute o f Banking, educational section o f the American Bankers Association, the formation o f the group study class was effected as the result o f preliminary planning and organ ization conducted during past weeks, in which bank forces in Columbus, David City and Shelby joined. In the form al organization o f the class, Howard Burdick, cashier o f the Central National Bank, was named president, and Marion Babb, auditor in the same insti tution, elected secretary. > f Dies in Omaha Dennis W . Killeen, 63, retired Schuy ler, Nebraska, banker, died recently at his home in Omaha. He had suffered a stroke. Mr. Killeen had lived in Nebraska for 61 years and came to Omaha nine years ago. He was a. charter member o f the Knights o f Columbus council at Colum bus. > In Omaha Tekamah bankers attended the several sessions o f the Nebraska State Bankers Association convention in Omaha. The First National Bank was represented by R. L. Stout, E. C. Houston, H. J. Wragge, D. W . Greenleaf, Orville Chatt, Lee Loerch, and the Burt County State Bank was represented by R. K . Hancock and Quatin Lambley. Heads Clearing House The Oldest National Bank From Omaha West Glen Gibson, o f Gibbon, was re-elected president o f the Platte Valley Regional Clearing House Association at its annual meeting, held in Grand Island. Also re-elected were W . S. Paul, o f St. Paul, vice president, and Vernon Rice, Grand Island, secretary. The association is composed o f bankers in five counties, Hall, Buffalo, Howard, Merrick and Ham ilton. New Bank Nationalized 1 863 Member Federal Deposit Insurance Corporation N orthw estern B anker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W ood Lake’s new bank opened its doors for business recently, and was given a real welcome by W ood Lake business men and the people in the surrounding coun try. C. J. Abbott o f Hyannis is president, Leroy Abbott o f Alliance, executive vice president; R. S. Lee, Brownlee, vice pres ident; Elmo Gardiner, W ood Lake, cash ier. It is the sixth bank in which the Abbotts are interested. Directors are Sam R. and Martha McKelvie, S. M. Richardson, W ill L. McVey, J. E. O’Halloran, Everett G. Morris, J. A lfred Morris, Otto Schlueter, J. P. Kreycik, Neil Hanna and George Higgins. r O F F IC E R S T . B. Strain, P resid en t Edward A . Becker, V ice P resid en t W . S. Battey, V ice P resident Fred S. Aldrich, V ice P resid en t C. W . Battey, Cashier Elmer DeKay, A ssistant Cashier Howard Hadley, A ssistant Cashier A . W . Griffin, A ssistant T ru st O fficer Another MILESTONE in the life of the Continental National Bank of Lincoln With the completion of our newly remodeled hanking home, the CONTINENTAL NATIONAL BANK of Lincoln passes another milestone in its march of progress. Aided by increased working space and improved physical equipment we are in better position than ever to render efficient SINCE correspondent bank service. We invite you to visit us. T H E 1909 rr h i H m of a Lincoln M em ber Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 42 eluded on circulars distributed with bank statements to patrons o f Omaha banks. The circular declared that the double liability, in view o f the recent elimination o f similar liability fo r stockholders o f national banks, is a penalty on the state banks operating in Nebraska. It also stated that both m ajor political parties, at their Nebraska, conventions, en dorsed the proposal to repeal the law in Nebraska. Nebraska voters will act on the proposal at the November 8th elec tion. DALE CLARK, president o f the year and that, on a per capita basis, the # Omaha National Bank, has been Omaha gallery leads the nation in visitors. elected a member o f the board o f trustees o f the Society o f Liberal Arts, which W . LEROY W IL C O X , chairman o f the operates Omaha’s $3,000,000 Joslyn Me business division o f the Omaha Commu morial, gift to the city o f Mrs. Sarah nity Chest campaign, appointed Royal Joslyn. He took the place o f the late Miller o f the Omaha. National Bank C. L. Farnsworth on the board. among the “ majors” to conduct .the can Other member o f the board are Mrs. vass in his group. The drive fo r funds Joslyn, president; A. H. Richardson, will be held November 14th-23rd. Ray Page, John McDonald, Fred A. Wright, W . R. Watson. As part o f the Nebraska Bankers as Director Paul H. Grummann of the sociation campaign fo r repeal o f the Ne memorial announced that during the first braska law fixing double liability o f stock three-quarters o f the year visitors to the holders o f state banks, arguments in memorial totaled 30,000 more than last favor o f repeal o f the measure were in W L IV E STO CK N A T IO N A L BANK O M A H A Statement of Condition, September 30, 1938 RESOURCES Loans and Discounts Bonds and Other Securities Stock in Federal Reserve Bank Banking House and Fixtures Other Real Estate TJ. S. Gov’t Se curities 5,441,904.30 Cash, Sight Exch. and Due from Fed. Res. Bank. 4,424,567.10 3,894,087.56 4,546.75 25,500.00 1.00 1.00 9,866.471.40 LIABILITIES Capital Stock (Common) 450 000.00 Surplus 400 000.00 Undivided Proflts 22 011.96 Unearned Discount 4, 137.96 Reserved for Taxes, Interest, Etc. 84 534.37 Dividend Payable September 30, 1938 6, 760.00 Dividend Payable January 3, 1939 6 750.00 Deposits : Banks 6,256,566.95 Other Deposits 6,559,856.47 12,816 13,790.607.71 13.790,607.71 A SPECIAL SERVICE To handle desirable loans in cooperation with our correspondents 1Write, wire or phone us regarding your requirements This Bank Has NO Affiliated Companies Member of Federal Reserve System and Federal Deposit Insurance Corporation N orthw estern B anker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F IV E OF Ak-Sar-Ben’s governors were absent when the coronation o f a new king and queen o f the mythical king dom o f Quivera was held recently in Omaha’s Ak-Sar-Ben coliseum. Two o f them, Gwyer H. Yates, chair man o f the board o f the United States National Bank o f Omaha, and De E. Bradshaw, national president o f the Woodmen o f the W orld Life Insurance association, were ill. Out-of-town were W . B. Millard, Jr., vice president o f the Omaha National Bank; A. A. Lowman, president o f the Northwestern Bell Tele phone Company and a director o f the United States National Bank, and Bert Murphy, motor car dealer, reigning 1938 king since the death of W . F. Baxter. Substituting fo r the absent governors were W . J. Coad, W . D. Hosford, father o f the new queen, Kathryn Hosford, Jo seph Barker, Robert Trimble, Ford Hovey, president o f the Occidental Building and Loan association, and W illard Dies ing. All are former governors. OM AH A B A N K debits in August, ac cording to the October 1st monthly re view o f the Federal Reserve Bank o f Kansas City, were $140,724,000, a slight decline from July and a decrease also from August, 1937. Only Kansas City and Denver, both larger cities, had larger debit totals than Omaha in the Tenth Federal Reserve district fo r the month o f August. RUSSELL C. ENGBERG, associated since 1928 with the Washington office of the federal farm loan system as statis tician-economist and as chief o f the joint stock land bank section, has become di rector o f research for the Farm Credit Administration at Omaha, L. W . Powers, F C A general agent at Omaha., announced. Mr. Engberg is a graduate o f Iowa State college at Ames, where he later taught farm management. F or a time, he did research work fo r the Brookings Institution in Washington. He has taught at the University o f Minnesota and the University o f Idaho. A L V IN E. JOHNSON, president o f the Livestock National Bank of Omaha, spoke on “ Omaha South o f the Tracks” 43 Nebraska News — at recent meetings o f Omaha’s Concord club and the Exchange club. Mr. John son is past president of the Omaha Cham ber o f Commerce. Omahans don’t appreciate the impor tance o f the stockyards and pacing in dustry, the banker declared. “ Almost everyone in the city,” he asserted, “ is dependent, directly or indirectly, on them.” He urged his listeners to join the Chamber o f Commerce. C H AR LES DICK ERSO N , Negro por ter at the Omaha National Bank, who last spring was crowned K ing Borealis V II at the ball which climaxed Omaha Negroes’ social season, assisted at the Ak-Sar-Ben ball in October. He helped the Ak-Sar-Ben governors in their dressing room. The governors discarded knee-breeches this year in fa vor o f long trousers. B A N K CLEARING S and debits, live stock receipts, livestock receipts con sumed in Omaha, and postal receipts all were lower in Omaha during September, compared with the same month o f ]937. Grain receipts and shipments, how ever, showed increases o f 2.3 per cent and 5.9 per cent respectively. Harrison to Valentine are members o f this association. To Liquidate A t a recent meeting o f stockholders o f the Osmond Co-operative Credit Associa tion it was voted to liquidate the present institution. The proposal o f J. B. Adkins o f N orfolk to purchase notes and other items now in the hands o f the cooperative was explained by Gus. Marek, cooperative president, Avho presided at the meeting. Mr. Marek stated that the state banking department had three applications fo r a Gordon Meeting Four bankers from Hay Springs at tended the Regional Clearing House A s sociation meeting at Gordon. Those who Avent Avere R. Gustafson and Joe Mueksch from the Nortlrwestern State Bank and T. R. Morrison and Frank Tulloss from the First National Bank. A ll banks along the Northwestern from -------------------- = commercial bank charter at Osmond and that in all probability one o f the appli cations would be granted whether or not the present financial institution chose to liquidate. Dies in Pierce Adolph J. Mastalir, about 50, former cashier o f the Cones State Bank in Pierce, died folloAving a prolonged illness due to heart trouble and complications. He Avas prominent fo r many years in civic affairs in that community. Statement of Condition The First N ational B ank o f Lincoln, Nebraska (Organized 1 8 7 1 ) At the Close of Business September 2 8, 1938 Fremont Visitors Recent Fremont visitors were Roland C. Irvine and Louis Jacoby, representa tives o f the Chase National Bank o f New York City whose unique and interesting money collection has been displayed at the Stephens National Bank. Mr. Irvine is second vice president o f the Chase Na tional and Mr. Jacoby is the bank’s Chi cago representative. The novel money collection, seen by hundreds o f Fremonters in the Stephens National lobby, was developed by the Chase National with the itea o f preserv ing various mediums o f exchange. Mr. Irvine said he could make no estimate as to the collection’s value. .. RESOURCES Loans Federal Reserve Stock Banking House, Furniture and Fixtures Interest Earned, Not Due U. S. Government Bonds Other Bonds and Securities . Cash and Sight Exchange Other Assets Total Resources $ 2 ,4 5 3 ,9 4 3 .5 5 3 3 ,8 5 0 .0 0 5 4 0 ,1 5 5 .7 8 3 7 ,0 1 3 .5 9 _ 1 0 ,4 6 4 ,5 3 1 .2 5 6 9 5 ,9 7 9 .0 8 7 ,2 5 6 ,8 4 8 .0 9 7 3 0 .0 0 $ 2 1 ,4 8 3 ,0 5 1 .3 4 LIABILITIES Capital Stock Surplus and Undivided Profits. Reserve Accounts Discount Unearned Deposits $ Total Liabilities 8 5 0 ,0 0 0 .0 0 4 7 9 ,6 8 4 .9 7 1 5 7 ,2 3 0 .6 0 1 4 ,2 0 1 .4 0 1 9 ,9 8 1 ,9 3 4 .3 7 $ 2 1 ,4 8 3 ,0 5 1 .3 4 OVER SIXTY-SIX YEARS OF BANKING EXPERIENCE YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS H . S. FREEMAN, Chairman E xecutive Committee GEORGE W . HOLMES, President P. R. EASTER D AY, E xecutive V ice President W . B. RYONS, Vice P resident H O W AR D FREEMAN, Cashier L. C. CHAPIN, V ice P resident DONALD P. EASTER D AY, Asst. V ice P res. STAN LEY MALY, Vice P resident CLIFFORD G. W ESTON, Assistant Cashier B. 0 . CAMPBELL, Junior V ice P resident A. C. GLANDT, Assistant Cashier E. H . M ULLO W N EY, Junior V ice P res. R. J. BECKER, Assistant Cashie. F. E. D A V E N P O R T & C O . M e m b e r F e d e r a l D e p o s it In s u r a n c e C o r p o r a t io n OM AHA N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem ber 1938 44 THE SECRETARY o f the Lincoln ROPOSED repeal in the November election o f the constitutional pro clearing house reported total clearings fo r the month o f September, $9,836,855; vision requiring double liability o f state fo r August, $10,174,042; September last banks, was discussed at a recent meeting year, $11,289,155. Total fo r the first nine o f the Lincoln Regional Clearing House Association. Forty bankers from Lan months o f 1938, $91,881,413; total fo r a corresponding period o f 1937, $104,787,caster, Gage, Fillmore, Saline, Cass and 901. Otoe counties attended, and J. H. Clark, o f Dorchester, regional president, pre sided. DURING THE MONTH o f September W. B. Hughes o f Omaha, secretary o f Ben N Saunders, state bank director as the Nebraska Bankers Association, and liquidating agent o f failed state banks, C. Petrus Peterson o f Lincoln, the speak paid $12,562 to depositors in the follow ers, after discussing various phases o f the ing four institutions : State Bank o f Red proposed amendment which will appear Cloud, $1,275 ; Cowles State Bank, $2,735 ; on the ballot in the November election, Farmers & Merchants Bank o f Byron, urged the bankers to work fo r passage o f $4,077, and Logan Valley Bank, Uehling, the proposal. They also stressed that $4,473. members o f the association become active in getting out the vote. AT THE ANNUAL meeting o f the Lin coln Joint Stock Land Bank, all the offi The program, sponsored by the double cers were re-elected, and one vice presi liability committee o f the association, dent, C. C. Cartney, added. headed by J. R. Stevenson o f Nebraska Officers are W . E. Barkley, president; City, was arranged by George A. Knight. P J. L. Teeters, vice president; D. L. Love, treasurer; Katherine Dougan, secretary; W . A. Selleck, W . L. Anderson, W . W . Burr, E. H. Lukart, and Dr. W . C. Becker, directors. The statement o f the concern, which is liquidating, shows a deficit o f $619,672.85 at the close o f business September 30. In 1938, 68 farms were sold fo r $600, 357.55, and fo r the first nine months a net loss of $174,758.88 was shown. The land bank has now 284 farm mortgage loans, 150 in Iowa and 234 in Nebraska. Owed to the RFC is $600,000. President W . E. Barkley said that the liquidation is proceeding slowly because o f the short crops. He said about the same number o f farms has been sold this year as last, and that sales have been greatly curtailed because o f drouth. A F IN A L payment o f $15,092 was made to depositors o f the failed Firth State Bank by Judicial Receiver E. H. Luikart. The payment brought the total amount turned back to $101,048, or 64.657 per cent o f the original claim. X jf > Regional Meeting The annual meeting o f the Regional Clearing House Association was held at Blue Hill recently. About eighty repre sentatives o f banks in the southern and western part o f Nebraska were present fo r the banquet at seven o’clock and for the business session which followed. Principal speakers fo r the occasion were L. A. W hite o f Lincoln, state direc tor o f the Farm Security Administration, and Otto Kotuc, o f Humboldt. O. A. Riley o f the Hastings National Bank was elected president; S. E. Florance o f Red Cloud was made vice presi dent; and E. E. Hedgcock o f Edgar, sec retary-treasurer. ■f- Attend Convention Our complete banking facilities inMHHUzl sure out-of-town banks and bankers prompt, efficient and economical handling of ac counts in Chicago—we invite you to use our facilities. C it y N a t io n a l B a n k A N » T It 1 S T 2 0 8 S O U T H CO M PAN Y L A S A L L E of Chicago S T R E E T (M em ber Federal Deposit Insurance Corporation) N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 Fremont banks were well represented at the annual convention o f the Nebraska Bankers Association in Omaha. Attending from the Stephens National Bank were J. M. Sorensen, W illiam N. Mitten, Lloyd C. Blair, Lester Blair, Ernest Gaeth, John Thielen, Harold Adams, Mary Idalene Anderson and Edith Erling. J. D. Milliken, Edmund M. Miles and W alter Kallenbach represented the Fre mont National Bank. Appointed The Farmers National Bank o f Central City has been appointed local representa tive fo r The National Co. o f Omaha to take applications for Federal Housing loans. The Farmers National will handle the details o f making these 5 per cent loans fo r the National Co. locally, under the i 45 Nebraska News latest provisions o f the Federal Housing A ct. Attend from Ord Mr. and Mrs. F. P. O’Neal, Mr. and Mrs. Ralph Misko and Mr. and Mrs. C. J. Mortensen were in Omaha recently, the men being in attendance at the state bankers convention. New Service Officers and directors o f the Scottsbluft National Bank have contracted with the 0 . B. McClintock Company o f Minneap olis to install the latest type of equipment fo r the convenience and safety o f local business men who take in cash and checks during the hours o f nights, Sundays, and holidays, when no bank is open to receive the deposit o f such “ after hour’’ receipts. This service equipment consists o f a heavy, bronze trimmed receiver, built into the walls o f the banking house. From this receiver, or depository head, there extends through the building wall to the inside o f the bank a heavy steel chute, which connects with a steel safe, located within the work space o f the bank. Heads Clearing House John C. Boyd o f the Carson National Bank was elected president o f the Fourth Regional Clearing House Association at a meeting held at Humboldt. He suc ceeds A. F. Schiable, president o f the Richardson County Bank. Carroll Lewis o f the Bank o f Peru was elected vice president. A. C. VanHorne o f Pawnee City was elected secretary-treasurer. Other Nemaha county bankers who at tended the meeting were Clarence Castner and John Zacharias, Carson National Bank, and R. W . Dirks and W ilbur Maclay, Auburn State Bank; Clarke Casey, First National Bank o f Johnson, and James P. Kelley o f the First State Bank o f Johnson; E. C. Yont and Chas. V. Harris o f the Bank o f Brock, and H. R. Dressier o f the Bank o f Nemaha. Dies in Grand Island Carl M. Carlson, 50, assistant cashier o f the First National Bank, Grand Island, died in a hospital recently, death being attributed to embolism. He was form erly connected with banks at Dannebrog, Phillips and Doniphan. He went to the First National Bank in 1933 when the Doniphan bank was merged with the First National. He leaves a wife and three children. W ayne Meeting W. F. W inke o f Pender, was elected president o f the Northeast Nebraska R e gional Clearing House Association at the dinner meeting held in Wayne. Robert Larson o f Pilger, is vice president and Continental National Remodels Quarters HE Continental National Bank o f Lincoln has recently completed re modeling and modernization o f its bank ing quarters. The office o f T. B. Strain, who is pictured at the right seated at his desk, has been paneled in beautiful wood veneer, which takes the place o f glass partitions form erly used. The officers’ quarters, shown at the left below, have been considerably enlarged, with new desks and office furniture pro vided throughout. W ith the p roof department transferred to sound-proof rooms at the rear, the space allotted to cages has been made T much larger, so that now the bank has twelve cages where it had but eight be fore. The picture at the right below shows the cages located along the east side o f the lobby. They are all o f the new low type, with ground glass fronts and sides, and arrangement is such that handling o f customers is much more rapid. The bank has several additional rooms at the north o f the main lobby, housing the personal loan and other departments. This space remains the same, as does also the basement in which is located the trust department and customer vaults. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem ber 1938 46 Nebraska News Edgar M. Hoar, Hartington, secretary. Members o f the executive committee are: M. M. Nelson, Newcastle, Dixon county; J. B. Rossiter, W althill, Thurston Coun ty ; M. E. Schriber, Wisner, Cumming county; James Zoubek, Stanton, Stanton county; Paul Zutz, N orfolk, Madison county; Herman Lundberg, Wayne, Wayne county; C. W . Fahnestock, Lau rel, Cedar county; Fred Maas, Pierce, Pierce county. Election V. E. Dolphert, David City was elected president o f the Columbus Clearing House Association, a group within the Nebraska Bankers Association, at the annual meeting. Elmer L. Bradley and Howard Burdick, both o f Columbus, were named vice president and secretary-treas urer respectively. W alters Com pany Notes H. H. B Y E R S, vice president o f the Charles E. Walters Company o f Omaha, Nebraska, accompanied by Mrs. Byers, is enjoying an extended vacation in the Rockies o f Colorado; Yellowstone Na tional Park and the Black Hills o f South Dakota. ◄ Equipped for O FFICER S C. L. Fredricksen, President M . A. W ilson Vice President and Cashier W . G. Nelson, Asst. Cashier W . C. Schenk, Asst. Cashier L. W . Ross, Asst. Cashier Double Duty The Live Stock National Bank of Sioux City, "the only bank at the yards," is your logical correspondent for live stock items. By maintaining messenger service to all parts of the city we are likewise equipped to handle all your Sioux C ity items. This "double duty" feature is why many of our correspondent banks have been with us for more than two score years. LIVE P D IR E C T O R S C. R. McKenna President, Johnson Biscuit Co. B. L. Sifford Attorney., Sifford & Wadden G. F. Silknitter Pres., S. C. Stock Yards Co. C. L. Fredricksen, President M. A. W ilson Vice President and Cashier INCLUDED in the recent sales o f banks negotiated by the Charles E. Walters Company o f Omaha is the Security State Bank o f Mount Ayr, Iowa. Miller Chris tiansen, the purchaser, is now actively identified with this bank in capacity of president. ANNOUNCEM ENTS are out fo r the marriage o f June D. Goethe, daughter of Robert L. Goethe, president o f the Charles E. Walters Company o f Omaha, Nebraska, to Austin Garrels o f Bruning, Nebraska. The happy event took place at Plymouth Congregational Church in Omaha, fo l lowed by a reception at the Blackstone Hotel. Both o f these young people are talented musicians and after a short honeymoon wTill be at home in Urbana, Illinois, where Mr. Garrels will teach music in the University o f Illinois. R. R. BENDER, o f Hitchcock, South Dakota, has accepted the assistant cashiership o f the First State Bank o f Gackle, North Dakota. NORM AN B. W A L T E R S , recently of Custer, South Dakota, is now employed as assistant cashier o f the Commercial State Bank o f Bonner Springs, Kansas. H. L. CAM PBELL, fo r a number o f years identified with Nebraska banking interests, has accepted the cashiership o f the Farmers Trust and Savings Bank of Spencer, Iowa. THORNTON B A K E R of Conway, Iowa, is serving the Bank o f •Brainard, Brainard, Nebraska, as bookkeeper and teller temporarily. STOCK RECEN T SALES o f the Charles E. Walters Company o f Omaha include ma jority stock o f the First State Bank of Kiowa, Kansas, to L. W . Stevens of Medicine Lodge. The former owner, E. H. Seth, is now identified with the Peo ples Bank o f Pratt, Kansas, in executive capacity. P O R TE R M. R ITC H IE , of Eugene, Missouri, is the new cashier o f the Bank o f Mountain View, Mountain View, Mis souri. N A T I O N A L SANK Sioux City, Iowa “ The Bank at the Yards” Member Federal Deposit Insurance Corporation ◄ ----------------------------------------------------------------------------------------------------------N orth w estern B anker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ARNOLD H AN SEN o f Rockville, Ne braska, has accepted the assistant cashiership o f the Farmers State Bank o f Hardy, Nebraska. M ISS D O RO TH Y DURBIN o f Mal vern, Iowa, has accepted the position as secretary to President C. A. Knudson of the College Savings Bank o f Ames, Iowa. 47 S O U Ï f O H T A O FFICERS SOUTH DAKOTA BANKERS ASSOCIATIO N JOHN N. THOMSON President President................ .John N, Thomson Centerville Vice President......... Wm. C. Rempfer Parkston Secretary-Treasurer. .George M. Starring Huron GEORGE M. STARRING Secretary W h a t South Dakota Statements Show Figures Reported by South Dakota Banks on Their Statements of Sept. 28, 1938. Statements Received Following Each Call A re Reviewed in the Northwestern Banker as They Appear Below TOWN BANK CASHIER Capital Aberdeen........ . . . .National Bank & Trust Co........ ___ C. F. Hauge........... . . . $ 100,000 Aberdeen........ ----- J. E. Koch............ 400,000 Centerville. . . . . . . ' She Bank of Centerville............. . . . J. N. Thomson . . . 50,000 Mitchell.......... . . . .Mitchell National Bank............... ----- J. N. Shelby........... 150,000 Pierre............... ----- L. L. Branch........ 50,000 Rapid City. . . . . . . Fi r s t National Bank..................... ----- N. W. K lar............. 675,000 Sioux Falls. . . . . . .First National Bank & Trust. . . ----- T. N. Hayter........ . . . 285,000 Sioux Falls . . . ....N orthw est Securitv N ational... .J. V. Lowe............. . . . 800,000 Yankton.......... . . . F i r s t Dakota National Bank. . . . H. C. Danforth. . . 100,000 Surplus and Profits S 151,198 97,452 9,471 35,040 20,828 286,844 154,722 94,064 58,513 Loans and Discounts $ 369,070 1,433,790 306,195 513,622 135,758 3,259,689 1,352,294 2,928,018 459,244 Bonds and Securities 8 1,514,482 1,943,862 87,218 350,223 228,223 3,858,856 2,211,501 2,426,260 308,218 Cash and Due from Banks $ 552,272 1,045,138 152,376 410,315 118,748 2,950,579 1,677,771 2,566,307 429,512 Deposits $ 2,254,255 4,427.932 492,970 1,187,889 467,781 9,339,914 4,848,947 8,661,624 1,115,286 Group Two Meets To Organize Arthur R. Johnson, cashier o f the Farmers State Bank o f Flandreau, was elected president o f Group 2 o f the South Dakota Bankers Association as the group ended a meeting in Sioux Falls. E. M. Christensen, cashier o f the Minnehaha County Bank o f Valley Springs, was named vice president, and C. W . Harrington, cashier of the Dakota State Bank o f Colman, was elected sec retary-treasurer. N. J. Thompson o f Platte was in W es- In Pukwana the commercial club met sington Springs recently and met with a and decided upon reopening their ex group o f local business men who dis change. It is likely Mrs. Orah Glass, who cussed the organization o f a new bank. has had considerable banking experience, Mr. Thompson and his associates have a will have charge o f the business to be bank at Platte and Presho, and also oper located in the former bank building. ate an exchange branch at Corsica. Although nothing definite was reached Bank Closed at the meeting it was thought some con Because o f impaired capital stock, the clusion would be reached soon. First State Bank o f W ilm ot has been taken over by the state banking depart Group One ment, Superintendent o f Banks James E. Officers elected to head Group One, at Stewart announced. the recent meeting held in Wagner, were In addition to the impairment o f cap H. E. McKee, Gregory, president; L. L. ital, Stewart said, an examination dis Lillibridge, Burke, vice president; and closed that funds o f the bank had been Kerl E. Zutz, Burke, secretary. It was used to acquire stock in another bank in decided to hold the 1939 meeting in violation o f the state banking act. Gregory. The bank was chartered in August, The bankers, representing 35 institu tions in the eastern South Dakota area, picked Flandreau as their 1939 meeting place. The conference ended with a dinner in the Cataract Hotel, featured by an ad dress by John N. Thomson, Centerville, president o f the state association. To Open Exchange UNITED STATES CHECK BOOK COMPANY OMAHA, «.«BANKERS NEBRASKA SUPPLIES»»». N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem ber 1938 É8 South 1919 . On June 30, this year, it had de posits o f $119,276; capital stock o f $25,000 and a surplus o f $9,000. Clearings Gain Sioux Falls bank clearings fo r Septem ber were $5,884,006.25, it was revealed at the Sioux Falls clearing house. This is $12,255.64 more than the total fo r the previous month. The August showing was $5,871,750.61. However, it was con siderably lower than the bank clearings fo r September a year ago, when the amount totaled $6,478,571.97. Dakota News L. L. Branch, Pierre, was elected vice president. A. E. Schnad, Huron, was re-elected secretary-treasurer. Sixty bankers from the Huron area, as well as representatives from Chicago, the Twin Cities and Sioux City, attended the group meeting. Final Dividend The state banking department an nounced liquidation o f assets o f the Farmers State Bank o f Groton and the Farmers State Bank o f Roscoe has been terminated. A final dividend o f 7.16 per cent and amounting to $18,928 is being paid by the Groton bank which closed September 3, 1926. Previous div idends o f 20 per cent aggregated $54,675.56. The Roscoe bank, which closed April 11, 1933, paid a first and final dividend o f 20.6 per cent, amounting to $13,491.84. Morris Plan Officers The Morris Plan Bankers Association in convention at W hite Sulphur Springs, W est Virginia, elected Harry E. Small, vice president and secretary o f the Mor ris Plan Bank o f Cleveland, to the pres idency o f the association fo r the forth coming year. Other officers elected were L. D. Lacy o f Oklahoma City, first vice president; and Horace D. McCowan o f Worcester, second vice president. Mr. Small succeeds Ralph W . Pitman o f Richmond and Philadelphia, who has been president o f the association fo r the past three years. Articles Filed The First State Bank o f Highmore with capital stock o f $25,000, has filed articles o f incorporation with the secre tary o f state. Directors are Martin Bouzek, M. C. Cunningham, H. C. Harris and W . W . Swanson, all o f Highmore, and A. B. Cahalan, Miller. Group Five . . . a Proving Ground f o r Management T h e “ th irties” — the years begin n in g w ith 1930— will go down in h istory as a severe proving ground fo r sound business m an a gem en t, th e life insurance business in clu d ed . “ Looks as though we might have ra in /’ said the tourist to old settler in the Texas Panhandle. “ I hope so,” replied the native, “ not so much fo r myself as fo r my boy here. I ’ve seen it rain.” Earl Baertsch, Conde, was elected pres ident o f Group 5 o f the South Dakota Bankers Association at the annual meet ing in Huron. He succeeds W . H. Burke o f Pierre. A significant m easure o f the m a n a g e m e n t o f a life insurance c o m p a n y , and an im p o rta n t index o f its strength and safety, is the relation o f its current cash incom e to current cash disbursem ents. E x cess o f NW IN L’ s C ash In c o m e O ver C ash D isb u rse m e n ts— B y P er C en t (On a quarterly basis) A s th e chart above shows, at all tim e s during th e critical p eriod o f th e “ th irties” N u>N L ’s norm al cash in c o m e has exceeded its cash dis b u r se m e n ts b y a wide m argin. Even in th e depths o f th e depression, c ash incom e was m ore th a n h alf again as m u ch as all cash dem ands m a d e upon th e C om pan y. IOWA • LITHOGRAPHING • COMPANY FO U N D ED B Y GEORGE H. RAGSDALE 515 • • ■ EDWIN G. RAGSDALE SE CR ETA RY TW EN TY EIGHTH STREET DES • M O IN ES Northwestern National LIFE INSURANCE COMPANY O .J . A R N O L D , President S T R O N G —' Minneapolis.MInn. —L IB E R A L Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 Q U A L I T Y * E X P E R I E N C E • S E R V I C E 49 O FFICERS MINNESOTA BANKERS ASSOCIATIO N FRANK P. POW ERS President President.....................Frank P. Powers Mora Treasu rer........................... G. A. Haven Chaffield Vice President................ A. B. Lathrop St. Paul S ecreta ry ............William Duncan, Jr. Minneapolis W IL L IA M DUNCAN, Jr. Secretary W h at Minnesota Statements Show Figures Reported by Minnesota Banks on Their Statements of Sept. 28, 1938 Statements Received Following Each Call Are Reviewed in the Northwestern Banker as They Appear Below TOW N BANK Albert Lea.............First National Bank. Cloquet..................... First National Bank. Elk River............... First National Bank........... Minneapolis...........Marquette National Bank. î^orthfield...............National Bank & Trust Co. . . Rochester.................Union National Bank......... St. Paul................. .American National Bank. Thief River Falls. Union State Bank....................... Stillwater...............First National Bank.................... Resigns Wm. Perrizo, Jr., cashier o f the First State Bank o f Benson the last two years, has resigned his position in order to devote his full time to his hay and feed business. Mr. Perrizo has been engaged CASHIER Capital Wm. A. Gray........... . .8 180,000 50.000 . G. C. Smith. . . 100.000 •W . A. Putman......... . J. E. B r o w n .......... 400,000 . L. O. Anderson. . . . It. A. Ellingson. .. . . 25,000 E. W . Olson. . . . . . . . 90.000 G. E. Kaul........ .. 150,000 J. F. Haeckel. . . . . 50,000 H. G. Dahl 100,000 E. A. Erickson. . . .. , M. F. Barlow............. 300,000 J. C. MacLean. . . . . . . . 6,000,000 M. E. Mortenson , . . 300,000 G. E. Masters. . . . . . B. E. Bonn......... .. . . 50.000 L. M auritson.. . . . . . 100,000 C. E. Gesme, . . . . . 50,000 H. J. Croke. . . . . . . 200,000 M. O. Hanson........... 25,000 A. C. Burgan.......... .. 125,000 E. A. F. Smith. . . . 1,688,000 C. T. Dedon............ .. , 465,000 A. W . McNee. . . . . . . 6,000,000 T, H. Magee............... 257,600 H. G. Swanson. . . . . 100.000 A. A. Bibus............... E. O. Peter’ on........ 50,000 R. D. MacDonald . . . 200,000 R. H. Willenbring. . 50,000 W . A. Zastrow. . . . . 25,000 G. W . O’Dell............ 100,000 J. Ambrosen............... 200.000 Surplus and Profits $ 30,281 36,710 139,613 1,105,188 215,731 328,168 26,265 7,572 133,375 68,771 151,296 9,095 150,975 7,627,808 173.803 3,897,394 31,623 74,146 57,583 87,308 70,607 71,367 312,583 236,743 7,615,608 169,242 59,973 169,302 68,223 294,557 64,835 36,668 26,200 233,192 Loans and Discounts $ 563,789 513,742 242,730 5,816,289 965,264 1,904,120 213,360 148,250 900.662 483,064 525,508 142,836 1,306,050 32,559,240 3,184,107 34,105,982 354,464 632,097 115,787 600,267 368,220 467,659 4,391,127 3,592,693 46.671,082 1,298,442 894,976 1,681,920 377.278 623,330 315,250 300,663 232,311 1,300,618 in the banking business since 1912 and in this county the entire period. He organized the Farmers State Bank o f Clontarf in 1912 and operated that bank fo r 19 years before liquidating the business in 1931. He was associated with Bonds and Securities $ 931,133 926,801 580,742 9,507,611 3,890,755 3,971,776 159,307 116,864 1,031,094 569,064 281,754 68,040 1,616,167 7,406,715 1,234,156 31,680,168 71,007 334,503 472,639 1,398,122 259,108 508,445 16,535,830 1,569,749 35,150,362 2,588,477 616,600 1,635,149 384,571 2,686,123 579,013 116,927 648,371 1,323,766 From Banks $ 474,593 276,412 660,135 15,323,673 1,419,292 4,717,738 91,512 44,389 597,644 277,649 676,723 31,857 841,477 55,021,566 1,504,442 52,326,974 133,780 286,679 155,016 488,455 554,983 478,631 6,898,392 2,931,738 49,001,979 1,280,957 518,060 2,162,882 187.331 799,886 308.580 140,422 242,079 696,724 the First State Bank here during the fol lowing year and then worked for the First Bank Stock Corporation at Northfield and Minneapolis from 1932 to 1936. He returned to Benson as cashier o f the local bank in June, 1936. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deposits $ 1,82«,816 1,581,627 2,247,739 28,833,013 5.828,958 10,461,838 434,077 97,106 2,306,744 1,261,557 2,203,970 107,004 3,492,382 138,600,618 5,545,107 119,836,626 567,954 1,143,766 656,159 2,274,080 1,086,635 1,779,594 25,796,989 7,360.477 120,034,385 4,680,327 1,818,928 5,019,178 862,058 3,659,700 556,592 233,041 1,043.674 4,050,889 N ovem b er 1938 50 Twin C ity News W IN CITY B AN K E R S were much JAMES M. SUTHERLAND in evidence at two important busi Special Correspondent ness and financial conferences held in Minneapolis in mid-October. R. 0. TH A Y E R , cashier, Fifth North Ralph W . Manuel, president, Marquette western National Bank, Minneapolis, was National Bank, was chairman of local promoted from vice president to presi arrangements for the conference on bank dent o f the Exchequer club o f Minneap ing sponsored by the Society fo r Sta olis at the club’s first meeting o f the sea bility in Money and Banking, Inc. son. Y. E. Mikkelson, president, Fidel Dr. Joseph E. Goodbar, New York, so ity State Bank, was advanced from secre ciety president, explained plans fo r seek tary-treasurer to vice president; and B. ing congressional action (1) to prevent W . Lohmar, manager of First National conflict between money savings and bank Bank and Trust Company’s north side credit, and (2) to coordinate bank credit office, was named secretary-treasurer. volume with economic needs. The conference developed an interest E XECU TIVES o f the Minneapolis and ing difference o f opinion between Dr. St. Paul chapters, American Institute o f Melchior Palyi, University o f Chicago, Banking, conferred with Dr. Harold Ston and Dr. Irving Fisher, professor emeritus ier, New York, national educational di o f Yale university, over the proposal to rector o f the A. I. B. and executive man keep a .100 per cent reserve behind all ager o f the American Bankers Associa deposits subject to check. Dr. Fisher tion, while he was in the Twin Cities for called for “ a more scientific monetary the University o f Minnesota business and system” in defending the reserve pro banking conference. Officers, education posal. Dr. Palyi said governmental con committees and faculties o f the chapters trol o f the quantity o f money has re met Avith Dr. Stonier. sulted in displacement of commercial cred its and business investments by federal S T A F FS o f the Marquette National spending. Bank and affiliated institutions held their Second conference was that in connec annual fall picnic October 8tli at the farm tion with dedication o f the University o f home o f Ralph W . Manuel, bank presi Minnesota’s new $300,000 school o f busi dent, south o f Excelsior, Minnesota. ness administration building. Members of the Chicago Lake and University State Banks also attended. Bankers were urged by Dr. George W . O. H. Odin was general chairman. A s Dowrie, professor o f finance at Stanford sisting were Gordon Larkin, M. S. Samp univers'ty, to accept the greater social son, Evelyn Swanson, Gertrude Dordan, control we now have and to “ strive to Mabel Dahl, Mrs. E. II. Hallgrain, E. D. keep alive to the changing needs” of Cardie, R. J. Chambers and Irene SAvantheir constituency. Dr. Harold Stonier, son. executive manager o f the American Bank ers Association, explained what can be accomplished by education in banking. O F FIC ER S AND EM PLOYES of Other experts discussed technical phases First National Bank o f St. Paul joined o f banking. recently in observance o f the one hun dredth anniversary o f the birth o f James J. Hill, “ Empire Builder” and a domi GUY W . LALONE, vice president, nant figure in the bank fo r many years. First National Bank and Trust Company, Minneapolis, has been reelected treasurer JOHN CARLAN D ER, fo r the past five o f the Minneapolis Better Business Bu years chief examiner in charge o f the reau. T N orth w estern B anker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis Federal Reserve Bank’s ex amination division, has resigned to be come president o f the Faribault State Bank and Trust Company, Faribault, Minnesota. He succeeds the late A. B. Larson. V. E. M IK KELSO N , president o f the Fidelity State Bank, Minneapolis, was a recent speaker before the Minneapolis chapter, Minnesota Credit Union League. T W IN C ITY bankers attending meet ing in Hershey, Pennsylvania, o f Robert Morris Associates, October 10th to 12th, included A rnulf Ueland, vice president, Midland National Bank and Trust Com pany; Edmund S. Jones, vice president, Marquette National Bank; C. R. Chaney, vice president, Northwestern National Bank and Trust Company; A. H. Quay, First National Bank and Trust Company; and H. G. McConnell, assistant federal reserve agent, Minneapolis Federal Re serve Bank, all o f Minneapolis, and J. F. Ringland, Stock Yards National Bank, South St. Paul. J. R. Kingman, Jr., associated with Wells-Dickey Company, Minneapolis, has assumed neAv duties as treasurer o f DunAvoody Industrial Institute, Minneapolis. THESE A RE busy days for John Getchell of Pipe, Jaffiray & Hopwood, Minneapolis. F or “ Johnny” is an offi cial for Western Conference (B ig Ten) football games, and does considerable traveling fo r each Saturday game. DISTRICT J U D G E GUSTAYUS LOEVINGER o f Ramsey county court, St. Paul, has ruled the National City Bank o f New York fraudulently sold $1,266 in stock in 1929 to Mrs. Jessie B. Coleman, because it had not been registered under the Minnesota “ blue sky” law. He held the statute of limitation did not apply because the City Company o f 51 " F E E D E R F iv e L O A N S ” Northwestern states raise about 4 ^ The Northwestern National Bank and billion pounds of beef cattle and sheep Trust Company has always cooperated with every year and sell them for about 925 million dollars. its correspondents in aiding the development of this vastly important farm industry. "Feeding” and "Finishing” are two of You are invited to use our facilities in the most important functions of this live the event that we can assist your bank stock industry. Both require financing and with its "feeder loans.” We are no further that financing is done by hundreds of banks from you than your telephone, telegraph or typewriter. throughout the Northwest. Department of Banks and Bankers W m. N . Jo h n so n Vice President F. W . C onrad Asst. Cashier D. L. P. E . C rouley Asst. Cashier G is v o l d Representative NORTHWESTERN NATIONAL BANK AND TRUST COMPANY Marquette Avenue: 6th to 7th Street M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem ber 1938 52 Min n e sot a N e w s = New York, bank affiliate, withdrew from operation in 1934, suspending the sta tute’s benefit. Federal Judge Robert C. Bell in Min neapolis recently sustained a similar claim o f $165,000 by Samuel M. Shepard. F. S. Goth, Piper, Jaffray and Hopwood, was elected vice president; Norman D. McDonald, W oodard-Elwood & Co., secretary; Joyce S. Einrud, First Na tional Bank & Trust Co., Minneapolis, treasurer, and Mr. Sorum, national com mitteeman. F R A N K T. W . ROOS, Charles E. Lew is & Company, Minneapolis, was elected president o f the Twin City Bond Traders Club at the annual meeting October 18th. H e succeeds K. B. Sorum, A llison-W illiams Company. Mr. Roos appointed A lfred N. Plumley, First National, Minneapolis; Don Anderson, First National Bank, St. Paul, and C. H. Babcock, Harris, Upham & Co., to the executive committee. Resigns Paul Kolbe, o f Bird Island, who fo r the past several years has been employed by the State Banking Department o f Minne sota as a Special Deputy Bank Examiner, resigned his office to enable him to de vote his entire time to his campaign fo r the office o f County Treasurer o f Renville County. Mr. Kolbe has been employed by the department in the liquidating o f the assets o f the State Bank o f Echo, The Farmers State Bank o f Echo, The State Bank o f Belview, the Lucan State Bank, and the State Bank o f Milroy, all in Red wood County, and maintained his head quarters at Echo. President C I l l in o i s NATIONAL BANK AND TRUST CO M PAN Y o n t in e n t a l OF CHICAGO Statement o f Condition, September 28, 19 3 8 RESOURCES Cash and Due from Banks United States Government Obligations, Direct and Fully Guaranteed Other Bonds and Securities Loans and Discounts Stock in Federal Reserve Bank Customers’ Liability on Acceptances Other Banks’ Liability on Bills Purchased Income Accrued but Not Collected Banking House . . . . Real Estate Owned other than Banking H o u s e ..................................................... 510,138,222.76 506,735,826.88 67,637,895.01 156,074,304.48 2,805,000.00 1,185,697.98 9,452.22 3,293,985.02 12,975,000.00 3,489,588.68 ¡1,264,344,973.03 LIABILITIES D ep o sits..................................................... Acceptances ................................... Other Banks’ Bills Endorsed and Sold Reserve forTaxes,Interestand Expenses Reserve for Contingencies Income Collected but Not Earned . Preferred Stock . . . . . Common Stock . . . . . Surplus . ............................................ Undivided Profits . . . . ¡1,139,197,293.81 1,187,684.61 9,452.22 5,780,163.12 13,842,985.11 254,059.82 25.000. 000.00 50.000. 000.00 18.500.000. 00 10,573,334.34 L,264,344,973.03 United States Government obligations and other securities carried at $90,168,581.02 are pledged to secure public and trust deposits and for other purposes as required or permitted by law. M em ber Federal Deposit Insurance Corporation N orth w estern B anker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. H. Finseth o f Hayfield was elected president o f the Southern Minnesota Clearing House Association in Austin when 80 bankers o f Dodge, Mower and Olmsted counties met. H. R. Hommedal o f Rochester was elected vice president and C. F. Dabelstein, director fo r Olmsted County. K. P. Doffing o f Dodge Center was named director fo r Dodge County, and J. F. Schneider o f Elkton, director for Mower County. P. D. Beaulieu o f Austin was elected secretary-treasurer. Legislation “ Traffic control” o f all bank operations, so that savings and time deposits are sep arated completely from demand or “ check” deposits, was urged in Minneap olis by Dr. Joseph E. Goodbar o f New York, president o f the Society fo r Sta bility in Money and Banking, at its Min nesota banking conference. The society will propose federal legis lation to bring that about at the next session o f congress, Dr. Goodbar said. Demand deposits, which are affected by bank credit, he explained, should repre sent funds in current use, while time and savings accounts represent only money left with banks fo r investment. Conference Dr. Harold Stonier o f New York, na tional educational director o f the Ameri can Institute o f Banking and executive manager o f the American Bankers Asso ciation, was one o f the speakers at the round table conferences in connection with the dedication o f the new Business Administration Building at the Univer sity o f Minnesota. Dr. Stonier met with the officers, edu cational committees and faculty o f both Minneapolis and St. Paul A IB chapters at the Town and Country Club, St. Paul. 53 Minnesota The leaders o f Minnesota chapters in Duluth, Winona, Rochester and Mankato were invited to attend the session. Changes Arrangements were completed recently at the monthly meeting o f the Blue Earth Valley National Bank at Winnebago, whereby G. M. Seaberg, director o f the bank, and president o f the Truman Na tional Bank, became the owner o f the A. L. W ard Estate interest in the former institution. Mr. Seaberg was elected executive vice president and I. A. Bab cock elected as a director. No other change was made in the officers. News County, Minnesota, March 14, 1862. He traveled overland by oxen at the age o f 16 to Caledonia, North Dakota, and later moved to Hillsboro, North Dakota, where he operated a general store until 1908 when he entered the banking field. In 1937, he was named agricultural chair man o f Kiwanis International, a position he held until he became ill in August, 1937. To Wheaton Henry Frick o f Sioux Falls, S. D., who has been connected with the First Bank Corporation fo r some time, was elected cashier o f the First National Bank o f Wheaton at a meeting o f the directors. Mr. Frick has been in the banking busi ness many years. Business Leader Dies Olaf Holdahl, 67, prominent business leader, died in Roseau. He had founded the Roseau Milling Co., organized the Roseau Telephone Co. and the Roseau Co-operative Creamery and was a fou n d er o f the Citizens State Bank with which he was connected when he died. Promoted Promotion o f Clifford E. Gesme, cashier o f the Northfield National Bank & Trust Company, to become manager of the First State Bank o f Benson, and the reappointment o f Paul M. Odegaard as a member o f the staff o f the local bank, has been announced by A. P. Meyer, pres ident o f the Northfield institution. Both the Northfield and Benson banks are affiliates o f the First Bank Stock Cor poration. Coming to Northfield from the First National Bank o f Paynesville in Novem ber, 1933, Mr. Gesme, first as assistant cashier and later as cashier o f the Northfield National, has made an outstanding record here, both in business and in the community life o f Northfield. W h ere frien d ly interest is always combined with New Bank W orthington capital is largely respon sible fo r a new bank at Jackson that opened recently. The new financial institution, known as the Jackson State Bank, has R oy E. Trunk o f W orthington as its president and Nic Casareto as one o f the directors. It begins operations with $30,000 capital and surplus in the building form erly occupied by the Jackson National Bank, now out o f existence. The complete bank personnel is R oy E. Trunk, president; F. A. Matuska, vice president; Anton C. Geiger, cashier; and Nic Casareto and John Ingebrigtson, other members o f the board o f directors. President Dies P. S. Peterson, 76, Detroit Lakes bank president and form erly prominent in North Dakota banking circles, died re cently at his summer home from a heart ailment. He had been in ill health the past nine years. Peterson, president o f the Becker County National Bank, which he organized in 1927, was born in Carver e ffici entservice MIDLAND NATIONAL BANK AND TRUST COMPANY o f MINNEAPOLIS M e m b e r Federal D ep osit Insurance Corporation N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 54 Minnesota Chase National The statement o f The Chase National Bank fo r September 30, 1938, has been made public. The deposits o f the bank were $2,376,974,000 compared with $2,152.228.000 on June 30, 1938, and $2,128,875.000 on September 30, 1937. Total resources amounted to $2,670,123.000 compared with $2,449,267,000 on June 30, 1938, and $2,422,152,000 on September 30, 1937; cash in the bank’s vaults and on deposit with the Federal Reserve Bank and other banks, $986,341,000 compared with $801,270,000 and $708,884,000 on the respective dates; in vestments in United States Government securities, $661,918,000 compared with $626,756,000 and $575,011,000; loans and News discounts, $620,197,000 compared with $654,027,000 and $817,313,000. On Sept. 30, 1938, the capital o f the bank was $100,270,000 and the surplus $100,270,000, both amounts unchanged. A fter payment on August 1st o f a semi annual dividend amounting to $5,180,000 the undivided profits on September 30, 1938, were $31,136,000 compared with $31,999,000 on June 30, 1938 and $25,888,000 on September 30, 1937. Another Cut Another cut in the cost o f blanket bonds fo r banks is reported by the In surance Committee o f the American Bankers Association, this one effecting savings to banks o f $1,300,000 annually CREATING NEW VALUES in modern correspondent relationships A growing number of out-of-town bankers find satisfac tion in the experienced correspondent service offered by The Northern Trust Company in Chicago. They enjoy the discussions o f mutual problems which frequently accom pany their visits to this institution. They often benefit by the extensive fund of business information which is at their disposal here. Other bankers who seek a Chicago correspondent are invited to make inquiries. THE NORTHERN TRUST COMPANY 50 S O U T H LA SALLE STR EE T , C H I C A G O in the premiums paid fo r these bonds. In addition, the committee reports reduc tions in fidelity bond rates that will save banks an aggregate o f $90,000 annually. These cuts in the cost o f blanket and fidelity bond insurance are in addition to reductions amounting to $1,200,000 annually announced in July, 1937, on blanket bond rates. The reductions, which became effective October 1, are o f particular benefit to small banks, according to James E. Baum, secretary o f the Insurance Committee. F or banks having less than 26 em ployees, the reduction on blanket bonds will result in savings aggregating $825,000 annually and the larger banks will benefit from savings in insurance costs totaling about $475,000, Mr. Baum states. Costs of blanket bonds to banks with less than six employees was reduced 25 per cent to 40 per cent. F or banks having from 6 to 25 employees the percentages o f reductions decrease gradually as the number o f employees increases. Premi ums paid by banks with more than 25 employees were reduced 9 per cent to 9.5 per cent. A savings o f $90,000 on individual and schedule fidelity bonds was effected, largely fo r the smaller banks. The total amount o f the bond covering one or more employees now determines the rate charged. The new schedule differs from the old flat rate o f $8 per thousand by providing a charge o f $7 per thousand fo r banks insuring their employees in aggregate amounts o f less than $10,000. The rates graduate downward in fou r steps to $5 per thousand fo r bonds in aggregate amounts o f $50,000 and over. Absent-Minded “ W hat’s the matter here?” asked the policeman o f the battered man lying on the sidewalk outside an apartment house. “ Oh, just absent-mindedness,” was the reply. “ W hat are you talking about?” re torted the officer. “ W ell, you see I live on the fourth floor o f this building. My wife and I are both very absent-minded. I just came home from a long business trip, and my wife and I were at the dinner table when a step sounded in the hall and someone tried the door. W ell, my w ife is so ab sent-minded that she said, ‘Goodness, here comes my husband!’ and I ’m so absent-minded that I jumped out the win dow.” M em ber Federal Deposit Insurance Corporation Co-ed : “ W hy dearie, the boys run after my kisses.” Second Co-ed: “ So what? A fter mine they limp.” N orthw estern Banker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 C. E. CUNNINGHAM President Vice President..............Fred Scott Fargo S ecreta ry ................ C. C. Wattam Fargo C. 0. W ATTAM Secretary W hat North Dakota Statements Show Figures Reported by North Dakota Banks on Their Statements of Sept. 28, 1938. Statements Received Following Each Call A re Reviewed in the Northwestern Banker as They Appear Below TOWN BANK Bismarck........ Fargo............... Jamestown. . . Minot............... Valley City. . . Valley City. . . . . . First National Bank o f ............. CASHIER ........ B. F. Lawyer. . . . . . . . . C . H. Oison........... ,. ___ .E. W . Mueller. . . . . . . . . R. S. Loberg........ . . ........ R. M. Hougen...... ........ J. T. Sanger........ Dies In Hatton Funeral services were held recently fo r T. E. Tufte, one o f Hatton’s most prom inent men, who died follow ing an illness o f several weeks. Mr. Tufte was born in Hoi, Hallingdal, Norway, September 30, 1857. He lived there during his youth and early man hood. A pril 28, 1878, he was united in marriage to G-uri Bry, also o f Hoi, and two days after their marriage the couple set out fo r America. Mr. Tufte represented his district in the North Dakota legislature fou r terms. He was elected in 1899, 1901, 1903 and 1907. During that time, as well as before and since, he also held a number o f offices in the township and school district, be sides taking care o f the work on the farm. He was, at the time o f his death, a member o f the board o f directors o f the Farmers & Merchants National Bank o f Hatton, an office which he had held con tinuously fo r 26 years. Board Meeting John C. Eaton, Minot, head o f the Fed eral Insurance Corporation in North Capital 150,000 100,000 100,000 50,000 50,000 Surplus and Profits $ 203,719 204,015 38,481 31,355 27,480 61,419 Loans and Discounts $ 551,506 1,046,751 259,781 206,145 144,858 168,670 Dakota, has been named receiver o f the Stockmen’s State Bank o f Medora. Eaton was named by the state banking board, which also approved application o f the Kindred State Bank to increase the institution’s board o f directors from three to five members and granted an applica tion o f the Farmers’ State Bank o f Maddock to increase its capital stock from $20,000 to $25,000. Two applications o f banks to open pay ing and receiving stations were deferred until the next session o f the board, Bank Examiner Adam L efor said. Applica tions were submitted by the Peoples State Bank o f Parshall, which applied fo r a paying and receiving station at Van Hook, and the W alsh County State Bank o f Grafton seeking a station at St. Thomas. Banker Dies Ole H. Holtan, 70, president o f the Farmers Security Bank o f Washburn, and fo r 51 years a resident o f McLean County, died recently in a Bismarck hos pital. Bonds and Securities $ 1,683,825 1,604,939 621,196 463,674 265,008 454,666 Cash and Due from Banks S 949,631 1,016,292 218,762 318,890 477,243 185,645 Brief News H ERBERT 0 . K ISSE has accepted a position as bookkeeper o f the Union Bank o f Dunn Center to succeed Evalyn Evenson who has resigned. THE SEC RE TAR Y OF STATE has issued a certificate increasing the capital stock o f the Farmers State Bank, Maddock, from $20,000 to $25,000. Group Meetings The fall group meetings o f the North Dakota Bankers Association were sched uled as follow s: Group I Y : Mandan, Memorial Build ing, Friday, October 21,1 9 3 8 ,1 2 :30 P. M. Luncheon. Group I I I : Minot, First National Bank, Saturday, October 22, 1938, 1 :30 P. M. Group I I : Y alley City, R udolf Hotel, Monday, October 24, 1938, 12:30 P. M. Luncheon. Group I : Grand Forks, Dacotah Hotel, October 25, 1938, at 1 2 :30 P. M., Lunch eon. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deposits $ 2,916,851 3,375,202 991,136 948,967 614,406 742,859 N ovem ber 1938 56 Montana News O FFICERS MONTANA BANKERS ASSOCIATIO N Axel Nelson President A X E L NELSON President Sidney Second Vice President.................... R. D. Mountain Shelby First Vice President.......................O. M. Jorgenson Billings S ecreta ry -T rea su rer.....................Ethel W. W alker Helena W h at Montana Statements Show Figures Reported by Montana Banks on Their Statements of Sept. 28, 1938. Statements Received Following Each Call Are Reviewed in the Northwestern Banker as They A ppear Below TOWN BANK Anaconda........ . . . Daly Bank & Trust Co.. . . . ___ Billings............. . . . Midland National Bank. . . . . . . . Billings............. . . . Security Trust & Savings.____ Butte. . . . . . . . . . . . Metals Bank & Trust, . . . . . . . . Columbus......... . . . Yellowstone Bank................. .... . . Dillon............... Dillon............... Forsyth. . . . . . . . . . Forsyth State Bank..................... Glasgow........... Great Falls. . . . . . .First National B a n k ................ .. . Great Falls. . . . . . Great Falls National B a n k . . . . . Great Falls. . . . . . Montana Bank & Trust C o ... . Havre............... Kalispell. . . . . . .. . Conrad National Ba nk. . . . . . . . . Laurel............ .. . . . Yellowstone Bank ........... Libby................. . . . First State Bank o f.................. . , Missoula........... . . . First National Bank. . . . . . . . . . . Plenty wood. . . Stanford.. . . . . , . . Basin State Bank o f................. To Miles City Claude M. Jones, cashier and director o f the Minnesota National Bank o f East Grand Forks, Minnesota, fo r the past 15 months, left November 1 to take charge o f a First Bank Stock Corporation bank affiliate at Miles City, Montana. He will be succeeded by Harry M. Mackenzie, cashier o f the institution for a year prior to the arrival o f Mr. Jones. Mr. Mackenzie has been cashier o f the Red River National Bank in Grand Forks. Mr. Jones came to East Grand Forks in July, 1936, from Minneapolis, where he spent a year with the main offices o f the First Bank Stock Corporation. Prior to that time he had been engaged in the banking business in South Dakota. CASHIER . .. .0 . M. Jorgenson... . . •L. J. Wallace............ .. . . .A . B. Friedlund........ . „L. R. Fousek.. . . . . . . . . ,. . N. B. Matthews........ Capital 250,000 200,000 100,000 600,000 25,000 150,000 100,000 25,000 82,000 600,000 200,000 200,000 50,000 250,000 35,000 25,000 200,000 30,000 25,000 Surplus and Profits S 107,471 229,144 129,885 589,329 15,799 59,594 85,299 43,901 122,790 398,605 141,603 45,867 41,107 53,021 16,683 40,383 192,178 5,171 14,146 failed to resume business follow ing the bank holiday o f March, 1933, brings the total dividends paid to the creditors o f the bank to 100 per cent. Previous dividends paid by receiver were fo r 43 per cent, 43 per cent and 10 per cent respectively, and with the 4 per cent dividend makes the total amount paid to creditors to approximately $412,000. The dividend will not terminate the receivership o f the bank, Mr. Andrieux said. Further liquidation o f bank assets, he said, would result in the payment o f an interest dividend to creditors in the near future. Delivers Checks Dividend Payment o f a 4 per cent dividend total ing approximately $17,500 was made to creditors o f the National Bank o f Ana conda as announced by Edgar Andrieux, receiver. This dividend, which was the fourth paid by the receiver since the institution N orthw estern B anker N ovem b er 1938 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V. C. Hollingsworth, liquidating agent fo r the Granite County Bank, has been in Phillipsburg delivering checks to the depositors o f the bank. The payment is the sixth and final dividend. The distri bution was at the rate o f 6.4 per cent and brought the total dividends paid to 53.4 per cent. Total funds required fo r this distribution amounted to $6,920.45. The bank closed November 8, 1930. Loans & Discounts $ 595,301 947,885 1,259,652 1,642,429 218,460 628,008 901,115 111,738 33,976 1,513,195 1,090,379 840,297 98,505 657,942 296,051 243,442 474,001 65,924 122,727 Bonds & Securities 1,949,856 2,150,530 611,120 6,261,864 108,555 665,497 555,708 273,148 548,059 4,853,502 985,271 976,557 763,799 1,550,660 116,435 210,917 1,316,536 184,882 156,053 $ Cash & Due From Banks $ 1,161,694 1,222,291 861,756 5,088,883 114,839 429,526 153,306 71,702 466,052 3,106,152 1,203,729 877,861 211,138 914,499 193,132 188,477 2,406,425 37,703 56,026 Deposits $ 3,449,005 4,032,910 2,775,544 11,905,736 426,847 1,608,302 1,431,830 401,956 914,52» 8,859,769 3,271,471 2,597,424 927,524 2,914,222 560,312 586,452 3,915,032 257,255 303,946 Prentice Dies Eugene Miles Prentice, vice president o f the Guaranty Trust Company o f New York, died suddenly from a heart attack at his home in Upper Montclair, New Jersey. Surviving are his wife, Mrs. Mildred C. Prentice, a son, Eugene M. Prentice, Jr., and a sister, Mrs. Harry Byrd, o f Pasadena, California. Mr. Prentice was born in R ockford, Illinois, September 2, 1885, attended pub lic schools in South Bend, Indiana, and was graduated from Dartmouth College in 1908. For ten years thereafter he was associated with the State Bank o f Chi cago, resigning in 1918 to join the staff o f the National Bank o f Commerce in New York. A fter service in various de partments at this bank’s Main Office in New York, Mr. Prentice was appointed an assistant cashier, on November 1,1920, and successive promotions made him a second vice president in March, 1924, and vice president in May, 1926. He contin ued to serve as a vice president when his institution was merged with the Guar anty Trust Company o f New York in May, 1929, and has since been engaged in the work o f the Company’s Banking De partment, in charge o f credits. 57 O FFICERS IOW A BANKERS ASSOCIATIO N E. A. EBERSOLE President President......................... E. A. Ebersole Keokuk Treasurer................... .George W. Falk Oelwein Vice President..............O scar A. Otto Atlantic S e c r e ta r y .......................Frank W arner Des Moines FRANK W AR N ER Secretary W h at Iowa Statements Sh ow Figures Reported by Iowa Banks on Their Statements of Sept. 28 Statements Received Following Each Call Are Reviewed in the Northwestern Ban ker as They A ppear Below Capital CASHIER TOWN BANK 25,000 A d e l.................. . . Dallas County State Bank. . . . . . . . .O. D. Ellsworth........ $ 50,000 Algona. ............. . .Iowa State Bank. . . . . . . . . . . . . . . . . . .H . L. Gilmore............. 75,000 Am es................... . . Ames Trust & Savings Bank........... .C . W . Stafford. . . . . . . 100,000 Am es................... . . Union Story Trust & Sav. B a n k .. .F . H. Schleifer............. 50,000 Atlantic............. ..Atlantic State Bank.. ................... .W . R. Remien............. 100,000 Boone. . . . . . . . . . .Boone State Bank & Trust Co.......... . R. J. Meyers. . . . . . . . . 100,000 Boone................. . Citizens National Bank..................... . E. E. Wiemer. . . . . . . . 50,000 Breda................... . Breda Savings Bank........................... . F. VanErdewyk ......... 100,000 Burlington........ . . Burlington Savings Bank................. . W. H. Swiler............. 200,000 Burlington. . . . . . . National Bank of . , . . . . . . . . . . . . . . . .Mortimer Goodwin .. 500,000 Cedar Rapids. . . .Merchants National Bank................... .Mark J. Meyers........... 50,000 Centerville......... ..F ir s t National Bank............................ .Roy E. Oughton......... •L. F. Smith................... 50,000 Chariton............. . . First State Bank............. 100,000 Chariton............. . , National Bank & Trust Co................ .E . L. Gookin............... . 100,000 Charles City. .. . .First Security Bank & Trust Co.. . . .Merten J. Klaus........... Clinton............... . City National Bank. . . . . . . . . . . . . . . . J. H. Nissen. ............. .. 400,000 100,000 Clinton............... . National Savings Ba nk. . . . . . . . . . •L. J. Derflinger.. . .. Colfax................. . . First National Bank. . . . . . . . . . . . . . . , H. E. Bell, . . . . . . . . . . 25,000 100,000 Council Bluffs. . . State Savings Bank'.............................. H. L. T inley.............. Davenport......... . .First Trust & Savings Bank............. . F. A. Johnson............ . 135,000 Denison............... . .First National Bank............. . H. C. Linduski. ........... 100,000 Des Moines. . . . . .Capital City State Bank..................... . R. G. Miller................. 150,000 Des Moines. . . . . .Iowa-Des Moines National B a n k ... . Harry G. W ilson. . . . . 3,000,000 Dubuque.. . . . . . . . First National B a n k .......................... J. V . Keppler.. . . . . . . 300,000 Dunlap............... . .Dunlap Savings Bank. . . . . . . . . . . . . .G. H. Millard............. 25,000 Eldora................. . Hardin County National Bank. .. .. .E . W . Nuckolls........... 85,000 Estherville......... . Iowa Trust & Savings Bank. . . . . . .D. T. Lawler, . . . . . . . . 25,000 Fort Dodge . .. . . .The State Bank..................... ................ . J. Floyd Rich. . . . . . . . 100,000 Fort Madison.. . .Fort Madison Savings Bank. . . . . . . H. H. Mohrfeld........... 205,000 Fort Madison. . . .Iowa State Bank.................................... ,M . E. Lehning.. . . . . 100,000 Grinnell.............. . .Grinnell State Bank. . . . . . . . . . . . . . H. C. McCleery......... 60,000 Griswold.. . . . . . . . Griswold State Bank......................... .. .Paul F. De n h a m. . . , , 15,000 Hawarden. . . . . . ..First National B a n k . . . . . . . . ......... .. . H. Visser ...................... 50,000 Ida Grove........... . Ida County State Bank. . . . . . . . . . . . . L. V . Overholtzer. . . 40,000 Indian ola........... . People Trust & Savings Bank......... •M. F. H enderson.... 100,000 Iowa City........... ..Iow a St. Bank & Trust Co............... . M. B. Guthrie.. . . . . 100,000 Jefferson............. . .Jefferson State Bank. .......................... .V . W . M ille r ........... 50,000 Kellogg............... . Kellogg Savings Bank.......................... . J. D. Roth. . . . . . . . 25,000 Marshalltown.. . .Fidelity Savings Bank. . . . . . . . . . . . .A . T. Davis................. 100,000 Marshalltown.. ..Security Savings B a n k ...................... .B. G. Brown................. 50,000 Martelle............. . .Farmers Savings Bank. . . . . . . . . . . . •G. C. Marti n. . . . . . . . . 25,000 Missouri Valley . .First National B a n k ........................... H. F. Foss..................... 50,000 Muscatine. . . . . . . . Central State Bank............................. •G. Downing................. 125,000 Newton. . . . . . . . . . Jasper County Savings B a n k .. .. .. .A . E. Hindorff........... 100,000 Surplus and Profits $ 20,997 77,577 53,719 45,262 75,395 49,946 53,176 12,763 148,311 54,162 1,828,302 69,362 16,568 53,909 50,331 340,843 35,183 43,750 86,300 51,837 53,810 92,862 932,683 416,363 25,108 62,431 32,617 122,038 57,650 36,558 18,383 11,249 30,289 22,687 62,712 63,616 90,788 49,430 171,696 48,210 13,091 33,249 49,538 191,705 Loans and Discounts 321,222 455,010 298,625 493,064 529,418 1,480,107 682,868 314,142 1,180,500 679,266 7,255,011 129,567 193,401 296,647 820,232 2,379,043 288,224 346,095 1,414,818* 667,711 411,886 976,257 12,060,871 424,482 160,116 261,869 202,408 1,017,998 783,273 231,943 445,100 119,180 202,603 238,854 448,488 1,289,274 795,156 407,844 453,533 449,055 59,872 129,519 754,543 2,179,022 $ Bonds and Securities $ 15,811 98,725 642,526 524,878 614,970 199,435 548,923 68,200 651,903 1,888,470 12,957,654 790,792 149,570 804,438 151,227 1,527,334 546,796 204,353 1,028,581 357,400 1,372,611 15,947,423 7,205,635 119,578 549,510 126,083 559,951 1,605,842 232,916 174,000 34,650 78,128 143,074 1,041,223 690,825 213,217 55,274 1,267,582 638,239 155,820 422,296 1,205,220 595,278 1938. Cash and Due from Banks $ 459,256 685,912 468,342 169,763 366,117 597,030 553,422 58,861 1,233,073 616,238 9,936,804 340,668 310,265 228,115 594,393 1,799,838 481,781 116,347 538,682 546,675 204,781 593,839 13,805,822 2,531,152 69,483 454,678 148,492 825,785 818,644 150,661 318,072 95,605 65,719 247,728 292,640 967,480 352,428 71,259 1,938,112 567,687 59,562 151,413 843,853 795,534 Deposits 790,218 1,420,678 1,689,215 1,080,491 1,406,004 2,152,688 1,640,888 378,468 3,328,101 2,991,448 28,970,931 1,129,026 595,502 1,228,789 1,407,173 5,257,308 1,252,855 607,858 1,781,762 1,877,569 842,628 2,790,599 39,649,330 9,424,544 308,954 1,166,399 542,501 2,193,291 2,954,007 493,110 880,950 223,163 368,896 576,015 1,548,694 2,870,466 1,369,865 580,813 4,120,598 1,718,315 257,935 682,870 2,412,934 3,411,890 $ (Turn to page 60, please) UNITED STATES CHECK BOOK COMPANY O M A H A , ... BANKERS N EB R A S K A su PPLIES » » » N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem ber 1938 . ..; ■; FANCY G O L D E N BANTAM WHOLE G R A I N COB! CONTENTS \ LB. 4 OZr :: Upper Right Eight rackloads of peas, arriving at Roland, Iowa, plant. • Center— Headquarters office and canning plant at Marshalltown, Iowa. In the foreground special tomato-plants await transplanting. * Lower Left— Jack Sprat Whole Grain Golden Bantam Corn, a leader among the 300 fine foods that carry the Jack Sprat label. • Lower Right— Choice tomatoes passing over the inspection table at the Marshalltown plant. BANKERS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6th and Locust Streets \ K > R K V A L1 '!-: to farmers ■• ■to families Of America’s current problems, one of the most perplexing is — how to give producers more for what they grow, and still give con sumers more for what they pay? Among the organizations working out sound answers to this vital problem, is the Western Grocer Company, and its subsid iary, the Marshall Canning Company, whose nation-wide business is directed from head quarters at Marshalltown. Typical example of the company’s effort to give more value both to farmer and to family, may be found in its handling of corn. For the company’s canneries, corn is purchased from farmers who receive a bonus per bushel when yield-per-acre ex ceeds a specified amount. Since “ bonus” corn can be packed at lower handling cost, the bonus payment does not increase the price to consumer. Instead, the housewife gets better corn for her money. The company has worked toward similar economies in the field of distribution. The name of its featured brand — Jack Sprat — also identifies a group of more than 1000 grocery stores who cooperate with the Western Grocer Company in merchandising. These stores are privately-owned, the prop erty of the merchants who run them. But by buying together and advertising to gether through the Jack Sprat organization, they effect important savings, which result in greater value for the consumer. Original business of the company was dis tribution alone. Formed in 1900 by con solidation of the Letts-Fletcher Company of Marshalltown and the H . L. Spencer Company of Oskaloosa, the Western Grocer Company concentrated its early years on improvements in service to retailers. As part of this program, the company be gan in 1907 to pack some of its own foods. Gradually, the number of canned or manu factured items has increased to include nearly all vegetables, and a complete line of grocery sundries, and coffees. Even during depression years, growth has gone steadily on. Since 1932, canning production has risen from two million up to three million cases a year. Today, through the fourteen wholesale branches, the Western Grocer Company distributes food products to retailers in Illinois, Iowa, Kansas, Missouri, Minne sota and Wisconsin. It has forty sales repre sentatives outside its own jobbing territory, selling to more than 800 other wholesalers. Its ten canning plants in Iowa, Indiana and Texas have a mid-season capacity of more than 85,000 cases in a single day. Paying more than $500,000 each year to farmers in Iowa alone, and supplying food products to grocers who serve homes through out the state, the Western Grocer Company has doubly earned its recognition as one of the “ Institutions that M ake Iowa.” Among the banks serving the Western Grocer Company, is the Security Savings Bank at Marshalltown, which is in turn, a customer of the Bankers Trust Company at Des Moines. In addition, ever since Western Grocer established a wholesale branch in Des Moines, Bankers Trust has been privileged to serve that branch. The value of its services as correspondent is evidenced in the ever-growing list of Iowa banks who depend on Bankers Trust to transact their Des M oines business. COMPANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation Des Moines 60 W H A T IO W A STATEM ENTS S H O W (Continued from page 57) Newton................... Newton National Bank..........................W . T. Robinson........... Oelwein...................First National Bank o f ......................... G. W . Falk................... Orange City..........Northwestern State Bank...................H. C. Moret................... Pella........................ Pella National Bank................................H. P. Sholte.................. Perry....................... First National Bank................................ E. R. Burkett............... Red Oak..................First National Bank................................ W . J. Roberts.............. Staint A n sg a r.. . .Citizens State Bank................................A. Halvorsen .............. Sioux City.............First National Bank............................... F. Fritzson .................... Sioux City.............Live Stock National Bank.......................M. A . W ilson................ Sioux City.............Security National Bank.......................... R. E. Brown................ Sioux City.............Woodbury County Savings B a n k ...C . T. McClintock.. . . Spencer................... Clay County National Bank................A. E. Anderson........... Storm Lake........... Citizens First NationalBank................ W . A . Myers.................. Storm Lake...........Commercial Trust & Savings Bank. .E. J. Knebel................ Stratford................ Farmers Savings Bank............................ E. J. Johnson............... Stuart..................... First National Bank................................. C. L. Beech................... V in to n ...................State Bank of V in to n ..............................J. C. Carrier............... Wapello...................State Bank of Wapello..........................H. B. Hammer............. Waterloo.................Waterloo Savings Bank......................... J. J. Miller................... * Also includes Bonds and Securities 100,000 50,000 65,000 50,000 50,000 100,000 50,000 400,000 300,000 250,000 100,000 75,000 75,000 50,000 20,000 50,000 65,000 25,000 175,000 72,711 89,239 52,873 48,516 92,721 21,586 34,306 215,493 227,035 228,963 71,180 100,276 174,326 29,891 12,107 8,198 62,122 11,948 170,231 485,961 250,089 735,723 195,290 690,111 339,021 669,905* 2,558,045 1,931,292 1,570,559 1,204,182 757,599 921,839 227,544 155,964 124,328 682,775 257,430 1,882,040 637,519 542,435 23,500 555,624 53,121 452,602 2,247,637 1,309,997 998,613 845,670 293,714 313,350 311,100 67,811 153,410 325,457 56,172 1,019,305 256,017 415,186 281,486 520,945 510,606 272,627 130,981 2,030,816 2,683,405 2,058,012 491,717 757,631 672,521 94,271 64,576 105,304 600,353 143,744 3,245,933 1,271,576 1,264,266 959,125 1,181,356 1,141,487 1,070,776 743,886 6,371,371 5,371,192 5,377,950 2,364,705 1,669,310 1,653,226 570,285 260,362 343,002 1,473,173 424,591 5,920,906 BRIEF N EW S B y J. A. SARAZEN Associate Editor TRUSTS "...rain check..." If you didn't get to stop in and see us the last time you were in Chicago, remember, you have a rain check on your next visit. Come in anytime. We're never too busy to see our friends . . . both new and old. LAURANCE ARMOUR President A M E R I C A N N A T I O N A L BANK AND TRUST COMPANY L A S A L L E STREET AT THE COM M ERCIAL State Bank, A fton, will soon open an office at Lorimor. The town has a population o f 600 and is fourteen miles from A fton. Kenneth Seeley, assistant cashier, will he in charge. DEPOSITS in the Clarke County State Bank, Osceola, increased $120,000 since the first o f the year. The bank pays no interest on deposits and has a reasonable service charge on cheeking ac counts as fo llo w s: I f that account av erages less than $100, a charge is made o f 5 cents per check fo r the first ten checks and 3 cents fo r each check over ten. Accounts averaging over $100 are allowed 15 free checks and extra checks are 3 cents each. There is no base charge. BOTH banks in Creston pay one per cent interests on deposits. THE IO W A State Savings Bank, Creston, has completely remodeled the interior o f the bank. Tellers cages are completely new and are the new low type, composition board was added to the ceiling and the walls redecorated as well as many other improvements. W ork was done by the Fisher Company. THE F IR ST National Bank, Creston, has total deposits o f $1,120,000. Demand deposits are $694,000 and time deposits o f $426,000. THE UNION State at Bridgewater, has been paying one per cent interest on deposits fo r the last year. Ed Arnold, cashier, spent a week in a Des Moines hospital during October. W A S H I N G T O N M em ber F ed eral D ep osit Insurance C o rp ora tion THE B A N K at Kent makes a service charge o f 25 cents per month on cheek ing accounts. THE R IP P E Y Savings Bank is exhib iting the first statement o f the bank N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 Jt J ■r 61 I o w a which was brought in to Cashier D. M. Crumley a few days ago by one o f the first directors, Dr. J. H. Shipley. The statement is as o f August 25, 1905, just six months after the bank opened fo r business. Deposits are listed at $18,000, capital was $10,000 with no surplus. R e cent statement lists deposits o f $352,000, capital o f $25,000 and surplus and un divided profits o f $31,000. THE R IP P E Y Savings Bank recently completed an addition to the bank which gives it more than double the working space. The old part was also modern ized and brought up to date. THE P E R R Y State Bank lists demand deposits o f $590,000 and time money o f $495,000. THE IO W A Trust and Savings Bank, Emmetsburg, now carry their bank build ing at just one dollar. Capital is $25,000, surplus $50,000 and undivided profits o f $70,000. Both banks here pay two per cent. ings Bank; V. O. Figge, president, Dav enport Bank & Trust Company, Davenport; E. F. Buckley, vice president, Central National Bank & Trust Co., Des M oines; Grant McPherrin, president, Central National Bank & Trust Co., Des M oines; Herbert L. Horton, president, Iowa-Des Moines National Bank & Trust Co., Des M oines; D. W . Bates, superin tendent, State Banking Department, Des M oines; H. O. Lovett, vice president, First National Bank, Fairfield; F. D. Williams, executive vice president, First Capital National Bank, Iowa City; C lif ford DePuy, publisher The: N orthwest- F R A N K A. W H IT N E Y , cashier, Som ers Savings Bank, is a candidate fo r reelection fo r state representative fo r Cal houn county. To Attend A . B. A . As we go to press with this November issue o f T he N orthwestern Banker, the follow ing are among those from Iowa who are planning to attend the American Bankers Association convention in Hous ton : V. W . Johnson, president, Union Bank & Trust Company, Cedar Falls; H. N. Boyson, vice president, Merchants Na tional Bank, Cedar R apid s; John T. Ham ilton, III, assistant cashier, Merchants National Bank, Cedar Rapids; Frank C. W elch, president, Peoples Savings Bank, Cedar Rapids; Melvin W . Ellis, presi dent, First Security Bank & Trust Co., Charles C ity; Edward M. Warner, presi dent, City National Bank, Clinton; B. A. Gronstal, president, Council Bluffs Sav Banker, Des M oines; Dr. E. M. Macowen, vice president, Iowa State Bank & Trust Co., Iowa C ity; Ben S. Summerwill, president, Iowa State Bank & Trust Co., Iowa C ity; E. A. Ebersole, president, Iowa Bankers Association, cashier, State Central Savings Bank, Keokuk; Wm. Zunkel, cashier, Decatur County State Bank, Leon; Carson Williams, executive vice president, Security State Bank, Mt. A y r ; Julian Frost, vice president, Clarke County State Bank, Osceola; R. W . Funk, vice president, Union Bank & Trust Co., Ottumwa; Max von Schrader, cashier, Union Bank & Trust Co., Ottumwa; C. L. ern UNION BANK and TRUST COMPANY Ottumwa, Iowa MEMBER OF FEDERAL RESERVE SYSTEM B AN K ER S o f W ebster county held their annual meeting October 13th at Port Dodge. Officers elected to serve for the year are: 0 . B. Lundgren, president; J. W . Ryberg, vice president; and R. C. Allen, secretary. F. L. LORGE, cashier, Pocahontas State Bank, while confined to his home fo r the last eight months on account o f illness, keeps in close touch with affairs at the bank. N e w s Statement of Condition as of Sept. 28, 1938 RESOURCES Loans and Discounts .$1,910.627.17 Bank Building _ 117,600.00 Furniture and Fixtures and Safety Deposit Vaults. 23,916.44 Stock in Federal Reserve Bank 13,500.00 Overdrafts 2,617.68 U. S. Bonds .. . $ 437,542.20 Municipal Bonds 944,771.37 Other Marketable Bonds 686,930.61 Cash and Exchange _ 1,795,627.54 3,864,871.72 $5,933,133.01 LIABILITIES Capital (Common) _ .$ Surplus 150,000.00 Undivided Profits and Reserves (Net) Deposits 79,603.39 . 5,403,529.62 $5,933,133.01 Member Federal Deposit Insurance Corporation N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 300,000.00 N ovem b er 1938 62 11 o w a N e w s Fredericksen, president, Live Stock Na tional Bank, Sioux C ity; C. R. Gossett, president, Security National Bank, Sioux City; R. R. Brubacher, president, Toy National Bank, Sioux C ity; H. W . Schaller, president, Citizens First National Bank, Storm Lake; J. J. Miller, cashier, W aterloo Savings Bank, W aterloo; and E. L. Johnson, Reliance Securities Co., W aterloo. Elect Officers A t the meeting o f the organization committee o f the Marshall County Group Study Class o f the American Institute o f Banking the follow ing officers were elected fo r the coming year, 1938-39: John G. Bartine, Fidelity Savings Bank, Marshalltown, as president and Perry J. Everett, Commercial State Bank, Mar shalltown, as secretary. The committee decided upon Floyd Hancock o f the Mar shalltown public schools to act as instruc tor in the class “ Bank Organization and Operation.” The first regular class ses sion will be held November 2, 1938, from seven to nine p. m. at the Central Iowa Business College rooms. This group will represent bankers from Marshalltown and surrounding towns. Retire Stock Retirement o f $200,000 o f preferred stock o f the Iowa-Des Moines National Bank & Trust Company has been an nounced by Herbert L. Horton, president. Concurrently with this reduction in pre ferred stock the bank has increased its common stock by $200,000, Mr. Horton said. This retirement o f preferred stock is in addition to $2,050,000 o f stock re tired in 1936 and 1937. As a result o f these changes the bank’s capital structure now consists o f $1,750,000 o f common stock, $1,250,000 o f pre ferred stock and $878,049 o f surplus and undivided profits. Resigns N. J. Greteman fo r the past six years with the receivership office o f the State Banking Department and fo r the past two years in charge o f the liquidation of closed banks in Dubuque, resigned that position last month and has been named credit manager fo r the Dubuque Fire & Marine and the National Reserve Insur ance Companies o f Dubuque. Prior to going with the Iowa Banking Department Mr. Greteman was cashier o f the Citizeris State Bank o f W est Union, which bank was purchased by the State Bank o f W est Union in 1932. I N S IO U X C IT Y - ■ • Located on the borders of Iowa, Nebraska and South Dakota, Sioux City is the heart of a great farm and livestock market. Servicing this market is the First National Bank in Sioux City. Our broad contacts, our facilities for handling details, and the personal interest we maintain in conducting correspondent bank business, make this your ideal Sioux City banking connection. L et us serve you in Sioux City. OFFICERS J. R. GRANING Assistant Cashier E. A. JOHNSON Assistant Cashier J. P. HAINER J. T. GRANT Executive Vice President Auditor FRITZ FRITZSON, Vice President & Cashier A. S. HANFORD President Member Federal Deposit Insurance Corporation Northwestern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 Keokuk vs. Des Moines (Continued) Apparently the item “ Keokuk vs. Des Moines” , published on page 54 o f the October issue o f The Northwestern Banker, is arousing almost as much in terest as the recent questionable pub licity enjoyed by the Iowa football team. W e are in receipt o f a letter from a resi dent o f Keokuk, who says he is not only cashier o f the State Central Savings Bank o f that city, but also holds a re sponsible position with the Iowa Bankers Association. Since we have no reason to doubt the veracity o f the gentleman from Keokuk, and since he should have an opportunity to present his side o f the story, we reproduce his letter as fo llo w s: “ Surely, Mr. Publisher, you verify all items before placing them in your pub lication and being a loyal citizen o f the City o f Neokuk, this article concerning one o f our citizens is very irksome. “ I have been asked by the man referred to in the article to inform you it was not he who was extolling his own golfing virtues but that at a previous meeting the Messrs. Banker and Broker strutted around voicing their accomplishments and it was to prove their statements that the president o f so great an association stooped to arranging a match. “ Needless to say, my client wishes the 63 names o f the two parties. He is familiar with all the prominent bankers and brokers in Des Moines but memory fails him in regard to the other two parties by the insertion o f the word, “ prominent,” in your article.” Office Closed 0 . W . Madson, cashier o f the Security Savings Bank o f Farnhamville, advises that the board o f directors o f his institu tion have decided to close the office form erly operated at Slifer, and from now on all business from the latter community will be conducted at the bank in Farn hamville. R A C K of e ve r y ki nd of public service is an unseen organization, efficient, essential, yet generally unrecognized. Fifty Years On October 8th Fred J. Figge observed the fiftieth anniversary o f his connection with the Ossian State Bank, one o f the pioneer banking institutions o f north eastern Iowa. The Ossian Bank, a private institution, was established on February 9, 1880, by L. A. Meyer and M. J. Carter, doing busi ness under the firm name o f Meyer & Carter. On October 8, 1888, Mr. Figge began working in the bank. A fter his first year in the hank the firm name was changed to Meyer, Carter Back of the friendly smile at the teller’s window is the grim business of handling the daily grist of cash and collections. Back of the service you render your depositors are the facili ties of this bank available to them through you. It is our concern, as it is that of your teller, that your customers shall be well served. FRED J. FIGGE & Figge. In 1907 the bank took out a charter as the Ossian State Bank, its cap ital being $25,000. A t that time the business was moved into the new building on Main street— its present location • — which building had been built by Mr. Figge. L. A. Meyer was its first president and Fred J. Figge its first vice president and cashier under the charter. The assistant cashier was the late Joseph W . Meyer, who later became cashier o f the Consoli dated National Bank at Dubuque. Later L. A. Meyer saw fit to retire, and Mr. Figge was made president. Student Body j The 1938 fall enrollment at the Ameri can Institute o f Business in Des Moines has surpassed all previous records with an approximate total o f seven hundred students. From ten different states o f the Union ... THE ... P H IL A D E L P H IA NATIONAL BANK ORGANIZED 1803 PHILADELPHIA, PA. Capital, Surplus and Undivided Profits $ 39,000,000 Member of Federal Deposit Insurance Corporation N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 64 I o IV a N e w s they have assembled. Minnesota, Ne braska, North Dakota, Illinois, Kansas, New York, South Dakota, Colorado, Cali fornia, and Iowa are represented in the student body. Scholars from farms and rural towns o f Iowa comprise about three-fourths o f the enrollment. Every county in the state o f Iowa is represented by at least one A. I. B. stu dent. 272 towns have contributed to the number. Des Moines, o f course, leads the enrollment by cities with 64, followed by Knoxville, Storm Lake, Carroll, Poca hontas, and Webster City. One student, A GENERAL though now living in Iowa was born in Russia. Anniversary The Cherokee State Bank, on Saturday, October 22, celebrated completion o f a full half century o f service to the com munity and to the wider territory into which it has expanded. Organized Octo ber 22, 1888, with a capital stock o f $25,000, it has enjoyed a steady and excep tional growth. Capitalized now at $120,000, with sur plus and reserves in excess o f $70,000, it BANKI NG SERVI CE carries deposits totaling more than one and a half million dollars and assets o f nearly a million, eight hundred thousand dollars. In Full The Sloan State Bank has received per mission from the banking department at Des Moines, to pay the balance o f the trust account which was set up in Novem ber, 1933. The total amount o f these trust certificates Avas $124,795.59. The bank has paid the following amounts on the follow ing dates: January 15, 1934, 10 per cent. May 15, 1934, 15 per cent. November 20, 1934, 10 per cent. March 15, 1935, 15 per cent. October 28, 1935, 10 per cent. A pril 20, 1936, 15 per cent. October 26, 1936, 10 per cent. April 1, 1938, 10 per cent. November 1, 1938, 5 per cent. A ll o f the depositors in the bank have now received their money in full. Banker Dies L. D. Garberson, prominent Sibley citi zen, passed away recently at Rochester, Minn. Mr. Garberson fo r many years has been one o f the most active workers in his community, having aided in the promotion o f many worthwhile projects fo r the upbuilding o f the community. He was president o f the Sibley State Bank at the time o f his death. Wedding W e Especially Invite IO W A B A N K E R S to visit the INTERNATIONAL LIVE STOCK EXPOSITION The Drovers Banks join the management of the “ Inter national” in extending a cordial invitation to Iowa Bank ers to attend the 1938 Live Stock Exposition in Chicago, November 26th to December 3rd. And this gala week at the Drovers Banks will be “open house” week for outof-town bankers and their friends. Be sure to drop in during your visit. N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ovem b er 1938 A wedding o f interest in Sioux Rapids was that o f Miss Ferrol Hughes, daugh ter o f Mr. and Mrs. J. B. Hughes o f Linn Grove, and Mr. Verl Rhine o f Sioux Rapids, son o f Mr. and Mrs. J. M. Rhine o f Grundy Center, which took place at Elk Point, S. D. The bride has been an instructor o f the fourth grade o f the Sioux Rapids public school since January, 1938. The bridegroom is employed at the First State Bank at Sioux Rapids. Hours Change On Monday, October 24th, banking hours at Farmers State Bank, Jesup, Iowa, will be from 9:00 A. M. to 12 o’clock noon, and from 1:00 P. M. to 3:00 P . M . The above change is made necessary to comply with hours o f employment 65 : authorized in the Wage and Hour Di vision of the Fair Labor Standard Act of 1938. Remodeled The Osage Farmers National Bank held “ open house” to customers and friends recently, the occasion being to acquaint the public with the remodeled interior, which has just been completed. The improvement was decided upon by the directors of the bank for the sole pur pose of adding to the convenience of the customers and to make it possible for more efficient work of the employes of the institution. I o w a N e w s — bank was reorganized after the death of W. C. Stuckslager, he became president of the Lisbon Bank and Trust Company, the successor of the old familiar banking institution of Stuckslager and Auracher and in that capacity is still active and at the bank daily. Sixty-one Years A couple who have lived all their mar ried life in Lisbon, observed their sixtyfirst wedding anniversary on Tuesday, October 4. Mr. and Mrs. John Auracher during this long period of years have also lived in the same residence which has been their home with the exception of the time it was being built. Mr. Auracher has been connected with the banks of Lisbon for 52 years. In 1866 Harrison Stuckslager died and Mr. Auracher was called to the banking house of Stuckslager and Auracher. When the Increase Waterloo’s bank deposits and resources increased 6 per cent and bank loans 5 per cent in the last seven months, study of statements revealed. Deposits on Sept. 28 were $11,886,- Dies in Davenport L. P. Jackson, for 26 years cashier of the bank at West Chester and long one of the prominent men of that community, died recently. Attends Conference E. A. Ebersole, president of the Iowa Bankers Association, was in Minneapolis, Minn., last month, where he attended the Minnesota conference on banking spon sored by the board of governors of the Society for Stability in Money and Bank ing, Inc. Among the speakers of international prominence on the program were Dr. Otto Rosenberg, former secretary and eco nomic advisor to the Bankenverband at Vienna; Dr. Melchior Palyi of the Uni versity of Chicago, former economic ad visor to the German Reichsbank; Dr. Irving Fisher of Yale university; and Dr. Joseph E. Goodbar, president of the Society for Stability in Money and Bank ing. Office Manager Announcement has been made of the appointment of Dewey Kuiken of Mau rice as the new manager of the Maurice Office of the Northwestern State Bank, Ireton. Mr. Kuiken has been assistant to P. N. Vos for over three years. Bernard DeHaan has been hired as assistant to Mr. Kuiken. Not e v e n a tornado c a n d o a s m u ch d a m a g e to a b a n k a s c a n a sin g le dishonest officer or e m p lo y e e . For at m ost, a tornado c a n o n ly d estroy the p h y sica l p roperty of a b a n k , w h e r e a s the u n d isclo se d thefts of a trusted e m p lo y e e m a y co m p letely drain a w a y its v ery life-b lood. T o d a y , a s during the past 48 y e a rs, the best preven tive of su ch in volu n tary d isso lution is a n a d e q u a te F & D B ankers Blanket Bond. A t Meeting Three Des Moines bankers attended the Robert Morris Associates meeting in Hershey, Penn., made up of bank credit officers from over the country. Attend ing were Harry Sivright, vice president and Charles McCoy, manager of the Credit department of the Iowa-Des Moines National Bank and Trust Co., and Irwin Abram, manager of the credit de partment of the Central National Bank and Trust Co. FIDELITY, SURETY AND BANKERS BLANKET BON D S B U R G L A R Y , R O B B E R Y , F O R G E R Y A N D G L A S S J N S U R A N CE FIDELITY and DEPOSIT C « M I» A N Y « F M A K Y E A Y I», Il A I . T I >1 O R E Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 66 487.38, a gain of $669,413.27 over the figure on March 7. Resources on Sept. 28 were $12,730,113.03, a gain of $696,720.42 over the amount on March 7. Loans on Sept. 28 were $3,941,375.76, a gain of $175,499.62 over the total on March 7. YESTERDAY — Statement of Condition October 17, 1934 R ESOURCES Cash and Due from Banks....................................................... $488,882.74 Loans and Discounts........................................................... .... 4,700.00 $493,582.74 L IA B IL IT IE S Capital Stock ............................................................................... $100,000.00 Surplus and Undivided Profits............................................. 25,023.52 368,555.70 Deposits ........................................................................... Federal Tax Account............................................................... •................3.52 $493,582.74 New Building The new Crawford County Trust and Savings Bank opened its new $50,000 building to the public Saturday, October 22nd, at 9 a. m., according to H. E. Qualheim, president. Open house was conducted all day Sat urday during banking hours, and the doors were again opened that night for the convenience of those who could not attend during the day. TODAY— Statement of Condition September 28, 1938 R ESOURCES Cash and Du© from Banks......................... $967,480.41 U. S. Bonds..................................................... 511,279.13 Other Bonds and Securities........................ 179,546.50 CASH OR ITS E Q U IV A LE N T........................ ...........$1,658,306.04 Loans and Discounts................................................. ...........$1,289,274.90 ........... 2.62 53,300.00 Banking House ........................................................... ........... .......... 16,800.00 Furniture and Fixtures............................................ 16,406.04 Municipal Warrants ................................................. . . . . . . $3,034,089.60 L IA B IL IT IE S ...........$ 100,000.00 63,616.33 Surplus and Undivided Profits................................ ........... Deposits ........................................................................ .......... 2,870,466.92 6.35 Federal Tax Account................................................... $3,034,089.60 Staff Member IOW A STATE BANK & TRUST COMPANY IO W A C IT Y , IO W A O FF IC E R S BEN S. SUM MERW ILL, President DR. E. M. MacEWEN, Vice President M. B. GUTHRIE, Cashier W . F. SCHMIDT, Assistant Cashier M. E. TAYLOR, Auditor W . W . SUM MERW ILL, Credit Dept. Member Federal Deposit Insurance Corporation SAVINGS Members of the board of directors o f the Anamosa Citizens Savings Bank has announced the appointment of John J. Dolan of Central City as a member o f its staff effective October 10. He will assist R. R. Farquharson, executive vice president in loans and mortgages. Mr. Dolan was cashier of the Prairieburg Savings Bank until 1932. B A N K RESOURCES Loans and Discounts....................................................................................... Other Bonds and Stock................................................................................ Overdrafts ....................................................................................................... Furniture and Fixtures................................................................................ Government Obligations. Direct and Fully Guaranteed (par value) ............................................................................................................$ 572,825.00 Municipal Bonds (par value).................................................................... 320,170.55 Cash and Due from Banks........................................................................ 1,173,120.11 $2,715,482.20 111,800.00 2.47 13,003.12 2,066,115.66 $4,906,403.45 LIABILITIES Capital ......................................................................................................................................... $ 150,000,00 Surplus ......................................................................................................................................... 150,000.00 Undivided Profits ...................................................................................................................... 105,977.85 Unearned Discount ...................................................................... Deposits .......................................................................... ................................. » ......................... 4,466,971.23 W. G. C. BAGLEY Mr. Bagley, president of the First National Bank of Mason City, is a candidate for State Treasurer at the election next week. 33,454.37 SELL YOUR BANK O F F IC E R S The “ W alters” W a y W ithout Publicity Herbert A. Metcalfe, Chairman of Board Frederick M. Morrison, President Winfield W . Scott, Vice President J. R. Astley, Cashier E. P. Kautzky, Asst. Cashier Qualified, carefully investigated bank employees furnished free $4,906,403.45 M E M B ER Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL D E P O SIT November 1938 IN SU RAN CE CORPORATION T H E C H A R L E S E. W A L T E R S CO. Omaha, Nebraska J H r o e d ù t u i t i t i jjo si GOVERNMENT, STATE AND PROVINCIAL BONDS M arket Value U. S. Treasury.............................................$ 614,810.00 Federal Farm ............................................. 71,360.00 Canada ......................................................... 10,900.00 California ..................................................... 11,600.00 Mississippi .................. 10,353.39 North Dakota ............................................. 17,679.38 Oregon Veterans ...................................... 8,720.00 South Carolina ........................................... 21,100.00 South Dakota ............................................. 20,400.00 California W ater ...................................... 49,820.71 Tennessee Refunding .............................. 10,400.00 Manitoba ..................................................... 8,200.00 Ontario ......................................................... 53,400.00 Quebec ......................................................... 38,387.50 Saskatchewan ............................................. 6,500.00 New Brunswick ........................................ 15,900.00 • , . , ThlS IS the , bond portfolio of r Emolovers P Mutual y C a s u a lty Com pany. , COUNTY AND MUNICIPAL BONDS Aberdeen, S. D ............................................ $ Adel, Iowa ................................................... Alta, Iowa ................................................... Anita, Iowa ................................................. Aurora, Nebraska .................................... Barnes City, Iowa.................................... Battle Creek, Iowa.................................... Bear Grove, 111............................................ Beatrice, Nebr.............................................. Bedford, Iowa ............................................ Birmingham, Alabama ............................ Black Hawk County, Iowa................... Boston. M ass................................................ Britt. Iowa ................................................. Brooks, Iowa ............................................... Buffalo, N. Y .............................................. Calhoun Co., Iow a.................................... Canton, 111..................................................... Carroll, Iowa ............................................ Carson, Iowa ............................................... Carthage, 111................................................. Cascade. Iowa ............................................ Centerville, Iowa ...................................... Cerro Gordo County, Iow a..................... Chattanooga, Tenn..................................... Cherokee County. Iow a............................ Cherokee, Iowa ........................................ Clarinda, Iowa .......................................... Clinton County, Iow a.............................. Corydon, Iowa .......................................... Council Bluffs, Iowa................................ Crawfordsville, Iowa .............................. Delaware School, Sac Co., Iow a........ Denison, Iowa .......................................... Des Moines, Iow a...................................... Dupage County, 111.................................... East Bend 111.............................................. Elmira, 111..................................................... Emmetsburg, Iowa .................................. Fairfield Iowa .......................................... Fenton, Iowa ............................................... Flandre^u, S. D .......................................... Fort Calhoun, Nebr.................................... Fort Collins, Colo...................................... Fort Dodge, Iowa...................................... Fort Worth. T exas.................................... Fullerton, Nebr............................................ Grand Forks. N. D ................................... Grand Mound, Iowa.................................. Greene County, Iowa .............................. Greenfield. Iowa ........................................ Grimes. Iowa ............................................ Hale. Ill......................................................... Hamilton County, 111............................... Hanover 111. .'............................................ Harlan, Iowa ............................................... Hastings. Nebr............................................ Hers'-her Twp.. Kankakee Co., 111.... Hopkinton, Iowa ...................................... 10,300.00 19,970.00 16,050.00 4,885.00 11,000.00 1,030.00 6,360.00 16,154.00 2,300.00 4,140.00 15,750.00 24,846.80 25,434.82 16,200.00 1,000.00 10,900.00 10,200.00 10,383.33 6,060.00 12.360.00 5,775.00 2,525.00 1,100.00 6,094.00 4,240.00 10,100.00 10,600.00 6,420.00 2,040.00 6,270.00 20,720.00 5,150.00 5,400.00 12,000.00 46,319.00 10.000.00 15,000.00 6,060.00 12,216.00 10,300.00 12,720.00 10.225.00 7.804.94 10,200.00 21,890.00 14 850.00 10,200.00 11,000.00 2,000.00 1,120.00 9,720.00 1,110.00 10.200.00 7,490.00 9,090.00 15,300.00 5,100.00 13 455.00 15,498.37 In 21 y&cirSt the company w a s founded, . S in c e no o th e r bond or In v e stm e n t of ‘ fte Employers Mutual has ever been ■ -i » _ - l i IP default , . , . a s t o interest , « , o r principal. recommend Employers Mutual, _ y o u assure your clients the . . , strongest protection _ money can buy. W hen Hutton Twp., Ill........................................ Indianapolis, Ind........................................ Iowa City, Iowa........................................ Iowa Falls, Iow a......................................... Jacksonville, Fla......................................... Jefferson, Iowa .......................................... Johnson County, Iow a.............................. Keokuk, Iowa ............................................. Kinross, Iowa ............................................. LaHarpe Twp., Hancock Co., Ill........ Lake City, Iow a......................................... LaPorte, Ind.................................................. Lexington, Nebr........................................... Long Beach, Calif....................................... you _ Q Automobile Insurance Workmen s Compensation v l * r T o w n Liability i » - « »I■v General Liability Elevator Insurance m G la S S 6,180.00 24,000.00 13,840.00 5,258.00 5,080.17 17,400.00 15,880.00 10,000.00 5,375.00 9,360.00 3,000.00 14,560.00 5,200.00 16,800.00 3 3 3 3 ::::::::::::::::::::: Mapleton, Iowa ........................................ Maroa, 111...................................................... Marshalltown, Iowa ................................ Mediapolis, Iowa ...................................... Memphis. Tennessee ................................. Mexia, Texas ............................................. Miami Beach, Fla....................................... Milwaukee County, W is ........................... Minneapolis, Minn...................................... Moulton, Iowa .......................................... S S t Ä “ 1 ; S S g ^ w j T o w , T . 11'.'.'.'. 11:'.'.'.'.! 1!'. Ä S Ä 8 10,600.00 13,845.00 11,830.00 5,550.00 10,500.00 8,000.00 10,100.00 24,693.00 2,040.00 2,000.00 ? . « : : : : : : : : : : : : : : : : : : .8 3 3 Ä ‘8 3 3 Phoenix, Ariz................................................. Pleasantville, I o w a ................................. Portsmouth, Iowa ..................................... Primghar. Iowa .............i ......................... Ramsey County, Minn............................... Redfield. Iowa .............................................. Red W illow Co., Nebr............................. Reinbeck, Iowa ........................................ Rio Twp.. Knox Co., Ill.......................... Rozetta, 111.................................................... Sac City, Iow a.......................................... i3.oso.oo 500.00 4,060.00 13,260.00 3,090.00 9,360.00 "cailf!! ! ! : ! ! ! ! : : ! ! : ! i ! iMooioo Ic h fiiw ig ^ o ta ’ : : : : : : : Scotts Bluff County, Nebr...................... Seattle, W ash................................................ Shelby County, Iow a................................ Shenandoah, Iowa .................................... Signourney, Iowa .................................... sioux city, io w a....................................... Sioux County, Iow a................................... slater, i o w a .................................................. Spencer, Iowa ............................................ Story County, Iow a.................................. Stuart, Iowa ............................................... Tama County, Iow a................................... Thayer, Iowa .............................................. Thornton, Iowa ........................................ University Park, T exas............................ Vigo County, Ind........................................ 4,080.00 12,780.00 11,480.00 5,100.00 20,650.00 t ’195'95 5,250.00 10,108.56 ^. iso . oo 17,678.00 10,100.00 f ’iSn'nn 5,100.00 , i ’ ro9'99 13,520.00 6,960.00 10,900.00 w apeiio county, i o w a .:......................... 10,208.04 w e st Aiiis, w i s .......................................... Williamsburg, Iowa ............................. Winterset, Iowa .......................................... Woolstock, Iowa ....................................... w yman, iowa .............................................. 11.660.00 m is c e l l a n e o u s 5,000.00 14,000.00 bonds Canada Southern ............................. . . . . . $ Central Service C o ...^ ............................. Kohrs Packing Co...................................... Lucas County, Iow a.................................. Miscellaneous Warrants ........................ 4,800.00 15,150.00 10.000.00 3,392.66 Total Market Value as of September 30 , 1938 — $2,368,338.37 EMPLOYERS MUTUAL J U loM foü C A S U A L T Y C O M P A N Y J. A. G U N N , P R E S I D E N T E m p loyers M utual B uilding, 210 Seventh Street, D es M oines Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 68 Heads Mortgage Bankers TRADE IN THAT OLD M AC HINE Use One of Our Time Saving Rebuilt Burroughs Bookkeep ing Machines A. L. Kreidler, Des Moines, was elected president of the Iowa State Mortgage Bankers Association at the annual con vention in Waterloo. He succeeds J. W. Leavitt, Cedar Palls. H. E. Henderson, Cedar Rapids, was elected vice president, and Fred H. Quiner, Des Moines, secretary-treasurer. Visits With Gable We Guarantee Service Satisfied Bankers as Refer ences W ill Be Given Upon Request The N. C. Milliron Co. 3521 Sixth Avenue DES MOINES, IOWA Phone 4-8713 One of the passengers who rode with Clark Gable, famed movie star, on his trip north from Des Moines to the Minne sota woods on his recent hunting expedi tion, was Milton G. Addicks, Newton assistant bank cashier. Mr. Addicks was enroute to Minneap olis aboard the Rocket when he discov ered the well known star sitting some seats behind him. The Newton man thereupon proceeded with dispatch to introduce himself and provide a card for Gable’s autograph, which Gable readily gave. G olf Tourney , For Sturdier Crops Bigger Yields Greater Profits PLANT PIONEER THE QUALITY HYBRID SEED CORN Pioneer Hi-Bred Corn Co. DES MOINES, IOWA ASSOCIATE PIONEER PRODUCERS Garst & Thomas Coon Rapids, Iowa Pioneer Hi-Bred Corn Co. of Illinois Princeton, Illinois Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 Employees of the Central State Bank, Muscatine, held a golf tournament at the Geneva Golf and Country club re cently. A dinner was served at 6 :30 after which the group entertained them selves with singing and dancing. Glen Downing won the first prize, Leland Horst placed second with a three handicap, Carl Schomberg won a prize for the lowest number of putts and Alfred Hecht was awarded the consolation prize. Miss Florence Koester had the best ladies score. Wedding Miss Daisy V. Williams, former secre tary of the Iowa Farm Bureau Federa tion, was married to Charles F. Long, cashier of the Union-Whitten State Sav ings Bank of Union, Iowa, at the Little Brown Church near Nashua, it was an nounced recently. Miss Williams was the first woman in the United States to be appointed to a secretaryship of a state Farm Bureau and she served in that capacity for sev eral years. During the last presidential campaign she was national director of the farm women’s division of the Republican party. She is the daughter of Mr. and Mrs. John L. Williams of Union. Re-elected The former directors of the Clutier State Bank were re-elected at the annual meeting of the stockholders. They were J. P. Novak, John Holtz, Lorenz Loren zen, John W. Roubinek and Paul Kouba. J. P. Novak was re-elected president, John Holtz, vice president; A. H. Fischer, cashier, and H. H. Ziskovsky, assistant cashier. Paul Kouba was re-elected man ager of the Yining branch. A . I. B. Courses Plans for the winter educational courses sponsored by the Des Moines chapter of the American Institute of Banking have been announced by Leo Regan, vice president and educational di rector of the chapter. Regan said all classes will be at Hotel Sa very. James Stewart, attorney, will head the course in commercial law. It will meet from 7:30 to 9 p. m. each Wednesday. Prof. Herbert Bohlman of Drake Univer sity will have the course in bank admin istration from 4:30 to 6 p. m. each Fri day. A series of lectures by Des Moines bank officers will be included in this course. The public speaking class will be con ducted by Prof. James J. Fiderlick of Drake University and will meet from 5 to 6:30 p. m. each Wednesday. 69 Candidate Bankers in Group 1 and other banker friends throughout the state are giving their active support to the candidacy of Mr. C. R. Gossett, president of the Secu rity National Bank, Sioux City, for the presidency of the Iowa Bankers Associa tion at the June, 1939, convention of that association. This candidacy has been suggested by Mr. Gossett’s friends for the last two years or more but he has each year stepped aside in the interest of other friends. At the 1938 convention his friends again urged him to he a candidate and Mr. Gossett has now accepted. He is the only candidate for the presidency up to this date so far as it is known. Mr. Gossett has been active both in the affairs of the Iowa Bankers Association and the American Bankers Association for years. He has served on various committees of the Iowa Bankers Association and also was secretary and then later chairman of his group. He was a former state bank examiner and is well known throughout the state. It is the first time that Group 1 has presented a candidate for the presi- W e Specialize in SURETY BONDS Iowa Bank Agencies Solicited mUTUAL SURETY C. R. G O SSE T T COmPARV dency of the Iowa Bankers Association since 1930 when Mr. C. C. Jacobsen, then of Sioux City, was elected to the presi dency of the Iowa Bankers Association. OF IOWA Des Moines, Iowa President A. F. Agena, cashier of the Farmers Savings Bank at Garwin, was reelected president of the Tama County Bankers Association at the meeting in the Dysart National Bank. J. S. Bausch, assistant cashier of the Gladbrook State Bank, was elected vice president, and C. J. Ingersoll, assistant cashier of the Tama State Bank, was reelected secretary-treasurer. State fyina*tce She'd,'tesun Noted. Rates and Maturities ♦ Upon Request Remodeled New fixtures purchased by the Iowa State Savings Bank, Creston, were in stalled recently as remodeling work in the building is nearing completion. The fix tures, which are of modern style, were made to order for the bank by a Charles City firm and match the woodwork already in the room. The ceiling and walls of the bank have been redecorated and the back room has been remodeled. During the work the bank is remaining open for business. CAPITAL AND SURPLUS OVER $ 1 ,5 0 0 ,0 0 0 .0 0 Established 1897 State Finance Manufacturers Trust The statement of condition of Manu facturers Trust Company as of Septem ber 30, 1938 shows deposits of $645,093,134 and resources of $763,549,641. This Company Southern Surety Bldg. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines November 1938 70 compares with deposits of $619,824,134 and resources of $737,811,929 shown on June 30. Cash and due from banks is listed at $206,617,807, as against $201,689,318 on June 30. U. S. Government securities stands at $183,374,045; three months ago it was $183,533,695. Loans and bills pur chased is $232,369,224 which compares with $221,848,141 at the end of the pre vious quarter. Preferred stock is $9,306,520, which represents a decrease of $50,000 from the previous quarter, due to the purchase of shares in the open market and consequent retirement. Common stock is $32,998,440, unchanged from the last quarter. Net operating earnings for the quarter ending September 30, 1938 were $2,353,287 as against $2,293,262 for the same period last year. Dividends of $232,663 were paid on preferred stock and $824,959 on common stock, leaving a balance of $1,295,665. Of this amount, $481,669 was used to amortize bond premiums and for taxes, etc., leaving $813,996, which amount was transferred to reserve ac count. New Magazine OFFICE Arthur G. Kenworthy D ESKS SA FES FILING CABINETS BUSINESS SYSTEMS SUCCESSO RS TO M c N A M A R A O FFICE S U P P L Y CO. Charles R. Storey ^STOREY- KEN WORTH Y is \ OFFICE SUPPLIES - B U S IN E S S FURNITURE 319 Locust St. A new business magazine entitled “ Fu ture” made its appearance recently, spon sored by the United States Junior Cham ber of Commerce. The magazine is very attractive, and is edited primarily for young business men. An Omaha adver tising man, Fred J. Driver, Jr., who is vice president of the organization, has been closely connected with the origin of the new publication. Mr. Driver is head of the Driver Advertising Agency in Omaha. Phone 4-3181 M ERCHANTS Attends Convention G. D. Murdoch, president of Murdoch, Dearth & White, Inc., Des Moines invest ment house, attended the twenty-seventh annual convention of the Investment Bankers Association of America which was held at The Greenbrier in White Sulphur Springs, West Virginia, on Octo ber 26 to 29. MUTUAL BONDING COMPANY Incorporated 1933 Home Office V A L L E Y BANK BUILDING Des Moines, Iowa ® ® This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. We are proud of our hundred and fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. ® Alien Promoted At the regular monthly meeting of the board of directors of the Continental Illinois National Bank and Trust Com pany of Chicago, W. B. Allen, a second vice president, was elected a vice presi dent of the bank. In the statement of condition of the Northern Trust Company, Chicago, as of September 28, 1938, loans and discounts are listed at $33,191,746.06; total de posits, $326,895,993.05; cash and due from banks, $134,950,355.78; savings de posits, $72,180,039.97; and U. S. Govern ment securities, $105,490,076.12. Compared Avith the previous statement of condition of the Company, loans are up one million dollars, U. S. Government securities have decreased approximately 16 million dollars, and cash and due from banks has risen 14 million dollars. G o lf Tournament E. H. WARNER Secretary and Manager Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 The day closed with a banquet presided over by O. P. Decker, vice president, Avho distributed fifty prizes to I oav handicap golfers as Avell as to winners in other sports participated in during the day. Since 1893 The name JAEG ER has been the mark of finest quality and workmanship in Bank, Store and Office Fixtures. Among our recent outstand ing installations, we point with pride to the beautiful paneling and woodwork in the new office building of the Employers Mu tual Casualty Company at Des Moines. The J A E G E R Inc. MANUFACTURING CO. Des Moines, Iowa Bank Fixtures - Cabinet W ork Northern Trust ® Write to tournament, Columbus Day, October 12, at Twin Orchard Country Club near Bensenville, Illinois. The highlight of each year’s tourna ment is competition for the trophy awarded by Laurance Armour, president of the bank, to the man turning in the lowest gross score for eighteen holes. This yaer, C. P. Heilmann, assistant auditor, was tied as 82 Avith B. G. Kilpatrick, assistant secretary, but Avon in the after noon play-off to take his second leg on the Armour Trophy. Harry Meyer, 1937 winner, came in with an 83. One hundred sixty-five officers, direc tors and male employees of the American National Bank and Trust Company of Chicago attended the bank’s annual golf Iowa’ s Largest Business Training School Many banks, bond-houses, insurance companies and other financial insti tutions employ A. I. B. graduates. Write or telephone when you need efficient office employes. E. O. FENTON, President American Institute of Business DES MOINES 10th and Grand Tel. 4-4203 71 f f 'food PP j^oi "Through the Northwestern Banker we secure information about current events in bank ing, business and legislation, and the articles of timely inter est serve to give us food for thought. The personal news keeps us in touch with what our customers and friends are doing in your wide and interesting territory.” * *Quoted from the original letter by a Vice President of a bank whose name will be furnished upon request. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 72 Vocal selections were given by Story Turner, manager of the bank’s collection department and well known Chicago tenor. Movies taken at last year’s tour- Colonial Finance Company nament by members of the American Na tional Bank Cinema Club were also shown. Members of the committee in charge of the tournament were C. P. Heilmann, chairman, Walter Armstrong, Leonard Kunow, Harold Koenig, Everett Dovale and Robert Lindquist. L O A N S A N D L E G IS LATU RES □ C. C. BROOKS, Jr., President (Continued from page 17) 0 . L. WYNKOOP, Sec.-Treas. □ Clearing Houses 9 23 Grand Avenue Regional Clearing House Associations, now functioning throughout the state, seem to be filling an important place with bankers. Those little meetings afford op DES MOINES IO W A Moon Printing & Engraving Co. F o u n d e d 1907 b y D a n ie l E . M oon Iowa State Bank & Tr. C o . 1 2 1 0 Grand Avenue Des Moines, Iowa Quality 77 Printing HAPPY DAYS AND portunities to discuss matters that are common in the various parts of the state, and to discuss them with more freedom and frankness than is possible in larger groups. It seems to me that if regional associations are to be successful they must suffer no interference from bank ers outside of their own groups. I am convinced association officers and people from larger banks will generally best serve the interests o f the Regional As sociations and their members by attending their meetings only on special request. After all, the little regionals were set up for the special use of and benefit of their own members where any and all problems affecting their own banks could be discussed very frankly. I want to express my appreciation for the opportunity given me to act as presi dent during the past year. The experi ence has been pleasant and very instruc tive. I have tried to be of some little use to the Association, although I will frankly admit that I have at all times considered the business o f my own bank of first importance. Engraving HEALTH 77 Total resources of the Iowa State Bank and Trust Company of Iowa City are now in excess of $3,000,000 according to the call of September 28, 1938. The exact figures are $3,034,089.60. Deposits are now $2,870,466.92 with $63,616.33 surplus and undivided profits. The Iowa State Bank and Trust Company is capitalized at $100,000. President Ben S. Summerwill, in a re cent attractive two color full page ad vertisement in the Iowa City newspaper, calls attention to the splendid growth of this bank since its organization four years ago. The bank’s first statement of con dition as of October 17,1934, showed total resources of $493,582.74. Deposits at that time were $368,555.70. The official staff of the Iowa State Bank and Trust Company includes President Ben S. Summerwill, Vice President Dr. E. M. MacEwen, Cashier M. B. Guthrie, Assistant Cashier W. P. Schmidt, Auditor M. E. Taylor, credit department—W. W. Summerwill. Credit Life Insurance For and in the Amount of Your Loans Straight Loans Chattel Loans FHA Mortgage Built to Fit Your Need Very Low Rates WEBSTER LIFE INSURANCE COMPANY DES MOINES. IOWA Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 193S 73 I I n d e x to A dvertisers A A. C. A lly n & C om pan y..................................... 32 A llen W a le s C om pan y....................................... 75 Am erican Institute of B u sin e ss................... 70 Am erican N ational Bank & Trust C o .... 60 B Bankers Trust C om pan y............................ 58-59 Brew er Company, V. W .....................................33 Burroughs A dding Machine C om pan y. . . 23 C Chase National B a n k ........................................ 4 Central N ational Bank & T rust Company 6 City National Bank & Trust Co., C h icago. 44 Colonial Finance C om pan y.............................. 72 Columbian N ational L ife Ins. Com pany. .68 Commercial Credit C o m p a n y ........................34 Commercial Investm ent Trust, Inc...........32 C on tin en tal-Illin ois National B a n k ......... 52 Continental National Bank, L in co ln ......... 41 D Davenport and Company, F. E .............43, 64 Drovers National B a n k .............................. . . . 6 4 E E lm s H otel ..............................................................72 E m ployers M utual C asualty Com pany. . .67 E n yart, Inc., J. C.................................................... 69 F Federal Discount C orporation..................... 33 F id elity & Deposit C om pan y............... 65 F inancial Credit S y ste m ...................................73 F irst N ational Bank, L in co ln ........................43 F irst National Bank, O m ah a............... 40 F irst N ational Bank, Sioux C ity ................. 62 G General M otors Acceptance C orporation. 30 Gesel, Harold J. E ................................................73 H Home Insurance C om pan y............................. 3 H otel Radisson .....................................................73 Iow a-D es M oines National B a n k ................. 76 Iow a Lithographing C o m p a n y ..................... 48 Iow a State Bank & T rust Co., Iow a C i t y .66 J Jackley and C om pany....................................... 27 Jaeger M anufacturing C om pany................. 70 li La Monte and Son, G e orge ............................. 5 Lam son Bros. & C om pany.................................37 L essing A dvertisin g Company, Inc............. 69 Livestock National Bank, C h icago............ 36 Livestock National Bank, O m ah a.................42 Livestock National Bank, Sioux C i t y .. . .46 M M anufacturers T rust C om pany..................... 31 M erchants M utual Bonding Company . . . 7 0 Merchants National B a n k ................................ 2 M essenger P rinting Com pany.................... 73 Midland National Bank & Trust Co............ 53 M illiron Company, N. C.....................................68 Moon P rinting and E n gravin g Com pany. 72 M utual Surety Company of I o w a ...............69 N National City B a n k ............................................25 National Surety C orporation..........................35 Northern Trust C om pany.................................54 Northw estern B a n k e r ....................................... 71 Northwestern N a t’l Bank & T rust C o . . . . 51 N orthw estern N ational L ife Ins. Co..........48 PUBLISHER’S STATEMENT Statement of the Ownership, Management, Cir culation, etc., required by the Act of Congress of March 3, 1933, of the NORTHWESTERN BANKER, published monthly at Des Moines, Iowa, for October 1, 1938. 1. Name of Publisher: Clifford De Puy, Des Moines, Iowa. Associate Publisher, R. W . Moor head, Des Moines, Iowa. Managing Editor, Henry H. Haynes, 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. R. W. MOORHEAD, Associate Publisher. Sworn to and subscribed before me this 7th day of October, 1938. D. C. McMARTIN, Notary Public. (Seal) (My commission expires July 4, 1939) o Omaha National B a n k ....................................... 19 F Philadelphia National B a n k ............................ 63 Pioneer H i-B red Corn C om pany................... 68 Policyholders M utual C asualty Co.............. 69 S State Finance ....................................................... 69 Sterne & Company, M ax G..............................68 S torey-K en w orth y Company ........................70 Scarborough & C o m p a n y .................................29 U Union Bank & Trust Co., O ttu m w a .............61 United States Check Book Co.........39, 47, 57 United States National B a n k ..........................38 V V alley Savings B a n k ..........................................66 W W a n t Ad .................................................................. 73 W a lte rs Company, Chas. E ..............................66 W eb ster L ife Insurance Com pany............ 72 W o rld Finance Corporation..........................68 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November 1938 74 V Scintillations G odly G rocer A “ sugar daddy” is a form of crystal lized sap. In a book published many years ago by Barnum himself he tells a story which he probably felt was typical of business as he found it in his youth. It concerns a grocer who was a deacon and who was heard to call downstairs before breakfast to his clerk: “John, have you watered the rum?” “ Yes, sir.” “ And sanded the sugar?” “ Yes, sir.” “ And chicoried the coffee?” “ Yes, sir.” “ Then come up to prayers.” * » We suspect that a tuba quartette would be known as a tubafour. * * Confucius said: “ ’Tis better to have halitosis than no breath at all.” * * The amoeba hugs himself in the middle and then he’s two other people. * * The waiter laughed when I spoke to him in French. No wonder, he was my old prof. * * And as one girl put it, “ Everything I want to do is either illegal, immoral, or fattening.” * * * A watch is something which if you look at long enough it will be too late to do what you were going to do before you looked at it. “ I tell you we’re living in a fast age.” “Right you are. It actually makes a taxi hustle to keep up with a hearse these days.” First Negro: “What for dat doctah cornin’ outa youah house?” Second Negro: “ Ah dunno, but Ah think Ah’s got an inkling.” The electrician was puzzled. “ Hey,” he called to his assistant, “ put your hand on one of those wires.” The assistant did. “ Feel anything?” “No.” “ Good,” said the electrician, “ then don’t touch the other one or you’ll drop dead.” Short A couple of boys out in Kansas were discussing the recent drought. One fel low had some wheat which he had man aged to harvest. “ The drought sure has made the wheat short this year!” [ “ Short? Say, I had to lather mine to mow it !” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tough A certain grocer was famed for selling tough meat. A man came into the store one day and asked for some beef. “ Do you want it for boiling or roast ing?” asked the grocer. “Neither,” replied the man, “ I want it for hinges on the stable door.” G otta Live, Don't Y a ? Black A s— November 1938 Mostly Scotch Jones: “ How is your son getting along in college?” Smith: “ He must be doing pretty well in languages. I just paid for three courses—$10 for Latin, $10 for Greek, and $100 for Scotch.” Pinched Dead Sure * College is a place Avhere you would not be so smart as but would have more money if you had not gone to. Mrs. Henpecked (sarcastically) : “I suppose you’ve been to see a sick friend — holding his hand all evening!” Husband (absently) : “ I f I ’d been hold ing his hand, I ’d have made money.” “ Do you mean to tell me,” asked the judge, “ that you murdered that poor old man for a paltry three dollars?” “ Well, judge, you know how it is. Three bucks here, three bucks there, an’ it soon counts up.” One W ho Didn't A farmer took his wife to a concert, and after listening with apparent joy the pair suddenly became interested in one of the choruses: “ All we, like sheep, have gone astray.” First a sharp soprano voice exclaimed: “ All we, like sheep” ; next a deep voice uttered in a most earnest tone: “ All we, like sheep.” Then all the singers at once asserted: “ All we, like sheep.” “ Well, I don’t !” exclaimed the farmer to his wife. “I like beef and bacon.” Our idea of an optimist is o f the man who took the marriage vows at the ripe old age of 87 and started house hunting for a nice place close to a school. The teacher sent one of her scholars to buy a pound of plums from a grocer, and as she handed the little girl a dime, said: “ Be sure, Mary, before buying the plums, to pinch one or two, just to see that they are ripe.” In a little while the girl returned with flushed face and a triumphant look in her eyes. Handing the teacher the bag of plums, she placed the dime on the desk, and exclaimed: “ I pinched one or two, as you told me, and when the man wasn’t looking I pinched a bagful.” Cheer Leader W anted “ I expect you’ll miss your boy when he returns to college?” “ I will,” replied Farmer Cornstalk, “ I don’t know what I ’ll do without him. He’s got the live stock so they won’t move unless he gives ’em the college yell, and I can’t remember it.” Education Eastern V isitor: “ Has the advent of the radio helped ranch life ?” Pinto Pete: “ I’ll say it has. Why, we learn a new cowboy song every night, and, say, we’ve found out that the dialect us fellers have used fer years is all wrong.” Versatile “ What the deuce are you doing down there in the cellar?” asked the puzzled rooster. “ Well, if it’s any of your business,” replied the hen, “I ’m laying in a supply of coal.” r W E SELL ALLEN W A LE S-TH E WORLD'S FINEST ADDING M ACHINE D. Filizola 114 E. Wall Street Fort Scott—Telephone 164 C. A. Bishop 410 Felix Street St. Joseph—Telephone 6-0562 Allen Wales Adding Machine Agency 252 Glover Building Kansas City—Victor 3228 Guy W. Edmunds 211 N. 7th Street St. Louis—Chestnut 0220 Lee B. Hausam 408-410 N. Main Street Hutchinson—Telephone 127 F. H. Fogg 318 Joplin Street Joplin—Telephone 2150 E. E. Moore 1829 Main Street Parsons—Telephone 197 Wilbur E. Walker 145 N. Broadway Wichita-Dial 2-3486 C. W. Anderson 208 South 7th Street Brainerd—Telephone 300 R. D. Dennis 308 South Fifth St. Leavenworth—Telephone 176 A. L. Hamilton 111 Third St. Thief River Falls—Telephone 198 Allen Wales Adding Machine Sales Co. 127 South Third Street Minneapolis—Bridgeport 7074 A. F. Misch 212 & 214 West 9th Street Coffeyville—Telephone 54 E. R. Barr 24 West 6th Street Emporia—Telephone 344 J. G. Downs 203 E. Capitol Ave. Jefferson City—Phone 2254 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M. J. Daboll 828 St. Germain St. St. Cloud—Telephone 630 R. E. Murphy 321 West Third St. Grand Island—Telephone 140 E. E. Wheeler 103 N. Market Street Ottumwa—Telephone 271 L. M. Goeller Norfolk—Telephone 1515 W. E. Wilcox 501-2 Lafayette Bldg. Waterloo—Telephone 3924 J. F. Karbush 18th & Douglas Omaha—Atlantic 2413 Otis A. Kissack Scottsbluff—Telephone 968 E. L. McDonald 301 Shops Building Des Moines—Telephone 3-7762 T. I. McLane 213 Fifth Avenue South Clinton—Telephone 386 A. J. Rader 406 Sixth Street Sioux City—Telephone 5-5764 A. L. Riley New Hampton—Telephone 110 Don R. Sheldon 683 West 11th Street Dubuque—Telephone 4610 E. E. Fritzinger 521 Tama Bldg. Burlington—Telephone 428 L. G. Shannon 1005 Central Ave. Fort Dodge—Phone Walnut 3446 V. D. Merveaux 211 Vi Third St.. S. E. Cedar Rapids—Telephone 4546 B. J. Redden 20 Vi E. Main Street Marshalltown—Telephone 3203 Allen Wales Adding Machine Agency 209 West Jackson Blvd. Chicago—Phone Wabash 4679-80 INVESTMENT ¡io*. Iowa Banks a*td Bankers Iowa’s Largest Bank maintains an active Bond Department . . . manned by experienced, well-trained personnel . . . to furnish complete service to Iowa Banks and Bankers in the purchase and sale of United States Government Bonds . . . Iowa Primary Road Bonds . . . general obligation Iowa Municipal Bonds . . . and in quoting, and buying, or selling, on order, all types of securities. Iow a Bankers are invited to telephone or telegraph orders at our expense. iowa- des Moines national bank & trust C ompany Member of The Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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